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 regarding the management of plan assets, actuarial standards, and reporting obligations. Additionally, the bill mandates that PEOs provide written notice to covered employees about the nature of their health benefit plans and includes provisions for compliance hearings if a PEO fails to meet the new requirements.

Furthermore, the bill clarifies the employer status of both clients and PEOs under state law for retirement and employee welfare benefit plans. It specifies that a health benefit plan offered to covered employees by a single PEO will be treated as a single employee welfare benefit plan, exempting it from the registration requirements of the Multiple Employer Welfare Arrangement Act. The bill also ensures that all covered employees of a client participating in a health benefit plan sponsored by a PEO are considered employees of the PEO for insurance purposes, thereby streamlining the insurance process for these employees.

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