Bill Text: IN HB1166 | 2010 | Regular Session | Introduced
Bill Title: Professional employer organizations.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-01-11 - Representative Torr added as coauthor [HB1166 Detail]
Download: Indiana-2010-HB1166-Introduced.html
Citations Affected: IC 27-16.
Synopsis: Professional employer organizations. Defines "working
capital" for purposes of the law regulating professional employer
organizations (PEOs). Amends the current law applying to PEOs with
respect to registration and financial requirements and unemployment
compensation status. Makes conforming amendments.
Effective: July 1, 2010; January 1, 2012.
January 7, 2010, read first time and referred to Committee on Rules and Legislative
Procedures.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
(1) current assets; and
(2) current liabilities;
determined in accordance with generally accepted accounting principles.
(b) An applicant for registration under this article shall file with the department the following information:
(1) The name or names under which the applicant conducts business.
(2) The address of the principal place of business of the applicant
and the address of each office the applicant maintains in Indiana.
(3) The applicant's taxpayer or employer identification number.
(4) A list by jurisdiction of each name under which the applicant
has operated in the preceding five (5) years, including any
alternative names, names of predecessors, and, if known,
successor business entities.
(5) A statement of ownership that includes the name and evidence
of the business experience of any person that, individually or
acting in concert with one (1) or more other persons, owns or
controls, directly or indirectly, twenty-five percent (25%) or more
of the equity interests of the applicant.
(6) A statement of management that includes the name and
evidence of the business experience of any individual who serves
as president, chief executive officer, or otherwise has the
authority to act as senior executive officer of the applicant.
(7) Except as provided in subsections (c) and (d), a financial
statement:
(A) setting forth the financial condition of the applicant as of
a date not earlier than one hundred eighty (180) days before
the date the financial statement is submitted to the department;
(B) prepared in accordance with generally accepted
accounting principles; and
(C) reviewed audited by an:
(i) independent certified public accountant licensed to
practice in the jurisdiction in which the accountant is
located; or
(ii) individual who is certified under IC 25-2.1-3 or
IC 25-2.1-4;
with a resulting audit report that is issued without
qualification as to the status of the applicant as a going
concern.
(c) If a PEO has less than twelve (12) months of operating
history on which to base an audited financial statement, the PEO
shall file a financial statement that has been reviewed by an:
(1) independent certified public accountant licensed to
practice in the jurisdiction in which the accountant is located;
or
(2) individual who is certified under IC 25-2.1-3 or
IC 25-2.1-4.
(d) An applicant may apply to the department for an extension
of time in which to file the audited financial statement and audit
report required by subsection (b). An application under this
subsection must be accompanied by a letter from the auditor
described in subsection (b) specifying the reason for the requested
extension and the anticipated date by which the audit will be
completed.
(1) submits a properly executed request for limited registration on a form prescribed by the department;
(2) is licensed or registered as a professional employer organization in another state that has licensure or registration requirements that are:
(A) substantially the same as; or
(B) more restrictive than;
the requirements of this article;
(3) does not:
(A) maintain an office; or
(B) directly solicit clients located or domiciled;
in Indiana; and
(4) does not have more than fifty (50) covered employees who are employed or domiciled in Indiana on any day.
(b) A limited registration is valid for one (1) year and may be renewed.
(c) A PEO that seeks limited registration under this section shall provide to the department information and documentation necessary to show that the PEO
(d)
(1) maintain; and
(2) publish on the department's Internet site;
a list of PEOs that are registered under this article.
(1) Maintain positive working capital, as reflected in the financial statement submitted to the department by the PEO or PEO group under IC 27-16-4.
(2) If the PEO or PEO group does not meet the requirement of subdivision (1), maintain any of the following with a minimum aggregate value in an amount that is at least sufficient to eliminate the PEO's or PEO group's negative working capital plus one hundred thousand dollars ($100,000):
(A) A surety bond.
(B) An irrevocable letter of credit.
(C) Securities.
(D) Cash.
(E) A combination of items listed in clauses (A) through (D).
(b)
(b) A PEO is responsible for the payment of contributions, penalties, and interest on wages paid by the PEO to the PEO's covered employees during the term of the professional employer agreement.
(c) A PEO or PEO group is not, as a result of entering into a co-employment relationship, considered to be a successor employer under IC 22-4-10.
