We are happy to report and want to thank all of you that helped, AB 199 (Chu; D-San Jose), a legislative proposal which would have posed a huge threat to the entire construction industry by mandating the payment of Prevailing Wages for private residential projects in California, has been amended in such a manner to address our issues.

Due to the recent amendments to AB 199, our coalition, led by friends over at the California Building Industry Association (CBIA), have withdrawn its opposition to the measure.  The amendments return the bill to existing code (eliminating the problematic reference to “political subdivisions”) and add “a successor agency to a redevelopment agency when acting in that capacity,” after redevelopment agency.

These amendments reflect the author’s and sponsor’s stated intent of the bill – to ensure that projects that had been approved by an RDA continue to pay prevailing wage.  Doing so addressed the concern that the bill was far more expansive, requiring nearly all private residential development to pay prevailing wage.

There may still be some concern on the bill from our friends in local government regarding the RDA issue, but for now the major threat to all private construction has been lifted.

Thank you to CBIA for leading this effort and to all of you that picked up the phone and/or wrote a letter to let policymakers know how bad this issue was for our industry.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)