Please ensure Javascript is enabled for purposes of website accessibility

Fresno City Gets Extension in Herndon 4-Story Apartment Case

2 days ago

With Major Heat Risk Forecast, This Is a Good Weekend to Stay Indoors in Fresno

2 days ago

Trump Says Intel Has Agreed to Deal for US to Take 10% Equity Stake

2 days ago

Epstein Associate Maxwell Says She Never Saw Trump Behave Inappropriately

2 days ago

Pew: US Immigrant Population Declines for First Time in Nearly 60 Years

2 days ago

Powell, Citing Jobs Risk, Opens Door to Cuts but Doesn’t Commit

2 days ago

FBI Agents Search Ex-Trump Adviser Bolton’s Home, Source Says

2 days ago

Gaza City Officially in Famine, With Hunger Spreading, Says Global Hunger Monitor

2 days ago

Gavin Newsom’s Redistricting Plan Is on Its Way to Voters. What You Need to Know

3 days ago
Consequences of labor bill would put home prices out of reach
David Taub Website photo 2024
By David Taub, Senior Reporter
Published 8 years ago on
March 17, 2017

Share

Industry experts say the unintended consequences of a labor law would lead to a dramatic increase in home prices, putting it out of reach for many. AB 199, authored by Assemblyman Kansen Chu (D-San Jose) is supposed extend wage protections (known as the prevailing wage rate) for public projects at the local levels.

But, based on the hundreds of those in the home building and construction industries who attended, they say it will cripple their industries and make the dream of home affordability a nightmare.

If AB 199 becomes law, it would be devastating says Dean Dixon of Davis Development, who attended the hearing. “It would knock several projects out. Projects are so close to not making budget now, many will come off the books. It is an easy 40% increase to charge to get the job done.”

It’s a matter of interpreting what constitutes a public works project. Even though both labor and builders, Democrats and Republicans, admitted the bill was flawed, no fixes were made to the language before passage out of the Assembly Labor and Employment committee.

For Cesar Diaz, legislative director of the State Building & Construction Trades Council, it is a matter of protecting workers and a fair wage. “Driving down workers’ wages on construction projects where there are public subsidies doesn’t help address the public housing crisis,” he said during testimony.

He was countered in testimony by Erin Guerrero, vice president of legislative affairs for the California Building Industry Association. “This bill will drive costs up even further during this (housing) emergency, resulting in no additional homes and making all homes even less affordable and further out of reach for a majority of Californians.”

The bone of contention is what constitutes a public works project. The industry presented scenarios where a city government holding builder funds for things like permits makes it a public works project, thus triggering the prevailing wage rate. Others say receiving a fee credit for installing a water line in a new neighborhood would also make the development a public works project.

It was a fact that many of the committee members brought up in the hearing, including Heath Flora (R-Ripon) and Eloise Gomez Reyes (D-San Bernardino).

Chu said it was not his intention to hurt the building industry, just protect workers. Committee chair Tony Thurmond (D-Richmond) told GV Wire that he would meet with both sides to try and work out a deal. Both groups accepted the invitation.

The final vote of 5-1 saw all five Democrats on the committee: Thurmond, Reyes, Ash Kalra (D-San Jose), Kevin McCarty (D-Sacramento) and Jimmy Gomez (D-Los Angeles) approve. Gomez voted after the roll call was taken. He did not attend the hearing, but both his office and the committee’s staff confirm he did register a vote, an apparent commonplace practice among legislators.

Of the two Republicans, Matthew Harper (R-Huntington Beach) voted no. Flora decided to not record an official vote.

The bill will next go the Assembly Appropriations committee.

Contact David Taub

Phone: 559-492-4037 / e-mail

This story was not subject to the approval of Granville Homes.

 

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Police Fatally Shoot Man Armed With Knives After Standoff

DON'T MISS

Why Epstein’s Furious Grip on Washington Holds

DON'T MISS

US Envoy Meets Netanyahu on Lebanon and Syria, Israeli Officials Say

DON'T MISS

Gerry Spence, Renowned for Courtroom Victories and Unique Style, Dead at 96

DON'T MISS

Pentagon Working on Plans for Military Deployment in Chicago, Washington Post Reports

DON'T MISS

Widespread Protests Held in Australia to Support Palestinians

DON'T MISS

VP Vance Says Russia Has Made Significant Concessions Toward Ukraine Peace Deal

DON'T MISS

Israel Strikes Yemeni Capital Sanaa

DON'T MISS

Howard University President to Step Down This Month

DON'T MISS

Hollywood’s Biggest AI Debut? Las Vegas Sphere’s ‘Wizard of Oz’

