Bad Bill Goes, Worries Remain.

A legislative proposal to add a massive Prevailing Wage requirement to residential construction on private property is a non-event for now. AB199, which got us all on DEFCON alert status, was amended on Thursday with safeguard language provided by our industry. CBIA is to be congratulated for running an effective campaign in opposition of AB199.  It’s veracity convinced its author, Democrat Assembly Member Kansen Chu (San Jose) and sponsors (the Building Trades) to have the language read what they all along claimed was AB199’s purpose, a clean-up Bill in the wake of the collapse of the Redevelopment Agencies.

But, don’t hold your breath...

The Bill’s original language left the door wide open for the worst possible legal interpretations that would have resulted in “project killing” labor cost upticks on nearly all residential projects. But, don’t hold your breath and believe that we are out of danger. This writer thinks that the agreement to amend AB199 came too easy and too quickly, providing false hope to you and me that the storm has passed.

AB199 hasn’t even been set for a hearing by the Appropriations Committee, led by Labor stalwart Lorena Gonzalez (D: San Diego). Just four short years ago, Ms. Gonzalez was C.E.O. of the San Diego-Imperial Counties Labor Council, AFL-CIO. The likelihood that AB199 will be gutted and amended to add Prevailing Wage requirements remains very high as the Bill winds its way to the Assembly Floor and to the Senate thereafter.  

Please keep paying close attention to this matter and continue to write checks to: The Coalition for Affordable, Reliable & Equitable Housing (CARE).  It could prove a costly mistake to consider AB199 as a “won and done.” 

We must remain vigilant!