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:

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

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

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

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

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

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

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

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

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section.

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     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

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

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years.

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     This act would take effect upon passage.

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