Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.C.R. No. 75 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize a sunrise review of the regulation of athlete agents.

The Department of Commerce and Consumer Affairs (DCCA), University of Hawaii, and Hawaii Commission on Uniform State Laws testified in support of this measure.

House Bill No. 1824 proposes to regulate athlete agents by requiring their registration with DCCA. Proponents of the measure submit that an agent's recruitment of an athlete while the athlete is still enrolled in school may cause substantial eligibility problems for both the athlete and the school. In addition, student athletes are vulnerable to being taken advantage of by unscrupulous individuals.

State policy dictates that regulation of a profession or vocation only be undertaken where reasonably necessary to protect the health, safety, or welfare of consumers. Therefore, pursuant to section 26H-6, Hawaii Revised Statutes, a measure proposing to establish a new regulatory system must be referred by concurrent resolution to the Auditor for a "sunrise" analysis that sets forth the probable effects of the measure and assesses whether the measure is consistent with State regulatory policy. This concurrent resolution refers H.B. No. 1824 to the Auditor for a sunrise analysis.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 75, and recommends its adoption.