Amended in Assembly April 18, 2016

Senate BillNo. 693


Introduced by Senator Hueso

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(Principal coauthor: Assembly Member Ridley-Thomas)

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February 27, 2015


An act to amendbegin delete Section 25205 of the Public Resources Code, relating to the State Energy Resources Conservation and Development Commission.end deletebegin insert Sections 17250.25 and 17407.5 of the Education Code, and to amend Sections 20119.1, 20119.3, and 20155.4 of, to repeal Section 20155.2 of, and to add Chapter 2.9 (commencing with Section 2600) to Part 1 of Division 2 of, the Public Contract Code, relating to employment.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 693, as amended, Hueso. begin deleteState Energy Resources Conservation and Development Commission: qualifications: conflicts of interest. end deletebegin insertPublic contracts: skilled and trained workforce.end insert

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Existing law establishes specific instances where a public entity is required to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project.

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This bill would establish provisions to be generally applicable when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. The bill would also authorize a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce to complete a contract or project.

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Existing law relating to school facilities provides for the lease of property and prohibits the governing board of a school district from entering into specific lease agreements for the construction of buildings for the use of the school district with any entity unless the entity provides to the governing board an enforceable commitment that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades.

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Existing law relating to school facilities, operative July 1, 2016, and until January 1, 2025, also authorizes a school district, with the approval of the governing board of the school district, to procure design-build contracts for certain public works projects, as provided, and prohibits a design-build entity from being prequalified or shortlisted unless the entity provides a similar enforceable commitment to the school district with respect to the use of a skilled and trained workforce.

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Existing law, until January 1, 2021, establishes a pilot program to authorize the Los Angeles Unified School District to use a best value procurement method for bid evaluation and selection for certain public projects (LAUSD pilot program). The LAUSD pilot program precludes the prequalification or shortlisting of a best value entity unless the entity provides a similar enforceable commitment to the governing board of the district with respect to the use of a skilled and trained workforce.

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Existing law establishes a pilot program to allow the Counties of Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano, and Yuba to select a bidder on the basis of best value, as defined, for specific construction projects (pilot program for counties). The pilot program for counties precludes the prequalification or shortlisting of a best value contractor unless the contractor provides a similar enforceable commitment to the county with respect to the use of a skilled and trained workforce.

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begin insertThis bill would revise those provisions specifically applicable to school facilities, the LAUSD pilot program, and the pilot program for counties to require, instead, an enforceable commitment for the use of a skilled and trained workforce in accordance with the above-described generally applicable provisions for the use of a skilled and trained workforce, unless there is a prescribed project labor agreement.end insert

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The bill, except as specified, would not apply to contracts advertised for bid or awarded before January 1, 2016.

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The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

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This bill would make legislative findings to that effect.

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Existing law establishes the State Energy Resources Conservation and Development Commission, commonly known as the Energy Commission. Existing law prescribes certain qualifications for members of the Energy Commission, including a prohibition against receiving a substantial portion of income from specified energy-related entities in the 2 years preceding appointment to the Energy Commission. Existing law prohibits members of the Energy Commission from being employed by an electric utility or applicant or, within 2 years after the member ceases to be a member of the Energy Commission, a person who engages in the sale or manufacture of a major component of a facility. Existing law prohibits a member of the Energy Commission from holding any other elected or appointed public office or position, except as specified. Existing law prohibits persons with specified relationships to a member or employee of the Energy Commission from appearing in proceedings and other matters in which the Energy Commission is a party or has a direct and substantial interest. Existing law prohibits a member or employee of the Energy Commission from participating personally and substantially as a member or employee of the Energy Commission in particular matters in which to his or her knowledge, he or she, his or her spouse, minor child, or partner, or any organization in which he or she is serving, or has served, has a direct or indirect financial interest. Existing law makes the violation of these provisions a felony subject to fine of not more than $10,000 or imprisonment, or both.

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This bill would increase the maximum fine to $50,000 for a violation of those provisions.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17250.25 of the end insertbegin insertEducation Codeend insertbegin insert, as added
2by Section 2 of Chapter 752 of the Statutes of 2015, is amended
3to read:end insert

4

17250.25.  

The procurement process for design-build projects
5shall progress as follows:

P4    1(a) (1) The school district shall prepare a set of documents
2setting forth the scope and estimated price of the project. The
3documents may include, but are not limited to, the size, type, and
4desired design character of the project, performance specifications
5covering the quality of materials, equipment, workmanship,
6preliminary plans or building layouts, or any other information
7deemed necessary to describe adequately the school district’s
8needs. The performance specifications and any plans shall be
9prepared by a design professional who is duly licensed and
10registered in California.

11(2) The documents shall not include a design-build-operate
12contract for a project. The documents, however, may include
13operations during a training or transition period, but shall not
14include long-term operations for a project.

15(b) The school district shall prepare and issue a request for
16qualifications in order to prequalify, or develop a short-list of, the
17design-build entities whose proposals shall be evaluated for final
18selection. The request for qualifications shall include, but is not
19limited to, all of the following elements:

20(1) Identification of the basic scope and needs of the project or
21contract, the expected cost range, the methodology that will be
22used by the school district to evaluate proposals, the procedure for
23final selection of the design-build entity, and any other information
24deemed necessary by the school district to inform interested parties
25of the contracting opportunity.

26(2) Significant factors that the school district reasonably expects
27to consider in evaluating qualifications, including technical design
28and construction expertise, acceptable safety record, and all other
29nonprice-related factors.

30(3) A standard template request for statements of qualifications
31prepared by the school district. In preparing the standard template,
32the school district may consult with the construction industry, the
33building trades and surety industry, and other school districts
34interested in using the authorization provided by this chapter. The
35template shall require the following information:

36(A) If the design-build entity is a privately held corporation,
37limited liability company, partnership, or joint venture, a listing
38of all of the shareholders, partners, or members known at the time
39of statement of qualification submission who will perform work
40on the project.

