HB 717: Amend NC Professional Employer Organization Act. - North Carolina

A1: ACJ-7-V-2 → Edition 1 · 6 edits

MODERATE

This bill amends the North Carolina Professional Employer Organization Act to clarify definitions, establish group licensure rules, adjust financial requirements for applicants, and repeal an outdated reporting provision. The changes aim to modernize regulations governing professional employer organizations by updating terminology, setting clearer financial thresholds, and allowing multiple related organizations to operate under a single license.

Scope change

The bill expands the scope by introducing group licensure provisions that allow multiple professional employer organizations controlled by the same parent entity to be licensed together, and updates the definition of temporary employees to include specific work arrangements.

DEFINITION

Added a new definition for 'temporary employees' to clarify arrangements where organizations hire employees and assign them to client companies.

REQUIREMENT

Changed the deadline for submitting audited financial statements from 45 days to 60 days after each fiscal quarter ends.

Increased the time period for submitting audited financial statements from 90 days to 120 days before application date.

Repealed subsection (g) of G.S. 58-89A-60, which contained a specific reporting requirement that is no longer needed.

Corrected a financial requirement by changing the working capital threshold from 50,000 dollars to 100,000 dollars for certain applicants.

ADDED

Established group licensure provisions allowing two or more professional employer organizations controlled by the same parent entity to be licensed as a group, with members guaranteeing each other's financial obligations.

Filed → A1: ACJ-7-V-2 · 4 edits

MODERATE

This amendment adds a committee amendment page to the bill and modifies the timeline for financial reporting requirements. The most significant change extends the deadline for PEOs to submit quarterly financial reports from 45 days to 60 days after the end of each fiscal quarter, giving organizations more time to prepare and submit their financial data to the Commissioner.

Scope change

The bill's scope remains focused on the North Carolina Professional Employer Organization Act, but the amendment slightly broadens the reporting timeline for financial compliance.

TECHNICAL

Added a formal amendment page header with signature lines and amendment tracking information (A1 version).

TIMELINE

Extended the quarterly financial reporting deadline from 45 days to 60 days after the end of each fiscal quarter.

REQUIREMENT

Changed the financial statement submission deadline from 90 days to 120 days before the application date.

Extended the grace period for accepting older audited financial statements from 90 days to 120 days prior to submission.

Edition 2 → Edition 3 · 2 edits

MINOR

This revision updates the bill version number from Edition 2 to Edition 3 and adjusts the title page date from April 17 to April 30, 2025. The substantive legislative content regarding Professional Employer Organization (PEO) licensing requirements, financial thresholds, and surety bond amounts remains unchanged between these two versions.

TECHNICAL

Updated bill version number from Edition 2 to Edition 3 and changed the engrossment date from 4/17/25 to 4/30/25 on the title page.

Reordered the first section of the bill text, moving the group licensure requirements to appear before the license issuance language, but keeping the same substantive content.

Edition 1 → Edition 2 · 4 edits

MODERATE

This bill revision updates the formatting and presentation of HB 717, which amends North Carolina's Professional Employer Organization (PEO) Act. The changes include removing sponsor names and committee referral details from the header, while adding a committee substitute designation. The substantive legislative text remains largely unchanged, though some line numbers and formatting markers were adjusted during the revision process.

TECHNICAL

Removed primary sponsor names (Representatives Humphrey, Setzer, and Balkcom) and the complete list of sponsors reference from the bill header.

Removed the committee referral information (Insurance, Finance, Rules, Calendar, and Operations of the House) from the bill header.

Added 'Committee Substitute Favorable 4/17/25' designation to indicate this is a revised version approved by the committee.

Adjusted line numbering and formatting throughout the document to reflect the new version structure, with some text appearing in different line positions.

Amend NC Professional Employer Organization Act.

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