Contracting bill will thwart doing business with the state

(May 11, 2007) The legislature’s Planning and Development Committee this week approved a bill that mandates such intrusive conditions on companies wanting to do business with the state that most companies may not want to try.

Among other things, SB-41 requires businesses seeking a contract with the state to disclose the wage rates or annual salaries of employees covered under the contract.

How the committee voted.

In addition, businesses winning state contracts will be required to hire state employees who lose their jobs because of the privatization contract, if the employees satisfy the contractor’s hiring criteria.

If the goal of privatization is to provide state services in a more cost- effective manner, it makes little sense to dictate how the contracting business will have to provide those services — and increase the company’s costs in the process.

Both of the these changes to state contracting laws will discourage competition on state contracts and ultimately result in more expensive projects — and higher taxes.

Proponents of SB-41 say the bill is designed to promote “transparency” and “openness” in the contracting process.However, the bills will be so “open,” by requiring the disclosure of personal information about bidding companies’ employees, that they will discourage businesses from contracting with the state.

For more information, contact CBIA’s Kevin Hennessy at 860-244-8782 or hennessk@cbia.com.

CBIA Action Center

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