Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.C.R. No. 19, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to request a "sunrise" review of legislation that proposes to regulate the activities of athlete agents under the Uniform Athlete Agents Act (UAAA).

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

House Bill No. 51, as originally introduced this session, proposes to enact the UAAA, which would require the registration of athlete agents with DCCA and establish requirements for athlete agents operating in the State. Proponents of the House measure submit that the regulation of athlete agents is necessary because an agent's recruitment of an athlete while the athlete is still enrolled in school may cause eligibility problems for both the athlete and the school. In addition, they argue that student athletes are vulnerable to being taken advantage of by unscrupulous individuals.

State policy under the Hawaii Regulatory Licensing Reform Act 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 measure refers H.B. No. 51 to the Auditor for the required analysis.

Your Committee has amended this measure to clarify that the bill being referred to the Auditor for analysis is H.B. No. 51, as originally introduced during the Regular Session of 2005, and not H.D. No. 51, H.D. 1.

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 S.C.R. No. 19, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 19, S.D. 2.