The purpose of the amendment to the rule is to revise guidelines which relate to an employer’s submission to the Department of a Notice of Election to be Exempt, a Notice of Election of Coverage, and the subsequent issuance, denial, revocation, and ...

DEPARTMENT OF FINANCIAL SERVICES
Divsion of Worker's Compensation

RULE NO: RULE TITLE
69L-6.012: Notice of Election to be Exempt
PURPOSE AND EFFECT: The purpose of the amendment to the rule is to revise guidelines which relate to an employer’s submission to the Department of a Notice of Election to be Exempt, a Notice of Election of Coverage, and the subsequent issuance, denial, revocation, and maintenance of a Certificate of Election to be Exempt. The amendment also deletes language and provisions no longer applicable as a result of changes to Chapter 205, F.S. The effect of the rule amendment is promote compliance by those employers applying for exemptions from the coverage requirements of Chapter 440, Florida Statutes by providing them with updated guidelines regarding the process.
SUBJECT AREA TO BE ADDRESSED: Guidelines for employers regarding the submission of a Notice of Election to be Exempt.
SPECIFIC AUTHORITY: 440.05(9), 440.591 FS.
LAW IMPLEMENTED: 440.02(15), 440.05 FS.
A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: Tuesday, August 28, 2007, 2:00 p.m.
PLACE: Room 104J, Hartman, Capital Circle S. E., Tallahassee, Florida
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Andrew Sabolic, Assistant Division Director, Division of Workers’ Compensation, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-4229, [phone]

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:

69L-6.012 Notice of Election to be Exempt.

(1)(a) Only corporate officers of non-dissolved or active corporations who meet the conditions for the issuance of valid Certificates of Election to be Exempt as stated in Chapter 440, F.S., and implemented by this rule may file a Notice of Election to be Exempt (DWC 250), as incorporated by reference in Rule 69L-6.009, F.A.C. Only a business entity organized under Chapter 607 or 617, F.S., will qualify as a corporation for purposes of issuing a Certificate of Election to be Exempt (DWC 252), as incorporated by reference in Rule 69L-6.009, F.A.C., to a corporate officer under this rule. While a limited liability company created and approved under Chapter 608, F.S., is not a corporation for purposes of Chapter 440, F.S., persons engaged in the construction industry who are limited liability company members owning at least ten percent (10%) of the non-dissolved or active limited liability company qualify as a “corporate officer” and are eligible for the issuance of a Certificate of Election to be Exempt under this rule.

(b) The Department shall deny any Notice of Election to be Exempt filed by a corporate officer of a dissolved or inactive corporation or limited liability company. A new Notice of Election to be Exempt (DWC-250), as adopted in Rule 69L-6.009, must be filed by the corporate officer, and if the corporate officer is engaged in the construction industry, another $50.00 fee must be submitted with the Notice of Election to be Exempt.

(2) Any corporate officer engaged in the construction or non-construction industry, who elects to be exempt from the provisions of the workers’ compensation law (Chapter 440, F.S.), shall file with the Department a Notice of Election to be Exempt (DWC-250). For purposes of this rule, an applicant is engaged in the “construction industry” when any portion of the applicant’s business operations is described in the construction industry classification codes that are identified in Rule 69L-6.021, F.A.C.

(3) For a corporate officer engaged in the construction industry, the applicant shall attach to or, where appropriate, list on every Notice of Election to be Exempt (DWC-250) the following:

(a) A copy of an occupational license required by the jurisdiction in the state of Florida in which the business is located or has employees engaged in work, or a copy of the occupational license receipt that includes the occupational license number issued by the jurisdiction in the state of Florida in which the business is located or has employees engaged in work. If the applicant’s business address, as listed on the Notice of Election to be Exempt, is outside the state of Florida, a copy of the occupational license issued by the jurisdiction outside the state of Florida in which the applicant’s business is located is required, unless an occupational license is not required by the jurisdiction in which the applicant’s business is located;

1. If the applicant is required to obtain a license issued pursuant to Chapter 489, F.S., the business name listed on the occupational license or occupational license receipt must match the name of the corporation or limited liability company listed on the Notice of Election to Be Exempt;

