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). Specifically, these plans must either be fully insured by an authorized insurer or self-funded, with stipulations for utilizing a licensed third-party administrator, holding plan assets in a trust, and providing written notice to covered employees about the plan's funding status. Additionally, PEOs are required to file quarterly reports detailing financial statements and compliance with relevant laws.

The bill also clarifies the employer status of both clients and PEOs concerning retirement and employee welfare benefit plans. It establishes that a health benefit plan offered by a single PEO will be treated as a single employee welfare benefit plan under state law, exempting it from certain registration requirements. Furthermore, it ensures that all covered employees of a client participating in a health benefit plan are considered employees of the PEO for insurance purposes, thereby streamlining the process for health insurance coverage. The original sections of the law that are being amended are repealed, reflecting the updates made by this legislation.

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