Agenda packet — Visalia City Council, July 20, 2026 (part 3 of 14)

Submit with Proposal
EXHIBIT “B-2”

CERTIFICATE OF NONSEGREGATED FACILITIES
(BIDDERS/SUBCONTRACTORS)

1. “Segregated facilities,” as used in this provision, means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees, that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, or national origin, because of habit, local custom, or otherwise.

2. By the submission of a bid, the BIDDER certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained.

The BIDDER agrees that a breach of this certification is a violation of the Equal Opportunity clause in the contract.

3. By submission of the bid, the BIDDER further agrees that (except where it has obtained identical certifications from proposed SUBCONTRACTORs for specific time periods) it will:
(a) Obtain identical certifications from proposed SUBCONTRACTORs before the award of subcontracts under which the SUB-BIDDER will be subject to the Equal Opportunity clause; (b) Retain such certifications in its files; and
(c) Forward this certification and the following notice to the proposed SUBCONTRACTORs:

NOTICE OF PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT

FOR CERTIFICATION OF NONSEGREGATED FACILITIES
A certificate of Nonsegregated Facilities must be submitted before the award of a subcontract under which the SUBCONTRACTOR will be subject to the Equal Opportunity clause. The certification may be submitted either for each SUBCONTRACTOR for all subcontracts during a period (i.e., quarterly, semi-annually, or annually).

4. By commencing performance of the Contract work, the selected BIDDER certifies to the Nonsegregated Facilities provisions above.

Company:____________________________________________________________________________ Business
Address:____________________________________________________________________________ Signature:_______________________________________________ Date:________________________________
Name of Signing Official (Print or Type):________________________________ Title of Signing Official:__________________________________________Company Seal:
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Submit with Proposal
EXHIBIT “B-3”

NON-COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and Public Contract Code Section 7106) In accordance with Title 23 United States Code section 112 and Public Contract Code 7106 the bidder declares that bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. __________________________________________ ________________________ Signature Date
Note: The above Non-collusion Affidavit is part of the Bid/Proposal.

Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution. 436
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Submit with Proposal
EXHIBIT “B-4”
WORKERS’ COMPENSATION INSURANCE CERTIFICATE
(CALIF. LABOR CODE § 3700)

STATE OF CALIFORNIA )
) ss

CITY OF VISALIA )
I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work under this contract.

Company: ______________________________________________ Business Address: ______________________________________________ Signature: ______________________________________________ Name of Signing Official: ______________________________________________ Title of Signing Official: ______________________________________________ Date: ______________________________________________
Company Seal:
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Submit with Proposal
EXHIBIT “B-5”

CERTIFICATION OF ANTI-KICKBACK COMPLIANCE CERTIFICATE
(48 Stat. 948; 62 Stat. 740; 63 Stat. 108; Title 18 U.S.C. § 8741; and 40 U.S.C. (c)) By submission of a Bid, the BIDDER certifies that neither it nor any of its employees has performed or participated in any prohibited actions, as defined in that provision, relating to the award of the Contract. By commencing performance of the Contract work, the selected BIDDER certifies to Anti-Kickback Compliance.

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Submit with Proposal
EXHIBIT “B-6”

AMERICANS WITH DISABILITIES ACT COMPLIANCE CERTIFICATE
By submission of a bid, the BIDDER certifies it will comply with the Americans with Disabilities Act, 42 U.S.C., 12101 et. seq., and will maintain compliance throughout the life of this Contract. By commencing performance of the Contract work, the selected BIDDER certifies to the Americans with Disabilities Act compliance.

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Submit with Proposal
EXHIBIT “B-7”

OWNERSHIP DISCLOSURE AND CALIFORNIA LEVINE ACT STATEMENT The following disclosure and statement apply to the Bidder/Proposer/Contractor/Consultant/ Vendor/Supplier or Company:

1. submitting a bid or proposal in response to a solicitation by City of Visalia; or

2. as Awardee of a contract/purchase order which is subject to approval by the Visalia City Council.

OWNERSHIP DISCLOSURE
____________________________________________________________________________ Name of Bidder/Proposer/Contractor/Consultant/Vendor/Supplier or Company _________________________________________________________________________________________________________ Address

List the names of all principals, partners, and/or trustees. For corporations, provide names of officers, directors and all stockholders owning more than 10% equity interest in corporation:
_________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________

CALIFORNIA LEVINE ACT STATEMENT
California Government Code Section 84308, also know as the “Levine Act,” can prohibit members of the Visalia City Council from participating in any action related to a contract if he or she receives any political contributions totaling more than $500 within the previous twelve (12) months, and for twelve (12) months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution(s) by a party to be awarded a specific contract.

The following website contains a list of current Visalia City Council Members, https://www.visalia.city/government/city_council/default.asp. You are responsible for reviewing the names of Visalia City Council Members prior to making the following disclosure:

1. Have you or your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to a Visalia City Council Member in the twelve (12) months preceding the date of the submission of your proposals or the anticipated date of any City Council action related to this contract? YES:_____ NO:_____. If yes, please identify the City Council Member(s) and date(s) of contribution in the space below:

Council Member(s) Name Date of Contribution(s)
Answering YES, does not preclude the City of Visalia from awarding a contract to your firm or from taking any subsequent action related to the contract. It does, however, preclude the identified Visalia City Council Member(s) from participating in any actions related to this contract.

NOTICE: The disclosure duty under state law continues for twelve (12) months after the award. If the above information regarding contributions changes during this time after the award, then the awardee is required to update this disclosure form.
____________________________________________________________________________ Print or Type Name of Bidder/Proposer/Contractor/Consultant/Supplier/Vendor/Company __________________________________________ _____________________________ Signature of Company Authorized Individual Print or Type Name of Authorized Individual 440
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Submit with Proposal
EXHIBIT “B-8”

STATE OF CALIFORNIA

DRUG-FREE WORKPLACE CERTIFICATION
STD.21 (REV.12-93)
I, the official named below, hereby swear that I am duly authorized legally to bind the contractor or grant recipient to the certification described below. I am fully aware that this certification, executed on the date below, is made under penalty of perjury under the laws of the State of California.

CONTRACTOR/BIDDER FIRM NAME FEDERAL ID NUMBER
BY(Authorized Signature) DATE EXECUTED
PRINTED NAME AND TITLE OF PERSON SIGNING TELEPHONE NUMBER (Include Area Code) ( )
TITLE
CONTRACTOR/BIDDER FIRM’S MAILING ADDRESS
The contractor or grant recipient named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above-named contractor or grant recipient will:

1. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a).

2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), to inform employees about all of the following:
(a) The dangers of drug abuse in the workplace,
(b) The person’s or organization’s policy of maintaining a drug-free workplace, (c) Any available counseling, rehabilitation, and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations.

3. Provide as required by Government Code Section 8355©, that every employee who works on the proposed contract or grant:
(a) Will receive a copy of the company’s drug-free workplace policy statement, and (b) Will agree to abide by the terms of the company’s statement as a condition of employment on the contract or grant.

4. At the election of the contractor or grantee, from and after the “Date Executed” and until ____________ (NOT TO EXCEED 36 MONTHS), the state will regard this certificate as valid for all contracts or grants entered into between the contractor or grantee and this state agency without requiring the contractor or grantee to provide a new and individual certificate for each contract or grant. If the contractor or grantee elects to fill in the blank date, then the terms and conditions of this certificate shall have the same force, meaning, effect, and enforceability as if a certificate were separately, specifically, and individually provided for each contract or grant between the contractor or grantee and this state agency. 441
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Submit with Bid
EXHIBIT “B-9”

IRAN CONTRACTING ACT CERTIFICATION
(PUBLIC CONTRACT CODE SECTION 2200 ET SEQ.)
As required by California Public Contract Code Section 2204, the Contractor certifies, subject to penalty for perjury, that the option checked below relating to the Contractor’s status in regard to the Iran Contracting Act of 2010 (Public Contract Code Section 2200 et seq.) is true and correct:
⃝ The Contractor is not:
(1) Identified on the current list of persons and entities engaged in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203; or
(2) A financial institution that extends, for 45 days or more, credit in the amount of $20,000,000 or more to any other person or entity identified on the current list of persons and entities engaging in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203, if that person or entity uses or will use the credit to provide goods or services in the energy sector in Iran. ⃝ The City has exempted the Consultants from the requirements of the Iran Contracting Act of 2010 after making a public finding that, absent the exemption, the City will be unable to obtain the goods and/or services to be provided pursuant to the Contract. ⃝ The amount of the Contract payable to the Contractor for the Project does not exceed $1,000,00 over the life of the contract (up to 5 years).

Signature:_____________________________Printed Name:_________________________ Title:__________________________________AgencyName:_________________________ Date:____________________
Note: In accordance with Public Contract Code Section 2205, false certification of this form shall be reported to the California Attorney General and may result in civil penalties equal to the greater of $250,000 or twice the Contract amount, termination of the Contract, and/or eligibility to bid on contracts for three years. 442
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EXHIBIT “C”
S A M P L E (does not need to be submitted with Bid/Proposal)

ANNUAL CONTRACT FOR LANDSCAPING & IRRIGATION REPAIR SERVICES (City of Visalia Bid No. 25-26-29)
This Agreement entered into and effective this ________ day of ________________, 2026 [“Effective Date”], by and between the City of Visalia, hereinafter referred to as the “CITY”, and ____________________________ hereinafter referred to as the “CONTRACTOR”, “BIDDER”, or “SUBRECIPIENT”.

R E C I T A L S
WHEREAS, CONTRACTOR is an ____________________ (insert individual or entity type) with a primary business address of ____________________ and SSN or EIN: ____________________; and WHEREAS, CITY is a municipal corporation and a Charter Law City; and WHEREAS, City of Visalia reviewed and evaluated responses to RFB No. 25-26-39, Annual Contract for Landscaping &Irrigation Repair Services, hereinafter referred to as the “Project”, and determined to award the contract to CONTRACTOR for the service; and
WHEREAS, CONTRACTOR represents it is licensed, qualified, and willing to complete the Project pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and CONTRACTOR agree as follows:

1. TERM:

The term of this Agreement shall commence on the Effective Date and expire upon completion of all obligations of the parties, unless earlier terminated by the parties. The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR, be extended annually thereafter for four (4) consecutive one-year periods. Additionally, this Agreement may be terminated for convenience. In the event of termination or expiration of this Agreement, CONTRACTOR shall transfer to CITY any funds and/or accounts receivable on hand attributable to the use of CITY funds.

2. ATTACHMENTS INCORPORATED:

The following are attachments for this Agreement. Said attachments are incorporated into this Agreement as if included in full in the body:

ATTACHMENT NO. DESCRIPTION OF ATTACHMENT
Attachment 1 General Contract Provisions
Attachment 2 Insurance Requirements
Attachment 3 City of Visalia Bid 25-26-29, Annual Contract for Landscaping & Irrigation Repair Services
Attachment 4 CONTRACTOR’s bid in response to Bid No. 25-26-29

3. CONTRACTOR SCOPE OF SERVICES and COMMITMENTS:

CONTRACTOR shall provide the following services for the stated compensation on or before the stated completion dates (“Scope of Services”):

All work described in Scope of Services in Bid No. 25-26-29

4. CITY COMMITMENTS:

CITY shall perform the following tasks on or before the stated completion dates:

TASK COMPLETION DATE
Pay Contractor as work is completed and invoiced As requested by Contractor 443
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5. COMPENSATION:

CITY shall pay CONTRACTOR compensation for services as indicated in Paragraph 4 above; however, CITY shall pay not more than the amount listed below as Total Compensation under this Agreement, unless otherwise agreed in writing. Such sum shall be expended and paid by CITY on a reimbursement basis for services actually performed based on invoices, receipts, time sheets, and similar documents presented by CONTRACTOR to CITY.

6. CONTRACT PRICE ADJUSTMENTS:

All prices shall be firm and fixed for twelve (12) months from the annual anniversary date of the agreement.

Prices may be adjusted annually at the time of contract renewal and upon mutual agreement of the parties to the contract to allow for price increases or decreases for labor and benefit rates, supplies, and materials.

It will be the responsibility of the contractor to request a price adjustment and to provide all documentation necessary. The request for price adjustment must be submitted to the Project Manager in writing a minimum of thirty (30) days but no sooner than ninety (90) days prior to the annual anniversary date of the agreement.

Requests filed after this time will not be considered.

The unit prices for the ensuing contracts shall be based on the movement of the unadjusted figures of the U.S.

Bureau of Labor Statistics, Consumer Price Index (CPI) for all Urban Consumers (CPI-U, U.S. City Average, All Items). The contract unit prices may be changed in an amount equal to the percentage of movement for the most recent twelve-month period closest to the anniversary date of the contract. In no instance shall the price increase exceed 5%. The contract unit price changes as a result of this formula shall be binding on the contractor for the subsequent contract year. The adjustment of the unit bid price shall not be retroactive and shall apply only to changes incurred after approval.

IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written.

CONTRACTOR
Dated: __________________ By:_____________________________________________________ Authorized Officer: I certify under penalty of perjury under the laws of the State of California that I am fully authorized to execute this Agreement for CONTRACTOR in the capacity I have stated, and that such execution is sufficient to bind the CONTRACTOR.

CITY OF VISALIA
Dated: ___________________ By:______________________________________________________ City Manager
Dated: ___________________ By:______________________________________________________ City Attorney
Dated: ___________________ By:______________________________________________________ City of Visalia Risk Manager
Dated: ___________________ By:______________________________________________________ City of Visalia Project Manager
Total Compensation: Not to exceed $_____ annually at Contractor’s stated bid prices Source of Funds: Local Revenues
Payment Schedule: Within 30 days from the date of the invoice for completed work 444
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Exhibit “C”
Attachment 1

GENERAL CONTRACT PROVISIONS
A. Successors and Assigns: This Agreement shall be binding upon and shall inure to the benefit of any successors to or assigns of the parties.

B. Prohibition of Assignment: Neither party shall assign, delegate, or transfer their rights and duties in this Agreement without the written consent of the other party.

C. Notices: Notice shall be sufficient hereunder if personally served upon the City Clerk of the CITY or an officer or principal of the CONTRACTOR, or if sent via the United States Postal Service, postage prepaid, addressed as follows:

CITY OF VISALIA CONTRACTOR: ________________________
707 W. Acequia Ave. _______________________
Visalia, CA 93291 _______________________
Attention: City Clerk Attn: ________________________
D. Independent Contractor: It is understood and agreed by the parties herein that CONTRACTOR, in the performance of this Agreement, shall act as an independent contractor, and therefore shall obtain no rights to any fringe benefits that accrue to regular full-time CITY employees.

E. Jurisdiction/Venue/Waiver Of Removal: This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be in California. Any action brought to interpret or enforce this Agreement, or any of the terms or conditions hereof, shall be brought in Tulare County, California. The CONTRACTOR hereby expressly waives any right to remove any action to a county other than Tulare County as permitted pursuant to Section 394 of the California Code of Civil Procedure.

F. Integration/Modification: This Agreement and each of the documents and exhibits or attachments referenced herein, which are incorporated by reference, represent the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the parties, unless otherwise explicitly authorized.

G. Conflict With Law: If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said law, but the remainder of the Agreement shall be in full force and effect.

H. Indemnification: The CONTRACTOR waives any and all claims and recourse against the CITY, including the right of contribution of loss or damage to person or property arising from, growing out of, or in any way connected with or incidental to the CONTRACTOR’s performance of this Agreement, except claims arising from the concurrent or sole negligence of the CITY or its officers, agents or employees.

The CONTRACTOR will indemnify, hold harmless, and defend (at CITY’s option) the CITY against any and all claims, demands, damages, costs, expenses, or liability arising out of the CONTRACTOR’s performance of this Agreement except for liability arising out of the concurrent or sole negligence of the CITY or its officers, agents, or employees.

I. Attorney’s Fees: In the event either party commences any action, arbitration or legal proceedings for the enforcement of this Agreement, the prevailing party, as determined by the court or arbitrator, shall be entitled to recovery of its attorney’s fees and court costs incurred in the action brought thereon.

J. Headings: Section headings are provided for organizational purposes only and do not in any manner affect the scope or intent of the provisions thereunder.

K. Firearms Prohibited: Guns may not be carried by contractors/vendors/consultants while working on City of Visalia premises without the expressed written approval of a City of Visalia Department Head, or an exemption in the contract. If a contractor/vendor/consultant is caught carrying a gun, without City permission, their contract will be terminated.
445
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L. Executive Order N-6-22 – Russia Sanctions On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering into any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State. 446
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Exhibit “C”
Attachment 2

INSURANCE REQUIREMENTS

1. CONTRACTOR Insurance. CONTRACTOR, at its sole cost and expense, for the full term of this Agreement (and any extensions thereof), shall obtain and maintain at a minimum compliance with all of the following insurance coverage(s) and requirements. Such insurance coverage shall be primary coverage as respects CITY, and any insurance or self-insurance maintained by CITY shall be in excess of CONTRACTOR’s insurance coverage and shall not contribute to it.

2. Subcontractor(s’) Insurance. If CONTRACTOR utilizes one or more subcontractors in the performance of this Agreement, CONTRACTOR shall obtain and maintain independent insurance as to each subcontractor or otherwise provide evidence of insurance coverage for each subcontractor equivalent to that required of CONTRACTOR.

3. Types of Insurance and Minimum Limits. The following types of insurance and minimum limits are required, providing at least the following minimum coverage and limits of liability:
a. Worker’s Compensation written in accordance with the laws of the State of California, providing coverage for any and all employees of CONTRACTOR in the minimum statutorily required coverage amounts;
b. Comprehensive Automobile Liability Coverage for each of CONTRACTOR’s vehicles used in the performance of this Agreement, including owned, non-owned (e.g., owned by CONTRACTOR’s employees or contractors), leased or hired vehicles, in the minimum amount of $1,000,000 combined single limit per occurrence for bodily injury and property damage. c. Commercial General Liability Insurance coverage in the minimum amount of $1,000,000 combined single limit, including coverage for:
(1) bodily injury;
(2) personal injury;
(3) broad form property damage;
(4) contractual liability;
(5) cross-liability;
(6) products and completed operations liability

4. Other Insurance Provisions.

If any insurance coverage required in this Agreement is provided on a “Claims Made” rather than “Occurrence” form, CONTRACTOR agrees to maintain the required coverage for a period of three (3) years after the expiration of this Agreement (hereinafter “post-agreement coverage”) and any extensions thereof. CONTRACTOR may maintain the required post-agreement coverage by renewal or purchase of prior acts or tail coverage. This provision is contingent upon post-agreement coverage being both available and reasonably affordable in relation to the coverage provided during the term of this Agreement. For purposes of interpreting this requirement, a cost not exceeding 100% of the last annual policy premium during the term of this Agreement in order to purchase prior acts or tail coverage for postagreement coverage shall be deemed to be reasonable.

5. Endorsements.

All required Automobile and Comprehensive or Commercial General Liability Insurance shall be endorsed to contain the following clauses:
a. The City of Visalia, its officers, agents, employees, representatives, and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of Visalia.
447
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b. It is agreed that any insurance maintained by the City of Visalia shall apply in excess of and not contribute with insurance provided by this policy.
c. This insurance shall not be canceled, limited in scope or coverage, or non-renewed until after thirty (30) days prior written notice has been given to the City Clerk, City of Visalia, 707 W. Acequia, Visalia, CA, 93291

6. Proof of Coverage.

CONTRACTOR agrees to provide its insurance broker(s) with a full copy of these insurance provisions and provide CITY on or before the effective date of this Agreement with Certificate(s) of Insurance for all required coverages. Copies of all the required Endorsements shall be attached to the Certificate(s) of Insurance or other evidence of insurance acceptable to the City of Visalia, which shall be provided by CONTRACTOR’s insurance company as evidence of the stipulated coverages. This Proof of Coverage shall then be mailed to the City of Visalia at the following address:

City of Visalia
707 W. Acequia
Visalia, CA 93291
Attn: Purchasing Division
448
Annual Contract for Backflow Testing, Repairs, and Maintenance Services at Various City Owned Locations RFB NO. 24-25-41

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Annual Contract for Landscaping and Irrigation Repair Services (City of Visalia Bid No. 25-26-29)
This Agreement, entered into and effective this ________ day of ________________, 2026 [“Effective Date”], by and between the City of Visalia, hereinafter referred to as the “CITY”, and JCS Land Management hereinafter referred to as the “CONTRACTOR”, “BIDDER”, or “SUBRECIPIENT”.

R E C I T A L S
WHEREAS, CONTRACTOR is a licensed landscape and irrigation contractor engaged in the business of providing plumbing repair and related services with a primary business address of 10859 E. Clarkson Avenue, Kingsburg, CA 93631 and SSN or EIN: 881956721; and
WHEREAS, CITY is a municipal corporation and Charter Law City; and WHEREAS, City of Visalia reviewed and evaluated responses to RFB No. 25-26-39, Annual Contract for Landscaping &Irrigation Repair Services, hereinafter referred to as the “Project”, and determined to award the contract to CONTRACTOR for the service; and
WHEREAS, CONTRACTOR represents it is licensed, qualified, and willing to complete the Project pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and CONTRACTOR agree as follows:

1. TERM:

2. ATTACHMENTS INCORPORATED:

The following are attachments for this Agreement. Said attachments are incorporated into this Agreement as if included in full in the body:

ATTACHMENT NO. DESCRIPTION OF ATTACHMENT
Attachment 1 General Contract Provisions
Attachment 2 Insurance Requirements
Attachment 3 City of Visalia Bid 25-26-29, Annual Contract for Landscaping and Irrigation Repair Services
Attachment 4 CONTRACTOR’s bid in response to Bid No. 25-26-29

3. CONTRACTOR SCOPE OF SERVICES and COMMITMENTS*:

CONTRACTOR shall provide the following services for the stated compensation on or before the stated completion dates (“Scope of Services”):

All work described in Scope of Services in Bid No. 25-26-29

4. CITY COMMITMENTS:

CITY shall perform the following tasks on or before the stated completion dates:

TASK COMPLETION DATE
Pay Contractor as work is completed and invoiced As requested by Contractor

5. COMPENSATION:

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agreed in writing. Such sum shall be expended and paid by CITY on a reimbursement basis for services actually performed based on invoices, receipts, time sheets, and similar documents presented by CONTRACTOR to CITY.

6. CONTRACT PRICE ADJUSTMENTS:

All prices shall be firm and fixed for twelve (12) months from the annual anniversary date of the agreement. Prices may be adjusted annually at the time of contract renewal and upon mutual agreement of the parties to the contract to allow for price increases or decreases for labor and benefit rates, supplies, and materials.

Requests filed after this time will not be considered.

The unit prices for the ensuing contracts shall be based on the movement of the unadjusted figures of the U.S.

IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written.

CONTRACTOR
Dated: ___________________ By:______________________________________________________ Authorized Officer: I certify under penalty of perjury under the laws of the State of California that I am fully authorized to execute this Agreement for CONTRACTOR in the capacity I have stated, and that such execution is sufficient to bind the CONTRACTOR.

CITY OF VISALIA
Dated: ____________________ By:______________________________________________________ City Manager
Dated: ____________________ By:______________________________________________________ City Attorney
Dated: ____________________ By:______________________________________________________ City of Visalia Risk Manager
Dated: ____________________ By:______________________________________________________ City of Visalia Project Manager
Total Compensation: Not to exceed $45,000 annually and not to exceed Contractor’s stated bid prices.

Source of Funds: Local Revenues
Payment Schedule: Within 30 days from date of invoice for completed work 450

ANNUAL CONTRACT FOR LANDSCAPING & IRRIGATION REPAIR SERVICES RFB NO. 25-26-29

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Attachment 1

GENERAL CONTRACT PROVISIONS
A. Successors and Assigns: This Agreement shall be binding upon and shall inure to the benefit of any successors to or assigns of the parties.

B. Prohibition of Assignment: Neither party shall assign, delegate or transfer their rights and duties in this Agreement without the written consent of the other party.

CITY OF VISALIA JCS LAND MANAGEMENT
707 W. Acequia Ave. 10859 E. Clarkson Avenue
Visalia, CA 93291 Kingsburg, CA 93631
Attention: City Clerk Attention: Jasiel Contreras
D. Independent Contractor: It is understood and agreed by the parties herein that CONTRACTOR, in the performance of this Agreement, shall act as an independent contractor, and therefore shall obtain no rights to any fringe benefits that accrue to regular full-time CITY employees.

F. Integration/Modification: This Agreement and each of the documents and exhibits or attachments referenced herein, which are incorporated by reference, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the parties, unless otherwise explicitly authorized.

G. Conflict With Law: If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said law, but the remainder of the Agreement shall be in full force and effect.

J. Headings: Section headings are provided for organizational purposes only and do not in any manner affect the scope or intent of the provisions thereunder.

ANNUAL CONTRACT FOR LANDSCAPING & IRRIGATION REPAIR SERVICES RFB NO. 25-26-29

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exemption in the contract. If a contractor/vendor/consultant is caught carrying a gun, without City permission, their contract will be terminated.

L. Executive Order N-6-22 – Russia Sanctions: On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State. 452

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Attachment 2

INSURANCE REQUIREMENTS

1. CONTRACTOR Insurance. CONTRACTOR, at its sole cost and expense, for the full term of this Agreement (and any extensions thereof), shall obtain and maintain at a minimum compliance with all of the following insurance coverage(s) and requirements. Such insurance coverage shall be primary coverage as respects CITY and any insurance or self-insurance maintained by CITY shall be in excess of CONTRACTOR’s insurance coverage and shall not contribute to it.

3. Types of Insurance and Minimum Limits. The following types of insurance and minimum limits are required providing at least the following minimum coverage and limits of liability:
a. Worker’s Compensation written in accordance with the laws of the State of California providing coverage for any and all employees of CONTRACTOR in the minimum statutorily required coverage amounts;
b. Automobile Liability Insurance for each of CONTRACTOR’s vehicles used in the performance of this Agreement, including owned, non-owned (e.g. owned by CONTRACTOR’s employees or contractors), leased or hired vehicles, in the minimum amount of $1,000,000 combined single limit per occurrence for bodily injury and property damage.
c. Comprehensive or Commercial General Liability Insurance coverage in the minimum amount of $1,000,000 combined single limit, including coverage for:
(1) bodily injury;
(2) personal injury;
(3) broad form property damage;
(4) contractual liability;
(5) cross-liability;
(6) products and completed operations liability

4. Other Insurance Provisions.

CONTRACTOR may maintain the required post agreement coverage by renewal or purchase of prior acts or tail coverage. This provision is contingent upon post agreement coverage being both available and reasonably affordable in relation to the coverage provided during the term of this Agreement. For purposes of interpreting this requirement, a cost not exceeding 100% of the last annual policy premium during the term of this Agreement in order to purchase prior acts or tail coverage for post agreement coverage shall be deemed to be reasonable.

5. Endorsements.

ANNUAL CONTRACT FOR LANDSCAPING & IRRIGATION REPAIR SERVICES RFB NO. 25-26-29

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c. This insurance shall not be canceled, limited in scope or coverage, or non-renewed until after thirty (30) days prior written notice has been given to the City Clerk, City of Visalia, 707 W. Acequia, Visalia, CA, 93291

6. Proof of Coverage.

City of Visalia
707 W. Acequia
Visalia, CA 93291
Attn: Purchasing Division
454
Annual Contract for Landscaping & Irrigation Repair Services RFB-25-26-29 Addendum #1 Page 1 of 5
City of Visalia Purchasing Division
707 W. Acequia Avenue
Visalia, CA 93291 (559)713-4334
[email protected]

CITY OF VISALIA, CA

REQUEST FOR BID
RFB-25-26-29

ANNUAL CONTRACT FOR LANDSCAPE & IRRIGATION SERVICES
ADDENDUM NO. 1
Issued: April 30, 2026
Submittals Due: 10:00 AM ON THURSDAY, MAY 7, 2026
Addendum No. 1 is hereby issued to provide responses to questions received regarding this project and to revise the Bid Sheet by removing Item No. 3 related to the licensed electrician requirement. This addendum must be signed and submitted with bid.

ITEM 1: Removal of line item
The attached revised Bid Sheet has been modified to remove the line item (3) for rates related to a licensed electrician.

Bidders shall use the amended Bid Sheet when preparing and submitting their bid proposal.

ITEM 2: QUESTIONS/RESPONSES
Q. 1 Do you have to be a licensed electrician, as stated on the bid sheet? Response: No. A licensed electrician is not required under this contract. The line item related to licensed electrician rates has been removed from the revised Bid Sheet issued with this Addendum. Bidders should complete and submit pricing using the amended Bid Sheet only.

Q. 2 Would there be any electrical panel work?
Response: No. Any electrical panel work, if required, will be performed by a separately contracted licensed electrical contractor. Low-voltage electrical work at the irrigation controller or downstream of the controller may be performed by the landscape contractor as part of the scope of work.

Q.3 What happens if lines are under concrete? At what point will a concrete contractor be brought in? Response: The landscape contractor may perform repairs to broken irrigation lines located beneath concrete surfaces, provided the work is within the contractor’s applicable license classification and performed in accordance with all applicable laws and regulations. If the associated concrete removal and/or replacement work is estimated to exceed $1,000, the City will have that portion of the work performed by a concrete contractor.

Q.4 How do we add the cost to dispose of the concrete cleanout? Response: All cleanup and debris disposal are at the contractor's expense and should be factored into your bid accordingly. 455
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Q.5 If we are doing repairs and there is concrete or asphalt work to be done, who will handle that? Is there already a contract in place for these services?
Response: The City will engage a concrete or paving contractor for any major concrete or asphalt work. The City currently has a concrete repair contract through Public Works.

Q. 6 Do you have to be a General Contractor?
Response: No. The required license for this contract is a C-27 Landscape Contractor's license.

Q.7 How does the City ensure there is proper manpower to handle a job? Response: The contractor is responsible for ensuring they have adequate staff and resources to complete all work within the specified requirements.

Q.8 What is the expected response time? What happens if we cannot respond within the allotted time frame? Response: The contractor must respond to emergency repair calls within two (2) hours of notification. The project manager will establish a reasonable completion date for each repair. If the contractor cannot meet that deadline, the project manager may engage other vendors to complete the repair.

Q.9 Will a markup be allowed for parts? Are tools reimbursable if purchased specifically for a job? Response: No markup on material costs will be allowed for repairs. The contractor is responsible for furnishing all necessary tools and equipment for each repair at their own expense.

END OF ADDENDUM NO. 1
/s/ Purchasing Division
(559) 713-4334
RESPONDENT to sign and submit with PROPOSAL
Firm: Date:

By:

Bidder’s Signature
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Bidding Firm:_____________________
EXHIBIT “A”

BID FORM
RFB NO. 25-26-29
Project: LANDSCAPING & IRRIGATION REPAIR SERVICES
TO: THE CITY OF VISALIA PURCHASING DIVISION:

In compliance with the City’s Notice Inviting Sealed Bids No. 25-26-29 dated: __________, the undersigned BIDDER hereby proposes to furnish all materials, equipment, tools, labor appurtenances and incidentals required for the above stated project as set forth in the RFB, including all Exhibits and related contract documents therefore, and to perform all work in the manner and time prescribed therein.

BIDDER declares that this proposal is based upon careful examination of the scope of services , Instructions to BIDDERs, and the contract requirements. If this proposal is accepted for award, BIDDER agrees to enter into a contract with CITY at the unit and/or lump sum prices set forth in the following Bid Schedule.

BIDDER understands that a bid is required for the entire work and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. It is agreed that all prices bid include all appurtenant expenses, taxes, royalties, and fees. All bids will be checked for accuracy. In the case of discrepancies in amounts bid, unit prices shall govern over extended amounts.

BIDDER hereby agrees to execute a contract within ten (10) working days, or such further time as may be allowed in writing by the Purchasing Division, after receiving notification of the acceptance of this Bid, and it is hereby mutually understood and agreed that in case the BIDDER does not, said Purchasing Division may proceed to award the contract to others.

BIDDER agrees to commence the work on the start date agreed between BIDDER and Project Manager, only after the contract is fully executed and Notice to Proceed has been issued.

BIDDER further declares that he/she has not either directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with said bid.

Bid Award shall be based on the Total Bid Amount. The quantities given on the Bid Proposal form and any related contract documents are estimates only. They are given as a basis for comparison of Bids. The City of Visalia does not, expressly or impliedly, agree that the actual amount of work will correspond therewith, and reserves the right to increase or decrease the amount of any class or portion of work, or to omit a portion of the work, as the City deems necessary or advisable, at the prices Bid.

BIDDER has read and hereby agrees to the conditions stated in this proposal by affixing his/her signature on the Bid Form.

In the case of discrepancy in amounts bid, unit pricing shall prevail over extended amounts. 457
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Pricing shall include all labor, supervision, tools, equipment, and incidentals necessary to perform the work described in the Scope of Services. No additional charges for standard tools or equipment will be accepted unless pre-approved by the City.

Item Annual Contract for Landscaping & Irrigation Repair Services per specifications of RFB-25-26-29 Hourly Labor Rate
(unit price)
1 General Landscape Repair Technician (includes irrigation, turf, planting, and general repairs) $_______/per hour
2 Skilled Technician (includes backflow, masonry, fencing, amenities, and specialty repairs) $_______/per hour
3 Licensed Electrician (for minor electrical work ≤120V related to landscape/lighting systems) $_______/per hour
4 Laborer / Helper $_______/per hour
5 Emergency / After-Hours Rate (if applicable) $_______/per hour Total Bid Amount
(Items 1-5)
$___________
By signing below, the Bidder certifies that all required licenses are current, active, and in good standing with the California Contractors State License Board (CSLB), and that all work performed under this contract will be completed by properly licensed individuals or subcontractors in accordance with applicable laws. (1)_______________________________________________________________________________________ Bidding Firm
(2)_____________________________________________________________________________________ Corporation, Partner, Joint Venture
(3)_______________________________________________________________________________________ Business Address City State Zip Code
_________________________________________________________________________________________ Telephone Number Fax Number
_________________________________________________________________________________________ E-mail Address
(4)_______________________________________________________________________________________ Signature of Authorized Person (Date)
________________________________________________________________________________ Type or Print Authorized Person’s Name

PLEASE SEE THE FOLLOWING INSTRUCTIONS REGARDING SIGNATURE (1) If the BIDDER is an individual, enter name here in style used in business; if a joint venture, exact name of entities joining in the venture; if a partnership, the correct trade style of the partnership; if a corporation, the exact name of the corporation.
(2) If BIDDER is other than an individual, identify here its character, i.e., joint venture, partnership, corporation, including the state of incorporation. If BIDDER is an individual operating under a trade name, state “an individual dba (trade name in full)”.
458
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(3) State on this line the address to which all communications and notices regarding the Bid Proposal, and any contract awarded thereunder, are to be addressed.
(4) If BIDDER is a joint venture, signature must be by one of the joint venturers, and if one or both of the joint venturers is a partnership or a corporation, each participating partnership must sign by a general partner, and each corporation by an authorized officer or employee; if a partnership, by a general partner; if a corporation, by an authorized officer or employee. The title of the person signing must appear after his/her signature. Where BIDDER is a partnership or corporation, the names of all other general partners, or the president or secretary of the corporation, and their business addresses must be shown below.