2. If the applicant is not required to obtain a license issued pursuant to Chapter 489, F.S., the business name listed on the occupational license or occupational license receipt must match the name of the corporation, limited liability company, or business listed on the Notice of Election to Be Exempt;

(a)(b) The certified or registered license numbers held by the applicant issued pursuant to Chapter 489, F.S.; or the certified or registered license numbers held by the qualifier for the business listed on the Notice of Election to be Exempt (DWC-250) of which the applicant is a corporate officer; if the applicant is required to obtain a license issued pursuant to Chapter 489, F.S., the business name listed on the license must match the name of the corporation or limited liability company listed on the Notice of Election to be Exempt.

(b)(c) The Federal Employer Identification Number issued to the corporation or limited liability company, as applicable;

(c)(d) The Social Security Number or the individual taxpayer identification number of the applicant;

(d)(e) The Florida Department of State, Division of Corporations, registration number of the corporation or limited liability company, as applicable, named on the Notice of Election to be Exempt;

(e)(f) For corporate officers of a corporation, a copy of the stock certificate(s) issued to the applicant by the corporation named on the Notice of Election to be Exempt evidencing at least ten percent (10%) ownership of the named corporation by the applicant on the date that the Notice of Election to be Exempt is filed with the Ddepartment;

1. The percent of ownership shall be calculated by dividing the number of shares issued to the applicant by the total number of shares issued by the corporation named on the stock certificate(s);

2. In addition to the ownership requirement in paragraph (3)(e)(f), the copy of the stock certificate(s) shall state, at a minimum, the name of the issuing corporation, the state in which the corporation is organized, and the name of the person to whom the stock is issued. All stock certificate(s) must be signed by an officer or officers designated to do so in the bylaws or designated to do so by the board of directors;

(f)(g) For members of a limited liability company, documentation establishing the number of units of membership, or a notarized statement reflecting that the applicant owns at least ten percent (10%) of the limited liability company named on the Notice of Election to be Exempt on the date that the Notice of Election to be Exempt is filed with the Department;

(g)(h) The business(es) or trade(s) of the applicant;

(h)(i) The applicant’s corporate officer title or member status;

(i)(j) The corporate name, Florida Department of State, Division of Corporations, registration number, and Federal Employer Identification Number of any other corporation(s) that is under the same or substantially the same ownership or control as the corporation named on the Notice of Election to be Exempt;

(j)(k) The name of the corporation or limited liability company as registered with the Florida Department of State, Division of Corporations of which the applicant is a corporate officer or member;.

(k) The applicant’s address of record.

(4) An applicant engaged in the construction industry must submit a $50.00 fee with each Notice of Election to be Exempt (DWC 250) that is filed with the Ddepartment. If an applicant’s payment is returned to the Ddepartment for non-sufficient funds, the Notice of Election to be Exempt is invalid and shall be denied. If a Certificate of Election to be Exempt (DWC 252) was issued to the applicant and the applicant’s payment was returned to the Department for non-sufficient funds, the Certificate of Election to be Exempt shall be revoked. In order for the Ddepartment to process a new Notice of Election to be Exempt from an applicant who has had a payment returned for non-sufficient funds, the Ddepartment must receive confirmation that the initial $50.00 payment and any associated service charge has been deposited into the Workers’ Compensation Administration Trust Fund.

(5) For Notices of Election to be Exempt by a corporate officer or an officer of a corporation, as defined in Section 440.02(9), F.S., if the applicant is in the construction industry and the Department’s records show three active Certificates of Election to be Exempt issued to corporate officers of a corporation or business entity or of any group of affiliated corporations or business entities, the Department shall deny any Notice of Election to be Exempt (DWC 250) that would result in more than three corporate officers having active Certificates of Election to be Exempt for a corporation or business entity or any group of affiliated corporations or business entities.

