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Bill > HB250


GA HB250

Better Small Business Employee Benefits Act; enact


summary

Introduced
02/04/2025
In Committee
03/10/2025
Crossed Over
03/06/2025
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT To amend Titles 33 and 34 of the Official Code of Georgia Annotated, relating to insurance and labor and industrial relations, respectively, so as to provide for the registration and regulation of professional employer organizations; to provide for certain regulatory powers, duties, and authority of the Commissioner of Insurance over professional employer organizations; to exempt such organizations from certain licensing requirements; to provide for definitions; to provide for the registration of such organizations; to provide for certain fees; to provide for the restriction of the use of certain terms; to provide for complaints; to provide for coordination with the Commissioner of Labor; to provide for a co-employment relationship; to provide for no effect on existing collective bargaining agreements or other contracts; to provide for legislative construction; to clarify rights, duties, and obligations of clients and professional employer organizations; to clarify employer and employee statuses; to clarify tax duties, obligations, and credits; to provide for disciplinary actions; to provide for the applicability of Chapter 8 of Title 34, the "Employment Security Law"; to provide for rules and regulations; to repeal obsolete provisions; to provide for the posting of a surety bond; to provide for conforming changes; to provide for a short title; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.

AI Summary

This bill establishes a comprehensive regulatory framework for Professional Employer Organizations (PEOs) in Georgia, creating a new chapter in state law to define, register, and govern these businesses. Beginning July 1, 2027, PEOs will be required to register with the Department of Insurance, providing detailed information about their business, including ownership, management, and financial statements. The bill defines key terms like "co-employment relationship" and establishes that in such an arrangement, both the PEO and the client have specific rights and responsibilities regarding employees. The legislation clarifies that PEOs can handle various employee-related services such as payroll, tax withholding, insurance, and benefits administration without being considered insurance agents or administrators. The bill also specifies that covered employees are considered employees of the client for purposes of licensing, tax credits, and other employment-related benefits, while the PEO handles administrative functions. Additionally, the bill outlines registration fees, limitations on PEO operations, and provides the Commissioner of Insurance with authority to enforce regulations, including the ability to deny, suspend, or revoke registrations and impose administrative penalties. The goal is to provide clear guidelines for PEOs, protect employee rights, and create a structured approach to professional employer services in Georgia.

Committee Categories

Business and Industry

Sponsors (5)

Last Action

Senate Read and Referred (on 03/10/2025)

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