B. A payroll processor that conducts business in this State and fails to register with obtain a license from the State Tax Assessor administrator as required by section 1495-A 1495-D commits a civil violation for which a penalty of not less than $500 $1,500 nor more than $2,500 $7,500 may be adjudged.

Sec. 6. 10 MRSA §§1495-D to 1495-I are enacted to read:

§1495-D.__Licensing; proof of insurance and bonding; fees

1.__License required.__A person desiring to engage or continue in business in this State as a payroll processor shall apply to the administrator for a license under this chapter on or before January 31st of each year. The application must be in a form prescribed by the administrator. The administrator may refuse the application if it contains erroneous or incomplete information. A license may not be issued unless the administrator, upon investigation, finds that the financial responsibility, character and fitness of the applicant and, where applicable, its partners, officers or directors, warrant belief that the business will be operated honestly and fairly within the purposes of this chapter.

2.__Proof of fidelity insurance.__Each applicant shall provide to the administrator proof of one of the following, at the applicant's option, in an amount 2 times the highest weekly payroll processed by the applicant in the preceding year or in the amount of $5,000,000, whichever is less:

A.__Fidelity bond;

B.__Employee dishonesty bond;

C.__Third-party fidelity coverage; or

D.__Liability insurance, including crime coverage.

3.__Proof of surety bond.__Except as provided in section 1495- E, subsection 4, an applicant under subsection 1 shall provide to the administrator proof of the surety bond required pursuant to section 1495-E.

4.__Fees.__The initial application and annual renewal application must include a fee of $250 if the payroll processor has fewer than 25 employers as payroll processing clients; $500 if the payroll processor has from 25 to 500 employers as payroll