C. Third-party fidelity coverage; or

D. Liability insurance, including crime coverage.

4.__Proof of surety bond.__A registrant under subsection 1 shall provide to the Department of Professional and Financial Regulation proof of the surety bond required pursuant to section 1495-D.

Sec. 2. 10 MRSA §1495-B, sub-§1, as enacted by PL 1997, c. 495, §1, is amended to read:

1. Generally. Except as provided by subsection 2, a payroll processor shall provide a disclosure statement at the time of contracting and by September 1st of each even-numbered year to each employer for which it provides payroll processing services. The statement must be made on a form designed jointly by the State Tax Assessor; the Department of Labor, Bureau of Employment Security; and the Department of Professional and Financial Regulation, Office of Consumer Credit Regulation. The disclosure statement form must be provided by the assessor to payroll processors and must include at a minimum the following:

A. The length of time in which the payroll processor has been in the business of providing payroll processing services; and

B. A statement as to whether any payroll processing services are contracted out to others and, if so, which services are contracted out and to whom.

Sec. 3. 10 MRSA §1495-C, sub-§1, ¶B, as enacted by PL 1997, c. 495, §1, is amended to read:

B. A payroll processor that conducts business in this State and fails to register with the State Tax Assessor Department of Professional and Financial Regulation as required by section 1495-A commits a civil violation for which a penalty of not less than $500 nor more than $2,500 may be adjudged.

Sec. 4. 10 MRSA §1495-C, sub-§1, ¶¶C and D are enacted to read:

C.__A payroll processor that fails to maintain the surety bond required by section 1495-D or to provide proof of the surety bond to the Department of Professional and Financial Regulation as required by section 1495-A commits a civil