Fla. Admin. Code Ann. R. 61G7-5.001 - Application Procedure; Application Form; Fees; Confidential Information; Denial of Application; Request for Hearing

(1) Applicants for licensure as an employee leasing company shall file a completed application on a form prescribed by the Department in Rule 61-35.013, F.A.C. 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, 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 for each controlling person applicants, $250.00 for each change of ownership applicants, and registration fees for de minimis operations of $250.00 for a single employee leasing company and $500.00 for a de minimus employee leasing company group.

(3) License fees shall be assessed as follows:

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

1. $600.00 for each controlling person;

2. $900.00 for each employee leasing company;

3. $1, 500.00 for each employee leasing company group.

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

1. $300.00 for each controlling person;

2. $450.00 for each employee leasing company;

3. $750.00 for each employee leasing company group.

(c) For renewal licensure applications:

1. $600.00 for each controlling person;

2. $900.00 for each employee leasing company;

3. $1, 500.00 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-numbered year.

(e) Unlicensed Activity Fee. From each fee for initial licensure and each fee for licensure renewal, $5.00 shall be earmarked for the purpose of combatting unlicensed activity.

(f) Initial assessments shall be paid as per Rule 61G7-5.002, F.A.C.

(4) The Board shall review every applicant's completed application and shall decide by majority vote in open meeting whether to certify to the Department that the applicant is qualified for licensure. New applications for employee leasing company or employee leasing company group and controlling person(s) will not be considered separately, but will be presented to the Board only after all information for the company and controlling person(s) is complete. Applications for additional controlling person(s) or changes in existing controlling person(s) do not require employee leasing company or employee leasing company group applications to be completed in order to be considered by the Board. Financial information, including client lists, obtained by the Board or the Department in connection with the application process shall, pursuant to Section 455.229, F.S., be kept confidential and exempt from the public disclosure requirements of Chapter 119, F.S.

(5) The Board shall not certify to the Department that an applicant is qualified for licensure, unless it finds that the applicant has met all licensure requirements contained in Part XI of Chapter 468, F.S. The burden of showing qualification for licensure shall be on the applicant.

(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. Is at least 18 years of age;

2. Is of good moral character as defined in Section 468.525(2)(a), F.S.;

3. Has sufficient education or experience to successfully operate as a controlling person of an employee leasing company.

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. The imposition of federal or state withholding or payroll tax liens,

b. Unpaid federal, state or local withholding or payroll taxes,

c. Violating federal wage and hour laws,

d. Failure to comply with state or federal workers' compensation requirements,

e. Failure to comply with applicable laws relating to the providing and maintenance of health insurance benefits to employees, and

f. Failure to comply with occupational health and safety act (OSHA) requirements.

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. The length of time since the prior activity.

b. The steps taken by the applicant to insure the non-occurrence of similar actions in the future.

c. The restitution of any damages suffered by any company, client or victim of the applicant's actions.

d. The lack of any recurrent actions by the applicant.

e. The lack of any wrongful intent by the applicant at the time of the action.

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 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. If a corporation is validly organized in the State of Florida, or appropriately registered as a Foreign Corporation doing business in the State of Florida as evidenced by a Certificate of Standing issued by the Florida Secretary of State.

2. Has and is maintaining, at the time of application, a positive working capital as determined in accordance with generally accepted accounting principles as demonstrated in the information filed with the application.

3. Has a tangible accounting net worth of not less than $50, 000 in accordance with generally accepted accounting principles as demonstrated in the information filed with the application.

4. Has, at the time of application, a contract form meeting the requirements of Sections 468.525(3) and (4), F.S., which will be used after licensure to engage in employee leasing with new or renewal clients.

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 Association (FWCJUA) 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 which sets forth that the policy will issue immediately upon licensure by the Board, and the policy issues within thirty (30) days of the FWCJUA or other authorized carrier's notification from the Board that the applicant has been approved subject to the policy issuing. The employee leasing company may not contract to provide any services to leased employees until the 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 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 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

2601 Blair Stone Road

Tallahassee, Florida 32399-0767

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. With regard to all plans of group insurance for the provision of health benefits to leased employees, has provided the Board a signed statement that is substantially in the form set forth in paragraph 61G7-5.001(12), F.A.C. 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.

(7) Conviction of a crime shall not automatically bar an applicant from obtaining a license, unless the crime involved fraud, perjury, theft or embezzlement of any money or thing of value, sale or use of any controlled substance, tax evasion, or the filing of any false document with any government agency. Notwithstanding the foregoing, the Board may certify that an applicant who has been convicted of a crime, is qualified for licensure if it determines that in the time since the conviction the applicant has demonstrated sufficient rehabilitation over at least a three-year period which would indicate that the applicant can now be entrusted with large sums of money. In determining whether such an applicant is rehabilitated the Board may consider the applicant's employment record, whether the applicant has been completely law abiding since the conviction, and whether the applicant has been completely trustworthy in all business and personal dealings since the conviction.

(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 hearing pursuant to Section 120.57(1) or (2), F.S. A request for hearing pursuant to Section 120.57(1), F.S., shall comply with the requirements of Rule 28-106.201, F.A.C.

(9) An applicant must list each and every controlling person on their application for an Employee Leasing Company license. Unless all controlling persons are licensed pursuant to Part XI Chapter 468, F.S., the company is in violation of Chapter 468, F.S.

(10) An applicant to become an employee leasing company, which is a licensee or franchisee of another entity that is an employee leasing company in this or some other state, shall note such fact on the application form. The application shall also provide a copy of the license or franchise agreement at the time the application for an employee leasing company license is made. The franchise or license agreement shall not in any way relieve the applicant for an employee leasing company license of the sole responsibility of complying with the provisions of Sections 468.525(4) and 468.529, F.S.

(11) An applicant to become a controlling person of an already licensed employee leasing company, who will become a controlling person as the result of a change in control of the voting securities of the employee leasing company, shall, at the time of application, submit the closing papers with the application or a letter to the Board after the sale has been completed in order to confirm that ownership of the voting securities was transferred to the applicant.

(12) The applicant or licensee, within (60) days of a licensee's obtaining a plan of group insurance for the provision of health benefits shall submit a signed statement from the insurer that the policy or plan is in compliance. Such statement shall be in substantially the following form:

AFFIDAVIT

I, (name of affiant) 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 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 they are true and correct to the best of my knowledge and belief.

Notes

Fla. Admin. Code Ann. R. 61G7-5.001

Rulemaking Authority 468.522, 468.524, 468.5245 FS. Law Implemented 455.213(11), 455.2281, 468.524, 468.5245, 468.525, 468.526, 468.527, 468.5275, 468.529 FS.

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, 5-29-12, 1-2-13, Amended by Florida Register Volume 44, Number 030, February 13, 2018 effective 2/28/2018.

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, 5-29-12, 1-2-13, 2-28-18.