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THE SENATE |
S.R. NO. |
41 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
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STATE OF HAWAII |
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SENATE RESOLUTION
requesting a study on public contracts.
WHEREAS, a general principle under the public procurement code is that contracts shall be awarded by process of competitive sealed bidding to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids; and
WHEREAS, the bidding process is open to all contractors regardless of their principal place of business such that they may be either local contractors or out-of-state contractors; and
WHEREAS, there is concern that local contractors have difficulty competing for awards against out-of-state contractors because the high costs of doing business in Hawaii forces the bids of local contractors to be higher than the bids of out-of-state contractors; and
WHEREAS, a significant cost driver that raises the bid amounts of local contractors may be the cost of workers' compensation premiums; and
WHEREAS, the Director of Labor and Industrial Relations notes on the department's website that a recent national study ranks Hawaii third highest in the entire nation in workers' compensation premiums and that Hawaii's businesses on an average pay $3.48 for every $100 they pay in wages; and
WHEREAS, the Director of Labor and Industrial Relations also notes on the department's website that in a survey conducted recently by the Pacific Business News, seventy-three per cent of local businesses responded that their number one issue was the soaring costs of workers' compensation (along with rising premiums for prepaid healthcare insurance); now, therefore,
BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, that the Attorney General and the Insurance Commissioner are respectfully requested to conduct a study on whether state and county government contracts are being awarded to out-of-state contractors at the expense of local contractors, and whether a major reason for this is the higher workers' compensation insurance premiums paid by local contractors; and
BE IT FURTHER RESOLVED that the Attorney General and the Insurance Commissioner are further requested to submit findings and recommendations, including any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2008; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Attorney General and the Insurance Commissioner.
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OFFERED BY: |
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Public Contracts