The bill amends the Professional Employer Organization Registration Act by updating provisions related to health benefit plans and employee welfare benefit plans. Key changes include the introduction of new requirements for health benefit plans offered by professional employer organizations (PEOs). These plans must either be fully insured by an authorized insurer or self-funded, with specific stipulations such as utilizing a licensed third-party administrator, holding plan assets in a trust account, and providing written notice to covered employees about the plan's funding status. Additionally, PEOs are required to file quarterly reports with the department detailing financial statements, actuarial assessments, and compliance certifications.

The bill also clarifies the co-employment relationship between clients and PEOs, emphasizing the responsibilities of each party regarding employee management and liability. It establishes that a client retains the right to direct and control covered employees while outlining the PEO's obligations, including wage payments and workers' compensation coverage. Furthermore, the bill ensures that employee welfare benefit plans offered by a single PEO are treated as a single plan under state law, exempting them from certain registration requirements. The original sections of the law that are being amended are repealed, streamlining the regulatory framework for PEOs in Nebraska.

Statutes affected:
Introduced: 48-2706, 48-2708
Final Reading: 48-2706, 48-2708
Slip Law: 48-2706, 48-2708