Professional employer organizations.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0486

SENATE FILE
NO.
SF0122

Professional employer organizations.

Sponsored by:
Senator(s) Coe and Bebout

A BILL

for

AN ACT relating to
the professional employer organizations; creating a

Wyoming Professional Employer Organization Registration Act;
establishing registration requirements; specifying relationships, duties, responsibilities and rights among the parties; providing for assessment of fees as specified; providing definitions
; providing penalties;

and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 17
‑
29
‑
101 through 17
‑
29
‑
109
are created to read:

ARTICLE 29
EMPLOYER ORGANIZATIONS

1
7
‑
29
‑
101.

Short
t
itle.

This act shall be known and may be
cited
as the
"
Wyoming Professional Employer Organization Registration Act
"
.

1
7
‑
29
‑
10
2
.

Definitions.

(a)

As used in this act:

(i)

"
Client
"
means any
p
erson who enters into a
p
rofessional
e
mployer
a
greement with a
professional employer organization;

(i
i
)

"
Co-employer
"
means either a
professional employer organization
or a
c
lient
;

(i
ii
)

"
Co-employment
r
elationship
"
means a relationship which is intended to be an ongoing relationship rather than
temporary or project specific
, wherein the rights, duties and obligations of an employer which arise out of an employment relationship have been allocated between
c
o-employers pursuant to a
p
rofessional
e
mployer
a
greement and this
a
ct.

In a co-employment relationship:

(A)

The
professional employer organization
is entitled to enforce only such employer rights, and is subject to only those obligations specifically allocated to the
professional employer organization
by the
p
rofessional
e
mployer
a
greement or this
a
ct;

(B)

The
c
lient is entitled to enforce those rights, and
is
obligated to provide and perform those employer obligations
,
allocated to
the

c
lient by the
p
rofessional
e
mployer
a
greement and this
a
ct; and

(C)

The
c
lient is entitled to enforce any right
,
and
is
obligated to perform any obligation of an employer
,
not specifically allocated to the
professional employer organization
by the
p
rofessional
e
mployer
a
greement or this
a
ct.

(
i
v)

"
Covered
e
mployee
"
means an individual having a
c
o-employment
r
elationship with a
professional employer organization
and a
c
lient
,
who has received written notice of co-employment with the
professional employer organization
and
t
he individual's
c
o-employment
r
elationship is pursuant to a
p
rofessional
e
mployer
a
greement subject to this
a
ct
.

Individuals who are officers, directors, shareholders, partners and managers of the
c
lient will be
c
overed
e
mployees, except to the extent the
professional employer organization
and the
c
lient have expressly agreed in the
p
rofessional
e
mployer
a
greement that
the
individuals would not be
c
overed
e
mployees, provided
the
individuals meet the criteria of this paragraph and
this
act as operational managers or perform day-to-day operational services for the
c
lient
;

(v)

"
Person
"
means
as defined in W.S. 8
‑
1
‑
102(a)(vi);

(vi)

"
Professional
e
mployer
a
greemen
t
"
means a written contract by and between a
c
lient and a
professional employer organization
that provides:

(A)

F
or the
c
o-employment of
covered e
mployees;

(B)

F
or the allocation of employer rights and obligations between the
c
lient and the
professional employer organization
with respect to the
c
overed
e
mployees; and

(C)

T
hat the
professional employer organization
and the
c
lient assume the responsibilities required by this
a
ct.

(vii)

"
Professional
e
mployer
o
rganization
"
means any
p
erson engaged in the business of providing
professional e
mployer
s
ervices.

A
p
erson engaged in the business of providing
p
rofessional
e
mployer
s
ervices shall be subject to registration and regulation under this
a
ct regardless of its use of the term or conducting business as a
"
professional employer organization,
"

"
PEO,
"

"
staff leasing company,
"

"
r
egistered staff leasing company,
"

"
employee leasing company,
"

"
service provider
,
"

"
administrative employer
"
or any other name.

