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STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor DEPARTMENT OF INDUSTRIAL RELATIONS �. Office of the Director -Legal Unit 160 Promenade Circle, Suite 330; Sacramento, CA 95834 .F '_ Tel: (916) 928 -3184 Fax: (916) 928-3196 February 28, 2014 Marcia Huizar Clerk of the Council 20 Civic Center Plaza, M -30 Santa Ana, CA 92869 Subject: State Funding Restriction for Charter Cities Dear Ms. Huizar, On October 13, 2013, Governor Brown signed Senate Bill 7 into law. Senate Bill 7 facilitated the addition of Section 1782 to the California Labor Code. The new law restricts state funding or financial assistance to cities that are not in compliance with California's prevailing wage laws. It also requires the Director of Industrial Relations to maintain a list of charter cities that may receive state funding or financial assistance for their construction projects. A copy of the law is enclosed for your convenience. Section 1782 of the Labor Code prohibits charter cities from receiving or using state funding or financial assistance for a construction project unless the city requires contractors on its public works to comply with California's prevailing wage requirements. Specifically, charter cities may receive state funding or financial assistance if the city has a local prevailing wage ordinance, applicable to all of its public works contracts, that includes requirements that are equal to or greater than the state's prevailing wage requirements. Section 1782 excludes 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. The law does not apply to funding that was awarded or bids advertised or awarded prior to January 1, 2015. In order to add your city to the list of charter cities that are in compliance with the law and are therefore eligible to receive state funding or financial assistance for construction projects, please confirm that your city has or intends to pass an ordinance that will facilitate compliance with Labor Code section 1782,.Please advise if your city intends to comply in another manner and believes it is or will be eligible for state funding. This information can be e- mailed to aber ingdir.ca.gov or faxed to (916) 928 -3196. If e -mail or fax is unavailable, the information can be mailed to: Department of Industrial Relations, Office of the Director -Legal Unit, Attn: Special Investigator Arnie E. Bergin, 160 Promenade Circle, Suite 330, Sacramento, CA 95834. If you have any questions, feel free to contact me at (916) 928 -3186. Sincerely, Arnie E. Bergin Special Investigator Enclosure ' • y