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A bill to be entitled

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An act relating to employee leasing companies; providing a

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short title; amending s. 443.036, F.S.; redefining the

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term "employee leasing company" for purposes of the

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Unemployment Compensation Law; amending s. 443.1216, F.S.;

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requiring an employee leasing company to submit a report

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regarding client establishment and each establishment of

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the employee leasing company to the Labor Market

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Statistics Center of the Agency for Workforce Innovation;

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providing requirements for the reports; providing

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rulemaking authority for the agency; providing

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definitions; amending s. 468.525, F.S.; requiring that

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each employee leasing company at all times maintain a

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workers' compensation policy; requiring that each

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contractual arrangement between an employee leasing

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company and a client company where the client company is

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to furnish workers' compensation provide to the employee

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leasing company evidence of valid workers' compensation

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coverage; requiring that certain specified conditions be

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included in the contractual arrangement between an

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employee leasing company and its client companies;

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amending s. 468.529, F.S.; requiring an employee leasing

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company to notify its employees if the employee leasing

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company terminates its agreement with a client company;

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providing effective dates for the cancellation of workers'

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compensation coverage; requiring an employee leasing

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company or its client companies to secure workers'

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compensation coverage from an insurance company authorized

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in this state; requiring the employee leasing company to

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offer to the client company an opportunity to receive

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certain records related to the loss experience of the

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workers' compensation insurance within a specified time

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after termination of an employee leasing agreement;

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providing that an employee leasing company and its client

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companies are considered an employer for the purposes of

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the workers' compensation law; reenacting  s. 626.112(1),

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F.S., relating to the licensing of insurance agents,

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insurance adjusters, and customer representatives, to

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incorporate the amendment to s. 468.525, F.S., in a

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reference thereto; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. This act may be cited as the "Accurate

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Employment Statistics Enhancement Act."

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     Section 2.  Subsection (18) of section 443.036, Florida

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Statutes, is amended to read:

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     443.036  Definitions.--As used in this chapter, the term:

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     (18)  "Employee leasing company" means an employing unit

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that has a valid and active license under chapter 468 and that

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maintains the records required by s. 443.171(5) and, in addition,

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produces quarterly reports as specified in s. 443.1216 concerning

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the clients of the employee leasing company and the internal

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staff of the employee leasing company maintains a listing of the

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clients of the employee leasing company and of the employees,

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including their social security numbers, who have been assigned

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to work at each client company job site. Further, each client

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company job site must be identified by industry, products or

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services, and address. The client list must be provided to the

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tax collection service provider by June 30 and by December 31 of

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each year. As used in this subsection, the term "client" means a

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party who has contracted with an employee leasing company to

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provide a worker, or workers, to perform services for the client.

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Leased employees include employees subsequently placed on the

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payroll of the employee leasing company on behalf of the client.

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An employee leasing company must notify the tax collection

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service provider within 30 days after the initiation or

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termination of the company's relationship with any client company

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under chapter 468.

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     Section 3.  Paragraph (a) of subsection (1) of section

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443.1216, Florida Statutes, is amended to read:

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     443.1216  Employment.--Employment, as defined in s. 443.036,

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is subject to this chapter under the following conditions:

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     (1)(a)  The employment subject to this chapter includes a

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service performed, including a service performed in interstate

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commerce, by:

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     1.  An officer of a corporation.

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     2.  An individual who, under the usual common-law rules

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applicable in determining the employer-employee relationship, is

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an employee. However, whenever a client, as defined in s.

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443.036(18), which would otherwise be designated as an employing

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unit has contracted with an employee leasing company to supply it

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with workers, those workers are considered employees of the

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employee leasing company. An employee leasing company may lease

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corporate officers of the client to the client and other workers

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to the client, except as prohibited by regulations of the

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Internal Revenue Service. Employees of an employee leasing

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company must be reported under the employee leasing company's tax

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identification number and contribution rate for work performed

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for the employee leasing company.

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     a. In addition to any other report required to be filed by

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law, an employee leasing company shall submit a report that must

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include every client establishment and each establishment of the

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employee leasing company to the Labor Market Statistics Center of

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the Agency for Workforce Innovation, or as otherwise directed by

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the agency, which must include the following information for each

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establishment:

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     (I) The trade or establishment name;

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     (II) The former unemployment compensation account number,

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if available;

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     (III) The former federal employer identification number

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(FEIN), if available;

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     (IV) The industry code recognized and published by the

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United States Office of Management and Budget, if available;

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     (V) A description of the client's primary business activity

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in order to verify or assign an industry code;

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     (VI) The physical location address;

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     (VII) The number of full-time and part-time employees who

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worked during or received pay that was subject to unemployment

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compensation taxes for the pay period, including the 12th of the

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month for each month of the quarter;

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     (VIII) The total wages subject to unemployment compensation

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taxes paid during the calendar quarter;

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     (IX) An internal identification code to uniquely identify

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each establishment of each client;

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     (X) The month and year the client entered into contract;

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and

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     (XI) The month and year the client terminated the contract

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for services.

