SB504, s. 5 22Section 5. 461.02 (2) (f) 2. of the statutes is created to read:
SB504,4,2423 461.02 (2) (f) 2. Subdivision 1. does not apply to a professional employer
24organization or professional employer group applying for registration under sub. (5).
SB504, s. 6
1Section 6. 461.02 (4) (a) of the statutes, as affected by 2009 Wisconsin Act 29,
2is amended to read:
SB504,5,133 461.02 (4) (a) On Renewal applications shall be submitted, together with the
4applicable renewal fee determined by the department under s. 440.03 (9) (a), to the
5department on a form provided by the department on
or before the applicable
6renewal date specified under s. 440.08 (2) (a), and except . Except as provided in par.
7pars. (b) and (c) and sub. (7) (b), a registrant that wishes to renew its registration
8the renewal application shall submit to the department, on forms furnished by the
9department, a renewal application, together with an updated
be accompanied by a
10financial statement described, as that term is used in sub. (2) (f) and the renewal fee
11determined by the department under s. 440.03 (9) (a). A renewal of registration is
12valid for one year after the date of renewal
1., updated to reflect the current financial
13condition of the registrant
.
SB504, s. 7 14Section 7. 461.02 (4) (c) of the statutes is created to read:
SB504,5,1715 461.02 (4) (c) A professional employer organization or professional employer
16group applying to renew a registration issued under sub. (5) is not required to submit
17a financial statement under this subsection.
SB504, s. 8 18Section 8. 461.02 (5) (title) of the statutes is amended to read:
SB504,5,1919 461.02 (5) (title) Limited Small operations registration.
SB504, s. 9 20Section 9. 461.02 (5) (a) to (d) of the statutes, as affected by 2009 Wisconsin
21Act 29
, are amended to read:
SB504,6,1022 461.02 (5) (a) Except as provided in sub. (7) (b), a professional employer
23organization or professional employer group that is domiciled outside this state, that
24is registered or licensed as a professional employer organization or professional
25employer group in another state, that does not maintain an office in this state or

1directly solicit clients that are located or domiciled in this state, and that has no more
2than 50 employees performing services for clients in this state on any given day may
3apply for limited small operations registration under this section by filing with the
4department a limited small operations registration form prescribed by the
5department and paying the initial credential fee determined by the department
6under s. 440.03 (9) (a). An applicant that is seeking limited small operations
7registration shall, in addition to the information provided required under sub. (2) (a)
8to (e)
, provide the department with information and documentation showing that the
9applicant meets the qualifications specified in this paragraph for limited small
10operations
registration.
SB504,6,1511 (b) Except as provided in sub. (7) (b), a professional employer organization or
12professional employer group seeking limited small operations registration that has
13employees performing services for clients in this state on July 1, 2009, shall register
14with the department as provided in sub. (3) (a), and the initial limited registration
15shall be valid as provided in sub. (3) (a)
.
SB504,6,2116 (c) Except as provided in sub. (7) (b), a professional employer organization or
17professional employer group seeking limited small operations registration that does
18not have employees performing services for clients in this state on July 1, 2009, shall
19register with the department as provided in sub. (3) (b), before contracting with a
20client in this state, and the initial limited registration shall be valid as provided in
21sub. (3) (b)
.
SB504,7,322 (d) Except as provided in sub. (7) (b), a professional employer organization or
23professional employer group registered under this subsection that wishes to renew
24its limited small operations registration shall, in addition to complying with sub. (4),
25provide the department with information and documentation showing that the

1professional employer organization or professional employer group continues to
2meet the qualifications specified in par. (a) for limited small operations registration,
3and the limited registration shall be valid as provided in sub. (4)
.
SB504, s. 10 4Section 10. 461.02 (6) of the statutes, as affected by 2009 Wisconsin Act 29,
5is amended to read:
SB504,7,166 461.02 (6) Professional employer group registration. Except as provided in
7sub. (7) (b), 2 or more professional employer organizations that are part of a
8professional employer group may register under this section or renew a registration
9by providing the information required under sub. (2), (4), or (5) on a combined or
10consolidated basis, paying the initial credential or renewal fee determined by the
11department under s. 440.03 (9) (a), and guaranteeing each other's obligations. If a
12professional employer group provides a combined or consolidated financial
13statement under sub. (2) (f) 1. that includes the financial condition of entities that
14are not part of the professional employer group, the person controlling the
15professional employer group shall guarantee the obligations of the professional
16employer organizations in the professional employer group.
SB504, s. 11 17Section 11. 461.02 (9) (intro.) (except 461.02 (9) (title)) of the statutes is
18renumbered 461.02 (9) (am) and amended to read:
SB504,7,2219 461.02 (9) (am) The department shall maintain and periodically update a list
20of all professional employer organizations and professional employer groups
21registered under this section. All, and shall make the list available on the
22department's Internet Web site. The list shall include the address of each registrant.
SB504,8,2 23(bm) Except as provided in par. (am), all records maintained by the department
24that contain any information obtained from an applicant or registrant are