Note: All names must be typewritten under the written signature. All Addresses must be complete with street number, city, state, and zip code.
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City of Visalia
Labor Compliance Manual
Visalia Purchasing Division
Adopted January 2015
707 West Acequia
Visalia, CA 93291
Phone (559) 713-4334
[email protected]
468
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Contents
Preface............................................................................................................................... 3 Introduction........................................................................................................................ 3 Public Works Contracts................................................................................................... 4 Prevailing Wage Requirements ..................................................................................... 5 Duty of the Awarding Body (COV)................................................................................. 8 Duty of the Contractor/Subcontractor ......................................................................... 16 Appendix A – Labor Code section 96.7...................................................................... 24 Appendix B – Labor Code Section 1720-1743.......................................................... 25 Appendix C – Labor Code Section 1770-1784.......................................................... 35 Appendix D – Labor Code Section 1810-1815.......................................................... 56 Appendix E – Labor Code Section 3070-3098.......................................................... 57 Appendix F – Public Contract Code Sections 4104, 4107, 4107.5, 4108, 10164, and 20103.5 .................................................................................................................... 67 Appendix G – United States Code Title 29 Labor Section 175a ............................ 71 Appendix - H Government Code Section 6700, 12926-12926.1, 12940 ............. 72 Appendix I – Code of Civil Procedure Section 1085 ................................................ 81 Appendix J – Statement of Compliance ..................................................................... 82 469
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Preface
The City of Visalia (COV) has prepared this instructional manual for the purpose of compliance with California Labor code as enforced by the State of California Department of Industrial Relations Division of Labor Standards Enforcement (DLSE). The COV will enforce California Labor Code in accordance with Section 1726 and promptly report any suspected violations to the California Labor Commissioner.

Historically, the COV Municipal Code provisions (Chapter 3.37) have not required the application of prevailing wage laws for locally funded projects. This option was available to the COV as a charter city. On October 13, 2013, California Senate Bill No. 7 (SB7) was approved, adding Section 1782 to the California Labor Code. Section 1782 prohibits charter cities from receiving or using state funding or financial assistance for any construction project if they have charter provisions allowing them not to apply prevailing wage requirements to any public works contract, whether locally funded or not.

Chapter 3.37 of the COV Municipal Code has been amended effective January 1, 2015, to require compliance with State Prevailing Wage Laws on all City contracts for public works advertised for bid after December 31, 2014. Additional provisions included in this amendment will repeal or suspend the prevailing wage requirements on locally funded public works projects should the result of any legal action invalidate or stay the enforcement of Labor Code Section 1782.

This manual is provided to inform COV staff and contractors of existing California Labor Code (CLC) law. Nothing in this manual is meant to limit or change the enforcement of CLC as set forth in California law.

Introduction
The COV is required by current California Labor Law to comply with the Labor Code sections discussed in this manual. This responsibility is to be taken seriously by all City employees and contractors.
o As stated in labor code section 1777, any officer, agent, or representative of the State or of any political subdivision who willfully violates any provision of this article, and any contractor, or subcontractor, or agent or representative thereof, doing public work who neglects to comply with any provision of section 1776 is guilty of a misdemeanor. As defined in 1777.1(e), a willful violation occurs when the individual knew or reasonably should have known their obligation but fails or deliberately refuses to comply.
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o As stated in more detail in section 1777.1, any contractor or subcontractor found to be in violation of Chapter 1, Part 7 of the labor code (sections 1720-1861) with intent to defraud will be ineligible to bid on, perform work as a subcontractor on, or be awarded a public works contract for a period of up to 3 years.
o Violations of prevailing wage requirements may be classified as a misdemeanor, a felony and/or can result in significant financial penalties in addition to the requirement to pay or correct any deficiency in wages paid or apprenticeship hours worked. (See labor code sections 1775, 1777.7, 1778, 1779, 1780 and 1814.)
The Labor Commissioner maintains a list of debarred (ineligible) contractors which will be reviewed by the COV before the award of any public works contract.

Public Works Contracts

1. Types of Contracts to Which Prevailing Wage Requirements Apply In addition to projects with prevailing wage requirements imposed upon them by a particular funding source or federal or state law, all public works contracts entered into by the COV will be required to comply with the prevailing wage law set forth in the California Labor Code (CLC).

Existing law defines “public works” to include, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds, and street, sewer, or other improvement work done under the direction and supervision or by the authority of an officer or public body of the state, or of any political subdivision or district thereof.

Per section 1771, prevailing wage requirements apply only to work performed under contract and are not applicable to work carried out by a public agency with its own work force. Contracts for maintenance work must comply with prevailing wage requirements.

For a more exhaustive definition of public works contracts, please refer to Labor Code section 1720.

2. Limited Exemption
Section 1782(d)(1) of the Labor Code excludes public works contracts for projects of $25,000 or less for construction work or projects of $15,000 or less for alteration, demolition, repair, or maintenance work from the 471
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prevailing wage requirements. In accordance with CLC section 1725.5(d)(3), if the amount of an exempt contract is changed by an increase in scope, resulting in a public work contract amount that exceeds these exempt amounts, workers employed on the contract from the contract amendment date forward shall be paid the prevailing wage and all public work requirements under CLC shall apply to the project from that date forward.

Also excluded from the requirements of Section 1782 are COV contracts awarded or advertised for bid prior to January 1, 2015. (Labor code sections 1782(f).)
Labor Code section 1720 contains additional specific exemptions that may apply to specific types of projects.

3. Applicable Dates for Enforcement
All public works contracts entered into on or after January 1, 2015 which do not fall under the exclusions in section 2 above, fall under the prevailing wage requirements.

Prevailing Wage Requirements
The sections of California Labor Code addressed in this manual impose three general categories of requirements, contractor registration, prevailing wage/certified payroll records, and apprenticeship.

Contractor Registration
Effective for any bid submitted on or after March 1, 2015 and any contract awarded on or after April 1, 2015, all contractors must be registered according to the requirements of Labor Code Section 1725.5 to be qualified to bid on, be listed in a bid proposal, or engage in the performance of any public works contract for the COV. The full text of the requirements of Section 1725.5 and its enforcement (Section 1771.1) is included in the attached appendices.

Based upon the definition of a public works contract in Labor Code section 1782(d)(1), specific to charter cities, the requirement for contractor registration does not apply to contracts for projects of $25,000 or less for construction work or projects of $15,000 or less for alteration, demolition, repair, or maintenance work. For the purpose of this section, a project would include all the components of any individual contract, regardless of multiple phases and/or work locations. 472
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As required by CLC section 1771.1(b), notice of the requirement for contractor registration shall be included in all bid invitations and public works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor’s current registration in accordance with section 1725.5.

The specific duties of the awarding body (COV) and the contractor/subcontractor in relation to contractor registration are discussed further in their respective sections of this manual.

Prevailing Wage / Certified Payroll Records
Labor code sections 1771 and 1777.5 require the payment of the general prevailing rate of per diem wages for all work on public works projects. Labor code section 1774 also requires the contractor to whom the contract is awarded and any subcontractor under him to pay at least the prevailing wage to all workmen employed on the contract.

As required by labor code section 1776, each contractor and subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work.

A certified copy of each weekly payroll must be furnished directly to the Labor Commissioner as specified in the contract. As stated in 1771.4(a)(3)(B), the records shall be in a format prescribed by the Labor Commissioner. In accordance with CLC section 1776(a), each payroll record must contain or be verified by a written declaration, under penalty of perjury that the information contained within is true, correct and complies with the requirement of sections 1771, 1811, and 1815 for any work performed by the contractor’s employees on a public work project.

In addition, these payroll records and their supporting documentation must be made available for inspection or copies provided, at all reasonable hours at the principal office of the contractor, to the various authorized parties discussed in labor code section 1776, including, but not limited to, the employee, the COV and the Department of Labor Standards Enforcement (DLSE). Public requests for copies of certified payroll records must be made directly to the COV or the DLSE.

The contractor must inform the COV of the location of the payroll records discussed above and notify the COV within 5 working days of any change in their location. Payroll records and their supporting documentation requested in writing, in accordance with the restrictions of section 1776, must be provided 473
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within 10 days. Failure to comply within a 10-day period will result in a penalty of $100 per day for each worker until the records are provided.

The specific duties of the awarding body (COV) and the contractor/subcontractor in relation to prevailing wage and certified payroll records are discussed further in their respective sections of this manual.

Apprentices
As required by CLC section 1777.5(d), contractors awarded public works contracts who employ workers in any apprenticeable craft or trade in the performance of the contract shall employ apprentices in at least the ratio of one hour of apprentice work for every five hours of journeyman work. In accordance with CLC section 1777.5, apprentices are to be paid the prevailing wage for apprentices in the trade to which they are registered.

Prior to commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work. The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body if requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (CLC section 1777.5(e).) Contractors should also review the potential applicable exemptions to apprenticeship requirements in Labor Code 1777.5.

Only apprentices, as defined in CLC section 3077, in training under apprenticeship standards approved by the Division of Apprenticeship Standards (DAP) and party to written apprentice agreements under CLC section 3070-3098 may be employed at the apprentice wage rate on public works.

The specific duties of the awarding body (COV) and the contractor/subcontractor in relation to apprenticeship requirements are discussed further in their respective sections of this manual.
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Duty of the Awarding Body (COV)
As the awarding body on public works contracts, the COV must comply with various requirements of the California Labor Code (CLC). The project manager and purchasing are responsible for the COV’s compliance with labor law throughout the various stages of a public works project as shown below.

1. Bid/Quote preparation (Purchasing/Project Manager)

2. Bid conference (Purchasing)

3. Contract award (Purchasing)

4. Contract language (Project Manager)

5. Contract administration and compliance monitoring (Purchasing/Project Manager)

1. Bid Preparation (Purchasing/Project Manager)
Contract Language (Purchasing): The COV awards contracts on a competitive basis. The following statements are required by California Labor Code (CLC) to be included in all public work requests for quotes, bids or proposals:
❑ As set forth in CLC section 1771.1(a), all contractors and subcontractors must be currently registered and qualified to perform public work pursuant to CLC section 1725.5 to be qualified to bid, be listed in a bid proposal, or perform any public work for the COV. Proof of registration for each contractor and subcontractor listed on the bid is required. ❑ As set forth in CLC section 1771.4 (a)(1), notice is given that this project is and public work, subject to compliance monitoring and enforcement by the Department of Industrial Relations.

The following subcontractor provisions shall be included in any contract executed between the contractor and a subcontractor for performance of work on this public work project:
❑ As set forth in CLC section 1775(b)(1), any contract executed between a contractor and a subcontractor for the performance of work on a City of Visalia public works project shall include a copy of the provisions of Labor Code sections 1771, 1776, 1777.5, 1813, and 1815. These labor code sections are included herein as attachments to this contract. 475
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❑ As set forth in CLC section 1735, a contractor must not discriminate in the employment of persons on public work contracts on any basis listed in government code sections 12940, 12926, or 12926.1.
❑ As set forth in CLC section 1775(b)(2), the contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.
❑ As set forth in CLC section 1775(b)(3), upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. ❑ As set forth in CLC section 1775(b)(4), prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. Prior to the release of retention to the contractor, the COV will require a copy of the affidavit(s) completed by each listed subcontractor.

Contract inclusion and/or attachments (Project Manager): The following item is required to be included either in the body of, as attachments to, or addendums of all public work requests for bids or proposals:
❑ As set forth in CLC section 1773, the COV shall obtain the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work in the locality in which the public work is to be performed for each craft, classification, or type of worker needed to execute the contract from the Director of Industrial Relations. In accordance with labor code section 1773.2, this information is to be included in the bid specifications and in the contract itself. 10 days before the closing date of the bid, the project manager will review the prevailing wage rates included in any requests for bid proposals for updates and issue an addendum to notify interested bidders of any changes. General prevailing wage determinations made by the director of industrial relations for journeyman and apprentices may be found at:
http://www.dir.ca.gov/OPRL/PWD/index.htm and
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2. Bid conferences (Purchasing)
❑ Each prospective bidder shall be provided a copy of the COV Labor Compliance Manual.
❑ Purchasing shall review the Duty of the Contractor/Subcontractor section of the COV Labor Compliance Manual.

3. Contract Award (Purchasing)
Prior to Award: Before the award of any public works contract, the following items will be verified:
❑ Purchasing will consult the list of ineligible contractors maintained by the Labor Commissioner, according to labor code sections 1741(c) and 1771.1(e), to verify that all contractors and subcontractors listed on the winning bid are eligible to perform work on public works contracts. The list of contractors who are currently barred from participation on public works contracts may be found at: http://www.dir.ca.gov/dlse/debar.html . ❑ Purchasing will confirm the registration of each contractor and subcontractor in compliance with CLC section 1725.5. The confirmation can be completed at: https://efiling.dir.ca.gov/PWCR/Search.action .

After Award: Upon the actual award of a public works contract by the COV, purchasing will complete the following:
❑ As required by labor code section 1773.3(a)(1), within 5 days of the award of a public works contract by the COV, purchasing must provide notice of the award to the Department of Industrial Relations. A DAS form PWC100 must be filed on the Department of Industrial Relations website (www.dir.ca.gov/pwc100ext). The registration requires the following information:
o Name of the contractor and any subcontractor listed on the successful bid,
o The bid and contract award dates,
o The contract amount,
o The estimated start and completion dates,
o Job site location.
o Any additional information requested by the Department Industrial Relations.
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4. Contract Preparation (Purchasing/Project Manager)
Language and Inclusions: The following statements and requirements are to be included in all COV public work contracts that require the payment of prevailing wages in accordance with California Labor Code (CLC).
❑ As set forth in CLC section 1771.1(a), all contractors and subcontractors must be currently registered and qualified to perform public work pursuant to CLC section 1725.5 to be qualified to bid, be listed in a bid proposal, or perform any public work for the COV. Proof of registration for each contractor and subcontractor listed on the bid is required. ❑ As set forth is CLC section 1771.4 (a)(1), notice is given that this project is a public work, subject to compliance monitoring and enforcement by the Department of Industrial Relations.
❑ As set forth in CLC section 1771.4(a)(2), the prime contractor is required by the COV to post job site notices, as prescribed by regulation.

Information on required workplace postings may be found on the Department of Labor website at: http://www.dir.ca.gov/wpnodb.html . ❑ The contractor and each subcontractor shall maintain all project records required under CLC for public works projects and preserve them for a minimum 3-year period to begin on the date a Notice of Completion is filed for the project. Please refer to the retention period required for any grant or specialized project funding. Some funding sources require an extended time period for records retention.
❑ In accordance with CLC section 1773.2, the contractor is required, by the COV, to post a copy of the determination of the Director of Labor Standards prevailing rate of per diem wages for each craft, classification, or type of worker needed to execute the contract at each job site. ❑ In accordance with labor code section 1776 and it’s enforcement (1771.4(a)(3)), for initial contracts awarded on or after April 1, 2015 each project contractor and subcontractor shall;
o Maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1811 and 1815, signed under penalty of perjury.
o Make available or provide a certified copy of these payroll records and their supporting documentation within 10 days to all authorized parties upon written request and be subject to penalties for noncompliance as detailed in labor code section 1776. 478
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o Inform the COV of the location of the payroll records kept in compliance with labor code section 1776(g) and notify the COV within 5 working days of any change in their location.
❑ The COV will comply with any prevailing wage monitoring and enforcement activities required by the labor compliance programs of the Department of Industrial Relations including the withholding of contract payments in the amount of any underpayment of prevailing wage and applicable penalties as directed by the Department of Labor Standards Enforcement in accordance with CLC section 1727(a). Any amount withheld will be released as directed by the Labor Commissioner upon receipt of a certified copy of a final order no longer subject to judicial review in accordance with CLC section 1742(f).
❑ As set forth in labor code section 1775(b), the following subcontractor provisions shall be included in any contract executed between the contractor and a subcontractor for performance of work on this public work project:
o As set forth in CLC section 1775(b)(1), any contract executed between a contractor and a subcontractor for the performance of work on a City of Visalia public works project shall include a copy of the provisions of Labor Code sections 1771, 1776, 1777.5, 1813, and 1815. These labor code sections must be included within or as attachments to the contract.
o As set forth in CLC section 1776, the subcontractor shall maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1776, 1811 and 1815, signed under penalty of perjury. o As set forth in CLC section 1775(b)(2), the contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.
o As set forth in CLC section 1775(b)(3), upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project.
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o As set forth in CLC section 1775(b)(4), prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. Prior to the release of retention to the contractor, the COV will require a copy of the affidavit(s) completed by each listed subcontractor.
❑ In accordance with CLC section 1777.5(e), prior to commencing work on a contract for public work; every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
❑ Only apprentices, as defined in CLC section 3077, in training under apprenticeship standards approved by the Division of Apprenticeship Standards (DAP) and party to written apprentice agreements under CLC section 3070-3098 may be employed at the apprentice wage rate on public works.
❑ Unless exempted under CLC section 1777.5(j), a contractor working on a public works contract of $30,000 or more shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards (CLC 1777.5(n)). In no event shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
❑ The prime contractor is responsible for compliance with the requirements of CLC section 1777.5 for all apprenticeable occupations employed on the contract. As stated in 1777.5 (o), the apprenticeship requirement does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contract is less than thirty thousand dollars ($30,000). ❑ As stated in section 1777.7(e), the prime contractor will not be liable for any penalties assessed for violations of section 1777.5 if they have complied with the following requirements:
o 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 section 1771, 1775, 1776, 1777.5, 1813 and 1815. These labor code sections must be included within or as attachments to the contract.
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o The contractor shall continually monitor a subcontractors use of apprentices required to be employed on the public works project pursuant to subdivision (d) of section 1777.5, including, but not limited to, periodic review of the certified payroll of the subcontractor. o Upon becoming aware of a failure of the subcontractor to employ the required number of apprentices, the contractor shall take corrective action, including , but not limited to, retaining funds due to the subcontractor for work performed on the public works project until the failure is corrected.
o Prior to making a final payment to the subcontractor for work performed on the public works project, the contractor shall obtain a declaration signed under penalty of perjury from the subcontractor that the subcontractor has employed the required number of apprentices on the public works project.
❑ The prime contractor is required to provide a signed affidavit declaring their compliance with California Labor Code sections 1771 (prevailing wage) and 1777.5 (apprenticeship) for all workers employed on the contract before final payment will be made on the contract by the COV.

Contract inclusion and/or attachments: The following item is required to be included either in the body of, as attachments to, or addendums of all public work contracts:
❑ As set forth in CLC section 1773, the COV shall obtain the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work in the locality in which the public work is to be performed for each craft, classification, or type of worker needed to execute the contract from the Director of Industrial Relations. This will include the apprenticeship prevailing wage for all apprenticeable trades.

In accordance with labor code section 1773.2, this information is to be included in the contract itself.
10 days before the closing date of the bid, the project manager will review the prevailing wage rates included in any requests for bid proposals for updates and issue an addendum to notify interested bidders of any changes. General prevailing wage determinations made by the director of industrial relations for journeyman and apprentices may be found at:
http://www.dir.ca.gov/OPRL/PWD/index.htm and
http://www.dir.ca.gov/OPRL/PWAppWage/PWAppWageStart.asp 481
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5. Contract Administration and Compliance Monitoring (Purchasing/Project Manager)
Pre-Construction Conference: Project Manager shall meet with the contractor and subcontractor(s) prior to the commencement of work on the project to review the following:
o The COV labor Compliance manual. Project Manager will provide the contractor and subcontractors with copies of the manual as needed. o The contractor and subcontractor(s) will be given the opportunity to ask questions concerning the contract requirements.
o When a public work contract is below $25,000, and the result of a competitive quote process, the Labor Compliance Manual will be provided as an attachment to the Purchase Order (PO) when issued.

Contract Administration: The project manager will be responsible for the following:
❑ Project manager will confirm the contractor has posted, in accordance with CLC section 1773.2, a copy of the determination of the Director of Labor Standards prevailing rate of per diem wages for each craft, classification, or type of worker needed to execute the contract at each job site. ❑ Prior to making final payment to any subcontractor(s) for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from each subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. Prior to the release of retention to the contractor, the COV will require a copy of the affidavit(s) completed by each listed subcontractor.
❑ The project manager will require the prime contractor to provide a signed affidavit declaring their compliance with California Labor Code sections 1771 (prevailing wage) and 1777.5 (apprenticeship) for all workers employed on the contract before approving final payment on the contract. ❑ Any complaints received by the project manager alleging noncompliance with prevailing wage or apprenticeship requirements will be forwarded to the purchasing department in writing (email acceptable) by the end of the following business day. Complaints received will not be pursued or discussed with contractors or subcontractors on the project by COV employees.
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❑ Any complaints received by purchasing alleging noncompliance with prevailing wage or apprenticeship requirements will be forwarded to the Department of Labor Standards Enforcement (DLSE) in writing (email acceptable) within 3 business days. Complaints received will not be pursued or discussed with contractors or subcontractors on the project by COV employees.
❑ The project manager will communicate on a regular basis with the prime contractor.
❑ When visiting the job site, the project manager shall not enter any area that appears unsafe. When entering a construction area, COV personnel are expected to exercise reasonable caution and required to wear hard hats, safety shoes and safety vests at all times.
❑ All authorized COV personnel visiting any COV construction site are required to be properly identified as a COV representative by wearing a visible employee ID badge or identifying themselves as such. ❑ Public requests for certified payroll records must be made directly to the COV or the Department of Labor Standards Enforcement. Upon the receipt of such a request, the project manager will process the request in accordance with CLC section 1776. The COV may charge reasonable fees to reimburse the costs of preparation and reproduction of public requests for certified payroll records in accordance with 1776(b)(3). ❑ The contractor and each subcontractor shall maintain all project records required under CLC for public works projects and preserve them for a minimum 3-year period to begin on the date a Notice of Completion is filed for the project. Please refer to the retention period required for any grant or specialized project funding. Some funding sources require an extended time period for records retention.

Duty of the Contractor/Subcontractor
Contractor Registration
❑ As set forth in CLC section 1771.1(a), all contractors and subcontractors must be currently registered and qualified to perform public work pursuant to CLC section 1725.5 to be qualified to bid, be listed in a bid proposal, or perform any public work for the COV. Proof of registration for each contractor and subcontractor listed on the bid is required. 483
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Based upon the definition of a public works contract in Labor Code section 1782(d)(1), specific to charter cities, the requirement for contractor registration does not apply to public works contracts for projects of $25,000 or less for construction work or projects of $15,000 or less for alteration, demolition, repair, or maintenance work.

Contractor registration requires a $300 annual fee, worker’s compensation coverage for employees and various certifications of compliance with labor law. Information on contractor registration may be found on the Department of Industrial Relations (DIR) website at:
http://www.dir.ca.gov/Public-Works/PublicWorks.html
https://www.dir.ca.gov/dlse/PublicWorks/SB854FactSheet_6.30.14.pdf Required Postings for Prevailing Wage Projects
❑ As set forth in CLC section 1771.4(a)(2), the prime contractor is required by the COV to post job site notices, as prescribed by regulation.

Information on required workplace postings may be found on the Department of Labor website at: http://www.dir.ca.gov/wpnodb.html . ❑ In accordance with CLC section 1773.2, the contractor is required, by the COV, to post a copy of the determination of the Director of Labor Standards prevailing rate of per diem wages for each craft, classification, or type of worker needed to execute the contract at each job site.

Subcontractor Requirements
As set forth in labor code section 1775(b), the following subcontractor provisions shall be included in any contract executed between the contractor and a subcontractor for performance of work on a COV public works project requiring the payment of prevailing wages:
❑ As set forth in CLC section 1775(b)(1), any contract executed between a contractor and a subcontractor for the performance of work on a City of Visalia public works project shall include a copy of the provisions of Labor Code sections 1771, 1776, 1777.5, 1813, and 1815. These labor code sections must be included within or as attachments to the contract. ❑ As set forth in CLC section 1776, the subcontractor shall maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1776, 1811 and 1815, signed under penalty of perjury.
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❑ As set forth in CLC section 1775(b)(2), the contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.
❑ As set forth in CLC section 1775(b)(3), upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. ❑ As set forth in CLC section 1775(b)(4), prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. ❑ In accordance with CLC section 1777.5(e), prior to commencing work on a contract for public work; every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
❑ Only apprentices, as defined in CLC section 3077, in training under apprenticeship standards approved by the Division of Apprenticeship Standards (DAP) and party to written apprentice agreements under CLC section 3070-3098 may be employed at the apprentice wage rate on public works.
❑ Unless exempted under CLC section 1777.5, a contractor working on a public works contract of $30,000 or more shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards (CLC 1777.5(n)). Unless an exemption applies, in no event shall the ratio be less than one hour of apprentice work for every five hours of journeyman work. ❑ The prime contractor is responsible for compliance with the requirements of CLC section 1777.5 for all apprenticeable occupations employed on the contract. As stated in 1777.5 (o), the apprenticeship requirement does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contract is less than thirty thousand dollars ($30,000). ❑ As stated in section 1777.7(e), the prime contractor will not be liable for any penalties assessed for violations of section 1777.5 by a subcontractor if the prime contractor complied with the following requirements:
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❑ 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 section 1771, 1775, 1776, 1777.5, 1813 and 1815. These labor code sections must be included within or as attachments to the contract.
❑ The contractor shall continually monitor a subcontractors use of apprentices required to be employed on the public works project pursuant to subdivision (d) of section 1777.5, including, but not limited to, periodic review of the certified payroll of the subcontractor.
❑ Upon becoming aware of a failure of the subcontractor to employ the required number of apprentices, the contractor shall take corrective action, including , but not limited to, retaining funds due to the subcontractor for work performed on the public works project until the failure is corrected.
❑ Prior to making a final payment to the subcontractor for work performed on the public works project, the contractor shall obtain a declaration signed under penalty of perjury from the subcontractor that the subcontractor has employed the required number of apprentices on the public works project.

Certified Payroll Records
❑ In accordance with labor code section 1776 and it’s enforcement (1771.4(a)(3)), for initial contracts awarded on or after April 1, 2015 and all prevailing wage projects, each project contractor and subcontractor shall; o Maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1811 and 1815, signed under penalty of perjury. Sole owners and partners who work on COV public works contracts must also submit a certified payroll record listing days and hours worked and the trade classification descriptive of the work actually done. The Department of Industrial Relations (DIR) approved form (A-1-131) for this purpose, which includes the certification, may be found at:
http://www.dir.ca.gov/dlse/publicWorksPayrollInstructions.htm Certified payroll records (CPR’s) required by CLC 1776 may be 486
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maintained electronically as long as the following conditions are met:
• The printouts of electronic data contain the same information as form A-1-131.
• A full copy of the CPR’s submitted for each pay period is kept in the form of a non-modifiable image (including a signed certification) or in paper form.
o Make available or provide a certified copy of these payroll records and their supporting documentation within 10 days to all authorized* parties upon written request and be subject to penalties for non-compliance as detailed in labor code section 1776. *Authorized parties include the employee, COV and the DIR. The public may not be given access to the records by the contractor. A request by the public shall be made through the COV or the DIR Department of Labor Standards enforcement (DLSE).
o Inform the COV of the location of the payroll records kept in compliance with labor code section 1776(g) and notify the COV within 5 working days of any change in their location.

The prime contractor is responsible for Labor Code violations of its subcontractor(s) in accordance with CLC section 1775 – payment of prevailing wages. As required by 1775(c) the Division of labor Standards Enforcement will notify the contractor on a public works project within 15 days of the receipt of a prevailing wage complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages. If a subcontractor on a public works project fails to pay a worker the general prevailing rate of per diem wages, the prime contractor of the project is not liable for any penalties under section 1775 unless the prime contractor had knowledge of that failure or unless the prime contractor fails to comply with all of the following requirements.
❑ As set forth in CLC section 1775(b)(1), any contract executed between a contractor and a subcontractor for the performance of work on a City of Visalia public works project requiring payment of prevailing wages shall include a copy of the provisions of Labor Code sections 1771, 1776, 1777.5, 1813, and 1815. These labor code sections must be included within or as attachments to the contract.
❑ As set forth in CLC section 1776, the subcontractor shall maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with 487
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labor code sections 1771, 1776, 1811 and 1815, signed under penalty of perjury.
❑ As set forth in CLC section 1775(b)(2), the contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.
❑ As set forth in CLC section 1775(b)(3), upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. ❑ As set forth in CLC section 1775(b)(4), prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. Prior to the release of retention to the contractor, the COV will require a copy of the affidavit(s) completed by each listed subcontractor.

If the COV has not retained sufficient money under the contract to satisfy a civil wage and penalty assessment issued by the Labor Commissioner against a subcontractor, the contractor shall withhold sufficient money due to the subcontractor in accordance with CLC section 1727. Money withheld will be transferred to the awarding body and shall not be disbursed until receipt of a final order by the Labor Commissioner that is no longer subject to judicial review.

If all contract payments have been made to the contractor and subcontractor, under CLC section 1743, the contractor and subcontractor are jointly liable for all amounts due under a final order or judgment to satisfy a civil wage penalty assessment. The Labor Commissioner must first exhaust all reasonable remedies to collect the amount due from the subcontractor before pursuing the claim against the contractor.

Apprenticeship Requirements
❑ In accordance with CLC section 1777.5(e), prior to commencing work on a contract for public work; every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
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❑ Only apprentices, as defined in CLC section 3077, in training under apprenticeship standards approved by the Division of Apprenticeship Standards (DAP) and party to written apprentice agreements under CLC section 3070-3098 may be employed at the apprentice wage rate on public works.
❑ Unless exempted under CLC section 1777.5(j), a contractor working on a public works contract of $30,000 or more shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards (CLC 1777.5(n)). Unless an exemption applies, in no event shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.

The prime contractor is responsible for compliance with the requirements of CLC section 1777.5 for all apprenticeable occupations employed on the contract. As stated in 1777.5 (o), the apprenticeship requirement does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contract is less than thirty thousand dollars ($30,000). As stated in section 1777.7(e), the prime contractor will not be liable for any penalties assessed for violations of section 1777.5 if they have complied with the following requirements:
❑ 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 section 1771, 1775, 1776, 1777.5, 1813 and 1815.
❑ The contractor shall continually monitor a subcontractors use of apprentices required to be employed on the public works project pursuant to subdivision (d) of section 1777.5, including, but not limited to, periodic review of the certified payroll of the subcontractor.
❑ Upon becoming aware of a failure of the subcontractor to employ the required number of apprentices, the contractor shall take corrective action, including , but not limited to, retaining funds due to the subcontractor for work performed on the public works project until the failure is corrected.
❑ Prior to making a final payment to the subcontractor for work performed on the public works project, the contractor shall obtain a declaration signed under penalty of perjury from the subcontractor that the subcontractor has employed the required number of apprentices on the public works project.
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Other Requirements
❑ The prime contractor is required to provide a signed affidavit declaring their compliance with California Labor Code sections 1771 (prevailing wage) and 1777.5 (apprenticeship) for all workers employed on the contract before final payment will be made on the contract by the COV.

This affidavit must be provided to the COV prior to the release of retention to the contractor.
❑ As set forth in CLC section 1735, a contractor must not discriminate in the employment of persons on public work contracts on any basis listed in government code sections 12940, 12926, or 12926.1.
❑ As set forth in CLC 1777.6, an employer or labor union shall not refuse to accept otherwise qualified employees as registered apprentices on any public works on any basis listed in government codes sections 12940, 12926, or 12926.1 except as provided in Labor Code section 3077 and Government Code section 12940.

Project Closeout and Recordkeeping
The contractor and each subcontractor shall maintain all project records required under CLC for public works projects and preserve them for a minimum 3-year period to begin on the date a Notice of Completion is filed for the project. Please refer to the retention period required for any grant or specialized project funding.

