AB286,1,6 1An Act to renumber and amend 461.02 (1) and 461.02 (4); to amend 461.02
2(1) (title), 461.02 (2) (intro.), 461.02 (3) (a), 461.02 (3) (b), 461.02 (5), 461.02 (6),
3461.02 (7) (b), 461.02 (8) and 461.04 (1) (intro.); to repeal and recreate 461.02
4(4) (title); and to create 440.08 (2) (a) 63p. and 461.02 (1) (b) of the statutes;
5relating to: professional employer organizations and professional employer
6groups.
Analysis by the Legislative Reference Bureau
Under current law, beginning on July 1, 2009, a person that wishes to provide
or offer professional employer services in this state must register with the
Department of Regulation and Licensing (DRL) as a professional employer
organization (PEO) or a professional employer group (PEG). An initial registration
issued by DRL is valid until 180 days after the end of the first fiscal year of the PEO
or PEG that ends more than one year after July 1, 2009. A PEO or PEG that wishes
to renew its registration must apply for renewal no later than 180 days after the end
of the PEO's or PEG's fiscal year. The PEO or PEG must submit a copy of an updated
financial statement with the application for renewal. The PEO or PEG may apply
to DRL for an extension of the renewal period if the PEO or PEG submits with the
application for renewal a letter from the certified public accountant that is auditing
the PEO's or PEG's financial statement.
This bill provides that a PEO or PEG must annually apply to DRL for renewal
of a registration by July 31 of each year, which is consistent with other credentials

administered by DRL. The bill provides that a PEO or PEG may apply to DRL for
an extension of time to submit an updated financial statement, but not for an
application for renewal.
Under current law, beginning on July 1, 2009, no person may offer or provide
professional employer services or advertise that the person provides professional
employer services or is a professional employer organization unless the person is
registered with DRL. This bill prohibits a person from operating as a professional
employer organization or professional employer group or advertising that the person
is a professional employer organization or professional employer group unless the
person is registered with DRL.
This bill also prohibits a person from using the titles, "professional employer
organization," "PEO," "professional employer group," "PEG," or similar titles unless
the person is registered as a PEO or PEG by DRL.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB286, s. 1 1Section 1. 440.08 (2) (a) 63p. of the statutes is created to read:
AB286,2,32 440.08 (2) (a) 63p. Professional employer organization or professional
3employer group: July 31 of each year.
AB286, s. 2 4Section 2. 461.02 (1) (title) of the statutes, as created by 2007 Wisconsin Act
5189
, is amended to read:
AB286,2,66 461.02 (1) (title) Registration required ; use of titles.
AB286, s. 3 7Section 3. 461.02 (1) of the statutes, as created by 2007 Wisconsin Act 189, is
8renumbered 461.02 (1) (a) and amended to read:
AB286,3,29 461.02 (1) (a) No person may offer or provide operate as a professional employer
10services organization or professional employer group, advertise that the person is a
11professional employer organization or that the person provides professional
12employer services
professional employer group, or otherwise hold itself out as a
13professional employer organization or professional employer group unless the
14person first registers with the department as provided in this section. To register

1under this section, a person shall file the registration form under sub. (2) and pay the
2initial credential fee determined by the department under s. 440.03 (9) (a).
AB286, s. 4 3Section 4. 461.02 (1) (b) of the statutes, as created by 2007 Wisconsin Act 189,
4is created to read:
AB286,3,145 461.02 (1) (b) No person may designate as the person's title, or append to the
6person's name the words or letters, "professional employer organization," "P.E.O.,"
7"professional employer group," "P.E.G.," "staff leasing company," "registered staff
8leasing company," "employee leasing company," or "administrative employer," or
9other similar titles or letters, or use these titles, words, or letters to describe the
10person's business or represent that the person or the person's business is registered
11or licensed as "professional employer organization," "P.E.O.," "professional employer
12group," "P.E.G.," "staff leasing company," "registered staff leasing company,"
13"employee leasing company," or "administrative employer," unless the person is
14registered by the department under this chapter.
AB286, s. 5 15Section 5. 461.02 (2) (intro.) of the statutes, as created by 2007 Wisconsin Act
16189
, is amended to read:
AB286,3,2117 461.02 (2) Registration application form. (intro.) To apply Except as provided
18in sub. (7) (b), an applicant
for registration under this section , an applicant shall file
19with
submit to the department a an application for registration on a form prescribed
20by the department, together with the registration fee determined by the department
21under s. 440.03 (9) (a)
, that contains all of the following information:
AB286, s. 6 22Section 6. 461.02 (3) (a) of the statutes, as created by 2007 Wisconsin Act 189,
23is amended to read:
AB286,4,324 461.02 (3) (a) Each professional employer organization or professional
25employer group that is operating in this state on July 1, 2009, shall register with the

