Sec. 1. 10 MRSA §980-D is enacted to read:

§980-D.__Payroll Processor Recovery Fund

The Payroll Processor Recovery Fund, referred to in this section as "the fund," is created.__The fund must be deposited with and maintained by the authority.__The fund must be administered by the Director of the Office of Consumer Credit Regulation within the Department of Professional and Financial Regulation, referred to in this section as "the fund administrator," in accordance with the provisions of chapter 222.__ All money received by the authority from the fund administrator for the purpose of providing a source of recovery for employers injured by a payroll processor's failure to pay taxes or unemployment premiums must be credited to the fund.__A portion of the interest earned on money in the fund may be used to pay the fund maintenance expenses of the authority; the balance must be credited to the fund.__The balance in the fund must revert to the fund administrator if the need for the fund is obviated.

Sec. 2. 10 MRSA §1495, sub-§1-A, as enacted by PL 2003, c. 668, §1 and affected by §12, is amended to read:

1-A. Administrator. "Administrator" means, except in cases in which the payroll processor is a supervised financial organization or a wholly owned subsidiary of a supervised financial organization as defined by Title 9-A, section 1-301, subsection 38-A, the Director of the Office of Consumer Credit Regulation within the Department of Professional and Financial Regulation. In cases in which the payroll processor is a supervised financial organization or a wholly owned subsidiary of a supervised financial organization as defined by Title 9-A, section 1-301, subsection 38-A, "administrator" means the Superintendent of Financial Institutions within the Department of Professional and Financial Regulation. For the purposes of this subsection, "supervised financial organization" has the same meaning as in Title 9-A, section 1-301, subsection 38-A.

Sec. 3. 10 MRSA §1495-E, sub-§2, as amended by PL 2005, c. 278, §4, is further amended to read:

2. Modification of bond requirement. If bonding is unavailable under the terms and conditions of subsection 1, the The administrator, within the administrator's discretion, may modify those terms and conditions specified in subsection 1 or may permit submission of an irrevocable letter of credit or other