North Dakota Code 43-55-03 – Licensing requirements
1. A person may not provide, advertise, or otherwise hold itself out as providing professional employer services, unless the person is licensed under this chapter. A person engaged in the business of providing professional employer services shall obtain a license regardless of its use of the term or conducting business as a “professional employer organization”, “staff leasing company”, “registered staff leasing company”, “employee leasing company”, “administrative employer”, or any other name.
Terms Used In North Dakota Code 43-55-03
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Individual: means a human being. See North Dakota Code 1-01-49
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes a limited liability partnership registered under chapter 45-22. See North Dakota Code 1-01-49
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- Statute: A law passed by a legislature.
- year: means twelve consecutive months. See North Dakota Code 1-01-33
2. Each applicant for licensure shall provide the secretary of state with the following information:
a. The name of the professional employer organization and any name under which the professional employer organization intends to conduct business in this state.
b. The designation of organization of the applicant whether domestic or foreign; a corporation, limited liability company, general partnership, limited partnership, limited liability partnership, limited liability limited partnership, sole proprietor, or any other person subject to a governing statute; and the jurisdiction of origin of the organization.
c. The address of the principal place of business of the professional employer organization and the address of each office it maintains in this state.
d. The professional employer organization’s taxpayer or employer identification number.
e. The date of the end of the applicant’s fiscal year.
f. A list of jurisdictions in which the professional employer organization has operated in the preceding five years, including any alternative names, names of predecessors, and, if known, successor business entities.
g. A statement of ownership, which must include the name and address of any person that owns or controls twenty-five percent or more of the equity interests of the professional employer organization.
h. A statement of management, which must include the name and address of any individual who serves as president, chief executive officer, or otherwise has the authority to act as a senior executive officer of the professional employer organization.
i. A bond as provided under section 43-55-05.
j. A copy of the employer’s quarterly contribution and wage report to job service North Dakota for the quarter ending immediately before the date submitted to the secretary of state. A professional employer organization that has not filed an employer’s quarterly contribution and wage report with job service North Dakota shall submit a bond in the amount as provided under section 43-55-05.
3. A license issued under this section is valid for one year and may be renewed within sixty days before the expiration of the license by submitting to the secretary of state:
a. The information required in subsection 2; b. The license fee provided in section 43-55-04; and c. A bond as provided under section 43-55-05.
4. A person applying for licensure or a renewal of licensure shall maintain continuously its organization’s applicable records current and in good standing as otherwise required by law.
5. The secretary of state shall maintain a list of professional employer organizations licensed under this chapter.