1department by no later than 180 days after that date. An initial registration under
2this paragraph is valid until 180 days after the end of the first fiscal year of the
3registrant that ends more than one year after July 1, 2009.
AB286, s. 7 4Section 7. 461.02 (3) (b) of the statutes, as created by 2007 Wisconsin Act 189,
5is amended to read:
AB286,4,126 461.02 (3) (b) Any person that is not engaged in the business of providing
7operating as a professional employer services organization or a professional
8employer group
in this state on July 1, 2009, shall register with the department
9before engaging in that business operating as a professional employer organization
10or professional employer group
in this state. An initial registration under this
11paragraph is valid until 180 days after the end of the first fiscal year of the registrant
12that ends after the date of initial registration.
AB286, s. 8 13Section 8. 461.02 (4) (title) of the statutes, as created by 2007 Wisconsin Act
14189
, is repealed and recreated to read:
AB286,4,1615 461.02 (4) (title) Registration renewal; extension for filing updated
16financial statement.
AB286, s. 9 17Section 9. 461.02 (4) of the statutes, as created by 2007 Wisconsin Act 189, is
18renumbered 461.02 (4) (a) and amended to read:
AB286,5,219 461.02 (4) (a) A On or before the applicable renewal date specified under s.
20440.08 (2) (a), and except as provided in par. (b) and sub. (7) (b), a
registrant that
21wishes to renew its registration shall, by no later than 180 days after the end of the
22registrant's fiscal year, renew that registration by notifying
submit to the
23department of any changes in the information specified in sub. (2) (a) to (e), filing,
24on forms furnished by the department, a renewal application, together with
an
25updated financial statement as described in sub. (2) (f), and paying the renewal

1credential fee determined by the department under s. 440.03 (9) (a). A renewal of
2registration is valid for one year after the date of renewal.
AB286,5,8 3(b) A registrant may apply to the department for an extension of the time within
4which to renew a registration submit the updated financial statement required
5under par. (a)
by providing with the renewal application a letter from the certified
6public accountant who is auditing the registrant's financial statement stating the
7reasons for the delay and the anticipated completion date of the audit. A renewal
8registration is valid for one year after the date of renewal.
AB286, s. 10 9Section 10. 461.02 (5) of the statutes, as created by 2007 Wisconsin Act 189,
10is amended to read:
AB286,5,2311 461.02 (5) Limited registration. (a) A Except as provided in sub. (7) (b), a
12professional employer organization or professional employer group that is domiciled
13outside this state, that is registered or licensed as a professional employer
14organization or professional employer group in another state, that does not maintain
15an office in this state or directly solicit clients that are located or domiciled in this
16state, and that has no more than 50 employees performing services for clients in this
17state on any given day may apply for limited registration under this section by filing
18with the department a limited registration form prescribed by the department and
19paying the initial credential fee determined by the department under s. 440.03 (9)
20(a). An applicant that is seeking limited registration shall, in addition to the
21information provided under sub. (2), provide the department with information and
22documentation showing that the applicant meets the qualifications specified in this
23paragraph for limited registration.
AB286,6,324 (b) A Except as provided in sub. (7) (b), a professional employer organization
25or professional employer group seeking limited registration that has employees

