The Board proposes the rule amendment to address the requirements for quarterly reporting of financial statements.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Board of Employee Leasing Companies

RULE NO.: RULE TITLE:
61G7-10.001: Quarterly Reporting Regarding Working Capital Requirements
PURPOSE AND EFFECT: The Board proposes the rule amendment to address the requirements for quarterly reporting of financial statements.
SUMMARY: The requirements for quarterly reporting of financial statements will be updated.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: During discussion of the economic impact of this rule at its Board meeting, the Board, based upon the expertise and experience of its members, determined that a Statement of Estimated Regulatory Costs (SERC) was not necessary and that the rule will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact at that time.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 468.522, 468.525(3)(d), 468.529(1) FS.
LAW IMPLEMENTED: 468.525(3)(d), 468.529(1) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Richard Morrison, Executive Director, Board of Employee Leasing Companies, 1940 North Monroe Street, Tallahassee, Florida 32399-0783.

THE FULL TEXT OF THE PROPOSED RULE IS:

61G7-10.001 Examination of Financial Records; Verification of Compliance Quarterly Reporting Regarding Working Capital Requirements.

(1) In accordance with Sections 468.525(3)(d) and 468.535, F.S., the department may make investigations, audits or reviews of each individual or company licensed pursuant to Section 468.526(1), F.S., to determine whether it has violated or is in danger of violating chapter 468, Part XI; chapter 455; or any rule of the board or department. An examination of each company’s balance sheet and income statement will be made each quarter to verify positive working capital and accounting net worth. In order to determine that each employee leasing company has maintained net worth and positive working capital, each employee leasing company shall submit a balance sheet and income statement every quarter to the department for verification. Each employee leasing company shall also submit a statement to the Board of Employee Leasing Companies affirming that it is in compliance with Section 468.529(4), F.S., in that it has adequate reserves to pay, when due, all payroll and payroll-related taxes, workers’ compensation and health related premiums, and amounts due under any plan of self insurance. This statement shall be made on Form DBPR EL 4504, “Quarterly Report Form,” effective 5/2011, which is hereby incorporated by reference and available at http://www.myfloridalicense.com/dbpr/pro/emplo/forms.html, and filed with a copy of the company’s workers’ compensation certificate of insurance in effect for the current quarter. All required submissions shall be made in furtherance of a licensure renewal application and shall be submitted to the department within 75 days of the end of each calendar quarter.

(2) In furtherance of its verifications of compliance, investigations, audits or reviews under Section 468.535, F.S., the department may, as frequently as deemed necessary, request applicable compliance information from licensees. Failure to respond to the department’s request for information shall constitute grounds for disciplinary action.

(3) Providing false or misleading information to the department shall constitute grounds for disciplinary action.

(4) An employee leasing company may satisfy the requirements of this rule by being accredited in good standing by the Employer Services Assurance Corporation (ESAC).

Each employee leasing company shall submit, not later than 75 days after the end of each calendar quarter, a statement to the Board of Employee Leasing Companies affirming that it is in compliance with Section 468.525(3)(d), F.S., in that it is maintaining positive working capital and accounting net worth, and has adequate reserves to pay, when due, all payroll taxes, workers’ compensation and health insurance premiums, and amounts due under any plan of self-insurance or partial self-insurance. This statement shall be made on Form DBPR EL 4504 entitled “Quarterly Report Form,” effective 03-18-04, which shall be filed with a copy of the company’s workers’ compensation certificate of insurance in effect for the current quarter including confirmation from the insurance carrier that the Board will receive at least 30-days notification of cancellation of such insurance, and the company’s balance sheet and income statement for the quarter. The employee leasing company may utilize the guaranty method set forth in Rule 61G7-5.005, F.A.C., to offset any deficiency. The form, together with its instructions, are incorporated herein by reference and may be obtained by contacting the Board’s office at 1940 North Monroe Street, Tallahassee, Florida 32399-0767; or its Website at www.myflorida.com. An employee leasing company may satisfy the requirements of this rule by submitting a certified true copy of its current National Associate of Professional Employer Organizations quarterly report and copies of its balance sheet and income statement for the quarter.

Rulemaking Specific Authority 468.522, 468.525(3)(d), 468.529(4) 468.529(1) FS. Law Implemented 468.525(3)(d), 468.529(4), 468.535 468.529(1) FS. History–New 8-12-92, Amended 6-1-93, Formerly 21EE-10.001, Amended 5-8-94, 12-19-94, 3-1-05,    .

NAME OF PERSON ORIGINATING PROPOSED RULE: Board of Employee Leasing Companies
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Board of Employee Leasing Companies
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 19, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: June 29, 2012