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     b. The report shall be submitted electronically or in a

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manner otherwise prescribed by the agency in the format specified

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by the United States Bureau of Labor Statistics for its Multiple

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Worksite Report for Professional Employer Organizations. The

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report must be provided quarterly to the Labor Market Statistics

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Center of the Agency for Workforce Innovation, or as otherwise

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directed by the agency, and must be filed by the last day of the

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month immediately following the end of the calendar quarter. The

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information required in sub-sub-subparagraph a.(X) and (XI) need

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be provided only in the quarter in which the contract to which it

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relates was entered into or terminated. The sum of the employment

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data and the sum of the wage data on this report must match the

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employment and wages reported on the unemployment compensation

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quarterly tax and wage report.

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     c. The Agency for Workforce Innovation may adopt rules to

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administer this subparagraph and shall administer, collect,

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enforce, and waive the penalty imposed by s. 443.141(1)(b) for

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the report required by this subparagraph.

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     d. For the purposes of this subparagraph, the term

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"establishment" or "worksite" means any location where business

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is conducted or where services or industrial operations are

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performed.

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     3.  An individual other than an individual who is an

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employee under subparagraph 1. or subparagraph 2., who performs

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services for remuneration for any person:

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     a.  As an agent-driver or commission-driver engaged in

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distributing meat products, vegetable products, fruit products,

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bakery products, beverages other than milk, or laundry or

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drycleaning services for his or her principal.

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     b.  As a traveling or city salesperson engaged on a full-

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time basis in the solicitation on behalf of, and the transmission

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to, his or her principal of orders from wholesalers, retailers,

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contractors, or operators of hotels, restaurants, or other

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similar establishments for merchandise for resale or supplies for

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use in their business operations. This sub-subparagraph does not

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apply to an agent-driver or a commission-driver and does not

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apply to sideline sales activities performed on behalf of a

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person other than the salesperson's principal.

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     4.  The services described in subparagraph 3. are employment

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subject to this chapter only if:

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     a.  The contract of service contemplates that substantially

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all of the services are to be performed personally by the

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individual;

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     b.  The individual does not have a substantial investment in

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facilities used in connection with the services, other than

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facilities used for transportation; and

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     c.  The services are not in the nature of a single

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transaction that is not part of a continuing relationship with

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the person for whom the services are performed.

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     Section 4.  Paragraphs (h) and (i) are added to subsection

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(3) of section 468.525, Florida Statutes, paragraph (f) of

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subsection (4) of that section is amended, and paragraph (g) is

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added to subsection (4) of that section, to read:

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     468.525  License requirements.--

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     (3)  Each employee leasing company licensed by the

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department shall have a registered agent for service of process

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in this state and at least one licensed controlling person. In

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addition, each licensed employee leasing company shall comply

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with the following requirements:

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     (h) Each employee leasing company shall, regardless of the

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number of leased employees, at all times maintain a workers'

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compensation policy acceptable under the laws of this state.

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     (i) An employee leasing company whose contract with a

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client company provides for the client company to furnish

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coverage under this part shall require the client company to

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provide evidence of valid workers' compensation coverage to the

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employee leasing company.

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     (4)  The employee leasing company's contractual arrangements

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with its client companies shall satisfy the following conditions,

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whereby the leasing company:

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     (f) Gives Has given written notice of the relationship

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between the employee leasing company and the client company to

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each leased employee it assigns to perform services at the

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client's worksite and gives written notice to all leased

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employees as to whether the employee leasing company or the

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client company is providing their workers' compensation coverage.

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     (g) Sets forth whether each leased employee will be covered

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by a workers' compensation policy issued to the employee leasing

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company or to the client company.

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     Section 5.  Section 468.529, Florida Statutes, is amended to

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read:

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     468.529  Licensee's insurance; employment tax; benefit

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plans.--

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     (1)  A licensed employee leasing company is the employer of

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the leased employees, except that this provision is not intended

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to affect the determination of any issue arising under Pub. L.

