Section 921. Minimum net worth, bonding and reporting

1. Every initial
  registration and subsequent annual reporting shall be accompanied  by  a
  reviewed  or an audited financial statement of the professional employer
  organization's most recent fiscal  year  end  and  prepared  within  one
  hundred  eighty  days  prior to the date of application or renewal by an
  independent certified public accountant  in  accordance  with  generally
  accepted accounting principles, which statement shall show a minimum net
  worth  of  seventy-five  thousand dollars, and shall be accompanied by a
  cover letter from the independent certified public accountant  that  the
  professional  employer  organization  has  satisfied the requirements of
  this section. A professional  employer  organization  group  may  submit
  combined  or  consolidated  audited  or reviewed financial statements to
  meet the requirements of this section. Where the group  or  the  group's
  parent submits a combined or consolidated statement, the statement shall
  include  supplemental consolidating or combining schedules covering each
  professional employer organization registered under the group.
    2. As a substitute for the requirement set forth in subdivision one of
  this section, the department may require that the professional  employer
  organization deposit in a depository designated by the department a bond
  or  securities  with  a  minimum  market  value of seventy-five thousand
  dollars. The securities so deposited shall include authorizations to the
  department to sell those securities in an amount sufficient to  pay  any
  taxes,  wages, benefits or other entitlement due a worksite employee, if
  the professional employer organization does not make those payments when
  due. Any bond or securities deposited under this subdivision  shall  not
  be  included  for  the  purpose  of calculation of net worth required by
  subdivision one of this section.
    3. Every  professional  employer  organization  shall  submit  to  the
  department,  within sixty days after the end of each calendar quarter, a
  statement  by  an  independent  certified  public  accountant  that  all
  applicable  federal  and  state payroll taxes have been paid on a timely
  basis for that quarter.
    4.  All  records,  reports  and  other  information  obtained  from  a
  professional  employer  organization  under  this article, except to the
  extent necessary for the proper administration by the department of this
  article and all applicable labor laws, shall be confidential  and  shall
  not  be  published  or  open  to  public inspection other than to public
  employees in the performance of their public duties.
    5. The department may rescind, suspend or revoke  a  registration  for
  failure to comply with this article. Should a registrant wish to contest
  an  action of the department, the department may require such additional
  financial assurances or bond required to protect the  interests  of  the
  state  and  its  citizens  during  the course of the appeal. Two or more
  violations by a professional employer organization, of any kind, of this
  article within any five year period shall be grounds for revocation of a
  registration and no new registration shall be granted for  a  period  of
  two  years  to  such professional employer organization or to any person
  who was or  should  have  been  listed  by  such  professional  employer
  organization  at  the  time of registration in compliance with paragraph
  (e) of subdivision one of section nine hundred nineteen of this article.