The Board proposes the rule amendment to update the application procedure and forms.

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Board of Employee Leasing Companies

RULE NO.: RULE TITLE:
61G7-5.001: Application Procedure; Application Form; Fees; Confidential Information; Denial of Application; Request for Hearing

PURPOSE AND EFFECT: The Board proposes the rule amendment to update the application procedure and forms.

SUMMARY: Application procedure and forms will be updated.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COST AND LEGISLATIVE RATIFICATION:

During discussion of the economic impact of the rule at its Board meeting, the Board, based upon the expertise and experience of its members determined that a Statement of Estimated Regulatory Cost (SERC) was necessary, but determined that the rule amendment will not require ratification by the Legislature. The Board has determined that the rule will not have an adverse impact on small business, or likely increase regulatory costs in excess of $200,000 in the aggregate within 1 year after implementation of the rule. No person or interested party submitted additional information regarding the economic impact at that time.

Any person who wishes to provide information regarding the statement of estimated costs, or to provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

A copy of the Statement of Estimated Regulatory Cost is available by contacting Richard Morrison, Executive Director, at the address listed below. The following is a summary of the SERC:

(1) Approximately 84 new applicants and 476 existing licensees will be required to comply with the rule. (2) The overall additional cost of the application process will be $14.00, for an additional total of approximately $7,840.00 for the 84 new applicants and the 476 existing licensed Employee Leasing Companies. (3) No cost to the department for implementing the proposed rule. (4) No cost to any other state and local government entities for implementing the proposed rule. (5) No small county or small city will be impacted by the proposed rule.

RULEMAKING AUTHORITY: 120.53(1), 455.2281, 468.522, 468.5245, 468.5275 FS.
LAW IMPLEMENTED: 468.524, 468.5245, 468.525, 468.526, 468.527, 468.5275, 468.529 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAW.

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:

61G7-5.001 Application Procedure; Application Form; Fees; Confidential Information; Denial of Application; Request for Hearing.

(1)(a) Applicants for licensure as an employee leasing company or as a controlling person shall file a completed application on form Form DBPR EL 4501, “Application for Licensure as an Employee Leasing Company,” effective May 20, 2011 March 18, 2004 and/or Form DBPR EL 4510, “Application for Licensure as an Employee Leasing Company Controlling Person,” effective March 18, 2004. The forms, together with their attached instructions for completing the application forms, are incorporated herein by reference and may be obtained from the Board’s office at 1940 North Monroe Street, Tallahassee, Florida 32399-0750 or from its Website located at www.myflorida.com. This form references and, where applicable, requires the completion and submission of the following additional forms:

1. DBPR 0020-1, “Master Organization Application,” effective May, 2011;

2. DBPR EL-4510, “Application for Licensure as an Employee Leasing Company Controlling Person,” effective May 20, 2011.

3. DBPR EL-4512, “Historical Sketch,” effective May, 2011.

4. DBPR EL-4518. “Cross Guarantee Form” effective May, 2011.

5. DBPR EL-4520. “Workers’ Compensation and Release Authorization,” effective May, 2011.

6. DBPR EL-4521, “Unemployment Compensation and Payroll Tax Certification,” effective May, 2011.

7. DBPR EL-4507, “Health Insurance Statement,” effective May, 2011.

8. DBPR EL-4522, “Quarterly Compliance Form,” effective May, 2011.

9. DBPR-0050-1, “Explanatory Information for Background Questions,” effective May, 2011; and

10.DBPR-0060-1, “General Explanatory Description,” effective May, 2011.

(b) All forms referenced above, together with the instructions for completing them, are incorporated herein by reference and may be obtained from the Board’s office at 1940 North Monroe Street, Tallahassee, Florida 32399-0750 or from its Website located at www.myflorida.com/dbpr/pro/emplo/forms.html. Applicants shall cure all deficiencies in their application noted by the board within 90 days from the date of the letter notifying the applicant or the application will be denied as an incomplete application. For purposes of this rule, an application is complete when all items on the application form have been fully answered, the applicant has paid the application fee specified in subsection (2), and has submitted all attendant documentation, certifications, electronic fingerprints through the Department’s vendor fingerprint cards, explanations of answers, and other items specified in the form and its attached instructions. An application for licensure as an employee leasing company or group will not be deemed complete until both the controlling person(s) and employee leasing company parts are complete.