Some funding sources require an extended time period for records retention. 490
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Appendix A – Labor Code section 96.7

LABOR CODE
SECTION 96.7

96.7. The Labor Commissioner, after
investigation and upon determination that
wages or monetary benefits are due and
unpaid to any worker in the State of
California, may collect such wages or benefits
on behalf of the worker without assignment of
such wages or benefits to the commissioner.
(a) The Labor Commissioner shall act as
trustee of all such collected unpaid wages or
benefits, and shall deposit such collected
moneys in the Industrial Relations Unpaid
Wage Fund.
(b) The Labor Commissioner shall make a
diligent search to locate any worker for whom
the Labor Commissioner has collected unpaid
wages or benefits.
(c) All wages or benefits collected under this
section shall be remitted to the worker, his
lawful representative, or to any trust or
custodial fund established under a plan to
provide health and welfare, pension, vacation,
retirement, or similar benefits from the
Industrial Relations Unpaid Wage Fund.
(d) Any unpaid wages or benefits collected
by the Labor Commissioner pursuant to this
section shall be retained in the Industrial
Relations Unpaid Wage Fund until remitted
pursuant to subdivision (c), or until deposited
in the General Fund.
(e) The Controller shall, at the end of each
fiscal year, transfer to the General Fund the
unencumbered balance, less six months of
expenditures as determined by the Director of
Finance, in the Industrial Relations Unpaid
Wage Fund.
(f) All wages or benefits collected under this
section which cannot be remitted from the
Industrial Relations Unpaid Wage Fund
pursuant to subdivision (c) because money
has been transmitted to the General Fund
shall be paid out of the General Fund from
funds appropriated for that purpose.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
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Appendix B – Labor Code Section 1720-1743

LABOR CODE
SECTION 1720-1743
1720. (a) As used in this chapter, "public
works" means:
(1) Construction, alteration, demolition,
installation, or repair work done under
contract and paid for in whole or in part out of
public funds, except work done directly by
any public utility company pursuant to order
of the Public Utilities Commission or other
public authority. For purposes of this
paragraph, "construction" includes work
performed during the design and
preconstruction phases of construction,
including, but not limited to, inspection and
land surveying work, and work performed
during the postconstruction phases of
construction, including, but not limited to, all
cleanup work at the jobsite. For purposes of
this paragraph, "installation" includes, but is
not limited to, the assembly and disassembly
of freestanding and affixed modular office
systems.
(2) Work done for irrigation, utility,
reclamation, and improvement districts, and
other districts of this type. "Public work" does
not include the operation of the irrigation or
drainage system of any irrigation or
reclamation district, except as used in Section
1778 relating to retaining wages.
(3) Street, sewer, or other improvement
work done under the direction and
supervision or by the authority of any officer
or public body of the state, or of any political
subdivision or district thereof, whether the
political subdivision or district operates
under a freeholder's charter or not.
(4) The laying of carpet done under a
building lease-maintenance contract and paid
for out of public funds.
(5) The laying of carpet in a public building
done under contract and paid for in whole or
in part out of public funds.
(6) Public transportation demonstration
projects authorized pursuant to Section 143
of the Streets and Highways Code.
(7) (A) Infrastructure project grants from
the California Advanced Services Fund
pursuant to Section 281 of the Public Utilities
Code.
(B) For purposes of this paragraph, the
Public Utilities Commission is not the
awarding body or the body awarding the
contract, as defined in Section 1722.
(b) For purposes of this section, "paid for in
whole or in part out of public funds" means all
of the following:
(1) The payment of money or the equivalent
of money by the state or political subdivision
directly to or on behalf of the public works
contractor, subcontractor, or developer.
(2) Performance of construction work by the
state or political subdivision in execution of
the project.
(3) Transfer by the state or political
subdivision of an asset of value for less than
fair market price.
(4) Fees, costs, rents, insurance or bond
premiums, loans, interest rates, or other
obligations that would normally be required
in the execution of the contract, that are paid,
reduced, charged at less than fair market
value, waived, or forgiven by the state or
political subdivision.
(5) Money loaned by the state or political
subdivision that is to be repaid on a
contingent basis.
(6) Credits that are applied by the state or
political subdivision against repayment
obligations to the state or political
subdivision.
(c) Notwithstanding subdivision (b):
(1) Private residential projects built on
private property are not subject to the
requirements of this chapter unless the
projects are built pursuant to an agreement
with a state agency, redevelopment agency, or
local public housing authority.
(2) If the state or a political subdivision
requires a private developer to perform
construction, alteration, demolition,
installation, or repair work on a public work
of improvement as a condition of regulatory
approval of an otherwise private development
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project, and the state or political subdivision
contributes no more money, or the equivalent
of money, to the overall project than is
required to perform this public improvement
work, and the state or political subdivision
maintains no proprietary interest in the
overall project, then only the public
improvement work shall thereby become
subject to this chapter.
(3) If the state or a political subdivision
reimburses a private developer for costs that
would normally be borne by the public, or
provides directly or indirectly a public
subsidy to a private development project that
is de minimis in the context of the project, an
otherwise private development project shall
not thereby become subject to the
requirements of this chapter.
(4) The construction or rehabilitation of
affordable housing units for low- or
moderate-income persons pursuant to
paragraph (5) or (7) of subdivision (e) of
Section 33334.2 of the Health and Safety Code
that are paid for solely with moneys from the
Low and Moderate Income Housing Fund
established pursuant to Section 33334.3 of
the Health and Safety Code or that are paid for
by a combination of private funds and funds
available pursuant to Section 33334.2 or
33334.3 of the Health and Safety Code do not
constitute a project that is paid for in whole or
in part out of public funds.
(5) Unless otherwise required by a public
funding program, the construction or
rehabilitation of privately owned residential
projects is not subject to the requirements of
this chapter if one or more of the following
conditions are met:
(A) The project is a self-help housing project
in which no fewer than 500 hours of
construction work associated with the homes
are to be performed by the home buyers.
(B) The project consists of rehabilitation or
expansion work associated with a facility
operated on a not-for-profit basis as
temporary or transitional housing for
homeless persons with a total project cost of
less than twenty-five thousand dollars
($25,000).
(C) Assistance is provided to a household as
either mortgage assistance, downpayment
assistance, or for the rehabilitation of a singlefamily home. (D) The project consists of new construction,
expansion, or rehabilitation work associated
with a facility developed by a nonprofit
organization to be operated on a not-forprofit basis to provide emergency or transitional shelter and ancillary services and
assistance to homeless adults and children.

The nonprofit organization operating the
project shall provide, at no profit, not less
than 50 percent of the total project cost from
nonpublic sources, excluding real property
that is transferred or leased. Total project cost
includes the value of donated labor, materials,
architectural, and engineering services.
(E) The public participation in the project
that would otherwise meet the criteria of
subdivision (b) is public funding in the form of
below-market interest rate loans for a project
in which occupancy of at least 40 percent of
the units is restricted for at least 20 years, by
deed or regulatory agreement, to individuals
or families earning no more than 80 percent
of the area median income.
(d) Notwithstanding any provision of this
section to the contrary, the following projects
shall not, solely by reason of this section, be
subject to the requirements of this chapter:
(1) Qualified residential rental projects, as
defined by Section 142(d) of the Internal
Revenue Code, financed in whole or in part
through the issuance of bonds that receive
allocation of a portion of the state ceiling
pursuant to Chapter 11.8 (commencing with
Section 8869.80) of Division 1 of Title 2 of the
Government Code on or before December 31,
2003.
(2) Single-family residential projects
financed in whole or in part through the
issuance of qualified mortgage revenue bonds
or qualified veterans' mortgage bonds, as
defined by Section 143 of the Internal
Revenue Code, or with mortgage credit
certificates under a Qualified Mortgage Credit
Certificate Program, as defined by Section 25
of the Internal Revenue Code, that receive
allocation of a portion of the state ceiling
pursuant to Chapter 11.8 (commencing with
Section 8869.80) of Division 1 of Title 2 of the
Government Code on or before December 31,
2003.
(3) Low-income housing projects that are
allocated federal or state low-income housing
tax credits pursuant to Section 42 of the
Internal Revenue Code, Chapter 3.6
(commencing with Section 50199.4) of Part 1
of Division 31 of the Health and Safety Code,
or Section 12206, 17058, or 23610.5 of the
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Revenue and Taxation Code, on or before
December 31, 2003.
(e) If a statute, other than this section, or a
regulation, other than a regulation adopted
pursuant to this section, or an ordinance or a
contract applies this chapter to a project, the
exclusions set forth in subdivision (d) do not
apply to that project.
(f) For purposes of this section, references to
the Internal Revenue Code mean the Internal
Revenue Code of 1986, as amended, and
include the corresponding predecessor
sections of the Internal Revenue Code of 1954,
as amended.
(g) The amendments made to this section by
either Chapter 938 of the Statutes of 2001 or
the act adding this subdivision shall not be
construed to preempt local ordinances
requiring the payment of prevailing wages on
housing projects.
1720.2. For the limited purposes of Article 2
(commencing with Section 1770) of this
chapter, "public works" also means any
construction work done under private
contract when all of the following conditions
exist:
(a) The construction contract is between
private persons.
(b) The property subject to the construction
contract is privately owned, but upon
completion of the construction work, more
than 50 percent of the assignable square feet
of the property is leased to
the state or a political subdivision for its use.
(c) Either of the following conditions exist:
(1) The lease agreement between the lessor
and the state or political subdivision, as
lessee, was entered into prior to the
construction contract.
(2) The construction work is performed
according to plans, specifications, or criteria
furnished by the state or political subdivision,
and the lease agreement between the lessor
and the state or political subdivision, as
lessee, is entered into during, or upon
completion of, the construction work.
1720.3. (a) For the limited purposes of Article
2 (commencing with Section 1770), "public
works" also means the hauling of refuse from
a public works site to an outside disposal
location, with respect to contracts involving
any state agency, including the California
State University and the University of
California, or any political subdivision of the
state.
(b) For purposes of this section, the "hauling
of refuse" includes, but is not limited to,
hauling soil, sand, gravel, rocks, concrete,
asphalt, excavation materials, and
construction debris. The "hauling of refuse"
shall not include the hauling of recyclable
metals such as copper, steel, and aluminum
that have been separated from other
materials at the jobsite prior to transportation
and that are to be sold at fair market value to
a bona fide purchaser.
1720.4. (a) This chapter shall not apply to any
of the following work:
(1) Any work performed by a volunteer. For
purposes of this section, "volunteer" means an
individual who performs work for civic,
charitable, or humanitarian reasons for a
public agency or corporation qualified under
Section 501(c)(3) of the Internal Revenue
Code as a tax-exempt organization, without
promise, expectation, or receipt of any
compensation for work performed.
(A) An individual shall be considered a
volunteer only when his or her services are
offered freely and without pressure and
coercion, direct or implied, from an employer.
(B) An individual may receive reasonable
meals, lodging, transportation, and incidental
expenses or nominal nonmonetary awards
without losing volunteer status if, in the entire
context of the situation, those benefits and
payments are not a substitute form of
compensation for work performed.
(C) An individual shall not be considered a
volunteer if the person is otherwise employed
for compensation at any time (i) in the
construction, alteration, demolition,
installation, repair, or maintenance work on
the same project, or (ii) by a contractor, other
than a corporation qualified under Section
501(c)(3) of the Internal Revenue Code as a
tax-exempt organization, that receives
payment to perform construction, alteration,
demolition, installation, repair, or
maintenance work on the same project.
(2) Any work performed by a volunteer
coordinator. For purposes of this section,
"volunteer coordinator" means an individual
paid by a corporation qualified under Section
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501(c)(3) of the Internal Revenue Code as a
tax-exempt organization, to oversee or
supervise volunteers. An individual may be
considered a volunteer coordinator even if the
individual performs some nonsupervisory
work on a project alongside the volunteers, so
long as the individual's primary responsibility
on the project is to oversee or supervise the
volunteers rather than to perform
nonsupervisory work.
(3) Any work performed by the California
Conservation Corps or by Community
Conservation Corps certified by the California
Conservation Corps pursuant to Section
14507.5 of the Public Resources Code.
(b) This section shall apply retroactively to
otherwise covered work concluded on or after
January 1, 2002, to the extent permitted by
law.
(c) This section shall remain in effect only
until January 1, 2017, and as of that date is
repealed, unless a later enacted statute, which
is enacted before January 1, 2017, deletes or
extends that date.
1720.6. For the limited purposes of Article 2
(commencing with Section 1770) of this
chapter, "public work" also means any
construction, alteration, demolition,
installation, or repair work done under
private contract when the following
conditions exist:
(a) The work is performed in connection
with the construction or maintenance of
renewable energy generating capacity or
energy efficiency improvements.
(b) The work is performed on the property
of the state or a political subdivision of the
state.
(c) Either of the following conditions exists:
(1) More than 50 percent of the energy
generated is purchased or will be purchased
by the state or a political subdivision of the
state.
(2) The energy efficiency improvements are
primarily intended to reduce energy costs
that would otherwise be incurred by the state
or a political subdivision of the state.
1721. "Political subdivision" includes any
county, city, district, public housing authority,
or public agency of the state, and assessment
or improvement districts.
1722. "Awarding body" or "body awarding
the contract" means department, board,
authority, officer or agent awarding a contract
for public work.
1722.1. For the purposes of this chapter,
"contractor" and "subcontractor" include a
contractor, subcontractor, licensee, officer,
agent, or representative thereof, acting in that
capacity, when working on public works
pursuant to this article and Article 2
(commencing with Section 1770).
1723. "Worker" includes laborer, worker, or
mechanic.
1724. "Locality in which public work is
performed" means the county in which the
public work is done in cases in which the
contract is awarded by the State, and means
the limits of the political subdivision on
whose behalf the contract is awarded in other
cases.
1725. "Alien" means any person who is not a
born or fully naturalized citizen of the United
States.
1725.5. A contractor shall be registered
pursuant to this section to be qualified to bid
on, be listed in a bid proposal, subject to the
requirements of Section 4104 of the Public
Contract Code, or engage in the performance
of any public work contract that is subject to
the requirements of this chapter. For the
purposes of this section, "contractor" includes
a subcontractor as defined by Section 1722.1.
(a) To qualify for registration under this
section, a contractor shall do all of the
following:
(1) Beginning July 1, 2014, register with the
Department of Industrial Relations in the
manner prescribed by the department and
pay an initial nonrefundable application fee of
three hundred dollars ($300) to qualify for
registration under this section and an annual
renewal fee on or before July 1 of each year
thereafter. The annual renewal fee shall be in
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a uniform amount set by the Director of
Industrial Relations, and the initial
registration and renewal fees may be adjusted
no more than annually by the director to
support the costs specified in Section 1771.3.
(2) Provide evidence, disclosures, or
releases as are necessary to establish all of the
following:
(A) Workers' Compensation coverage that
meets the requirements of Division 4
(commencing with Section 3200) and includes
sufficient coverage for any worker whom the
contractor employs to perform work that is
subject to prevailing wage requirements other
than a contractor who is separately registered
under this section. Coverage may be
evidenced by a current and valid certificate of
workers' compensation Insurance or
certification of self-insurance required under
Section 7125 of the Business and Professions
Code.
(B) If applicable, the contractor is licensed in
accordance with Chapter 9 (commencing with
Section 7000) of the Business and Professions
Code.
(C) The contractor does not have any
delinquent liability to an employee or the
state for any assessment of back wages or
related damages, interest, fines, or penalties
pursuant to any final judgment, order, or
determination by a court or any federal, state,
or local administrative agency, including a
confirmed arbitration award. However, for
purposes of this paragraph, the contractor
shall not be disqualified for any judgment,
order, or determination that is under appeal,
provided that the contractor has secured the
payment of any amount eventually found due
through a bond or other appropriate means.
(D) The contractor is not currently debarred
under Section 1777.1 or under any other
federal or state law providing for the
debarment of contractors from public works.
(E) The contractor has not bid on a public
works contract, been listed in a bid proposal,
or engaged in the performance of a contract
for public works without being lawfully
registered in accordance with this section,
within the preceding 12 months or since the
effective date of the requirements set forth in
subdivision (e), whichever is earlier. If a
contractor is found to be in violation of the
requirements of this paragraph, the period of
disqualification shall be waived if both of the
following are true:
(i) The contractor has not previously been
found to be in violation of the requirements of
this paragraph within the preceding 12
months.
(ii) The contractor pays an additional
nonrefundable penalty registration fee of two
thousand dollars ($2,000).
(b) Fees received pursuant to this section
shall be deposited in the State Public Works
Enforcement Fund established by Section
1771.3 and shall be used only for the
purposes specified in that section.
(c) A contractor who fails to pay the renewal
fee required under paragraph (1) of
subdivision (a) on or before the expiration of
any prior period of registration shall be
prohibited from bidding on or engaging in the
performance of any contract for public work
until once again registered pursuant to this
section. If the failure to pay the renewal fee
was inadvertent, the contractor may renew its
registration retroactively by paying an
additional nonrefundable penalty renewal fee
equal to the amount of the renewal fee within
90 days of the due date of the renewal fee.
(d) If, after a body awarding a contract
accepts the contractor's bid or awards the
contract, the work covered by the bid or
contract is determined to be a public work to
which Section 1771 applies, either as the
result of a determination by the director
pursuant to Section 1773.5 or a court
decision, the requirements of this section shall
not apply, subject to the following
requirements:
(1) The body that awarded the contract
failed, in the bid specification or in the
contract documents, to identify as a public
work that portion of the work that the
determination or decision subsequently
classifies as a public work.
(2) Within 20 days following service of
notice on the awarding body of a
determination by the Director of Industrial
Relations pursuant to Section 1773.5 or a
decision by a court that the contract was for
public work as defined in this chapter, the
contractor and any subcontractors are
registered under this section or are replaced
by a contractor or subcontractors who are
registered under this section.
(3) The requirements of this section shall
apply prospectively only to any subsequent
bid, bid proposal, contract, or work performed
after the awarding body is served with notice
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of the determination or decision referred to in
paragraph (2) of this subdivision.
(e) The requirements of this section shall
apply to any bid proposal submitted on or
after March 1, 2015, and any contract for
public work, as defined in this chapter,
entered into on or after April 1, 2015.
1726. (a) The body awarding the contract for
public work shall take cognizance of
violations of this chapter committed in the
course of the execution of the contract, and
shall promptly report any suspected
violations to the Labor Commissioner.
(b) If the awarding body determines as a
result of its own investigation that there has
been a violation of this chapter and withholds
contract payments, the procedures in Section
1771.6 shall be followed.
(c) A contractor may bring an action in a
court of competent jurisdiction to recover
from an awarding body the difference
between the wages - paid to an employee and
the wages that were required to be paid to an
employee under this chapter, any penalties
required to be paid under this chapter, and
costs and attorney's fees related to this action,
if either of the following is true:
(1) The awarding body previously
affirmatively represented to the contractor in
writing, in the call for bids, or otherwise, that
the work to be covered by the bid or contract
was not a "public work," as defined in this
chapter.
(2) The awarding body received actual
written notice from the Department of
Industrial Relations that the work to be
covered by the bid or contract is a "public
work," as defined in this chapter, and failed to
disclose that information to the contractor
before the bid opening or awarding of the
contract.
1727. (a) Before making payments to the
contractor of money due under a contract for
public work, the awarding body shall
withhold and retain therefrom all amounts
required to satisfy any civil wage and penalty
assessment issued by the Labor
Commissioner under this chapter. The
amounts required to satisfy a civil wage and
penalty assessment shall not be disbursed by
the awarding body until receipt of a final
order that is no longer subject to judicial
review.
(b) If the awarding body has not retained
sufficient money under the contract to satisfy
a civil wage and penalty assessment based on
a subcontractor's violations, the contractor
shall, upon the request of the Labor
Commissioner, withhold sufficient money due
the subcontractor under the contract to
satisfy the assessment and transfer the money
to the awarding body. These amounts shall
not be disbursed by the awarding body until
receipt of a final order that is no longer
subject to judicial review.
1728. In cases of contracts with assessment
or improvement districts where full payment
is made in the form of a single warrant, or
other evidence of full payment, after
completion and acceptance of the work, the
awarding body shall accept from the
contractor in cash a sum equal to, and in lieu
of, any amount required to be withheld,
retained, or forfeited under the provisions of
this section, and said awarding body shall
then release the final warrant or payment in
full.
1729. It shall be lawful for any contractor to
withhold from any subcontractor under him
sufficient sums to cover any penalties
withheld from him by the awarding body on
account of the subcontractor's failure to
comply with the terms of this chapter, and if
payment has already been made to the
subcontractor the contractor may recover
from him the amount of the penalty or
forfeiture in a suit at law.
1730. The Director of Industrial Relations
shall post a list of every California code
section and the language of those sections
that relate to the prevailing rate of per diem
wage requirements for workers employed on
a public work project on the Internet Web site
of the Department of Industrial Relations on
or before June 1, 2013, and shall update that
list each February 1 thereafter.
1734. Any court collecting any fines or
penalties under the criminal provisions of this
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chapter or any of the labor laws pertaining to
public works shall as soon as practicable after
the receipt thereof deposit same with the
county treasurer of the county in which such
court is situated. Amounts so deposited shall
be paid at least once a month by warrant of
the county auditor drawn upon requisition of
the judge or clerk of said court, to the State
Treasurer for deposit in the General Fund.
1735. A contractor shall not discriminate in
the employment of persons upon public
works on any basis listed in subdivision (a) of
Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and
12926.1 of the Government Code, except as
otherwise provided in Section 12940 of the
Government Code. Every contractor for public
works who violates this section is subject to
all the penalties imposed for a violation of this
chapter.
1736. During any investigation conducted
under this part, the Division of Labor
Standards Enforcement shall keep
confidential the name of any employee who
reports a violation of this chapter and any
other information that may identify the
employee.
1740. Notwithstanding any other provision of
this chapter or any other law of this State,
except limitations imposed by the
Constitution, the legislative body of a political
subdivision which has received or is to
receive a loan or grant of funds from the
Federal Government or a federal department
or agency for public works of that political
subdivision, may provide in its call for bids in
connection with such public works that all bid
specifications and contracts and other
procedures in connection with bids or
contracts shall be subject to modification to
comply with revisions in federal minimum
wage schedules without the necessity of
republication or duplication of other formal
statutory requirements.
1741. (a) If the Labor Commissioner or his or
her designee determines after an
investigation that there has been a violation of
this chapter, the Labor Commissioner shall
with reasonable promptness issue a civil wage
and penalty assessment to the contractor or
subcontractor, or both. The assessment shall
be in writing, shall describe the nature of the
violation and the amount of wages, penalties,
and forfeitures due, and shall include the basis
for the assessment. The assessment shall be
served not later than 18 months after the
filing of a valid notice of completion in the
office of the county recorder in each county in
which the public work or some part thereof
was performed, or not later than 18 months
after acceptance of the public work,
whichever occurs last. Service of the
assessment shall be completed pursuant to
Section 1013 of the Code of Civil Procedure by
first-class and certified mail to the contractor,
subcontractor, and awarding body. The
assessment shall advise the contractor and
subcontractor of the procedure for obtaining
review of the assessment. The Labor
Commissioner shall, to the extent practicable,
ascertain the identity of any bonding company
issuing a bond that secures the payment of
wages covered by the assessment and any
surety on a bond, and shall serve a copy of the
assessment by certified mail to the bonding
company or surety at the same time service is
made to the contractor, subcontractor, and
awarding body. However, no bonding
company or surety shall be relieved of its
responsibilities because it failed to receive
notice from the Labor Commissioner.
(b) Interest shall accrue on all due and
unpaid wages at the rate described in
subdivision (b) of Section 3289 of the Civil
Code. The interest shall accrue from the date
that the wages were due and payable, as
provided in Part 7 (commencing with Section
1720) of Division 2, until the wages are paid.
(c) (1) The Labor Commissioner shall
maintain a public list of the names of each
contractor and subcontractor who has been
found to have committed a willful violation of
Section 1775 or to whom a final order, which
is no longer subject to judicial review, has
been issued.
(2) The list shall include the date of each
assessment, the amount of wages and
penalties assessed, and the amount collected.
(3) The list shall be updated at least
quarterly, and the contractor's or
subcontractor's name shall remain on that list
until the assessment is satisfied, or for a
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period of three years beginning from the date
of the issuance of the assessment, whichever
is later.
1741.1. (a) The period for service of
assessments shall be tolled for the period of
time required by the Director of Industrial
Relations to determine whether a project is a
public work, including a determination on
administrative appeal, if applicable, pursuant
to subdivisions (b) and (c) of Section 1773.5.

The period for service of assessments shall
also be tolled for the period of time that a
contractor or subcontractor fails to provide in
a timely manner certified payroll records
pursuant to a request from the Labor
Commissioner or a joint labor-management
committee under Section 1776, or an
approved labor compliance program under
Section 1771.5 or 1771.7.
(b) (1) The body awarding the contract for
public work shall furnish, within 10 days after
receipt of a written request from the Labor
Commissioner, a copy of the valid notice of
completion for the public work filed in the
office of the county recorder, or a document
evidencing the awarding body's acceptance of
the public work on a particular date,
whichever occurs later, by first-class mail
addressed to the office of the Labor
Commissioner that is listed on the written
request. If, at the time of receipt of the Labor
Commissioner's written request, a valid notice
of completion has not been filed by the
awarding body in the office of the county
recorder and there is no document evidencing
the awarding body's acceptance of the public
work on a particular date, the awarding body
shall so notify the office of the Labor
Commissioner that is listed on the written
request. Thereafter, the awarding body shall
furnish copies of the applicable document
within 10 days after filing a valid notice of
completion with the county recorder's office,
or within 10 days of the awarding body's
acceptance of the public work on a particular
date.
(2) If the awarding body fails to timely
furnish the Labor Commissioner with the
documents identified in paragraph (1), the
period for service of assessments under
Section 1741 shall be tolled until the Labor
Commissioner's actual receipt of the valid
notice of completion for the public work or a
document evidencing the awarding body's
acceptance of the public work on a particular
date.
(c) The tolling provisions in this section shall
also apply to the period of time for
commencing an action brought by a joint
labor-management committee pursuant to
Section 1771.2.
1742. (a) An affected contractor or
subcontractor may obtain review of a civil
wage and penalty assessment under this
chapter by transmitting a written request to
the office of the Labor Commissioner that
appears on the assessment within 60 days
after service of the assessment. If no hearing
is requested within 60 days after service of
the assessment, the assessment shall become
final.
(b) 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 subdivision (b) of Section 11502
of the Government Code. 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 Labor Commissioner at
the hearing within 20 days of the receipt of
the written request for a hearing. Any
evidence obtained by the Labor Commissioner
subsequent to the 20-day cutoff shall be
promptly disclosed to the contractor or
subcontractor. The contractor or
subcontractor shall have the burden of
proving that the basis for the civil wage and
penalty assessment is incorrect. The
assessment 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 of the director
shall consist of a notice of findings, findings,
and an order. This decision shall be served on
all parties and the awarding body pursuant to
Section 1013 of the Code of Civil Procedure by
first-class mail at the last known address of
the party on file with the Labor
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Commissioner. Within 15 days of the issuance
of the decision, the director may reconsider or
modify the decision to correct an error, except
that a clerical error may be corrected at any
time. The director shall adopt regulations
setting forth procedures for hearings under
this subdivision.
(c) An affected contractor or subcontractor
may obtain review of the decision of the
director by filing a petition for a writ of
mandate to the appropriate superior court
pursuant to Section 1094.5 of the Code of Civil
Procedure 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.
(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.
(e) A judgment entered pursuant to this
section 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.
(f) An awarding body that has withheld
funds in response to a civil wage and penalty
assessment under this chapter shall, upon
receipt of a certified copy of a final order that
is no longer subject to judicial review,
promptly transmit the withheld funds, up to
the amount of the certified order, to the Labor
Commissioner.
(g) This section shall provide the exclusive
method for review of a civil wage and penalty
assessment by the Labor Commissioner under
this chapter or the decision of an awarding
body to withhold contract payments pursuant
to Section 1771.5.
1742.1. (a) After 60 days following the
service of a civil wage and penalty assessment
under Section 1741 or a notice of withholding
under subdivision (a) of Section 1771.6, the
affected contractor, subcontractor, and surety
on a bond or bonds issued to secure the
payment of wages covered by the assessment
or notice shall be liable for liquidated
damages in an amount equal to the wages, or
portion thereof, that still remain unpaid. If the
assessment or 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. Additionally, if the contractor or
subcontractor demonstrates to the
satisfaction of the director that he or she had
substantial grounds for appealing the
assessment or notice with respect to a portion
of the unpaid wages covered by the
assessment or notice, the director may
exercise his or her discretion to waive
payment of the liquidated damages with
respect to that portion of the unpaid wages.

Any liquidated damages shall be distributed
to the employee along with the unpaid wages.

Section 203.5 shall not apply to claims for
prevailing wages under this chapter.
(b) Notwithstanding subdivision (a), there
shall be no liability for liquidated damages if
the full amount of the assessment or notice,
including penalties, has been deposited with
the Department of Industrial Relations, within
60 days following service of the assessment or
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.
(c) The Labor Commissioner shall, upon
receipt of a request from the affected
contractor or subcontractor within 30 days
following the service of a civil wage and
penalty assessment under Section 1741,
afford the contractor or subcontractor the
opportunity to meet with the Labor
Commissioner or his or her designee to
attempt to settle a dispute regarding the
assessment without the need for formal
proceedings. The awarding body shall, upon
receipt of a request from the affected
contractor or subcontractor within 30 days
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following the service of a notice of
withholding under subdivision (a) of Section
1771.6, afford the contractor or subcontractor
the opportunity to meet with the designee of
the awarding body to attempt to settle a
dispute regarding the notice without the need
for formal proceedings. 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
administrative 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. The assessment or notice shall
advise the contractor or subcontractor of the
opportunity to request a settlement meeting.
(d) This section shall become operative on
January 1, 2007.
1743. (a) The contractor and subcontractor
shall be jointly and severally liable for all
amounts due pursuant to a final order under
this chapter or a judgment thereon. The Labor
Commissioner shall first exhaust all
reasonable remedies to collect the amount
due from the subcontractor before pursuing
the claim against the contractor.
(b) From the amount collected, 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.
(c) Wages for workers who cannot be
located shall be placed in the Industrial
Relations Unpaid Wage Fund and held in trust
for the workers pursuant to Section 96.7.

Penalties shall be paid into the General Fund.
(d) A final order under this chapter or a
judgment thereon shall be binding, with
respect to the amount found to be due, on a
bonding company issuing a bond that secures
the payment of wages and a surety on a bond.

The limitations period of any action on a
payment bond shall be tolled pending a final
order that is no longer subject to judicial
review.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
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35 Appendix C – CLC 1770-1784
Appendix C – Labor Code Section 1770-1784

LABOR CODE
SECTION 1770-1784
1770. The Director of the Department of
Industrial Relations shall determine the
general prevailing rate of per diem wages in
accordance with the standards set forth in
Section 1773, and the director's
determination in the matter shall be final
except as provided in Section 1773.4. Nothing
in this article, however, shall prohibit the
payment of more than the general prevailing
rate of wages to any workman employed on
public work. Nothing in this act shall permit
any overtime work in violation of Article 3 of
this chapter.
1771. Except for public works projects of one
thousand dollars ($1,000) or less, not less
than the general prevailing rate of per diem
wages for work of a similar character in the
locality in which the public work is
performed, and not less than the general
prevailing rate of per diem wages for holiday
and overtime work fixed as provided in this
chapter, shall be paid to all workers employed
on public works. This section is applicable
only to work performed under contract, and is
not applicable to work carried out by a public
agency with its own forces. This section is
applicable to contracts let for maintenance
work.
1771.1. (a) A contractor or subcontractor
shall not be qualified to bid on, be listed in a
bid proposal, subject to the requirements of
Section 4104 of the Public Contract Code, or
engage in the performance of any contract for
public work, as defined in this chapter, unless
currently registered and qualified to perform
public work pursuant to Section 1725.5. It is
not a violation of this section for an
unregistered contractor to submit a bid that is
authorized by Section 7029.1 of the Business
and Professions Code or by Section 10164 or
20103.5 of the Public Contract Code, provided
the contractor is registered to perform public
work pursuant to Section 1725.5 at the time
the contract is awarded.
(b) Notice of the requirement described in
subdivision (a) shall be included in all bid
invitations and public works contracts, and a
bid shall not be accepted nor any contract or
subcontract entered into without proof of the
contractor or subcontractor's current
registration to perform public work pursuant
to Section 1725.5.
(c) An inadvertent error in listing a
subcontractor who is not registered pursuant
to Section 1725.5 in a bid proposal shall not
be grounds for filing a bid protest or grounds
for considering the bid nonresponsive,
provided that any of the following apply:
(1) The subcontractor is registered prior to
the bid opening.
(2) Within 24 hours after the bid opening,
the subcontractor is registered and has paid
the penalty registration fee specified in
subparagraph (E) of paragraph (2) of
subdivision (a) of Section 1725.5.
(3) The subcontractor is replaced by another
registered subcontractor pursuant to Section
4107 of the Public Contract Code.
(d) Failure by a subcontractor to be
registered to perform public work as required
by subdivision (a) shall be grounds under
Section 4107 of the Public Contract Code for
the contractor, with the consent of the
awarding authority, to substitute a
subcontractor who is registered to perform
public work pursuant to Section 1725.5 in
place of the unregistered subcontractor.
(e) The department shall maintain on its
Internet Web site a list of contractors who are
currently registered to perform public work
pursuant to Section 1725.5.
(f) A contract entered into with any
contractor or subcontractor in violation of
subdivision (a) shall be subject to
cancellation, provided that a contract for
public work shall not be unlawful, void, or
voidable solely due to the failure of the
awarding body, contractor, or any
subcontractor to comply with the
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36 Appendix C – CLC 1770-1784
requirements of Section 1725.5 or this
section.
(g) This section shall apply to any bid
proposal submitted on or after March 1, 2015,
and any contract for public work entered into
on or after April 1, 2015.
1771.2. (a) A joint labor-management
committee established pursuant to the federal
Labor Management Cooperation Act of 1978
(29 U.S.C. Sec. 175a) may bring an action in
any court of competent jurisdiction against an
employer that fails to pay the prevailing wage
to its employees, as required by this article.

This action shall be commenced not later than
18 months after the filing of a valid notice of
completion in the office of the county
recorder in each county in which the public
work or some part thereof was performed, or
not later than 18 months after acceptance of
the public work, whichever occurs last.
(b) (1) In an action brought pursuant to this
section, the court shall award restitution to an
employee for unpaid wages, plus interest,
under Section 3289 of the Civil Code from the
date that the wages became due and payable,
and liquidated damages equal to the amount
of unpaid wages owed, and may impose civil
penalties, only against an employer that failed
to pay the prevailing wage to its employees, in
accordance with Section 1775, injunctive
relief, or any other appropriate form of
equitable relief. The court shall follow the
same standards and have the same discretion
in setting the amount of penalties as are
provided by subdivision (a) of Section 1775.