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No. 93-406, the Employee Retirement Income Security Act, as

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amended from time to time. An employee leasing company is shall

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be responsible for timely payment of unemployment taxes pursuant

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to chapter 443, and is shall be responsible for providing

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workers' compensation coverage pursuant to this part and chapter

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440. However, no licensed employee leasing company shall sponsor

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a plan of self-insurance for health benefits, except as may be

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permitted by the provisions of the Florida Insurance Code or, if

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applicable, by Pub. L. No. 93-406, the Employee Retirement Income

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Security Act, as amended from time to time. For purposes of this

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section, a "plan of self-insurance" shall exclude any arrangement

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where an admitted insurance carrier has issued a policy of

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insurance primarily responsible for the obligations of the health

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plan.

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     (2)  An initial or renewal license may not be issued to any

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employee leasing company unless the employee leasing company

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first files with the board evidence of workers' compensation

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coverage for all leased employees in this state. Each employee

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leasing company shall maintain and make available to its workers'

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compensation carrier the following information:

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     (a)  The correct name and federal identification number of

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each client company.

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     (b)  A listing of all covered employees provided to each

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client company, by classification code.

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     (c)  The total eligible wages by classification code and the

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premiums due to the carrier for the employees provided to each

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client company.

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     (3)  A licensed employee leasing company shall within 30

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days after initiation or termination of an employee leasing

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agreement notify its workers' compensation insurance carrier, the

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Division of Workers' Compensation of the Department of Financial

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Services, and the state agency providing unemployment tax

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collection services under contract with the Agency for Workforce

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Innovation through an interagency agreement pursuant to s.

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443.1316 of both the initiation or the termination of the

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company's relationship with any client company.

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     (4)(a) If an employee leasing company terminates its

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relationship with a client company, the employee leasing company

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shall send notice of the termination by United States Postal

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Service first-class mail to the last known address of each leased

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employee who had been assigned to the terminated client company.

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The notification must state the date that the employee leasing

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company terminated its relationship with the client company.

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     (b) A leased employee who continues in the employment of a

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terminated client company is not covered by the workers'

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compensation policy of the employee leasing company after the

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employee leasing company terminates its relationship with the

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client company. Termination of the employee's workers'

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compensation coverage is effective at the earliest of:

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     1. Five days after the employee leasing company mails a

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notice of termination by United States Postal Service first-class

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mail to the last known address of the leased employee;

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     2. Upon the leased employee receiving actual or

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constructive notice that he or she is no longer an employee of

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the employee leasing company; or

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     3. Receipt, with proof of delivery, by the leased employee,

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or receipt, with proof of delivery, at the leased employee's last

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known address, of notice that the individual is no longer an

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employee of the employee leasing company.

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     (c) If an employee leasing company continues its

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relationship with a client company but terminates the employment

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of, places on a leave of absence, or lays off a leased employee

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who is assigned to the client company, the leased employee is not

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covered by the workers' compensation policy of the employee

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leasing company at the earliest of:

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     1. Five days after the employee leasing company mails a

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notice, by United States Postal first-class mail to the last

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known address of the leased employee, informing the leased

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employee that he or she is no longer a leased employee of the

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employee leasing company, is on leave of absence from the client

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company or employee leasing company, or has been laid off from

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the client company or employee leasing company; or

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     2. Upon the leased employee receiving actual or

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constructive notice that he or she is no longer an employee of

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the client company or employee leasing company, is on a leave of

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absence from the client company or employee leasing company, or

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has been laid off from the client company or employee leasing

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company.

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     (d) Notwithstanding any actual or constructive notice

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received by the leased employee that he or she is no longer a

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leased employee of the leasing company and is no longer covered

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by the employee leasing company's workers' compensation policy,

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the requirements for notice to a leased employee under paragraph

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(b) or paragraph (c) are deemed to be satisfied if a leased

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employee:

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     1. Negotiates a paycheck marked "final paycheck" which

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clearly states or contains written notice that the leased

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employee is no longer an employee of the employee leasing company

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and is not covered by its workers' compensation policy;

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     2. Receives payment in cash or by paycheck which contains

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no reference indicating that the payment is from the employee

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leasing company; or

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     3. Is provided written notice by the client company or the

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employee leasing company stating that the leased employee is no

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longer an employee of the employee leasing company and is not

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covered by the employee leasing company's workers' compensation

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policy.