The following shall not be deemed to be
p
rofessional
e
mployer
o
rganizations or the providing of
p
rofessional
e
mployment
s
ervices for purposes of this
a
ct
:

(A)

A
rrangements wherein a
p
erson
,
whose principal business activity is not entering into
p
rofessional
e
mployer
agree
ments and which does not hold itself out as a
professional employer organization
, shares employees with a commonly owned company within the meaning of section 414(b) and (c) of the Internal Revenue Code of 1986, as amended;

(B)

I
ndependent contractor arrangements by which a
p
erson assumes responsibility for the product produced or service performed by
himself
or his agents and retains and exercises primary direction and control over the work performed by the individuals whose services are supplied under such arrangements
;
or

(C)

P
roviding
t
emporary
h
elp
s
ervices.

(
viii
)

"
P
rofessional employer organization

g
roup
"
means two
(2)
or more
professional employer organization
s
that are majority owned or commonly controlled by the same entity, parent or controlling person
;

(
i
x)

"
Professional
e
mployer
s
ervices
"
mean
s
the service of entering into
c
o-employment
r
elationships under this
a
ct in which all or a majority of the employees providing services to a
c
lient or to a division or work unit of
a

c
lient are
c
overed
e
mployees
;

(x)

"
Registrant
"
means a
professional employer organization
registered under this
a
ct
;

(xi)

"
Temporary
h
elp
s
ervices
"
means services consisting of a
p
erson:

(A)

R
ecruiting and hiring
hi
s own employees
;

(B)

F
inding other organizations that need the services of those employees
;

(C)

A
ssigning those employees to perform work at
,
or services for
,
the other organizations to support or supplement the other organizations' workforces, or to provide assistance in special work situations such as, but not limited to, employee absences, skill shortages, seasonal workloads or to perform special assignments or projects
;
and

(D)

C
ustomarily attempting to reassign the employees to other organizations when they finish each assignment.

(
xi
i
)

"
Working
c
apital
"
means current assets less current liabilities as defined by generally accepted accounting principles
;

(x
iii
)

"
This act
"
means W.S. 17
‑
29
‑
101 through 17-29-1
09
.

1
7
‑
29
‑
10
3
.

Rights, duties and obligations unaffected by this act.

(a)

Nothing contained in this a
ct or in any
p
rofessional
e
mployer
a
greement shall
:

(i)

A
ffect, modify or amend any collective bargaining agreement, or the rights or obligations of any
c
lient,
professional employer organization
or
c
overed
e
mployee under the federal National Labor Relations Act, the federal Railway Labor Act or
W.S. 27
‑
7
‑
101 through 27
‑
7
‑
115
;

(i
i
)

Diminish, abolish or remove rights of
c
overed
e
mployees to a
c
lient or obligations of such
c
lient to a
c
overed
e
mployee existing prior to the effective date of the
p
rofessional
e
mployer
a
greement
;

(ii
i
)

Affect, modify or amend any contractual relationship or restrictive covenant between a
c
overed
e
mployee and any
c
lient in effect at the time a
p
rofessional
e
mployer
a
greement becomes effective
,

n
o
r
shall it prohibit or amend any contractual relationship or restrictive covenant that is entered into subsequently between a
c
lient and a
c
overed
e
mployee.

A
professional employer organization
shall have no responsibility or liability in connection with, or arising out of, any such existing or new contractual relationship or restrictive covenant unless the
professional employer organization
has specifically agreed otherwise in writing
;

(i
v
)

Create any new or additional enforceable right of a
c
overed
e
mployee against a
professional employer organization
that is not specifically provided by the
p
rofessional
e
mployer
a
greement or this
a
ct
;

(v)

A
ffect, modify or amend any state, local or federal licensing, registration or certification requirement applicable to any
c
lient or
c
overed
e
mployee.

A
c
overed
e
mployee who
is required to
be licensed, registered or certified according to law or regulation is deemed solely an employee of the
c
lient for purposes of
the
license, registration or certification requirement.

A
professional employer organization
shall not be deemed to engage in any occupa
tion, trade, profession
or other activity that is subject to licensing, registration or certification requirements, or is otherwise regulated by a governmental entity solely by entering into and maintaining

a
c
o-employment
r
elationship with a
c
overed
e
mployee who is subject to such requirements or regulation.
A

c
lient shall have the sole right of direction and control of the professional or licensed activities of
c
overed
e
mployees and of the
c
lient's business.

