Professional Employer Organization Legislative Summary: 2007

(Full texts of all bills adopted by the Sixtieth Legislative Assembly are available on the Secretary of State’s website at www.nd.gov/sos/ under the lobbying and legislative link located in the left side menu)

The 60th Legislative Assembly of North Dakota passed legislation that requires professional employer organizations to obtain a license from the Secretary of State. The bill is summarized as follows:

Senate Bill 2036: (effective October 1, 2007)

• Provides definitions and general requirements related to professional employer organizations
• Defines the rights, duties and obligations under an employer agreement
• Establishes the licensing requirement
• Provides that a financial statement verified by a certified public accountant be submitted with a license application and be verified no more than 180 days prior to the submission of the application to the Secretary of State
• Requires that the financial statement clearly define the working capital of the professional employer organization.
• Requires submission of a $100,000 surety bond to the Secretary of State by a professional employer organization seeking a license and that does not have a minimum working capital of $100,000
• Provides a complaint process, disciplinary actions and penalties