(2) The application fee shall be $250 for each employee leasing company applicants, $106.75 150 for each controlling person applicants, $250 for each change of ownership applicants, and registration fees for de minimus operations of $250 for a single employee leasing company and $500 for a de minimus an employee leasing company group.

(3) License fees shall be assessed as follows:

(a) For initial licensure applications to be effective in the first year of the biennium:

1. $600.00 1,000 for each controlling person;

2. $900.00 1,500 for each employee leasing company;

3. $1,500 2,500 for each employee leasing company group.

(b) For initial licensure applications to be effective in the second year of the biennium:

1. $300 500 for each controlling person;

2. $450 750 for each employee leasing company;

3. $750 1,250 for each employee leasing company group.

(c) For renewal licensure applications:

1. $600 1,000 for each controlling person;

2. $900 1,500 for each employee leasing company;

3. $1,500 2,500 for each employee leasing company group.

(d) For purposes of this rule the first year of the biennium shall end on April 30 of every odd even-numbered year.

(e) through (f) No change.

(4) through (5) No change.

(6) In determining that an applicant meets the licensure requirements in Section 468.525, F.S., the Board must find that the applicant:

(a) In the case of an individual applying for licensure as a controlling person:

1. through 3. No change.

4. Notwithstanding the foregoing, an applicant shall not be deemed to meet the requirements of Section 468.525(1)(c), F.S., if the applicant has been affiliated directly or indirectly with any person, persons or entities (not only an employee leasing company) whose business operations are being or have been operated in a manner detrimental to clients, employees, governmental agencies, investors or creditors through the improper manipulation of assets or accounts. The foregoing shall apply only if the applicant would have been considered a “controlling person” of any such entity as that term is defined in Section 468.520(7), F.S. “Business operations which are deemed to be detrimental to clients, employees, governmental agencies, investors or creditors” shall mean a history, pattern or significant incidence of the following:

a. through f. No change.

5. If any person applying for licensure as a controlling person, pursuant to Section 468.525, F.S., has engaged in the activities set forth in sub-subparagraphs 4.a. through f. above, this shall not be deemed to be an automatic bar to licensure. In determining whether to approve an applicant for licensure in spite of such activities, the Board shall consider the following factors:

a. through e. No change.

6. Any controlling person’s license approved by the board shall exist only in conjunction with a license granted to an employee leasing company. When any controlling person ceases to meet the statutory and rule criteria to be a controlling person then the controlling person’s license shall expire and become null and void. If a controlling person notifies the Department within ninety (90) days of the event which ends the individual’s status as a controlling person that the individual is going to become a controlling person with another employee leasing company then a new controlling person license will be issued upon payment of a $5.00 transfer application fee and written notification to the Department from all employee leasing companies involved. For such an application only, the background checks required of all initial controlling person applicants shall be waived insofar as the information would be available from the previous licensure file.

(b) In the case of a sole proprietorship, partnership, corporation, or other form of business entity applying for licensure as an employee leasing company:

1. through 4. No change.

5. Has provided with the application a certificate of workers’ compensation insurance coverage which shall name the Board as a Certificate Holder and shall provide for a minimum of 30 days’ notification of cancellation or if a policy from the Florida Workers’ Compensation Joint Underwriting Underwriters Association (FWCJUA JUA) or from any carrier authorized by the Florida Office of Insurance Regulation is to be utilized by the applicant, the applicant has provided a letter from the FWCJUA or other authorized carrier JUA which sets forth that the policy will issue immediately upon licensure by the Board, and the policy issues from the JUA within thirty (30) days of the FWCJUA or other authorized carrier’s JUA notification from the Board that the applicant has been approved subject to the JUA policy issuing. The employee leasing company may not contract to provide any services to leased employees until the JUA policy has issued.

6.a. Has provided with the application a valid certificate of workers’ compensation insurance coverage, pursuant to Rule 61G7-10.0014, F.A.C., for all copies of the declaration pages and all endorsements on all plans for worker’s compensation insurance covering leased employees. Notice of any changes in these insurance plans shall be submitted to the Department in writing along with the new certificate of workers’ compensation insurance coverage copies of any policies, declaration pages and endorsements within sixty (60) days; or

b. Has supplied the Board a letter signed by an agent or a carrier authorized to bind coverage on behalf of such carrier, which substantially reads as follows:

Board of Employee Leasing Companies

Division of Business and Professional Regulation

Northwood Centre

1940 North Monroe Street

Tallahassee, Florida 32399

RE:__________________

Dear_________________:

Enclosed is a copy of the Certificate of Liability Insurance for ___________.__________ is an authorized agent and has the authority to bind coverage with ___________. This policy number is________, effective from __________ to ________ and issued to________. This policy provides coverage to leased employees in Florida.

