Bill > H717

This bill amends the North Carolina Professional Employer Organization (PEO) Act to update various regulatory requirements for professional employer organizations. The bill introduces new definitions such as "tangible net worth" (the difference between physical assets and total liabilities) and "working capital" (the difference between current assets and current liabilities), and modifies licensing and financial reporting requirements. Key changes include expanding the requirements for group licensing, adjusting financial statement submission timelines from 90 to 120 days, and introducing more detailed criteria for license applications and maintenance. The bill allows for more flexible financial reporting, such as permitting parent company financial statements under certain conditions, and provides the Commissioner with broader discretion to deny licenses based on factors like criminal history, financial instability, or past regulatory issues. The bill also updates de minimis registration requirements, including clarifying restrictions on out-of-state PEOs operating in North Carolina, and adds more specific provisions about the information and attestations required from PEO officers during the licensing and annual reporting processes. The changes aim to enhance regulatory oversight and ensure the financial responsibility and integrity of professional employer organizations operating in the state.

Budget and Finance, Business and Industry, Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H717