Sec. 31-221c. Registration as professional employer organization: Requirements. Application. Disclosures. Fees.
Sec. 31-221c. Registration as professional employer organization: Requirements. Application. Disclosures. Fees. (a) Subject to the provisions of subsection (e)
of this section, no person shall provide, advertise or otherwise hold itself out as providing
professional employer services in this state unless such person is registered as a professional employer organization. Any person seeking initial registration as a professional
employer organization shall apply to the Labor Commissioner on a form prescribed by
the commissioner. Such application shall include:
(1) The name or names under which the applicant will conduct business and, if
applicable, under which the applicant conducted business prior to the date of application;
(2) The address of the principal place of business of the applicant and the address
of each office it maintains or will maintain in this state;
(3) The applicant's federal and state taxpayer and employer identification number;
(4) A list by jurisdiction of any name under which the applicant operated in the
five years preceding the date of application, including any alternative names, names of
predecessors, the name of the immediate successor business entity and, if known, any
other 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 or more other
persons, owns or controls or will control, directly or indirectly, twenty-five per cent or
more of the equity interest of the applicant;
(6) A statement of management that includes the name and evidence of the business
experience of any person who serves or will serve as president, chief executive officer
or otherwise has or will have the authority to act as senior executive officer of the
applicant; and
(7) A financial statement setting forth the financial condition of the applicant in
accordance with this subdivision.
(A) Except as provided in subparagraph (B) of this subdivision, a professional employer organization or professional employer organization group that conducted business prior to January 1, 2009, shall submit the most recent audit of the professional
employer organization or professional employer organization group that was conducted
no earlier than thirteen months prior to the date of application.
(B) If an applicant has not had sufficient operating history to have audited financial
statements based on at least twelve months of operating history, the applicant shall
submit a financial statement that sets forth the financial condition of the professional
employer organization and is prepared pursuant to generally accepted accounting principles by an independent certified public accountant licensed to do business in the state
who attests that (i) it is the applicant's most recent financial statement, (ii) he reviewed
the financial statement within six months of the registration, (iii) the applicant is not
delinquent in the payment of state or federal taxes, and (iv) the applicant meets the
financial capacity requirements of section 31-221d.
(C) All information obtained from a professional employer organization or professional employer organization group under this subdivision shall be subject to disclosure
in accordance with the provisions of chapter 14.
(b) (1) Each professional employer organization operating within this state on January 1, 2009, shall submit its initial registration not later than March 1, 2009. Such initial
registration shall be valid until one hundred eighty days after the professional employer
organization's first completed fiscal year that is more than one year after March 1, 2009.
Each professional employer organization or professional employer organization group
shall file with the commissioner the beginning and ending date of each professional
employer organization or professional employer organization group's fiscal year and
notify and file with the commissioner any change to the beginning and ending date of
such fiscal year.
(2) Each professional employer organization not operating within this state as of
January 1, 2009, shall complete its initial registration prior to commencement of operations within this state.
(c) A registered professional employer organization may apply for renewal of its
registration annually by submitting to the commissioner, not later than one hundred
eighty days after the end of the professional employer organization's or professional
employer organization group's fiscal year, (1) an audit for the preceding fiscal year, and
(2) notice of any changes in the information provided in such registrant's immediately
preceding application for initial registration or renewal. An applicant may apply for an
extension with the department, but any such request shall be accompanied by a letter
from the auditor stating the reasons for the delay and the anticipated audit completion
date. The financial statement shall be prepared in accordance with generally accepted
accounting principles and audited by an independent certified public accountant licensed
to practice in the jurisdiction in which such accountant is located, and shall be without
qualification as to any increase in going concern status of the professional employer
organization.
(d) Professional employer organizations in a professional employer organization
group may satisfy the reporting and financial requirements of this section and section
31-221d on a combined or consolidated basis provided each member of the professional
employer organization group guarantees the obligations under sections 31-221b to 31-221f, inclusive, of each other member of the professional employer organization group.
In the case of a professional employer organization group that submits a combined or
consolidated audited financial statement, including entities that are not professional
employer organizations or that are not in the professional employer organization group,
the controlling entity of the professional employer organization group under the consolidated or combined statement shall guarantee the obligations of the professional employer organization in the professional employer organization group. Each professional
employer organization or professional employer organization group shall notify the
commissioner of the name and address of such controlling entity.
(e) (1) The commissioner may issue a professional employer organization a limited
registration if such professional employer organization provides evidence, on a form
prescribed by the commissioner, that it:
(A) Is domiciled outside this state and is licensed or registered as a professional
employer organization in another state;
(B) Does not maintain an office in this state or directly solicit clients located or
domiciled within this state; and
(C) Does not have more than fifty covered employees employed or domiciled in
this state at any particular time;
(2) A limited registration shall be valid for one year and shall be renewed annually
at the completion of the registrant's fiscal year. Each professional employer organization
or professional employer organization group shall pay a limited registration fee, established by the commissioner when the registration is filed or renewed, not to exceed one
thousand dollars and a renewal fee shall not exceed one thousand dollars;
(3) If a professional employer organization or professional employer organization
group seeks to file a limited registration with the commissioner, the professional employer organization or professional organization group shall provide the commissioner
with sufficient information and documentation that the professional employer organization or professional employer organization group qualifies for a limited registration.
(f) The department shall maintain a list of professional employer organizations registered under this section.
(g) The commissioner shall charge a fee on application or renewal for registration
as a professional employer organization, provided an initial registration fee shall not
exceed one thousand five hundred dollars and a renewal fee shall not exceed one thousand dollars.
(h) The registrant shall notify the commissioner of the address of the principal place
of business of the registrant and the address of each office it maintains or proposes to
maintain in this state.
(i) The applicant or registrant shall notify the commissioner of any change of address
for any location, as described in subsection (h) of this section no later than five working
days after such change.
(P.A. 08-105, S. 3.)
History: P.A. 08-105 effective January 1, 2009.