AB760,8,2
22(3) Initial registration. (a) Each professional employer organization or
23professional employer group that is operating in this state on the effective date of this
24paragraph .... [revisor inserts date], shall register with the department by no later
25than 180 days after that date. An initial registration under this paragraph is valid
1until 180 days after the end of the first fiscal year of the registrant that ends more
2than one year after the effective date of this paragraph .... [revisor inserts date].
AB760,8,83
(b) Any person that is not engaged in the business of providing professional
4employer services in this state on the effective date of this paragraph .... [revisor
5inserts date], shall register with the department before engaging in that business in
6this state. An initial registration under this paragraph is valid until 180 days after
7the end of the first fiscal year of the registrant that ends after the date of initial
8registration.
AB760,8,18
9(4) Renewal registration. A registrant that wishes to renew its registration
10shall, by no later than 180 days after the end of the registrant's fiscal year, renew that
11registration by notifying the department of any changes in the information specified
12in sub. (2) (a) to (e), filing an updated financial statement as described in sub. (2) (f),
13and paying the renewal credential fee determined by the department under s. 440.03
14(9) (a). A registrant may apply to the department for an extension of the time within
15which to renew a registration by providing with the application a letter from the
16certified public accountant who is auditing the registrant's financial statement
17stating the reasons for the delay and the anticipated completion date of the audit.
18A renewal registration is valid for one year after the date of renewal.
AB760,9,5
19(5) Limited registration. (a) A professional employer organization or
20professional employer group that is domiciled outside this state, that is registered
21or licensed as a professional employer organization or professional employer group
22in another state, that does not maintain an office in this state or directly solicit clients
23that are located or domiciled in this state, and that has no more than 50 employees
24performing services for clients in this state on any given day may apply for limited
25registration under this section by filing with the department a limited registration
1form prescribed by the department and paying the initial credential fee determined
2by the department under s. 440.03 (9) (a). An applicant that is seeking limited
3registration shall, in addition to the information provided under sub. (2), provide the
4department with information and documentation showing that the applicant meets
5the qualifications specified in this paragraph for limited registration.
AB760,9,106
(b) A professional employer organization or professional employer group
7seeking limited registration that has employees performing services for clients in
8this state on the effective date of this paragraph .... [revisor inserts date], shall
9register with the department as provided in sub. (3) (a), and the initial limited
10registration shall be valid as provided in sub. (3) (a).
AB760,9,1611
(c) A professional employer organization or professional employer group
12seeking limited registration that does not have employees performing services for
13clients in this state on the effective date of this paragraph .... [revisor inserts date],
14shall register with the department as provided in sub. (3) (b), before employing any
15employees to perform services for clients in this state, and the initial limited
16registration shall be valid as provided in sub. (3) (b).
AB760,9,2117
(d) A registrant that wishes to renew its limited registration shall, in addition
18to complying with sub. (4), provide the department with information and
19documentation showing that the registrant continues to meet the qualifications
20specified in par. (a) for limited registration, and the limited registration shall be valid
21as provided in sub. (4).
AB760,9,2322
(e) A limited registrant is not required to comply with the financial capability
23requirement under s. 461.03.
AB760,9,25
24(6) Professional employer group registration. Two or more professional
25employer organizations that are part of a professional employer group may register
1under this section or renew a registration by providing the information required
2under sub. (2), (4), or (5) on a combined or consolidated basis, paying the initial
3credential or renewal fee determined by the department under s. 440.03 (9) (a), and
4guaranteeing each other's obligations. If a professional employer group provides a
5combined or consolidated financial statement under sub. (2) (f) that includes the
6financial condition of entities that are not part of the professional employer group,
7the person controlling the professional employer group shall guarantee the
8obligations of the professional employer organizations in the professional employer
9group.
AB760,10,16
10(7) Alternative registration. (a) The department shall by rule provide for
11registration of a professional employer organization or professional employer group
12on acceptance by the department of a registration form, financial statement, or any
13other information or documentation required under sub. (2), (4), (5), or (6), s. 461.03,
14or rules promulgated under s. 461.06 in the form of an electronic record, as defined
15in s. 137.11 (7) and, if a signature is required, on acceptance of an electronic
16signature, as defined in s. 137.11 (8).
