HOUSE OF REPRESENTATIVES	H.B. NO.	1497
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

A BILL FOR AN ACT

Relating to labor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 371-11, Hawaii Revised Statutes, is amended to read as follows:

     "§371‑11  Research and statistics; employers to keep certain records.  The department of labor and industrial relations:

     (1)  Shall investigate and gather data regarding the wages, hours, and other conditions and practices of employment in the State, and may enter and inspect [such] places and [such] records [(],and make [such] transcriptions thereof[)], and investigate [such] facts, conditions, practices, or matters as are necessary or appropriate to carry into effect the duties imposed upon it under this chapter or under the rules of the department;

     (2)  May investigate, collect, and publish [such] information relating to the cost of living in the State as it deems advisable;

     (3)  Shall collect, file, and publish [such] information relating to labor and industrial relations and shall perform [such] other duties as the director of labor and industrial relations shall by rule prescribe.

              Every employer subject to this chapter or any rule or regulation of the department issued under this chapter shall make, keep, and preserve [such] records of the [persons]:

(A) Persons employed by the employer, including the name, physical address, North American Industry Classification System code, and number of employees; and [of the wages,]

(B) Wages, hours, and other conditions and practices of employment,

          maintained by the employer, and preserve [such] the records for [such] periods of time, as the department may by rule prescribe.  The director or the director's authorized representative shall for the purpose of examination have access to and the right to copy from [such] the records any matter or thing pertinent to this section, and every employer shall furnish to the director or the director's authorized representative on demand a copy under oath of [such] the material portion of [such] the records as the director or the director's authorized representative requires, and if the director so requires, upon forms prescribed or approved by the director;

     (4)  The department shall collect, assemble, and furnish information regarding group life insurance plans, group medical, hospitalization, and health insurance plans, and pension and retirement plans, at the request of any employer or employee.  Upon the request of any employer or employee, the department shall undertake a study of the feasibility of establishing any or all of [such] the plans for [such] persons as may be designated by the employer or employee making the request.  If the department determines that it will be feasible to establish [such] plan or plans for the persons so designated, it shall render all necessary assistance to the persons who will be included in [such] the plan or plans, including but not limited to [such] matters as negotiating for and on behalf of [such] the persons with insurance companies, and drafting of contracts and agreements.  If the department determines that it will not be feasible to establish [such] the plan or plans for the persons designated because of the small number or the diversity of occupations within the group or for any other reason, the department shall actively solicit the participation of as many other employers and employees within the State as may be necessary to form a group or groups for which it shall be feasible to establish the plan or plans contemplated by the employer or employee who made the original request, and shall furnish all necessary assistance in similar manner.

     The department shall adopt all necessary rules and regulations to carry out the purposes of this section."

     SECTION 2.  Section 373L-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Registration information required by this section shall include:

     (1)  The name or names under which the professional employer organization conducts or will conduct business;

     (2)  The address of the principal place of business of the professional employer organization and the address of each office that the professional employer organization maintains in this State;

     (3)  The professional employer organization's general excise tax number;

     (4)  A copy of the certificate of authority to transact business in this State issued by the director of commerce and consumer affairs pursuant to title 23 or title 23A, if applicable;

     (5)  A list, organized by jurisdiction, of each name under which the professional employer organization has operated in the preceding five years, including any alternative names; names of predecessors; and, if known, names of successor business entities;

     (6)  A statement of ownership, which shall include the name of each person who, individually or acting in concert with any other person or persons, owns or controls, directly or indirectly, twenty-five per cent or more of the equity interests of the professional employer organization;

     (7)  A statement of management, which shall include the name of any person who serves as president or chief executive officer or who otherwise has the authority to act as a senior executive officer of the professional employer organization;

     (8)  Proof of valid workers' compensation coverage in compliance with all laws of this State;

     (9)  Proof of compliance with the Hawaii temporary disability insurance law;

    (10)  Proof of compliance with the Hawaii prepaid health care act;

    (11)  Proof of compliance with the Hawaii employment security law, including payment of any applicable employer liability pursuant to chapter 383;

    (12)  The name, address, and phone number of the financial institution utilized by the professional employer organization for payroll purposes that operates and maintains branches in the State;

    (13)  The name, physical address, North American Industry Classification System code, and number of employees of each client company that is party to a professional employer agreement with a professional employer organization, which shall be provided to the department on a form approved by the department within twenty-one business days of the initiation of the agreement and within twenty-one business days of the termination of the agreement; and

    (14)  A copy of the Internal Revenue Service Form W-3, Transmittal of Wage and Tax Statements, that was most recently filed with the federal government, and which shall be used for obtaining a bond or irrevocable letter of credit pursuant to section 373L-3."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Labor; Professional Employer Organizations; Employers; Records

Description:

Requires employers to make, keep, and preserve records of the name, physical address, North American Industry Classification System code, and number of employees employed by the employer.  Requires professional employer organizations to provide the physical address, North American Industry Classification System code, and number of employees of each client company to the DLIR.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.