§40-600.4. Registration – De minimus exemption.
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/ok/title-40-labor/40-600-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Registration required. Except as otherwise provided in the Oklahoma Professional Employer Organization Recognition and Registration Act, no person shall, unless the person is registered as a PEO or PEO Group under the Oklahoma Professional Employer Organization Recognition and Registration Act, provide, advertise, or otherwise hold itself out as providing professional employer services in this state.
B. Registration information.
1. Each PEO or PEO Group required to be registered under the Oklahoma Professional Employer Organization Recognition and Registration Act shall electronically submit a complete registration application to the Insurance Commissioner in a manner and form prescribed by the Commissioner, along with any applicable fees. Pursuant to paragraph 2 of this subsection, a PEO or PEO Group may use a qualified assurance organization as approved by the Commissioner to provide services related to the registration of the PEO or PEO Group.
A PEO or PEO Group may authorize an assurance organization to act on behalf of the PEO or PEO Group in complying with the registration requirements set forth in the Oklahoma Professional Employer Organization Recognition and Registration Act, including, but not limited to, electronic filings of information and payment of registration fees. At a minimum, PEOs, PEO Groups or an approved assurance organization acting on behalf of the PEO or PEO Group, shall provide the following information:
a. the name or names under which the PEO or PEO Group
conducts business,
b. the address of the principal place of business of the
PEO or PEO Group and the address of each office it
maintains in this state,
c. the PEO’s or PEO Group’s taxpayer or employer
identification number,
d.
a list by jurisdiction of each name under which the
PEO or PEO Group has operated in the preceding five
(5)years, including any alternative names, names of
predecessors and, if known, successor business
entities,
e. a statement of ownership, which shall include the name
and evidence of the business experience of any person
that, individually or acting in concert with one or
more other persons, owns or controls, directly or
indirectly, twenty-five percent (25%) or more of the
equity interests of the PEO or PEO Group,
f. a statement of management, which shall include the
name and evidence of the business experience of any
person who serves as president, chief executive
officer, or otherwise has the authority to act as
senior executive officer of the PEO or PEO Group, and
g. a financial statement setting forth the financial
condition of the PEO or PEO Group, as of a date not
earlier than three hundred sixty-five
(365)days prior
to the date submitted to the Commissioner, prepared in
accordance with generally accepted accounting
principles, and audited or reviewed by an independent
certified public accountant licensed to practice in
the jurisdiction in which such accountant is located.
A PEO Group may submit combined or consolidated
audited or reviewed financial statements to meet the
requirements of this section.
2. The financial statement required by subparagraph g of paragraph 1 of this subsection may be dated as of a date that is not earlier than three hundred sixty-five
(365)days before the date on which the application is submitted in the event the PEO or PEO Group provides the following:
a. evidence that is acceptable to the Commissioner that
it is licensed or registered in good standing in
another state with equal or greater requirements than
the requirements of the Oklahoma Professional Employer
Organization Recognition and Registration Act,
b. quarterly financial statements of management for each
calendar quarter as of the most recent audit that
demonstrate continuing financial operations acceptable
to the Commissioner, and
c. the certification of an independent Certified Public
Accountant that as of the end of the most recent
calendar quarter, the PEO or PEO Group has paid all of
its state and federal payroll taxes, health and
workers’ compensation premiums, and contributions to
employee retirement plans in a timely and appropriate
manner.
3. For purposes of the Oklahoma Professional Employer Organization Recognition and Registration Act, “assurance organization” means an independent entity approved by the Commissioner to certify the qualifications of a PEO or PEO Group for registration under this section and Section 600.6 of this title and any related requirements and procedures. To be considered for approval as an independent and qualified assurance organization, the assurance organization shall submit a written request for approval to the Commissioner. The written request shall include, but not be limited to, the following:
a. evidence that the assurance organization is
independent and has an established national program
for the accreditation and financial assurance of PEOs
and PEO Groups based on requirements similar to the
requirements of the Oklahoma Professional Employer
Organization Recognition and Registration Act, and any
rules promulgated for the implementation of the
Oklahoma Professional Employer Organization
Recognition and Registration Act,
b. evidence that the assurance organization has
documented qualifications, standards, procedures, and
financial assurance acceptable to the Commissioner and
is licensed or otherwise approved by one or more
states to certify the qualifications of PEOs or PEO
Groups,
c. an agreement to provide information, compliance
monitoring services, and a level of financial
assurance as deemed acceptable by the Commissioner,
d. an agreement to provide the Commissioner with an
application that has been executed by each PEO or PEO
Group requesting alternative registration under this
section and Section 600.6 of this title and related
requirements and procedures in a form approved by the
Commissioner. The application shall:
(1)authorize the assurance organization to share
with the Commissioner any application and
compliance reporting information required under
the Oklahoma Professional Employer Organization
Recognition and Registration Act that has been
provided to the assurance organization by the PEO
or PEO Group,
(2)authorize the Commissioner to accept information
shared by the assurance organization for
registration or renewal of registration of the
PEO or PEO Group as if the information was
provided directly to the Commissioner by the PEO
or PEO Group,
(3)provide the certification of the PEO or PEO Group
that the information provided by the assurance
organization to the Commissioner is true and
complete and that the PEO or PEO Group is in full
and complete compliance with all requirements of
the Oklahoma Professional Employer Organization
Recognition and Registration Act, and
(4)provide the certification of the assurance
organization that the PEO or PEO Group is in
compliance with the standards and procedures of
the assurance organization which are similar to
the requirements of the Oklahoma Professional
Employer Organization Recognition and
Registration Act and is qualified for
registration or renewal of registration under the
Oklahoma Professional Employer Organization
Recognition and Registration Act,
e. an agreement to provide written notice to the
Commissioner within two
(2)business days of
determination by the assurance organization of the
failure of a PEO or PEO Group to meet the
qualifications for registration under the Oklahoma
Professional Employer Organization Recognition and
Registration Act or determination by the assurance
organization of the failure of the PEO or PEO Group to
meet the qualifications for accreditation or
certification by the assurance organization, and
f. an agreement to share with the Commissioner in a
timely manner the information and supporting
documentation provided to the assurance organization
by the PEO or PEO Group similar to the information and
documentation required for registration or renewal of
registration under the Oklahoma Professional Employer
Organization Recognition and Registration Act.
