Insurance, Administration

Section R590-246-4

Initial and Renewal Licensing Process

Notice of Proposed Rule

(Amendment)

DAR File No.: 34709
Filed: 04/20/2011 04:44:24 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

There are two reasons for the change of this rule. First, to correct a date that would require anyone obtaining a new license after 05/04/2008 to pay the cost of a new license every time they renewed their license. The second change provides a more direct website URL to the department for professional employer organizations (PEO) information and forms.

Summary of the rule or change:

Subsection R590-246-4(2) provides the date renewal license applications are due each year. Subsection R590-246-4(3) eliminates the reference to PEOs that are registered with the Department of Commerce prior to 05/04/2008 when their license is being renewed. New wording instructs PEOs on how to file and pay for initial and renewal fees and applications. In four different places in Section R590-246-4, the department's website URL has been made more specific.

State statutory or constitutional authorization for this rule:

• Section 31A-40-103
• Section 31A-2-201
• Section 31A-40-304
• Section 31A-40-302

Anticipated cost or savings to:

the state budget:

The changes to this rule will have no impact on the department or state's budget or workload. The changes follow the procedures being followed by the department. The current wording in Subsection R590-246-4(3) requires any PEO not registered with the Department of Commerce prior to 05/04/2008 to be issued a new license, even at renewal. The cost of a new license is $2,000 and the cost of a renewal license is $1,000. This original wording was to assist in the transition from the Department of Commerce registering PEOs to the Insurance Department licensing them. The wording is no longer needed and is being eliminated. Since the department has never charged a renewal license at the rate of an initial license fee, this change will have no impact on department or state revenues.

local governments:

This rule has no fiscal effect on local governments. The rule deals solely with the relationship between the department and its licensees. In this case, the licensee is the PEO.

small businesses:

There will be no fiscal impact on small businesses since the changes being made to this rule mirror the licensing procedures the department has already been following since they began licensing PEOs.

persons other than small businesses, businesses, or local governmental entities:

There will be no fiscal impact on individuals, large businesses, or local governments since the changes being made to this rule follow the intent of the rule and the current department renewal procedures and fees.

Compliance costs for affected persons:

There will be no fiscal impact on affected persons since the changes being made follow the intent of the rule and the department's renewal procedures and fees.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule will have no fiscal impact on businesses in Utah. It simply clarifies the intent of the original rule and the licensing procedures of the department in the case of PEOs.

Neal T. Gooch, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2011

This rule may become effective on:

06/21/2011

Authorized by:

Jilene Whitby, Information Specialist

R590. Insurance Administration.

R590-246. Professional Employer Organization (PEO) License Application Rule.

R590-246-4. Initial and Renewal Licensing Process.

(1) All professional employer organization types must comply with the appropriate statutory requirements and complete and submit the appropriate initial or renewal license application form and any supporting documents to the commissioner.

(2) The initial or renewal application form, and all attachments must be submitted electronically via:

(a) a PDF attachment to an email - the preferred method;[ or]

(b) an electronic facsimile[.]; or

(c) Renewal applications are due September 30th of each year.

(3)[ A professional employer organization applicant that was registered with the Division of Professional Licensing, Utah Department of Commerce prior to May 4, 2008, will be considered as a renewing licensee by the Department and will:

(a) submit a renewal application prior to September 30, 2008; and

(b) will pay the annual renewal fee in accordance with the instructions issued with the renewal invoice.

] (a) Pay the initial license fee by check submitted to the address shown at the bottom of the last page of the application found at www.insurance.utah.gov/insurers/ProfessionalEmployerOrganization.html. Checks not drawn on the professional employer organization must be referenced to the organization.

(b) Pay renewal fees in accordance with the instructions issued with the renewal invoice.

(4) A professional employer organization applicant that was not registered with the Division of Professional Licensing, Utah Department of Commerce prior to May 4, 2008, is a new applicant and must:

(a) submit a new application;

(b) pay the license fee by check submitted to the address on the Department's webpage at www.insurance.gov. Checks not drawn on the Professional Employer Organization must be referenced to the organization.

([4]5) Professional employer types for initial and renewal licenses:

(a) Professional Employer Organization - Not CERTIFIED Through An Assurance Organization.

(i) Comply with the requirements in Sections 31A-40-205, 31A-40-302 and 31A-40-305.

(ii) Complete the Professional Employer Organization - Not Certified Through An Assurance Organization license application form posted on the Department's webpage at www.insurance.utah.gov /insurers/ProfessionalEmployerOrganization.html.

(iii) The requirement in 31A-40-302(2)(g) will be satisfied by completing and submitting the UCAA Biographical Affidavit form posted on the Department's webpage at www.insurance.utah.gov /insurers/ProfessionalEmployerOrganization.html.

(b) Professional Employer Organization - CERTIFIED Through An Assurance Organization.

(i) Comply with the requirements in Section 31A-40-303.

(ii) Complete the Professional Employer Organization - Certified Through An Assurance Organization license application form posted on the Department's webpage at www.insurance.utah.gov /insurers/ProfessionalEmployerOrganization.html.

(c) Professional Employer Organization - Small Operation License.

(i) Comply with the requirements in Section 31A-40-304.

(ii) Complete the Professional Employer Organization - Small Operation License application form posted on the Department's webpage at www.insurance.utah.gov /insurers/ProfessionalEmployerOrganization.html.

(d) Professional Employer Organization Group.

(i) Comply with the requirements in Section 31A-4-306.

(ii) Complete the appropriate Professional Employer Organization license application:

(A) Professional Employer Organization - Not Certified Through An Assurance Organization;

(B) Professional Employer Organization - Certified Through An Assurance Organization; or

(C) Professional Employer Organization - Small Operation License.

 

KEY: professional employer organization licensing

Date of Enactment or Last Substantive Amendment: [September 11, 2008]2011

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-40-103; 31A-40-302; 31A-40-304