STAND. COM. REP. NO. 1126

Honolulu, Hawaii

RE:    S.C.R. No. 45

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.C.R. No. 45 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING A SUNRISE REVIEW OF PROFESSIONAL EMPLOYER ORGANIZATIONS,"

begs leave to report as follows:

     The purpose of this measure is to request that the Auditor perform a sunrise analysis on professional employer organizations.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that professional employer organizations act as an outsourced human resource department for employers by providing personnel and payroll services and overseeing an employer's compliance with state and federal law, including benefits and workers' compensation issues.  Your Committee finds that regulation of this industry will help to ensure that Hawaii's business community can continue to rely on professional employer organizations to provide high quality services.  Hawaii is one of only fourteen states that does not currently regulate this industry.  Your Committee notes that regulation and oversight of the professional employer organization industry has been requested by the industry itself, in order to maintain high standards and preserve the good business reputation of professional employment organizations that meet their ethical and legal obligations to their clients. 

     Your Committee has amended this measure by inserting the number of the Senate Bill to which this measure refers.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 45, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 45, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair