STAND. COM. REP. NO.  1205-10

 

Honolulu, Hawaii

                , 2010

 

RE:   S.B. No. 1062

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 1062, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to regulate professional employer organizations (PEOs) in Hawaii as business organizations by requiring PEOs, before entering into any agreement with a client company in Hawaii to:

 

     (1)  Register with the Insurance Commissioner and provide information including proof of compliance with Hawaii's employment insurance laws; and

 

     (2)  Post a $1,000,000 bond to indemnify a PEO's client companies.

 

     ALTRES, Inc., testified in support of this bill.  JS Services, Inc., and the Department of Commerce and Consumer Affairs opposed this measure.  The Department of Labor and Industrial Relations, National Association of Professional Employer Organizations, and ProService Hawaii offered comments.

 


     Your Committee has amended this bill by:

 

     (1)  Replacing, with an unspecified amount, the bond amount of $1,000,000 that a professional employer organization must post before entering into a professional employment agreement with a client company in the state;

 

     (2)  Changing the effective date to July 1, 2020; and

 

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1062, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1062, S.D. 1, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair