NY State Senate Bill S3577

Archive: Last Bill Status Via A7786 - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (22)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 06, 2022	signed chap.186
Apr 27, 2022	delivered to governor
Mar 01, 2022	returned to assembly passed senate 3rd reading cal.489 substituted for s3577
Mar 01, 2022	substituted by a7786
Feb 16, 2022	advanced to third reading
Feb 15, 2022	2nd report cal.
Feb 14, 2022	1st report cal.489
Jan 05, 2022	referred to insurance returned to senate died in assembly
Jun 10, 2021	ordered to third reading rules cal.794 substituted for a7786
Mar 23, 2021	referred to insurance delivered to assembly passed senate
Mar 18, 2021	advanced to third reading
Mar 17, 2021	2nd report cal.
Mar 16, 2021	1st report cal.572
Jan 30, 2021	referred to insurance

Votes

S3577 (ACTIVE) - Details

See Assembly Version of this Bill:: A7786
Law Section:: Financial Services
Versions Introduced in 2019-2020 Legislative Session:: S6728

S3577 (ACTIVE) - Summary

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.

S3577 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S3577

SPONSOR: BRESLIN
 
TITLE OF BILL:  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

 
PURPOSE:

To require the department of financial services to conduct a study
regarding third-party payroll service providers

 
SUMMARY OF PROVISIONS:

This bill requires the Superintendent of the Department of Financial
Services, in consultation with the Commissioner of the Department of
Taxation and Finance, to conduct a study in which the Superintendent
will review the adequacy of employee protections and small business
employer protections in the payroll services industry, The Superinten-
dent shall make recommendations regarding the same. The bill requires

the review to include an assessment of:

(a) the present state of employee protections in the payroll services
industry;

(b) the present. state of small business employer protections in the
payroll services industry;

(c) the. incidence of fraud or misappropriation of payroll funds in the
payroll services industry;

(d) the number of small businesses in New York that use payroll service
providers;

(e) the number and size of payroll service providers in New York;

(f) specific causal or facilitative facts regarding instances of fraud
or misappropriation by payroll services providers,

(g) the feasibility and advisability of requiring payroll service
providers to obtain insurance, post bonds, or utilize other risk.
management tools to address potential situations in which payroll monies
owed to employees on behalf of businesses are stolen, misappropriated,
or otherwise rendered unavailable after being transmitted from an
employer to a payroll service provider or an affiliated. entity, and

(h) the feasibility and advisability of the department of financial
services having regulatory oversight over third-party payroll service
providers.

Within one hundred twenty days of the effective date, the bill requires
the superintendent of the department of financial services to submit a
report to the governor, temporary president of the senate and speaker of
the assembly of the department's findings, conclusions, and recommenda-
tions.

 
JUSTIFICATION:

In September 2019, MyPayrol1HR, a payroll service provider in upstate
New York with clients across the state and nation, abruptly ceased oper-
ations and left thousands of employees and small employers without their
pay or funds. Employees were left unable to pay bill s and rent, and
employers struggled to obtain sufficient funds for outstanding payroll
expenses. 'Employees and employers alike were negatively impacted in
escalating ways, with employers losing employees and business, and
employees losing jobs, assets, and security.

This situation suggests that it is appropriate to look more closely at
the payroll services industry in New York state, to assess whether more
risk mitigation practices and employee/employer payroll protections are
needed. This legislation. would serve the interests of consumers,
employees, and small businesses in New York.

 
LEGISLATIVE HISTORY:

S6728 of 19/20

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after 14 it
shall have become a law.

S3577 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3577
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2021
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 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:
 
   Section 1. 1. The superintendent of financial services,  in  consulta-
 tion  with  the  commissioner  of taxation and finance, shall review the
 adequacy of employee protections and small business employer protections
 in the payroll services industry.  The superintendent shall make  recom-
 mendations  regarding  the  same.   Such review shall include but not be
 limited to:
   (a) the present state of employee protections in the payroll  services
 industry;
   (b)  the  present  state of small business employer protections in the
 payroll services industry;
   (c) the incidence of fraud or misappropriation of payroll funds in the
 payroll services industry;
   (d) the number of small  businesses  in  New  York  that  use  payroll
 service providers;
   (e) the number and size of payroll service providers in New York;
   (f) specific causal or facilitative facts regarding instances of fraud
 or misappropriation by payroll service providers;
   (g)  the  feasibility  and  advisability  of requiring payroll service
 providers to obtain insurance, post bonds, or utilize other risk manage-
 ment tools to address potential situations in which payroll monies  owed
 to  employees  on  behalf  of businesses are stolen, misappropriated, or
 otherwise rendered unavailable after being transmitted from an  employer
 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

 S. 3577                             2
 
   (h)  the  feasibility  and advisability of the department of financial
 services having regulatory oversight over  third-party  payroll  service
 providers.
   2.  Within  one hundred twenty days of the effective date of this act,
 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.
   § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S3577

Sponsored By

Archive: Last Bill Status Via A7786 - Signed by Governor

Your Voice

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Votes

Mar 1, 2022 - floor Vote

Floor Vote: Mar 1, 2022

Feb 14, 2022 - Insurance committee Vote

Insurance Committee Vote: Feb 14, 2022

Mar 23, 2021 - floor Vote

Floor Vote: Mar 23, 2021

Mar 16, 2021 - Insurance committee Vote

Insurance Committee Vote: Mar 16, 2021

S3577 (ACTIVE) - Details

S3577 (ACTIVE) - Summary

S3577 (ACTIVE) - Sponsor Memo

S3577 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S3577

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status Via A7786 - Signed by Governor

Your Voice

Actions

Votes

Mar 1, 2022 - floor Vote

Floor Vote: Mar 1, 2022

Feb 14, 2022 - Insurance committee Vote

Insurance Committee Vote: Feb 14, 2022

Mar 23, 2021 - floor Vote

Floor Vote: Mar 23, 2021

Mar 16, 2021 - Insurance committee Vote

Insurance Committee Vote: Mar 16, 2021

S3577 (ACTIVE) - Details

S3577 (ACTIVE) - Summary

S3577 (ACTIVE) - Sponsor Memo

S3577 (ACTIVE) - Bill Text download pdf

Comments