Amendment #1 to H4563

PEO Group

Mr. Jones of North Reading moves to amend the bill by striking section 196, subsection k, in its entirety and replacing it with the following:-

(k) The department shall determine by rule any fee to be charged for initial registration, renewal or group registration.  The department may recover through such fees its reasonable costs in administering the provisions of sections 193 through 204.

And further by striking section 196, subsection l, in its entirety and replacing it with the following:-

(l) Except as provided by subsection (e) and (f), each PEO or collectively each PEO Group shall maintain:

(1)positive working capital, as defined by generally accepted accounting principles, proof of which will be submitted at registration as reflected in the financial statements submitted to the department with the initial registration and each annual renewal; and

(2)Each PEO shall maintain a surety bond in the amount of not less than $250,000 proof of which will be submitted at the time of registration. The surety bond required shall be in a form acceptable to the director and maintained while the license remains in effect or any obligations or liabilities of the registrant remain outstanding.  At any time, the director may require a PEO to provide a bond in a greater amount based on the total number of covered employees and associated responsibilities the PEO has assumed through Professional Employer Agreements.

And further by striking section 196, subsection m, in its entirety and replacing it with the following:-

(m) A PEO or PEO Group that does not have positive working capital may provide a bond, irrevocable letter of credit, or securities with a minimum market value equaling the deficiency plus not less than $250,000.  At any time, the director may require a PEO to provide a bond in a greater amount based on the total number of covered employees and associated responsibilities the PEO has assumed through Professional Employer Agreements. Such bond is to be held by a depository designated by the department, securing payment by the PEO of all taxes, wages, benefits or other entitlement due to or with respect to covered employees, if the PEO does not make such payments when due.