House of Representatives

SB 1222

professional employer organizations; registration

Sponsor: Senator Leff

DP	Committee on Commerce
X	Caucus and COW
	As Engrossed and As Passed the House

Specifies registration requirements and changes the time allotted for renewed registration. 

History

A professional employer organization (PEO) is a company that contractually manages human resource and personnel responsibilities, as well as employer risks for its small to mid-sized businesses by establishing and maintaining an employer relationship with worksite employees.  A PEO assists in managing employee-related matters, such as personnel management, health benefits, payroll, payroll tax compliance and unemployment insurance claims.  Every PEO that provides employer services in Arizona must register with the Secretary of State (SOS) and provide pertinent information outlined in Title 23, Section 563, Arizona Revised Statutes.  Further, statute directs the SOS to maintain a list of all registrants. 

PEOs currently operate in all 50 states, with 24 states having various comprehensive registration and licensing provisions that are applicable to the industry.  Additionally, some states reference the PEO or employee leasing industry but are not specifically regulated through a registration or licensing agency. 

Provisions

· Specifies that the registration statement of management must include whether a person has been convicted, in the preceding 10 years, of a felony relative to the PEO industry. 

• Includes crimes involving accounting or tax violations, dishonesty, fraud, misrepresentation, embezzlement, theft, forgery or perjury. 
• Directs the SOS to deny the application of any management-level person convicted of a felony as outlined. 

· Lengthens the allocated time for a registrant to file a renewal to 180 days.

---------- DOCUMENT FOOTER ---------

Forty-seventh Legislature

Second Regular Session          2          March 1, 2006

---------- DOCUMENT FOOTER ---------