An Act Relating to Employee Leasing Company Registration
Maine Legislature, Session 126, LD 1017
Committee: Insurance and Financial Services
Sponsors: VOLK, CLEVELAND
Amends: 32 MRSA §14051, 32 MRSA §14054, 32 MRSA §14055

Legislative Document 
No. 1017 
H.P. 715 
House of Representatives, March 14, 2013 
An Act Relating to Employee Leasing Company Registration 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative VOLK of Scarborough. 
Cosponsored by Senator: CLEVELAND of Androscoggin. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  32 MRSA §14051, sub-§5, as enacted by PL 1991, c. 468, §4, is amended 
to read: 
5.  Superintendent.  "Superintendent" means the Superintendent of Insurance 
Consumer Credit Protection. 
Sec. 2.  32 MRSA §14054, sub-§2, as enacted by PL 1991, c. 468, §4, is repealed 
and the following enacted in its place: 
2.  Treatment of fees.  Fees provided for by this chapter are appropriated for the use 
of the Bureau of Consumer Credit Protection.  Any balance of these funds does not lapse 
but must be carried forward to be expended for the same purpose in the following year. 
Sec. 3.  32 MRSA §14055, sub-§1, ¶B, as amended by PL 1991, c. 885, Pt. E, 
§42 and affected by §47, is further amended to read: 
B.  The superintendent Superintendent of Insurance shall adopt rules governing the 
provision of workers' compensation insurance as required by Title 39-A, chapter 9 for 
workers provided by an employee leasing company to any client company.  These 
rules must be consistent with subsection 2 and reflect consideration of the needs and 
operational efficiencies of employee leasing companies and the costs to the workers' 
compensation system.  If either the employee leasing company or the client company 
has secured the payment of compensation in conformity with former Title 39, chapter 
or Title 39-A, chapter 9, the immunity from liability described in that chapter 
extends to and is binding on the client company, the employee leasing company, all 
employees leased to any client company and any other employees of the employee 
leasing company or the client company.  An employee leasing company is not 
responsible for securing the payment of compensation in conformity with Title 39-A 
nor deprived of the defenses listed in Title 39-A, section 103 with respect to those 
persons for whom the provision of benefits is not required under Title 39-A in the 
absence of an employee leasing arrangement. 
Sec. 4.  32 MRSA §14055, sub-§2, ¶A, as amended by PL 1991, c. 885, Pt. E, 
§43 and affected by §47, is further amended to read: 
A.  Under rules adopted pursuant to subsection 1, paragraph B, the superintendent 
Superintendent of Insurance may provide a determination of the circumstances and 
conditions, if any, under which an employee leasing company may be the 
policyholder of a workers' compensation insurance policy providing coverage to 
employees leased to client companies.  Additionally or alternatively, the 
superintendent Superintendent of Insurance may require by rule that: 
(1)  The employee leasing company purchase separate policies through the Maine 
Employers' Mutual Insurance Company, established pursuant to Title 24-A, 
section 3703, for client companies subject to Title 39-A; and 
(2)  The policies be assigned to one servicing carrier and, to the extent practical, 
administered on a unified basis.  The superintendent Superintendent of Insurance 
also may provide by rule that the employee leasing company or the President of 
the Maine Employers' Mutual Insurance Company request from the 
superintendent Superintendent of Insurance a waiver of a rule adopted pursuant 
to this subparagraph if it is impractical for one servicing carrier to service all the 
client companies of an employee leasing company. 
Sec. 5.  32 MRSA §14055, sub-§5, as amended by PL 1997, c. 29, §2, is further 
amended to read: 
5.  Disclosure.  The employee leasing company shall disclose to client companies 
services to be rendered, including costs, and the respective rights and obligations of the 
parties prior to entering into or receiving a leasing arrangement.  This disclosure must 
include a statement that the client company may take complaints to the Bureau of 
Insurance Consumer Credit Protection. 
SUMMARY 
This bill transfers registration of employee leasing companies from the Department of 
Professional and Financial Regulation, Bureau of Insurance to the Bureau of Consumer 
Credit Protection.  Current rule-making authority regarding workers' compensation 
insurance issued to employee leasing companies is retained by the Superintendent of 
Insurance.  The bill amends the law to direct complaints of client companies with respect 
to employee leasing companies to the Bureau of Consumer Credit Protection.