AB760,10,2417
(b) The department may by rule provide for registration of a professional
18employer organization or professional employer group without compliance with sub.
19(2), (4), (5), or (6), s. 461.03, or rules promulgated under s. 461.06 on acceptance by
20the department of assurance provided by a bonded, independent, and qualified
21assurance organization that has been approved by the department that provides
22assurance satisfactory to the department that the professional employer
23organization or professional employer group is qualified to engage in the business of
24providing professional employer services in this state.
AB760,11,7
1(c) This subsection does not limit the authority of the department to require a
2professional employer organization or professional employer group to register as
3provided in sub. (2), (4), (5), or (6), to maintain proof of financial capability as
4required under s. 461.03, or to comply with this chapter and the rules promulgated
5under s. 461.06; to investigate an applicant or registrant and deny registration or
6renewal registration under sub. (8), or to investigate an applicant, registrant. or
7controlling person and take disciplinary action under s. 461.05.
AB760,11,17
8(8) Issuance of registration. On receipt of an application for registration or
9for renewal of a registration under subs. (3) to (7) and of the initial credential fee or
10renewal fee determined by the department under s. 440.03 (9) (a), the department
11shall investigate the applicant or registrant to determine whether the applicant or
12registrant is qualified for registration or for renewal registration. Except as provided
13in s. 440.12 and 440.13, the department shall issue a registration or renewal
14registration if, after completing the investigation, the department determines that
15the applicant or registrant meets the requirements under this chapter and rules
16promulgated under s. 461.06 for issuance or renewal of a registration and is satisfied
17that the applicant or registrant will comply with this chapter and those rules.
AB760,11,23
18(9) List of registrants; confidentiality. The department shall maintain a list
19of all professional employer organizations and professional employer groups
20registered under this section. All records maintained by the department that contain
21any information obtained from an applicant or registrant are confidential and not
22open to public inspection or copying under s. 19.35 (1) unless one of the following
23applies:
AB760,11,2424
(a) Disclosure of the record is necessary for the administration of this section.
AB760,12,2
1(b) A court of competent jurisdiction in this state orders the department to
2release the record.
AB760,12,83
(c) The requester is the department of children and families or a county child
4support agency under s. 59.53 (5), the request is made under s. 49.22 (2m), and the
5request is limited to the name, home address, and business address of the applicant,
6registrant, or controlling person who is the subject of the request and any financial
7information about the applicant, registrant, or controlling person contained in the
8record.
AB760,12,129
(d) The department of revenue requests the record for the purpose of locating
10a person, or the assets of a person, who has failed to file tax returns, who has
11underreported taxable income, or who is a delinquent taxpayer; identifying
12fraudulent tax returns; or providing information for tax-related prosecutions.
AB760,12,15
13461.03 Financial capability. Except as provided in s. 461.02 (5) (e) or (7) (b),
14a professional employer organization or professional employer group shall maintain
15one of the following:
AB760,13,4
16(1) Working capital requirement. Working capital, as defined by generally
17accepted accounting principals, of not less than $100,000, as shown in the financial
18statement submitted to the department under s. 461.02 (2) (f), (4), or (6). If a
19professional employer organization or professional employer group has less than
20$100,000 in working capital, the department may issue a registration or renewal
21registration contingent on the registrant meeting the working capital requirement
22of this subsection no later than 180 days after the issuance of the registration or
23renewal registration. During the period of contingent registration, the registrant
24shall submit quarterly financial statements to the department accompanied by an
25attestation by the chief executive officer of the registrant that all wages, salaries,
1employee benefits, worker's compensation insurance premiums, payroll taxes,
2unemployment insurance contributions, and other amounts that are payable to or
3with respect to an employee of the registrant performing services for a client were
4paid by the registrant when due.