Such
c
overed
e
mployees and
c
lients shall remain subject to regulation by the regulatory or governmental entity responsible for licensing, registration or certification of
the

c
overed
e
mployees or
c
lients.

(
b
)

For purposes of determination of tax credits and other economic incentives based on employment provided by this
s
tate,
a

political subdivision
or other government entity,
c
overed
e
mployees shall be deemed employees solely of the
c
lient.

A
c
lient shall be entitled to the benefit of any tax credit, economic incentive or other benefit arising as the result of the employment of
c
overed
e
mployees of
the

c
lient. Notwithstanding that the
professional employer organization
is the reporting employer
for purposes of the covered employee's
Internal Revenue Service
f
orm W-2
w
age and
t
ax
s
tatement
, the
c
lient shall continue to

qualify for such benefit, incentive or credit.

If the grant or amount of any such incentive is based on
the
number of employees, then each
c
lient shall be treated as employing only those
c
overed
e
mployees co-employed by the
c
lient.

Covered
e
mployees working for other clients of the
professional employer organization
shall not be counted.

Each
professional employer organization

sha
ll provide, upon request by a
c
lient or an agency, local
political subdivision
, or department of this
s
tate, employment information reasonably required by
the
agency
, political subdivision
or department of this
s
tate responsible for administration of any such tax credit or economic incentive
which may be
necessary to support any request, claim, application or other action by a
c
lient seeking
the
tax credit or economic incentive.

(
c
)

With respect to a bid, contract, purchase order or agreem
ent entered into with the state
or a political subdivision of the state, a
c
lient company's status or certification as a small, minority

owned,
disadvantaged
or woman

owned business enterprise or as a historically underutilized business is not affected because the
c
lient company has entered into an agreement with a
professional employer organization
or uses the services of a
professional employer organization
.

1
7
‑
29
‑
10
4
.

Registration
r
equirements.

(
a
)

Except as otherwise provided in this
a
ct, no
person shall provide, advertise
or otherwise hold itself out as providing
p
rofessional
e
mployer
s
ervices in this
s
tate, unless
the

p
erson is registered under this
a
ct.

(b)

Each applicant for registration under this
a
ct, shall provide the
secretary of state
with the following information:

(i)

The name or names under which the
professional employer organization
conducts business;

(ii)

The address of the principal place of business of the
professional employer organization
and the address of each office it maintains in this
s
tate;

(iii)

The
professional employer organization's
taxpayer or employer identification number;

(iv)

A list by jurisdiction of each name under which the
professional employer organization
has operated in the preceding
five (
5
)
years, including any alternative names, names of predecessors and, if known, successor business entities;

(v)

A statement of ownership, which shall include the name and evidence of the business experience of any
p
erson that, individually or acting in concert with one
(1)
or more other
p
ersons, owns or controls, directly or indirectly, twenty-five percent
(25%)
or more of the equity interests of the
professional employer organization
;

(vi)

A statement of management, which shall include the name and evidence of the business experience of any
p
erson who serves as president, chief executive officer or otherwise has the authority to act as senior executive officer of the
professional employer organization
; and

(vii)

A financial statement setting forth the financial condition of the
professional employer organization
or
professional employer organization

g
roup.

At the time of application for a new license, the applicant shall submit the most recent audit of the applicant, which
shall
not be older than
thirteen (
13
)
months.

Thereafter, a
professional employer organization
or
professional employer organization
group shall file on an annual basis, within
one hundred eighty (
180
)
days after

the end of the
professional employer organization
's
or
professional employer organization
group's fiscal year, a succeeding audit.

An applicant may apply for an extension with the
secretary of state
,
but
the
request
shall be
accompanied by a letter from the
professional employer organization
's
auditors 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
the
accountant is located, and shall be without qualification as to the going concern status of the
professional employer organization
.

A
professional employer organization

g
roup may submit combined or consolidated audited financial statements to meet the requirements of this
sub
section.

