THE SENATE	S.B. NO.	2544
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PROFESSIONAL EMPLOYER ORGANIZATIONS.

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

     SECTION 1.  The purpose of this Act is to address professional employer organizations.

     More specifically, this Act statutorily increases the fees imposed upon professional employer organizations.  The fees are set at amounts intended to generate sufficient revenues to entirely fund the cost to regulate professional employer organizations.

     The legislature finds that a sliding scale, based upon the number of covered employees of a professional employer organization, is a fair and reasonable way to establish the fee amounts.  The sliding scale is intended to prevent smaller professional employer organizations from having to pay the same fee amount as larger organizations.

     The legislature emphasizes that the cost of regulating professional employer organizations should be borne entirely by the organizations through the fees.  The costs should include all direct costs as well as fringe benefit costs paid through appropriations to the department of budget and finance.  Other regulated businesses are subject to the same financial self-sufficiency policy.  The legislature opposes subsidizing the regulation of professional employer organizations from the general fund.

     SECTION 2.  Section 373L-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Effective [July 1, 2013,] January 1, 2017, the director shall collect fees in the following amounts:

     (1)  Registration fee                          $  500

     (2)  Biennial renewal fee [$  750] based upon the average annual count of covered employees as follows:

    -     covered employees              $     

    -     covered employees              $     

    -     covered employees              $     

    -     covered employees              $     

    or more covered employees            $     

     (3)  Restoration fee                           $1,500

until such time as the director amends the fees by rulemaking pursuant to chapter 91."

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  Statutory material to be repealed is bracketed and stricken.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

     SECTION 4.  This Act shall take effect on January 1, 2017.

INTRODUCED BY:

_____________________________

Report Title:

Professional Employer Organizations; Fees

Description:

Establishes a sliding scale based upon the average annual count of covered employees for the biennial renewal fees for professional employer organizations.  Takes effect on 01/01/17.

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