STAND. COM. REP. NO.2786

Honolulu, Hawaii

, 2002

RE: S.B. No. 2734

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

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

"A BILL FOR AN ACT RELATING TO COMMERCIAL EMPLOYMENT AGENCIES,"

begs leave to report as follows:

The purpose of this measure is to repeal unnecessary regulatory requirements for commercial employment agencies, clarify licensing requirements, and make the laws governing commercial employment agencies more consistent with other licensing laws.

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

This measure:

(1) Eliminates the licensing requirement for commercial employment agency branch offices since the requirement does not enhance consumer protection;

(2) Eliminates the bonding requirement for agencies whose fees are paid by employers, rather than job applicants, because of the lack of risk to consumers;

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

(4) Eliminates the requirement that a new license be issued when an agency changes its address;

(5) Codifies the administrative rule prohibition on employment agency operations in homes, apartments, and hotel rooms;

(6) Clarifies that an employment agency may not send unsolicited resumes to prospective employers;

(7) Codifies the requirement that 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;

(8) Clarifies the requirement that a commercial employment agency employ a principal agent, allows an agency to continue operations upon the death or dissociation of its principal agent, subject to employment of the person's successor, and clarifies the responsibilities of a principal agent; and

(9) Makes other amendments to the commercial employment agencies laws to clarify licensing requirements and make them consistent with other regulatory schemes.

Your Committee finds that these amendments to the commercial employment agencies law will ease regulatory burdens on licensees without compromising consumer protection.

Your Committee made technical changes to this measure to reflect preferred drafting style.

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

 

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

____________________________

RON MENOR, Chair