A
professional employer organization
that has not had sufficient operating history to have audited financials based upon at least twelve (12) months of operating history
shall meet
the financial capacity requirements
under
W.S. 17
‑
29
‑
106
and present financial statements reviewed by a certified public accountant.

(c)

Each
professional employer organization
operating within this
s
tate as of
July 1, 2009
shall complete its initial registration not later than
one hundred eighty (
180
)
days after
July 1, 2009
.

The
initial registration shall be valid until
one hundred eighty

(
180
) days from the end of the
professional employer organization
's
first fiscal year end that is more than one
(1)
year after
July 1, 2009
.

Each
professional employer organization
not operating within this
s
tate as of
July 1, 2009
shall complete its initial registration prior to commencement of operations within this
s
tate.

(d)

Within
one hundred eighty

(
180
)
days after the end of a
r
egistrant's fiscal year,
the

r
egistrant shall renew its registration by notifying the
secretary of state
of any changes in the information provided in
the

r
egistrant's most recent registration or renewal.

A
r
egistrant's existing registration shall remain in effect during the pendency of a renewal application.

(e)

Professional employer organization
s
in a
professional employer organization

g
roup may satisfy the reporting and financial requirements of this
section
on a combined or consolidated basis provided that each member of the
professional employer organization

g
roup guarantees the financial capacity obligations under this
a
ct of each other member of the
professional employer organization

g
roup.

In the case of a
professional employer organization

g
roup that submits a combined or consolidated audited financial statement including entities that are not
professional employer organization
s
or that are not in the
professional employer organization

g
roup, the controlling entity of the
professional employer organization

g
roup under the consolidated or combined statement
shall
guara
ntee the obligations of the
professional employer organization
s
in the
professional employer organization

g
roup.

(f)

A
professional employer organization
is eligible for a limited registration under this
a
ct if
the
professional employer organization
:

(i)

Submits a properly executed request for limited registration on a form provided by the
secretary of state
;

(ii)

Is domiciled outside this
state and is licensed
or registered as a
p
rofessional
e
mployer
o
rganization in another state;

(iii)

Does not maintain an office in this
s
tate or directly solicit
c
lients located or domiciled within this
s
tate; and

(iv)

Does not have more than
fifty (
50
)

c
overed
e
mployees employed or domiciled in this
s
tate on any given day.

(g)

A limited registration under subsection (f) of this section is valid for one (1) year and may be renewed.
A
professional employer organization
see
ki
ng limited registration under
subsection (f) of
this
s
ection shall provide the
secretary of state
with information and documentation necessary to
establish
that the
professional employer organization
qualifies for a limited registration.
W.S.
17
‑
29
‑
106
shall not apply to applicants
fo
r limited registration.

(h)

The
secretary of state
may prescribe forms necessary to promote the efficient administration of this section.

The
secretary of state
shall permit by rule
and regulation
the acceptance of electronic filings
in conformity with the provisions of the Uniform Electronic Transacti
ons Act in title 40, chapter 21
, including applications, documents, reports and other filings required by this
a
ct.
The
rule may provide for the acceptance of electronic filings and other assurance
s
by an independent and qualified assurance organization approved by the
secretary of state
that provides satisfactory assurance of compliance acceptable to the
secretary of state
consistent with or in lieu of the requirements of
W.S.
17
‑
29
‑
104, 17
‑
2
9
‑
106

and other requirements of this
a
ct or the rules promulgated pursuant to
the act
.
The
rule shall permit a
professional employer organization
to authorize an assurance organization approved by the
secretary of state
to act on the
professional employer organization
's
behalf in complying with the registration requirements of this
a
ct, including electronic filings of information and payment of registration fees.

Use of an approved assurance organization shall be optional and not mandatory for a
r
egistrant.

Nothing in this subsection shall limit or change the
secretary of state's
authority to register or terminate registration of a professional employer organization or to investigate or enforce any provision of this
a
ct.

The
secretary of state
shall maintain a list of
p
rofessional
e
mployer
o
rganizations registered under this
a
ct that is readily available to the public by electronic or other means.

(j)

All records, reports and other information obtained from a
professional employer organization
under this
a
ct, except to the extent necessary for the proper administration of this
a
ct by the
secretary of state
, shall be confidential and shall not be published or open to public inspection other than to public employees in the performance of their public duties.

