Whereas, payroll processing companies handle millions of dollars belonging to Maine businesses and residents, the State of Maine and the Federal Government; and

Whereas, although these payroll processing companies have a fiduciary duty to the employers from whom the payroll processing companies receive this money, the business of payroll processing is relatively unregulated; and

Whereas, this lack of regulation occasionally leads to the loss of large amounts of money through unscrupulous acts, the remedy for which is deficient; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 10 MRSA §1495-A, as enacted by PL 1999, c. 172, §1 and affected by §2, is amended to read:

§1495-A. Registration required

1. Generally. A payroll processor that conducts business in this State must register annually with the State Tax Assessor Department of Professional and Financial Regulation by January 30th on a form designed and furnished by the assessor.

2. Information required. The information required of a registrant must include the name and mailing address of the payroll processor, the physical location or locations where payroll processing services are performed, a list of the services performed for clients by the payroll processor and any other information the State Tax Assessor Department of Professional and Financial Regulation determines to be necessary.

3. Proof of liability insurance. Each registrant shall provide to the State Tax Assessor proof of one of the following, at the registrant's option, in an amount 2 times the highest weekly payroll processed by the registrant in the preceding year or $5,000,000, whichever is less:

A. Fidelity bond;