P5    1(B) Evidence that the members of the design-build team have
2completed, or demonstrated the experience, competency, capability,
3and capacity to complete, projects of similar size, scope, or
4complexity, and that the proposed key personnel have sufficient
5experience and training to competently manage and complete the
6design and construction of the project, and a financial statement
7that ensures that the design-build entity has the capacity to
8complete the project.

9(C) The licenses, registration, and credentials required to design
10and construct the project, including, but not limited to, information
11on the revocation or suspension of any license, credential, or
12registration.

13(D) Evidence that establishes that the design-build entity has
14the capacity to obtain all required payment and performance
15bonding, liability insurance, and errors and omissions insurance.

16(E) Information concerning workers’ compensation experience
17history and a worker safety program.

18(F) If the proposed design-build entity is a corporation, limited
19liability company, partnership, joint venture, or other legal entity,
20a copy of the organizational documents or agreement committing
21to form the organization.

22(G) An acceptable safety record. A proposer’s safety record
23shall be deemed acceptable if its experience modification rate for
24the most recent three-year period is an average of 1.00 or less, and
25its average total recordable injury or illness rate and average lost
26work rate for the most recent three-year period does not exceed
27the applicable statistical standards for its business category, or if
28the proposer is a party to an alternative dispute resolution system,
29as provided for in Section 3201.5 of the Labor Code.

30(4) (A) The information required under this subdivision shall
31be certified under penalty of perjury by the design-build entity and
32its general partners or joint venture members.

33(B) Information required under this subdivision that is not
34otherwise a public record under the California Public Records Act
35(Chapter 3.5 (commencing with Section 6250) of Division 7 of
36Title 1 of the Government Code) shall not be open to public
37inspection.

38(c) begin insert(1)end insertbegin insertend insertA design-build entity shall not be prequalified or
39shortlisted unless the entity provides an enforceable commitment
40to the school district that the entity and its subcontractors at every
P6    1tier will use a skilled and trained workforce to perform all work
2on the project or contract that falls within an apprenticeable
3occupation in the building and constructionbegin delete trades.end deletebegin insert trades, in
4accordance with Chapter 2.9 (commencing with Section 2600) of
5Part 1 of Division 2 of the Public Contract Code.end insert

begin delete

6(1) For purposes of this subdivision:

7(A) “Apprenticeable occupation” means an occupation for which
8the Chief of the Division of Apprenticeship Standards had approved
9an apprenticeship program pursuant to Section 3075 of the Labor
10Code before January 1, 2014.

11(B) “Skilled and trained workforce” means a workforce that
12meets all of the following conditions:

13(i) All the workers are either skilled journeypersons or
14apprentices registered in an apprenticeship program approved by
15the Chief of the Division of Apprenticeship Standards.

16(ii) (I) As of July 1, 2016, at least 20 percent of the skilled
17journeypersons employed to perform work on the contract or
18project by the entity and each of its subcontractors at every tier
19are graduates of an apprenticeship program for the applicable
20occupation that was either approved by the Chief of the Division
21of Apprenticeship Standards pursuant to Section 3075 of the Labor
22Code or located outside California and approved for federal
23purposes pursuant to the apprenticeship regulations adopted by
24the federal Secretary of Labor.

25(II) As of July 1, 2017, at least 30 percent of the skilled
26journeypersons employed to perform work on the contract or
27project by the entity and each of its subcontractors at every tier
28are graduates of an apprenticeship program for the applicable
29occupation that was either approved by the Chief of the Division
30of Apprenticeship Standards pursuant to Section 3075 of the Labor
31 Code or located outside California and approved for federal
32purposes pursuant to the apprenticeship regulations adopted by
33the federal Secretary of Labor.

34(III) As of July 1, 2018, at least 40 percent of the skilled
35journeypersons employed to perform work on the contract or
36project by the entity and each of its subcontractors at every tier
37are graduates of an apprenticeship program for the applicable
38occupation that was either approved by the Chief of the Division
39of Apprenticeship Standards pursuant to Section 3075 of the Labor
40Code or located outside California and approved for federal
P7    1purposes pursuant to the apprenticeship regulations adopted by
2the federal Secretary of Labor.

3(IV) As of July 1, 2019, at least 50 percent of the skilled
4journeypersons employed to perform work on the contract or
5project by the entity and each of its subcontractors at every tier
6are graduates of an apprenticeship program for the applicable
7occupation that was either approved by the Chief of the Division
8of Apprenticeship Standards pursuant to Section 3075 of the Labor
9Code or located outside California and approved for federal
10purposes pursuant to the apprenticeship regulations adopted by
11the federal Secretary of Labor.

12(V) As of July 1, 2020, at least 60 percent of the skilled
13journeypersons employed to perform work on the contract or
14project by the entity and each of its subcontractors at every tier
15are graduates of an apprenticeship program for the applicable
16occupation that was either approved by the Chief of the Division
17of Apprenticeship Standards pursuant to Section 3075 of the Labor
18Code or located outside California and approved for federal
19purposes pursuant to the apprenticeship regulations adopted by
20the federal Secretary of Labor.

21(iii) For an apprenticeable occupation in which no apprenticeship
22program had been approved by the Chief of the Division of
23Apprenticeship Standards before January 1, 1995, up to one-half
24of the graduation percentage requirements of clause (ii) may be
25satisfied by skilled journeypersons who commenced working in
26the apprenticeable occupation prior to the chief’s approval of an
27apprenticeship program for that occupation in the county in which
28the project is located.

29(C) “Skilled journeyperson” means a worker who either:

30(i) Graduated from an apprenticeship program for the applicable
31occupation that was approved by the Chief of the Division of
32Apprenticeship Standards or located outside California and
33approved for federal purposes pursuant to the apprenticeship
34regulations adopted by the federal Secretary of Labor.

35(ii) Has at least as many hours of on-the-job experience in the
36applicable occupation as would be required to graduate from an
37apprenticeship program for the applicable occupation that is
38approved by the chief.

