Professional Employer Organization Legislative Summary: 2009
(Full texts of all bills adopted by the Sixty-First 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 Sixty-First Legislative Assembly of North Dakota passed House Bill 1361 with an emergency clause causing the bill to go into effect on April 22, 2009. The bill is summarized as follows:
House Bill 1361: (effective April 22, 2009)
- Eliminates the audited financial statement verified by a certified public accountant as a routine requirement for a professional employer organization license.
- Provides authority to the Secretary of State or the Attorney General to request an audited financial statement verified by a certified public accountant if deemed necessary.
- Provides a continuous bond as a requirement for a professional employer organization license. The bond must accompany the application for a license and be held by the Secretary of State with a minimum value of the greater amount of $100,000, or 5% of the total wages reported on the employer’s quarterly contribution and wage report to Job Service North Dakota for the quarter ending immediately before the date submitted to the Secretary of State, but not to exceed $500,000. The bond must be held by the Secretary of State and secure payment by the professional employer organization of any tax, wage, benefit, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payment when due.
- Privatizes part of the license record held by the Secretary of State including the social security or federal tax identification number disclosed or contained in an application, all audited financial reports, and the employers’ quarterly contribution and wage report to Job Service North Dakota.
- Establishes cooperation between agencies of the State of North Dakota that regulate the activities of a professional employer organization.