§ 23-92-401. Title

This subchapter may be cited as the “Arkansas Professional Employer Organization Recognition and Licensing Act”.

§ 23-92-402. Definitions

As used in this subchapter: (1) “Client” means any person who enters into a coemployment relationship as a coemployer with a professional employer organization; (2) “Coemployer” means a professional employer organization or a client of a professional employer organization; (3) “Coemployment relationship” means: (A) As between coemployers, a relationship in which the rights, duties, and […]

§ 23-92-403. Relationship to other laws

(a) (1) Neither this subchapter nor any professional employer agreement shall affect, modify, or amend any collective bargaining agreement or the rights or obligations of any client, professional employer organization, or covered employee under the National Labor Relations Act, as it existed on January 1, 2003. (2) This subchapter preserves all rights to which a […]

§ 23-92-404. Licensing and renewal

(a) Except as otherwise provided in this subchapter, no person shall provide, advertise, or otherwise hold itself out as providing professional employer services in Arkansas unless the person is licensed as a professional service organization under this subchapter. (b) (1) Each professional employer organization required to be licensed under this subchapter shall provide the Insurance […]

§ 23-92-405. Controlling person

(a) Each controlling person shall provide information and certifications necessary for the Insurance Commissioner to determine that the controlling person is of good moral character and: (1) Is at least eighteen (18) years of age; and (2) Has the education, managerial, or business experience to successfully act as the controlling person of a professional employer […]

§ 23-92-406. Changes in control

(a) (1) A license issued to any professional employer organization under this subchapter may not be transferred or assigned. (2) A licensee may not operate an entity subject to licensing under this subchapter under any name or at any location other than that specified in the application for the license or without having received the […]

§ 23-92-407. Fees

(a) Upon filing an initial licensing statement under this subchapter, a professional employer organization shall pay an initial licensing fee of one thousand dollars ($1,000). (b) Upon each biennial renewal of a licensing statement filed under this subchapter, a professional employer organization shall pay a renewal fee of one thousand dollars ($1,000). (c) Each professional […]

§ 23-92-408. Financial assurance required

(a) Each professional employer organization shall maintain: (1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or (2) (A) A bond in the amount of at least one hundred thousand dollars ($100,000). […]

§ 23-92-409. Relationships defined

(a) (1) Except as specifically provided in this subchapter, the coemployment relationship between the client and the professional employer organization and between each coemployer and each covered employee shall be governed by the professional employer agreement. (2) Neither this subchapter nor any professional employer agreement shall: (A) Diminish, abolish, or remove rights of covered employees […]

§ 23-92-410. Issuance, refusal, suspension, or revocation of license — Grounds and procedure

(a) The Insurance Commissioner shall issue a license as a professional employer organization to any person who qualifies for the license under the terms of this subchapter. (b) In addition, the commissioner may refuse to issue a license to any person, may suspend or revoke the license of any professional employer organization, or impose administrative […]

§ 23-92-411. Deceptive practices

(a) No professional employer organization shall: (1) Evade or attempt to evade the provisions of this subchapter by purporting to be the sole employer of the covered employees; (2) Present a proposal to enter into a professional employer agreement with a prospective client unless the following notice is printed in not less than 12-point bold […]

§ 23-92-412. Penalties

(a) Any person who engages in the business of a professional employer organization or acts as a professional employer organization without first procuring a license or who otherwise violates any of the provisions under this subchapter shall be liable for a civil penalty of not less than two hundred fifty dollars ($250) nor more than […]

§ 23-92-413. Nondisclosure of proprietary information

(a) (1) Professional employer organizations and professional employer organization groups are required under this subchapter to file with the Insurance Commissioner certain proprietary material, including financial records and financial information and client lists, the disclosure of which would give advantage to competitors. (2) (A) The commissioner shall not consider proprietary material under this subchapter to […]

§ 23-92-414. Employer service assurance organization affidavit

(a) The Insurance Commissioner may provide by rule for the acceptance of an employer service assurance organization affidavit provided on behalf of a professional employer organization in lieu of the requirements under §§ 23-92-404 — 23-92-406 and 23-92-408 and the fees provided for in § 23-92-407. (b) The fee for filing an employer service assurance […]

§ 23-92-415. Licensing of employer service assurance organizations

(a) (1) No employer service assurance organization shall provide any service relating to the regulation of professional employer organizations, and no state agency, professional employer organization, or insurer shall utilize the services of the organization for those purposes unless the organization has obtained a license from the Insurance Commissioner. (2) No state agency, professional employer […]

§ 23-92-416. Employer service assurance organizations — Prohibited activities

(a) No employer service assurance organization shall attempt to monopolize or to combine or conspire with any other person to monopolize any market or make any arrangement with any professional employer organization, employer service assurance organization, or other person that has the purpose or effect of unreasonably restraining trade or of substantially lessening competition in […]

§ 23-92-417. Employer service assurance organization — Permitted activities

In addition to other activities permitted, any employer service assurance organization may: (1) Provide services under § 23-92-414 and § 23-92-419(b); (2) Develop and administer standards, procedures, and programs of accreditation and financial assurance and other services for professional employer organizations and state agencies unless otherwise prohibited by law; and (3) Furnish any other services […]

§ 23-92-418. Filing of information

(a) Each employer service assurance organization shall file with the Insurance Commissioner each affidavit and related document and information under § 23-92-414 or § 23-92-419(b) on or before the date the affidavit or related document and information are otherwise due, as prescribed by the commissioner. (b) The commissioner may extend the filing deadline by prior […]

§ 23-92-419. Rules

(a) (1) The Insurance Commissioner may prescribe rules for the conduct of the business of professional employer organizations needed to implement this subchapter. (2) The commissioner shall adopt rules under this subchapter in compliance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq. (b) (1) The commissioner may adopt reasonable rules for use by […]