Amendment ASA1-AB760

AB760-ASA1,11,22 (8) Issuance of registration. On receipt of an application for registration or for renewal of a registration under subs. (3) to (7), the department shall investigate the applicant or registrant to determine whether the applicant or registrant is qualified for registration or for renewal registration. Except as provided in s. 440.12 and 440.13, the department shall issue a registration or renewal registration if, after completing the investigation, the department determines that the applicant or registrant meets the requirements under this chapter and rules promulgated under s. 461.06 for issuance or renewal of a registration and is satisfied that the applicant or registrant will comply with this chapter and those rules.

AB760-ASA1,12,3 (9) List of registrants; confidentiality. The department shall maintain a list of all professional employer organizations and professional employer groups registered under this section. All records maintained by the department that contain any information obtained from an applicant or registrant are confidential and not open to public inspection or copying under s. 19.35 (1) unless one of the following applies:

AB760-ASA1,12,4 (a) Disclosure of the record is necessary for the administration of this section.

AB760-ASA1,12,6 (b) A court of competent jurisdiction in this state orders the department to release the record.

AB760-ASA1,12,12 (c) The requester is the department of children and families or a county child support agency under s. 59.53 (5), the request is made under s. 49.22 (2m), and the request is limited to the name, home address, and business address of the applicant, registrant, or controlling person who is the subject of the request and any financial information about the applicant, registrant, or controlling person contained in the record.

AB760-ASA1,12,16 (d) The department of revenue requests the record for the purpose of locating a person, or the assets of a person, who has failed to file tax returns, who has underreported taxable income, or who is a delinquent taxpayer; identifying fraudulent tax returns; or providing information for tax-related prosecutions.

AB760-ASA1,12,19 461.03 Financial capability. Except as provided in s. 461.02 (5) (e) or (7) (b), a professional employer organization or professional employer group shall maintain one of the following:

AB760-ASA1,13,8 (1) Working capital requirement. Working capital, as defined by generally accepted accounting principals, of not less than $100,000, as shown in the financial statement submitted to the department under s. 461.02 (2) (f), (4), or (6). If a professional employer organization or professional employer group has less than $100,000 in working capital, the department may issue a registration or renewal registration contingent on the registrant meeting the working capital requirement of this subsection no later than 180 days after the issuance of the registration or renewal registration. During the period of contingent registration, the registrant shall submit quarterly financial statements to the department accompanied by an attestation by the chief executive officer of the registrant that all wages, salaries, employee benefits, worker's compensation insurance premiums, payroll taxes, unemployment insurance contributions, and other amounts that are payable to or with respect to an employee of the registrant performing services for a client were paid by the registrant when due.

AB760-ASA1,14,4 (2) Alternative commitment. A bond, certificate of deposit, escrow account, or irrevocable letter of credit in an amount that is not less than $100,000 or, if the financial statement submitted to the department under s. 461.02 (2) (f), (4), or (6) indicates a deficit in working capital, a bond, certificate of deposit, escrow account, or irrevocable letter of credit in an amount that is not less than $100,000 plus an amount that is sufficient to cover that deficit. The commitment described in this subsection shall be in a form approved by the department, shall be held in a depository designated by the department, and shall secure the payment by the professional employer organization or professional employer group of any wages, salaries, employee benefits, worker's compensation insurance premiums, payroll taxes, unemployment insurance contributions, or other amounts that are payable to or with respect to an employee performing services for a client if the professional employer organization or professional employer group does not make those payments when due. The commitment shall be established in favor of or be made payable to the department, for the benefit of the state and any employee to whom or with respect to whom the professional employer organization or professional employer group does not make a payment described in this subsection when due. The professional employer organization or professional employer group shall file with the department any agreement, instrument, or other document that is necessary to enforce the commitment against the professional employer organization or professional employer group, or against any relevant 3rd party, or both.

AB760-ASA1,14,18 461.04 Rights, duties, and obligations unaffected. (1) Professional employer services not insurance. A professional employer organization or professional employer group that offers, markets, sells, administers, or provides professional employer services that include the provision of employee benefit plans for the employees of the professional employer organization or professional employer group performing services for a client is not engaged in the business or sale of insurance or in the business of an employee benefit plan administrator under ch. 633. This subsection shall be liberally construed to permit professional employer organizations and professional employer groups to provide employee benefit plans as provided in this subsection without being considered to be engaged in the business or sale of insurance or in the business of an employee benefit plan administrator under ch. 633. If a professional employer organization or professional employer group provides life insurance, health care, or disability income benefits for its employees performing services for a client, all of the following apply:

AB760-ASA1,14,21 (a) The professional employer organization or professional employer group shall fully insure payment of those benefits by having in force a plan or policy of insurance issued by an insurer authorized to do business in this state.

AB760-ASA1,14,25 (b) Subject to any eligibility requirements imposed by the plan or policy under par. (a), the insurer under par. (a) shall accept and insure all employees of the professional employer organization or professional employer group performing services for a client and all beneficiaries of those employees.