P8    1(2) An entity’s commitment that a skilled and trained workforce
2will be used to perform the project or contract may be established
3by any of the following:

4(A) The entity’s agreement with the school district that the entity
5and its subcontractors at every tier will comply with the
6requirements of this subdivision and that the entity will provide
7the school district with evidence, on a monthly basis while the
8project or contract is being performed, that the entity and its
9subcontractors are complying with the requirements of this
10subdivision.

11(B) If the school district has entered into a project labor
12agreement that will bind all contractors and subcontractors
13performing work on the project or contract and that includes the
14requirements of this subdivision, the entity’s agreement that it will
15become a party to that project labor agreement.

16(C) Evidence that the entity has entered into a project labor
17agreement that includes the requirements of this subdivision and
18that will bind the entity and all its subcontractors at every tier
19performing the project or contract.

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20
(2) This subdivision shall not apply if either:

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21
(A) The school district has entered into a project labor
22agreement that will bind all contractors and subcontractors
23performing work on the project or contract and the entity agrees
24to be bound by that project labor agreement.

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25
(B) The entity has entered into a project labor agreement that
26will bind the entity and all its subcontractors at every tier
27performing the project or contract.

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28
(3) For purposes of this subdivision, “project labor agreement”
29has the same meaning as in paragraph (1) of subdivision (b) of
30Section 2500 of the Public Contract Code.

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31(d) Based on the documents prepared as described in subdivision
32(a), the school district shall prepare a request for proposals that
33invites prequalified or short-listed entities to submit competitive
34sealed proposals in the manner prescribed by the school district.
35The request for proposals shall include, but need not be limited
36to, the following elements:

37(1) Identification of the basic scope and needs of the project or
38contract, the estimated cost of the project, the methodology that
39will be used by the school district to evaluate proposals, whether
40the contract will be awarded on the basis of low bid or best value,
P9    1and any other information deemed necessary by the school district
2to inform interested parties of the contracting opportunity.

3(2) Significant factors that the school district reasonably expects
4to consider in evaluating proposals, including, but not limited to,
5cost or price and all nonprice-related factors.

6(3) The relative importance or the weight assigned to each of
7the factors identified in the request for proposals.

8(4) Where a best value selection method is used, the school
9district may reserve the right to request proposal revisions and
10hold discussions and negotiations with responsive proposers, in
11which case the school district shall so specify in the request for
12proposals and shall publish separately or incorporate into the
13request for proposals applicable procedures to be observed by the
14school district to ensure that any discussions or negotiations are
15conducted in good faith.

16(e) For those projects utilizing low bid as the final selection
17method, the competitive bidding process shall result in lump-sum
18bids by the prequalified or short-listed design-build entities, and
19awards shall be made to the design-build entity that is the lowest
20responsible bidder.

21(f) For those projects utilizing best value as a selection method,
22the design-build competition shall progress as follows:

23(1) Competitive proposals shall be evaluated by using only the
24criteria and selection procedures specifically identified in the
25 request for proposals. The following minimum factors, however,
26shall be weighted as deemed appropriate by the school district:

27(A) Price, unless a stipulated sum is specified.

28(B) Technical design and construction expertise.

29(C) Life-cycle costs over 15 or more years.

30(2) Pursuant to subdivision (d), the school district may hold
31discussions or negotiations with responsive proposers using the
32process articulated in the school district’s request for proposals.

33(3) When the evaluation is complete, the responsive proposers
34shall be ranked based on a determination of value provided,
35provided that no more than three proposers are required to be
36ranked.

37(4) The award of the contract shall be made to the responsible
38design-build entity whose proposal is determined by the school
39district to have offered the best value to the public.

P10   1(5) Notwithstanding any other provision of law, upon issuance
2of a contract award, the school district shall publicly announce its
3award, identifying the design-build entity to which the award is
4made, along with a statement regarding the basis of the award.

5(6) The statement regarding the school district’s contract award,
6described in paragraph (5), and the contract file shall provide
7sufficient information to satisfy an external audit.

8begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 17407.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
9read:end insert

10

17407.5.  

(a) The governing board of a school district shall not
11enter into an agreement pursuant to Section 17406 or 17407 with
12any entity unless the entity provides to the governing board of the
13school district an enforceable commitment that the entity and its
14subcontractors at every tier will use a skilled and trained workforce
15to perform all work on the project or contract that falls within an
16apprenticeable occupation in the building and constructionbegin delete trades.end delete
17
begin insert trades, in accordance with Chapter 2.9 (commencing with Section
182600) of Part 1 of Division 2 of the Public Contract Code.end insert

begin delete

19(b) For purposes of this section:

20(1) “Apprenticeable occupation” means an occupation for which
21the Chief of the Division of Apprenticeship Standards of the
22Department of Industrial Relations had approved an apprenticeship
23program pursuant to Section 3075 of the Labor Code before
24January 1, 2014.

25(2) “Chief” means the Chief of the Division of Apprenticeship
26Standards of the Department of Industrial Relations.

27(3) “Skilled and trained workforce” means a workforce that
28meets all of the following conditions:

29(A) All the workers are either skilled journeypersons or
30apprentices registered in an apprenticeship program approved by
31the chief.

32(B) (i) As of January 1, 2016, at least 30 percent of the skilled
33journeypersons employed to perform work on the contract or
34project by the entity and each of its subcontractors at every tier
35are graduates of an apprenticeship program for the applicable
36occupation that was either approved by the chief pursuant to
37Section 3075 of the Labor Code or located outside California and
38approved for federal purposes pursuant to the apprenticeship
39regulations adopted by the federal Secretary of Labor.

P11   1(ii) As of January 1, 2017, at least 40 percent of the skilled
2journeypersons employed to perform work on the contract or
3project by the entity and each of its subcontractors at every tier
4are graduates of an apprenticeship program for the applicable
5occupation that was either approved by the chief pursuant to
6Section 3075 of the Labor Code or located outside California and
7approved for federal purposes pursuant to the apprenticeship
8regulations adopted by the federal Secretary of Labor.

