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SA1TOSB18 • 2025

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

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

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Mantzavinos
Last action
2026-05-05
Official status
Passed 5/5/26
Effective date
Not listed

Plain English Breakdown

The candidate explanation included an exemption for securities professionals which is not directly supported by the provided official source material. The amendment clarifies that these entities are exempt but does not specify how this affects payroll processing services.

Amendment to Exclude Certain Agents From Payroll Processing Services

This amendment changes the definition of payroll processing services by excluding certain designated agents.

What This Bill Does

  • Changes the definition of 'payroll processing services' to exclude specific types of agents.
  • Requires a written agreement between the payor and the agent for the exclusion to apply.
  • Ensures the payor is responsible if the agent fails to send out funds correctly.
  • Exempts securities broker-dealers, their agents, investment advisers, and representatives from registration requirements.

Who It Names or Affects

  • Employers who use designated agents for payroll processing services.

Terms To Know

Payroll Processing Services
Services that handle the payment of salaries, wages, and other benefits to employees.
Designated Agent
A person or company chosen by an employer to manage payroll services on their behalf.

Limits and Unknowns

  • The amendment does not specify how the changes will be enforced.
  • It is unclear what happens if a designated agent fails to meet the requirements after being excluded from registration.

Bill History

  1. 2026-05-05 Delaware General Assembly

    Passed By Senate. Votes: 21 YES

  2. 2026-05-04 Delaware General Assembly

    Introduced and Placed With Bill

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

Read the full stored 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