See CA Public Contract Code Section 6107
California law establishes procedures for competitive bidding of certain contracts by public entities. Public agencies are required to give California companies preference on construction contracts against nonresident contractors. The preference is equal to any preference that the nonresident contractor receives on public works contracts in its state of residency.
For purposes of this preference, a "California company" is defined as one which has its principal place of business in a state in which there is a local contractor construction preference and the contractor has paid at least $5,000 in sales and use taxes to California for each of the five years preceding the submission of a bid.
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