9(iii) As of January 1, 2018, at least 50 percent of the skilled
10journeypersons employed to perform work on the contract or
11project by the entity and each of its subcontractors at every tier
12are graduates of an apprenticeship program for the applicable
13occupation that was either approved by the chief pursuant to
14Section 3075 of the Labor Code or located outside California and
15approved for federal purposes pursuant to the apprenticeship
16regulations adopted by the federal Secretary of Labor.

17(iv) As of January 1, 2019, at least 60 percent of the skilled
18journeypersons employed to perform work on the contract or
19project by the entity and each of its subcontractors at every tier
20are graduates of an apprenticeship program for the applicable
21occupation that was either approved by the chief pursuant to
22Section 3075 of the Labor Code or located outside California and
23approved for federal purposes pursuant to the apprenticeship
24regulations adopted by the federal Secretary of Labor.

25(C) For an apprenticeable occupation in which no apprenticeship
26program had been approved by the chief before January 1, 1995,
27up to one-half of the graduation percentage requirements of
28subparagraph (B) may be satisfied by skilled journeypersons who
29commenced working in the apprenticeable occupation before the
30chief’s approval of an apprenticeship program for that occupation
31in the county in which the project is located.

32(4) “Skilled journeyperson” means a worker who either:

33(A) Graduated from an apprenticeship program for the applicable
34occupation that was approved by the chief or located outside
35California and approved for federal purposes pursuant to the
36apprenticeship regulations adopted by the federal Secretary of
37Labor.

38(B) Has at least as many hours of on-the-job experience in the
39applicable occupation as would be required to graduate from an
P12   1apprenticeship program for the applicable occupation that is
2approved by the chief.

3(c) An entity’s commitment that a skilled and trained workforce
4will be used to perform the project or contract may be established
5by any of the following:

6(1) (A) The entity’s agreement with the governing board of the
7school district that the entity and its subcontractors at every tier
8will comply with the requirements of this section and that the entity
9will provide to the governing board of the school district, on a
10monthly basis while the project or contract is being performed, a
11report demonstrating that the entity and its subcontractors are
12complying with the requirements of this section.

13(B) If the entity fails to provide to the governing board of the
14school district the monthly report pursuant to subparagraph (A),
15the governing board of the school district shall immediately cease
16making payments to the entity pursuant to the instrument or
17agreement described in Section 17406 or 17407.

18(C) The monthly report provided to the governing board of the
19school district pursuant to this paragraph shall be a public record
20under the California Public Records Act (Chapter 3.5 (commencing
21with Section 6250) of Division 7 of Title 1 of the Government
22Code), and shall be open to public inspection.

23(2) If the governing board of a school district has entered into
24a project labor agreement that will bind all contractors and
25subcontractors performing work on the project or contract and that
26includes the requirements of this section, the entity’s agreement
27that it will become a party to that project labor agreement.

28(3) Evidence that the entity has entered into a project labor
29agreement that includes the requirements of this section and that
30will bind the entity and all its subcontractors at every tier
31performing the project or contract.

end delete
begin insert

32
(b) Subdivision (a) shall not apply if either:

end insert
begin insert

33
(1) The governing board of the school district has entered into
34a project labor agreement that will bind all contractors and
35subcontractors performing work on the project or contract and
36the entity agrees to be bound by that project labor agreement.

end insert
begin insert

37
(2) The entity has entered into a project labor agreement that
38will bind the entity and all its subcontractors at every tier
39performing the project or contract.

end insert
begin insert

P13   1
(c) For purposes of this section, “project labor agreement” has
2the same meaning as in paragraph (1) of subdivision (b) of Section
32500 of the Public Contract Code.

end insert
4begin insert

begin insertSEC. 3.end insert  

end insert

begin insertChapter 2.9 (commencing with Section 2600) is added
5to Part 1 of Division 2 of the end insert
begin insertPublic Contract Codeend insertbegin insert, to read:end insert

begin insert

6 

7Chapter  begin insert2.9.end insert Skilled and Trained Workforce
8Requirements
9

 

10

begin insert2600.end insert  

(a) This chapter applies when a public entity is required
11by statute or regulation to obtain an enforceable commitment that
12a bidder, contractor, or other entity will use a skilled and trained
13workforce to complete a contract or project.

14
(b) A public entity may require a bidder, contractor, or other
15entity to use a skilled and trained workforce to complete a contract
16or project regardless of whether the public entity is required to
17do so by a statute or regulation.

18

begin insert2601.end insert  

For purposes of this chapter:

19
(a) “Apprenticeable occupation” means an occupation for
20which the Chief of the Division of Apprenticeship Standards of the
21Department of Industrial Relations had approved an apprenticeship
22program pursuant to Section 3075 of the Labor Code before
23January 1, 2014.

24
(b) “Chief” means the Chief of the Division of Apprenticeship
25Standards of the Department of Industrial Relations.

26
(c) “Skilled and trained workforce” means a workforce that
27meets all of the following conditions:

28
(1) All the workers performing work in an apprenticeable
29occupation in the building and construction trades are either
30skilled journeypersons or apprentices registered in an
31apprenticeship program approved by the chief.

32
(2) (A) For work performed on or after January 1, 2017, at
33least 30 percent of the skilled journeypersons employed to perform
34work on the contract or project by every contractor and each of
35its subcontractors at every tier are graduates of an apprenticeship
36program for the applicable occupation that was either approved
37by the chief pursuant to Section 3075 of the Labor Code or located
38outside California and approved for federal purposes pursuant to
39the apprenticeship regulations adopted by the federal Secretary
40of Labor.

P14   1
(B) For work performed on or after January 1, 2018, at least
240 percent of the skilled journeypersons employed to perform work
3on the contract or project by every contractor and each of its
4 subcontractors at every tier are graduates of an apprenticeship
5program for the applicable occupation that was either approved
6by the chief pursuant to Section 3075 of the Labor Code or located
7outside California and approved for federal purposes pursuant to
8the apprenticeship regulations adopted by the federal Secretary
9of Labor.

