No. 37911 (5-year Review): Rule R590-246. Professional Employer Organization (PEO) License Application Rule

DAR File No.: 37911
Filed: 08/09/2013 12:56:46 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 31A-2-201(3)(a) authorizes the commissioner to write rules to implement the provisions of Title 31A. Section 31A-40-103 requires a rule to prescribe requirements for forms required under Chapter 40; prescribe requirements and process for correcting deficiency in working capitol or negative working capital; may make rules to prescribe the requirements for the review and submission of a financial statement; and allows the commission to make rules to prescribe the requirements and process for when a PEO license is terminated. Section 31A-40-302 requires a rule to establish the licensing application form procedure for submitting it to the commissioner. Section 31A-40-306 addresses how to comply with the requirements of Sections 31A-40-205, 31A-40-302, and 31A-40-305 on a combined or consolidated basis files an audited financial statement.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The department has not received any written statements within the past five years regarding this rule.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

It is important that this rule continue in force. It provides forms and instruction for the licensure of Professional Employer Organizations, which are a unique group, unlike other licensees of the department and without guidance from the insurance code.

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

Insurance
Administration
Room 3110 STATE OFFICE BLDG
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 [e-mail]

Authorized by:

Todd Kiser, Commissioner

Effective:

08/09/2013

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