Adds terms tangible net worth and working capital to the definitions provisions of the NC Professional Employer Organization Act (Act) under GS 58-89A-5. Modifies the term audited GAAP financial statement so it is just referred to as an audited financial statement.

Broadens the entities that may be licensed as professional employer organization groups under GS 58-89A-35 to include persons (currently, limited to professional employer organizations) that are controlled by the same parent, entity or persons. Allows such groups to satisfy their reporting and financial requirements on a consolidated or combined basis (currently, just consolidated). Clarifies that the conditions pertaining to financial obligations must be met before the group is considered a professional employer organization group. Makes technical changes.

Expands persons required to file an additional surety bond under the described conditions set forth in GS 58-89A-50 to include licensees. Makes clarifying and conforming changes.

Repeals GS 58-89A-60(g) (listing certain conditions pertaining to the controlling person upon which the Insurance Commissioner [Commissioner] may deny licensure to an applicant under the Act).

Amends GS 58-89A-60 (licensure applications), as amended by the act, as follows. Expands required information pertaining to applicant managers to be submitted to the Commissioner to now include listing of directors, the educational background of all listed persons and their management and business experience. Removes requirement that Commissioner engage in rulemaking to require additional information beyond the statute, but specifies that any additional information required must be reasonable. Extends the date for completion of the applicant's audited financial statement to be submitted to the Commissioner to one that has been prepared no more than 120 days before the date of the application (currently, 90 days before the date of the application). Requires an applicant to have a tangible net worth of at least $50,000. Makes technical, conforming, and clarifying changes. Removes requirement that the audited financial statement be prepared in accordance with generally accepted accounting principles and then audited by an independent CPA as described. Now, just requires preparation of the audited financial statement by an independent CPA as described. Provides for additional documentation that must be submitted with an applicant’s combined or consolidated audited financial statement.

Allows applicants that do not have at least 12 months of operating history to meet the financial requirements by filing with the Commissioner financial statements that have been reviewed by an independent CPA and prepared not later than 90 days before the date of the application (currently, not requirement for such applicants to use an independent CPA or 90-day timeframe). Authorizes the Commissioner to accept the audited financial statement of the applicant’s parent company if the submitted information allows the Commissioner to determine the financial condition and financial responsibility of the applicant. Authorizes the Commissioner to accept the audited financial statement of an applicant's parent company and consider the financial condition and financial responsibility of the parent in lieu of the applicant if three listed conditions are met, including that the information in the audited financial statement and other documents meet the statutory requirements and enable the Commissioner to determine the financial condition and financial responsibility of the parent and the applicant. Expands persons required to submit to fingerprinting and a criminal background check to include changes in officers, directors, and other controlling persons of professional employer organization groups licensed under the Act (currently, change to a controlling party of a professional employer organization).

Lists six circumstances under which the Commissioner may deny licensure, including that a controlling person of the applicant has been convicted of a felony, that the applicant has not provided evidence satisfactory to the Commissioner of financial responsibility, and that the applicant is not current with respect to all of its obligations for payroll, payroll-related taxes, workers' compensation insurance, and employee benefits and the applicant has failed to satisfy the Commissioner as to the reasons why. Removes provision authorizing denial of an application for any reason for which a license may be suspended or terminated under GS 58-89A-155. Makes conforming and technical changes.

Repeal subsections (a1), (c1), and (c2) of GS 58-89A-65. 

Expands persons required to annually certify compliance with the licensure requirements of the Act in GS 58-89A-70 to include officers and directors of the licensee. Modifies the evidence of financial responsibility that must be included with each licensee’s annual filing with the Commissioner so that it now means an audited financial statement of the licensee or its parent company if allowed by the Commissioner on a form as described. Adds requirement for annual submission of an attestation, executed by the chief financial officer and the chief executive officer of the licensee, that the licensee is current with respect to all of its obligations for payroll, payroll-related taxes, workers' compensation insurance, and employee benefits, as described. Limits other information required by the Commission to reasonable information. Makes technical changes.

Now also requires that an applicant for de minimis registration as a limited professional employer under GS 58-89A-75 not be domiciled in the State. Clarifies the ways an applicant can advertise other than through any media outlet physically located in the State. No longer accepts persons only registered as professional employer organization in another State as eligible for de minimis registration. Makes organizational changes.

Applies to applications for licensure issuance or renewal submitted on or after the act becomes law.