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administrator may, in the administrator's discretion, use an audit | | report of a payroll processor performed by the processor or another | | party to supplement or substitute for the administrator's own | | regular examination. In addition, the administrator may, at any | | time, conduct a special examination or investigation of any payroll | | processor the administrator believes has engaged in conduct that is | | a violation of any provision in this chapter.__For purposes of both | | routine and special examinations and investigations, the payroll | | processor shall give the administrator free and reasonable access | | to the offices, places of business and records of the payroll | | processor, and the administrator may make and procure copies of | | those records, books, documents or other materials without | | employing the subpoena powers provided by subsection 2.__For | | purposes of both routine and special examinations and | | investigations, and in addition to reviewing for compliance with | | other provisions of this chapter, the administrator may review the | | safety and soundness of the payroll processor, including but not | | limited to an examination of its assets and liabilities and its | | investments of employer funds to ensure that the payroll processor | | is utilizing prudent investment practices with respect to those | | funds. |
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| | | 2.__Subpoenas.__For the purposes of this section, the | | administrator may administer oaths or affirmations and, upon the | | administrator's own motion or upon request of any party, may | | subpoena witnesses, compel their attendance, adduce evidence and | | require the production of any matter that is relevant to an | | examination or investigation, including the existence, | | description, nature, custody, condition and location of any | | books, documents or other material and the identity and location | | of persons having knowledge of relevant facts or any other matter | | reasonably calculated to lead to the discovery of admissible | | evidence. |
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| | | 3.__Inspection of records.__If the payroll processor's records | | are located outside this State, that payroll processor, at the | | administrator's option, shall either make the records available | | to the administrator at a convenient location within the State or | | allow the administrator or the administrator's representatives to | | inspect them at the place where the records are maintained. The | | administrator may designate representatives, including comparable | | officials of the state in which the records are located, to | | inspect them on the administrator's behalf. |
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| | | 4.__Maintenance of records.__A payroll processor shall | | maintain records of its payroll processing service activity in | | conformity with generally accepted accounting principles and | | practices and in a manner that will enable the administrator to | | determine whether the payroll processor is complying with the |
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