AB760,13,25
5(2) Alternative commitment. A bond, certificate of deposit, escrow account, or
6irrevocable letter of credit in an amount that is not less than $100,000 or, if the
7financial statement submitted to the department under s. 461.02 (2) (f), (4), or (6)
8indicates a deficit in working capital, a bond, certificate of deposit, escrow account,
9or irrevocable letter of credit in an amount that is not less than $100,000 plus an
10amount that is sufficient to cover that deficit. The commitment described in this
11subsection shall be in a form approved by the department, shall be held in a
12depository designated by the department, and shall secure the payment by the
13professional employer organization or professional employer group of any wages,
14salaries, employee benefits, worker's compensation insurance premiums, payroll
15taxes, unemployment insurance contributions, or other amounts that are payable to
16or with respect to an employee performing services for a client if the professional
17employer organization or professional employer group does not make those
18payments when due. The commitment shall be established in favor of or be made
19payable to the department, for the benefit of the state and any employee to whom or
20with respect to whom the professional employer organization or professional
21employer group does not make a payment described in this subsection when due. The
22professional employer organization or professional employer group shall file with the
23department any agreement, instrument, or other document that is necessary to
24enforce the commitment against the professional employer organization or
25professional employer group, or against any relevant 3rd party, or both.
AB760,14,12
1461.04 Rights, duties, and obligations unaffected. (1) Professional
2employer services not insurance. A professional employer organization or
3professional employer group that offers, markets, sells, administers, or provides
4professional employer services that include the provision of employee benefit plans
5for the employees of the professional employer organization or professional employer
6group performing services for a client is not engaged in the business or sale of
7insurance or in the business of an employee benefit plan administrator under ch. 633.
8This subsection shall be liberally construed to permit professional employer
9organizations and professional employer groups to provide employee benefit plans
10as provided in this subsection without being considered to be engaged in the business
11or sale of insurance or in the business of an employee benefit plan administrator
12under ch. 633.
AB760,14,17
13(2) Insurer not small employer insurer. An insurer that contracts with a
14professional employer organization or professional employer group that has more
15than 50 employees performing services for one or more clients is not a small employer
16insurer, as defined in s. 635.02 (8), with respect to the contract between the insurer
17and the professional employer organization or professional employer group.
AB760,14,21
18(3) Licensing. Nothing in this chapter or in any contract for the provision of
19the nontemporary, ongoing workforce of a client may be construed to affect or impair
20any federal, state, or local licensing, registration, or certification requirement that
21is applicable to a client or to an employee performing services for a client.
AB760,15,15
22(4) Tax credits and other economic development incentives. For purposes of
23determining tax credits, other economic development incentives provided by the
24state that are based on providing employment, or any other benefits that arises out
25of the employment of an employee of a professional employer organization or
1professional employer group who is performing services for a client, such an
2employee is considered to be an employee solely of the client, and the client is entitled
3to the benefit of the tax credit, economic development incentive, or other benefit. If
4the amount of a tax credit, incentive, or benefit described in this subsection is based
5on the number of employees employed by a client, only those employees of a
6professional 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 another client shall not be treated
10as employees employed by the client. On request of a client that is seeking a tax
11credit, incentive, or other benefit described in this subsection or of an agency of this
12state that is responsible for administering such a tax credit, incentive, or benefit, a
13professional employer organization or professional employer group shall provide any
14employment information reasonably required by the agency that is necessary to
15support a claim, application, or other action by the client.
AB760,15,19
16461.05 Disciplinary proceedings. (1) Investigations. Subject to the rules
17promulgated under s. 440.03 (1), the department may conduct investigations and
18hearings to determine whether a violation of this chapter or any rule promulgated
19under s. 461.06 has occurred.
AB760,15,24
20(2) Disciplinary action. Subject to the rules promulgated under s. 440.03 (1),
21the department may reprimand a professional employer organization or professional
22employer group or deny, limit, suspend, revoke, restrict, refuse to renew, or otherwise
23withhold a registration if the department finds that an applicant, registrant, or
24controlling person has done any of the following:
AB760,16,2
1(a) Conducted any of the activities specified in s. 461.02 (1) without first
2registering with the department as provided in s. 461.02.
AB760,16,53
(b) Knowingly made a material misrepresentation or false statement in an
4application for registration or for renewal of a registration under s. 461.02 or in a
5report under s. 108.067.
