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Planning and Building Agency <br />www.santa-ana.org/planning-and-building <br />Item # 21 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />April 18, 2023 <br />TOPIC: Ordinance Amendment No. 2023-02: License Requirements of Contractors and <br />Subcontractors <br />AGENDA TITLE <br />First Reading of an Ordinance to Amend Section 8-6 of the Santa Ana Municipal Code <br />(SAMC) Pertaining to License Requirements of Contractors and Subcontractors to <br />Include the Collection and Disclosure of Information Regarding Pending or Prior <br />Enforcement Actions for any State or Federal Labor Violations <br />RECOMMENDED ACTION <br />Conduct a first reading of Ordinance Amendment No. 2023-02 — An ordinance of the <br />City Council of the City of Santa Ana amending Section 8-6 of the Santa Ana Municipal <br />Code (SAMC) pertaining to license requirements of contractors and subcontractors to <br />include the collection and disclosure of information regarding pending or prior <br />enforcement actions for any state or federal labor violations. <br />EXECUTIVE SUMMARY AND DISCUSSION <br />At the regular meeting of March 7, 2023, the City Council discussed a goal of promoting <br />transparency pertaining to fair labor and business practices by contractors in the <br />construction industry. The City Council discussed and provided policy directions and <br />directed staff to draft an ordinance to achieve the following objectives: <br />1. Require the disclosure of information regarding pending or prior enforcement <br />actions for any state or federal labor violations in addition to information currently <br />being required pertaining licensing and insurance information; and <br />2. Apply the new disclosure requirement only to projects involving 20 or more <br />residential units or 20,000 or more square feet of commercial and industrial <br />development. <br />The existing Section 8-6 (License requirements of contractors and subcontractors) of <br />the SAMC requires the applicant of a building permit to provide verification of workers' <br />compensation insurance, state contractor license and license category, City business <br />license, and federal tax identification number for contractors and subcontractors working <br />on a construction project within the City. The draft ordinance amends these <br />requirements to include the disclosure of any pending or final adverse determinations <br />for state or federal labor code violations and any paid penalties to a government agency <br />related to the provisions of the California Labor Code within the prior five-year period. <br />The additional disclosures are applicable only to projects consisting of 20 or more <br />residential units, or 20,000 or more square feet of commercial or industrial development. <br />City Council 21 — 1 4/18/2023 <br />