1
7
‑
29
‑
10
5
.

Fees.

(a)

Upon filing an initial registration statement under this
a
ct, a
professional employer organization
shall pay an initial registration fee not to exceed
five hundred dollars (
$500.
00).
Upon each annual renewal of a registration statement filed under this
a
ct, a
professional employer organization
shall pay a renewal fee not to exceed
two hundred fifty dollars (
$250.
00).

(b)

The
secretary of state
shall determine by rule
and regulation
any fee to be charged for a
g
roup
r
egistration.

(c)

Each
professional employer organization
seeking limited registration under this section shall pay a fee in the amount not to exceed
two hundred fifty dollars (
$250
.00)
upon initial application for limited registration and upon each annual renewal of
the
limited registration.

(d)

A
professional employer organization
seeking
registration

pursuant to
W.S. 17
‑
29
‑
104(h)
shall pay an initial and annual fee not to exceed
two hundred fifty dollars (
$250.
00)
.

(e)

No fee charged pursuant to this
section
shall exceed the amount reasonably necessary for the administration of this
a
ct.

1
7
‑
29
‑
10
6
.

Financial capability.

(a)

Except
as provided for limited registrations under W.S. 17
‑
29
‑
104(g) and electronic filings under W.S. 17
‑
29
‑
104(h)
, each
professional employer organization
or collectively each
professional employer organization

g
roup shall maintain positive working capital at registration as reflected in the financial statements submitted to the agency with the initial registration and each annual renewal. A
professional employer organization
or
professional employer organization
group with negative working capital shall provide a bond, irrevocable letter of credit or securities with a minimum market value equal to or greater than the sum of
:

(i)

A
n amount sufficient to eliminate
the
negative working capital balance
;

and

(ii)

One hundred thousand dollars (
$100,000
.00).

1
7
‑
29
‑
10
7
.

General
r
equirements and
p
rovisions.

(a)

Except as specifically provided in this
a
ct

or in the
p
rofessional
employer a
greement, in each
c
o-employment
r
elationship:

(i)

The
c
lient shall be entitled to exercise all rights, and shall be obligated to perform all duties and responsibilities, otherwise applicable to an employer in an employment relationship;

(ii)

The
professional employer organization
shall be entitled to exercise only those rights, and obligated to perform only those duties and responsibilities, specifically required by this
a
ct or set forth in the
p
rofessional
e
mployer
a
greement.

The rights, duties and obligations of the
professional employer organization
as
c
o-employer with respect to any
c
overed
e
mployee shall be limited to those arising pursuant to the
p
rofessional
e
mploy
er a
greement and this
a
ct during the term of co-employment
of
the

c
overed
e
mployee
by the
professional employer organization
;

(iii)

Unless otherwise expressly agreed by the
professional employer organization
and the
c
lient in a
p
rofessional
e
mployer
a
greement, the
c
lient retains the exclusive right to
:

(A)

D
irect and control the
c
overed
e
mployees as is necessary to conduct the
c
lient's business
;

(B)

D
ischarge any of
the
c
lient's fiduciary responsibilities
;
or

(C)

C
omply with any licensure requirements applicable to
the

c
lient or to the
c
overed
e
mployees.

(b)

Except as specifically provided in this
a
ct, the
c
o-employment
r
elationship between the
c
lient and the
professional employer organization
, and between each
c
o-employer and each
c
overed

e
mployee, shall be governed by the
p
rofessional
e
mployer
a
greement.

Each
p
rofessional
e
mployer
a
greement shall include the following:

(i)

The allocation of rights, du
ti
es and obligations as described in
subsection (a) of this section;

(ii)

That the
professional employer organization
shall have responsibility to
:

(A)

P
ay wages to
c
overed
e
mployees;

(B)

W
ithhold, collect, report and remit payroll

related and unemployment taxes; and

(C)

T
o the extent the
professional employer organization
has assumed responsibility in the
p
rofessional
e
mployer
a
greement, make paym
ents for employee benefits for c
overed
e
mployees.

