Bill Text: HI SB2544 | 2016 | Regular Session | Amended
Bill Title: Professional Employer Organizations; Department of Labor and Industrial Relations; Covered Employees; Fees
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Engrossed - Dead) 2016-03-23 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Kawakami, Kong, Pouha excused (3). [SB2544 Detail]
Download: Hawaii-2016-SB2544-Amended.html
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THE SENATE |
S.B. NO. |
2544 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO PROFESSIONAL EMPLOYER ORGANIZATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to address professional employer organizations.
More specifically, this Act statutorily increases the fees imposed upon professional employer organizations. The fees are set at amounts intended to generate sufficient revenues to entirely fund the cost to regulate professional employer organizations.
The legislature finds that imposing flat fee amounts, based upon ranges of covered employees a professional employer organization reports to the department of labor and industrial relations, is fair and reasonable. This method is intended to prevent smaller professional employer organizations from having to pay the same fee amount as larger organizations.
The legislature emphasizes that the cost of regulating professional employer organizations should be borne entirely by the organizations through the fees. The costs should include all direct costs as well as fringe benefit costs paid through appropriations to the department of budget and finance. Other regulated businesses are subject to the same financial self-sufficiency policy. The legislature opposes subsidizing the regulation of professional employer organizations from the general fund.
SECTION 2. Chapter 373L, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§373L- Report of employee count. Every professional employer organization shall report the total number of covered employees. The number of covered employees shall include all covered employees who worked any hours during the period from May 1 of the prior year through April 30 of the year in which the report is made. The report shall be made to the department no later than June 1 of every year."
SECTION 3. Section 373L-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b)
Effective [July 1, 2013,] January 1, 2017, the director
shall collect fees in the following amounts:
(1) Registration fee $ 500
(2) Biennial renewal fee [$ 750] based
upon the count of covered employees as reported to the department under section
373L- as follows:
Less than 50 covered employees $2,000
50 – 250 covered employees $3,000
251 - 500 covered employees $5,000
501 or more covered employees $7,000
(3) Restoration fee $1,500
until such time as the director amends the fees by rulemaking pursuant to chapter 91."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2091.
Report Title:
Professional Employer Organizations; Department of Labor and Industrial Relations; Covered Employees; Fees
Description:
Establishes a tiered scale for the biennial renewal fees for professional employer organizations, based on the number of covered employees a professional employer organization reports to the Department of Labor and Industrial Relations. (SB2544 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