(6) For a corporate officer not engaged in the construction industry, the applicant shall attach to or, where applicable, list on every Notice of Election to be Exempt (DWC-250) the following:

(a) A copy of an occupational license required by the jurisdiction in which the business is located or has employees engaged in work, or a copy of the occupational license receipt that includes the occupational license number issued by the jurisdiction in the state of Florida in which the business is located or has employees engaged in work. If the applicant’s business address, as listed on the Notice of Election to be Exempt, is outside the state of Florida, a copy of the occupational license issued by the jurisdiction outside the state of Florida in which the applicant’s business is located is required, unless an occupational license is not required by the jurisdiction in which the applicant’s business is located; The name of the corporation, limited liability company, or business listed on the Notice of Election to be Exempt must match the business name listed on the occupational license or on the occupational license receipt;

(a)(b) The Federal Employer Identification Number issued to the corporation;

(b)(c) The Social Security Number or the individual taxpayer identification number of the applicant;

(c)(d) The Florida Department of State, Division of Corporations, registration number of the corporation named on the Notice of Election to be Exempt;

(d)(e) The applicant’s corporate officer title; and

(e)(f) The corporate name, Florida Department of State, Division of Corporations, registration number, and Federal Employer Identification Number of any other corporation(s) in which the applicant has an ownership interest or serves as a corporate officer;

(f)(g) The name of the corporation as registered with the Florida Department of State, Division of Corporations of which the applicant is a corporate officer:.

(g) The business(es) or trade(s) of the applicant;

(h) The applicant’s address of record.

(7) Incomplete Notices of Election to be Exempt, Issue Dates for Certificates of Election to be Exempt.

(a) An applicant shall have thirty days from the date his/her Notice of Election to be Exempt (DWC 250) is mailed or otherwise returned by the Department to the applicant as incomplete in which to file documentation or information which completes the Notice of Election to be Exempt, at which time the Notice of Election to be Exempt shall be processed without any additional processing fee. The Ddepartment shall deny the Notice of Election to be Exempt if the applicant fails to file with the Ddepartment the documentation or information to complete the Notice of Election to be Exempt within 30 days of the date the Notice of Election to be Exempt was mailed or returned as incomplete. If the Notice of Election to be Exempt is denied, the applicant must submit a new Notice of Election to be Exempt and, if the applicant is engaged in the construction industry, another $50.00 fee is required.

(b) If the Ddepartment receives a renewal Notice of Election to be Exempt that meets the eligibility requirements of Section 440.05, F.S. and this rule more than 90 days prior to the expiration date of the Certificate of Election to be Exempt, the issue date of the new Certificate of Election to be Exempt (DWC 252) is the date the Certificate of Election to be Exempt is approved and saved to the Coverage and Compliance Automated System database of the Ddepartment, and any duplicate Certificate of Election to be Exempt for the applicant of the same business shall be null and void as of the issue date of the new Certificate of Election to be Exempt.

(c) If the Department receives a renewal Notice of Election to be Exempt that meets the eligibility requirements of Section 440.05, F.S. and this rule more than 30 days but 90 days or less prior to the expiration date of the Certificate of Election to be Exempt, the issue date of the renewal Certificate of Election to be Exempt shall be the expiration date of the original Certificate of Election to be Exempt.

(d) Subject to the exceptions listed in Section 440.05(5), F.S., if the Ddepartment receives a renewal Notice of Election to be Exempt that meets the eligibility requirements of Section 440.05, F.S. and this rule 30 days or less prior to the expiration date of the Certificate of Election to be Exempt, the issue date of the renewal Certificate of Election to be Exempt is the date the renewal Certificate of Election to be Exempt is approved and saved to the Coverage and Compliance Automated System database of the Ddepartment, or 30 days after the date the renewal Notice of Election to be Exempt is received by the Ddepartment, whichever is earlier. Any duplicate Certificate of Election to be Exempt for the applicant shall be null and void as of the issue date of the renewal Certificate of Election to be Exempt.

(e) Subject to the exceptions listed in Section 440.05(5), F.S., if the Ddepartment receives a renewal Notice of Election to be Exempt after the expiration date of the Certificate of Election to be Exempt, the issue date of the renewal Certificate of Election to be Exempt is the date the renewal Certificate of Election to be Exempt is approved and saved to the Coverage and Compliance Automated System database of the Ddepartment, or 30 days after the date the renewal Notice of Election to be Exempt is received by the Ddepartment, whichever is earlier.

