DAR File No. 30438

Commerce, Occupational and Professional Licensing

R156-59

Professional Employer Organization Registration Act Rule

NOTICE OF PROPOSED RULE

DAR File No.: 30438
Filed: 09/12/2007, 11:13
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The statute regarding professional employer organizations, Title 58, Chapter 59, was amended during the 2007 Legislative General Session in H.B. 29. This new rule is being proposed to designate which assurance organization is approved to certify the qualifications for granting a registration to a professional employer organization. (DAR NOTE: H.B. 29 (2007) is found at Chapter 134, Laws of Utah 2007, and was effective 04/30/2007.)

Summary of the rule or change:

The new rule provides the following sections: title, authority, organization/relationship to Rule R156-1, and qualifications for registration/designated assurance organization.

State statutory or constitutional authorization for this rule:

Section 58-59-101, and Subsections 58-1-106(1)(a), 58-59-302(2)(e)(i), and 58-59-302.5(1)

Anticipated cost or savings to:

the state budget:

The division will incur minimal costs of approximately $50 to print the rule once it is made effective. Any costs incurred will be absorbed in the division's current budget.

local governments:

The proposed rule does not apply to local governments; therefore, no costs or savings are anticipated. The proposed rule only applies to professional employer organizations.

small businesses and persons other than businesses:

The proposed rule only applies to professional employer organizations and applicants for registration as a professional employer organization. It should be noted that a professional employer organization may qualify as a "small business". However, the division does not know how many employees may be employed in a registered professional employer organization. As a result of this proposed rule, the division does not anticipate any costs or savings beyond those previously addressed in the statute amendments made in H.B. 29.

Compliance costs for affected persons:

The proposed rule only applies to professional employer organizations and applicants for registration as a professional employer organization. As a result of this proposed rule, the division does not anticipate any costs or savings beyond those previously addressed in the statute amendments made in H.B. 29.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated with this rule filing beyond those addressed with the passage of the Professional Employer Organization Registration Act and its recent amendments in H.B. 29. Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Occupational and Professional Licensing
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Clyde Ormond at the above address, by phone at 801-530-6254, by FAX at 801-530-6511, or by Internet E-mail at cormond@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/31/2007

Interested persons may attend a public hearing regarding this rule:

10/15/2007 at 9:00 AM, Heber Wells Bldg, 160 E 300 S, Conference Room 475 (fourth floor), Salt Lake City, UT

This rule may become effective on:

11/07/2007

Authorized by:

F. David Stanley, Director

R156. Commerce, Occupational and Professional Licensing.

R156-59. Professional Employer Organization Registration Act Rule.

R156-59-101. Title.

This rule shall be known as the "Professional Employer Organization Registration Act Rule."

 

R156-59-103. Authority.

This rule is adopted by the division under the authority of Subsection 58-1-106(1)(a) to enable the division to administer Title 58, Chapter 59.

 

R156-59-104. Organization - Relationship to Rule R156-1.

The organization of this rule and its relationship to Rule R156-1 is as described in Section R156-1-107.

 

R156-59-301. Qualifications for Registration - Designated Assurance Organization.

(1) The qualifications certified by an assurance organization are as set forth in Subsections 58-59-302.5(2) and (3). No additional qualifications are established by rule.

(2) The Employer Services Assurance Corporation (ESAC) meets the requirements set forth in Subsection 58-59-302.5.

 

KEY: professional employer organization, registration

Date of Enactment of Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 58-1-106(1)(a); 58-59-101; 58-59-302(2)(e)(i); 58-59-302.5(1)