The court shall award a prevailing joint labormanagement committee its reasonable attorney's fees and costs incurred in
maintaining the action, including expert
witness fees.
(2) An action pursuant to this section shall
not be based on the employer's
misclassification of the craft of a worker in its
certified payroll records.
(3) Liquidated damages shall be awarded
only if the complaint alleges with specificity
the wages due and unpaid to the individual
workers, including how that amount was
calculated, and the defendant fails to pay the
wages, deposit that amount with the court to
be held in escrow, or provide proof to the
court of an adequate surety bond to cover the
wages, within 60 days of service of the
complaint. Liquidated damages shall be
awarded only on the wages found to be due
and unpaid. Additionally, if the defendant
demonstrates to the satisfaction of the court
that the defendant had substantial grounds
for contesting that a portion of the allegedly
unpaid wages were owed, the court may
exercise its discretion to waive the payment of
the liquidated damages with respect to that
portion of the unpaid wages.
(4) This subdivision does not limit any other
available remedies for a violation of this
chapter.
1771.3. (a) The State Public Works
Enforcement Fund is hereby created as a
special fund in the State Treasury to be
available upon appropriation of the
Legislature. All registration fees collected
pursuant to Section 1725.5 and any other
moneys as are designated by statute or order
shall be deposited in the fund for the purposes
specified in subdivision (b).
(b) Moneys in the State Public Works
Enforcement Fund shall be used only for the
following purposes:
(1) The reasonable costs of administering
the registration of contractors and
subcontractors to perform public work
pursuant to Section 1725.5.
(2) The costs and obligations associated
with the administration and enforcement of
the requirements of this chapter by the
Department of Industrial Relations.
(3) The monitoring and enforcement of any
requirement of this code by the Labor
Commissioner on a public works project or in
connection with the performance of public
work as defined pursuant to this chapter.
(c) The annual contractor registration
renewal fee specified in subdivision (a) of
Section 1725.5, and any adjusted application
or renewal fee, shall be set in amounts that
are sufficient to support the annual
appropriation approved by the Legislature for
the State Public Works Enforcement Fund and
not result in a fund balance greater than 25
percent of the appropriation. Any yearend
balance in the fund greater than 25 percent of
the appropriation shall be applied as a credit
when determining any fee adjustments for the
subsequent fiscal year. (d) To provide
adequate cashflow for the purposes specified
in subdivision (b), the Director of Finance,
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37 Appendix C – CLC 1770-1784
with the concurrence of the Secretary of the
Labor and Workforce Development Agency,
may approve a short-term loan each fiscal
year from the Labor and Workforce
Development Fund to the State Public Works
Enforcement Fund.
(1) The maximum amount of the annual
loan allowable may be up to, but shall not
exceed 50 percent of the appropriation
authority of the State Public Works
Enforcement Fund in the same year in which
the loan was made.
(2) For the purposes of this section, a "shortterm loan" is a transfer that is made subject to both of the following conditions:
(A) Any amount loaned is to be repaid in full
during the same fiscal year in which the loan
was made, except that repayment may be
delayed until a date not more than 30 days
after the date of enactment of the annual
Budget Act for the subsequent fiscal year.
(B) Loans shall be repaid whenever the
funds are needed to meet cash expenditure
needs in the loaning fund or account.
1771.4. (a) All of the following are applicable
to all public works projects that are otherwise
subject to the requirements of this chapter:
(1) The call for bids and contract documents
shall specify that the project is subject to
compliance monitoring and enforcement by
the Department of Industrial Relations.
(2) The awarding body shall post or require
the prime contractor to post job site notices,
as prescribed by regulation.
(3) Each contractor and subcontractor shall
furnish the records specified in Section 1776
directly to the Labor Commissioner, in the
following manner:
(A) At least monthly or more frequently if
specified in the contract with the awarding
body.
(B) In a format prescribed by the Labor
Commissioner.
(4) The department shall undertake those
activities it deems necessary to monitor and
enforce compliance with prevailing wage
requirements.
(b) The Labor Commissioner may exempt a
public works project from compliance with all
or part of the requirements of subdivision (a)
of this section if either of the following occurs:
(1) The awarding body has enforced an
approved labor compliance program, as
defined in Section 1771.5, on all public works
projects under its authority, except those
deemed exempt pursuant to subdivision (a) of
Section 1771.5, continuously since December
31, 2011.
(2) The awarding body has entered into a
collective bargaining agreement that binds all
contractors performing work on the project
and that includes a mechanism for resolving
disputes about the payment of wages.
(c) (1) The requirements of paragraph (1) of
subdivision (a) shall only apply to contracts
for public works projects awarded on or
after January 1, 2015.
(2) The requirements of paragraph (3) of
subdivision (a) shall only apply to the
following projects:
(A) Projects that were subject to a
requirement to furnish records to the
Compliance Monitoring Unit pursuant to
Section 16461 of Title 8 of the California Code
of Regulations, prior to the effective date
of this section.
(B) Projects for which the initial contract is
awarded on or after April 1, 2015.
(C) Any other ongoing project in which the
Labor Commissioner directs the contractors
or subcontractors on the project to furnish
records in accordance with paragraph (3) of
subdivision (a).
(D) All projects, whether new or ongoing, on
or after January 1, 2016.
1771.5. (a) Notwithstanding Section 1771, an
awarding body may choose not to require the
payment of the general prevailing rate of per
diem wages or the general prevailing rate of
per diem wages for holiday and overtime
work for any public works project of twentyfive thousand dollars ($25,000) or less when the project is for construction work, or for any
public works project of fifteen thousand
dollars ($15,000) or less when the project is
for alteration, demolition, repair, or
maintenance work, if the awarding body has
elected to initiate and has been approved by
the Director of Industrial Relations to enforce
a labor compliance program pursuant to
subdivision (b) for every public works project
under the authority of the awarding body.
(b) For purposes of this section, a labor
compliance program shall include, but not be
limited to, the following requirements:
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38 Appendix C – CLC 1770-1784
(1) All bid invitations and public works
contracts shall contain appropriate language
concerning the requirements of this chapter.
(2) A prejob conference shall be conducted
with the contractor and subcontractors to
discuss federal and state labor law
requirements applicable to the contract.
(3) Project contractors and subcontractors
shall maintain and furnish, at a designated
time, a certified copy of each weekly payroll
containing a statement of compliance signed
under penalty of perjury.
(4) The awarding body shall review, and, if
appropriate, audit payroll records to verify
compliance with this chapter.
(5) The awarding body shall withhold
contract payments when
payroll records are delinquent or inadequate.
(6) The awarding body shall withhold
contract payments equal to the amount of
underpayment and applicable penalties when,
after investigation, it is established that
underpayment has occurred.
(7) The awarding body shall comply with
any other prevailing wage monitoring and
enforcement activities that are required to be
conducted by labor compliance programs by
the Department of Industrial Relations.
(c) For purposes of this chapter, "labor
compliance program" means a labor
compliance program that is approved, as
specified in state regulations, by the Director
of Industrial Relations.
(d) For purposes of this chapter, the
Director of Industrial Relations may revoke
the approval of a labor compliance program in
the manner specified in state regulations.
1771.6. (a) Any awarding body that enforces
this chapter in accordance with Section 1726
or 1771.5 shall provide notice of the
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 Section 1013 of the
Code of Civil Procedure by first-class 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
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 a bond, if their
identities are known to the awarding body.
(b) The withholding of contract payments in
accordance with Section 1726 or 1771.5 shall
be reviewable under Section 1742 in the same
manner as if the notice of the withholding was
a civil penalty order of the Labor
Commissioner under this chapter. If review is
requested, the Labor Commissioner may
intervene to represent the awarding body.
(c) Pending a final order, or the expiration of
the time period for seeking review of the
notice of the withholding, the awarding body
shall not disburse any contract payments
withheld.
(d) 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.
(e) Wages for workers who cannot be
located shall be placed in the Industrial
Relations Unpaid Wage 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 1771.5.
1771.7. (a) (1) For contracts specified in
subdivision (f), an awarding body that
chooses to use funds derived from either the
Kindergarten-University Public Education
Facilities Bond Act of 2002 or the
Kindergarten-University Public Education
Facilities Bond Act of 2004 for a public works
project, shall initiate and enforce, or contract
with a third party to initiate and enforce, a
labor compliance program, as described in
subdivision (b) of Section 1771.5, with
respect to that public works project.
(2) If an awarding body described in
paragraph (1) chooses to contract with a third
party to initiate and enforce a labor
compliance program for a project described in
paragraph (1), that third party shall not
review the payroll records of its own
employees or the employees of its
subcontractors, and the awarding body or an
independent third party shall review these
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39 Appendix C – CLC 1770-1784
payroll records for purposes of the labor
compliance program.
(b) This section applies to public works that
commence on or after April 1, 2003. For
purposes of this subdivision, work performed
during the design and preconstruction phases
of construction, including, but not limited to,
inspection and land surveying work, does not
constitute the commencement of a public
work.
(c) (1) For purposes of this section, if any
campus of the California State University
chooses to use the funds described in
subdivision (a), then the "awarding body" is
the Chancellor of the California State
University. For purposes of this subdivision, if
the chancellor is required by subdivision (a)
to initiate and enforce, or to contract with a
third party to initiate and enforce, a labor
compliance program, then in addition to the
requirements described in subdivision (b) of
Section 1771.5, the Chancellor of the
California State University shall review the
payroll records on at least a monthly basis to
ensure the awarding body's compliance with
the labor compliance program.
(2) For purposes of this subdivision, if an
awarding body described in subdivision (a) is
the University of California or any campus of
that university, and that awarding body is
required by subdivision (a) to initiate and
enforce, or to contract with a third party to
initiate and enforce, a labor compliance
program, then in addition to the requirements
described in subdivision (b) of Section 1771.5,
the payroll records shall be reviewed on at
least a monthly basis to ensure the awarding
body's compliance with the labor compliance
program.
(d) (1) An awarding body described in
subdivision (a) shall make a written finding
that the awarding body has initiated and
enforced, or has contracted with a third party
to initiate and enforce, the labor compliance
program described in subdivision (a).
(2) (A) If an awarding body described in
subdivision (a) is a school district, the
governing body of that district shall transmit
to the State Allocation Board, in the manner
determined by that board, a copy of the
finding described in paragraph (1).
(B) The State Allocation Board shall not
release the funds described in subdivision (a)
to an awarding body that is a school district
until the State Allocation Board has received
the written finding described in paragraph
(1).
(C) If the State Allocation Board conducts a
postaward audit procedure with respect to an
award of the funds described in subdivision
(a) to an awarding body that is a school
district, the State Allocation Board shall verify,
in the manner determined by that board, that
the school district has complied with the
requirements of this subdivision.
(3) If an awarding body described in
subdivision (a) is a community college
district, the Chancellor of the California State
University, or the office of the President of the
University of California or any campus of the
University of California, that awarding body
shall transmit, in the manner determined by
the Director of Industrial Relations, a copy of
the finding described in paragraph (1) to the
director of that department, or the director of
any successor agency that is responsible for
the oversight of employee wage and employee
work hours laws.
(e) Because the reasonable costs directly
related to monitoring and enforcing
compliance with the prevailing wage
requirements are necessary oversight
activities, integral to the cost of construction
of the public works projects, notwithstanding
Section 17070.63 of the Education Code, the
grant amounts as described in Chapter 12.5
(commencing with Section 17070.10) of Part
10 of Division 1 of Title 1 of the Education
Code for the costs of a new construction or
modernization project shall include the state's
share of the reasonable and directly related
costs of the labor compliance program used to
monitor and enforce compliance with
prevailing wage requirements.
(f) This section shall only apply to contracts
awarded prior to January 1, 2012.
1772. Workers employed by contractors or
subcontractors in the execution of any
contract for public work are deemed to be
employed upon public work.
1773. The body awarding any contract for
public work, or otherwise undertaking any
public work, shall obtain the general
prevailing rate of per diem wages and the
general prevailing rate for holiday and
overtime work in the locality in which the
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40 Appendix C – CLC 1770-1784
public work is to be performed for each craft,
classification, or type of worker needed to
execute the contract from the Director of
Industrial Relations. The holidays upon which
those rates shall be paid need not be specified
by the awarding body, but shall be all holidays
recognized in the applicable collective
bargaining agreement. If the prevailing rate is
not based on a collectively bargained rate, the
holidays upon which the prevailing rate shall
be paid shall be as provided in Section 6700 of
the Government Code. In determining the
rates, the Director of Industrial Relations shall
ascertain and consider the applicable wage
rates established by collective bargaining
agreements and the rates that may have been
predetermined for federal public works,
within the locality and in the nearest labor
market area. Where the rates do not
constitute the rates actually prevailing in the
locality, the director shall obtain and consider
further data from the labor organizations and
employers or employer associations
concerned, including the recognized collective
bargaining representatives for the particular
craft, classification, or type of work involved.

The rate fixed for each craft, classification, or
type of work shall be not less than the
prevailing rate paid in the craft, classification,
or type of work. If the director determines
that the rate of prevailing wage for any craft,
classification, or type of worker is the rate
established by a collective bargaining
agreement, the director may adopt that rate
by reference as provided for in the collective
bargaining agreement and that determination
shall be effective for the life of the agreement
or until the director determines that another
rate should be adopted.
1773.1. (a) Per diem wages, as the term is
used in this chapter or in any other statute
applicable to public works, includes employer
payments for the following:
(1) Health and welfare.
(2) Pension.
(3) Vacation.
(4) Travel.
(5) Subsistence.
(6) Apprenticeship or other training
programs authorized by Section 3093, to the
extent that the cost of training is reasonably
related to the amount of the contributions.
(7) Worker protection and assistance
programs or committees established under
the federal abor Management Cooperation
Act of 1978 (29 U.S.C. Sec. 175a), to the extent
that the activities of the programs or
committees are directed to the monitoring
and enforcement of laws related to public
works.
(8) Industry advancement and collective
bargaining agreements administrative fees,
provided that these payments are required
under a collective bargaining agreement
pertaining to the particular craft,
classification, or type of work within the
locality or the nearest labor market area at
issue.
(9) Other purposes similar to those specified
in paragraphs (1) to (8), inclusive.
(b) Employer payments include all of the
following:
(1) The rate of contribution irrevocably
made by the employer to a trustee or third
person pursuant to a plan, fund, or program.
(2) The rate of actual costs to the employer
reasonably anticipated in providing benefits
to workers pursuant to an enforceable
commitment to carry out a financially
responsible plan or program communicated
in writing to the workers affected.
(3) Payments to the California
Apprenticeship Council pursuant to Section
1777.5.
(c) Employer payments are a credit against
the obligation to pay the general prevailing
rate of per diem wages. However, credit shall
not be granted for benefits required to be
provided by other state or federal law, or for
payments made to monitor and enforce laws
related to public works if those payments are
not made to a program or committee
established under the federal Labor
Management Cooperation Act of 1978 (29
U.S.C. Sec. 175a). Credits for employer
payments also shall not reduce the obligation
to pay the hourly straight time or overtime
wages found to be prevailing. However, an
increased employer payment contribution
that results in a lower hourly straight time or
overtime wage shall not be considered a
violation of the applicable prevailing wage
determination if all of the following conditions
are met:
(1) The increased employer payment is
made pursuant to criteria set forth in a
collective bargaining agreement.
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(2) The basic hourly rate and increased
employer payment are no less than the
general prevailing rate of per diem wages and
the general prevailing rate for holiday and
overtime work in the director' s general
prevailing wage determination.
(3) The employer payment contribution is
irrevocable unless made
in error.
(d) An employer may take credit for an
employer payment specified in subdivision
(b), even if contributions are not made, or
costs are not paid, during the same pay period
for which credit is taken, if the employer
regularly makes the contributions, or
regularly pays the costs, for the plan, fund, or
program on no less than a quarterly basis.
(e) The credit for employer payments shall
be computed on an annualized basis when the
employer seeks credit for employer payments
that are higher for public works projects than
for private construction performed by the
same employer, unless one or more of the
following occur:
(1) The employer has an enforceable
obligation to make the higher rate of
payments on future private construction
performed by the employer.
(2) The higher rate of payments is required
by a project labor agreement.
(3) The payments are made to the California
Apprenticeship Council pursuant to Section
1777.5.
(4) The director determines that
annualization would not serve the purposes of
this chapter.
(f) (1) For the purpose of determining those
per diem wages for contracts, the
representative of any craft, classification, or
type of worker needed to execute contracts
shall file with the Department of Industrial
Relations fully executed copies of the
collective bargaining agreements for the
particular craft, classification, or type of work
involved. The collective bargaining
agreements shall be filed after their execution
and thereafter may be taken into
consideration pursuant to Section 1773
whenever they are filed 30 days prior to the
call for bids. If the collective bargaining
agreement has not been formalized, a
typescript of the final draft may be filed
temporarily, accompanied by a statement
under penalty of perjury as to its effective
date.
(2) When a copy of the collective bargaining
agreement has previously been filed, fully
executed copies of all modifications and
extensions of the agreement that affect per
diem wages or holidays shall be filed. (3)
The failure to comply with filing requirements
of this subdivision shall not be grounds for
setting aside a prevailing wage determination
if the information taken into consideration is
correct.
1773.2. The body awarding any contract for
public work, or otherwise undertaking any
public work, shall specify in the call for bids
for the contract, and in the bid specifications
and in the contract itself, what the general
rate of per diem wages is for each craft,
classification, or type of worker needed to
execute the contract. In lieu of specifying the
rate of wages in the call for bids, and in the
bid specifications and in the contract itself,
the awarding body may, in the call for bids,
bid specifications, and contract, include a
statement that copies of the prevailing rate of
per diem wages are on file at its principal
office, which shall be made available to any
interested party on request. The awarding
body shall also cause a copy of the
determination of the director of the prevailing
rate of per diem wages to be posted at each
job site.
1773.3. (a) (1) An awarding agency shall
provide notice to the Department of Industrial
Relations of any public works contract subject
to the requirements of this chapter, within
five days of the award.
(2) The notice shall be transmitted
electronically in a format specified by the
department and shall include the name of the
contractor, any subcontractor listed on the
successful bid, the bid and contract award
dates, the contract amount, the estimated
start and completion dates, job site location,
and any additional information the
department specifies that aids in the
administration and enforcement of this
chapter.
(b) In lieu of responding to any specific
request for contract award information, the
department may make the information
provided by awarding bodies pursuant to this
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section available for public review on its
Internet Web site.
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 of
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 or rates upon the ground that
they have not been determined in accordance
with the provision of Section 1773 of this
code. Within two days thereafter, a copy of
such petition shall be filed with the awarding
body. The petition shall set forth the facts
upon which it is based. The Director of
Industrial Relations or his authorized
representative shall, upon notice to the
petitioner, the awarding body and such other
persons as he deems proper, including the
recognized collective bargaining
representatives for the particular crafts,
classifications or types of work involved,
institute an investigation or hold a hearing.

Within 20 days after the filing of such petition,
or within such longer period as agreed upon
by the director, the awarding body, and all the
interested parties, he shall make a
determination and transmit the same in
writing to the awarding body and to the
interested parties. Such determination shall
be final and shall be the determination of the
awarding body. Upon receipt by it of the
notice of the filing of such petition the body
awarding the contract or authorizing the
public work shall extend the closing date for
the submission of bids or the starting of work
until five days after the determination of the
general prevailing rates of per diem wages
pursuant to this section. Upon the filing of
any such petition, notice thereof shall be set
forth in the next and all subsequent
publications by the awarding body of the call
for bids. No other notice need be given to
bidders by the awarding body by publication
or otherwise. The determination of the
director shall be included in the contract.
1773.5. (a) The Director of Industrial
Relations may establish
rules and regulations for the purpose of
carrying out this chapter, including, but not
limited to, the responsibilities and duties of
awarding bodies under this chapter.
(b) When a request is made to the director
for a determination of whether a specific
project or type of work awarded or
undertaken by a political subdivision is a
public work, he or she shall make that
determination within 60 days receipt of the
last notice of support or opposition from any
interested party relating to that project or
type of work that was not unreasonably
delayed, as determined by the director. If the
director deems that the complexity of the
request requires additional time to make that
determination, the director may have up to an
additional 60 days if he or she certifies in
writing to the requestor, and any interested
party, the reasons for the extension. If the
requestor is not a political subdivision, the
requester shall, within 15 days of the request,
serve a copy of the request upon the political
subdivision, in which event the political
subdivision shall, within 30 days of its receipt,
advise the director of its position regarding
the request. For projects or types of work that
are otherwise private development projects
receiving public funds, as specified in
subdivision (b) of Section 1720, the director
shall determine whether a specific project or
type of work is a public work within 120 days
of receipt of the last notice of support or
opposition relating to that project or type of
work from any interested party that was not
unreasonably delayed, as determined by the
director.
(c) If an administrative appeal of the
director's determination is made, it shall be
made within 30 days of the date of the
determination. The director shall issue a
determination on the administrative appeal
within 120 days after receipt of the last notice
of support or opposition relating to that
appeal from any interested party that was not
unreasonably delayed, as determined by the
director. The director may have up to an
additional 60 days if he or she certifies in
writing to the party requesting the appeal the
reason for the extension.
(d) The director shall have quasi-legislative
authority to determine coverage of projects or
types of work under the prevailing wage laws
of this chapter. A final determination on any
administrative appeal is subject to judicial
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review pursuant to Section 1085 of the Code
of Civil Procedure. These determinations, and
any determinations relating to the general
prevailing rate of per diem wages and the
general prevailing rate for holiday, shift rate,
and overtime work, shall be exempt from the
Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code).
1773.6. If during any quarterly period the
Director of Industrial Relations shall
determine that there has been a change in any
prevailing rate of per diem wages in any
locality he shall make such change available to
the awarding body and his determination
shall be final. Such determination by the
Director of Industrial Relations shall not be
effective as to any contract for which the
notice to bidders has been published.
1773.7. The provisions of Section 11250 of
the Government Code shall not be applicable
to Sections 1773, 1773.4, and 1773.6.
1773.8. An increased employer payment
contribution that results in a lower taxable
wage shall not be considered a violation of the
applicable prevailing wage determination so
long as all of the following conditions are met:
(a) The increased employer payment is
made pursuant to criteria set forth in a
collective bargaining agreement.
(b) The increased employer payment and
hourly straight time and overtime wage
combined are no less than the general
prevailing rate of per diem wages.
(c) The employer payment contribution is
irrevocable unless made in error.
1773.9. (a) The Director of Industrial
Relations shall use the methodology set forth
in subdivision (b) to determine the general
prevailing rate of per diem wages in the
locality in which the public work is to be
performed.
(b) The general prevailing rate of per diem
wages includes all of the following:
(1) The basic hourly wage rate being paid to
a majority of workers engaged in the
particular craft, classification, or type of work
within the locality and in the nearest labor
market area, if a majority of the workers is
paid at a single rate. If no single rate is being
paid to a majority of the workers, then the
single rate being paid to the greatest number
of workers, or modal rate, is prevailing. If a
modal rate cannot be determined, then the
director shall establish an alternative rate,
consistent with the methodology for
determining the modal rate, by considering
the appropriate collective bargaining
agreements, federal rates, rates in the nearest
labor market area, or other data such as wage
survey data.
(2) Other employer payments included in
per diem wages pursuant to Section 1773.1
and as included as part of the total hourly
wage rate from which the basic hourly wage
rate was derived. In the event the total hourly
wage rate does not include any employer
payments, the director shall establish a
prevailing employer payment rate by the
same procedure set forth in paragraph (1).
(3) The rate for holiday and overtime work
shall be those rates specified in the collective
bargaining agreement when the basic hourly
rate is based on a collective bargaining
agreement rate. In the event the basic hourly
rate is not based on a collective bargaining
agreement, the rate for holidays and overtime
work, if any, included with the prevailing
basic hourly rate of pay shall be prevailing.
(c) (1) If the director determines that the
general prevailing rate of per diem wages is
the rate established by a collective bargaining
agreement, and that the collective bargaining
agreement contains definite and
predetermined changes during its term that
will affect the rate adopted, the director shall
incorporate those changes into the
determination. Predetermined changes that
are rescinded prior to their effective date shall
not be enforced.
(2) When the director determines that there
is a definite and predetermined change in the
general prevailing rate of per diem wages as
described in paragraph (1), but has not
published, at the time of the effective date of
the predetermined change, the allocation of
the predetermined change as between the
basic hourly wage and other employer
payments included in per diem wages
pursuant to Section 1773.1, a contractor or
subcontractor may allocate payments of not
less than the amount of the definite and
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predetermined change to either the basic
hourly wage or other employer payments
included in per diem wages for up to 60 days
following the director's publication of the
specific allocation of the predetermined
change.
(3) When the director determines that there
is a definite and predetermined change in the
general prevailing rate of per diem wages as
described in paragraph (1), but the allocation
of that predetermined change as between the
basic hourly wage and other employer
payments included in per diem wages
pursuant to Section 1773.1 is subsequently
altered by the parties to a collective
bargaining agreement described in paragraph
(1), a contractor or subcontractor may
allocate payments of not less than the amount
of the definite and predetermined change in
accordance with either the originally
published allocation or the allocation as
altered in the collective bargaining agreement.
1773.11. (a) Notwithstanding any other
provision of law and except as otherwise
provided by this section, if the state or a
political subdivision thereof agrees by
contract with a private entity that the private
entity's employees receive, in performing that
contract, the general prevailing rate of per
diem wages and the general prevailing rate
for holiday and overtime work, the director
shall, upon a request by the state or the
political subdivision, do both of the following:
(1) Determine, as otherwise provided by
law, the wage rates for each craft,
classification, or type of worker that are
needed to execute the contract.
(2) Provide these wage rates to the state or
political subdivision that requests them.
(b) This section does not apply to a contract
for a public work, as defined in this chapter.
(c) The director shall determine and provide
the wage rates described in this section in the
order in which the requests for these wage
rates were received and regardless of the
calendar year in which they were received. If
there are more than 20 pending requests in a
calendar year, the director shall respond only
to the first 20 requests in the order in which
they were received. If the director determines
that funding is available in any calendar year
to determine and provide these wage rates in
response to more than 20 requests, the
director shall respond to these requests in a
manner consistent with this subdivision.
1774. The contractor to whom the contract is
awarded, and any subcontractor under him,
shall pay not less than the specified prevailing
rates of wages to all workmen employed in
the execution of the contract.
1775. (a) (1) The contractor and any
subcontractor under the contractor shall, as a
penalty to the state or political subdivision on
whose behalf the contract is made or
awarded, forfeit not more than two hundred
dollars ($200) for each calendar day, or
portion thereof, for each worker paid less
than the prevailing wage rates as determined
by the director for the work or craft in which
the worker is employed for any public work
done under the contract by the contractor or,
except as provided in subdivision (b), by any
subcontractor under the contractor.
(2) (A) The amount of the penalty shall be
determined by the Labor Commissioner based
on consideration of both of the following:
(i) Whether the failure of the contractor or
subcontractor to pay the correct rate of per
diem wages was a good faith mistake and, if
so, the error was promptly and voluntarily
corrected when brought to the attention of
the contractor or subcontractor.
(ii) Whether the contractor or subcontractor
has a prior record of failing to meet its
prevailing wage obligations.
(B) (i) The penalty may not be less than
forty dollars ($40) for each calendar day, or
portion thereof, for each worker paid less
than the prevailing wage rate, unless the
failure of the contractor or subcontractor to
pay the correct rate of per diem wages was a
good faith mistake and, if so, the error was
promptly and voluntarily corrected when
brought to the attention of the contractor or
subcontractor.
(ii) The penalty may not be less than eighty
dollars ($80) for each calendar day, or portion
thereof, for each worker paid less than the
prevailing wage rate, if the contractor or
subcontractor has been assessed penalties
within the previous three years for failing to
meet its prevailing wage obligations on a
separate contract, unless those penalties were
subsequently withdrawn or overturned.
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(iii) The penalty may not be less than one
hundred twenty dollars ($120) for each
calendar day, or portion thereof, for each
worker paid less than the prevailing wage
rate, if the Labor Commissioner determines
that the violation was willful, as defined in
subdivision (c) of Section 1777.1.
(C) If the amount due under this section is
collected from the contractor or
subcontractor, any outstanding wage claim
under Chapter 1 (commencing with Section
1720) of Part 7 of Division 2 against that
contractor or subcontractor shall be satisfied
before applying that amount to the penalty
imposed on that contractor or subcontractor
pursuant to this section.
(D) The determination of the Labor
Commissioner as to the amount of the penalty
shall be reviewable only for abuse of
discretion.
(E) The 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 shall be paid to
each worker by the contractor or
subcontractor, and the body awarding the
contract shall cause to be inserted in the
contract a stipulation that this section will be
complied with.
(b) If a worker employed by a subcontractor
on a public works project is not paid the
general prevailing rate of per diem wages by
the subcontractor, the prime contractor of the
project is not liable for any penalties under
subdivision (a) unless the prime contractor
had knowledge of that failure of the
subcontractor to pay the specified prevailing
rate of wages to those workers or unless the
prime contractor fails to comply with all of the
following requirements:
(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 this section and Sections 1771, 1776,
1777.5, 1813, and 1815.
(2) The contractor shall monitor the
payment of the specified general prevailing
rate of per diem wages by the subcontractor
to the employees, by periodic review of the
certified payroll records of the subcontractor.
(3) Upon becoming aware of the failure of
the subcontractor to pay his or her workers
the specified prevailing rate of wages, the
contractor shall diligently take corrective
action to halt or rectify the failure, including,
but not limited to, retaining sufficient funds
due the subcontractor for work performed on
the public works project.
(4) Prior to making final payment to the
subcontractor for work performed on the
public works project, the contractor shall
obtain an affidavit signed under penalty of
perjury from the subcontractor that the
subcontractor has paid the specified general
prevailing rate of per diem wages to his or her
employees on the public works project and
any amounts due pursuant to Section 1813.
(c) The Division of Labor Standards
Enforcement shall notify the contractor on a
public works project within 15 days of the
receipt by the Division of Labor Standards
Enforcement of a complaint of the failure of a
subcontractor on that public works project to
pay workers the general prevailing rate of per
diem wages.
1776. (a) Each contractor and subcontractor
shall keep accurate payroll records, showing
the name, address, social security number,
work classification, straight time and
overtime hours worked each day and week,
and the actual per diem wages paid to each
journeyman, apprentice, worker, or other
employee employed by him or her in
connection with the public work. Each payroll
record shall contain or be verified by a
written declaration that it is made under
penalty of perjury, stating both of the
following:
(1) The information contained in the payroll
record is true and correct.
(2) The employer has complied with the
requirements of Sections 1771, 1811, and
1815 for any work performed by his or her
employees on the public works project.
(b) The payroll records enumerated under
subdivision (a) shall be certified and shall be
available for inspection at all reasonable
hours at the principal office of the contractor
on the following basis:
(1) A certified copy of an employee's payroll
record shall be made available for inspection
or furnished to the employee or his or her
authorized representative on request.
(2) A certified copy of all payroll records
enumerated in subdivision (a) shall be made
available for inspection or furnished
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upon request to a representative of the body
awarding the contract and the Division of
Labor Standards Enforcement of the
Department of Industrial Relations.
(3) A certified copy of all payroll records
enumerated in subdivision (a) shall be made
available upon request by the public for
inspection or for copies thereof. However, a
request by the public shall be made through
either the body awarding the contract or the
Division of Labor Standards Enforcement. If
the requested payroll records have not been
provided pursuant to paragraph (2), the
requesting party shall, prior to being provided
the records, reimburse the costs of
preparation by the contractor, subcontractors,
and the entity through which the request was
made. The public may not be given access to
the records at the principal office of the
contractor.
(c) Unless required to be furnished directly
to the Labor Commissioner in accordance
with paragraph (3) of subdivision (a) of
Section 1771.4, the certified payroll records
shall be on forms provided by the Division of
Labor Standards Enforcement or shall contain
the same information as the forms provided
by the division. The payroll records may
consist of printouts of payroll data that are
maintained as computer records, if the
printouts contain the same information as the
forms provided by the division and the
printouts are verified in the manner specified
in subdivision (a).
(d) A contractor or subcontractor shall file a
certified copy of the records enumerated in
subdivision (a) with the entity that requested
the records within 10 days after receipt of a
written request.
(e) Except as provided in subdivision (f), any
copy of records made available for inspection
as copies and furnished upon request to the
public or any public agency by the awarding
body or the Division of Labor Standards
Enforcement shall be marked or obliterated to
prevent disclosure of an individual's name,
address, and social security number. The
name and address of the contractor awarded
the contract or the subcontractor performing
the contract shall not be marked or
obliterated. Any copy of records made
available for inspection by, or furnished to, a
multiemployer Taft-Hartley trust fund (29
U.S.C. Sec. 186(c)(5)) that requests the
records for the
purposes of allocating contributions to
participants shall be marked or obliterated
only to prevent disclosure of an individual's
full social security number, but shall provide
the last four digits of the social security
number. Any copy of records made available
for inspection by, or furnished to, a joint
labor-management committee established
pursuant to the federal Labor Management
Cooperation Act of 1978 (29 U.S.C. Sec. 175a)
shall be marked or obliterated only to prevent
disclosure of an individual's social security
number.
(f) (1) Notwithstanding any other provision
of law, agencies that are included in the Joint
Enforcement Strike Force on the
Underground Economy established pursuant
to Section 329 of the Unemployment
Insurance Code and other law enforcement
agencies investigating violations of law shall,
upon request, be provided nonredacted
copies of certified payroll records. Any copies
of records or certified payroll made available
for inspection and furnished upon request to
the public by an agency included in the Joint
Enforcement Strike Force on the
Underground Economy or to a law
enforcement agency investigating a violation
of law shall be marked or redacted to prevent
disclosure of an individual's name, address,
and social security number.
(2) An employer shall not be liable for
damages in a civil action for any reasonable
act or omission taken in good faith in
compliance with this subdivision.
(g) The contractor shall inform the body
awarding the contract of the location of the
records enumerated under subdivision (a),
including the street address, city, and county,
and shall, within five working days, provide a
notice of a change of location and address.
(h) The contractor or subcontractor has 10
days in which to comply subsequent to receipt
of a written notice requesting the records
enumerated in subdivision (a). In the event
that the contractor or subcontractor fails to
comply within the 10-day period, he or she
shall, as a penalty to the state or political
subdivision on whose behalf the contract is
made or awarded, forfeit one hundred dollars
($100) for each calendar day, or portion
thereof, for each worker, until strict
compliance is effectuated. Upon the request of
the Division of Labor Standards Enforcement,
these penalties shall be withheld from
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progress payments then due. A contractor is
not subject to a penalty assessment pursuant
to this section due to the failure of a
subcontractor to comply with this section.
(i) The body awarding the contract shall
cause to be inserted in the contract
stipulations to effectuate this section.
(j) The director shall adopt rules consistent
with the California Public Records Act
(Chapter 3.5 (commencing with Section 6250)
of Division 7 of Title 1 of the Government
Code) and the Information Practices Act of
1977 (Title 1.8 (commencing with Section
1798) of Part 4 of Division 3 of the Civil Code)
governing the release of these records,
including the establishment of reasonable fees
to be charged for reproducing copies of
records required by this section.
1777. Any officer, agent, or representative of
the State or of any political subdivision who
wilfully violates any provision of this article,
and any contractor, or subcontractor, or agent
or representative thereof, doing public work
who neglects to comply with any provision of
section 1776 is guilty of a misdemeanor.
1777.1. (a) Whenever a contractor or
subcontractor performing a public works
project pursuant to this chapter is found by
the Labor Commissioner to be in violation of
this chapter with intent to defraud, the
contractor or subcontractor or a firm,
corporation, partnership, or association in
which the contractor or subcontractor has any
interest is ineligible for a period of not less
than one year or more than three years to do
either of the following:
(1) Bid on or be awarded a contract for a
public works project.
(2) Perform work as a subcontractor on a
public works project.
(b) Whenever a contractor or subcontractor
performing a public works project pursuant to
this chapter is found by the Labor
Commissioner to have committed two or
more separate willful violations of this
chapter within a three-year period, the
contractor or subcontractor or a firm,
corporation, partnership, or association in
which the contractor or subcontractor has any
interest is ineligible for a period up to three
years to do either of the following:
(1) Bid on or be awarded a contract for a
public works project.
(2) Perform work as a subcontractor on a
public works project.
(c) Whenever a contractor or subcontractor
performing a public works project has failed
to provide a timely response to a request by
the Division of Labor Standards Enforcement,
the Division of Apprenticeship Standards, or
the awarding body to produce certified
payroll records pursuant to Section 1776, the
Labor Commissioner shall notify the
contractor or subcontractor that, in addition
to any other penalties provided by law, the
contractor or subcontractor will be subject to
debarment under this section if the certified
payroll records are not produced within 30
days after receipt of the written notice. If the
commissioner finds that the contractor or
subcontractor has failed to comply with
Section 1776 by that deadline, unless the
commissioner finds that the failure to comply
was due to circumstances outside the
contractor's or subcontractor's control, the
contractor or subcontractor or a firm,
corporation, partnership, or association in
which the contractor or subcontractor has any
interest is ineligible for a period of not less
than one year and not more than three years
to do either of the following:
(1) Bid on or be awarded a contract for a
public works project.
(2) Perform work as a subcontractor on a
public works project.
(d) (1) In the event a contractor or
subcontractor is determined by the Labor
Commissioner to have knowingly committed a
serious violation of any provision of Section
1777.5, the Labor Commissioner may also
deny to the contractor or subcontractor, and
to its responsible officers, the right to bid on
or to be awarded or perform work as a
subcontractor on any public works contract
for a period of up to one year for the first
violation and for a period of up to three years
for a second or subsequent violation. Each
period of debarment shall run from the date
the determination of noncompliance by the
Labor Commissioner becomes a final order.
(2) The Labor Commissioner shall consider,
in determining whether a violation is serious,
and in determining whether and for how long
a party should be debarred for violating
Section 1777.5, all of the following
circumstances:
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(A) Whether the violation was intentional.
(B) Whether the party has committed other
violations of Section 1777.5.
(C) Whether, upon notice of the violation,
the party took steps to voluntarily remedy the
violation.
(D) Whether, and to what extent, the
violation resulted in lost training
opportunities for apprentices.
(E) Whether, and to what extent, the
violation otherwise harmed apprentices or
apprenticeship programs.
(e) A willful violation occurs when the
contractor or subcontractor knew or
reasonably should have known of his or her
obligations under the public works law and
deliberately fails or
deliberately refuses to comply with its
provisions.
(f) The Labor Commissioner shall publish on
the commissioner's Internet Web site a list of
contractors who are ineligible to bid on or be
awarded a public works contract, or to
perform work as a subcontractor on a public
works project pursuant to this chapter. The
list shall contain the name of the contractor,
the Contractors' State License Board license
number of the contractor, and the effective
period of debarment of the contractor.

