House Bill 1166 Summary

• Defines "working capital" as the difference between current assets and current liabilities, determined using generally accepted accounting principles, effective July 1, 2010.

• Replaces the minimum net worth requirement of $50,000 with a requirement that PEOs maintain positive working capital as reflected in financial statements submitted to the department, effective January 1, 2012.

• Requires PEOs without positive working capital to maintain surety bonds, letters of credit, securities, cash, or combinations thereof in an amount sufficient to cover negative working capital plus $100,000.

• Changes financial statement requirement from "reviewed" to "audited" by a certified public accountant or certified individual, with exceptions for PEOs with less than 12 months operating history.

• Clarifies that PEOs and PEO groups are not considered successor employers under Indiana unemployment compensation law (IC 22-4-10).