The Board proposes the rule amendment to clarify the process and fee due when an employee leasing company experiences a change in ownership that creates a material change in information required for board review, either for original licensure or ...  

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    DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
    Board of Employee Leasing Companies

    RULE NO.:RULE TITLE:
    61G7-10.002Reporting of Change of Status Required; Effect on Licensees; Change of Licensee Name
    PURPOSE AND EFFECT: The Board proposes the rule amendment to clarify the process and fee due when an employee leasing company experiences a change in ownership that creates a material change in information required for board review, either for original licensure or pursuant to Section 468.5245, F.S.
    SUMMARY: The process and fee due when an employee leasing company experiences a change in ownership that creates a material change in information required for board review, either for original licensure or pursuant to Section 468.5245, F.S. will be clarified.
    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: 455.201(2), 468.522, 468.524(2), 468.525(3), 468.526, 468.530(3), 468.531, 455.201(2) FS.
    LAW IMPLEMENTED: 468.524(2), 468.525(3), 468.526, 468.530(3), 468.531 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:

    61G7-10.002 Reporting of Change of Status Required; Effect on Licensees; Change of Licensee Name.

    (1) To enable the Board and the Department to enforce more effectively the prohibition against the unlicensed practice of employee leasing, contained in Section 468.526, F.S., and to enforce other provisions of Part XI of Chapter 468, F.S., licensees shall apply for approval or notify the Board in writing, as appropriate, if the licensee experiences any changes in status listed in subsection (2). Forms DBPR ELC 6 and 7, effective 11/12 entitled Application for Certificate of Approval for/Notification of Change of Ownership (Asset Purchase) and  Application for Certificate of Approval for/Notification of Change of Ownership (Stock Purchase), respectively, are hereby incorporated by reference and available at www.myfloridalicense.com/dbpr/pro/emplo/forms.html.

    (2) Licensees experiencing a change in status listed below in the left column shall file or do what is listed in the corresponding right column:

    CHANGE IN STATUS

    NEEDED ACTION BY COMPANY,

     

    GROUP, OR CONTROLLING PERSON

    (a) through (c) No change.

     

    (d) Purchase or acquisition of control  in which purchasing employee leasing company maintains licensed controlling person from either the purchasing or purchased employee leasing company 

    Sale or transfer of company stock which causes a change in controlling person(s) or other changes in the information contained in the original application

    Within 30 days of purchase or acquisition of control,  Form DBPR EL 4510, entitled Application for Licensure As An Employee Leasing Company Controlling Person, effective 03-18-04 and DBPR ELC 6 EL 4511, entitled Application for Certificate of Approval for/Notification of Change of Ownership (Asset Purchase) or DBPR ELC 7, entitled Application for Certificate of Approval for/Notification of Change of Ownership (Stock Purchase), as appropriate. effective 03-18-04, where applicable. The above forms are incorporated by reference and available from the Board office or from the website at www.myflorida.com. Where applicable, Form DBPR ELC 1, entitled Application for Licensure as an Employee Leasing Company Controlling Person and Form DBPR 4512, entitled Historical Sketch.

     

     

    (e)  Purchase or acquisition of control  in which purchasing employee leasing company does not maintain licensed controlling person from either the purchasing or purchased employee leasing company. Sale or transfer of company stock.

     

     

     

     

     

     

     

    (f) Sale or transfer of a majority of business assets

    Prior to the purchase or acquisition of control, DBPR ELC 6, entitled Application for Certificate of Approval for/Notification of  Change of Ownership (Asset Purchase) or DBPR ELC 7, entitled Application for Certificate of Approval for/Notification of Change of Ownership (Stock Purchase), as appropriate, Change of Ownership  application EL 4511, which causes a change in control and, where applicable, Form DBPR ELC 1, entitled Application for Licensure as an Employee Leasing Company Controlling Person controlling person license application for each new controlling person, DBPR EL 4510, and Form DBPR 4512, entitled Historical Sketch form, DBPR EL 4512, where applicable.

     

    Application for Certificate of Approval for Change of Ownership EL-4511, new company application if buyer not already licensed, and fee from buyer – old license does not transfer but remains with seller; unless already licensed, new controlling person license application and fee for each new controlling person.

    (f)(g) No change.

     

    (g)(h) No change.

     

    (h)(i) Controlling person resigns from Company A and is employed by Company B as controlling person

    notification to Board from Company A and controlling person; notification to Board from Company B regarding new controlling person no new application or fee needed from controlling person license goes with controlling person; $5 transfer fee from controlling person.

     

    (3) The notification required in subsection (1) shall be submitted to the executive director by certified mail within 14 days of a change in a licensee’s status. Within 30 days of a change in its status, the licensee, or other entity resulting from such change or both, shall submit new applications, new financial or other information, and new or additional fees to the Board’s office as needed to comply with Part XI of Chapter 468, F.S., and the rules of this Board, by any form of mail that provides the sender with delivery confirmation.

    (4) through (5) No change.

    (6) In the event of a change in status of controlling person pursuant to paragraph (2) (g)(h) or (h)(i), as outlined above, the controlling person and all employee leasing companies involved the company to which the controlling person has moved shall submit notifications to the Board of the acceptance of the controlling person’s transfer., along with a $25 fee for the change of company name on the individual’s license.

    (7) No change.

    (8) In the event of a purchase or acquisition of control pursuant to paragraphs (2)(d) or (e), above, the controlling persons in the purchased employee leasing company  must demonstrate that workers compensation coverage is/was in effect during the purchase or acquisition of control and at all time subsequent thereto for the employees of the entity purchased or overwhich control was acquired by providing a certificate of coverage from an insurance carrier that is admitted in the State of Florida naming the new owner or owners as the insured.

    Rulemaking Specific Authority 455.201(2), 468.522, 468.524(2), 468.525(3), 468.526, 468.530(3), 468.531, 455.201(2) FS. Law Implemented 468.524(2), 468.525(3), 468.526, 468.530(3), 468.531 FS. History–New 1-27-93, Amended 5-20-93, Formerly 21EE-10.002, Amended 10-24-93, 8-17-94, 11-9-95, 5-21-96, 11-24-96, 3-18-97, 3-1-05, 10-23-05, 12-31-06,________.


    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: February 20, 2013
    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 27, 2012

Document Information

Comments Open:
3/6/2013
Summary:
The process and fee due when an employee leasing company experiences a change in ownership that creates a material change in information required for board review, either for original licensure or pursuant to Section 468.5245, F.S. will be clarified.
Purpose:
The Board proposes the rule amendment to clarify the process and fee due when an employee leasing company experiences a change in ownership that creates a material change in information required for board review, either for original licensure or pursuant to Section 468.5245, F.S.
Rulemaking Authority:
455.201(2), 468.522, 468.524(2), 468.525(3), 468.526, 468.530(3), 468.531, 455.201(2) FS.
Law:
468.524(2), 468.525(3), 468.526, 468.530(3), 468.531FS.
Contact:
Richard Morrison, Executive Director, Board of Employee Leasing Companies, 1940 North Monroe Street, Tallahassee, Florida 32399-0783.
Related Rules: (1)
61G7-10.002. Reporting of Change of Status Required; Effect on Licensees; Change of Licensee Name