HI SB2424

Eliminates duplicative provisions by repealing chapter 373K and consolidating professional employer organization regulations into chapter 373L, Hawaii Revised Statutes.

Establishes a professional employer organization special fund to be administered by the Department of Labor and Industrial Relations, funded by registration fees and penalties.

Creates registration requirements and operational standards for professional employer organizations, including application fees ($100), biennial renewal fees ($2,500-$10,000 based on employee count), and tiered bond requirements ($250,000-$1,000,000).

Grants the Department of Labor authority to deny, suspend, or revoke registration and impose penalties up to $1,000 or $500 per day for noncompliance; allows court injunctions for continued violations after 30 days.

Moves the general excise tax exemption for professional employer organizations from chapter 373K to section 237-24.75, while maintaining exemption conditions relating to employee rights and tax withholding compliance.