Contractors shall be added to the list upon
issuance of a debarment order and the
commissioner shall also notify the
Contractors' State License Board when the list
is updated. At least annually, the
commissioner shall notify awarding bodies of
the availability of the list of debarred
contractors. The commissioner shall also
place advertisements in construction industry
publications targeted to the contractors and
subcontractors, chosen by the commissioner,
that state the effective period of the
debarment and the reason for debarment. The
advertisements shall appear one time for each
debarment of a contractor in each publication
chosen by the commissioner. The debarred
contractor or subcontractor shall be liable to
the commissioner for the reasonable cost of
the advertisements, not to exceed five
thousand dollars ($5,000). The amount paid
to the commissioner for the advertisements
shall be credited against the contractor's or
subcontractor's obligation to pay civil fines or
penalties for the same willful violation of this
chapter.
(g) For purposes of this section, "contractor
or subcontractor" means a firm, corporation,
partnership, or association and its responsible
managing officer, as well as any supervisors,
managers, and officers found by the Labor
Commissioner to be personally and
substantially responsible for the willful
violation of this chapter.
(h) For the purposes of this section, the term
"any interest" means an interest in the entity
bidding or performing work on the public
works project, whether as an owner, partner,
officer, manager, employee, agent, consultant,
or representative. "Any interest" includes, but
is not limited to, all instances where the
debarred contractor or subcontractor
receives payments, whether cash or any other
form of compensation, from any entity
bidding or performing work on the public
works project, or enters into any contracts or
agreements with the entity bidding or
performing work on the public works project
for services performed or to be performed for
contracts that have been or will be assigned
or sublet, or for vehicles, tools, equipment, or
supplies that have been or will be sold, rented,
or leased during the period from the initiation
of the debarment proceedings until the end of
the term of the debarment period. "Any
interest" does not include shares held in a
publicly traded corporation if the shares were
not received as compensation after the
initiation of debarment from an entity bidding
or performing work on a public works project.
(i) For the purposes of this section, the term
"entity" is defined as a company, limited
liability company, association, partnership,
sole proprietorship, limited liability
partnership, corporation, business trust, or
organization.
(j) The Labor Commissioner shall adopt
rules and regulations for the administration
and enforcement of this section.
1777.5. (a) Nothing in this chapter shall
prevent the employment of properly
registered apprentices upon public works.
(b) Every apprentice employed upon public
works shall be paid the prevailing rate of per
diem wages for apprentices in the trade to
which he or she is registered and shall be
employed only at the work of the craft or
trade to which he or she is registered.
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(c) Only apprentices, as defined in Section
3077, who are in training under
apprenticeship standards that have been
approved by the Chief of the Division of
Apprenticeship Standards and who are
parties to written apprentice agreements
under Chapter 4 (commencing with Section
3070) of Division 3 are eligible to be
employed at the apprentice wage rate on
public works. The employment and training of
each apprentice shall be in accordance with
either of the following:
(1) The apprenticeship standards and
apprentice agreements under which he or she
is training.
(2) The rules and regulations of the
California Apprenticeship Council.
(d) When the contractor to whom the
contract is awarded by the state or any
political subdivision, in performing any of the
work under the contract, employs workers in
any apprenticeable craft or trade, the
contractor shall employ apprentices in at least
the ratio set forth in this section and may
apply to any apprenticeship program in the
craft or trade that can provide apprentices to
the site of the public work for a certificate
approving the contractor under the
apprenticeship standards for the employment
and training of apprentices in the area or
industry affected. However, the decision of the
apprenticeship program to approve or deny a
certificate shall be subject to review by the
Administrator of Apprenticeship. The
apprenticeship program or programs, upon
approving the contractor, shall arrange for the
dispatch of apprentices to the contractor. A
contractor covered by an apprenticeship
program's standards shall not be required to
submit any additional application in order to
include additional public works contracts
under that program. "Apprenticeable craft or
trade," as used in this section, means a craft or
trade determined as an apprenticeable
occupation in accordance with rules and
regulations prescribed by the California
Apprenticeship Council. As used in this
section, "contractor" includes any
subcontractor under a contractor who
performs any public works not excluded by
subdivision (o).
(e) Prior to commencing work on a contract
for public works, every contractor shall
submit contract award information to an
applicable apprenticeship program that can
supply apprentices to the site of the public
work. The information submitted shall
include an estimate of journeyman hours to
be performed under the contract, the number
of apprentices proposed to be employed, and
the approximate dates the apprentices would
be employed. A copy of this information shall
also be submitted to the awarding body if
requested by the awarding body. Within 60
days after concluding work on the contract,
each contractor and subcontractor shall
submit to the awarding body, if requested,
and to the apprenticeship program a verified
statement of the journeyman and apprentice
hours performed on the contract. The
information under this subdivision shall be
public. The apprenticeship programs shall
retain this information for 12 months.
(f) The apprenticeship program that can
supply apprentices to the area of the site of
the public work shall ensure equal
employment and affirmative action in
apprenticeship for women and minorities.
(g) The ratio of work performed by
apprentices to journeymen employed in a
particular craft or trade on the public work
may be no higher than the ratio stipulated in
the apprenticeship standards under which the
apprenticeship program operates where the
contractor agrees to be bound by those
standards, but, except as otherwise provided
in this section, in no case shall the ratio be less
than one hour of apprentice work for every
five hours of journeyman work.
(h) This ratio of apprentice work to
journeyman work shall apply during any day
or portion of a day when any journeyman is
employed at the jobsite and shall be computed
on the basis of the hours worked during the
day by journeymen so employed. Any work
performed by a journeyman in excess of eight
hours per day or 40 hours per week shall not
be used to calculate the ratio. The contractor
shall employ apprentices for the number of
hours computed as above before the end of
the contract or, in the case of a subcontractor,
before the end of the subcontract. However,
the contractor shall endeavor, to the greatest
extent possible, to employ apprentices during
the same time period that the journeymen in
the same craft or trade are employed at the
jobsite. Where an hourly apprenticeship ratio
is not feasible for a particular craft or trade,
the Administrator of Apprenticeship, upon
application of an apprenticeship program,
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may order a minimum ratio of not less than
one apprentice for each five journeymen in a
craft or trade classification.
(i) A contractor covered by this section who
has agreed to be covered by an apprenticeship
program's standards upon the issuance of the
approval certificate, or who has been
previously approved for an apprenticeship
program in the craft or trade, shall employ the
number of apprentices or the ratio of
apprentices to journeymen stipulated in the
applicable apprenticeship standards, but in no
event less than the 1 to 5 ratio required by
subdivision (g).
(j) Upon proper showing by a contractor
that he or she employs apprentices in a
particular craft or trade in the state on all of
his or her contracts on an annual average of
not less than one hour of apprentice work for
every five hours of labor performed by
journeymen, the Administrator of
Apprenticeship may grant a certificate
exempting the contractor from the 1 to 5
hourly ratio, as set forth in this section for
that craft or trade.
(k) An apprenticeship program has the
discretion to grant to a participating
contractor or contractor association a
certificate, which shall be subject to the
approval of the Administrator of
Apprenticeship, exempting the contractor
from the 1 to 5 ratio set forth in this section
when it finds that any one of the following
conditions is met:
(1) Unemployment for the previous threemonth period in the area exceeds an average of 15 percent.
(2) The number of apprentices in training in
the area exceeds a ratio of 1 to 5.
(3) There is a showing that the
apprenticeable craft or trade is replacing at
least one-thirtieth of its journeymen annually
through apprenticeship training, either on a
statewide basis or on a local basis.
(4) Assignment of an apprentice to any work
performed under a public works contract
would create a condition that would
jeopardize his or her life or the life, safety, or
property of fellow employees or the public at
large, or the specific task to which the
apprentice is to be assigned is of a nature that
training cannot be provided by a journeyman.
(l) When an exemption is granted pursuant
to subdivision (k) to an organization that
represents contractors in a specific trade from
the 1 to 5 ratio on a local or statewide basis,
the member contractors shall not be required
to submit individual applications for approval
to local joint apprenticeship committees, if
they are already covered by the local
apprenticeship standards.
(m) (1) A contractor to whom a contract is
awarded, who, in performing any of the work
under the contract, employs journeymen or
apprentices in any apprenticeable craft or
trade shall contribute to the California
Apprenticeship Council the same amount that
the director determines is the prevailing
amount of apprenticeship training
contributions in the area of the public works
site. A contractor may take as a credit for
payments to the council any amounts paid by
the contractor to an approved apprenticeship
program that can supply apprentices to the
site of the public works project. The
contractor may add the amount of the
contributions in computing his or her bid for
the contract.
(2) At the conclusion of the 2002-03 fiscal
year and each fiscal year thereafter, the
California Apprenticeship Council shall
distribute training contributions received by
the council under this subdivision, less the
expenses of the Department of Industrial
Relations for administering this subdivision,
by making grants to approved apprenticeship
programs for the purpose of training
apprentices. The funds shall be distributed as
follows:
(A) If there is an approved multiemployer
apprenticeship program serving the same
craft or trade and geographic area for which
the training contributions were made to the
council, a grant to that program shall be made.
(B) If there are two or more approved
multiemployer apprenticeship programs
serving the same craft or trade and county for
which the training contributions were made
to the council, the grant shall be divided
among those programs based on the number
of apprentices from that county registered in
each program.
(C) All training contributions not distributed
under subparagraphs (A) and (B) shall be
used to defray the future expenses of the
Department of Industrial Relations for the
administration and enforcement of
apprenticeship standards and requirements
under this code.
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(3) All training contributions received
pursuant to this subdivision shall be
deposited in the Apprenticeship Training
Contribution Fund, which is hereby created in
the State Treasury. Upon appropriation by the
Legislature, all moneys in the Apprenticeship
Training Contribution Fund shall be used for
the purpose of carrying out this subdivision
and to pay the expenses of the Department of
Industrial Relations.
(n) The body awarding the contract shall
cause to be inserted in the contract
stipulations to effectuate this section. The
stipulations shall fix the responsibility of
compliance with this section for all
apprenticeable occupations with the prime
contractor.
(o) This section does not apply to contracts
of general contractors or to contracts of
specialty contractors not bidding for work
through a general or prime contractor when
the contracts of general contractors or those
specialty contractors involve less than thirty
thousand dollars ($30,000).
(p) An awarding body that implements an
approved labor compliance program in
accordance with subdivision (b) of Section
1771.5 may, with the approval of the director,
assist in the enforcement of this section under
the terms and conditions prescribed by the
director.
1777.6. An employer or a labor union shall
not refuse to accept otherwise qualified
employees as registered apprentices on any
public works on any basis listed in
subdivision (a) of Section 12940 of the
Government Code, as those bases are defined
in Sections 12926 and 12926.1 of the
Government Code, except as provided in
Section 3077 of this code and Section 12940
of the Government Code.
1777.7. (a) (1) If the Labor Commissioner or
his or her designee determines after an
investigation that a contractor or
subcontractor knowingly violated Section
1777.5, the contractor and any subcontractor
responsible for the violation shall forfeit, as a
civil penalty to the state or political
subdivision on whose behalf the contract is
made or awarded, not more than one hundred
dollars ($100) for each full calendar day of
noncompliance. The amount of this penalty
may be reduced by the Labor Commissioner if
the amount of the penalty would be
disproportionate to the severity of the
violation. A contractor or subcontractor that
knowingly commits a second or subsequent
violation within a three-year period, if the
noncompliance results in apprenticeship
training not being provided as required by
this chapter, shall forfeit as a civil penalty the
sum of not more than three hundred dollars
($300) for each full calendar day of
noncompliance.
(2) In lieu of the penalty provided for in this
subdivision, the Labor Commissioner may, for
a first-time violation and with the
concurrence of an apprenticeship program
described in subdivision (d) of Section 1777.5,
order the contractor or subcontractor to
provide apprentice employment equivalent to
the work hours that would have been
provided for apprentices during the period of
noncompliance.
(b) The Labor Commissioner shall consider,
in setting the amount of a monetary penalty,
all of the following circumstances:
(1) Whether the violation was intentional.
(2) Whether the party has committed other
violations of Section 1777.5.
(3) Whether, upon notice of the violation,
the party took steps to voluntarily remedy the
violation.
(4) Whether, and to what extent, the
violation resulted in lost training
opportunities for apprentices.
(5) Whether, and to what extent, the
violation otherwise harmed apprentices or
apprenticeship programs.
(c) (1) The Labor Commissioner or his or
her designee shall issue a civil wage and
penalty assessment, in accordance with the
provisions of Section 1741, upon
determination of penalties assessed under
subdivisions (a) and (b). Review of a civil
wage and penalty assessment issued under
this subdivision may be requested in
accordance with the provisions of Section
1742. The regulations of the Director of
Industrial Relations, which govern
proceedings for review of civil wage and
penalty assessments and the withholding of
contract payments under Article 1
(commencing with Section 1720) and Article
2 (commencing with Section 1770), shall
apply.
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(2) For purposes of this section, a
determination issued pursuant to subdivision
(a) or (b) includes a determination that has
been approved by the Labor Commissioner
and issued by an awarding body that has been
authorized to assist the director in the
enforcement of Section 1777.5 pursuant to
subdivision (p) of that section. The Labor
Commissioner may intervene in any
proceeding for review of a determination
issued by an awarding body. If the
involvement of the Labor Commissioner in a
labor compliance program enforcement
action is limited to a review of the
determination and the matter is resolved
without litigation by or against the Labor
Commissioner or the department, the
awarding body shall enforce any applicable
penalties, as specified in this section, and shall
deposit any penalties and forfeitures collected
in the General Fund.
(d) The determination of the Labor
Commissioner as to the amount of the penalty
imposed under subdivisions (a) and (b) shall
be reviewable only for an abuse of discretion.
(e) If a subcontractor is found to have
violated Section 1777.5, the prime contractor
of the project is not liable for any penalties
under subdivision (a) unless the prime
contractor had knowledge of the
subcontractor's failure to comply with the
provisions of Section 1777.5 or unless the
prime contractor fails to comply with any of
the following requirements:
(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 Sections 1771, 1775, 1776, 1777.5, 1813,
and 1815.
(2) The contractor shall continually monitor
a subcontractor's use of apprentices required
to be employed on the public works project
pursuant to subdivision (d) of Section 1777.5,
including, but not limited to, periodic review
of the certified payroll of the subcontractor.
(3) Upon becoming aware of a failure of the
subcontractor to employ the required number
of apprentices, the contractor shall take
corrective action, including, but not limited to,
retaining funds due to the subcontractor for
work performed on the public works project
until the failure is corrected.
(4) Prior to making the final payment to the
subcontractor for work performed on the
public works project, the contractor shall
obtain a declaration signed under penalty of
perjury from the subcontractor that the
subcontractor has employed the required
number of apprentices on the public works
project.
(f) The Division of Labor Standards
Enforcement shall notify the contractor on a
public works project within 15 days of the
receipt by the division of a complaint that a
subcontractor on that public works project
knowingly violated Section 1777.5.
(g) The interpretation of Section 1777.5 and
the substantive requirements of this section
applicable to contractors or subcontractors
shall be in accordance with the regulations of
the California Apprenticeship Council.
(h) The Director of Industrial Relations may
adopt regulations to establish guidelines for
the imposition of monetary penalties.
1778. Every person, who individually or as a
representative of an awarding or public body
or officer, or as a contractor or subcontractor
doing public work, or agent or officer thereof,
who takes, receives, or conspires with another
to take or receive, for his own use or the use
of any other person any portion of the wages
of any workman or working subcontractor, in
connection with services rendered upon any
public work is guilty of a felony.
1779. Any person or agent or officer thereof
who charges, collects, or attempts to charge or
collect, directly or indirectly, a fee or valuable
consideration for registering any person for
public work, or for giving information as to
where such employment may be procured, or
for placing, assisting in placing, or attempting
to place, any person in public work, whether
the person is to work directly for the State, or
any political subdivision or for a contractor or
subcontractor doing public work is guilty of a
misdemeanor.
1780. Any person acting on behalf of the State
or any political subdivision, or any contractor
or subcontractor or agent or representative
thereof, doing any public work who places any
order for the employment of a workman on
public work where the filling of the order for
employment involves the charging of a fee, or
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the receiving of a valuable consideration from
any applicant for employment is guilty of a
misdemeanor.
1781. (a) (1) Notwithstanding any other
provision of law, a contractor may, subject to
paragraphs (2) and (3), bring an action in a
court of competent jurisdiction to recover
from the body awarding a contract for a
public work or otherwise undertaking any
public work any increased costs incurred by
the contractor as a result of any decision by
the body, the Department of Industrial
Relations, or a court that classifies, after the
time at which the body accepts the
contractor's bid or awards the contractor a
contract in circumstances where no bid is
solicited, the work covered by the bid or
contract as a "public work," as defined in this
chapter, to which Section 1771 applies, if that
body, before the bid opening or awarding of
the contract, failed to identify as a "public
work," as defined in this chapter, in the bid
specification or in the contract documents
that portion of the work that the decision
classifies as a "public work."
(2) The body awarding a contract for a
public work or otherwise undertaking any
public work is not liable for increased costs in
an action described in paragraph (1) if all of
the following conditions are met:
(A) The contractor did not directly submit a
bid to, or directly contract with, that body.
(B) The body stated in the contract,
agreement, ordinance, or other written
arrangement by which it undertook the public
work that the work described in paragraph
(1) was a "public work," as defined in this
chapter, to which Section 1771 applies, and
obligated the party with whom the body
makes its written arrangement to cause the
work described in paragraph (1) to be
performed as a "public work."
(C) The body fulfilled all of its duties, if any,
under the Civil Code or any other provision of
law pertaining to the body providing and
maintaining bonds to secure the payment of
contractors, including the payment of wages
to workers performing the work described in
paragraph (1).
(3) If a contractor did not directly submit a
bid to, or directly contract with a body
awarding a contract for, or otherwise
undertaking a public work, the liability of that
body in an action commenced by the
contractor under subdivision (a) is limited to
that portion of a judgment, obtained by that
contractor against the body that solicited the
contractor's bid or awarded the contract to
the contractor, that the contractor is unable to
satisfy. For purposes of this paragraph, a
contractor may not be deemed to be unable to
satisfy any portion of a judgment unless, in
addition to other collection measures, the
contractor has made a good faith attempt to
collect that portion of the judgment against a
surety bond, guarantee, or some other form of
assurance.
(b) When construction has not commenced
at the time a final decision by the Department
of Industrial Relations or a court classifies all
or part of the work covered by the bid or
contract as a "public work," as defined in this
chapter, the body that solicited the bid or
awarded the contract shall rebid the "public
work" covered by the contract as a "public
work," any bid that was submitted and any
contract that was executed for this work are
null and void, and the contractor may not be
compensated for any nonconstruction work
already performed unless the body soliciting
the bid or awarding the contract has agreed to
compensate the contractor for this work.
(c) For purposes of this section:
(1) "Awarding body" does not include the
Department of General Services, the
Department of Transportation, or the
Department of Water Resources.
(2) "Increased costs" includes, but is not
limited to:
(A) Labor cost increases required to be paid
to workers who perform or performed work
on the "public work" as a result of the events
described in subdivision (a).
(B) Penalties for a violation of this article for
which the contractor is liable, and which
violation is the result of the events described
in subdivision (a).
1782. (a) A charter city shall not receive or
use state funding or financial assistance for a
construction project if the city has a charter
provision or ordinance that authorizes a
contractor to not comply with the provisions
of this article on any public works contract.
(b) A charter city shall not receive or use
state funding or financial assistance for a
construction project if the city has awarded,
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within the prior two years, a public works
contract without requiring the contractor to
comply with all of the provisions of this
article. This subdivision shall not apply if the
charter city's failure to include the prevailing
wage or apprenticeship requirement in a
particular contract was inadvertent and
contrary to a city charter provision or
ordinance that otherwise requires compliance
with this article.
(c) A charter city is not disqualified by
subdivision (a) from receiving or using state
funding or financial assistance for its
construction projects if the charter city has a
local prevailing wage ordinance for all its
public works contracts that includes
requirements that in all respects are equal to
or greater than the requirements imposed by
the provisions of this article and that do not
authorize a contractor to not comply with this
article.
(d) For purposes of this section, the
following shall apply:
(1) A public works contract does not include
contracts for projects of twenty-five thousand
dollars ($25,000) or less when the project is
for construction work, or projects of fifteen
thousand dollars ($15,000) or less when the
project is for alteration, demolition, repair, or
maintenance work.
(2) A charter city includes any agency of a
charter city and any entity controlled by a
charter city whose contracts would be subject
to this article.
(3) A "construction project" means a project
that involves the award of a public works
contract.
(4) State funding or financial assistance
includes direct state funding, state loans and
loan guarantees, state tax credits, and any
other type of state financial support for a
construction project. State funding or
financial assistance does not include revenues
that charter cities are entitled to receive
without conditions under the California
Constitution.
(e) The Director of Industrial Relations shall
maintain a list of charter cities that may
receive and use state funding or financial
assistance for their construction projects.
(f) (1) This section does not restrict a
charter city from receiving or using state
funding or financial assistance that was
awarded to the city prior to January 1, 2015,
or from receiving or using state funding or
financial assistance to complete a contract
that was awarded prior to January 1, 2015.
(2) A charter city is not disqualified by
subdivision (b) from receiving or using state
funding or financial assistance for its
construction projects based on the city's
failure to require a contractor to comply with
this article in performing a contract the city
advertised for bid or awarded prior to January
1, 2015.
1784. (a) Notwithstanding any other law, a
contractor may bring an action in a court of
competent jurisdiction to recover from the
hiring party that the contractor directly
contracts with, any increased costs
attributable solely to the provisions of this
chapter, including, but not limited to, the
difference between the wages actually paid to
an employee and the wages that were
required to be paid to an employee under this
chapter, any penalties or other sums required
to be paid under this chapter, and costs and
attorney's fees for the action incurred by the
contractor as a result of any decision by the
Department of Industrial Relations, the Labor
and Workforce Development Agency, or a
court that classifies, after the time at which
the hiring party accepts the contractor's bid,
awards the contractor a contract under
circumstances when no bid is solicited, or
otherwise allows construction by the
contractor to proceed, the work covered by
the project, or any portion thereof, as a
"public work," as defined in this chapter,
except to the extent that either of the
following is true:
(1) The owner or developer or its agent
expressly advised the contractor that the
work to be covered by the contract would be a
"public work," as defined in this chapter, or is
otherwise subject to the payment of
prevailing wages.
(2) The hiring party expressly advised the
contractor that the work subject to the
contract would be a "public work," as defined
in this chapter, or is otherwise subject to the
payment of prevailing wages.
(b) (1) To be entitled to the recovery of
increased costs described in subdivision (a),
the contractor shall notify the hiring party and
the owner or developer within 30 days after
receipt of the notice of a decision by the
Department of Industrial Relations or the
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Labor and Workforce Development Agency, or
the initiation of any action in a court alleging,
that the work covered by the project, or any
portion thereof, is a "public work," as defined
in this chapter.
(2) The notice provided pursuant to this
subdivision shall set forth the legal name,
address, and telephone number of the
contractor, and the name, address, and
telephone number of the contractor's
representative, if any, and shall be given by
registered or certified mail, express mail, or
overnight delivery by an express service
carrier.
(c) A contractor is not required to list any
prevailing wages or apprenticeship standard
violations on a prequalification questionnaire
that are the direct result of the failure of the
owner or developer or its agent, or a hiring
party, to notify the contractor that the project,
or any portion thereof, was a "public work," as
defined in this chapter.
(d) This section does not apply to private
residential projects built on private property
unless the project is built pursuant to an
agreement with a state agency,
redevelopment agency, or local public housing
authority.
(e) This section does not apply if the conduct
of the contractor caused the project to be a
"public work," as defined in this chapter, or if
the contractor has actual knowledge that the
work is a "public work," as defined in this
chapter.
(f) A contractor may seek recovery pursuant
to this section only from a hiring party with
whom the contractor has a direct contract.
(g) For purposes of this section, "contractor"
means a person or entity licensed by the
Contractors' State Licensing Board that has a
direct contract with the hiring party to
provide services on private property or for
the benefit of a private owner or developer.
(h) For purposes of this section, "hiring
party" means the party that has a direct
contract for services provided by the
contractor who is seeking recovery pursuant
to subdivision (a) on a private works project
that was subsequently determined to be a
public work by the Department of Industrial
Relations or the Labor and Workforce
Development Agency, or by the initiation of
any action in a court alleging that the work
covered by the project, or any portion thereof,
was a public work.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
522
56 Appendix D – CLC 1810-1815
Appendix D – Labor Code Section 1810-1815

LABOR CODE
SECTION 1810-1815
1810. Eight hours labor constitutes a legal
day's work in all cases where the same is
performed under the authority of any law of
this State, or under the direction, or control,
or by the authority of any officer of this State
acting in his official capacity, or under the
direction, or control or by the authority of any
municipal corporation, or of any officer
thereof. A stipulation to that effect shall be
made a part of all contracts to which the State
or any municipal corporation therein is a
party.
1811. The time of service of any workman
employed upon public work is limited and
restricted to 8 hours during any one calendar
day, and 40 hours during any one calendar
week, except as hereinafter provided for
under Section 1815.
1812. Every contractor and subcontractor
shall keep an accurate record showing the
name of and actual hours worked each
calendar day and each calendar week by each
worker employed by him or her in connection
with the public work. The record shall be kept
open at all reasonable hours to the inspection
of the awarding body and to the Division of
Labor Standards Enforcement.
1813. The contractor or subcontractor shall,
as a penalty to the state or political
subdivision on whose behalf the contract is
made or awarded, forfeit twenty-five dollars
($25) for each worker employed in the
execution of the contract by the respective
contractor or subcontractor for each calendar
day during which the worker is required or
permitted to work more than 8 hours in any
one calendar day and 40 hours in any one
calendar week in violation of the provisions of
this article. In awarding any contract for
public work, the awarding body shall cause to
be inserted in the contract a stipulation to this
effect. The awarding body shall take
cognizance of all violations of this article
committed in the course of the execution of
the contract, and shall report them to the
Division of Labor Standards Enforcement.
1814. Any officer, agent, or representative of
the State or any political subdivision who
violates any provision of this article and any
contractor or subcontractor or agent or
representative thereof doing public work who
neglects to comply with any provision of
Section 1812 is guilty of a misdemeanor.
1815. Notwithstanding the provisions of
Sections 1810 to 1814, inclusive, of this code,
and notwithstanding any stipulation inserted
in any contract pursuant to the requirements
of said sections, work performed by
employees of contractors in excess of 8 hours
per day, and 40 hours during any one week,
shall be permitted upon public work upon
compensation for all hours worked in excess
of 8 hours per day at not less than 1 1/2 times
the basic rate of pay.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
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Appendix E – Labor Code Section 3070-3098

LABOR CODE
SECTION 3070-3098
3070. There is in the Division of
Apprenticeship Standards the California
Apprenticeship Council, which shall be
appointed by the Governor, composed of six
representatives each from employers or
employer organizations and employee
organizations, that sponsor apprenticeship
programs under this chapter, respectively,
geographically selected, and of two
representatives of the general public. The
Director of Industrial Relations, or his or her
permanent and best qualified designee, and
the Superintendent of Public Instruction, or
his or her permanent and best qualified
designee, and the Chancellor of the California
Community Colleges, or his or her permanent
and best qualified designee, shall also be
members of the California Apprenticeship
Council. The chairperson shall be elected by
vote of the California Apprenticeship Council.

Beginning with appointments in 1985, three
representatives each of employers and
employees, and one public representative
shall serve until January 15, 1989. In 1987,
three representatives each of the employers
and employees, and one public representative
shall serve until January 15, 1991. Any
member whose term expires on January 15,
1986, shall continue to serve until January 15,
1987. Thereafter each member shall serve for
a term of four years. Any member appointed
to fill a vacancy occurring prior to the
expiration of the term of his or her
predecessor shall be appointed for the
remainder of that term. Each member of the
council shall receive the sum of one hundred
dollars ($100) for each day of actual
attendance at meetings of the council, for each
day of actual attendance at hearings by the
council or a committee thereof pursuant to
Section 3082, and for each day of actual
attendance at meetings of other committees
established by the council and approved by
the Director of Industrial Relations, together
with his or her actual and necessary traveling
expenses incurred in connection therewith.
3071. The California Apprenticeship Council
shall meet at the call of the Director of
Industrial Relations and shall aid him or her
in formulating policies for the effective
administration of this chapter.

Thereafter, the California Apprenticeship
Council shall meet quarterly at a designated
date and special meetings may be held at the
call of the chairman. The California
Apprenticeship Council shall issue rules and
regulations which establish standards for
minimum wages, maximum hours, and
working conditions for apprentice
agreements, hereinafter in this chapter
referred to as apprenticeship standards,
which in no case shall be lower than those
prescribed by this chapter; and shall issue
rules and regulations governing equal
opportunities in apprenticeship, affirmative
action programs which include women and
minorities in apprenticeship, and other onthe-job training, and criteria for selection procedures with a view particularly toward
eliminating criteria not relevant to
qualification for training employment or more
stringent than is reasonably necessary.
3072. The Director of Industrial Relations is
ex officio the Administrator of Apprenticeship
and is authorized to appoint assistants as
necessary to effectuate the purposes of this
chapter.
3073. The Chief of the Division of
Apprenticeship Standards, or his or her duly
authorized representative, shall administer
the provisions of this chapter; act as secretary
of the California Apprenticeship Council; shall
foster, promote, and develop the welfare of
the apprentice and industry, improve the
working conditions of apprentices, and
advance their opportunities for profitable
employment; shall ensure that selection
procedures are impartially administered to all
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applicants for apprenticeship; shall gather
and promptly disseminate information
through apprenticeship and training
information centers; shall maintain on public
file in all high schools and field offices of the
Employment Development Department the
name and location of the local area
apprenticeship committees, the filing date,
and minimum requirements for application of
all registered apprenticeship programs; shall
cooperate in the development of
apprenticeship programs and may advise with
them on problems affecting apprenticeship
standards; shall audit all selection and
disciplinary proceedings of apprentices or
prospective apprentices; may enter joint
agreements with the Employment
Development Department outreach education
and employment programs, and educational
institutions on the operation of
apprenticeship information centers, including
positive efforts to achieve information on
equal opportunity and affirmative action
programs for women and minorities; and
shall supervise and recommend
apprenticeship agreements as to these
standards and perform such other duties
associated therewith as the California
Apprenticeship Council may recommend. The
chief shall coordinate the exchange, by the
California Apprenticeship Council, the
apprenticeship program sponsors, the Fair
Employment and Housing Council, community
organizations, and other interested persons,
of information on available minorities and
women who may serve as apprentices.
3073.1. (a) The division shall audit
apprenticeship programs to ensure that the
program audited is complying with its
standards, that all on-the-job training is
supervised by journeymen, that all related
and supplemental instruction required by the
apprenticeship standards is being provided,
that all work processes in the apprenticeship
standards are being covered, and that
graduates have completed the apprenticeship
program's requirements. The division shall
examine each apprenticeship program to
determine whether apprentices are
graduating from the program on schedule or
dropping out and to determine whether
graduates of the program have obtained
employment as journeymen. During the audit,
the division shall attempt to contact a
statistically valid sample of apprentices who
have dropped out of the program prior to
completion to determine the apprentices'
reasons for leaving the program. Every
apprenticeship program sponsor shall have a
duty to cooperate with the division in
conducting an audit.
(b) Audit reports shall be presented to the
California Apprenticeship Council and shall be
made public, except that the division shall not
make public information that would infringe
on the privacy of individual apprentices. The
division shall recommend remedial action to
correct deficiencies recognized in the audit
report, and the failure to follow division
recommendations or to correct deficiencies
within a reasonable period of time shall be
grounds for withdrawing state approval of a
program. Nothing shall prevent the division
from conducting more frequent or random
audits of apprenticeship programs where
deficiencies have been identified.
(c) The division shall give priority in
conducting audits to programs that have been
identified as having deficiencies. The division
may conduct simplified audits for programs
with fewer than five registered apprentices.
(d) For new and newly expanded building
and construction trades apprenticeship
programs, the division shall audit each
program one year after approval of the
creation or expansion of the program.
(e) If the division finds evidence that
information provided to it by a building and
construction trades apprenticeship program
has been purposefully misstated, the division
shall immediately investigate and determine
whether an audit of the program is necessary.

