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EXHIBIT 2 <br />3. Every employee who works on the proposed subgrant agreement will: <br />i. receive a copy of the company's drug -free workplace policy statement; and, <br />ii. agree to abide by the terms of the company's statement as a condition of <br />employment on the subgrant agreement. <br />4. Failure to comply with these requirements may result in suspension of payments <br />under this subgrant agreement or termination of the subgrant agreement or both <br />and Subrecipient may be ineligible for award of any future subgrant agreements <br />if the Pass -through Entity determines that any of the following has occurred: the <br />Subrecipient has made false certification; or violated the certification by <br />failing to carry out the requirements as noted above. (Gov. Code § 8350 et seq.) <br />h. Expatriate Corporations: Subrecipient hereby declares that it is not an expatriate <br />corporation or subsidiary of an expatriate corporation within the meaning of Public <br />Contract Code §§ 10286 and 10286.1, and is eligible to contract with the State of <br />California. <br />i. Priority Hiring considerations: If this subgrant agreement includes services in <br />excess of $200,000, the Subrecipient shall give priority consideration in filling <br />vacancies in positions funded by the subgrant agreement to qualified recipients of <br />aid under Welfare and Institutions Code § 11200 in accordance with Pub. Contract Code <br />§ 10353. <br />j. Sweatfree Code of Conduct: <br />1. All Subrecipients contracting for the procurement or laundering of apparel, <br />garments or corresponding accessories, or the procurement of equipment, <br />materials, or supplies, other than procurement related to a public works <br />contract, declare under penalty of perjury that no apparel, garments or <br />corresponding accessories, equipment, materials, or supplies furnished to the <br />state pursuant to this subgrant agreement have been laundered or produced in <br />whole or in part by sweatshop labor, forced labor, convict labor, indentured <br />labor under penal sanction, abusive forms of child labor or exploitation of <br />children in sweatshop labor, or with the benefit of sweatshop labor, forced <br />labor, convict labor, indentured labor under penal sanction, abusive forms of <br />child labor or exploitation of children in sweatshop labor. The Subrecipient <br />further declares under penalty of perjury that they adhere to the Sweatfree Code <br />of Conduct as set forth on the California Department of Industrial Relations <br />website located at www.dir.ca.gov, and Public Contract Code § 6108. <br />2. The Subrecipient agrees to cooperate fully in providing reasonable access to the <br />Subrecipient's records, documents, agents or employees, or premises if <br />reasonably required by authorized officials of the contracting agency, the <br />Department of Industrial Relations, or the Department of Justice to determine the <br />contractor's compliance with the requirements under paragraph (1). <br />k. Child Support Compliance: For any Agreement in excess of $100,000, the Subrecipient <br />acknowledges in accordance with Public Contract Code § 7110, that: <br />1. The Subrecipient recognizes the importance of child and family support <br />obligations and shall fully comply with all applicable state and federal laws <br />relating to child and family support enforcement, including, but not limited to, <br />disclosure of information and compliance with earnings assignment orders, as <br />provided in Chapter 8 (commencing with § 5200) of Part 5 of Division 9 of the <br />Family Code; and <br />2. The Subrecipient, to the best of its knowledge is fully complying with the <br />earnings assignment orders of all employees and is providing the names of all new <br />employees to the New Hire Registry maintained by the Pass -through Entity. <br />I. Air/Water Pollution violation certification: Under the State laws, the Subrecipient <br />shall not be: <br />1. in violation of any order or resolution not subject to review promulgated by the <br />State Air Resources Board or an air pollution control district; <br />Page 8 of 14 <br />