Senate Bill 385 Summary

• Requires payroll processors doing business in North Carolina to obtain and maintain a surety bond or contractual liability insurance policy to protect employers and the state.

• Authorizes the Commissioner of Insurance to determine the amount of surety bonding required based on the volume of each processor's business, with bonds designated to benefit the Commissioner and affected employers.

• Allows payroll processors to use contractual liability insurance as an alternative to surety bonds, with policies covering 100% of the processor's business volume and requiring Commissioner approval of all policy forms.

• Mandates payroll processors maintain records for at least six years and permits the Commissioner to conduct regular examinations and hire consultants for regulatory activities without standard state procurement requirements.

• Establishes enforcement mechanisms including injunctions, cease and desist orders (including emergency orders), and civil penalties for violations of the Article.

• Effective January 1, 2016, or six months after ratification, whichever occurs sooner.