HB 1645 Oklahoma House · 2026 Regular Session

Insurance; Insurance Act of 2025; effective date.

HB 1645 requires all Professional Employer Organizations (PEOs) operating in Oklahoma to obtain and maintain a license from the Oklahoma Insurance Department. To secure a license, applicants must submit background checks, proof of positive working capital, and required forms, with falsification leading to denial or revocation. PEOs must renew licenses annually, including updated background checks, while those serving fewer than 50 employees in Oklahoma may qualify for a limited license with specific restrictions (e.g., no in-state office or client solicitation). The bill establishes clear requirements for licensing, renewal, and enforcement to ensure PEOs meet financial and operational standards.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 3, 2025 Last action Feb 4, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Proposed Policy Committee Substitute 1 · 7 edits

MODERATE

The bill was amended by the Policy Committee to replace the original text with a revised version that focuses on regulating Professional Employer Organizations (PEOs) in Oklahoma. The changes include updated definitions, requirements for licensing PEOs, background investigations, and provisions for assurance organizations that provide financial backing for PEOs.

Scope change

The bill now specifically regulates Professional Employer Organizations (PEOs) rather than establishing a broader Insurance Act of 2025. It adds requirements for PEO licensing, background checks, and oversight of assurance organizations.

SCOPE

Changed from a general Insurance Act of 2025 to a specific act regulating Professional Employer Organizations (PEOs)

DEFINITION

Added new definitions for 'assurance organization' and 'controlling person' with specific criteria for who qualifies under each term

REQUIREMENT

Added requirements for PEO licensees to undergo annual background investigations and submit to compliance monitoring

Added provisions requiring PEOs to work with approved assurance organizations for financial security and compliance monitoring

Added requirements for PEOs to provide certain notices to clients and covered employees, and allow audits of required records

TIMELINE

Changed effective date from November 1, 2025 to January 1, 2025

ENFORCEMENT

Added provisions for denial or revocation of licenses based on falsification of information and failure to meet continuing requirements

Floor votes

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Full legislative history

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Key actions

Committee

Feb 3, 2025

Introduced

First Reading

lower

1 primary · 0 co-sponsors