MS HB331

Requires professional employer organizations (PEOs) operating in Mississippi to register with the Insurance Department and prohibits providing PEO services without registration.

Establishes registration requirements including submission of ownership information, management details, financial statements audited by certified public accountants, and maintenance of positive working capital or bonding.

Sets initial registration fee at $500 and annual renewal fee at $250, with lower fees ($250) for limited registrations for out-of-state PEOs with fewer than 50 covered employees in Mississippi.

Defines co-employment relationships between PEOs and clients, clarifying that clients retain primary control over covered employees and licensing responsibilities while PEOs handle payroll, taxes, and benefits administration.

Authorizes the Insurance Commissioner to impose disciplinary actions including license denial, revocation, administrative penalties up to $1,000 per violation, and cease and desist orders for violations of the act; effective July 1, 2021.