AB760,16,106
(c) Been convicted of any crime in connection with the operation of a
7professional employer organization or professional employer group, any crime that
8involves fraud or deceit, or any crime that otherwise affects the ability of the
9applicant, registrant, or controlling person to operate a professional employer
10organization or professional employer group.
AB760,16,1211
(d) Willfully committed a violation of this chapter or of a rule promulgated
12under s. 461.06.
AB760,16,17
13(3) Forfeiture. In addition to or in lieu of a reprimand or a denial, limitation,
14suspension, revocation, restriction, nonrenewal, or other withholding of a
15registration under sub. (2), the department may assess against an applicant,
16registrant, or controlling person a forfeiture of not more than $1,000 for each
17violation.
AB760,16,22
18(4) Injunction. If it appears upon complaint to the department by any person
19or it is known to the department that any person is violating this chapter, the
20department or the district attorney of the proper county may investigate and may,
21in addition to any other remedies, bring action in the name of and on behalf of the
22state against any such person to enjoin such person from such violations.
AB760,16,25
23(5) Judicial review. Any person who is aggrieved by any action taken under
24this chapter by the department, its officers, or agents may apply for judicial review
25as provided in ch. 227.
AB760,17,2
1461.06 Rules. The department shall promulgate rules to implement this
2chapter. Those rules shall include rules providing for all of the following:
AB760,17,4
3(1) Alternative registration of professional employer organizations under s.
4461.02 (7) (a) and (b).
AB760,17,6
5(2) Reasonable fees for any service provided under this chapter that do not
6exceed an amount that is necessary to cover the cost of providing that service.
AB760,17,8
7(3) Minimum requirements for issuance or renewal of a registration under s.
8461.02 (8).
AB760, s. 4
9Section
4. 635.02 (7) (b) 3. and 4. of the statutes are created to read:
AB760,17,1310
635.02
(7) (b) 3. A professional employer organization, as defined in s. 461.01
11(5), or a professional employer group, as defined in s. 461.01 (4), that provides health
12care benefits to more than 50 employees performing services for a client, as defined
13in s. 461.01 (2).
AB760,17,1814
4. A client of a professional employer organization or professional employer
15group specified in subd. 3., if the employees of the professional employer organization
16or professional employer group performing services for the client are offered health
17care benefits under a health benefit plan sponsored by the professional employer
18organization or professional employer group.
AB760,17,2420
(1)
Rule making. The department of regulation and licensing shall submit in
21proposed form the rules required under section 461.06 of the statutes, as created by
22this act, to the legislative council staff under section 227.15 (1) of the statutes no later
23than the first day of the 6th month beginning after the effective date of this
24subsection.
AB760,18,6
1(2)
position authorization. The authorized FTE positions for the department
2of regulation and licensing are increased by 0.5 PR position on July 1, 2009, to be
3funded from the appropriation under section 20.165 (1) (g) of the statutes, for the
4purpose of administering the registration of professional employer organizations
5and professional employer groups under chapter 461 of the statutes, as created by
6this act.
AB760,18,187
(3)
Initial fee determination. The department of regulation and licensing
8shall determine the initial fees for registration or for renewal registration under
9section 461.02 (3) to (7) of the statutes, as created by this act, as provided in section
10440.03 (9) of the statutes. Not later than 14 days after determining those fees, the
11department shall send a report detailing those proposed fees to the cochairpersons
12of the joint committee on finance. If, within 14 days after the date on which the
13department submits the report, the cochairpersons of the committee notify the
14secretary of regulation and licensing that the committee has scheduled a meeting for
15the purpose of reviewing the proposed fees, the department may not impose the fees
16until the committee approves the report. If the cochairpersons of the committee do
17not notify the secretary, the department shall post the fees on the department's
18Internet site.
AB760, s. 6
19Section
6.
Effective dates. This act takes effect on July 1, 2009, except as
20follows:
AB760,18,2221
(1)
Rule making initial fee determination. The treatment of
Section 5 (1
) and
22(3) of this act takes effect on the day after publication.