1performing services for clients in this state on July 1, 2009, shall register with the
2department as provided in sub. (3) (a), and the initial limited registration shall be
3valid as provided in sub. (3) (a).
AB286,6,84 (c) A Except as provided in sub. (7) (b), a professional employer organization
5or professional employer group seeking limited registration that does not have
6employees performing services for clients in this state on July 1, 2009, shall register
7with the department as provided in sub. (3) (b), before contracting with a client in this
8state, and the initial limited registration shall be valid as provided in sub. (3) (b).
AB286,6,159 (d) A registrant Except as provided in sub. (7) (b), a professional employer
10organization or professional employer group registered under this subsection
that
11wishes to renew its limited registration shall, in addition to complying with sub. (4),
12provide the department with information and documentation showing that the
13registrant professional employer organization or professional employer group
14continues to meet the qualifications specified in par. (a) for limited registration, and
15the limited registration shall be valid as provided in sub. (4).
AB286,6,1816 (e) A limited registrant professional employer organization or professional
17employer group registered under this subsection
is not required to comply with the
18financial capability requirement under s. 461.03.
AB286, s. 11 19Section 11. 461.02 (6) of the statutes, as created by 2007 Wisconsin Act 189,
20is amended to read:
AB286,7,621 461.02 (6) Professional employer group registration. Two Except as
22provided in sub. (7) (b), 2
or more professional employer organizations that are part
23of a professional employer group may register under this section or renew a
24registration by providing the information required under sub. (2), (4), or (5) on a
25combined or consolidated basis, paying the initial credential or renewal fee

1determined by the department under s. 440.03 (9) (a), and guaranteeing each other's
2obligations. If a professional employer group provides a combined or consolidated
3financial statement under sub. (2) (f) that includes the financial condition of entities
4that are not part of the professional employer group, the person controlling the
5professional employer group shall guarantee the obligations of the professional
6employer organizations in the professional employer group.
AB286, s. 12 7Section 12. 461.02 (7) (b) of the statutes, as created by 2007 Wisconsin Act 189,
8is amended to read:
AB286,7,179 461.02 (7) (b) The department may by rule provide for registration of a
10professional employer organization or professional employer group without
11compliance with sub. (2), (4), (5), or (6), s. 461.03, or rules promulgated under s.
12461.06 on acceptance by the department of assurance provided by a bonded,
13independent, and qualified assurance organization that has been approved by the
14department that provides assurance satisfactory to the department that the
15professional employer organization or professional employer group is qualified to
16engage in the business of providing operate as a professional employer services
17organization or a professional employer group in this state.
AB286, s. 13 18Section 13. 461.02 (8) of the statutes, as created by 2007 Wisconsin Act 189,
19is amended to read:
AB286,8,720 461.02 (8) Issuance of registration. On receipt of an application for
21registration or for renewal of a registration under subs. (3) to (7) and of the initial
22credential fee or renewal fee determined by the department under s. 440.03 (9) (a),
23the
The department shall investigate the applicant or registrant each applicant or
24registrant who submits to the department an application for registration or
25registration renewal under this section, together with the applicable registration or

1registration renewal fee,
to determine whether the applicant or registrant is
2qualified for registration or for renewal registration. Except as provided in s. 440.12
3and 440.13, the department shall issue a registration or renewal registration if, after
4completing the investigation, the department determines that the applicant or
5registrant meets the requirements under this chapter and rules promulgated under
6s. 461.06 for issuance or renewal of a registration and is satisfied that the applicant
7or registrant will comply with this chapter and those rules.
AB286, s. 14 8Section 14. 461.04 (1) (intro.) of the statutes, as created by 2007 Wisconsin Act
9189
, is amended to read:
AB286,8,2310 461.04 (1) Professional employer services organization and professional
11employer group
not insurance. (intro.) A professional employer organization or
12professional employer group that offers, markets, sells, administers, or provides
13professional employer services that include the provision of employee benefit plans
14for the employees of the professional employer organization or professional employer
15group performing services for a client is not engaged in the business or sale of
16insurance or in the business of an employee benefit plan administrator under ch. 633.
17This subsection shall be liberally construed to permit professional employer
18organizations and professional employer groups to provide employee benefit plans
19as provided in this subsection without being considered to be engaged in the business
20or sale of insurance or in the business of an employee benefit plan administrator
21under ch. 633. If a professional employer organization or professional employer
22group provides life insurance, health care, or disability income benefits for its
23employees performing services for a client, all of the following apply:
AB286, s. 15 24Section 15. Effective date.
AB286,9,2
1(1) This act takes effect on July 1, 2009, or on the day after publication,
2whichever is later.
AB286,9,33 (End)
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