This Amendment clarifies the scope of “payroll processing services” by excluding certain designated agents of a payor.

Plain English Breakdown

The effective date is missing from the provided metadata and bill excerpt.

Amendment to Senate Bill No. 18 on Payroll Processing Services

This amendment clarifies that certain designated agents of a payor and specific securities professionals are excluded from the definition of payroll processing services or exempt from registration.

What This Bill Does

• Excludes employers performing payroll for themselves, their affiliates, or professional employment organizations regulated by other state laws.
• Excludes designated agents who have a written agreement with the payor and act on the payor's behalf if the payor remains responsible for paying employees even if the agent fails to send funds.
• Exempts securities broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives from registration under this chapter while performing their regulated duties.

Who It Names or Affects

• Employers processing payroll for themselves or affiliates
• Designated agents of a payor who meet specific agreement and liability conditions
• Securities broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives

Terms To Know

Payroll processing services

Services that are now defined to exclude certain employers and designated agents under specific conditions.

Designated agent

A person hired by a payor to provide payroll services who is excluded from licensing if there is a written agreement, the agent acts on behalf of the payor, and the payor remains liable for payments.

Limits and Unknowns

• The official text does not state an effective date.
• The source material only confirms passage by the Senate; final enrollment or executive action details are noted as passed but specific dates beyond May 5, 2026, are not provided.

Official Summary Text

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.

Current Bill Text

Legislation Document

SPONSOR:

Sen. Mantzavinos

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