The division shall report its investigatory
findings to the California Apprenticeship
Council and make them available to the
public, except that the division shall not make
public information that would infringe upon
the privacy of individual apprentices.
(f) If the division determines that a building
and construction trades apprenticeship
program has been the subject of two or more
meritorious complaints that concern the
recruitment, training, or education of
apprentices within a five-year period, the
division shall schedule the program for an
audit within three months of the
determination.
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(g) If the division determines that a building
and construction trades apprenticeship
program that has had at least two graduating
classes has an annual apprentice completion
rate below 50 percent of the average
completion rate for the applicable trade, the
division shall schedule the program for an
audit within three months of the
determination.
3073.3. It is the intent of the Legislature that
the Department of Industrial Relations will
encourage greater participation for women
and ethnic minorities in apprenticeship
programs.
3073.5. The Chief of the Division of
Apprenticeship Standards and the California
Apprenticeship Council shall annually report
through the Director of Industrial Relations to
the Legislature and the public on the activities
of the division and the council. The report
shall contain information including, but not
limited to, analyses of the following:
(a) The number of individuals, including
numbers of women and minorities, registered
in apprenticeship programs in this state for
the current year and in each of the previous
five years.
(b) The number and percentage of
apprentices, including numbers and
percentages of minorities and women,
registered in each apprenticeship program
having five or more apprentices, and the
percentage of those apprentices who have
completed their programs successfully in the
current year and in each of the previous five
years.
(c) Remedial actions taken by the division to
assist those apprenticeship programs having
difficulty in achieving affirmative action goals
or having very low completion rates.
(d) The number of disputed issues with
respect to individual apprenticeship
agreements submitted to the Administrator of
Apprenticeship for determination and the
number of those issues resolved by the
council on appeal.
(e) The number of apprenticeship program
applications received by the division, the
number approved, the number denied and the
reason for those denials, the number being
reviewed, and deficiencies, if any, with respect
to those program applications being
reviewed.
(f) The number of apprenticeship programs,
approved by the Division of Apprenticeship
Standards, that are disapproved by the
California Apprenticeship Council, and the
reasons for those disapprovals.
3074. The preparation of trade analyses and
development of curriculum for instruction,
and the administration and supervision of
related and supplemental instruction for
apprentices, coordination of instruction with
job experiences, and the selection and training
of teachers and coordinators for this
instruction shall be the responsibility of, and
shall be provided by, state and local boards
responsible for vocational education upon
agreement with the program sponsor. This
responsibility shall not preclude the
establishment of off-campus related and
supplemental instruction when approved,
developed, and operated in cooperation with
state and local school boards responsible for
vocational education, and when the
instruction meets all other requirements of
this chapter. It is the intent of this chapter that
the instruction shall be made available to
apprentices through classroom instruction,
correspondence courses, self-study or other
means of instruction approved by state and
local public education agencies authorized to
provide vocational education. Pursuant to
this chapter all excess costs incurred by local
public education agencies exceeding state
apportionments and local revenue earned by
the attendance of apprentices shall be payable
by the program sponsor, upon joint
agreement between the sponsor and the local
education agency. The State Board of
Education and the Board of Governors of the
California Community Colleges, and the
Division of Apprenticeship Standards shall
jointly issue regulations regarding calculation
and payment provisions of excess costs to be
borne by the program sponsors. All funds
accrued by local education agencies from
attendance in apprenticeship classes
authorized by this section shall be expended
or allocated for all such classes offered by the
local education agency before excess costs
may be claimed.

The Department of Education and the Board
of Governors of the California Community
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Colleges may provide related and
supplemental instruction to isolated
apprentices as a direct instructional service,
on a contractual basis with local school
districts, by correspondence, or by a
combination of these means. For the purpose
of this section, an isolated apprentice is an
apprentice registered with the Division of
Apprenticeship Standards in the Department
of Industrial Relations who cannot be enrolled
in a class of related and supplementary
instruction for apprentices because of the
small number of apprentices available for an
appropriate class or because there is no
existing apprenticeship program within a
reasonable travel distance.

Interested parties may file a complaint in
accordance with Section 201 of Title 8 of the
Administrative Code, when a community
college or secondary education district is
unable to reach agreement with program
sponsors in providing related and
supplemental instruction. In the process of
securing an amicable adjustment, the
administrator, or his or her representative,
shall meet with the parties involved,
including, but not limited to, the chancellor, or
his or her representative, or the
Superintendent of Public Instruction, or his or
her representative.

Community colleges, and other public school
districts, shall refuse to provide related and
supplemental instruction to an apprenticeship
program when it is determined by the
Administrator of Apprenticeship that the
program sponsor has been found to be in
noncompliance with the State of California
Plan for Equal Opportunity in Apprenticeship.
3074.1. In compliance with the affirmative
action requirements of California's plan for
equal opportunity in apprenticeship, school
districts maintaining high schools, community
colleges districts, and apprenticeship program
sponsors, shall provide students with
information as to the availability of
apprenticeship programs.
3074.3. In providing related and
supplemental instruction pursuant to Section
3074, and notwithstanding any provisions of
the Education Code, the Superintendent of
Public Instruction and the Chancellor of the
California Community Colleges shall recognize
registration in an apprenticeship program
approved by the Division of Apprenticeship
Standards in the Department of Industrial
Relations as an acceptable prerequisite to
enrollment into such related and
supplemental classes.
3074.7. Notwithstanding any other provision
of law, the governing board of a school district
which offers classroom instruction in
postgraduate and upgrading courses pursuant
to subdivision (d) of Section 3093 of this code
may impose a fee upon individuals receiving
instruction in such postgraduate and
upgrading courses. Such fee shall be not more
than the amount necessary, as determined by
the governing board, to cover the total cost of
all such classroom instruction given the
individuals.
3075. (a) An apprenticeship program may be
administered by a joint apprenticeship
committee, unilateral management or labor
apprenticeship committee, or an individual
employer. Programs may be approved by the
chief in any trade in the state or in a city or
trade area, whenever the apprentice training
needs justify the establishment. Where a
collective bargaining agreement exists, a
program shall be jointly sponsored unless
either party to the agreement waives its right
to representation in writing. Joint
apprenticeship committees shall be composed
of an equal number of employer and
employee representatives.
(b) For purposes of this section, the
apprentice training needs in the building and
construction trades shall be deemed to justify
the approval of a new apprenticeship program
only if any of the following conditions are met:
(1) There is no existing apprenticeship
program approved under this chapter serving
the same craft or trade and geographic area.
(2) Existing apprenticeship programs
approved under this chapter that serve the
same craft or trade and geographic area do
not have the capacity, or neglect or refuse, to
dispatch sufficient apprentices to qualified
employers at a public works site who are
willing to abide by the applicable
apprenticeship standards.
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(3) Existing apprenticeship programs
approved under this chapter that serve the
same trade and geographic area have been
identified by the California Apprenticeship
Council as deficient in meeting their
obligations under this chapter.
(c) Notwithstanding subdivision (b), the
California Apprenticeship Council may
approve a new apprenticeship program if
special circumstances, as established by
regulation, justify the establishment of the
program.
3075.1. It is the public policy of this state to
encourage the utilization of apprenticeship as
a form of on-the-job training, when such
training is cost-effective in developing skills
needed to perform public services. State and
local public agencies shall make a diligent
effort to establish apprenticeship programs
for apprenticeable occupations in their
respective work forces. In furtherance of this
policy, public agencies shall take into
consideration (a) the extent to which a
continuous supply of trained personnel is
readily available to public agencies to meet
their skill requirements in the various
occupations which are determined to be
apprenticeable, and (b) the application of
established programs in the private sector,
where appropriate. Public sector
apprenticeship programs should be fully
compatible with affirmative action goals for
the participation of minorities and women in
apprenticeship programs.
3075.5. (a) This section applies when a
building and construction trades industry
program applies to the Chief of the Division of
Apprenticeship Standards for approval of a
new apprenticeship program or for the
expansion of an existing apprenticeship
program into a new occupation or geographic
area. The requirements of this section are in
addition to other requirements that may be
imposed by statute or regulation.
(b) (1) An applicant for a new or expanded
apprenticeship program under subdivision (a)
shall submit to the chief a written plan that
sets out the number of new apprentices the
applicant seeks to enroll during the next five
years in the new or expanded program, new
occupation, or new geographic area. The plan
must include the applicant's budget for
training the new apprentices and a detailed
explanation of how the applicant intends to
provide sufficient funding to meet that
budget.
(2) The applicant shall submit to the chief a
written plan providing a reasonable timetable
to obtain sufficient commitments from
employers to employ the new apprentices so
as to ensure, to the extent feasible, consistent
with the rates of employment for existing
programs in good standing in the applicable
trade, that the new apprentices will be
employed continuously throughout the entire
term of apprenticeship.
(3) The applicant shall submit to the chief
verifiable evidence that the applicant has
obtained, or will obtain, suitable and adequate
facilities to train the new apprentices. The
chief, or his or her representative, shall
personally inspect the facilities within six
months after the final approval of the
program.
(4) The applicant shall submit to the chief a
plan for the recruitment and selection of the
new apprentices. The plan shall include
advertising of the new apprenticeship
opportunities within the geographic area and
outreach to organizations that promote
apprenticeship opportunities to women and
underrepresented minorities.
(c) The chief shall not approve an
application that fails to meet any of the
requirements of this section. If the chief does
not approve an application because of its
failure to comply with this section, the chief
shall within 90 days provide the applicant
with a detailed explanation of the deficiencies
in the application and recommendations for
addressing those deficiencies to obtain
program approval. The applicant may submit
a new or amended application to the chief
within 90 days of receipt of the chief's
recommendations. The chief shall provide a
detailed response to a new or amended
application within 90 days of its receipt.
3075.6. Each building and construction
trades apprenticeship program shall provide
to each apprentice, on at least a semiannual
basis, a statement showing the number of
hours of on-the-job training and related and
supplemental instruction that the apprentice
has acquired toward graduation, the total
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number of hours of on-the-job training and
related and supplemental instruction that are
necessary for graduation, and the apprentice's
expected graduation date.
3075.7. Every building and construction
trades industry apprenticeship program shall
submit apprentice registration, change of
address, graduation, and termination data to
the Division of Apprenticeship Standards on a
monthly basis in an electronic format
acceptable to the division.
3076. The function of a joint apprenticeship
committee, when specific written authority is
delegated by the parent organizations
represented, shall be to establish work
processes, wage rates, working conditions for
apprentices, the number of apprentices which
shall be employed in the trade under
apprentice agreements, and aid in the
adjustment of apprenticeship disputes in
accordance with standards for apprenticeship
set up by the California Apprenticeship
Council. Disciplinary proceedings resulting
from disputes shall be duly noticed to the
involved individuals.
3076.3. Program sponsors shall establish
selection procedures which specify minimum
requirements for formal education or
equivalency, physical examination, if any,
subject matter of written tests and oral
interviews, and any other criteria pertinent to
the selection process; shall specify the relative
weights of all factors which determine
selection to an apprenticeship program; shall
submit in writing to the chief an official
statement of each selection procedure
including the filing date and location of the
program sponsor; shall make a copy of the
selection procedures available to each
applicant; shall provide in writing to each
applicant not selected an official explanation
setting forth the reason or reasons for the
nonselection, copies of which shall be
retained as a public record in the files of the
program sponsor for a period of five years;
and shall implement affirmative action
programs for minorities and women in
accordance with the rules, regulations, and
guidelines of the California Apprenticeship
Council.
3076.5. A program sponsor may provide in its
selection procedures for an additional 10
points credit in the selection of veteran
applicants for apprenticeship. "Veteran," as
used in this section, means a veteran who has
served in the armed forces of this country for
at least 181 consecutive days since January
31, 1955, and who has been discharged or
released under conditions other than
dishonorable, but does not include any person
who served only in auxiliary or reserve
components of the armed forces whose
services therein did not exempt him or her
from the operation of the Selective Training
and Service Act of 1940 (54 Stat. 885).
3077. The term "apprentice" as used in this
chapter, means a person at least 16 years of
age who has entered into a written
agreement, in this chapter called an
"apprentice agreement," with an employer or
program sponsor. The term of apprenticeship
for each apprenticeable occupation shall be
approved by the chief, and in no case shall
provide for less than 2,000 hours of
reasonably continuous employment for such
person and for his or her participation in an
approved program of training through
employment and through education in related
and supplemental subjects.
3077.5. A program sponsor administering an
apprenticeship program under this chapter
shall not provide a maximum age for
apprentices.
3078. Every apprentice agreement entered
into under this chapter shall directly, or by
reference, contain:
(a) The names of the contracting parties.
(b) The date of birth of the apprentice.
(c) A statement of the trade, craft, or
business which the apprentice is to be taught,
and the time at which the apprenticeship will
begin and end.
(d) A statement showing the number of
hours to be spent by the apprentice in work
and the learning objectives to be
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accomplished through related and
supplemental instruction, except as otherwise
provided under Section 3074. These
exceptions shall be subject to the appeal
procedures established in Sections 3081,
3082, 3083, and 3084. A minimum of 144
hours of related and supplemental instruction
for each year of apprenticeship is
recommended; however, related instruction
may be expressed in terms of units or other
objectives to be accomplished. In no case shall
the combined weekly hours of work and
required related and supplemental
instruction of the apprentice exceed the
maximum number of hours of work
prescribed by law for a person of the age of
the apprentice.
(e) A statement setting forth a schedule of
the processes in the trade or industry
divisions in which the apprentice is to be
taught and the approximate time to be spent
at each process.
(f) A statement of the graduated scale of
wages to be paid the apprentice and whether
the required schooltime shall be
compensated.
(g) A statement providing for a period of
probation of not more than 1,000 hours of
employment and not more than 72 hours of
related instruction, during which time the
apprentice agreement may be terminated by
the program sponsor at the request in writing
of either party, and providing that after the
probationary period the apprentice
agreement may be terminated by the
administrator by mutual agreement of all
parties thereto, or canceled by the
administrator for good and sufficient reason.
(h) A provision that all controversies or
differences concerning the apprentice
agreement which cannot be adjusted locally,
or which are not covered by collectivebargaining agreement, shall be submitted to the administrator for determination as
provided for in Section 3081.
(i) A provision that an employer who is
unable to fulfill his or her obligation under the
apprentice agreement may, with approval of
the administrator, transfer the contract to any
other employer if the apprentice consents and
the other employer agrees to assume the
obligation of the apprentice agreement.
(j) Such additional terms and conditions as
may be prescribed or approved by the
California Apprenticeship Council, not
inconsistent with the provisions of this
chapter.
(k) A clause providing that there shall be no
liability on the part of the other contracting
party for an injury sustained by an apprentice
engaged in schoolwork at a time when the
employment of the apprentice has been
temporarily or permanently terminated.
3079. Every apprentice agreement under this
chapter shall be approved by the local joint
apprenticeship committee or the parties to a
collective bargaining agreement or, subject to
review by the council, by the administrator
where there is no collective bargaining
agreement or joint committee, a copy of which
shall be filed with the California
Apprenticeship Council. Every apprentice
agreement shall be signed by the employer, or
his or her agent, or by a program sponsor, as
provided in Section 3080, and by the
apprentice, and if the apprentice is a minor,
by the minor's parent or guardian. Where a
minor enters into an apprentice agreement
under this chapter for a period of training
extending into his or her majority, the
apprentice agreement shall likewise be
binding for such a period as may be
covered during the apprentice's majority.
3080. (a) For the purpose of providing
greater diversity of training or continuity of
employment, any apprentice agreement made
under this chapter may in the discretion of the
California Apprenticeship Council be signed
by an association of employers or an
organization of employees instead of by an
individual employer. In that case, the
apprentice agreement shall expressly provide
that the association of employers or
organization of employees does not assume
the obligation of an employer but agrees to
use its best endeavors to procure employment
and training for an apprentice with one or
more employers who will accept full
responsibility, as herein provided, for all the
terms and conditions of employment and
training set forth in the agreement between
the apprentice and employer association or
employee organization during the period of
the apprentice's employment. The apprentice
agreement shall also expressly provide for the
transfer of the apprentice, subject to the
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approval of the California Apprenticeship
Council, to an employer or employers who
shall sign a written agreement with the
apprentice, and if the apprentice is a minor,
with the apprentice's parent or guardian, as
specified in Section 3079, contracting to
employ the apprentice for the whole or a
definite part of the total period of
apprenticeship under the terms and
conditions of employment and training set
forth in the apprentice agreement.
(b) All apprenticeship programs with more
than one employer or an association of
employers shall include provisions sufficient
to ensure meaningful representation of the
interests of apprentices in the management of
the program.
3081. Upon the complaint of any interested
person or upon his own initiative, the
administrator may investigate to determine if
there has been a violation of the terms of an
apprentice agreement, made under this
chapter, and he may hold hearings, inquiries,
and other proceedings necessary to such
investigations and determinations. The
parties to such agreement shall be given a fair
and impartial hearing, after reasonable notice
thereof. All such hearings, investigations and
determinations shall be made under authority
of reasonable rules and procedures
prescribed by the California Apprenticeship
Council.
3082. The determination of the administrator
shall be filed with the California
Apprenticeship Council. If no appeal
therefrom is filed with the California
Apprenticeship Council within 10 days from
the date the parties are given notification of
the determination, in accordance with Section
1013a and Section 2015.5 of the Code of Civil
Procedure, the determination shall become
the order of the California Apprenticeship
Council. Any person aggrieved by the
determination or action of the administrator
may appeal therefrom to the California
Apprenticeship Council, which shall review
the entire record and may hold a hearing
thereon after due notice to the interested
parties.
3083. The decision of the California
Apprenticeship Council as to the facts shall be
conclusive if supported by the evidence and
all orders and decisions of the California
Apprenticeship Council shall be prima facie
lawful and reasonable.
3084. Any party to an apprentice agreement
aggrieved by an order or decision of the
California Apprenticeship Council may
maintain appropriate proceedings in the
courts on questions of law. The decision of the
California Apprenticeship Council shall be
conclusive if the proceeding is not filed within
30 days after the date the aggrieved party is
given notification of the decision.
3084.5. In any case in which a person or
persons have willfully violated any of the
laws, regulations, or orders governing
applicants for apprenticeship or apprentices
registered under this chapter, the Division of
Apprenticeship Standards may obtain in a
court of competent jurisdiction, an injunction
against any further violations of any such
laws, regulations, or orders by such person or
persons.
3085. No person shall institute any action for
the enforcement of any apprentice agreement,
or damages for the breach of any apprentice
agreement, made under this chapter, unless
he shall first have exhausted all
administrative remedies provided by this
chapter.
3086. Nothing in this chapter or in any
apprentice agreement approved under this
chapter shall operate to invalidate any
apprenticeship provision in any collective
agreement between employers and
employees setting up higher apprenticeship
standards.
3088. If any provision of this chapter or the
application thereof to any person or
circumstances is held invalid, the remainder
of the chapter and the application of such
provision to other persons and circumstances,
shall not be affected thereby.
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3089. This chapter shall be known and may
be cited as the Shelley-Maloney Apprentice
Labor Standards Act of 1939.
3090. The Division of Apprenticeship
Standards shall investigate, approve or reject
applications from establishments for
apprenticeship and other on-the-job training,
and for that purpose, may cooperate, or
contract with, and receive reimbursements
from the appropriate agencies of the Federal
Government.
3091. Acceptance of an application for
entrance into an apprenticeship training
program shall not be predicated on the
payment of any fee. Reasonable costs for
expense incurred may be charged after an
applicant has been accepted into the program.
3091.5. Pursuant to Section 16370 of the
Government Code, there is hereby authorized
in the State Treasury a Special Deposit Fund
Account, which shall consist of moneys
collected from the sale of instructional
material to persons enrolled in any
apprenticeship training program under this
chapter. All of the moneys collected are
hereby appropriated without regard to fiscal
year for the support of the Department of
Education to be used for the development and
production of apprenticeship instructional
material.
3092. A successful graduate of a training
program in a particular apprenticeable
occupation of a vocational education program
meeting the standards of the California State
Plan for Vocational Education may receive
credit toward a term of apprenticeship if the
program is jointly established and approved
by a school district, a county superintendent
of schools, a public entity conducting a
regional occupational center or program, or a
private postsecondary vocational school
accredited by a regional or national
accrediting agency recognized by the United
States Office of Education and the program
sponsor of the particular apprenticeable
occupation.
3093. (a) This section applies only when
voluntarily requested by the parties to a
collective bargaining agreement or by an
employer, his or her association, or a union, or
its representative where there is no collective
bargaining agreement.
(b) Nothing in this section may be construed
in any way so as to compel, regulate, interfere
with, or duplicate the provisions of any
established training programs which are
operated under the terms of any collective
bargaining agreements or unilaterally by any
employer or bona fide labor union.
(c) Services contemplated under this section
may be provided only when voluntarily
requested and shall be denied when it is
found that existing prevailing conditions in
the area and industry would in any way be
lowered or adversely affected.
(d) The California Apprenticeship Council in
cooperation with the Department of
Education, the Employment Development
Department, and the Board of Governors of
the California Community Colleges may foster
and promote on-the-job training programs
other than apprenticeship as follows:
(1) programs for journeymen in the
apprenticeable occupations to keep them
abreast of current techniques, methods, and
materials and opportunities for advancement
in their industries;
(2) programs in other than apprenticeable
occupations for workers entering the labor
market for the first time or workers entering
new occupations by reason of having been
displaced from former occuptions by reason
of economic, industrial, technological
scientific changes, or developments;
(3) the programs shall be in accord with and
agreed to by the parties to any applicable
collective bargaining agreements and where
appropriate will include joint employeremployee cooperation in the programs. (e) The Division of Apprenticeship
Standards when requested may foster and
promote voluntary on-the-job training
programs in accordance with this section, and
assist employers, employees and other
interested persons and agencies in the
development and carrying out of the
programs. The Division of Apprenticeship
532
66 Appendix E – CLC 3070-3098
Standards shall cooperate in these functions
with the Department of Education, the
Employment Development Department, and
the Board of Governors of the California
Community Colleges and other governmental
agencies. The Division of Apprenticeship
Standards may cooperate with the
Department of Corrections and the
Department of the Youth Authority in the
development of training programs for inmates
and releasees of correctional institutions.
(f) The programs, where appropriate, may
include related and supplemental classroom
instruction offered and administered by state
and local boards responsible for vocational
education.
(g) The activities and services of the Division
of Apprenticeship Standards in training
programs under this section shall be
performed without curtailing or in any way
interfering with the division's activities and
services in apprenticeship.
(h) The Division of Apprenticeship
Standards may contract with, and receive
reimbursements from, appropriate federal,
state, and other governmental agencies.
(i) The vocational education activities and
services of the Department of Education, the
Board of Governors of the California
Community Colleges, and local public school
districts shall not be abridged or abrogated
through implementation of this section.
(j) "On-the-job training" as used in this
section refers exclusively to training confined
to the needs of a specific occupation and
conducted at the jobsite for employed
workers.
(k) "Journeyman," as used in this section,
means a person who has either
(1) completed an accredited apprenticeship in
his craft, or
(2) who has completed the equivalent of an
apprenticeship in length and content of work
experience and all other requirements in the
apprenticeship standards for the craft which
has workers classified as journeymen in an
apprenticeable occupation.
(l) Nothing in this section shall be construed
to require prior approval, ratification, or
reference of any training program to the
Division of Apprenticeship Standards or the
Department of Industrial Relations.
3095. Every person who willfully
discriminates in any recruitment or
apprenticeship program on any basis listed in
subdivision (a) of Section 12940 of the
Government Code, as those bases are defined
in Sections 12926 and 12926.1 of the
Government Code, except as otherwise
provided in Section 12940 of the Government
Code, is guilty of a misdemeanor punishable
by a fine of not more than one thousand
dollars ($1,000) or by imprisonment for not
more than six months, or both.
3097. The Department of Industrial Relations,
Division of Apprenticeship Standards, may
cooperate in the provision of, or provide,
services to the Employment Development
Department, and to service delivery areas, as
designated pursuant to the Job Training
Partnership Act (P.L. 97-300, and Division 8
commencing with Section 15000 of the
Unemployment Insurance Code). The
Department of Industrial Relations, Division
of Apprenticeship Standards may enter into
any agreements as may be necessary for this
purpose. The Division of Apprenticeship
Standards shall exert maximum effort to
persuade sponsors of its registered,
nonfederally funded, voluntary
apprenticeship and on-the-job training
programs to accept to the maximum possible
extent the eligible persons as described in the
Job Training Partnership Act (P.L. 97-300)
and Division 8 (commencing with Section
15000) of the Unemployment Insurance Code.
3098. An apprentice registered in an
approved apprenticeship program in any of
the building and construction trades shall be
employed only as an apprentice when
performing any construction work for an
employer that is a party, individually or
through an employer association, to any
apprenticeship agreement or standards
covering that individual.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
533
67 Appendix F – PCC 4104, 4107, 4107.5, 4108, 10164, and 20103.5 Appendix F – Public Contract Code Sections 4104, 4107, 4107.5, 4108, 10164, and 20103.5
4104. Any officer, department, board, or
commission taking bids for the construction
of any public work or improvement shall
provide in the specifications prepared for the
work or improvement or in the general
conditions under which bids will be received
for the doing of the work incident to the
public work or improvement that any person
making a bid or offer to perform the work,
shall, in his or her bid or offer, set forth:
(a) (1) The name, the location of the place of
business, and the California contractor license
number of each subcontractor who will
perform work or labor or render service to
the prime contractor in or about the
construction of the work or improvement, or
a subcontractor licensed by the State of
California who, under subcontract to the
prime contractor, specially fabricates and
installs a portion of the work or improvement
according to detailed drawings contained in
the plans and specifications, in an amount in
excess of one-half of 1 percent of the prime
contractor's total bid or, in the case of bids or
offers for the construction of streets or
highways, including bridges, in excess of onehalf of 1 percent of the prime contractor's total bid or ten thousand dollars
($10,000),whichever is greater.
(2) An inadvertent error in listing the
California contractor license number provided
pursuant to paragraph (1) shall not be
grounds for filing a bid protest or grounds for
considering the bid nonresponsive if the
corrected contractor's license number is
submitted to the public entity by the prime
contractor within 24 hours after the bid
opening and provided the corrected
contractor's license number corresponds to
the submitted name and location for that
subcontractor.
(3) (A) Subject to subparagraph (B), any
information requested by the officer,
department, board, or commission concerning
any subcontractor who the prime contractor
is required to list under this subdivision,
other than the subcontractor's name, location
of business, and California contractor license
number, may be submitted by the prime
contractor up to 24 hours after the deadline
established by the officer, department, board,
or commission for receipt of bids by prime
contractors.
(B) A state or local agency may implement
subparagraph (A) at its option.
(b) The portion of the work that will be done
by each subcontractor under this act. The
prime contractor shall list only one
subcontractor for each portion as is defined
by the prime contractor in his or her bid.
(c) This section shall become operative on
July 1, 2014.
--------------------------------
4107. A prime contractor whose bid is
accepted may not:
(a) Substitute a person as subcontractor in
place of the subcontractor listed in the
original bid, except that the awarding
authority, or its duly authorized officer, may,
except as otherwise provided in Section
4107.5, consent to the substitution of another
person as a subcontractor in any of the
following situations:
(1) When the subcontractor listed in the bid,
after having had a reasonable opportunity to
do so, fails or refuses to execute a written
contract for the scope of work specified in the
subcontractor's bid and at the price specified
in the subcontractor's bid, when that written
contract, based upon the general terms,
conditions, plans, and specifications for the
project involved or the terms of that
subcontractor's written bid, is presented to
the subcontractor by the prime contractor.
(2) When the listed subcontractor becomes
insolvent or the subject of an order for relief
in bankruptcy.
(3) When the listed subcontractor fails or
refuses to perform his or her subcontract.
(4) When the listed subcontractor fails or
refuses to meet the bond requirements of the
prime contractor as set forth in Section 4108.
(5) When the prime contractor
demonstrates to the awarding
authority, or its duly authorized officer,
subject to the further provisions set forth in
534
68 Appendix F – PCC 4104, 4107, 4107.5, 4108, 10164, and 20103.5 Section 4107.5, that the name of the
subcontractor was listed as the result of an
inadvertent clerical error.
(6) When the listed subcontractor is not
licensed pursuant to the Contractors License
Law.
(7) When the awarding authority, or its duly
authorized officer, determines that the work
performed by the listed subcontractor is
substantially unsatisfactory and not in
substantial accordance with the plans and
specifications, or that the subcontractor is
substantially delaying or disrupting the
progress of the work.
(8) When the listed subcontractor is
ineligible to work on a public works project
pursuant to Section 1777.1 or 1777.7 of the
Labor Code.
(9) When the awarding authority
determines that a listed subcontractor is not a
responsible contractor. Prior to approval of
the prime contractor's request for the
substitution, the awarding authority, or its
duly authorized officer, shall give notice in
writing to the listed subcontractor of the
prime contractor's request to substitute and
of the reasons for the request. The notice shall
be served by certified or registered mail to the
last known address of the subcontractor. The
listed subcontractor who has been so notified
has five working days within which to submit
written objections to the substitution to the
awarding authority. Failure to file these
written objections constitutes the listed
subcontractor's consent to the substitution.

If written objections are filed, the awarding
authority shall give notice in writing of at
least five working days to the listed
subcontractor of a hearing by the awarding
authority on the prime contractor's request
for substitution.
(b) Permit a subcontract to be voluntarily
assigned or transferred or allow it to be
performed by anyone other than the original
subcontractor listed in the original bid,
without the consent of the
awarding authority, or its duly authorized
officer.
(c) Other than in the performance of "change
orders" causing changes or deviations from
the original contract, sublet or subcontract
any portion of the work in excess of one-half
of 1 percent of the prime contractor's total bid
as to which his or her original bid did not
designate a subcontractor.
--------------------------------
4107.5. The prime contractor as a condition
to assert a claim of inadvertent clerical error
in the listing of a subcontractor shall within
two working days after the time of the prime
bid opening by the awarding authority give
written notice to the awarding authority and
copies of that notice to both the subcontractor
he or she claims to have listed in error and the
intended subcontractor who had bid to the
prime contractor prior to bid opening. Any
listed subcontractor who has been notified by
the prime contractor in accordance with this
section as to an inadvertent clerical error
shall be allowed six working days from the
time of the prime bid opening within which to
submit to the awarding authority and to the
prime contractor written objection to the
prime contractor's claim of inadvertent
clerical error. Failure of the listed
subcontractor to file the written notice within
the six working days shall be primary
evidence of his or her agreement that an
inadvertent clerical error was made. The
awarding authority shall, after a public
hearing as provided in Section 4107 and in
the absence of compelling reasons to the
contrary, consent to the substitution of the
intended subcontractor:
(a) If (1) the prime contractor, (2) the
subcontractor listed in error, and (3) the
intended subcontractor each submit an
affidavit to the awarding authority along with
such additional evidence as the parties may
wish to submit that an inadvertent clerical
error was in fact made, provided that the
affidavits from each of the three parties are
filed within eight working days from the time
of the prime bid opening, or
(b) If the affidavits are filed by both the
prime contractor and the intended
subcontractor within the specified time but
the subcontractor whom the prime contractor
claims to have listed in error does not submit
within six working days, to the awarding
authority and to the prime contractor, written
objection to the prime contractor's claim of
inadvertent clerical error as provided in this
section. If the affidavits are filed by both the
prime contractor and the intended
subcontractor but the listed subcontractor
535
69 Appendix F – PCC 4104, 4107, 4107.5, 4108, 10164, and 20103.5 has, within six working days from the time of
the prime bid opening, submitted to the
awarding authority and to the prime
contractor written objection to the prime
contractor's claim of inadvertent clerical
error, the awarding authority shall investigate
the claims of the parties and shall hold a
public hearing as provided in Section 4107 to
determine the validity of those claims. Any
determination made shall be based on the
facts contained in the declarations submitted
under penalty of perjury by all three parties
and supported by testimony under oath and
subject to cross-examination. The awarding
authority may, on its own motion or that of
any other party, admit testimony of other
contractors, any bid registries or depositories,
or any other party in possession of facts
which may have a bearing on the decision of
the awarding authority.
4108. (a) It shall be the responsibility of each
subcontractor submitting bids to a prime
contractor to be prepared to submit a faithful
performance and payment bond or bonds if so
requested by the prime contractor.
(b) In the event any subcontractor
submitting a bid to a prime contractor does
not, upon the request of the prime contractor
and at the expense of the prime contractor at
the established charge or premium therefor,
furnish to the prime contractor a bond or
bonds issued by an admitted surety wherein
the prime contractor shall be named the
obligee, guaranteeing prompt and faithful
performance of the subcontract and the
payment of all claims for labor and materials
furnished or used in and about the work to be
done and performed under the subcontract,
the prime contractor may reject the bid and
make a substitution of another subcontractor
subject to Section 4107.
(c) (1) The bond or bonds may be required
under this section only if the prime contractor
in his or her written or published request for
subbids clearly specifies the amount and
requirements of the bond or bonds.
(2) If the expense of the bond or bonds
required under this section is to be borne by
the subcontractor, that requirement shall also
be specified in the prime contractor's written
or published request for subbids.
(3) The prime contractor's failure to specify
bond requirements, in accordance with this
subdivision, in the written or published
request for subbids shall preclude the prime
contractor from imposing bond requirements
under this section.
10164. In all state projects where federal
funds are involved, no bid submitted shall be
invalidated by the failure of the bidder to be
licensed in accordance with the laws of this
state. However, at the time the contract is
awarded, the contractor shall be properly
licensed in accordance with the laws of this
state. The contract shall not be awarded
unless the state agency has verified that the
contractor has a valid license in the
appropriate classification for the work
performed. Any bidder or contractor not so
licensed shall be subject to all legal penalties
imposed by law, including, but not limited to,
any appropriate disciplinary action by the
Contractors State License Board. The
department shall include a statement to that
effect in the standard form of prequalification
questionnaire and financial statement. Failure
of the bidder to obtain proper and adequate
licensing for an award of a contract shall
constitute a failure to execute the contract as
provided in Section 10181 and shall result in
the forfeiture of the security of the bidder.
20103.5. In all contracts subject to this part
where federal funds are involved, no bid
submitted shall be invalidated by the failure
of the bidder to be licensed in accordance
with the laws of this state. However, at the
time the contract is awarded, the contractor
shall be properly licensed in accordance with
the laws of this state. The first payment for
work or material under any contract shall not
be made unless and until the Registrar of
Contractors verifies to the agency that the
records of the Contractors' State License
Board indicate that the contractor was
properly licensed at the time the contract was
awarded. Any bidder or contractor not so
licensed shall be subject to all legal penalties
536
70 Appendix F – PCC 4104, 4107, 4107.5, 4108, 10164, and 20103.5 imposed by law, including, but not limited to,
any appropriate disciplinary action by the
Contractors' State License Board. The agency
shall include a statement to that effect in the
standard form of prequalification
questionnaire and financial statement. Failure
of the bidder to obtain proper and adequate
licensing for an award of a contract shall
constitute a failure to execute the contract and
shall result in the forfeiture of the security of
the bidder.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
537
71 Appendix G – USC 175a, 186
Appendix G – United States
Code Title 29 Labor Section
175a
Section 175a
§ 175a. Assistance to plant, area, and
industrywide labor management
committees
(a) Establishment and operation of plant,
area, and industrywide committees
(1) The Service is authorized and directed to
provide assistance in the establishment and
operation of plant, area and industrywide
labor management committees which—
(A) have been organized jointly by employers
and labor organizations representing
employees in that plant, area, or industry; and
(B) are established for the purpose of
improving labor management relationships,
job security, organizational effectiveness,
enhancing economic development or
involving workers in decisions affecting their
jobs including improving communication with
respect to subjects of mutual interest and
concern.
(2) The Service is authorized and directed to
enter into contracts and to make grants,
where necessary or appropriate, to fulfill its
responsibilities under this section.
---------------------------------------------------------- § 186. Restrictions on financial
transactions
(c) Exceptions
(5) with respect to money or other thing of
value paid to a trust fund established by such
representative, for the sole and exclusive
benefit of the employees of such employer,
and their families and dependents (or of such
employees, families, and dependents jointly
with the employees of other employers
making similar payments, and their families
and dependents): Provided, That (A) such
payments are held in trust for the purpose of
paying, either from principal or income or
both, for the benefit of employees, their
families and dependents, for medical or
hospital care, pensions on retirement or death
of employees, compensation for injuries or
illness resulting from occupational activity or
insurance to provide any of the foregoing, or
unemployment benefits or life insurance,
disability and sickness insurance, or accident
insurance; (B) the detailed basis on which
such payments are to be made is specified in a
written agreement with the employer, and
employees and employers are equally
represented in the administration of such
fund, together with such neutral persons as
the representatives of the employers and the
representatives of employees may agree upon
and in the event the employer and employee
groups deadlock on the administration of such
fund and there are no neutral persons
empowered to break such deadlock, such
agreement provides that the two groups shall
agree on an impartial umpire to decide such
dispute, or in event of their failure to agree
within a reasonable length of time, an
impartial umpire to decide such dispute shall,
on petition of either group, be appointed by
the district court of the United States for the
district where the trust fund has its principal
office, and shall also contain provisions for an
annual audit of the trust fund, a statement of
the results of which shall be available for
inspection by interested persons at the
principal office of the trust fund and at such
other places as may be designated in such
written agreement; and (C) such payments as
are intended to be used for the purpose of
providing pensions or annuities for
employees are made to a separate trust which
provides that the funds held therein cannot be
used for any purpose other than paying such
pensions or annuities;
The United States Code above was found at:
http://www.gpo.gov/fdsys/pkg/USCODE2013-title29
538
72 Appendix H – GC 6700, 12926-12926.1, 12940
Appendix - H Government Code Section 6700, 12926-12926.1, 12940

GOVERNMENT CODE
SECTION 6700
6700. (a) The holidays in this state are:
(1) Every Sunday.
(2) January 1st.
(3) The third Monday in January, known as
"Dr. Martin Luther King, Jr. Day."
(4) February 12th, known as "Lincoln Day."
(5) The third Monday in February.
(6) March 31st known as "Cesar Chavez
Day."
(7) The last Monday in May.
(8) July 4th.
(9) The first Monday in September.
(10) September 9th, known as "Admission
Day."
(11) The fourth Friday in September, known
as "Native American Day."
(12) The second Monday in October, known
as "Columbus Day."
(13) November 11th, known as "Veterans
Day."
(14) December 25th.
(15) Good Friday from 12 noon until 3 p.m.
(16) (A) Every day appointed by the
President or Governor for a public fast,
thanksgiving, or holiday.
(B) Except for the Thursday in November
appointed as Thanksgiving
Day, this paragraph and paragraphs (3) and
(6) shall not apply to a city, county, or district
unless made applicable by charter, or by
ordinance or resolution of the governing body
thereof.
(b) If the provisions of this section are in
conflict with the provisions of a memorandum
of understanding reached pursuant to Chapter
12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of
understanding shall be controlling without
further legislative action, except that if those
provisions of a memorandum of
understanding require the expenditure of
funds, the provisions shall not become
effective unless approved by the Legislature
in the annual Budget Act.

