It is enacted by the General Assembly as follows:

SECTION 1. Section 5-7-3 of the General Laws in Chapter 5-7 entitled "Employment Agencies" is hereby amended to read as follows:

5-7-3. Bond to payroll and other taxes -- It is unlawful for anyone to establish or keep an intelligence or employment office pursuant to this chapter without giving a bond to the department of labor and training department of administration's division of taxation in the amount of fifty thousand dollars ($50,000) with surety for payroll and other taxes. Any temporary employment service, defined for the purposes of this chapter as an organization that hires its own employees and assigns them to clients to support or supplement the client's work force in work situations including, but not limited to, employee absences, temporary skill shortages, seasonal workloads and special assignments and projects, that have been certified by the division of taxation for at least two (2) years as of July 8, 1997, is exempt from the bonding requirements of this section. The provisions of this section apply only to those employment service organizations that generate a payroll, and do not apply to so called "permanent" employment agencies.

SECTION 2. This act shall take effect upon passage.