1. (a) This article and a professional employer agreement do not affect, modify, or amend a federal, state, or local:

   1. (1) license;
   2. (2) registration; or

   3. (3) certification;

      requirement that applies to a client or covered employee.

2. (b) The following apply to a federal, state, or local requirement described in subsection (a):

   1. (1) A covered employee who is required to be licensed, registered, or certified is considered solely an employee of the client for purposes of a license, registration, or certification requirement.

   2. (2) A PEO is not considered to engage in an occupation, a trade, a profession, or another activity that is:

      1. (A) subject to a license, registration, or certification requirement; or

      2. (B) otherwise regulated by a governmental entity;

         solely because the PEO has entered into and maintained a co-employment relationship with a covered employee who is subject to a requirement or regulation described in clause (A) or (B).

   3. (3) A client has the sole right of direction and control of the professional or licensed activities of a covered employee and of the client's business.

   4. (4) Only a:

      1. (A) covered employee; or

      2. (B) client;

         that is subject to a requirement or regulation described in subdivision (2)(A) or (2)(B) is subject to the regulation by a regulatory or governmental entity responsible for licensing, registration, certification, or other regulation of the covered employee or client.

As added by P.L.245-2005, SEC.7.