THE SENATE

S.C.R. NO.

214

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING A STUDY RELATING TO PROFESSIONAL EMPLOYER ORGANIZATIONS.

 

 


     WHEREAS, thousands of small businesses and millions of American workers across the country rely on and benefit from the human resource services and administrative services provided by professional employer organizations; and

 

     WHEREAS, professional employer organizations have been increasingly identified by state legislatures as providing valuable assistance to small businesses and their workers by assuming certain employer responsibilities and providing small businesses with significant expertise in compliance, access to benefits, and workers' compensation expertise in the areas of workplace safety, risk management, rehabilitation, and return to work; and

 

     WHEREAS, professional employer organizations and insurance carriers providing coverage of workers in professional employer organization arrangements have increased the availability of coverage in the voluntary market and provided greater market options in the underserved small employer market; and

 

     WHEREAS, a worker fully protected by workers' compensation coverage in a professional employer organization arrangement should be subject to the single exclusive remedy provided by law with regard to both the professional employer organization and the client; and

 

     WHEREAS, the development and application of workers' compensation coverage in professional employer organization arrangements involve significant policy issues that should be addressed through the legislative process, preferably in conjunction with comprehensive professional employer organization legislation; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the House of Representatives concurring, that the Chairperson of the Senate Committee on Commerce, Consumer Protection and Affordable Housing is requested to chair a working group to study the possible creation of a statutory and regulatory framework for professional employer organizations operating in Hawaii.  The work group is requested to consider the following principles:

     (1)  The creation of a comprehensive statutory framework for professional employer organizations based on, as appropriate, the statutory and regulatory requirements, including registration of professional employer organizations, of other states;

 

     (2)  The preservation of ensuring the integrity of the workers' compensation system;

 

     (3)  Recognition that workers' compensation coverage in professional employer organization arrangements should be subject to exclusive remedy protection for both the client and the professional employer organization; and

 

     (4)  Recognition that workers' compensation coverage in professional employer organization arrangements should be addressed by state law that ensures maximum flexibility in the voluntary market as to the types of coverage permitted; and

 

     BE IT FURTHER RESOLVED that the Chairperson of the Commerce, Consumer Protection and Affordable Housing Committee of the Senate is requested to form the working group to include a minimum of nine members, besides the Chairperson, as follows:

 

     (1)  One representative from Department of Commerce and Consumer Affairs, Insurance Division;

 

     (2)  One representative from the Hawaii workers' compensation insurance community;

 

     (3)  Two representatives from the Hawaii professional employer organization community with at least ten years of individual operating history;

 

     (4)  One representative from a national trade association representing the professional employer organization industry; and

 

     (5)  Four members of the Legislature; and

 

     BE IT FURTHER RESOLVED that this working group is requested to submit a report to the Legislature no later than December 31, 2008 on its findings, conclusions, and recommendations, including any proposed legislation; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chairperson of the Senate Committee on Commerce, Consumer Protection and Affordable Housing, the Director of Commerce and Consumer Affairs, the Director of Labor and Industrial Relations, the President of the Senate, and the Speaker of the House of Representatives.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Professional Employer Organizations