republic-os/legislation/us/states/ky/2022rs/hb-506.md

---
type: "Bill"
title: "AN ACT relating to the recognition and registration of professional employer organizations."
description: "Create new sections of KRS Chapter 336 to declare that professional employer organizations provide a valuable service to commerce and should be properly recognized and regulated; define \"client,\" \"co-employer,\" \"co-employment relationship,\" \"covered employee,\" \"insurer,\" \"person,\" \"professional employer agreement,\" \"professional employer organization,\" \"professional employer organization group,\" \"professional employer services,\" \"registrant,\" and \"temporary help service\"; indicate that covered employees shall be deemed employees of the client for purposes of determining tax credits or economic incentives; require a person providing professional employer services to be registered and to set forth the registration requirements; require professional employer organizations to pay a registration fee; require a professional employer organization to either maintain positive working capital or provide a bond, letter of credit, or security; set forth the rights and responsibilities of parties to a co-employment agreement; set forth the health insurance obligations of professional employer organizations; set forth the workers' compensation requirements of professional employer organizations and the client; set forth the unemployment insurance obligations of the professional employer organization and the client; prohibit a person from knowingly providing professional employer services without becoming registered and set forth actions that may be taken by the Department of Workers' Claims against any person in violation; amend the definition of \"premiums received\" in KRS 342.0011 to include co-employment relationships with a professional employer organization; amend KRS 342.990 to delete references to KRS 342.615; repeal KRS 342.615; state that the provisions of this Act are severable."
jurisdiction: "us/states/ky"
legislature: "Kentucky General Assembly"
session: "2022RS"
identifier: "HB 506"
citation: "Kentucky HB 506 (2022RS)"
classification: ["bill"]
subjects: ["Economic Development", "Labor and Industry", "Personnel and Employment", "Unemployment Compensation", "Workers' Compensation"]
status: "enacted"
primary_sponsors: ["P. Pratt"]
version_count: 3
action_count: 19
vote_count: 2
first_action: "2022-02-16T05:00:00+00:00"
last_action: "2022-03-29T04:00:00+00:00"
source: "openstates"
source_identifier: "ocd-bill/f283a33d-4d6c-4ddd-a0aa-5adfaf09017a"
source_url: "https://apps.legislature.ky.gov/record/22RS/hb506.html"
source_hash: "e2952d943bcd9857f4031ed092329f5863122621cc410a3642586128a266b4fd"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ky"]
---

# Kentucky HB 506 (2022RS) — AN ACT relating to the recognition and registration of professional employer organizations.

Create new sections of KRS Chapter 336 to declare that professional employer organizations provide a valuable service to commerce and should be properly recognized and regulated; define "client," "co-employer," "co-employment relationship," "covered employee," "insurer," "person," "professional employer agreement," "professional employer organization," "professional employer organization group," "professional employer services," "registrant," and "temporary help service"; indicate that covered employees shall be deemed employees of the client for purposes of determining tax credits or economic incentives; require a person providing professional employer services to be registered and to set forth the registration requirements; require professional employer organizations to pay a registration fee; require a professional employer organization to either maintain positive working capital or provide a bond, letter of credit, or security; set forth the rights and responsibilities of parties to a co-employment agreement; set forth the health insurance obligations of professional employer organizations; set forth the workers' compensation requirements of professional employer organizations and the client; set forth the unemployment insurance obligations of the professional employer organization and the client; prohibit a person from knowingly providing professional employer services without becoming registered and set forth actions that may be taken by the Department of Workers' Claims against any person in violation; amend the definition of "premiums received" in KRS 342.0011 to include co-employment relationships with a professional employer organization; amend KRS 342.990 to delete references to KRS 342.615; repeal KRS 342.615; state that the provisions of this Act are severable.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Introduced** (filed) — [source](https://apps.legislature.ky.gov/recorddocuments/bill/22RS/hb506/orig_bill.pdf)
2. **Acts Chapter 50** (committee substitute) — [source](https://apps.legislature.ky.gov/law/acts/22RS/documents/0050.pdf)
3. **Current/Final** (committee substitute) — [source](https://apps.legislature.ky.gov/recorddocuments/bill/22RS/hb506/bill.pdf)

## Votes

- Pass — **pass** (pass) · lower
- FINAL PASSAGE HB 506 — **pass** (pass) · lower

## Sponsors

- P. Pratt — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2022-02-16T05:00:00+00:00** introduced in House `introduction`
- **2022-02-16T05:00:00+00:00** to Committee on Committees (H) `referral-committee`
- **2022-02-22T05:00:00+00:00** to Small Business & Information Technology (H) `referral-committee`
- **2022-02-23T05:00:00+00:00** reported favorably, 1st reading, to Calendar `committee-passage`
- **2022-02-24T05:00:00+00:00** 2nd reading, to Rules `reading-2`
- **2022-02-24T05:00:00+00:00** posted for passage in the Regular Orders of the Day for Friday, February 25, 2022
- **2022-02-25T05:00:00+00:00** 3rd reading, passed 88-1 `passage, reading-3`
- **2022-02-25T05:00:00+00:00** received in Senate
- **2022-02-25T05:00:00+00:00** to Committee on Committees (S) `referral-committee`
- **2022-03-07T05:00:00+00:00** to Economic Development, Tourism, & Labor (S) `referral-committee`
- **2022-03-15T04:00:00+00:00** reported favorably, 1st reading, to Calendar `committee-passage`
- **2022-03-16T04:00:00+00:00** 2nd reading, to Rules `reading-2`
- **2022-03-17T04:00:00+00:00** posted for passage in the Regular Orders of the Day for Tuesday, March 22, 2022
- **2022-03-22T04:00:00+00:00** 3rd reading, passed 35-1 `passage, reading-3`
- **2022-03-22T04:00:00+00:00** received in House
- **2022-03-23T04:00:00+00:00** enrolled, signed by Speaker of the House `passage`
- **2022-03-23T04:00:00+00:00** enrolled, signed by President of the Senate `passage`
- **2022-03-23T04:00:00+00:00** delivered to Governor
- **2022-03-29T04:00:00+00:00** signed by Governor (Acts Ch. 50) `executive-signature`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/f283a33d-4d6c-4ddd-a0aa-5adfaf09017a`. Confidence: reported (aggregated from official Kentucky legislature records).