MO HB2203

Amends chapter 285, RSMo by adding 11 new sections (285.700-285.750) to create the "Professional Employer Organization Act" establishing registration and regulation requirements for PEOs in Missouri.

Requires PEOs to register with the Department of Labor and Industrial Relations, submitting information on ownership, management, business history, and audited financial statements; initial registration fee not to exceed $500 and annual renewal fee not to exceed $250.

Establishes co-employment relationships where PEOs and clients allocate employer rights and obligations through professional employer agreements, with clients retaining direction and control of covered employees and exclusive rights regarding licensing, professional activities, and business operations.

Requires PEOs to maintain positive working capital or provide a bond/letter of credit equal to the working capital deficiency plus $100,000 to secure payment of wages, taxes, and benefits to covered employees.

Authorizes the department to deny, revoke, or restrict PEO licenses and impose penalties up to $1,000 per material violation for violations including operating without registration, providing false information, criminal convictions, or willful violations of the act.