STAND. COM. REP. NO. 1338

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 144

       H.D. 2

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 144, H.D. 2, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to consolidate and clarify the laws relating to professional employer organizations.

 

More specifically, this measure:

 

(1)  Repeals chapter 373K, Hawaii Revised Statutes, on professional employment organizations; and

 

(2)  Adds provisions to chapter 373L, Hawaii Revised Statutes, on professional employer organizations, addressing, among other things, the assignment of responsibilities between the professional employer organization and the client company, definitions, registration, notifications, fees, loss of the general excise tax exemption, and letter of credit equivalents.

 

     Your Committee received comments on this measure from the Department of Labor and Industrial Relations, Maui Chamber of Commerce, Hawaii Association of Professional Employer Organizations, Hawaii Human Resources, Inc., and Tax Foundation of Hawaii.

 

     Your Committee finds that consolidation and clarification of the statutory provisions in these chapters is necessary because effective implementation of each of them separately has been hampered by incompatible language, obscure objectives, and the lack of a common appreciation of the benefits intended or results to be realized under either of them.

 

     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity, style, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 144, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 144, H.D. 2, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair