The Board proposes the rule amendment to update requirements regarding the use of consolidated and combined financial statements and to incorporate the Cross Guarantee Form.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Board of Employee Leasing Companies

RULE NO.:RULE TITLE:

61G7-5.0033Consolidated and Combined Financial Statements

PURPOSE AND EFFECT: The Board proposes the rule amendment to update requirements regarding the use of consolidated and combined financial statements and to incorporate the Cross Guarantee Form.

SUMMARY: Requirements regarding the use of consolidated and combined financial statements will be updated and to incorporate the Cross Guarantee Form.

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, 468.523(3)(e) FS.

LAW IMPLEMENTED: 468.525(3)(e) 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:

 

61G7-5.0033 Consolidated and Combined Financial Statements.

(1) through (3) No change.

(4) A Florida-licensed employee leasing company, employee leasing company group, employee leasing company groups, or any combination thereof, may submit combined audited or reviewed financial statements to meet the requirements of Section 468.525(3)(e), F.S. as applicable, so long as the combined financial statements are prepared in accordance with GAAP, as referenced above,  there is accounting net worth and positive working capital demonstrated in the combined financial statements, and there are Board-approved cross-guarantees among between all employee leasing companies and all entities covered in the combined financial statements. Non-Florida are Florida-licensed employee leasing companies and other entities may be included in the combined financial statements as long they are under common control and their operations are integral to the operations of the Florida-licensed employee leasing company, companies, group or groups, or are integral to the operations of a Non-Florida employee leasing company, companies, group, or groups.. Other entities may not be included in combined financial statements. The notes to the combined financial statements must describe the ownership or management control relationships, and the nature and scope of the operations of each entity included in the combined financial statements, to clearly demonstrate that the operations of all included entities are integral to the operations of employee leasing business.

(5) Cross guarantees must be submitted, either at the time of initial application for licensure or as part of any consolidated or combined financial statement submissions, using Form EL-4518, entitled “Cross Guarantee Form,” which is incorporated by reference herein, effective April, 2015,  and available at http://www.flrules.org/gateway/reference.asp?No=Ref- or at http://www.myfloridalicense.com/dbpr/pro/emplo/documents/el-4518_enterable.pdf.

Rulemaking Authority 468.522, 468.525(3)(e) FS. Law Implemented 468.525(3)(e) FS. History-New 5-26-96, Amended 9-5-04, 11-9-06, 8-1-11,                            .

 

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: April 15, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: December 24, 2014