Bill Text: NY S06728 | 2019-2020 | General Assembly | Introduced

New York Senate Bill 6728 (Prior Session Legislation)

Introduced

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 2-0)

Status: (Engrossed - Dead) 2020-01-28 - referred to insurance [S06728 Detail]

Download: New_York-2019-S06728-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          6728

                               2019-2020 Regular Sessions

                    IN SENATE

                                   September 18, 2019
                                       ___________

        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        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.
                                                                   LBD13784-01-9

        S. 6728                             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.