Bill Text: NY A07786 | 2021-2022 | General Assembly | Introduced

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Bill Title: Requires the department of financial services, in consultation with the department of taxation and finance, to conduct a study regarding insurance or other risk mitigation tools and third-party payroll service providers; provides that the superintendent of financial services shall submit a report to the governor, the temporary president of the senate and the speaker of the assembly of the department's findings, conclusions, and recommendations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-06-10 - substituted by s3577 [A07786 Detail]

Download: New_York-2021-A07786-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7786

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      May 21, 2021
                                       ___________

        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Banks

        AN ACT in relation to requiring the department of financial services, in
          consultation with the department of taxation and finance, to conduct a
          study  regarding  insurance  or other risk mitigation tools and third-
          party payroll service providers

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  1. The superintendent of financial services, in consulta-
     2  tion with the commissioner of taxation and  finance,  shall  review  the
     3  adequacy of employee protections and small business employer protections
     4  in  the payroll services industry.  The superintendent shall make recom-
     5  mendations regarding the same.   Such review shall include  but  not  be
     6  limited to:
     7    (a)  the present state of employee protections in the payroll services
     8  industry;
     9    (b) the present state of small business employer  protections  in  the
    10  payroll services industry;
    11    (c) the incidence of fraud or misappropriation of payroll funds in the
    12  payroll services industry;
    13    (d)  the  number  of  small  businesses  in  New York that use payroll
    14  service providers;
    15    (e) the number and size of payroll service providers in New York;
    16    (f) specific causal or facilitative facts regarding instances of fraud
    17  or misappropriation by payroll service providers;
    18    (g) the feasibility and  advisability  of  requiring  payroll  service
    19  providers to obtain insurance, post bonds, or utilize other risk manage-
    20  ment  tools to address potential situations in which payroll monies owed
    21  to employees on behalf of businesses  are  stolen,  misappropriated,  or
    22  otherwise  rendered unavailable after being transmitted from an employer
    23  to a payroll service provider or an affiliated entity; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07628-01-1
        A. 7786                             2

     1    (h) the feasibility and advisability of the  department  of  financial
     2  services  having  regulatory  oversight over third-party payroll service
     3  providers.
     4    2.  Within  one hundred twenty days of the effective date of this act,
     5  the superintendent of financial services shall submit a  report  to  the
     6  governor,  the  temporary president of the senate and the speaker of the
     7  assembly of the department's findings, conclusions, and recommendations.
     8    § 2. This act shall take effect immediately.