GOVERNMENT CODE
SECTION 12926 -
12926.1
12926. As used in this part in connection with
unlawful practices, unless a different meaning
clearly appears from the context:
(a) "Affirmative relief" or "prospective
relief" includes the authority to order
reinstatement of an employee, awards of
backpay, reimbursement of out-of-pocket
expenses, hiring, transfers, reassignments,
grants of tenure, promotions, cease and desist
orders, posting of notices, training of
personnel, testing, expunging of records,
reporting of records, and any other similar
relief that is intended to correct unlawful
practices under this part.
(b) "Age" refers to the chronological age of
any individual who has reached his or her
40th birthday.
(c) "Employee" does not include any
individual employed by his or her parents,
spouse, or child, or any individual employed
under a special license in a nonprofit
sheltered workshop or rehabilitation facility.
(d) "Employer" includes any person
regularly employing five or more persons, or
any person acting as an agent of an employer,
directly or indirectly, the state or any political
or civil subdivision of the state, and cities,
except as follows:
"Employer" does not include a religious
association or corporation not organized for
private profit.
539
73 Appendix H – GC 6700, 12926-12926.1, 12940
(e) "Employment agency" includes any
person undertaking for compensation to
procure employees or opportunities to work.
(f) "Essential functions" means the
fundamental job duties of the employment
position the individual with a disability holds
or desires. "Essential functions" does not
include the marginal functions of the position.
(1) A job function may be considered
essential for any of several reasons, including,
but not limited to, any one or more of the
following:
(A) The function may be essential because
the reason the position exists is to perform
that function.
(B) The function may be essential because of
the limited number of employees available
among whom the performance of that job
function can be distributed.
(C) The function may be highly specialized,
so that the incumbent in the position is hired
for his or her expertise or ability to perform
the particular function.
(2) Evidence of whether a particular
function is essential includes, but is not
limited to, the following:
(A) The employer's judgment as to which
functions are essential.
(B) Written job descriptions prepared
before advertising or interviewing applicants
for the job.
(C) The amount of time spent on the job
performing the function.
(D) The consequences of not requiring the
incumbent to perform the function.
(E) The terms of a collective bargaining
agreement.
(F) The work experiences of past
incumbents in the job.
(G) The current work experience of
incumbents in similar jobs.
(g) (1) "Genetic information" means, with
respect to any
individual, information about any of the
following:
(A) The individual's genetic tests.
(B) The genetic tests of family members of
the individual.
(C) The manifestation of a disease or
disorder in family members of the individual.
(2) "Genetic information" includes any
request for, or receipt of, genetic services, or
participation in clinical research that includes
genetic services, by an individual or any
family member of the individual.
(3) "Genetic information" does not include
information about the sex or age of any
individual.
(h) "Labor organization" includes any
organization that exists and is constituted for
the purpose, in whole or in part, of collective
bargaining or of dealing with employers
concerning grievances, terms or conditions of
employment, or of other mutual aid or
protection.
(i) "Medical condition" means either of the
following:
(1) Any health impairment related to or
associated with a diagnosis of cancer or a
record or history of cancer.
(2) Genetic characteristics. For purposes of
this section, "genetic characteristics" means
either of the following:
(A) Any scientifically or medically
identifiable gene or chromosome, or
combination or alteration thereof, that is
known to be a cause of a disease or disorder
in a person or his or her offspring, or that is
determined to be associated with a
statistically increased risk of development of a
disease or disorder, and that is presently not
associated with any symptoms of any disease
or disorder.
(B) Inherited characteristics that may derive
from the individual or family member, that
are known to be a cause of a disease or
disorder in a person or his or her offspring, or
that are determined to be associated with a
statistically increased risk of development of a
disease or disorder, and that are presently not
associated with any symptoms of any disease
or disorder.
(j) "Mental disability" includes, but is not
limited to, all of the following:
(1) Having any mental or psychological
disorder or condition, such as intellectual
disability, organic brain syndrome, emotional
or mental illness, or specific learning
disabilities, that limits a major life activity. For
purposes of this section:
(A) "Limits" shall be determined without
regard to mitigating measures, such as
medications, assistive devices, or reasonable
accommodations, unless the mitigating
measure itself limits a major life activity.
(B) A mental or psychological disorder or
condition limits a major life activity if it makes
the achievement of the major life activity
difficult.
540
74 Appendix H – GC 6700, 12926-12926.1, 12940
(C) "Major life activities" shall be broadly
construed and shall include physical, mental,
and social activities and working.
(2) Any other mental or psychological
disorder or condition not described in
paragraph (1) that requires special education
or related services.
(3) Having a record or history of a mental or
psychological disorder or condition described
in paragraph (1) or (2), which is known to the
employer or other entity covered by this part.
(4) Being regarded or treated by the
employer or other entity covered by this part
as having, or having had, any mental condition
that makes achievement of a major life
activity difficult.
(5) Being regarded or treated by the
employer or other entity covered by this part
as having, or having had, a mental or
psychological disorder or condition that has
no present disabling effect, but that may
become a mental disability as described in
paragraph (1) or (2).
"Mental disability" does not include sexual
behavior disorders, compulsive gambling,
kleptomania, pyromania, or psychoactive
substance use disorders resulting from the
current unlawful use of controlled substances
or other drugs.
(k) "Military and veteran status" means a
member or veteran of the United States
Armed Forces, United States Armed Forces
Reserve, the United States National Guard,
and the California National Guard.
(l) "On the bases enumerated in this part"
means or refers to discrimination on the basis
of one or more of the following: race, religious
creed, color, national origin, ancestry, physical
disability, mental disability, medical
condition, genetic information, marital status,
sex, age, sexual orientation, or military and
veteran status.
(m) "Physical disability" includes, but is not
limited to, all of the following:
(1) Having any physiological disease,
disorder, condition, cosmetic disfigurement,
or anatomical loss that does both of the
following:
(A) Affects one or more of the following
body systems: neurological, immunological,
musculoskeletal, special sense organs,
respiratory, including speech organs,
cardiovascular, reproductive, digestive,
genitourinary, hemic and lymphatic, skin, and
endocrine.
(B) Limits a major life activity. For purposes
of this section:
(i) "Limits" shall be determined without
regard to mitigating measures such as
medications, assistive devices, prosthetics, or
reasonable accommodations, unless the
mitigating measure itself limits a major life
activity.
(ii) A physiological disease, disorder,
condition, cosmetic disfigurement, or
anatomical loss limits a major life activity if it
makes the achievement of the major life
activity difficult.
(iii) "Major life activities" shall be broadly
construed and includes physical, mental, and
social activities and working.
(2) Any other health impairment not
described in paragraph (1) that requires
special education or related services.
(3) Having a record or history of a disease,
disorder, condition, cosmetic disfigurement,
anatomical loss, or health impairment
described in paragraph (1) or (2), which is
known to the employer or other entity
covered by this part.
(4) Being regarded or treated by the
employer or other entity covered by this part
as having, or having had, any physical
condition that makes achievement of a major
life activity difficult.
(5) Being regarded or treated by the
employer or other entity covered by this part
as having, or having had, a disease, disorder,
condition, cosmetic disfigurement, anatomical
loss, or health impairment that has no present
disabling effect but may become a physical
disability as described in paragraph (1) or (2).
(6) "Physical disability" does not include
sexual behavior disorders, compulsive
gambling, kleptomania, pyromania, or
psychoactive substance use disorders
resulting from the current unlawful use of
controlled substances or other drugs.
(n) Notwithstanding subdivisions (j) and
(m), if the definition of "disability" used in the
federal Americans with Disabilities Act of
1990 (Public Law 101-336) would result in
broader protection of the civil rights of
individuals with a mental disability or
physical disability, as defined in subdivision
(j) or (m), or would include any medical
condition not included within those
definitions, then that broader protection or
coverage shall be deemed incorporated by
reference into, and shall prevail over
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75 Appendix H – GC 6700, 12926-12926.1, 12940
conflicting provisions of, the definitions in
subdivisions (j) and (m).
(o) "Race, religious creed, color, national
origin, ancestry, physical disability, mental
disability, medical condition, genetic
information, marital status, sex, age, sexual
orientation, or military and veteran status"
includes a perception that the person has any
of those characteristics or that the person is
associated with a person who has, or is
perceived to have, any of those
characteristics.
(p) "Reasonable accommodation" may
include either of the following:
(1) Making existing facilities used by
employees readily accessible to, and usable
by, individuals with disabilities.
(2) Job restructuring, part-time or modified
work schedules, reassignment to a vacant
position, acquisition or modification of
equipment or devices, adjustment or
modifications of examinations, training
materials or policies, the provision of
qualified readers or interpreters, and other
similar accommodations for individuals with
disabilities.
(q) "Religious creed," "religion," "religious
observance," "religious belief," and "creed"
include all aspects of religious belief,
observance, and practice, including religious
dress and grooming practices. "Religious
dress practice" shall be construed broadly to
include the wearing or carrying of religious
clothing, head or face coverings, jewelry,
artifacts, and any other item that is part of the
observance by an individual of his or her
religious creed. "Religious grooming practice"
shall be construed broadly to include all forms
of head, facial, and body hair that are part of
the observance by an individual of his or her
religious creed.
(r) (1) "Sex" includes, but is not limited to,
the following:
(A) Pregnancy or medical conditions related
to pregnancy.
(B) Childbirth or medical conditions related
to childbirth.
(C) Breastfeeding or medical conditions
related to breastfeeding.
(2) "Sex" also includes, but is not limited to,
a person's gender. "Gender" means sex, and
includes a person's gender identity and
gender expression. "Gender expression"
means a person's gender-related appearance
and behavior whether or not stereotypically
associated with the person's assigned sex at
birth.
(s) "Sexual orientation" means
heterosexuality, homosexuality, and
bisexuality.
(t) "Supervisor" means any individual
having the authority, in the interest of the
employer, to hire, transfer, suspend, lay off,
recall, promote, discharge, assign, reward, or
discipline other employees, or the
responsibility to direct them, or to adjust their
grievances, or effectively to recommend that
action, if, in connection with the foregoing, the
exercise of that authority is not of a merely
routine or clerical nature, but requires the use
of independent judgment.
(u) "Undue hardship" means an action
requiring significant difficulty or expense,
when considered in light of the following
factors:
(1) The nature and cost of the
accommodation needed.
(2) The overall financial resources of the
facilities involved in the provision of the
reasonable accommodations, the number of
persons employed at the facility, and the
effect on expenses and resources or the
impact otherwise of these accommodations
upon the operation of the facility.
(3) The overall financial resources of the
covered entity, the overall size of the business
of a covered entity with respect to the number
of employees, and the number, type, and
location of its facilities.
(4) The type of operations, including the
composition, structure, and functions of the
workforce of the entity.
(5) The geographic separateness or
administrative or fiscal relationship of the
facility or facilities.
(v) "National origin" discrimination
includes, but is not limited to, discrimination
on the basis of possessing a driver's license
granted under Section 12801.9 of the Vehicle
Code.
12926.1. The Legislature finds and declares
as follows:
(a) The law of this state in the area of
disabilities provides protections independent
from those in the federal Americans with
Disabilities Act of 1990 (P.L. 101-336).

Although the federal act provides a floor of
protection, this state's law has always, even
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76 Appendix H – GC 6700, 12926-12926.1, 12940
prior to passage of the federal act, afforded
additional protections.
(b) The law of this state contains broad
definitions of physical disability, mental
disability, and medical condition. It is the
intent of the Legislature that the definitions of
physical disability and mental disability be
construed so that applicants and employees
are protected from discrimination due to an
actual or perceived physical or mental
impairment that is disabling, potentially
disabling, or perceived as disabling or
potentially disabling.
(c) Physical and mental disabilities include,
but are not limited to, chronic or episodic
conditions such as HIV/AIDS, hepatitis,
epilepsy, seizure disorder, diabetes, clinical
depression, bipolar disorder, multiple
sclerosis, and heart disease. In addition, the
Legislature has determined that the
definitions of "physical disability" and "mental
disability" under the law of this state require a
"limitation" upon a major life activity, but do
not require, as does the federal Americans
with Disabilities Act of 1990, a "substantial
limitation." This distinction is intended to
result in broader coverage under the law of
this state than under that federal act. Under
the law of this state, whether a condition
limits a major life activity shall be determined
without respect to any mitigating measures,
unless the mitigating measure itself limits a
major life activity, regardless of federal law
under the Americans with Disabilities Act of
1990. Further, under the law of this state,
"working" is a major life activity, regardless of
whether the actual or perceived working
limitation implicates a particular employment
or a class or broad range of employments.
(d) Notwithstanding any interpretation of
law in Cassista v. Community Foods (1993) 5
Cal.4th 1050, the Legislature intends (1) for
state law to be independent of the federal
Americans with Disabilities Act of 1990, (2) to
require a "limitation" rather than a
"substantial limitation" of a major life activity,
and (3) by enacting paragraph (4) of
subdivision (j) and paragraph (4) of
subdivision (l) of Section 12926, to provide
protection when an individual is erroneously
or mistakenly believed to have any physical or
mental condition that limits a major life
activity.
(e) The Legislature affirms the importance
of the interactive process between the
applicant or employee and the employer in
determining a reasonable accommodation, as
this requirement has been articulated by the
Equal Employment Opportunity Commission
in its interpretive guidance of the federal
Americans with Disabilities Act of 1990.

GOVERNMENT CODE
SECTION 12940
12940. It is an unlawful employment practice,
unless based upon a bona fide occupational
qualification, or, except where based upon
applicable security regulations established by
the United States or the State of California:
(a) For an employer, because of the race,
religious creed, color, national origin,
ancestry, physical disability, mental disability,
medical condition, genetic information,
marital status, sex, gender, gender identity,
gender expression, age, sexual orientation, or
military and veteran status of any person, to
refuse to hire or employ the person or to
refuse to select the person for a training
program leading to employment, or to bar or
to discharge the person from employment or
from a training program leading to
employment, or to discriminate against the
person in compensation or in terms,
conditions, or privileges of employment.
(1) This part does not prohibit an employer
from refusing to hire or discharging an
employee with a physical or mental disability,
or subject an employer to any legal liability
resulting from the refusal to employ or the
discharge of an employee with a physical or
mental disability, where the employee,
because of his or her physical or mental
disability, is unable to perform his or her
essential duties even with reasonable
accommodations, or cannot perform those
duties in a manner that would not endanger
his or her health or safety or the health or
safety of others even with reasonable
accommodations.
(2) This part does not prohibit an employer
from refusing to hire or discharging an
employee who, because of the employee's
medical condition, is unable to perform his or
her essential duties even with reasonable
543
77 Appendix H – GC 6700, 12926-12926.1, 12940
accommodations, or cannot perform those
duties in a manner that would not endanger
the employee's health or safety or the health
or safety of others even with reasonable
accommodations. Nothing in this part shall
subject an employer to any legal liability
resulting from the refusal to employ or the
discharge of an employee who, because of the
employee's medical condition, is unable to
perform his or her essential duties, or cannot
perform those duties in a manner that would
not endanger the employee's health or safety
or the health or safety of others even with
reasonable accommodations.
(3) Nothing in this part relating to
discrimination on account of marital status
shall do either of the following:
(A) Affect the right of an employer to
reasonably regulate, for reasons of
supervision, safety, security, or morale, the
working of spouses in the same department,
division, or facility, consistent with the rules
and regulations adopted by the commission.
(B) Prohibit bona fide health plans from
providing additional or greater benefits to
employees with dependents than to those
employees without or with fewer dependents.
(4) Nothing in this part relating to
discrimination on account of sex shall affect
the right of an employer to use veteran status
as a factor in employee selection or to give
special consideration to Vietnam-era
veterans.
(5) (A) This part does not prohibit an
employer from refusing to employ an
individual because of his or her age if the law
compels or provides for that refusal.

Promotions within the existing staff, hiring or
promotion on the basis of experience and
training, rehiring on the basis of seniority and
prior service with the employer, or hiring
under an established recruiting program from
high schools, colleges, universities, or trade
schools do not, in and of themselves,
constitute unlawful employment practices.
(B) The provisions of this part relating to
discrimination on the basis of age do not
prohibit an employer from providing health
benefits or health care reimbursement plans
to retired persons that are altered, reduced, or
eliminated when the person becomes eligible
for Medicare health benefits. This
subparagraph applies to all retiree health
benefit plans and contractual provisions or
practices concerning retiree health benefits
and health care reimbursement plans in effect
on or after January 1, 2011.
(b) For a labor organization, because of the
race, religious creed, color, national origin,
ancestry, physical disability, mental disability,
medical condition, genetic information,
marital status, sex, gender, gender identity,
gender expression, age, sexual orientation, or
military and veteran status of any person, to
exclude, expel, or restrict from its
membership the person, or to provide only
second-class or segregated membership or to
discriminate against any person because of
the race, religious creed, color, national origin,
ancestry, physical disability, mental disability,
medical condition, genetic information,
marital status, sex, gender, gender identity,
gender expression, age, sexual orientation, or
military and veteran status of the person in
the election of officers of the labor
organization or in the selection of the labor
organization's staff or to discriminate in any
way against any of its members or against any
employer or against any person employed by
an employer.
(c) For any person to discriminate against
any person in the selection, termination,
training, or other terms or treatment of that
person in any apprenticeship training
program, any other training program leading
to employment, an unpaid internship, or
another limited duration program to provide
unpaid work experience for that person
because of the race, religious creed, color,
national origin, ancestry, physical disability,
mental disability, medical condition, genetic
information, marital status, sex, gender,
gender identity, gender expression, age,
sexual orientation, or military and veteran
status of the person discriminated against.
(d) For any employer or employment agency
to print or circulate or cause to be printed or
circulated any publication, or to make any
nonjob-related inquiry of an employee or
applicant, either verbal or through use of an
application form, that expresses, directly or
indirectly, any limitation, specification, or
discrimination as to race, religious creed,
color, national origin, ancestry, physical
disability, mental disability, medical
condition, genetic information, marital status,
sex, gender, gender identity, gender
expression, age, sexual orientation, or military
and veteran status, or any intent to make any
such limitation, specification, or
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78 Appendix H – GC 6700, 12926-12926.1, 12940
discrimination. This part does not prohibit an
employer or employment agency from
inquiring into the age of an applicant, or from
specifying age limitations, where the law
compels or provides for that action.
(e) (1) Except as provided in paragraph (2)
or (3), for any employer or employment
agency to require any medical or
psychological examination of an applicant, to
make any medical or psychological inquiry of
an applicant, to make any inquiry whether an
applicant has a mental disability or physical
disability or medical condition, or to make any
inquiry regarding the nature or severity of a
physical disability, mental disability, or
medical condition.
(2) Notwithstanding paragraph (1), an
employer or employment agency may inquire
into the ability of an applicant to perform jobrelated functions and may respond to an applicant's request for reasonable
accommodation.
(3) Notwithstanding paragraph (1), an
employer or employment agency may require
a medical or psychological examination or
make a medical or psychological inquiry of a
job applicant after an employment offer has
been made but prior to the commencement of
employment duties, provided that the
examination or inquiry is job related and
consistent with business necessity and that all
entering employees in the same job
classification are subject to the same
examination or inquiry.
(f) (1) Except as provided in paragraph (2),
for any employer or employment agency to
require any medical or psychological
examination of an employee, to make any
medical or psychological inquiry of an
employee, to make any inquiry whether an
employee has a mental disability, physical
disability, or medical condition, or to make
any inquiry regarding the nature or severity
of a physical disability, mental disability, or
medical condition.
(2) Notwithstanding paragraph (1), an
employer or employment agency may require
any examinations or inquiries that it can show
to be job related and consistent with business
necessity. An employer or employment
agency may conduct voluntary medical
examinations, including voluntary medical
histories, which are part of an employee
health program available to employees at that
worksite.
(g) For any employer, labor organization, or
employment agency to harass, discharge,
expel, or otherwise discriminate against any
person because the person has made a report
pursuant to Section 11161.8 of the Penal Code
that prohibits retaliation against hospital
employees who report suspected patient
abuse by health facilities or community care
facilities.
(h) For any employer, labor organization,
employment agency, or person to discharge,
expel, or otherwise discriminate against any
person because the person has opposed any
practices forbidden under this part or because
the person has filed a complaint, testified, or
assisted in any proceeding under this part.
(i) For any person to aid, abet, incite,
compel, or coerce the doing of any of the acts
forbidden under this part, or to attempt to do
so.
(j) (1) For an employer, labor organization,
employment agency, apprenticeship training
program or any training program leading to
employment, or any other person, because of
race, religious creed, color, national origin,
ancestry, physical disability, mental disability,
medical condition, genetic information,
marital status, sex, gender, gender identity,
gender expression, age, sexual orientation, or
military and veteran status, to harass an
employee, an applicant, an unpaid intern or
volunteer, or a person providing services
pursuant to a contract. Harassment of an
employee, an applicant, an unpaid intern or
volunteer, or a person providing services
pursuant to a contract by an employee, other
than an agent or supervisor, shall be unlawful
if the entity, or its agents or supervisors,
knows or should have known of this conduct
and fails to take immediate and appropriate
corrective action. An employer may also be
responsible for the acts of nonemployees,
with respect to sexual harassment of
employees, applicants, unpaid interns or
volunteers, or persons providing services
pursuant to a contract in the workplace,
where the employer, or its agents or
supervisors, knows or should have known of
the conduct and fails to take immediate and
appropriate corrective action. In reviewing
cases involving the acts of nonemployees, the
extent of the employer's control and any other
legal responsibility that the employer may
have with respect to the conduct of those
nonemployees shall be considered. An entity
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79 Appendix H – GC 6700, 12926-12926.1, 12940
shall take all reasonable steps to prevent
harassment from occurring. Loss of tangible
job benefits shall not be necessary in order to
establish harassment.
(2) The provisions of this subdivision are
declaratory of existing law, except for the new
duties imposed on employers with regard to
harassment.
(3) An employee of an entity subject to this
subdivision is personally liable for any
harassment prohibited by this section that is
perpetrated by the employee, regardless of
whether the employer or covered entity
knows or should have known of the conduct
and fails to take immediate and appropriate
corrective action.
(4) (A) For purposes of this subdivision only,
"employer" means any person regularly
employing one or more persons or regularly
receiving the services of one or more persons
providing services pursuant to a contract, or
any person acting as an agent of an employer,
directly or indirectly, the state, or any political
or civil subdivision of the state, and cities. The
definition of "employer" in subdivision (d) of
Section 12926 applies to all provisions of this
section other than this subdivision.
(B) Notwithstanding subparagraph (A), for
purposes of this subdivision, "employer" does
not include a religious association or
corporation not organized for private profit,
except as provided in Section 12926.2.
(C) For purposes of this subdivision,
"harassment" because of sex includes sexual
harassment, gender harassment, and
harassment based on pregnancy, childbirth, or
related medical conditions. Sexually harassing
conduct need not be motivated by sexual
desire.
(5) For purposes of this subdivision, "a
person providing services pursuant to a
contract" means a person who meets all of the
following criteria:
(A) The person has the right to control the
performance of the contract for services and
discretion as to the manner of performance.
(B) The person is customarily engaged in an
independently established business.
(C) The person has control over the time and
place the work is performed, supplies the
tools and instruments used in the work, and
performs work that requires a particular skill
not ordinarily used in the course of the
employer's work.
(k) For an employer, labor organization,
employment agency, apprenticeship training
program, or any training program leading to
employment, to fail to take all reasonable
steps necessary to prevent discrimination and
harassment from occurring.
(l) (1) For an employer or other entity
covered by this part to refuse to hire or
employ a person or to refuse to select a
person for a training program leading to
employment or to bar or to discharge a
person from employment or from a training
program leading to employment, or to
discriminate against a person in
compensation or in terms, conditions, or
privileges of employment because of a conflict
between the person's religious belief or
observance and any employment
requirement, unless the employer or other
entity covered by this part demonstrates that
it has explored any available reasonable
alternative means of accommodating the
religious belief or observance, including the
possibilities of excusing the person from those
duties that conflict with his or her religious
belief or observance or permitting those
duties to be performed at another time or by
another person, but is unable to reasonably
accommodate the religious belief or
observance without undue hardship, as
defined in subdivision (u) of Section 12926,
on the conduct of the business of the
employer or other entity covered by this part.

Religious belief or observance, as used in this
section, includes, but is not limited to,
observance of a Sabbath or other religious
holy day or days, reasonable time necessary
for travel prior and subsequent to a religious
observance, and religious dress practice and
religious grooming practice as described in
subdivision (q) of Section 12926. This
subdivision shall also apply to an
apprenticeship training program, an unpaid
internship, and any other program to provide
unpaid experience for a person in the
workplace or industry.
(2) An accommodation of an individual's
religious dress practice or religious grooming
practice is not reasonable if the
accommodation requires segregation of the
individual from other employees or the
public.
(3) An accommodation is not required under
this subdivision if it would result in a violation
of this part or any other law prohibiting
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80 Appendix H – GC 6700, 12926-12926.1, 12940
discrimination or protecting civil rights,
including subdivision (b) of Section 51 of the
Civil Code and Section 11135 of this code.
(m) For an employer or other entity covered
by this part to fail to make reasonable
accommodation for the known physical or
mental disability of an applicant or employee.

Nothing in this subdivision or in paragraph
(1) or (2) of subdivision (a) shall be construed
to require an accommodation that is
demonstrated by the employer or other
covered entity to produce undue hardship, as
defined in subdivision (u) of Section 12926, to
its operation.
(n) For an employer or other entity covered
by this part to fail to engage in a timely, good
faith, interactive process with the employee
or applicant to determine effective reasonable
accommodations, if any, in response to a
request for reasonable accommodation by an
employee or applicant with a known physical
or mental disability or known medical
condition.
(o) For an employer or other entity covered
by this part, to subject, directly or indirectly,
any employee, applicant, or other person to a
test for the presence of a genetic
characteristic.
(p) Nothing in this section shall be
interpreted as preventing the ability of
employers to identify members of the military
or veterans for purposes of awarding a
veteran's preference as permitted by law.

The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
547
81 Appendix I – CCP 1085
Appendix I – Code of Civil Procedure Section 1085

CODE OF CIVIL

PROCEDURE
SECTION 1085
1085. (a) A writ of mandate may be issued by
any court to any inferior tribunal, corporation,
board, or person, to compel the performance
of an act which the law specially enjoins, as a
duty resulting from an office, trust, or station,
or to compel the admission of a party to the
use and enjoyment of a right or office to which
the party is entitled, and from which the party
is unlawfully precluded by that inferior
tribunal, corporation, board, or person.
(b) The appellate division of the superior
court may grant a writ of mandate directed to
the superior court in a limited civil case or
in a misdemeanor or infraction case. Where
the appellate division grants a writ of
mandate directed to the superior court, the
superior court is an inferior tribunal for
purposes of this chapter
The California Labor law above was found at:
http://www.leginfo.ca.gov/calaw.html
548
82 Appendix J
Appendix J – Statement of Compliance
I do hereby certify under penalty of perjury:
(1)
(2)
(a)
(b)
(3)
(4)
(a)
(b)
(c)
REMARKS:

NAME (PLEASE PRINT) TITLE

SIGNATURE DATE
See exceptions noted below.

EXCEPTION CRAFT EXPLANATION
Specified in the applicable wage determination incorporated into the contract; Determined by the Director of Industrial Relations for the county or counties in which the work is performed; That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship Agency.

That fringe benefits as listed in the contract:

Have been or will be paid to the approved plan(s), fund(s), or program(s) for the benefit of listed employee(s), except as below.

Have been paid directly to the listed employee(s), except as noted below. that the classification set forth therein for each laborer or mechanic conforms with the work he or she performed.

That I pay or supervise payment to employees of the above-referenced contractor on the above-referenced contract. All persons employed on said project for the above-reference time period have been paid their full weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said contractor from the full weekly wages earned by any person and that no deductions have been made either directly or indirectly from the full wages earned by an person other than permissable deductions.

CITY OF VISALIA

STATEMENT OF COMPLIANCE
That any payrolls otherwise under this control required to be submitted for the above period are correct and complete; that the wage rates for laborers or mechanics contained therein are not less than the applicable wage rates:

CONTRACTOR/SUBCONTRACTOR CONTRACT/PO NUMBER

FIRST DAY OF WORK ON CONTRACT LAST DAY OF WORK ON CONTRACT 549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
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574
Visalia City Council
Staff Report
Visalia Administration
707 W. Acequia
Visalia, CA 93291
File #: 26-0029 Agenda Date: 7/20/2026 Agenda #: 17.

Agenda Item Wording:

Ordinance authorizing the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Inc. - First reading of Ordinance No. 2026-08 to authorize the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Agenda Date: 07/20/2026
Prepared by: Rehana Lustyan, Senior Project Manager [email protected] 559-713- 4176; Nick Bartsch, Public Works Director [email protected] 559-713-4428 Department Recommendation: Staff recommends that the City Council introduce the first reading of Ordinance No. 2026-08, authorizing the City Manager to award a contract and approve the longterm agricultural ground lease agreement with Correia Custom Farming Inc. for the lease and agricultural management of approximately 408 acres of City-owned open ground farmland, including the agreement's five-year initial term with up to five one-year renewal options, annual rent of $25 per acre, surface-water recharge provisions, groundwater pumping prohibition, lessee responsibility for maintenance and improvements, and other terms and conditions substantially as set forth in Attachment 2 - long-t agricultural ground lease agreement.

Summary:

The City issued Request for Proposals (RFP 25-26-15) for the long-term lease and agricultural management of approximately 408 acres of City-owned open ground near Highway 99 and Highway 198. Correia Custom Farming Inc. submitted the only proposal and was determined to be qualified based on its agricultural experience, knowledge of the property, and ability to manage SGMAcompliant farming and surface-water recharge operations. Staff negotiated a long-term lease that provides a five-year initial term with up to five one-year renewal options, annual rent of $25 per acre, continued agricultural stewardship, groundwater recharge opportunities, and a City allocation equal to ten percent (10%) of qualifying flood-release and storage-release surface water applied to the property. The agreement prohibits groundwater pumping, relies on available surface water for irrigation and recharge, and assigns ongoing maintenance and infrastructure responsibilities to the lessee. Correia Custom Farming Inc was awarded a short-term lease executed in December 2025 and has maintained continuous stewardship of the property which is being temporarily extended at no additional cost to the City until Council considers the long-term agreement. The complete lease terms and conditions are provided in Attachment 2 - Long-Term Agricultural Ground Lease Agreement.

