The Board proposes the rule amendment to incorporate the Cross Guarantee Form, and update the rule regarding names of forms and when they are required.

 

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 incorporate the Cross Guarantee Form, and update the rule regarding names of forms and when they are required.

SUMMARY: Names of forms and when they are required will be updated. The Cross Guarantee form will be incorporated into the rule.

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, 468.524(2), 468.525(3), 468.526, 468.531, 455.201(2) F.S.

LAW IMPLEMENTED: 468.524(2), 468.5245, 468.525(3), 468.526, 468.531 F.S.

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). The following forms/rule are/is hereby incorporated by reference:

(a) DBPR ELC 1, entitled Application for Licensure as an Employee Leasing Company Controlling Person, (as adopted in Rule 61-35.013, F.A.C.), effective 08/13; available at http://www.flrules.org/Gateway/reference.asp?No=Ref-03289.

(b) DBPR ELC 2, entitled Application for Licensure as an Employee Leasing Company, (as adopted in Rule 61-35.013, F.A.C., effective 08/13; available at http://www.flrules.org/gateway/reference.asp?No=Ref-03290.

(c) DBPR ELC 3, entitled Application for Licensure as an Employee Leasing Company Group, (as adopted in Rule 61-35.013, F.A.C., effective 8/13; available at  http://www.flrules.org/Gateway/reference.asp?No=Ref-03291.

(d)(b) DBPR ELC 6, entitled Application for Certificate of Approval for/Notification of Change of Ownership (Asset Purchase), effective 11/12; available at http://www.flrules.org/Gateway/reference.asp?No=Ref-03390 or https://www.myfloridalicense.com/intentions2.asp?chBoard=true&boardid=63&SID=;

(e)(c) DBPR ELC 7, entitled Application for Certificate of Approval for/Notification of Change of Ownership (Stock Purchase), effective 11/12, available at http://www.flrules.org/Gateway/reference.asp?No=Ref-03391 or https://www.myfloridalicense.com/intentions2.asp?chBoard=true&boardid=63&SID=;

(f)(d) DBPR EL-4513, entitled License Relinquishment Agreement, effective 05/2011, available at http://www.flrules.org/Gateway/reference.asp?No=Ref-03392 or http://www.myfloridalicense.com/dbpr/pro/emplo/forms.html;

(g)(e) DBPR EL-4514, entitled Termination of Employee Leasing Company Operations, effective  5/2011, available at http://www.flrules.org/Gateway/reference.asp?No=Ref-03393 or http://www.myfloridalicense.com/dbpr/pro/emplo/forms.html; and

(h)(f) DBPR EL-4518, entitled Cross Guarantee Form, effective 04/15,  available at http://www.flrules.org/Gateway/reference.asp?No=Ref- _____;

(i) Rule 61-35.013, F.A.C., effective 11-13-13 available at http://www.flrules.org/Gateway/reference.asp?No=Ref-03394.

(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 as follows:

	CHANGE IN STATUS	NEEDED ACTION BY COMPANY,
		GROUP, OR CONTROLLING PERSON
	(a) Group adds new member(s)	new cross guarantees (DBPR EL-4518), new application(s) (DBPR ELC 3), and application fees for new member(s) but no new licensure fee(s); new controlling person license application(s), (DBPR ELC 1), and fee(s) for new controlling person(s) – at least one controlling person required for each new company unless it has one already.
	(b) Group dissolves into single companies	new company applications (DBPR ELC 2), and fees and assessments – group license fee shall be credited to the individual applicants who have same ownership as group.
	(c) From individual license to group license (e.g., single company wishes to form group with other licensed company(ies) or with unlicensed, newly created company(ies) or with both)	new company applications (DBPR ELC 3),  with cross guarantees (DBPR EL-4518), and group license fees and assessments – at least one controlling person license application (DBPR ELC 1), for each newly created company (unless already licensed controlling person will serve in that capacity); new controlling person license applications (DBPR ELC 1) for each new controlling person as defined in Rule 61G7-6.003, F.A.C.
	(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	Within 30 days of purchase or acquisition of control, application for approval or notification of change of asset purchase (DBPR ELC 6), entitled Application for Certificate of Approval for/Notification of Change of Ownership (Asset Purchase) or application for approval or notification of change of stock purchase (DBPR ELC 7), entitled Application for Certificate of Approval for/Notification of Change of Ownership (Stock Purchase), as appropriate. Where applicable, new controlling person license application(s), (DBPR ELC 1) and historical sketch (DBPR EL-4512) 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.	Prior to the purchase or acquisition of control, application for approval or notification of change of asset purchase (DBPR ELC 6), entitled Application for Certificate of Approval for/Notification of Change of Ownership (Asset Purchase) or application for approval or notification of change of stock purchase (DBPR ELC 7), entitled Application for Certificate of Approval for/Notification of Change of Ownership (Stock Purchase), as appropriate, and new controlling person license application, Form (DBPR ELC 1), entitled Application for Licensure as an Employee Leasing Company Controlling Person and historical sketch Form (DBPR 4512), entitled Historical Sketch.
(f) Member of group leaves but at least two members remain as group			new company application (DBPR ELC 3), and fee from leaving company; new controlling person license application (DBPR ELC 1) and fee for any new controlling person as defined in Rule 61G7-6.003, F.A.C.
	(g) Controlling person no longer in capacity to act as a controlling person for a licensed employee leasing company or group		notification to Board from both company and controlling person. If the controlling person’s departure leaves the entity without a controlling person, then the entity may accept no new clients and must submit an application for a new licensed controlling person (DBPR ELC 1) within 30 days or cease operation. Notification to the Board of the name of the new licensed controlling person is a specific requirement prior to taking on new clients or resuming operations.
	(h) 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 needed from controlling person license goes with controlling person; $5 transfer fee from controlling person.

(3) through (6) No change.

(7) If an employee leasing company determines that it wishes to cease to engage in the business of employee leasing and ceases to file required reports then both the controlling person(s) and the company must notify the Department no later than the next required reporting date by submitting DBPR EL-4514, entitled Termination of Employee Leasing Companies Operations, and must immediately return the employee leasing and controlling person licenses to the Board office upon the Board’s acceptance of the proferred voluntary relinquishment of license.

(8) No change.

Rulemaking Authority 468.522, 468.524(2), 468.525(3), 468.526, 468.531, 455.201(2) FS. Law Implemented 468.524(2), 468.5245, 468.525(3), 468.526, 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, 11-24-13,_________.

 

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: May 6, 2015