As used

in this section, the term
"
wages
"
does not include any obligation between a
c
lient and a
c
overed
e
mployee for payments beyond or in addition to the
c
overed
e
mployee's salary, draw or regular rate of pay, such as bonuses, commissions, severance pay, defe
r
red compensation, profit sharing or vacati
on, sick or other paid time off
, unless the
professional employer organization
has expressly agreed to assume liability for such payments in the
p
rofessional
e
mployer
agreement.

(iii)

That the
professional employer organization
shall h
ave a right to hire, discipline
and terminate a
c
overed
e
mployee as may be necessary to fulfill the
professional employer organization
's
responsibilities under this
a
ct and the
p
rofessional
e
mployer
a
greement.

The
c
lient shall have a right to hire, discipline and terminate a
c
overed
e
mployee.

(c)

With respect to each
p
rofessional
e
mployer
a
greement entered into by a
professional employer organization
,
the

professional employer organization
shall provide written notice to each
c
overed
e
mployee affected by
the
agreement of the general nature of the
c
o
-
employment
r
elationship between and among the
professional employer organization
, the
c
lient and
the

c
overed
e
mployee.

(d)

Except to the extent otherwise expressly provided by the applicable
p
rofessional
e
mployer
a
greement:

(i)

A
c
lient shall be solely responsible for the quality, adequacy or safety of the goods or services produced or sold in
c
lient's business
;

(ii)

A
c
lient shall be solely responsible for directing, supervising, training and controlling the work of the
c
overed
e
mployees with respect to the business activities of the
c
lient and solely responsible for the acts, errors or omissions of the
c
overed
e
mployees with regard to such activities
;

(iii)

A
c
lient shall not be liable for the acts, errors or omissions of a
professional employer organization
, or of any
c
overed
e
mployee of the
c
lient and a
professional employer organization
when such
c
overed
e
mployee is acting under the express direction and control of the
professional employer organization
;

(iv)

A
professional employer organization
shall not be liable for the acts, errors or omissions of a
c
lient or of any
c
overed
e
mployee of the
c
lient when
the

c
overed
e
mployee is acting under the express direction and control of the
c
lient
;

(v)

Nothing in this subsection shall serve to limit any contractual liability or obligation specifically provided in the written
p
rofessional
e
mployer
a
greement
;

(vi)

A
c
overed
e
mployee is not, solely as the result of being a
c
overed
e
mployee

of a
professional employer organization
, an
employee

of the
professional employer organization
for purposes of general liability insurance, fidelity

bonds, surety bonds, employees liability which is not covered by workers' compensation or liquor liability insurance carried by the
professional employer organization
unless the
c
overed
e
mployees are included by specific reference in the
p
rofessional
e
mployer
a
greement and applicable prearranged employment contract, insurance contract or bond
.

(e)

A
professional employer organization
under this
a
ct is not engaged in the sale of insurance, business of insurance or in acting as a third party
administrator
by offering, marketing, selling, administering or providing professional employer services which include services and employee benefit plans for
c
overed
e
mployees.

(f)

For purposes of
a s
tate or
political subdivision
thereof:

(i)

Covered
e
mployees whose services are subject to sales tax shall be deemed the employees of the
c
lient for purposes of collecting and levying sales tax on the services performed by the
c
overed
e
mployee.

Nothing contained in this
a
ct shall relieve a
c
lient of any sales tax liability with respect to its goods or services
;

(ii)

Any tax or assessment imposed upon
p
rofessional
e
mployer
s
ervices or any business license or other fee which is based upon gross receipts shall allow a deduction from the gross income or receipts of the business derived from performing professional employer services that is equal to that portion of the fee charged to a
c
lient that represents the actual cost of wages and salaries, benefits, payroll taxes, withholding or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement
;

(iii)

Any tax assessed or assessment or mandated expenditure on a per capita or per employee basis shall be assessed against the
c
lient for
c
overed
e
mployees and against the
p
rofessional
e
mployer
o
rganization for its employees who are not
c
overed
e
mployees co-employed with a client
.
Benefits or monetary consideration that meet the requirements of mandates imposed on a
c
lient and that are received by
c
overed
e
mployees through the
professional employer organization
either through payroll or through benefit plans sponsored by the
professional employer organization
shall be credited against the
c
lient's obligation to fulfill such mandates
;

(iv)

In the case of a tax or an assessment imposed or calculated upon the basis of total payroll, the
p
rofessional
o
rganization shall be eligible to apply any small business allowance or exemption available to the
c
lient for the
c
overed
e
mployees for purpose of computing the tax.

