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.