December 7, 2006

Senator R. Michael Young

Chairperson, Administrative Oversight Committee

c/o Sarah Burkman

Legislative Services Agency

RE: Rule pursuant to IC 27-16-4-7, LSA Doc #06-69, Professional Employer Organizations

Dear Senator Young:

Pursuant to IC 27-16-4 and IC 27-16-5 the Commissioner may adopt rules governing regarding the registration of Professional Employer Organizations (PEOs). On April 1, 2006, the Department published a notice of intent to promulgate a rule. The Department anticipates that it may not complete the rulemaking process within 1 year and is hereby tendering notice under IC 4-22-2-25. The Department has held several meetings with industry personnel and circulated multiple draft rules after incorporating industry comments. The Department expects to publish the proposed rule in December 2006 and to hold a public hearing in January 2007. In order to provide ample time to review comments received at the public hearing and for the appropriate review times, the Department expects to have the final rule approved by June, 1, 2007.

If you have any questions or need any additional information I can be reached at 232-0143.

Very truly yours,

Amy E. Strati

Chief Counsel