2014 -- S 2020

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LC003241

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- PROFESSIONAL EMPLOYER

ORGANIZATION ACT OF 2004

     Introduced By: Senators Walaska, and Lombardo

     Date Introduced: January 09, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 5-75-6 of the General Laws in Chapter 5-75 entitled "Professional

Employer Organizations Act of 2004" is hereby amended to read as follows:

     5-75-6. Financial capability -- Net worth and bonding. -- Each PEO shall maintain a

bond or securities with a minimum market value of fifty thousand dollars ($50,000) held by a

depository designated by the department securing payment by the PEO of all taxes, wages,

benefits or other entitlement due to or with respect to covered employees, if the PEO does not

make such payments when due. A PEO registered under this chapter and certified by the division

of taxation for at least two (2) years shall be exempt from the bonding requirements of this

section.

     SECTION 2. This act shall take effect upon passage.

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LC003241

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- PROFESSIONAL EMPLOYER

ORGANIZATION ACT OF 2004

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     This act would eliminate the exemption from bonding requirements for professional

employer organizations that have been certified by the division of taxation for at least two (2)

years.

     This act would take effect upon passage.

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LC003241

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