STAND. COM. REP. NO.  1184-16

 

Honolulu, Hawaii

                , 2016

 

RE:   S.B. No. 2544

      S.D. 2

      H.D. 1

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committees on Labor & Public Employment and Consumer Protection & Commerce, to which was referred S.B. No. 2544, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO PROFESSIONAL EMPLOYER ORGANIZATIONS,"

 

beg leave to report as follows:

 

     The purpose of this measure is to ensure sufficient revenues to fund the costs to regulate professional employer organizations.

 

     Specifically, this measure:

 

     (1)  Requires every professional employer organization to report the total number of covered employees to the Department of Labor and Industrial Relations; and

 

     (2)  Establishes a tiered scale for the biennial renewal fees for professional employer organizations based on the number of covered employees reported.

 

     The Department of Labor and Industrial Relations; the Chamber of Commerce Hawaii; ALTRES, Inc.; ProService Hawaii; and Hawaii Human Resources, Inc. provided comments on this measure.


     Your Committees have amended this measure by changing:

 

     (1)  The biennial renewal fees from:

 

          (a)  $4,000 to $5,000 for 251-500 covered employees; and

 

          (b)  $5,000 to $7,000 for 501 or more covered employees; and

 

     (2)  The effective date to July 1, 2091, to encourage further discussion.

 

     As affirmed by the records of votes of the members of your Committees on Labor & Public Employment and Consumer Protection & Commerce that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2544, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2544, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committees on Labor & Public Employment and Consumer Protection & Commerce,

 

 

____________________________

ANGUS L.K. McKELVEY, Chair

 

____________________________

MARK M. NAKASHIMA, Chair