AB 286

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.