HB 2252
Initials PB Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: COM DP 10-0-0-0
HB 2252: professional employer organization; repeal
Sponsor: Representative Wilmeth, LD 2
Caucus & COW
Overview
Repeals statutes relating to the registration of Professional Employer Organizations (PEO).
History
According to the National Association of Professional Employer Organizations, a PEO
provides payroll, benefits, regulatory compliance assistance and other HR services to
companies. Any person who is engaged in the business of providing professional employer
services whether or not the person uses the term professional employer organization, staff
leasing company, registered staff leasing company, employee leasing company or any other
name is statutorily designated as a PEO. Statute requires PEOs to register with the
Secretary of State (SOS). PEOs must maintain either: 1) a minimum net worth of at least
$100,000; or 2) a bond, an irrevocable letter of credit or securities that have a minimum
market value of $100,000. The bond must be held by a depository designated by the SOS
(Title 23, Chapter 3, Art. 4, A.R.S.).
Laws 2023, Chapter 144, extended the delayed implementation of statutes relating to
Professional Employer Organization registration until June 30, 2024.
Provisions
1. Removes the requirement for a PEO to register with the SOS. (Sec. 2)
2. Changes the required bond to be held in an insured depository institution, rather than by
a depository designated by the SOS. (Sec. 3)
3. Repeals statutes relating to:
a) the registration of PEOs;
b) types of PEO registrations;
c) criminal acts and penalties for PEOs and clients of PEOs;
d) SOS authority to collect registration fees, adopt rules and penalties for PEO
violations; and
e) the PEO Fund. (Sec. 2, 5)
4. Makes technical changes. (Sec. 1, 3, 4)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note