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violation for which a fine of up to $1,000 per day may be | | adjudged for each day that the payroll processor is in | | violation of the requirements of section 1495-A or 1495-D. |
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| | | D.__A payroll processor who violates the provisions of | | section 1495-E commits a civil violation for which a fine up | | to or equal to the amount invested in violation of section | | 1495-E may be adjudged. |
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| | | Sec. 5. 10 MRSA §§1495-D, 1495-E, 1495-F and 1495-G are enacted to read: |
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| | | 1.__Bond required; duration.__Prior to commencing business in | | this State, a payroll processor shall obtain a surety bond in | | favor of the Treasurer of State for the benefit of persons as | | their interest may appear, executed by a surety company | | authorized to do business in this State and payable to any party | | injured under the terms of the bond.__The payroll processor shall | | maintain the bond in full force while the payroll processor does | | business in this State and for a period of one year following the | | cessation of business in this State by that payroll processor. |
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| | | 2.__Minimum amount of bond.__The amount of the surety bond | | required pursuant to this section must be at least equal to the | | 4-year aggregate of all employer and employee taxes handled by | | the payroll processor.__If a payroll processor does not have a 4- | | year history, the amount of the bond must be at least $100,000. |
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| | | 3.__Cancellation notification.__A surety company insuring a | | surety bond pursuant to this section shall immediately notify the | | Department of Professional and Financial Regulation when that | | bond is canceled or terminated or lapses.__The notice must be in | | writing and must be transmitted by the surety company by | | electronic means as prescribed by the department.__The notice | | must include the name and address of the payroll processor and | | the amount of the bond. |
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| | | §1495-E.__Investment of funds |
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| | | A payroll processor may deposit or invest the funds handled by | | it only as described in this section. |
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| | | 1.__Deposits in insured institutions.__Funds handled by a | | payroll processor may be invested in deposits or share accounts | | in any financial institution or credit union, as long as deposits | | or shares in the financial institution or credit union are | | insured by the Federal Deposit Insurance Corporation or the | | National Credit Union Administration. |
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