2009 Senate Bill 1037 / 2010 Public Act 370

Impose licensure and regulations on PEOs

Introduced in the Senate

Dec. 17, 2009

Introduced by Sen. Alan L. Cropsey (R-33)

To impose licensure, regulation, training, apprenticeship, testing requirements, and annual license fees of $100 with a $250 application fee on professional employer organizations (PEOs). PEOs are companies that "lease" employees to other firms on a long term basis but remain the employer of record for purposes of paying payroll taxes.

Referred to the Committee on Commerce and Tourism

May 19, 2010

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Sept. 23, 2010

Substitute offered

To replace the previous version of the bill with one that revises details, including raising the proposed annual license fees to $1,500.

The substitute passed by voice vote

Passed in the Senate 36 to 0 (details)

To impose licensure, regulation, training, apprenticeship, testing requirements, working capital and bonding requirements, and annual license fees of $1,500 (plus a $1,500 application fee) on professional employer organizations (PEOs). PEOs are companies that "lease" employees to other firms on a long term basis but remain the employer of record for purposes of paying payroll taxes.

Received in the House

Sept. 23, 2010

Referred to the Committee on Regulatory Reform

Dec. 15, 2010

Passed in the House 66 to 26 (details)

Signed by Gov. Jennifer Granholm

Dec. 22, 2010