THE SENATE	S.C.R. NO.	70
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

requesting that the auditor perform a sunrise analysis of the regulation of professional employment organizations.

     WHEREAS, professional employer organizations act as outsourced human resource, personnel, and administrative compliance departments for many businesses in Hawaii; and

     WHEREAS, in a complex employment and regulatory economy, the use of professional employer organizations is becoming increasingly common among businesses of all sizes; and

     WHEREAS, a professional employer organization acts on  behalf of an employer and is responsible for compliance with state labor and wage laws, including those regulating employee benefits and workers' compensation; and

     WHEREAS, Hawaii is one of only fourteen states that do not regulate professional employer organizations through licensing, certification, or registration; and

     WHEREAS, Hawaii currently has no means to exercise oversight of professional employer organizations or to ensure compliance with state laws; and

     WHEREAS, there exists great potential for abuse by professional employer organizations through failure to comply with state labor, wage, and tax laws; and

     WHEREAS, regulation of professional employer organizations will protect Hawaii's employers as well as its workers by helping to ensure compliance with state and federal laws; and

     WHEREAS, the professional employer organization industry supports industry-wide regulation as a means of ensuring transparency and high standards across the industry; and

     WHEREAS, Senate Bill No. 1062 (2009) proposes the adoption of a regulatory framework that creates minimum standards and operational requirements for professional employment organizations and provides the State with a means of regulating the industry to ensure compliance with state and federal laws; and

     WHEREAS, pursuant to section 26H-6, Hawaii Revised Statutes, new regulatory measures that, if enacted, would subject unregulated professions and vocations to licensing or other regulatory controls shall be referred to the Auditor for analysis; 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 perform an analysis of Senate Bill No. 1062, setting forth the probable effects of the proposed regulatory measure, assessing whether its enactment is consistent with the purposes of section 26H-2, Hawaii Revised Statutes, and assessing alternate forms of regulation; and

     BE IT FURTHER RESOLVED that the Auditor is requested to provide copies of the completed analysis to the Legislature and the Department of Commerce and Consumer Affairs by the twentieth day before the commencement of the 2010 Regular Session; and

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

OFFERED BY:

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Report Title: 

Professional employer organizations; sunrise analysis.