AB760-ASA1,15,5 (2) Insurer not small employer insurer. An insurer that contracts with a professional employer organization or professional employer group that has more than 50 employees performing services for one or more clients is not a small employer insurer, as defined in s. 635.02 (8), with respect to the contract between the insurer and the professional employer organization or professional employer group.

AB760-ASA1,15,9 (3) Licensing. Nothing in this chapter or in any contract for the provision of the nontemporary, ongoing workforce of a client may be construed to affect or impair any federal, state, or local licensing, registration, or certification requirement that is applicable to a client or to an employee performing services for a client.

AB760-ASA1,16,3 (4) Tax credits and other economic development incentives. For purposes of determining tax credits, other economic development incentives provided by the state that are based on providing employment, or any other benefits that arises out of the employment of an employee of a professional employer organization or professional employer group who is performing services for a client, such an employee is considered to be an employee solely of the client, and the client is entitled to the benefit of the tax credit, economic development incentive, or other benefit. If the amount of a tax credit, incentive, or benefit described in this subsection is based on the number of employees employed by a client, only those employees of a professional employer organization or professional employer group who are performing services for the client shall be treated as employees employed by the client, and employees of the professional employer organization or professional employer group who are performing services for another client shall not be treated as employees employed by the client. On request of a client that is seeking a tax credit, incentive, or other benefit described in this subsection or of an agency of this state that is responsible for administering such a tax credit, incentive, or benefit, a professional employer organization or professional employer group shall provide any employment information reasonably required by the agency that is necessary to support a claim, application, or other action by the client.

AB760-ASA1,16,7 461.05 Disciplinary proceedings. (1) Investigations. Subject to the rules promulgated under s. 440.03 (1), the department may conduct investigations and hearings to determine whether a violation of this chapter or any rule promulgated under s. 461.06 has occurred.

AB760-ASA1,16,12 (2) Disciplinary action. Subject to the rules promulgated under s. 440.03 (1), the department may reprimand a professional employer organization or professional employer group or deny, limit, suspend, revoke, restrict, refuse to renew, or otherwise withhold a registration if the department finds that an applicant, registrant, or controlling person has done any of the following:

AB760-ASA1,16,14 (a) Conducted any of the activities specified in s. 461.02 (1) without first registering with the department as provided in s. 461.02.

AB760-ASA1,16,17 (b) Knowingly made a material misrepresentation or false statement in an application for registration or for renewal of a registration under s. 461.02 or in a report under s. 108.067.

AB760-ASA1,16,22 (c) Been convicted of any crime in connection with the operation of a professional employer organization or professional employer group, any crime that involves fraud or deceit, or any crime that otherwise affects the ability of the applicant, registrant, or controlling person to operate a professional employer organization or professional employer group.

AB760-ASA1,16,24 (d) Willfully committed a violation of this chapter or of a rule promulgated under s. 461.06.

AB760-ASA1,17,5 (3) Forfeiture. In addition to or in lieu of a reprimand or a denial, limitation, suspension, revocation, restriction, nonrenewal, or other withholding of a registration under sub. (2), the department may assess against an applicant, registrant, or controlling person a forfeiture of not more than $1,000 for each violation.

AB760-ASA1,17,10 (4) Injunction. If it appears upon complaint to the department by any person or it is known to the department that any person is violating this chapter, the department or the district attorney of the proper county may investigate and may, in addition to any other remedies, bring action in the name of and on behalf of the state against any such person to enjoin such person from such violations.

AB760-ASA1,17,13 (5) Judicial review. Any person who is aggrieved by any action taken under this chapter by the department, its officers, or agents may apply for judicial review as provided in ch. 227.

AB760-ASA1,17,15 461.06 Rules. The department shall promulgate rules to implement this chapter. Those rules shall include rules providing for all of the following:

AB760-ASA1,17,17 (1) Alternative registration of professional employer organizations under s. 461.02 (7) (a) and (b).

AB760-ASA1,17,19 (3) Minimum requirements for issuance or renewal of a registration under s. 461.02 (8).

AB760-ASA1, s. 4 Section 4. 635.02 (7) (b) 3. and 4. of the statutes are created to read:

AB760-ASA1,17,24 635.02 (7) (b) 3. A professional employer organization, as defined in s. 461.01 (5), or a professional employer group, as defined in s. 461.01 (4), that provides health care benefits to more than 50 employees performing services for a client, as defined in s. 461.01 (2).

AB760-ASA1,18,5 4. A client of a professional employer organization or professional employer group specified in subd. 3., if the employees of the professional employer organization or professional employer group performing services for the client are offered health care benefits under a health benefit plan sponsored by the professional employer organization or professional employer group.

AB760-ASA1, s. 5 Section 5 . Nonstatutory provisions.

AB760-ASA1,18,11 (1) Rule making. The department of regulation and licensing shall submit in proposed form the rules required under section 461.06 of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 6th month beginning after the effective date of this subsection.

AB760-ASA1, s. 6 Section 6. Effective dates. This act takes effect on July 1, 2009, except as follows:

AB760-ASA1,18,15 (1) Rule making. The treatment of Section 5 (1) of this act takes effect on the day after publication.

AB760-ASA1,18,16 (End)