10
(C) For work performed on or after January 1, 2019, at least
1150 percent of the skilled journeypersons employed to perform work
12on the contract or project by every contractor and each of its
13subcontractors at every tier are graduates of an apprenticeship
14program for the applicable occupation that was either approved
15by the chief pursuant to Section 3075 of the Labor Code or located
16outside California and approved for federal purposes pursuant to
17the apprenticeship regulations adopted by the federal Secretary
18of Labor.

19
(D) For work performed on or after January 1, 2020, at least
2060 percent of the skilled journeypersons employed to perform work
21on the contract or project by every contractor and each of its
22subcontractors at every tier are graduates of an apprenticeship
23program for the applicable occupation that was either approved
24by the chief pursuant to Section 3075 of the Labor Code or located
25outside California and approved for federal purposes pursuant to
26the apprenticeship regulations adopted by the federal Secretary
27of Labor.

28
(3) For an apprenticeable occupation in which no
29apprenticeship program had been approved by the chief before
30January 1, 1995, up to one-half of the graduation percentage
31requirements of paragraph (2) may be satisfied by skilled
32journeypersons who commenced working in the apprenticeable
33occupation before the chief’s approval of an apprenticeship
34program for that occupation in the county in which the project is
35located.

36
(4) The apprenticeship graduation percentage requirements of
37paragraph (2) are satisfied if, in a particular calendar month,
38either of the following is true:

39
(A) At least the required percentage of the skilled
40journeypersons employed by the contractor or subcontractor to
P15   1perform work on the contract or project meet the graduation
2percentage requirement.

3
(B) For the hours of work performed by skilled journeypersons
4employed by the contractor or subcontractor on the contract or
5project, the percentage of hours performed by skilled
6journeypersons who met the graduation requirement is at least
7equal to the required graduation percentage.

8
(5) The contractor or subcontractor need not meet the
9apprenticeship graduation requirements of paragraph (2) if, during
10the calendar month, the contractor or subcontractor employs
11skilled journeypersons to perform fewer than 10 hours of work on
12the contract or project.

13
(d) “Skilled journeyperson” means a worker who either:

14
(1) Graduated from an apprenticeship program for the
15applicable occupation that was approved by the chief or located
16outside California and approved for federal purposes pursuant to
17the apprenticeship regulations adopted by the federal Secretary
18of Labor.

19
(2) Has at least as many hours of on-the-job experience in the
20applicable occupation as would be required to graduate from an
21apprenticeship program for the applicable occupation that is
22approved by the chief.

23

begin insert2602.end insert  

(a) When a contractor, bidder, or other entity is required
24to provide an enforceable commitment that a skilled and trained
25workforce will be used to complete a contract or project, the
26commitment shall be made in an enforceable agreement with the
27public entity or other awarding body that provides both of the
28following:

29
(1) The contractor, bidder, or other entity, and its contractors
30and subcontractors at every tier, will comply with this chapter.

31
(2) The contractor, bidder, or other entity will provide to the
32public entity or other awarding body, on a monthly basis while
33the project or contract is being performed, a report demonstrating
34compliance with this chapter.

35
(b) If the contractor, bidder, or other entity fails to provide the
36monthly report required by this section, or provides a report that
37is incomplete, the public agency or other awarding body shall
38withhold further payments until a complete report is provided.

39
(c) If a monthly report does not demonstrate compliance with
40this chapter, the public agency or other awarding body shall
P16   1withhold further payments until the contractor, bidder, or other
2entity provides a plan to achieve substantial compliance with this
3chapter, with respect to the relevant apprenticeable occupation,
4prior to completion of the contract or project.

5
(d) A monthly report provided to the public agency or other
6awarding body shall be a public record under the California Public
7Records Act (Chapter 3.5 (commencing with Section 6250) of
8Division 7 of Title 1 of the Government Code) and shall be open
9to public inspection.

end insert
10begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 20119.1 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
11amended to read:end insert

12

20119.1.  

As used in this article:

begin delete

13(a) “Apprenticeable occupation” means an occupation for which
14the Chief of the Division of Apprenticeship Standards had approved
15an apprenticeship program pursuant to Section 3075 of the Labor
16Code prior to January 1, 2015.

end delete
begin delete

17(b)

end delete

18begin insert(a)end insert “Best value” means a procurement process whereby the
19selected bidder may be selected on the basis of objective criteria
20for evaluating the qualifications of bidders with the resulting
21selection representing the best combination of price and
22qualifications.

begin delete

23(c)

end delete

24begin insert(b)end insert “Best value contract” means a competitively bid contract
25entered into pursuant to this article.

begin delete

26(d)

end delete

27begin insert(c)end insert “Best value contractor” means a properly licensed person,
28firm, or corporation that submits a bid for and is awarded a best
29value contract.

begin delete

30(e)

end delete

31begin insert(d)end insert “Best value score” means the resulting score when the school
32district divides the bidder’s price by the bidder’s qualification
33score.

begin delete

34(f)

end delete

35begin insert(e)end insert “Demonstrated management competency” means the
36experience, competency, capability, and capacity of the proposed
37management staffing to complete projects of similar size, scope,
38or complexity.

begin delete

39(g)

end delete

P17   1begin insert(f)end insert “Financial condition” means the financial resources needed
2to perform the contract. The criteria used to evaluate a bidder’s
3financial condition shall include, at a minimum, capacity to obtain
4all required payment bonds and required insurance.

begin delete

5(h)

end delete

6begin insert(g)end insert “Governing board” or “governing board of the school
7district” means the governing board of the Los Angeles Unified
8School District.

begin delete

9(i)

end delete

10begin insert(h)end insert “Labor compliance” means the ability to comply with, and
11past conformance with, contract and statutory requirements for
12the payment of wages and qualifications of the workforce. The
13criteria used to evaluate a bidder’s labor compliance shall include,
14at a minimum, the bidder’s ability to comply with the
15apprenticeship requirements of the California Apprenticeship
16Council and the Department of Industrial Relations, its past
17conformance with such requirements, and its past conformance
18with requirements to pay prevailing wages on public works
19projects.

