HI HB2645

Establishes a Professional Employer Organization Special Fund administered by the Department of Labor and Industrial Relations to implement registration and collect fees and fines from professional employer organizations.

Creates six new sections in Chapter 373L authorizing the Director to deny, suspend, revoke, or fine professional employer organizations for violations including failure to meet registration requirements, false statements, failure to maintain records, or late wage payments.

Sets registration fees effective July 1, 2012: $100 application fee, $2,500 initial registration fee, $2,500 biennial renewal fee, and $250 restoration fee, with fees deposited into the special fund.

Increases bond requirements for professional employer organizations from a flat $250,000 to tiered amounts: $500,000 minimum for organizations with fewer than 100 employees or new entrants, and five percent of prior year's total wages and benefits for all others.

Changes registration renewal expiration date from December 31 of odd-numbered years to June 30 of even-numbered years, with provisions allowing forfeiture and restoration within one year upon payment of fees.