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     (5) An employee leasing agreement must state whether the

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responsibility to obtain workers' compensation insurance coverage

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for leased employees as required under chapter 440 is allocated

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to the employee leasing company, the client company, or both. The

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responsibility to obtain workers' compensation coverage for

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leased employees shall be by way of a master policy issued in the

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name of the employee leasing company, a multiple coordinated

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policy issued to the employee leasing company, a policy issued to

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the client company, or any other policy acceptable under the laws

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of this state.

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     (6) Within 15 days after termination of an employee leasing

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agreement, the employee leasing company shall provide the client

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company an opportunity to receive records regarding the loss

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experience of the workers' compensation insurance during the

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course of the employee leasing agreement.

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     (7) The client company and the employee leasing company

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shall be considered the employer of leased employees for purposes

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of coverage under chapter 440 regardless of whether the client or

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employee leasing company is supplying workers' compensation

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coverage. Subject to any limitation set forth in chapter 440 or

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s. 627.192(7), s. 440.11(2) applies to the employee leasing

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company, the client company, and all other persons set forth in

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s. 440.11(2) if workers' compensation coverage is secured for

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leased employees by the client company or the employee leasing

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company.

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     (8)(4) An initial or renewal license may not be issued to

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any employee leasing company unless the employee leasing company

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first provides evidence to the board, as required by board rule,

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that the employee leasing company has paid all of the employee

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leasing company's obligations for payroll, payroll-related taxes,

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workers' compensation insurance, and employee benefits. All

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disputed amounts must be disclosed in the application.

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     (9)(5) The provisions of this section are subject to

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verification by department or board audit.

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     Section 6.  For the purpose of incorporating the amendment

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made by this act to section 468.525, Florida Statutes, in a

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reference thereto, subsection (1) of section 626.112, Florida

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Statutes, is reenacted to read:

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     626.112  License and appointment required; agents, customer

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representatives, adjusters, insurance agencies, service

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representatives, managing general agents.--

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     (1)(a)  No person may be, act as, or advertise or hold

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himself or herself out to be an insurance agent, insurance

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adjuster, or customer representative unless he or she is

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currently licensed by the department and appointed by an

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appropriate appointing entity or person.

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     (b)  Except as provided in subsection (6) or in applicable

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department rules, and in addition to other conduct described in

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this chapter with respect to particular types of agents, a

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license as an insurance agent, service representative, customer

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representative, or limited customer representative is required in

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order to engage in the solicitation of insurance. For purposes of

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this requirement, as applicable to any of the license types

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described in this section, the solicitation of insurance is the

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attempt to persuade any person to purchase an insurance product

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by:

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     1.  Describing the benefits or terms of insurance coverage,

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including premiums or rates of return;

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     2.  Distributing an invitation to contract to prospective

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purchasers;

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     3.  Making general or specific recommendations as to

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insurance products;

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     4.  Completing orders or applications for insurance

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products;

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     5.  Comparing insurance products, advising as to insurance

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matters, or interpreting policies or coverages; or

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     6.  Offering or attempting to negotiate on behalf of another

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person a viatical settlement contract as defined in s. 626.9911.

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However, an employee leasing company licensed pursuant to chapter

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468 which is seeking to enter into a contract with an employer

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that identifies products and services offered to employees may

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deliver proposals for the purchase of employee leasing services

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to prospective clients of the employee leasing company setting

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forth the terms and conditions of doing business; classify

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employees as permitted by s. 468.529; collect information from

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prospective clients and other sources as necessary to perform due

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diligence on the prospective client and to prepare a proposal for

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services; provide and receive enrollment forms, plans, and other

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documents; and discuss or explain in general terms the

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conditions, limitations, options, or exclusions of insurance

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benefit plans available to the client or employees of the

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employee leasing company were the client to contract with the

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employee leasing company. Any advertising materials or other

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documents describing specific insurance coverages must identify

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and be from a licensed insurer or its licensed agent or a

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licensed and appointed agent employed by the employee leasing

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company. The employee leasing company may not advise or inform

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the prospective business client or individual employees of

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specific coverage provisions, exclusions, or limitations of

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particular plans. As to clients for which the employee leasing

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company is providing services pursuant to s. 468.525(4), the

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employee leasing company may engage in activities permitted by

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ss. 626.7315, 626.7845, and 626.8305, subject to the restrictions

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specified in those sections. If a prospective client requests

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more specific information concerning the insurance provided by

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the employee leasing company, the employee leasing company must

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refer the prospective business client to the insurer or its

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licensed agent or to a licensed and appointed agent employed by

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the employee leasing company.

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     Section 7.  This act shall take effect October 1, 2008.