DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE AMENDMENT NO. 1

TO

SENATE BILL NO. 18

AMEND Senate Bill No. 18 by deleting lines 126 through 128 in their entirety and inserting in lieu thereof the following:

“ b. “Payroll processing services” does not include any of the following:

1. An employer performing payroll processing services on its own behalf, on behalf of its affiliate, or a professional employment organization subject to regulation under other applicable state law.

2. A person designated as an agent of a payor for the purpose of providing payroll processing services for which the agent would otherwise need to be licensed under this chapter, if all of the following apply:

A. There is a written agreement between the payor and the agent that directs the agent to provide payroll services on the payor’s behalf.

B. The payor holds the agent out to employees and other payees as providing payroll processing services on the payor’s behalf.

C. The payor’s obligation to a payee, including an employee or another party entitled to receive funds via the payroll processing services provided by the agent, is not extinguished if the agent fails to remit the funds to the payee. ”.

AMEND Senate Bill No. 18 by deleting lines 201 through 202 in their entirety and inserting in lieu thereof the following:

“ (11) A person registered as a securities broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative under federal or state securities laws to the extent of its operation as such a broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative. ”.

SYNOPSIS

This Amendment clarifies the scope of “payroll processing services” by excluding certain designated agents of a payor. It further clarifies that securities broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives are exempt from registration under this chapter.

Author: Senator Mantzavinos