1confidential and not open to public inspection or copying under s. 19.35 (1) unless one
2of the following applies:
SB504, s. 12 3Section 12. 461.02 (9) (a) to (d) of the statutes are renumbered 461.02 (9) (bm)
41. to 4.
SB504, s. 13 5Section 13. 461.03 (1) of the statutes is amended to read:
SB504,8,196 461.03 (1) Working capital requirement. Working capital, as defined by
7generally accepted accounting principals, of not less than $100,000, as shown in the
8financial statement submitted to the department under s. 461.02 (2) (f) 1., (4), or (6).
9If a professional employer organization or professional employer group has less than
10$100,000 in working capital, the department may issue a registration or renewal
11registration contingent on the registrant meeting the working capital requirement
12of this subsection no later than 180 days after the issuance of the registration or
13renewal registration. During the period of contingent registration, the registrant
14shall submit quarterly financial statements to the department accompanied by an
15attestation by the chief executive officer of the registrant that all wages, salaries,
16employee benefits, worker's compensation insurance premiums, payroll taxes,
17unemployment insurance contributions, and other amounts that are payable to or
18with respect to an employee of the registrant performing services for a client were
19paid by the registrant when due.
SB504, s. 14 20Section 14. 461.03 (2) of the statutes is amended to read:
SB504,9,1621 461.03 (2) Alternative commitment. A bond, certificate of deposit, escrow
22account, or irrevocable letter of credit in an amount that is not less than $100,000
23or, if the financial statement submitted to the department under s. 461.02 (2) (f) 1.,
24(4), or (6) indicates a deficit in working capital, a bond, certificate of deposit, escrow
25account, or irrevocable letter of credit in an amount that is not less than $100,000

1plus an amount that is sufficient to cover that deficit. The commitment described in
2this subsection shall be in a form approved by the department, shall be held in a
3depository designated by the department, and shall secure the payment by the
4professional employer organization or professional employer group of any wages,
5salaries, employee benefits, worker's compensation insurance premiums, payroll
6taxes, unemployment insurance contributions, or other amounts that are payable to
7or with respect to an employee performing services for a client if the professional
8employer organization or professional employer group does not make those
9payments when due. The commitment shall be established in favor of or be made
10payable to the department, for the benefit of the state and any employee to whom or
11with respect to whom the professional employer organization or professional
12employer group does not make a payment described in this subsection when due. The
13professional employer organization or professional employer group shall file with the
14department any agreement, instrument, or other document that is necessary to
15enforce the commitment against the professional employer organization or
16professional employer group, or against any relevant 3rd party, or both.
SB504, s. 15 17Section 15. 461.04 (4) (title) of the statutes is amended to read:
SB504,9,1918 461.04 (4) (title) Tax credits and other economic development incentives;
19taxes, assessments, expenditures, and benefits
.
SB504, s. 16 20Section 16. 461.04 (4) of the statutes is renumbered 461.04 (4) (b) and
21amended to read:
SB504,9,2522 461.04 (4) (b) For purposes of determining tax credits, other economic
23development incentives provided by the state or a local governmental unit that are
24based on providing employment, or any other benefits that arises arise out of the
25employment of an employee of a professional employer organization or professional

1employer group who is performing services for a client, such an employee is
2considered to be an employee solely of the client, and the client is entitled to the
3benefit of the tax credit, economic development incentive, or other benefit. If the
4amount of a tax credit, incentive, or benefit described in this subsection paragraph
5is based on the number of employees employed by a client, only those employees of
6a professional employer organization or professional employer group who are
7performing services for the client shall be treated as employees employed by the
8client, and employees of the professional employer organization or professional
9employer group who are performing services for the professional employer
10organization or professional employer group or for
another client shall not be treated
11as employees employed by the client. On request of a client that is seeking a tax
12credit, incentive, or other benefit described in this subsection paragraph or on
13request
of an agency of this state or local governmental unit that is responsible for
14administering such a tax credit, incentive, or benefit, a professional employer
15organization or professional employer group shall provide any employment
16information requested and reasonably required by the agency or local governmental
17unit
that is necessary to support a claim, application, or other action by the client.
SB504, s. 17 18Section 17. 461.04 (4) (a) of the statutes is created to read:
SB504,10,2019 461.04 (4) (a) In this subsection, "local governmental unit" has the meaning
20given in s. 19.42 (7u).
SB504, s. 18 21Section 18. 461.04 (4) (c) of the statutes is created to read:
SB504,11,722 461.04 (4) (c) Taxes, assessments, expenditures, or benefits required by the
23state or a local governmental unit to be paid by an employer on a per employee basis
24shall be paid by, assessed against, or charged to a client if the employee is providing
25services for that client or by a professional employer organization or professional

1employer group if the employee is providing services to the professional employer
2organization or professional employer group and not assigned to or providing
3services for a specific client. Benefits or monetary consideration provided or paid to
4an employee by a professional employer organization or professional employer group
5shall be credited against the obligations required to be paid by, assessed against, or
6charged to the client if the benefits or monetary consideration provided or paid to the
7employee satisfy the requirements imposed by the state or local governmental unit.
SB504, s. 19 8Section 19. 461.10 of the statutes is created to read:
SB504,11,10 9461.10 Short title. This chapter shall be known as the "Wisconsin
10Professional Employer Organizations Act."
SB504,11,1111 (End)
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