Gov. Jerry Brown (D) enacted two pieces of legislation, both opposed by Associated Builders and Contractors (ABC) of California, that will expand prevailing wage requirements across the state. S.B. 7 will prohibit cities that don’t pay prevailing wages on local projects from receiving state construction funding. The measure is aimed at charter cities that have sanctioned prevailing wage exemptions. It also will limit state funding for cities that have allowed any public works projects within the last two years to be completed without requiring prevailing wages.

The second law (S.B. 54) will expand prevailing wage requirements to certain private oil and gas construction projects. According to ABC of California, both laws will result in increased costs that will be passed on to municipalities and consumers.