UP NEXT

Judge Blocks Trump From Withholding Funds From Los Angeles, Other Sanctuary Cities

UP NEXT

California Cities Lack Unified Response On Homeless Encampments

UP NEXT

California Voters Still Support High-Speed Rail, Even If It Never Gets Done

UP NEXT

Gavin Newsom’s Redistricting Plan Is on Its Way to Voters. What You Need to Know

UP NEXT

CARB Executive Leader Rips Trump’s EPA for Seeking to Kill Proven Climate Science

UP NEXT

California Lawmakers Advance First Two Bills in Democrats’ Redistricting Plan

UP NEXT

Trump Administration Cuts California Grant Over Transgender Policies

UP NEXT

Gov. Gavin Newsom’s Latest Role Is Social Media Troll

UP NEXT

California Supreme Court Paves the Way for Democrats’ Redistricting Plan

UP NEXT

Poll: California Dems Favor Newsom Over Harris in 2028 Matchup

David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

Gerry Spence, Renowned for Courtroom Victories and Unique Style, Dead at 96

10 hours ago

Pentagon Working on Plans for Military Deployment in Chicago, Washington Post Reports

10 hours ago

Widespread Protests Held in Australia to Support Palestinians

10 hours ago

VP Vance Says Russia Has Made Significant Concessions Toward Ukraine Peace Deal

10 hours ago

Israel Strikes Yemeni Capital Sanaa

10 hours ago

Howard University President to Step Down This Month

10 hours ago

Hollywood’s Biggest AI Debut? Las Vegas Sphere’s ‘Wizard of Oz’

10 hours ago

Fresno State Bulldogs Can’t Find Answer for Daniels in Loss at Kansas

23 hours ago

Hegseth Authorizes Troops in DC to Carry Weapons

1 day ago

Texas, Florida Seek to Join Legal Challenge to Abortion Pill

1 day ago

Fresno Police Fatally Shoot Man Armed With Knives After Standoff

Fresno police officers fatally shot a 35-year-old man armed with knives Saturday afternoon after a standoff at an apartment complex, authori...

3 hours ago

Fresno police fatally shot Joseph Merical, 35, on Saturday, August 23, 2025, after a standoff at a west Fresno apartment complex. (Fresno PD)
3 hours ago

Fresno Police Fatally Shoot Man Armed With Knives After Standoff

U.S. financier Jeffrey Epstein appears in a photograph taken for the New York State Division of Criminal Justice Services' sex offender registry March 28, 2017 and obtained by Reuters July 10, 2019. New York State Division of Criminal Justice Services/Handout via REUTERS/File Photo
9 hours ago

Why Epstein’s Furious Grip on Washington Holds

U.S. Ambassador to Turkey and Special Envoy for Syria Thomas Barrack attends an interview with Reuters in Beirut, Lebanon July 22, 2025. (Reuters File)
9 hours ago

US Envoy Meets Netanyahu on Lebanon and Syria, Israeli Officials Say

Former Philippine first lady Imelda Marcos arrives at court with lawyer Gerry Spence. June 28, 1990. (Reuters File)
10 hours ago

Gerry Spence, Renowned for Courtroom Victories and Unique Style, Dead at 96

The Pentagon building is seen in Arlington, Virginia, U.S, April 6, 2023. (Reuters File)
10 hours ago

Pentagon Working on Plans for Military Deployment in Chicago, Washington Post Reports

Demonstrators hold placards as they take part in the 'Nationwide March for Palestine' protest in Sydney, Australia, August 24, 2025. REUTERS/Hollie Adams
10 hours ago

Widespread Protests Held in Australia to Support Palestinians

Firefighters work at the site of a Russian missile strike, amid Russia's attack on Ukraine, in the village of Sknyliv on the outskirts of Lviv, Ukraine August 21, 2025. (Reuters File)
10 hours ago

VP Vance Says Russia Has Made Significant Concessions Toward Ukraine Peace Deal

Smoke billows from the site of Israeli air strikes in Sanaa, Yemen August 24, 2025. REUTERS/Stringer
10 hours ago

Israel Strikes Yemeni Capital Sanaa

Search

Help continue the work that gets you the news that matters most.

Send this to a friend