Registration required.

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§373L-2 Registration required. (a) Every professional employer organization shall register with the director by providing all of the information required by this section and by rules adopted by the director pursuant to chapter 91 prior to entering into any professional employer agreement with any client company in this State. Registration shall not be approved unless all of the applicable provisions of this chapter have been met to the satisfaction of the department.

(b) Registration information required by this section shall include:

(1) The name or names under which the professional employer organization conducts or will conduct business;

(2) The address of the principal place of business of the professional employer organization and the address of each office that the professional employer organization maintains in this State;

(3) The professional employer organization's general excise tax number;

(4) A copy of the certificate of authority to transact business in this State issued by the director of commerce and consumer affairs pursuant to title 23 or title 23A, if applicable;

(5) A list, organized by jurisdiction, of each name under which the professional employer organization has operated in the preceding five years, including any alternative names; names of predecessors; and, if known, names of successor business entities;

(6) A statement of ownership, which shall include the name of each person who, individually or acting in concert with any other person or persons, owns or controls, directly or indirectly, twenty-five per cent or more of the equity interests of the professional employer organization;

(7) A statement of management, which shall include the name of any person who serves as president or chief executive officer or who otherwise has the authority to act as a senior executive officer of the professional employer organization;

(8) Proof of valid workers' compensation coverage in compliance with all laws of this State;

(9) Proof of compliance with the Hawaii temporary disability insurance law;

(10) Proof of compliance with the Hawaii prepaid health care act;

(11) Proof of compliance with the Hawaii employment security law, including payment of any applicable employer liability pursuant to chapter 383;

(12) The name, address, and phone number of the financial institution utilized by the professional employer organization for payroll purposes that operates and maintains branches in the State;

(13) The name of each client company that is party to a professional employer agreement with a professional employer organization which shall be provided to the department on a form approved by the department within twenty-one business days of the initiation of the agreement and within twenty-one business days of the termination of the agreement; and

(14) A copy of the Internal Revenue Service Form W-3, Transmittal of Wage and Tax Statements, that was most recently filed with the federal government, and which shall be used for obtaining a bond or irrevocable letter of credit pursuant to section 373L-3.

(c) Registration under this section shall expire on June 30 of each even-numbered year. Before June 30 of each even-numbered year, the director or the director's authorized delegate shall mail a renewal application for registration to the address on record of the registrant. In connection with renewal of registration, a professional employer organization shall provide all of the information required by subsection (b). Failure to renew a registration shall result in termination of that registration. A professional employer organization whose registration has been terminated pursuant to this section shall be required to pay the restoration fee.

(d) Notwithstanding that a registration under this section has not expired, a professional employer organization shall submit annually, no later than June 30 of each year, to the department a copy of the Internal Revenue Service Form W-3, Transmittal of Wage and Tax Statements, that was most recently filed with the federal government. If the amount of the total payroll has changed to an amount that requires a different bond or irrevocable letter of credit amount than posted with the department, the professional employer organization shall obtain a new bond or irrevocable letter of credit to satisfy the requirements of section 373L-3. [L 2010, c 129, pt of §1; am L 2013, c 174, §5]


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