Keep Watch Of Calif.'s Health Care Construction Bill
August 8, 2013, 1:09 PM EDT
Law360, New York (August 8, 2013, 1:09 PM EDT) -- A proposed California Senate bill defines health care construction projects funded by conduit revenue bonds as “public works” and would require payment of prevailing wages to laborers. As a result, the cost of health care construction funded with such bonds could increase substantially. Some opponents of mandating payment of prevailing wages contend that this can increase construction costs by 20 percent or more.
Regardless of the wisdom of requiring payment of prevailing wages, health care executives planning to finance construction in California with conduit revenue should...