Looks like insurance startup Zenefits will be able to resume legal operations in the state of Utah. Both the Utah House and Senate have overwhelmingly passed H.B. 141(24-0 in the Senate and 69 to 2 in the Utah House of Representatives).
Utah Insurance Commissioner Todd Kiser (a former insurance broker) had ordered Zenefits to cease offering free HR services in the state in November, 2014. The Utah Department of Insurance backed the commissioner, claiming the startup violated the state’s anti-rebating statute.
That put Utah in the national spotlight as the only state to have a problem with a tech company offering free HR services to local companies. State politicians have since stepped in to help clarify what is meant in the state anti-rebate laws.
“The spirit of the law is not in line with the purpose of the language around insurance inducements in Utah,” Utah House Representative John Knotwell told TechCrunch in an earlier interview over the matter.
H.B. 141 now moves on to Utah Governor Gary Herbert for his signature. Governor Herbert has previously expressed his support for the bill.
Should the governor add his signature, Zenefits will be able to resume accepting new customers in Utah for the first time since the Utah Insurance Department imposed its ban on Zenefits last November.