begin delete

20(j)

end delete

21begin insert(i)end insert “Project” has the same meaning as “public project” as defined
22in subdivision (c) of Section 22002.

begin delete

23(k)

end delete

24begin insert(j)end insert “Qualifications” means financial condition, relevant
25experience, demonstrated management competency, labor
26compliance, the safety record of the bidder, and, to the extent
27relevant, the preceding qualifications as they pertain to all
28subcontractors proposed to be used by the bidder for designated
29portions of the work.

begin delete

30(l)

end delete

31begin insert(k)end insert “Relevant experience” means the experience, competency,
32capability, and capacity to complete projects of similar size, scope,
33or complexity.

begin delete

34(m)

end delete

35begin insert(l)end insert “Safety record” shall be deemed “acceptable” if a contractor’s
36 experience modification rate for the most recent three-year period
37is an average of 1.00 or less, and its average total recordable injury
38or illness rate and average lost work rate for the most recent
39three-year period do not exceed the applicable statistical standards
40for its business category or if the bidder is a party to an alternative
P18   1dispute resolution system as provided for in Section 3201.5 of the
2Labor Code.

begin delete

3(n)

end delete

4begin insert(m)end insert “School district” means the Los Angeles Unified School
5District.

begin delete

6(o) “Skilled and trained workforce” means a workforce that
7meets all of the following conditions:

8(1) All the workers are either skilled journeypersons or
9apprentices registered in an apprenticeship program approved by
10the Chief of the Division of Apprenticeship Standards.

11(2) (A) As of January 1, 2016, at least 20 percent of the skilled
12journeypersons employed to perform work on the contract or
13project by the entity and each of its subcontractors at every tier
14are graduates of an apprenticeship program for the applicable
15occupation that was either approved by the Chief of the Division
16of Apprenticeship Standards pursuant to Section 3075 of the Labor
17Code or located outside California and approved for federal
18 purposes pursuant to the apprenticeship regulations adopted by
19the United States Secretary of Labor.

20(B) As of January 1, 2017, at least 30 percent of the skilled
21journeypersons employed to perform work on the contract or
22project by the entity and each of its subcontractors at every tier
23are graduates of an apprenticeship program for the applicable
24occupation that was either approved by the Chief of the Division
25of Apprenticeship Standards pursuant to Section 3075 of the Labor
26Code or located outside California and approved for federal
27purposes pursuant to the apprenticeship regulations adopted by
28the United States Secretary of Labor.

29(C) As of January 1, 2018, at least 40 percent of the skilled
30journeypersons employed to perform work on the contract or
31project by the entity and each of its subcontractors at every tier
32are graduates of an apprenticeship program for the applicable
33occupation that was either approved by the Chief of the Division
34of Apprenticeship Standards pursuant to Section 3075 of the Labor
35Code or located outside California and approved for federal
36purposes pursuant to the apprenticeship regulations adopted by
37the United States Secretary of Labor.

38(D) As of January 1, 2019, at least 50 percent of the skilled
39journeypersons employed to perform work on the contract or
40project by the entity and each of its subcontractors at every tier
P19   1are graduates of an apprenticeship program for the applicable
2occupation that was either approved by the Chief of the Division
3of Apprenticeship Standards pursuant to Section 3075 of the Labor
4Code or located outside California and approved for federal
5purposes pursuant to the apprenticeship regulations adopted by
6the United States Secretary of Labor.

7(E) As of January 1, 2020, at least 60 percent of the skilled
8journeypersons employed to perform work on the contract or
9project by the entity and each of its subcontractors at every tier
10are graduates of an apprenticeship program for the applicable
11occupation that was either approved by the Chief of the Division
12of Apprenticeship Standards pursuant to Section 3075 of the Labor
13Code or located outside California and approved for federal
14purposes pursuant to the apprenticeship regulations adopted by
15the United States Secretary of Labor.

16(3) For an apprenticeable occupation in which no apprenticeship
17program had been approved by the chief prior to January 1, 1995,
18up to one-half of the graduation percentage requirements of
19paragraph (2) may be satisfied by skilled journeypersons who
20commenced working in the apprenticeable occupation prior to the
21chief’s approval of an apprenticeship program for that occupation
22in the county in which the project is located.

23(p) “Skilled journeyperson” means a worker who either:

24(1) Graduated from an apprenticeship program for the applicable
25occupation that was approved by the chief or located outside
26California and approved for federal purposes pursuant to the
27apprenticeship regulations adopted by the federal Secretary of
28Labor.

29(2) Has at least as many hours of on-the-job experience in the
30applicable occupation as would be required to graduate from an
31apprenticeship program for the applicable occupation that is
32approved by the chief.

end delete
33begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 20119.3 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
34amended to read:end insert

35

20119.3.  

The governing board of the school district shall
36proceed in accordance with the following when awarding best
37value contracts under this article:

38(a) The school district shall prepare a solicitation for bids and
39give notice pursuant to Section 20112.

P20   1(b) (1) The school district shall establish a procedure to
2prequalify bidders as required by this code. Information submitted
3by the bidder as part of the evaluation process shall not be open
4to public inspection to the extent that information is exempt from
5disclosure under the California Public Records Act (Chapter 3.5
6 (commencing with Section 6250) of Division 7 of Title 1 of the
7Government Code).

8(2) A best value entity shall not be prequalified or shortlisted
9unless the entity provides an enforceable commitment to the
10governing board that the entity and its subcontractors at every tier
11will use a skilled and trained workforce to perform all work on the
12project or contract that falls within an apprenticeable occupation
13in the building and constructionbegin delete trades.end deletebegin insert trades, in accordance with
14Chapter 2.9 (commencing with Section 2600) of Part 1.end insert

begin delete

15(3) An entity’s commitment that a skilled and trained workforce
16will be used to perform the project or contract may be established
17by any of the following:

18(A) The entity’s agreement with the school district that the entity
19and its subcontractors at every tier will comply with the
20requirements of this subdivision and that the entity will provide
21the governing board of the school district with evidence, on a
22monthly basis while the project or contract is being performed,
23that the entity and its subcontractors are complying with the
24requirements of this subdivision.

