Effective - 28 Aug 2018
285.715. Registration required — application, contents — initial registration, renewal — reporting requirements, satisfied how — limited registration, when — list of organizations — electronic filing — confidentiality of records. — 1. Except as otherwise provided in sections 285.700 to 285.750, no person shall provide, advertise, or otherwise hold itself out as providing professional employer services in this state, unless such person is registered under sections 285.700 to 285.750.
2. Each applicant for registration under sections 285.700 to 285.750 shall provide the secretary of state with the following information:
(1) The name or names under which the PEO conducts business;
(2) The address of the principal place of business of the PEO and the address of each office it maintains in this state;
(3) The PEO's taxpayer or employer identification number;
(4) A list by jurisdiction of each name under which the PEO has operated in the preceding five years, including any alternative names, names of predecessors, and, if known, successor business entities;
(5) A statement of ownership, which shall include 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, directly or indirectly, twenty-five percent or more of the equity interests of the PEO;
(6) A statement of management, which shall include the name and evidence of the business experience of any person who serves as president, chief executive officer, or otherwise has the authority to act as senior executive officer of the PEO; and
(7) A financial statement setting forth the financial condition of the PEO or PEO group. 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 months. Thereafter, a PEO or PEO group shall file on an annual basis, within one hundred eighty days after the end of the PEO's or PEO group's fiscal year, a succeeding audit. An applicant may apply for an extension with the secretary of state, but any such request shall be accompanied by a letter from the 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 such accountant is located and shall be without qualification as to the going concern status of the PEO. A PEO or PEO group may submit combined or consolidated audited financial statements to meet the requirements of this section. A PEO that has not had sufficient operating history to have audited financials based upon at least twelve months of operating history shall meet the financial capacity requirements of sections 285.700 to 285.750 and present financial statements reviewed by a certified public accountant.
3. (1) Each PEO operating within this state as of August 28, 2018, shall complete its initial registration not later than one hundred eighty days after August 28, 2018. Such initial registration shall be valid until one hundred eighty days from the end of the PEO's first fiscal year that is more than one year after August 28, 2018.
(2) Each PEO not operating within this state as of August 28, 2018, shall complete its initial registration prior to initiating operations within this state. In the event a PEO not registered in this state becomes aware that an existing client not based in this state has employees and operations in this state, the PEO shall either decline to provide PEO services for those employees or notify the secretary of state within five business days of its knowledge of this fact and file a limited registration application under subsection 6 of this section or a full business registration if there are more than fifty covered employees. The secretary of state may issue an interim operating permit for the period the registration applications are pending if the PEO is currently registered or licensed by another state and the secretary of state determines it to be in the best interest of the potential covered employees.
4. Within one hundred eighty days after the end of a registrant's fiscal year, such registrant shall renew its registration by notifying the secretary of state of any changes in the information provided in such registrant's most recent registration or renewal. A registrant's existing registration shall remain in effect during the pendency of a renewal application.
5. PEOs in a PEO group may satisfy the reporting and financial requirements of sections 285.700 to 285.750 on a combined or consolidated basis, provided that each member of the PEO group guarantees the financial capacity obligations under sections 285.700 to 285.750 of each other member of the PEO group. In the case of a PEO or PEO group that submits a combined or consolidated audited financial statement including entities that are not PEOs or that are not in the PEO group, the controlling entity of the PEO group under the consolidated or combined statement shall guarantee the obligations of the PEOs in the PEO group.
6. (1) A PEO is eligible for a limited registration under sections 285.700 to 285.750 if such PEO:
(a) Submits a properly executed request for limited registration on a form provided by the secretary of state;
(b) Is domiciled outside this state and is licensed or registered as a professional employer organization in another state;
(c) Does not maintain an office in this state or directly solicit clients located or domiciled within this state; and
(d) Does not have more than fifty covered employees employed or domiciled in this state on any given day.
(2) A limited registration is valid for one year, and may be renewed.
(3) A PEO seeking limited registration under this section shall provide the secretary of state with information and documentation necessary to show that the PEO qualifies for a limited registration.
(4) The provisions of section 285.725 shall not apply to applicants for limited registration.
7. The secretary of state shall maintain a list of professional employer organizations registered under sections 285.700 to 285.750 that is readily available to the public by electronic or other means.
8. The secretary of state may produce forms necessary to promote the efficient administration of this section.
9. The secretary of state shall, to the extent practical, permit the acceptance of electronic filings in conformance with sections 432.200 to 432.295, including applications, documents, reports, and other filings required by sections 285.700 to 285.750. The secretary of state may provide for the acceptance of electronic filings and other assurance 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 sections 285.715 and 285.725 and other requirements of sections 285.700 to 285.750. The secretary of state shall permit a PEO to authorize such an approved assurance organization to act on the PEO's behalf in complying with the registration requirements of sections 285.700 to 285.750, including electronic filings of information and payment of registration fees. Use of such an approved assurance organization shall be optional and not mandatory for a registrant. 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 sections 285.700 to 285.750.
10. All records, reports, and other information obtained from a PEO under sections 285.700 to 285.750, except to the extent necessary for the proper administration of sections 285.700 to 285.750 by the secretary of state, shall be confidential and shall not be considered a "public record" as that term is defined in section 610.010.
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(L. 2018 H.B. 1719)