STAND. COM. REP. NO.953-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2734

S.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2734, S.D. 1, entitled:


begs leave to report as follows:

The purpose of this measure is to reduce regulatory burdens on commercial employment agencies (employment agencies) without compromising consumer protection, and increase consistency between employment agency law and other regulatory schemes by:

(1) Replacing the branch office licensing requirement with language clarifying a principal agent's supervisory responsibilities;

(2) Restricting the requirement that employment agencies be bonded, to those whose fees are paid by employees, and exempting employment agencies whose fees are paid by employers;

(3) Requiring initial and amended filings of placement fee schedules rather than annual filings;

(4) Repealing the requirement that a new license be issued each time an employment agency changes its address;

(5) Authorizing a more flexible 60-day window during which an employment agency may lawfully conduct business while changing its principal agent;

(6) Codifying the administrative rule prohibiting employment agencies from conducting business out of homes, apartments, and hotel rooms;

(7) Prohibiting an employment agency from sending resumes to prospective employers without a bona fide job order from the employer;

(8) Specifying that the Director of Commerce and Consumer Affairs may fine an employment agency in an amount not to exceed $1,000 per violation of agency laws or rules; and

(9) Providing that employment agency license applicants possess a reputation for honesty, truthfulness, financial integrity and fair dealing, and not have felony convictions related to the operation of a commercial employment agency.

The Department of Commerce and Consumer Affairs testified in support of this measure.

Your Committee finds that that this measure will reduce regulatory burdens on businesses, the general public, and state government, while retaining strong consumer protections.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2734, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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