This item is the first reading of Ordinance No. 2026-08, required because the proposed Long-Term Agricultural Ground Lease Agreement exceeds five (5) years in duration. Per Visalia Municipal Code Section 16, “no lease shall be made for a period longer than five years except by ordinance adopted by the Council.”
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Background Discussion:

City-Owned Agricultural Lands
The City of Visalia owns and manages several agricultural properties surrounding the Water Reclamation Facility (WRF), including open ground, pecan orchards, and other historically farmed areas. As part of the City’s broader agricultural land portfolio, the 408-acre open ground parcel has been maintained in active agricultural use to support land stewardship, weed and dust control, and compatibility with WRF operations. SGMA restrictions and evolving water-management conditions have increasingly influenced how these properties can be operated, particularly with respect to groundwater pumping and surface-water availability.

Short-Term Lease (December 2025 - July 2026)
While preparing the long-term RFP, staff conducted an informal solicitation of short-term proposals from local agricultural operators to maintain the property, control weeds and dust, and avoid compliance issues or field degradation. Correia Custom Farming Inc. submitted the most responsive short-term proposal and entered into a short-term Ground Lease Agreement with the City in December 2025.

During performance of the short-term lease, the lessee successfully maintained the property in accordance with the agreement, including wheat production, irrigation infrastructure maintenance, compliance with the prohibition on groundwater pumping, and proper management of authorized surface-water use. The short-term lease provided both the City, and the operator, an opportunity to evaluate long-term operational feasibility under current SGMA requirements while ensuring the property remained in productive agricultural condition.

Under the agreement, the lessee farmed wheat on approximately 405.82 farmable acres, excluding

2.18 acres encumbered by an SCE easement. The lessee paid the City $10,145.50, based on the contractually required rate of $25 per acre. The lease included strict limitations on water use: no groundwater pumping was allowed, surface water could only be applied with prior written City authorization, and City booster pumps were excluded from use unless expressly approved. The lessee maintained all irrigation infrastructure, performed shredding and tilling of crop residue, and kept the land in proper agricultural condition consistent with State and County requirements.

The short-term lease was set to expire on July 1, 2026. To prevent the land from being left without an authorized operator, and to avoid City-incurred weed, dust, and fire-risk mitigation costs, staff recommended a brief extension of the short-term lease at no cost to the City. Because the original lease required full payment up front rather than prorated rent, extending the end date did not change the financial terms or leave any revenue unrealized. During the extension, the operator continued preparing the land for fall/winter cropping at their own risk should Council decline approval of the subject long-term lease. This interim extension ensured continuous maintenance and stabilization of the property at no financial impact to the City.

The short-term lease provided critical operational continuity, prevented land degradation, and allowed both the City and the operator to evaluate long-term feasibility of SGMA-compliant operations.

Long-Term RFP and Negotiated Lease Terms
RFP 25-26-15 sought proposals for a multi-year lease that would:

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· Maintain productive agricultural use
· Support groundwater sustainability through managed recharge · Ensure year-round land stewardship
· Comply with SGMA, ILRP, and local water-district rules · Minimize City maintenance obligations
· Generate stable lease revenue
Correia Custom Farming Inc. submitted the only proposal but demonstrated substantial qualifications, including three decades of local farming experience, prior experience farming the site under the short -term lease, extensive involvement in regional water management (including leadership roles within the Mid-Kaweah Groundwater Sustainability Agency and the Persian-Watson Ditch Company), and demonstrated ability to coordinate effectively with the Tulare Irrigation District on surface-water and recharge operations.

Following receipt of the proposal, City staff conducted multiple coordination meetings with the lessee, and representatives from the Tulare Irrigation District (TID), and the Mid-Kaweah Groundwater Sustainability Agency (MKGSA) to refine operational responsibilities for surface-water delivery, recharge operations, water accounting, dashboard administration, SGMA compliance, and infrastructure feasibility. These discussions confirmed that the proposed lease structure is operationally feasible and can be implemented consistently with applicable agency requirements.

Reclaimed water is not available under this agreement.

The negotiated lease includes a five-year initial term with five one-year renewal options, $25 per-acre annual rent, flexibility for recharge operations, and full lessee responsibility for improvements and long-term stewardship.

While longer-term uses of this property are still under evaluation, the proposed lease provides some revenue, but more importantly, provides for the ongoing maintenance of the property, without utilizing groundwater.

Fiscal Impact including annual maintenance and operating costs:

Lease Revenue: 408 acres × $25/acre = $10,200 annually Projected revenue over full 10-year term (if all renewal years exercised): $102,000 Revenue will be recognized within division 4344 (WWTP Farm)
Water-Credit Value: The City receives 10% of qualifying flood-release surface water applied to the property, which may support SGMA compliance, groundwater recharge, and long-term water-portfolio resilience.

Note: The interim extension of the short-term lease has no fiscal impact.

Prior Council Action: December 18, 2023 - Council directed staff to evaluate long-term uses for City -owned agricultural lands.

Alternatives: Alternative 1 - City Fallowing / Maintenance Scenario (Not Recommended) Under a City-maintained scenario, the approximately 408-acre property would require ongoing weed abatement, field disking, dust control, inspections, and contract administration to remain in Visalia City Council Page 3 of 5 Printed on 7/16/2026
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abatement, field disking, dust control, inspections, and contract administration to remain in compliance with applicable State, County, and San Joaquin Valley Air District requirements. Based on recent Central Valley agricultural operating costs and customary maintenance practices, annual City costs are estimated as follows:

Cost Item Basis Estimated Annual
Cost
Disking (3 passes) Approximately $20-30/acre/pass $30,000 Dust Control / Rule 4550
Compliance
Conservation management
practices and dust suppression
$12,000
Weed & Pest Abatement Mechanical and chemical
vegetation control
$10,000
Staff Oversight & Contract
Administration
Inspections, procurement,
compliance monitoring
$7,500
Total Estimated Annual Cost $59,500
In addition to these direct costs, the City would forgo the opportunity to receive potential groundwater recharge credits associated with the proposed lease, reducing future flexibility in meeting SGMArelated groundwater sustainability objectives. Executing the proposed lease avoids these maintenance expenditures while generating approximately $10,200 in annual lease revenue, resulting in an estimated positive annual fiscal impact of approximately $69,700, exclusive of the long -term benefit of groundwater recharge credits. Recent updates to the San Joaquin Valley Air District's Rule 4550 continue to emphasize conservation management practices to reduce dust emissions from agricultural operations, reinforcing the need for active management of fallowed agricultural lands.

Alternative 2 - Reissue RFP (Not Recommended)
Reissuing the RFP is unlikely to attract additional proposers, would delay operational continuity, and would require the City to assume full maintenance responsibility as described above.

Recommended Motion (and Alternative Motions if expected):

I move to introduce the first reading of Ordinance No. 2026-08, authorizing the City Manager to award a contract and approve the Long-Term Agricultural Ground Lease Agreement with Correia Custom Farming Inc. for the lease and agricultural management of approximately 408 acres of Cityowned open ground farmland, substantially in the form presented in Attachment 2.

Environmental Assessment Status: Not applicable
CEQA Review: Not applicable
Deadline for Action: 07/20/2026
Attachments:

Attachment 1 - Ordinance No. 2026-08 (First Reading)
Attachment 2- Long-Term Open Ground Lease Agreement (with Exhibits A, D, and E) Attachment 2B - Long-Term Open Ground Lease Agreement - Exhibit B Lessee Proposal Attachment 2C - Long-Term Open Ground Lease Agreement - Exhibit C RFP 25-26-15 and Visalia City Council Page 4 of 5 Printed on 7/16/2026
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Addendums
Attachment 3 - Open Ground Land Lease Map
Attachment 4 - Consultant Disclosure Form
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☒
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Organizational
Excellence
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Fiscal
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ORDINANCE NO. 2026-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA

AUTHORIZING THE CITY MANAGER TO EXECUTE A LONG-TERM

AGRICULTURAL GROUND LEASE AGREEMENT FOR
APPROXIMATELY 408 ACRES OF CITY-OWNED OPEN GROUND
(APNs 118-020-036, 118-020-037, AND 119-010-021)
WHEREAS, the City of Visalia owns approximately 408 acres of open-ground agricultural land located near State Highway 99 and State Highway 198, identified as APNs 118-020-036, 118-020-037, and 119-010-021; and
WHEREAS, the City issued Request for Proposals No. 25-26-15 seeking qualified agricultural operators to lease, farm, and conduct SGMA-aligned recharge operations on said property; and
WHEREAS, Correia Custom Farming Inc. submitted a responsive and qualified proposal based on its agricultural experience, prior operation of the property, and demonstrated ability to coordinate with the Tulare Irrigation District and Mid-Kaweah Groundwater Sustainability Agency; and
WHEREAS, the negotiated Long-Term Agricultural Ground Lease Agreement includes a five-year initial term with five one-year renewal options, annual rent of $25 per acre, SGMA-compliant recharge operations, prohibition on groundwater pumping, and full lessee responsibility for maintenance and improvements; and WHEREAS, Visalia Municipal Code Section 16 requires that “no lease shall be made for a period longer than five years except by ordinance adopted by the Council.”; and WHEREAS, the proposed lease exceeds five years and therefore must be approved by ordinance.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VISALIA:

Section 1. Authorization.

The City Manager is hereby authorized to execute, on behalf of the City of Visalia, the Long-Term Agricultural Ground Lease Agreement with Correia Custom Farming Inc. for the lease and agricultural management of APNs 118-020-036, 118-020-037, and 119-010-021, substantially in the form attached as Attachment 3.

Section 2. Effective Date.

This ordinance shall take effect thirty (30) days following its adoption. 580
PASSED AND ADOPTED: BRETT TAYLOR, MAYOR
ATTEST: ___________________________

LESLIE CAVIGLIA, CITY CLERK APPROVED BY CITY ATTORNEY
___________________________

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Ordinance 2026-02 passed and adopted by the Council of the City of Visalia at a regular meeting held on _____________, 2026 and certify a summary of this ordinance will be published in the Visalia Times Delta.

Dated: LESLIE CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
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CITY OF VISALIA

LONG-TERM AGRICULTURAL GROUND LEASE AGREEMENT
408 Acres – Open Ground Near Highway 99 and Highway 198 This Long-Term Agricultural Ground Lease Agreement (“Agreement”) is made and entered into as of this ___ day of __________ 2026, by and between the City of Visalia, a Charter Law City organized under its Charter and the Constitution and laws of the State of California (“LESSOR” or “City”), and Correia Custom Farming, Inc., a California corporation (“LESSEE”). City and Lessee are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. City owns approximately 408 acres of open agricultural land located near State Highway 99 and State Highway 198 in Visalia, Tulare County, California, more particularly described in Exhibit A (“Premises”).

B. City issued Request for Proposals No. 25-26-15 (“RFP”) for the long-term lease and agricultural management of the Premises. Lessee submitted a responsive proposal (“Proposal”), which City accepted.

C. The Parties met with the Tulare Irrigation District (“TID”), Mid-Kaweah Groundwater Sustainability Agency (“MKGSA”), and associated staff to confirm recharge feasibility, water-accounting responsibilities, dashboard administration, and SGMA compliance.

D. The Parties desire to enter into this Agreement to set forth the terms and conditions under which Lessee shall lease, farm, irrigate, and manage the Premises.

NOW, THEREFORE, the Parties agree as follows:

ARTICLE 1. PREMISES

1.1 Premises. City leases to Lessee the Premises described in Exhibit A, which is attached hereto and incorporated herein by this reference, consisting of approximately 408 acres, including all associated rights of ingress, egress, and appurtenances reasonably necessary for agricultural and recharge operations, subject to SCE easements and other encumbrances of record.

1.2 Acreage Adjustment. Acreage is approximate. If a survey or assessor’s records determine materially different farmable acreage, rent shall be adjusted proportionally.

ARTICLE 2. TERM AND RENEWAL

2.1 Initial Term. The initial term is five (5) years beginning on the Commencement Date.

2.2 Renewal Terms. Lessee may request up to five (5) one-year renewal terms (“Renewal Terms”). This Agreement does not automatically renew.

2.3 Mandatory Meet and Confer. At least six (6) months prior to expiration of the Initial Term or any Renewal Term, the Parties shall meet and confer regarding operational performance, recharge activity, water-accounting status, infrastructure needs, and any anticipated City use of the Premises.

2.4 Written Renewal Required. Renewal is effective only upon written agreement executed prior 582
to expiration of the then-current term. Absence of full execution results in expiration without further obligation.

2.5 City Right to Decline Renewal. City may decline renewal without cause.

2.6 City Buyout for Municipal Purpose. City may terminate this Agreement in whole or in part upon twelve (12) months’ written notice if any portion of the Premises is required for a municipal purpose such as water-reclamation facility expansion, solar facilities, or other public projects.

Lessee shall be compensated for unharvested crops, City-retained permanent improvements, and reasonable documented pre-termination input costs.

2.7 Holdover. Any holdover is a month-to-month tenancy at City’s discretion and may be terminated with thirty (30) days’ notice.

ARTICLE 3. RENT

3.1 Base Rent. Lessee shall pay City twenty-five dollars ($25.00) per acre annually, based on 408 acres, for a total annual rent of $10,200, payable in advance on or before the Commencement Date and each anniversary.

3.2 Payment Location. Payments shall be made to the City of Visalia, Finance Department, 707 W Acequia Avenue, Visalia, CA 93291.

3.3 Late Payment. Rent unpaid within thirty (30) days accrues interest at the lesser of ten percent (10%) per annum or the maximum allowed by law.

3.4 No Offset. Rent shall not be offset unless expressly authorized by this Agreement or required by law.

ARTICLE 4. USE OF PREMISES

4.1 Permitted Use. Lessee submitted a proposal (“Proposal”), attached hereto as Exhibit B and incorporated herein by this reference, in response to City’s Request for Proposals No. 25-26-15 (“RFP”), attached hereto as Exhibit C, and incorporated herein by this reference, for the long-term lease and agricultural management of the Premises. Lessee may use the Premises solely for agricultural production, field preparation, surface-water irrigation, and groundwater-recharge operations as set forth further in this agreement and consistent with the terms and conditions set forth in Exhibits B and C.

4.2 Prohibited Uses. Lessee shall not pump groundwater, apply reclaimed water without City approval, house animals, create nuisances, store hazardous materials except as permitted by law, or use City booster pumps without written permission.

4.3 Stewardship. Lessee shall maintain the Premises in productive agricultural condition, including weed control, dust management, stubble shredding, field preparation, and compliance with state and federal requirements.

4.4 Compliance. Lessee shall comply with the statutory and regulatory requirements of the Sustainable Groundwater Management Act (“SGMA”) and the Irrigated Lands Regulatory Program “ILRP”), for the IRLP, as further set forth in Exhibit E, which is attached hereto and incorporated herein by this reference. To the extent Lessee’s activities are regulated by the Mid Kaweah GSA (“MKGSA”) and Tulare Irrigation District (“TID”), Lessee shall be responsible for compliance with all applicable laws and regulations.

4.5 Soil Amendments. Manure and amendments shall comply with ILRP nutrient-management requirements, including setbacks and runoff controls.
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4.6 Recharge Crop Flexibility. Lessee may temporarily forego or reduce crop production to maximize recharge opportunities.

ARTICLE 5. WATER MANAGEMENT AND SGMA COMPLIANCE

5.1 The Parties have discussed the feasibility of the use of and/or recharge of surface water on the Premises, and the appropriate water-accounting responsibilities and SGMA compliance activities required for same, and have agreed to allow for the for the use and/or recharge of surface water under the terms and conditions of this Article 5, and the terms and conditions of Exhibit D, attached hereto and incorporated herein by this reference.

5.2 Dashboard Administration. MKGSA shall assign the Premises to Lessee within the Kaweah Subbasin Water Dashboard. City retains owner status and viewer-only access. APN segmentation shall isolate farmable leased acreage.

5.3 Groundwater Allocation. All dashboard allocations or credits attributable to the Premises during the Term shall accrue to Lessee, subject to MKGSA rules. Groundwater pumping remains prohibited.

5.4 Surface-Water Use. Lessee may apply flood-release water, storage-release water, and independently secured surface water (such as Persian-Watson shares) that do not reduce City supplies.

5.5 City’s Ten Percent (10%) Water Credit. City shall receive ten percent (10%) of the gross head gate diversion of qualifying flood-release or storage-release water applied to the Premises, measured at the head gate located on the Premises (the “Premises Head Gate”).

For the avoidance of doubt, the ten percent (10%) shall be calculated on the volume of qualifying water diverted at the Premises Head Gate and shall exclude any conveyance, transit, seepage, or other water losses occurring in the supply canal or otherwise upstream of the Premises Head Gate.

Independently secured water (e.g., Persian-Watson Ditch Company shares) is excluded.

5.6 Annual and Final Reconciliation. Lessee shall perform annual reconciliations and a final reconciliation upon termination. City’s 10% allocation shall be transferred annually through the district accounting process following each true-up. Dashboard control returns to City at the end of the Term.

5.7 ILRP Compliance. Lessee is solely responsible for all ILRP reporting, testing, and nutrient-management compliance, and as further set forth in Exhibit E.

5.8 Future SGMA Changes. The Parties acknowledge that SGMA rules evolve and agree the operational intent of this Agreement shall remain enforceable notwithstanding changes in terminology or accounting structure.

5.9 GSA Allocation Confirmation Letter. Promptly following the Commencement Date, and in any event within thirty (30) days thereof, the City shall deliver a letter to the Mid-Kaweah Groundwater Sustainability Agency (“MKGSA”) confirming that, during the Term, Lessee shall pay for and receive any allocation attributable to the Premises, and that any allocation credit remaining in the account upon expiration or earlier termination of the Term shall remain in Lessee’s account, to be administered in accordance with the Kaweah Subbasin Water Accounting Framework and applicable MKGSA rules. The City shall reasonably cooperate with Lessee and the MKGSA to give effect to this Section.
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ARTICLE 6. IMPROVEMENTS AND INFRASTRUCTURE

6.1 Lessee Improvements. Lessee may install irrigation pipelines, borders, levees, temporary pump installations, access improvements, or other structures reasonably necessary for farming or recharge. Permanent improvements require City approval.

6.2 Cost Responsibility. All improvements shall be constructed, maintained, and repaired at Lessee’s sole cost.

6.3 Ownership. Removable trade fixtures remain Lessee’s property; permanent improvements become City property unless otherwise agreed.

6.4 Ditch Pumps and Slough Access. Lessee is responsible for repair and operation of existing ditch pumps. Lessee may pump into or out of the slough consistent with agency rules. The temporary construction easement and berm detail referenced in Figures A-1 and A-2 affect portions of the Premises.

6.5 Recharge Infrastructure. Lessee may construct and maintain borders, levees, basins, and temporary conveyance structures for recharge.

6.6 City Responsibility. City has no obligation to provide water, repair pumps, or supply power.

ARTICLE 7. MAINTENANCE, TAXES, AND ASSESSMENTS

7.1 Condition of Premises. Lessee shall keep the Premises in agricultural condition and surrender them in comparable condition upon termination, ordinary wear and tear excepted.

7.2 Maintenance Duties. Lessee shall maintain all irrigation infrastructure, pumps, access roads, and recharge structures.

7.3 Taxes. Lessee shall pay all possessory-interest taxes, ILRP fees, SGMA fees, and assessments related to Lessee’s use and improvements.

7.4 Lessee acknowledges that all possessory-interest taxes applicable to the Premises are calculated by the County based solely on the terms and valuation established in this Agreement and submitted by the City. Lessee shall timely pay all such taxes and shall not contest, appeal, or otherwise challenge the amount assessed. Lessee shall ensure that no lien, encumbrance, or collection action is initiated against the Premises or the City arising from Lessee’s failure to pay any possessory-interest tax or related charge.

ARTICLE 8. INSURANCE AND INDEMNIFICATION

8.1 Insurance. Throughout the term, at Lessee's sole cost and expense, Lessee shall keep or cause to be kept in force, for the mutual benefit of Lessor and Lessee, comprehensive broad form general public liability insurance against claims and liability for personal Injury, death, or property damage arising from the use, occupancy, disuse, or condition of the Premises, improvements, or adjoining areas or ways, providing protection for bodily injury or death to anyone person, at least $1,000,000 for anyone accident or occurrence, and $2,000,000 aggregate. Also throughout the Agreement terms, at Lessee's sole cost and expense, Lessee shall keep or cause to be kept in force, workers' compensation insurance with statutory limits and employer's liability insurance with limits of not less than $1,000,000 per accident.

All insurance required by express provision of this Agreement shall be carried only in responsible insurance companies licensed to do business in the State of California. All such policies shall be nonassessable and shall contain language, to the extent obtainable, to the 585
effect that (1) any loss shall be payable notwithstanding any act or negligence of Lessor that might otherwise result in a forfeiture of the insurance, (2) the insurer waives the right of subrogation against Lessor and against Lessor's agents and representatives, (3) the policies are primary and noncontributing with any insurance that may be carried by Lessor, and (4) they cannot be canceled or materially changed except after 30 days' notice by the insurer to Lessor or Lessor's designated representative. (5) LESSOR shall be named an additional insured.

Lessee shall furnish Lessor with binders representing all insurance required by this Agreement.

Lessee may effect for its own account any insurance not required under this Ground Lease Agreement. Lessee may provide by blanket insurance covering the Premises and any other location or locations any insurance required or permitted under this Agreement provided it is acceptable to all mortgages. Lessee shall deliver to Lessor, in the manner required for notices, copies or certificates of all insurance policies required by this Agreement, together with evidence satisfactory to Lessor of payment required for procurement and maintenance of the policy, within the following limits:
a. For insurance required at the commencement of this Agreement, within 30 days after the execution of this Agreement;
b. For insurance becoming required at a later date, at least 15 days before the requirement takes effect, or as soon thereafter as the requirement, if new, takes effect.
c. For any renewal or replacement of a policy already in existence, at least 30 days before expiration or other termination of the existing policy.

If Lessee fails or refuses to procure or to maintain insurance as required by this Ground Lease Agreement or fails or refuses to furnish Lessor with required proof that the insurance has been procured and is in force and paid for, Lessor shall have the right at Lessor's election and on 5 day notice, to procure and maintain such insurance. The premiums paid Lessor shall be treated as added rent due from Lessee with interest at the rate of 18 percent per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurer or insurers, and interest shall run from the date of the notice.

8.2 Indemnification. LESSEE hereby agrees to and shall protect, indemnify, and hold harmless the LESSOR and all officers, agents, representatives, and employees thereof from any and all liability, claims, or damages of whatsoever kind or character, including attorneys' fees and costs of all types incurred in defense of any of the said parties from said claims or liability, because of or arising out of, directly or indirectly, the acts or omissions of the LESSEE, LESSEE's independent contractors, employees, representatives, agents and invitees, and the passive or active negligent acts or omissions of the LESSOR or its officers, agents, representatives, and employees while acting within the scope of their duties regarding work to be performed pursuant to this Ground Lease Agreement. Said indemnification and hold harmless provisions shall be in full force and effect regardless of whether or not there shall be insurance policies covering and applicable to such damages, claims, or liability. This agreement shall be binding upon the LESSEE whether or not there are any allegations of fault, negligence, or liability of the indemnities hereunder.
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ARTICLE 9. ASSIGNMENT

9.1 Assignment. Lessee may not assign or sublet without City’s prior written consent.

9.2 No Release. Assignment does not release Lessee absent written City approval.

ARTICLE 10. DEFAULT AND REMEDIES

10.1 Events of Default. Default includes failure to pay rent, failure to comply with obligations, abandonment, lapse of insurance, failure to maintain, and SGMA/ILRP violations.

10.2 Remedies. Upon default, City may terminate, re-enter, re-let, use or store Lessee’s property, recover rent and damages, or cure Lessee’s obligations at Lessee’s cost.

10.3 No Waiver. Acceptance of rent is not a waiver.

ARTICLE 11. TERMINATION AND GROWING CROPS

11.1 Termination. This Agreement terminates at the end of the Term, upon default, or City’s municipal-purpose buyout.

11.2 Growing Crops. Lessee may harvest crops planted before termination, subject to conditions.

ARTICLE 12. DISCLOSURE

12.1 Disclosure. Lessee discloses its principal’s roles with Mid-Kaweah GSA and Persian-Watson Ditch Company; Parties confirm arm’s-length negotiation.

ARTICLE 13. NOTICES

13.1 Notices. Notices shall be in writing and delivered personally, by certified mail, or by overnight courier.

Addresses:

City of Visalia, 707 E. Acequia Avenue, Visalia, CA 93291 Copy: Public Works, 7579 Avenue 288, Visalia, CA 93277
Lessee: Correia Custom Farming, Inc., 1434 N. West Street, Tulare, CA 93274 ARTICLE 14. GENERAL PROVISIONS

14.1 Governing Law. California law governs; venue lies in Tulare County.

14.2 Entire Agreement. This Agreement and Exhibits constitute the entire agreement.

14.3 Amendment. Must be in writing.

14.4 Severability. Invalid provisions do not affect remainder.

14.5 Time of Essence. Time is of the essence.

14.6 Counterparts. Electronic signatures permitted.

14.7 Binding Effect. Agreement binds successors and permitted assigns.

SIGNATURES
Lessee: Correia Custom Farming, Inc.

By: ___________________________________
Title: __________________________________
Date: ___________________________________
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City of Visalia
City Manager: ____________________________
Date: ___________________________________
Risk Manager: ____________________________
Date: ___________________________________
City Attorney (Approved as to Form): ________________________ Date: ___________________________________
EXHIBIT A – LEGAL DESCRIPTION, MAP, AND EASEMENT SUMMARY EXHIBIT B – LESSEE PROPOSAL
EXHIBIT C – RFP NO. 25-26-15
EXHIBIT D – WATER ACCOUNTING FRAMEWORK SUMMARY
EXHIBIT E – ILRP NUTRIENT-MANAGEMENT REQUIREMENTS
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EXHIBIT A

LEGAL DESCRIPTION, MAP, AND EASEMENT SUMMARY
(City of Visalia – 408-Acre Open Ground Property)
A-1. Property Identification
The Premises consist of approximately 408 acres of City-owned agricultural open ground located near State Highway 99 and State Highway 198, adjacent to the Visalia Water Reclamation Facility (WRF).

The Premises include the following Assessor’s Parcel Numbers (APNs), as documented on the City’s official parcel map:
 APN 118-020-036
 APN 118-020-037
 APN 119-010-021
These three APNs collectively comprise the lease area.

A-2. Farmable Acreage and SCE Easements
Of the 408 total acres, approximately 405.82 acres are farmable.

The remaining 2.18 acres are excluded due to Southern California Edison easements, as confirmed by City Engineering staff:
 Southern California Edison Easements (Total: 2.18 Acres)  Transmission Pole Easement: 0.76 acres
 Distribution Pole Easement: 0.08 acres
 Temporary Construction Easement: 1.34 acres
 Total Excluded Acreage: 2.18 acres
These acreages were provided by the City of Visalia Senior Civil Engineer, Eric Bons, P.E., in the November 2025 correspondence regarding the Hwy-99 & Ave 280 Interchange project.

A-3. Exhibit A Map
The official City map titled:
“Visalia Water Reclamation Facility – Open Ground Land Lease Map” showing:
• APN boundaries
• City limits
• Section 1 (163 acres)
• Section 2 (96 acres)
• Section 3 (149 acres)
is incorporated herein and attached as Exhibit A – Map (next page):
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A-4. Berm Detail Related to Temporary Construction Easement The earth berm detail prepared for Caltrans’ contractor (Granite Construction Co.) titled:
“BERM DETAIL – N.T.S. – 7/28/2025”
is incorporated into this exhibit to document construction restrictions and the boundary of the SCE temporary construction easement.

This detail appears here:

City staff confirmed that:
• The berm was proposed for the purpose of preventing irrigation or flood water from entering the Caltrans construction area.
• If constructed, it must be removed and the area regraded to existing conditions following completion of work.
• The berm location corresponds to the temporary construction easement included in the 2.18 acres of excluded land.

A-5. Summary Table
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Category Acres Notes
Total Parcel Acreage 408.00 From City parcel map
Total Farmable Acreage 405.82 After removing SCE easements Transmission Pole Easement 0.76 Excluded
Distribution Pole Easement 0.08 Excluded
Temporary Construction Easement 1.34 Excluded
Total Easement Acreage Excluded 2.18 Confirmed by City Engineering A-6. Effect on Lease
The acreage described herein establishes:
• The rent basis (408 acres)
• The farmable acreage (405.82 acres)
• The excluded acreage (2.18 acres, not available for farming or surface-water application) • Boundaries for planting, recharge operations, and maintenance obligations

EXHIBIT B

LESSEE PROPOSAL
592

EXHIBIT C
RFP-25-26-15
RFP-25-26-15A1
RFP-25-26-15A2
593

EXHIBIT D

WATER ACCOUNTING FRAMEWORK SUMMARY
This summary captures the operational, accounting, and administrative framework confirmed by the City, TID, MKGSA, and the Lessee during the June 4, 2026 meeting.

D-1. Dashboard & APN Administration
594
• Premises assigned to Lessee as operator in Kaweah Subbasin Water Dashboard. • City retains owner role.
• APN segmentation isolates farmable acreage from non-leased portions. • Dashboard supports separation of operator and owner information. • City may maintain viewer-only access.

D-2. Water Accounts
• Lessee manages Water Account No. 16 components associated with the Premises. • City retains Water Account No. 1562 for City portfolio management.

D-3. City’s 10% Annual Water Credit
• Applies only to qualifying storage-release and flood-release water. • Calculated from the head gate diversion measured at the head gate located on the Premises (the “Premises Head Gate”), excluding any conveyance, transit, seepage, or other supply‑canal losses occurring upstream of the Premises Head Gate.
• Excludes independently secured water (e.g., Persian-Watson shares). • District leave-behind does not reduce City’s 10% calculation. • Accounting logs maintained by Lessee.

D-4. Annual and End-of-Term True-Up
• Lessee performs annual reconciliations.
• City receives 10% annual share.
• Final reconciliation upon termination.
• Dashboard control returns to City following reconciliation. • Remaining operator credits revert to Lessee per MKGSA rules.

D-5. Surface Water & Recharge Operations
• Operational feasibility confirmed for:
– existing ditch pumps;
– pumping into slough and lifting;
– borders and levees;
– recharge infiltration;
– coordination with pecan orchard users where applicable. • Recharge dependent on hydrology, infrastructure capacity, operator readiness.

D-6. SGMA, GSP, Basin Administration
• Property located within surface-water-eligible area.
• Accounting, pumping limitations, and transfer rules vary by GSA. • Lease language must remain adaptable due to evolving SGMA terminology. 595

EXHIBIT E

ILRP NUTRIENT-MANAGEMENT REQUIREMENTS
This Exhibit summarizes the Irrigated Lands Regulatory Program (ILRP) obligations applicable to the leased acreage.

E-1. ILRP Compliance Is Solely Lessee’s Responsibility
Lessee is responsible for:
596
• Enrollment in the appropriate coalition (KBWQA).
• Annual Member Dues to coalition.
• Farm Evaluations and Annual Reporting.
• Nitrogen Management Plan (NMP) and Summary Reports.
• Soil sampling and nutrient budgeting.
• Irrigation and nitrogen-use reporting.
• Setback distances from watercourses.
• Field runoff controls and erosion prevention.
• Documentation retention for a minimum of 7 years.

E-2. Manure Application Standards
Manure applications must comply with:
• ILRP nutrient-application limits;
• Total nitrogen budgeting;
• Soil testing before and after application;
• Proper setback distances;
• No discharge of manure to surface waters;
• Winter application restrictions where applicable.

E-3. Coalition & Regulatory Reporting
Lessee shall timely submit:
• Annual ILRP reporting;
• Any required third-party documentation;
• Field-specific nitrogen reporting;
• Documentation required by CVRWQCB.

E-4. City Access to Records
Upon request, Lessee shall provide the City:
• NMPs (summaries, not proprietary details);
• Annual ILRP compliance confirmations;
• Soil test summaries;
• Records demonstrating compliance.
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599
600
601
602
603
604
605
606
607
608
609
610
611

CITY OF VISALIA, CA

REQUEST FOR PROPOSALS
RFP NO. 25-26-15

CITY OF VISALIA OPEN GROUND LAND LEASE
DESCRIPTION:

The City of Visalia is soliciting proposals from qualified individuals or entities to lease approximately 408 acres of Cityowned open land. The property is located east of State Highway 99 and along State Highway 198 in the City of Visalia, County of Tulare, and is available under a long-term Ground Lease agreement. The selected lessee will be responsible for managing the Premises in a manner that preserves its condition, complies with all applicable laws, and aligns with the terms of the lease. The Premises includes all land and appurtenances unless otherwise specified.

Booster pumps located on the site are excluded from the lease and remain the exclusive property of the City. This lease represents an opportunity for qualified parties to secure use of City-owned land under a mutually beneficial agreement.

PROPOSER CONFERENCE:

On Monday, March 16, 2026, an informational teleconference will be held beginning at 10:00 a.m. at the Visalia Reclamation Facility, 7579 Ave 288, Visalia, CA 93277. Interested proposers are encouraged to participate. This is a time to ask questions about the project work and contract requirements.

SUBMITTAL DEADLINE:

One (1) unbound original, four (4) copies, and one digital copy on USB must be received no later than: 1:00 p.m. on Thursday, April 2, 2026.

SUBMITTAL INSTRUCTIONS:

Addressed to: Purchasing Division
707 W. Acequia Avenue, Visalia, CA 93291
From: Proposer’s Name & Mailing Address
Mark envelope: RFP No. 25-26-15

CITY OF VISALIA OPEN GROUND LAND LEASE
Emailed submittals will not be accepted. Proposals received after the time and date stated above shall be returned unopened to the proposer.

Please note that City office hours are Monday -Thursday 7:30am-5:00pm. We are Closed on Fridays and City recognized Holidays. Proposers shall not schedule delivery of proposals/submittals on Fridays as they will not be received when the office is closed. It is the responsibility of the Proposer to schedule deliveries during the City’s open office hours.

INQUIRIES: Direct questions for clarification of this document to Purchasing Division (559) 713-4334, or email [email protected]. To prevent misinterpretation, the Purchasing Division requests that all questions regarding the scope of services be addressed in writing via email. Questions may be asked at any time prior to, but no later than Monday, March 23, 2026.
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City of Visalia’s Open Ground Land Lease
RFP NO. 25-26-15

Page 2 of 36 ends

Visalia City CouncilJuly 20, 2026

Visalia City Council
July 20, 2026