(f) Subject to the exceptions listed in Section 440.05(5), F.S., if the Ddepartment receives a new Notice of Election to be Exempt, the issue date of the Certificate of Election to be Exempt is the date the Certificate of Election to be Exempt is approved and saved to the Coverage and Compliance Automated System database of the Ddepartment, or 30 days after the date the Notice of Election to be Exempt is received by the Ddepartment, whichever is earlier. If the Department receives a new Notice of Election to be Exempt that lists a corporate officer that currently has a valid Certification of Election to be Exempt with the same corporation or limited liability company, the issue date of the Certificate of Election to be Exempt is the date the Certificate of Election to be Exempt is approved and saved to the Coverage and Compliance Automated System database of the Department, or 30 days after the date the Notice of Election to be Exempt is received by the Department, whichever is earlier; and the current Certification of Election to be Exempt shall be null and void as of the issue date of the new Certification of Election to be Exempt.

(8) Any Notice of Election to be Exempt (DWC 250) which is returned to the applicant by the Ddepartment within 30 days after receipt by the Department for failure to meet the eligibility requirements of Section 440.05, F.S. and this rule is not “received” for purposes of Section 440.05(5), F.S.

(9) Any corporate officer or member of a limited liability company engaged in the construction industry, or corporate officer engaged in the non-construction industry who has been issued a Certificate of Election to be Exempt (DWC 252), may revoke such certificate by filing with the Department a Revocation of Election to be Exempt (DWC 250-R), as incorporated by reference adopted in Rule 69L-6.009, F.A.C. The issue date of a Revocation of Election to be Exempt is the date the revocation is approved and saved to the Coverage and Compliance Automated System database of the Department, or 30 days after the Revocation of Election to be Exempt is received by the Department, whichever is earlier.

(10) A Revocation of Election to be Exempt (DWC-250-R) shall only be filed by the same person named on the Certificate of Election to be Exempt (DWC 252) or by a corporate officer of the business named on the Certificate of Election to be Exempt and listed as a corporate officer with the Department of State, Division of Corporations.

(11) Payments made to the Ddepartment under this rule shall be in a form made payable to DFS – Workers’ Compensation Administration Trust Fund.

(12) The issue date of a Notice of Election of Coverage (DWC 251), as incorporated by reference in Rule 69L-6.009, F.A.C., is the date it is approved and saved to the Coverage and Compliance Automated System database of the Department, or 30 days after the Notice of Election of Coverage is received by the Department, whichever is earlier.

(13) The issue date of a Revocation of Election of Coverage (DWC 251-R), as incorporated by reference in Rule 69L-6.009, F.A.C., is the date it is approved and saved to the Coverage and Compliance Automated System database of the Department, or 30 days after the Revocation of Election of Coverage is received by the Department, whichever is earlier.

(14) The person named on the Certificate of Election to be Exempt (DWC 252) shall have the duty to notify the Department of any change to the person’s address of record listed on the Certificate of Election to be Exempt, the dissolution or reinstatement of the corporation or limited liability company named on the Certificate of Election to be Exempt, or when the person named on the Certificate of Election to be Exempt is no longer a corporate officer or member of the corporation or limited liablity company listed on the Certificate of Election to be Exempt.

(15) Dissolution of the corporation or limited liability company named on the Certificate of Election to be Exempt (DWC 252) or the person named on the Certificate of Election to be Exempt no longer being a corporate officer or member of the corporation or limited liability company listed on the Certificate of Election to be Exempt will result in initiation of proceedings by the Department to revoke the Certificate of Election to be Exempt.

Specific Authority 440.05(9), 440.591 FS. Law Implemented 440.02(15), 440.05 FS. History–New 5-28-91, Amended 2-15-94, 12-28-97, 2-2-00, 9-6-01, Formerly 38F-6.012, Amended 3-26-03, Formerly 4L-6.012, Amended 4-21-04, 10-30-06,________.