25(B) If the governing board has entered into a project labor
26agreement that will bind all contractors and subcontractors
27performing work on the project or contract and that includes the
28requirements of this subdivision, the entity’s agreement that it will
29become a party to that project labor agreement.

30(C) Evidence that the entity has entered into a project labor
31agreement that includes the requirements of this subdivision and
32that will bind the entity and all its subcontractors at every tier
33performing the project or contract.

end delete
begin insert

34
(3) Paragraph (2) shall not apply if either:

end insert
begin insert

35
(A) The school district has entered into a project labor
36agreement that will bind all contractors and subcontractors
37performing work on the project or contract and the entity agrees
38to be bound by that project labor agreement.

end insert
begin insert

P21   1
(B) The entity has entered into a project labor agreement that
2will bind the entity and all its subcontractors at every tier
3performing the project or contract.

end insert
begin insert

4
(4) For purposes of this subdivision, “project labor agreement”
5has the same meaning as in paragraph (1) of subdivision (b) of
6Section 2500.

end insert

7(c) Each solicitation for bids shall do all of the following:

8(1) Invite prequalified bidders to submit sealed bids in the
9manner prescribed by this article.

10(2) Include a section identifying and describing the following:

11(A) Criteria that the school district will consider in evaluating
12the qualifications of the bidders.

13(B) The methodology and rating or weighting system that will
14be used by the school district in evaluating bids.

15(C) The relative importance or weight assigned to the criteria
16for evaluating the qualifications of bidders identified in the request
17for bids.

18(d) Final evaluation of the bidders shall be done in a manner
19that prevents the identity of the bidders and the cost or price
20information from being revealed in evaluating the qualifications
21of the bidders prior to completion of qualification scoring.

22begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 20155.2 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
23repealed.end insert

begin delete
24

20155.2.  

As used in this article:

25(a) “Apprenticeable occupation” means an occupation for which
26the Chief of the Division of Apprenticeship Standards had approved
27an apprenticeship program pursuant to Section 3075 of the Labor
28Code prior to January 1, 2014.

29(b) “Skilled and trained workforce” means a workforce that
30meets all of the following conditions:

31(1) All the workers are either skilled journeypersons or
32apprentices registered in an apprenticeship program approved by
33the Chief of the Division of Apprenticeship Standards.

34(2) (A) As of January 1, 2016, at least 20 percent of the skilled
35journeypersons employed to perform work on the contract or
36project by the entity and each of its subcontractors at every tier
37are graduates of an apprenticeship program for the applicable
38occupation that was either approved by the Chief of the Division
39of Apprenticeship Standards pursuant to Section 3075 of the Labor
40Code or located outside California and approved for federal
P22   1purposes pursuant to the apprenticeship regulations adopted by
2the United States Secretary of Labor.

3(B) As of January 1, 2017, at least 30 percent of the skilled
4journeypersons employed to perform work on the contract or
5project by the entity and each of its subcontractors at every tier
6are graduates of an apprenticeship program for the applicable
7occupation that was either approved by the Chief of the Division
8of Apprenticeship Standards pursuant to Section 3075 of the Labor
9Code or located outside California and approved for federal
10purposes pursuant to the apprenticeship regulations adopted by
11the United States Secretary of Labor.

12(C) As of January 1, 2018, at least 40 percent of the skilled
13journeypersons employed to perform work on the contract or
14project by the entity and each of its subcontractors at every tier
15are graduates of an apprenticeship program for the applicable
16occupation that was either approved by the Chief of the Division
17of Apprenticeship Standards pursuant to Section 3075 of the Labor
18Code or located outside California and approved for federal
19purposes pursuant to the apprenticeship regulations adopted by
20the United States Secretary of Labor.

21(D) As of January 1, 2019, at least 50 percent of the skilled
22journeypersons employed to perform work on the contract or
23project by the entity and each of its subcontractors at every tier
24are graduates of an apprenticeship program for the applicable
25occupation that was either approved by the Chief of the Division
26of Apprenticeship Standards pursuant to Section 3075 of the Labor
27Code or located outside California and approved for federal
28purposes pursuant to the apprenticeship regulations adopted by
29the United States Secretary of Labor.

30(E) As of January 1, 2020, at least 60 percent of the skilled
31journeypersons employed to perform work on the contract or
32project by the entity and each of its subcontractors at every tier
33are graduates of an apprenticeship program for the applicable
34occupation that was either approved by the Chief of the Division
35of Apprenticeship Standards pursuant to Section 3075 of the Labor
36Code or located outside California and approved for federal
37purposes pursuant to the apprenticeship regulations adopted by
38the United States Secretary of Labor.

39(F) For an apprenticeable occupation in which no apprenticeship
40program had been approved by the Chief of the Division of
P23   1Apprenticeship Standards prior to January 1, 1995, up to one-half
2of the graduation percentage requirements of subparagraphs (A)
3to (E), inclusive, may be satisfied by skilled journeypersons who
4commenced working in the apprenticeable occupation prior to the
5chief’s approval of an apprenticeship program for that occupation
6in the county in which the project is located.

7(c) “Skilled journeyperson” means a worker who either:

8(1) Graduated from an apprenticeship program for the applicable
9occupation that was approved by the Chief of the Division of
10Apprenticeship Standards or located outside California and
11approved for federal purposes pursuant to the apprenticeship
12regulations adopted by the United States Secretary of Labor.

13(2) Has at least as many hours of on-the-job experience in the
14applicable occupation as would be required to graduate from an
15apprenticeship program for the applicable occupation that is
16approved by the Chief of the Division of Apprenticeship Standards.

end delete
17begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 20155.4 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
18amended to read:end insert

19

20155.4.  

