THE SENATE

S.C.R. NO.

45

TWENTY-FIFTH LEGISLATURE, 2009

S.D. 1

STATE OF HAWAII

 

 

 

 

 

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING A SUNRISE REVIEW OF PROFESSIONAL EMPLOYER ORGANIZATIONS.

 

 

     WHEREAS, a professional employer organization is a business entity that offers to co-employ employees that are assigned to the work site of a client company; and

 

     WHEREAS, the employee is assigned to the client company on a long-term basis and is deemed to be a co-employee of both the professional employer organization and the client company nature; and

 

     WHEREAS, a professional employer organization typically provides outsourcing of payroll, workers' compensation, human resources, and employee benefits administration to a client company by hiring the client company's employees, thereby becoming their employer of record, and then leases them back under contract to the client company; and

 

     WHEREAS, professional employer organizations have been associated with various types of fraud and evasion of laws designed to protect workers, such as labor law evasion, workers' compensation fraud, evasion of minimum participation rules for pension and health care plans, and unemployment insurance tax evasion; and

 

     WHEREAS, any new regulatory measure that proposes to regulate an unregulated profession or occupation must first be referred to the Auditor for analysis pursuant to section 26H-6, Hawaii Revised Statutes; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2009, the House of Representatives concurring, that the Auditor is requested to conduct an analysis of the probable effects of the registration of professional employer organizations as proposed under S.B. No. 1062, as introduced in the Regular Session of 2009; and

 

     BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations, including any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2010; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and the Director of Commerce and Consumer Affairs.

Report Title: 

Auditor; Professional Employer Organization