7.a. With regard to all plans of group insurance for the provision of health benefits to leased employees, has Has provided the Board a signed statement that is substantially in the form set forth in paragraph 61G7-5.001(12)(b), F.A.C. with the application copies of the policies, declaration pages and all endorsements on all plans or arrangements of group insurance for the provision of health benefits to leased employees. Notice of any changes in these insurance plans shall be submitted to the Department in writing along with copies of any policies, declaration pages and endorsements within sixty (60) days; or An additional signed statement shall be submitted to the Board within (60) days of any material change in any such plan offered to leased employees.

b. Has supplied the Board the affidavit set forth in paragraph 61G7-5.001(12)(b), F.A.C.

(7) No change.

(8) If the Board determines that an applicant is not qualified for licensure it shall notify the applicant of its intent to deny the applicant’s application, which notice shall become a final order of the Board after 21 days. Within this 21-day period the applicant may file with the Board’s office a request for formal or informal hearing pursuant to Section 120.57(1) or (2), F.S. A request for formal hearing pursuant to Section 120.57(1), F.S. shall comply with the requirements of Rule 28-106.201 28-5.201, F.A.C.

(9) through (11) No change.

(12)(a) Every employee leasing company or employee leasing company group which sponsors a plan for health benefits for its employees shall submit a complete copy of the plan or health insurance policy to the Board for review to insure compliance with subsection 468.529(1), F.S. In the event that the Board’s review indicates that the submitted plan or policy is a self-insured plan of health benefits, the applicant or licensee shall submit an amended policy in conformity with subsection 468.529(1), F.S.

(b) As an alternative to the submission of the plan or health insurance policy as provided in paragraph (a) the The applicant or licensee, within (60) days of a licensee’s obtaining a plan of group insurance for the provision of health benefits shall may submit a signed statement an affidavit from the insurer showing that the policy or plan is in compliance. Such statement Nothing in this rule shall impose any requirement on any insurer to provide such an affidavit. In the event that an affidavit is submitted, it shall be in substantially the following form:

AFFIDAVIT

I, (name of signatory), after being duly sworn upon my oath, depose and state:

1. I am employed by (name of employer) as (position). (Name of employer), is an admitted insurance carrier in the State of Florida. I possess the authority to make the following statements on behalf of (name of employer) and to bind (name of employer) concerning the statements made herein.

2. It is my understanding that, as a requirement for licensure as an employee leasing company in Florida, an employee leasing company may not sponsor a plan of self-insurance for health benefits except as may be permitted by the provisions of the Florida Insurance Code or, if applicable, by Pub. L. No. 93-406, the Employees Retirement Income Security Act. (name of insurer) Group Insurance Policy # issued to (name of leasing company), is in compliance with the requirements of this law as it is a fully insured insurance product which is fully insured by (name of insurer). Notwithstanding any provision in the policy which could be interpreted to the contrary (name of insurer) is ultimately fully responsible for all incurred claims under the terms of the policy.

After having read the above statements, I state swear that they are true and correct to the best of my knowledge and belief.

FURTHER AFFIANT SAYETH NAUGHT.

Subscribed to before me this _______ day of ___________, 20___, by, who being known to me/ produced written identification in the form of _____________, and did take an oath.

____________________

Notary Public

My Commission Expires __________

Rulemaking Specific Authority 120.53(1), 455.2281, 468.522, 468.524, 468.5245, 468.5275 FS. Law Implemented 455.213(11), 455.2281, 468.524, 468.5245, 468.525, 468.526, 468.527, 468.5275, 468.529 FS. History–New 5-5-92, Amended 7-15-92, 10-20-92, Formerly 21EE-5.001, Amended 10-24-93, 3-14-94, 7-4-94, 9-8-94, 11-13-94, 2-13-95, 6-4-95, 11-9-95, 5-26-96, 5-19-97, 4-29-99, 9-5-04,_________.

 

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 21, 2011

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: October 21, 2011