1
7
‑
29
‑
10
8
.

Benefit
p
lans.

(a)

A
c
lient and a registered
professional employer organization
shall each be deemed an employer under the laws of this
s
tate for purposes of sponsoring retirement and welfare benefit plans for its
c
overed
e
mployees.

(b)

A fully

insured
welfare benefit plan offered to
the
c
overed
e
mployees of a single
professional employer organization
shall

be treated for purposes of state law as a single employer welfare benefit plan and shall not be treated as a multiple employer welfare arrange
m
ent.

(c)

For purposes of the
Small Employer Health Insurance Availability Act, W.S. 26
‑
19
‑
301 et seq.
:

(i)

A

professional employer organization
shall be conside
red the employer of all its c
overed
e
mployees
;
and

(ii)

A
ll
c
overed
e
mployees of one
(1)
or more
c
lients participating in a health benefit plan sponsored by a single
professional employer organization
shall be considered employees of that
professional employer organization
.

(d)

If a
professional employer organization
offers to its
c
overed
e
mployees any health benefit plan which is not fully

insured by an authorized insurer, the plan shall:

(i)

Utilize a third

party
administrator
licensed to do business in this
s
tate;

(ii)

Hold all plan assets, including participant contributions, in a trust account consistent with the requirements of
s
ection 403 of the Employee Retirem
ent Income Security Act of 1974
;

(iii)

Provide sound reserves for
the
plan as determined using generally accepted actuarial standards of practice and consistent with the prudence and loyalty standards of care for fiduciaries
under
the Employee Retirem
ent Income Security Act of 1974
; and

(iv)

Provide written notice to each
c
overed
e
mployee participating in the benefit plan that the plan is self

funded or is not fully

insured.

1
7
‑
29
‑
10
9
.

Enforcement.

(a)

A person may not knowingly:

(i)

O
ffer or provide
p
rofessional
e
mployer
s
ervices or use the names
"
PEO,
"

"
p
rofessional
e
mployer
o
rganization,
"

"
staff leasing,
"

"
employee leasing,
"

"
administrative employer
"
or other title representing
p
rofessional
e
mployer
s
ervices without first becoming registered under this
a
ct
;

(ii)

P
rovide false or fraudulent information to the
secretary of state
in conjunction with any registration, renewal or in any report required under this
a
ct.

(b)

Subject to
the contested case provisions of the Wyoming Administrative Procedure Act,

disciplinary action may be taken
by the
secretary of state
for violation of
subsection (a) of this act
or for
:

(i)

T
he conviction of a professional employer organization or a controlling person of a
professional employer organization
of a crime that relates to the operation of a
professional employer organization
or the ability of the licensee or a controlling person of a licensee to operate a
professional employer organization
;

(ii)

K
nowingly making a material misrepresentation to the
secretary of state
, or other governmental agency; or

(iii)

A
willful violation
of
this
a
ct or any order or regulation issued by the
secretary of state
under this
a
ct.

(c)

Upon finding, after notice and opportunity for hearing, that a
professional employer organization
, or a controlling person of a
professional employer organization
, or a person offering
professional employer organization
services has violated one
(1)
or more provisions
specified in
this section and subject to any appeal
authoriz
ed by
the Wyoming Administrative Procedure Act
, the
secretary of state
may:

(i)

D
eny an application for a license;

(ii)

R
evoke, restrict or refuse to renew a license;

(iii)

I
mpose an administrative penalty in an amount not to exceed one thousand dollars
($1,000.00)
for each material violation;

(iv)

Limit activities that
the licensee
may perform under this act
for the period and subject to conditions that the
secretary of state
specifies; or

(v)

I
ssue a cease and desist
order
.

Section
2.

This act is effective July 1, 2009.

(END)

1
SF0122