Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 1636
       
       
       
       
       
       
                                Ì576406.Î576406                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/01/2019           .                                
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       The Committee on Banking and Insurance (Broxson) recommended the
       following:
       
    1         Senate Substitute for Amendment (730644) (with title
    2  amendment)
    3  
    4         Delete line 722
    5  and insert:
    6         Section 12. Effective July 1, 2020, paragraph (d) of
    7  subsection (1) of section 440.10, Florida Statutes, is amended
    8  to read:
    9         440.10 Liability for compensation.—
   10         (1)
   11         (d)1. If a contractor becomes liable for the payment of
   12  compensation to the employees of a subcontractor who has failed
   13  to secure such payment in violation of s. 440.38, the contractor
   14  or other third-party payor shall be entitled to recover from the
   15  subcontractor all benefits paid or payable plus interest unless
   16  the contractor and subcontractor have agreed in writing that the
   17  contractor will provide coverage.
   18         2. If a contractor or third-party payor becomes liable for
   19  the payment of compensation to the corporate officer of a
   20  subcontractor who is engaged in the construction industry and
   21  has elected to be exempt from the provisions of this chapter,
   22  but whose election is invalid, the contractor or third-party
   23  payor may recover from the claimant or corporation all benefits
   24  paid or payable plus interest, unless the contractor and the
   25  subcontractor have agreed in writing that the contractor will
   26  provide coverage.
   27         3.If a contractor and an employee leasing company are
   28  operating pursuant to an arrangement for employee leasing as
   29  defined in s. 468.520(4) and workers compensation insurance is
   30  provided by the employee leasing company to the leased
   31  employees, a person is deemed an employee of the employee
   32  leasing company for purposes of workers compensation insurance,
   33  unless the contractor has secured additional workers’
   34  compensation coverage applicable to the employee, upon the
   35  earliest of the following:
   36         a. The hiring of the person by the contractor.
   37         b. The commencement of work by the person for the
   38  contractor.
   39         c. The hiring of the person directly by the employee
   40  leasing company.
   41         Section 13. Effective July 1, 2020, subsection (5) is added
   42  to section 468.525, Florida Statutes, to read:
   43         468.525 License requirements.—
   44         (5) If the client company is a contractor, the requirements
   45  of s. 440.10(1)(a) are not satisfied by the employee leasing
   46  arrangement unless the contractor has secured additional
   47  workers’ compensation insurance for nonleased employees or
   48  unless the contractual arrangement provides that a person is
   49  deemed an employee of the employee leasing company for purposes
   50  of workers compensation coverage, upon the earliest of the
   51  following:
   52         (a)The hiring of the person by the client company.
   53         (b)The commencement of work by the person for the client
   54  company.
   55         (c)The hiring of the person directly by the employee
   56  leasing company.
   57         Section 14. Effective July 1, 2020, present subsections (4)
   58  and (5) of section 468.529, Florida Statutes, are redesignated
   59  as subsections (5) and (6), respectively, a new subsection (4)
   60  is added to that section, and subsection (1) of that section is
   61  amended, to read:
   62         468.529 Licensee’s insurance; employment tax; benefit
   63  plans.—
   64         (1) A licensed employee leasing company is the employer of
   65  the leased employees, except that this provision is not intended
   66  to affect the determination of any issue arising under Pub. L.
   67  No. 93-406, the Employee Retirement Income Security Act, as
   68  amended from time to time. An employee leasing company shall be
   69  responsible for timely payment of reemployment assistance taxes
   70  pursuant to chapter 443, and shall be responsible for providing
   71  workers’ compensation coverage pursuant to chapter 440.
   72         (a) However, a no licensed employee leasing company may not
   73  shall sponsor a plan of self-insurance for health benefits,
   74  except as may be permitted by the provisions of the Florida
   75  Insurance Code or, if applicable, by Pub. L. No. 93-406, the
   76  Employee Retirement Income Security Act, as amended from time to
   77  time. For purposes of this section, the term a “plan of self
   78  insurance” excludes shall exclude any arrangement where an
   79  admitted insurance carrier has issued a policy of insurance
   80  primarily responsible for the obligations of the health plan.
   81         (b) This section does not modify the statutory obligation
   82  of a client company to secure workers’ compensation coverage as
   83  required under s. 440.10 for employees whom the client company
   84  does not lease pursuant to an employee leasing arrangement. A
   85  client company that is engaged in the construction industry and
   86  that is in an employee leasing arrangement shall secure and
   87  maintain separate workers’ compensation insurance coverage as
   88  required under this section and s. 440.10 unless the employee
   89  leasing company and its carrier agree to provide such coverage
   90  directly to the client company, covering all persons performing
   91  work for the client company at all times, in full compliance
   92  with s. 440.10.
   93         (4)During the term of an employee leasing arrangement with
   94  a contractor, if a contractor does not secure workers
   95  compensation insurance for nonleased employees, a person is
   96  deemed an employee of the employee leasing company for purposes
   97  of workers compensation insurance upon the earliest of the
   98  following:
   99         (a)The hiring of such person by the client company.
  100         (b)The commencement of work by such person for the client
  101  company.
  102         (c)The hiring of the person directly by the employee
  103  leasing company.
  104         Section 15. For the purpose of incorporating the amendment
  105  made by this act to section 468.529, Florida Statutes, in a
  106  reference thereto, paragraph (g) of subsection (1) of section
  107  468.532, Florida Statutes, is reenacted to read:
  108         468.532 Discipline.—
  109         (1) The following constitute grounds for which disciplinary
  110  action against a licensee may be taken by the board:
  111         (g) Failing to maintain workers’ compensation insurance as
  112  required in s. 468.529.
  113         Section 16. Except as otherwise expressly provided in this
  114  act, this act shall take effect July 1, 2019.
  115  
  116  ================= T I T L E  A M E N D M E N T ================
  117  And the title is amended as follows:
  118         Delete line 824
  119  and insert:
  120         the act; amending s. 440.10, F.S.; specifying when a
  121         person is deemed an employee of an employee leasing
  122         company for workers’ compensation insurance purposes
  123         under circumstances relating to the company’s employee
  124         leasing arrangement with a contractor; amending s.
  125         468.525, F.S.; providing that if an employee leasing
  126         company’s client company is a contractor, workers’
  127         compensation insurance requirements are not satisfied
  128         by the employee leasing arrangement unless certain
  129         conditions are met; amending s. 468.529, F.S.;
  130         requiring certain client companies to maintain
  131         separate workers’ compensation insurance coverage
  132         unless certain conditions are met; specifying when a
  133         person is deemed an employee of an employee leasing
  134         company for workers’ compensation insurance proposes
  135         under certain circumstances; providing construction;
  136         reenacting s. 468.532(1)(g), F.S., relating to
  137         discipline, to incorporate the amendment made to s.
  138         468.529, F.S., in a reference thereto; providing
  139         effective dates.