4. Each person, PEO, or PEO Group shall electronically submit, in a form and manner prescribed by the Commissioner, along with any applicable fees, any change of legal business name, “doing business as” or assumed name, address, or contact email address within thirty
(30)days after the change occurred. Any submission of a change of legal name, “doing business as” or assumed name, address, or contact email address received more than thirty
(30)days after the change occurred shall be accompanied by a fee of Fifty Dollars ($50.00).
C. Renewal. 1. A registration expires one
(1)year following the registration unless it is renewed pursuant to this subsection.
Before expiration of the registration, a registrant may renew the registration for an additional one-year term if the registrant:
a. remains in good standing and otherwise is entitled to
be registered pursuant to the Oklahoma Professional
Employer Organization Recognition and Registration
Act,
b. files with the Commissioner a renewal application on a
form prescribed by the Commissioner, and
c. pays to the Commissioner a renewal fee as provided for
in Section 600.5 of this title.
2. A registration expired for failure to submit a renewal application may be reinstated within ninety
(90)days after the expiration date by electronically submitting a fee in an amount that is twice the amount of the renewal fee and a renewal application in the form and manner prescribed by the Insurance Commissioner, along with any transaction or other applicable fees. The Commissioner shall require a person, PEO, or PEO Group whose registration has been expired for more than ninety
(90)days to reapply as if a new applicant and pay an application fee equal to an amount that is twice the initial application fee in addition to any fines imposed. All applications received after the registration has been expired for more than ninety
(90)days shall include a detailed report of professional employer services provided in this state during the period of expired registration.
D. Group registration. Any two or more PEOs held under common control of any other person or persons acting in concert may be registered as a PEO Group. A PEO Group may satisfy any reporting and financial requirements of this registration law on a consolidated basis.
E. Electronic filing and compliance. A PEO, PEO Group or an approved independent and qualified assurance organization as provided for in subsection B of this section may electronically submit filings in conformance with Sections 15-101 through 15-121 of Title 12A of the Oklahoma Statutes. Electronically submitted filings include, but are not limited to, applications, documents, reports, and other filings required under the Oklahoma Uniform Electronic Transactions Act.
F. De minimis exemption.
1. A PEO is exempt from the registration requirements payable under the Oklahoma Professional Employer Organization Recognition and Registration Act if such PEO:
a. submits a properly executed request for exemption on a
form provided by the Department,
b. is domiciled outside this state and is licensed or
registered as a professional employer organization in
another state that has the same or greater
requirements as the Oklahoma Professional Employer
Organization Recognition and Registration Act,
c. does not maintain an office in this state or solicit
in any manner clients located or domiciled within this
state, and
d. does not have more than twenty-five covered employees
employed or domiciled in this state.
2. An exemption of a professional employer organization from the registration requirements under the Oklahoma Professional Employer Organization Recognition and Registration Act shall be valid for one
(1)year, subject to renewal.
G. List. The Commissioner shall maintain a list of professional employer organizations registered or exempted under the Oklahoma Professional Employer Organization Recognition and Registration Act and a list of approved assurance organizations.
H. Forms. The Commissioner may prescribe forms necessary to promote the efficient administration of this section.
I. The Commissioner is authorized to promulgate reasonable rules necessary for the administration and implementation of this section.
J. Every person, PEO, or PEO Group, upon receipt of any inquiry from the Commissioner, shall, within twenty
(20)days from the date of receipt of the inquiry, furnish the Commissioner with an adequate response to the inquiry.
K. The Commissioner may reject an application for registration, renewal of registration, or for an exemption from registration if the Commissioner finds that:
1. The application is not fully completed or properly executed;
2. Documents required to supplement the application are not included in the application packet or are inadequate;
3. The registration fee is not submitted with the application;
4. The applicant or any person named in the application misrepresents material in the application;
5. The applicant, or any of its officers, is determined by the Commissioner to lack good moral character, business integrity, or financial responsibility; or
6. The controlling person has violated a provision of the Oklahoma Professional Employer Organization Recognition and Registration Act or rules promulgated thereto. Added by Laws 2002, c. 64, § 4, eff. Nov. 1, 2002. Amended by Laws 2010, c. 222, § 53, eff. Nov. 1, 2010; Laws 2012, c. 238, § 1, eff. Nov. 1, 2012; Laws 2023, c. 217, § 1, eff. Nov. 1, 2023.