Payroll processing services; require provider to register annually with Commissioner of Agriculture. (HB2114)

Introduced By

Del. Paul Nichols (D-Woodbridge)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Payroll processing services. Requires providers of payroll processing services to register annually with the Commissioner of Agriculture and Consumer Services or, if they are regulated financial institutions or subsidiaries thereof, with the Commissioner of Financial Institutions, and to post surety bonds in amounts equal to the withholdings of income taxes and unemployment compensation taxes that the payroll processers expect to process during the ensuing year. A payroll processor that does not have the authority to access, control, direct, transfer, or disburse a client's funds is not subject to the surety bond requirement. Payroll processors with such authority will be required to provide clients with reports, no less frequently than quarterly, that account for funds received and disbursed. The measure also addresses procedures, including the appointment of a receiver, in the event a payroll processor ceases to conduct business, either voluntarily or involuntarily. These requirements become effective on July 1, 2013, for any person that is providing payroll processing services on July 1, 2009. For any person that commences providing payroll processing services after July 1, 2009, the requirements become effective on the fourth anniversary of the date that the person commenced providing such services. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/13/2009Committee
01/13/2009Prefiled and ordered printed; offered 01/14/09 090129654
01/13/2009Referred to Committee on Commerce and Labor
01/21/2009Assigned C & L sub: 2
01/26/2009Impact statement from DPB (HB2114)
01/29/2009Subcommittee recommends striking from the docket by voice vote
02/10/2009Left in Commerce and Labor