2009 WISCONSIN ACT
29
An Act
to renumber and amend
461.02 (1) and 461.02 (4);
to amend
461.02 (1) (title), 461.02 (2) (intro.), 461.02 (3) (a), 461.02 (3) (b), 461.02 (5), 461.02 (6), 461.02 (7) (b), 461.02 (8) and 461.04 (1) (intro.);
to repeal and recreate
461.02 (4) (title); and
to create
440.08 (2) (a) 63p. and 461.02 (1) (b) of the statutes;
relating to:
professional employer organizations and professional employer groups.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Section
1
.
440.08 (2) (a) 63p. of the statutes is created to read:
440.08
(2)
(a) 63p. Professional employer organization or professional employer group: July 31 of each year.
461.02
(1)
(title)
Registration required
; use of titles
.
Section
3
.
461.02 (1) of the statutes, as created by
2007 Wisconsin Act 189
, is renumbered 461.02 (1) (a) and amended to read:
461.02
(1)
(a) No person may
offer or provide
operate as a
professional employer
services
organization or professional employer group
, advertise that the person is a professional employer organization or
that the person provides professional employer services
professional employer group
, or otherwise hold itself out as a professional employer organization
or professional employer group
unless the person first registers with the department as provided in this section.
To register under this section, a person shall file the registration form under sub. (2) and pay the initial credential fee determined by the department under s. 440.03 (9) (a).
461.02
(1)
(b) No person may designate as the person's title, or append to the person's name the words or letters, "professional employer organization," "P.E.O.," "professional employer group," "P.E.G.," "staff leasing company," "registered staff leasing company," "employee leasing company," or "administrative employer," or other similar titles or letters, or use these titles, words, or letters to describe the person's business or represent that the person or the person's business is registered or licensed as "professional employer organization," "P.E.O.," "professional employer group," "P.E.G.," "staff leasing company," "registered staff leasing company," "employee leasing company," or "administrative employer," unless the person is registered by the department under this chapter.
461.02
(2)
Registration
application
form.
(intro.)
To apply
Except as provided in sub. (7) (b), an applicant
for registration under this section
, an applicant
shall
file with
submit to
the department
a
an application for
registration
on a
form prescribed by the department
, together with the registration fee determined by the department under s. 440.03 (9) (a)
, that contains all of the following information:
461.02
(3)
(a) Each professional employer organization or professional employer group that is operating in this state on July 1, 2009, shall register with the department by no later than 180 days after that date.
An initial registration under this paragraph is valid until 180 days after the end of the first fiscal year of the registrant that ends more than one year after July 1, 2009.
461.02
(3)
(b) Any person that is not
engaged in the business of providing
operating as a
professional employer
services
organization or a professional employer group
in this state on July 1, 2009, shall register with the department before
engaging in that business
operating as a professional employer organization or professional employer group
in this state.
An initial registration under this paragraph is valid until 180 days after the end of the first fiscal year of the registrant that ends after the date of initial registration.
Section
8
.
461.02 (4) (title) of the statutes, as created by
2007 Wisconsin Act 189
, is repealed and recreated to read:
461.02
(4)
(title)
Registration renewal; extension for filing updated financial statement.
Section
9
.
461.02 (4) of the statutes, as created by
2007 Wisconsin Act 189
, is renumbered 461.02 (4) (a) and amended to read:
461.02
(4)
(a)
A
On or before the applicable renewal date specified under s. 440.08 (2) (a), and except as provided in par. (b) and sub. (7) (b), a
registrant that wishes to renew its registration shall
, by no later than 180 days after the end of the registrant's fiscal year, renew that registration by notifying
submit to
the department
of any changes in the information specified in sub. (2) (a) to (e), filing
, on forms furnished by the department, a renewal application, together with
an updated financial statement as described in sub. (2) (f)
,
and
paying
the renewal
credential
fee determined by the department under s. 440.03 (9) (a).