(a) A best value contractor shall not be prequalified
20or shortlisted unless the contractor provides an enforceable
21commitment to the county that the contractor and its subcontractors
22at every tier will use a skilled and trained workforce to perform
23all work on the project or contract that falls within an
24apprenticeable occupation in the building and constructionbegin delete trades.end delete
25
begin insert trades, in accordance with Chapter 2.9 (commencing with Section
262600) of Part 1.end insert

begin delete

27(b) A contractor’s commitment that a skilled and trained
28workforce will be used to perform the project or contract may be
29established by any of the following:

30(1) The contractor’s agreement with the county that the
31contractor and its subcontractors at every tier will comply with the
32requirements of this section and that the contractor will provide
33the county with evidence, on a monthly basis while the project or
34contract is being performed, that the contractor and its
35subcontractors are complying with the requirements of this section.

36(2) If the county has entered into a project labor agreement that
37will bind all contractors and subcontractors performing work on
38the project or contract, and that includes the requirements of this
39 section, the contractor’s agreement that it will become a party to
40that project labor agreement.

P24   1(3) Evidence that the contractor has entered into a project labor
2agreement that includes the requirements of this section and that
3will bind the contractor and all its subcontractors at every tier
4performing the project or contract.

end delete
begin insert

5
(b) This section shall not apply if either:

end insert
begin insert

6
(1) The county has entered into a project labor agreement that
7will bind all contractors and subcontractors performing work on
8the project or contract and the contractor agrees to be bound by
9that project labor agreement.

end insert
begin insert

10
(2) The contractor has entered into a project labor agreement
11that will bind the contractor and all its subcontractors at every
12tier performing the project or contract.

end insert
begin insert

13
(c) For purposes of this section, “project labor agreement” has
14the same meaning as in paragraph (1) of subdivision (b) of Section
152500.

end insert
16begin insert

begin insertSEC. 8.end insert  

end insert
begin insert

(a) The amendments made by this act shall not apply
17to contracts that were advertised for bid or awarded before
18January 1, 2017.

end insert
begin insert

19
(b) For contracts advertised for bid or awarded before January
201, 2017, for which an entity or contractor provided an enforceable
21commitment to a school district or county regarding the use of a
22skilled and trained workforce, pursuant to Section 17250.25 or
2317407.5 of the Education Code or Section 20119.3 or 20155.4 of
24the Public Contract Code, the school district or county may grant
25a request by the entity or contractor that made the enforceable
26commitment to comply instead with this act.

end insert
27begin insert

begin insertSEC. 9.end insert  

end insert
begin insert

The Legislature finds and declares that Section 3 of
28this act, which adds Chapter 2.9 (commencing with Section 2600)
29to Part 1 of Division 2 of the Public Contract Code, furthers, within
30the meaning of paragraph (7) of subdivision (b) of Section 3 of
31Article I of the California Constitution, the purposes of that
32constitutional section as it relates to the right of public access to
33the meetings of local public bodies or the writings of local public
34officials and local agencies. Pursuant to paragraph (7) of
35subdivision (b) of Section 3 of Article I of the California
36Constitution, the Legislature makes the following findings:

end insert
begin insert

37
Because this act expressly subjects local public entities to the
38 California Public Records Act for monthly reports to the awarding
39body on compliance with skilled and trained workforce
P25   1requirements for public contracts, the act furthers the purpose of
2Section 3 of Article I of the California Constitution.

end insert
begin delete
3

SECTION 1.  

Section 25205 of the Public Resources Code is
4amended to read:

5

25205.  

(a) A person shall not be a member of the commission
6who, during the two years prior to appointment on the commission,
7received any substantial portion of his or her income directly or
8indirectly from any electric utility, or who engages in sale or
9manufacture of any major component of any facility. A member
10of the commission shall not be employed by any electric utility,
11applicant, or, within two years after he or she ceases to be a
12member of the commission, by any person who engages in the sale
13or manufacture of any major component of any facility.

14(b) Except as provided in Section 25202, the members of the
15commission shall not hold any other elected or appointed public
16office or position.

17(c) The members of the commission and all employees of the
18commission shall comply with all applicable provisions of Section
1919251 of the Government Code.

20(d) A person who is a member or employee of the commission
21shall not participate personally and substantially as a member or
22employee of the commission, through decision, approval,
23disapproval, recommendation, the rendering of advice,
24investigation, or otherwise, in a judicial or other proceeding,
25hearing, application, request for a ruling, or other determination,
26contract, claim, controversy, study, plan, or other particular matter
27in which, to his or her knowledge, he or she, his or her spouse,
28 minor child, or partner, or any organization, except a governmental
29agency or educational or research institution qualifying as a
30nonprofit organization under state or federal income tax law, in
31which he or she is serving, or has served as officer, director, trustee,
32partner, or employee while serving as a member or employee of
33the commission or within two years prior to his or her appointment
34as a member of the commission, has a direct or indirect financial
35interest.

36(e) A person who is a partner, employer, or employee of a
37member or employee of the commission shall not act as an attorney,
38agent, or employee for any person other than the state in connection
39with any judicial or other proceeding, hearing, application, request
40for a ruling, or other determination, contract, claim, controversy,
P26   1study, plan, or other particular matter in which the commission is
2a party or has a direct and substantial interest.

3(f) The provisions of this section shall not apply if the Attorney
4General finds that the interest of the member or employee of the
5commission is not so substantial as to be deemed likely to affect
6the integrity of the services that the state may expect from the
7member or employee.

8(g) Any person who violates any provision of this section is
9guilty of a felony and shall be subject to a fine of not more than
10fifty thousand dollars ($50,000) or imprisonment pursuant to
11subdivision (h) of Section 1170 of the Penal Code, or both that
12fine and imprisonment.

13(h) The amendment of subdivision (d) of this section enacted
14by the 1975-76 Regular Session of the Legislature does not
15constitute a change in, but is declaratory of, existing law.

end delete


O

    98