Bill > S268

This bill amends the North Carolina Professional Employer Organization (PEO) Act to update several key requirements for professional employer organizations seeking licensure and registration in the state. The bill introduces new definitions including "tangible net worth" and "working capital", and modifies licensing requirements by expanding financial documentation standards, broadening the information required about officers and controlling persons, and providing the Commissioner of Insurance more discretion in evaluating license applications. Specifically, applicants must now demonstrate a tangible net worth of at least $50,000 and positive working capital, submit more detailed financial statements, and provide comprehensive background information on officers and directors. The bill also allows the Commissioner to accept financial statements from a parent company under certain conditions and expands grounds for denying a license, such as felony convictions or previous regulatory issues. Additionally, the bill modifies de minimis registration requirements for smaller PEO operations, including restrictions on physical presence, employee count, and advertising in the state. These changes aim to enhance regulatory oversight and ensure the financial stability and integrity of professional employer organizations operating in North Carolina.

https://www.ncleg.gov/BillLookUp/2025/S268