A renewal of registration is valid for one year after the date of renewal.
(b)
A registrant may apply to the department for an extension of the time within which to
renew a registration
submit the updated financial statement required under par. (a)
by providing with the
renewal
application a letter from the certified public accountant who is auditing the registrant's financial statement stating the reasons for the delay and the anticipated completion date of the audit.
A renewal registration is valid for one year after the date of renewal.
461.02
(5)
Limited registration.
(a)
A
Except as provided in sub. (7) (b), a
professional employer organization or professional employer group that is domiciled outside this state, that is registered or licensed as a professional employer organization or professional employer group in another state, that does not maintain an office in this state or directly solicit clients that are located or domiciled in this state, and that has no more than 50 employees performing services for clients in this state on any given day may apply for limited registration under this section by filing with the department a limited registration form prescribed by the department and paying the initial credential fee determined by the department under s. 440.03 (9) (a). An applicant that is seeking limited registration shall, in addition to the information provided under sub. (2), provide the department with information and documentation showing that the applicant meets the qualifications specified in this paragraph for limited registration.
(b)
A
Except as provided in sub. (7) (b), a
professional employer organization or professional employer group seeking limited registration that has employees performing services for clients in this state on July 1, 2009, shall register with the department as provided in sub. (3) (a), and the initial limited registration shall be valid as provided in sub. (3) (a).
(c)
A
Except as provided in sub. (7) (b), a
professional employer organization or professional employer group seeking limited registration that does not have employees performing services for clients in this state on July 1, 2009, shall register with the department as provided in sub. (3) (b), before contracting with a client in this state, and the initial limited registration shall be valid as provided in sub. (3) (b).
(d)
A registrant
Except as provided in sub. (7) (b), a professional employer organization or professional employer group registered under this subsection
that wishes to renew its limited registration shall, in addition to complying with sub. (4), provide the department with information and documentation showing that the
registrant
professional employer organization or professional employer group
continues to meet the qualifications specified in par. (a) for limited registration, and the limited registration shall be valid as provided in sub. (4).
(e) A
limited registrant
professional employer organization or professional employer group registered under this subsection
is not required to comply with the financial capability requirement under s. 461.03.
461.02
(6)
Professional employer group registration.
Two
Except as provided in sub. (7) (b), 2
or more professional employer organizations that are part of a professional employer group may register under this section or renew a registration by providing the information required under sub. (2), (4), or (5) on a combined or consolidated basis, paying the initial credential or renewal fee determined by the department under s. 440.03 (9) (a), and guaranteeing each other's obligations. If a professional employer group provides a combined or consolidated financial statement under sub. (2) (f) that includes the financial condition of entities that are not part of the professional employer group, the person controlling the professional employer group shall guarantee the obligations of the professional employer organizations in the professional employer group.
461.02
(7)
(b) The department may by rule provide for registration of a professional employer organization or professional employer group without compliance with sub. (2), (4), (5), or (6), s. 461.03, or rules promulgated under s. 461.06 on acceptance by the department of assurance provided by a bonded, independent, and qualified assurance organization that has been approved by the department that provides assurance satisfactory to the department that the professional employer organization or professional employer group is qualified to
engage in the business of providing
operate as a
professional employer
services
organization or a professional employer group
in this state.
461.02
(8)
Issuance of registration.
On receipt of an application for registration or for renewal of a registration under subs. (3) to (7) and of the initial credential fee or renewal fee determined by the department under s. 440.03 (9) (a), the
The
department shall investigate
the applicant or registrant
each applicant or registrant who submits to the department an application for registration or registration renewal under this section, together with the applicable registration or registration renewal fee,
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.
461.04
(1)
Professional employer
services
organization and professional employer group
not insurance.
(intro.) 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:
Section
15
.
Effective date.
(1)
This act takes effect on July 1, 2009, or on the day after publication, whichever is later.
