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Legislator Introduces Bill to Fix Zenefit's Regulatory Issues

A Utah legislator is proposing a bill that would help fix the regulatory problems facing online HR company Zenefits.

Republican Representative John Knotwell of Herriman says his legislation would clarify rules regarding health insurance brokers and inducements.  Late last year the Utah Department of Insurance sent a letter to the San Francisco based Zenefits, informing them that they were in violation of the anti-inducement law because they offer some free services. But Knotwell believes that ruling violates the spirit of the law.

“So the motivation really stems from a desire that Utah’s brand out in the market as the best place to do business continues to remain relatively untarnished,” he says.

Zenefits CEO Parker Conrad was in Utah on Friday speaking to a group of entrepreneurs at the StartSLC festival. While he was here he spoke to a number of people on Capitol Hill, including Senator Curt Bramble, and Lt. Governor Spencer Cox. He says if the legislature is able to do something to help his company out, he’ll be very impressed.

“It’s really great that there are so many folks in the government who are supportive of this issue, and sort of understand, you know, the perspective on this that you need to sort of let tech companies operate even when they’re somewhat disruptive," he says. "But not everyone sees it that way. You know, it’s not entirely clear yet how this will all shake out.”

Conrad also says they don’t expect the Department of Insurance to take any official action against Zenefits until after the legislative session ends in March. 

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