Florida Senate - 2019 COMMITTEE AMENDMENT Bill No. SB 1636 Ì730644&Î730644 LEGISLATIVE ACTION Senate . House Comm: RS . 04/01/2019 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Brandes) recommended the following: 1 Senate Amendment to Amendment (800706) (with title 2 amendment) 3 4 Between lines 721 and 722 5 insert: 6 Section 12. Paragraph (d) of subsection (1) of section 7 440.10, Florida Statutes, is amended to read: 8 440.10 Liability for compensation.— 9 (1) 10 (d)1. If a contractor becomes liable for the payment of 11 compensation to the employees of a subcontractor who has failed 12 to secure such payment in violation of s. 440.38, the contractor 13 or other third-party payor shall be entitled to recover from the 14 subcontractor all benefits paid or payable plus interest unless 15 the contractor and subcontractor have agreed in writing that the 16 contractor will provide coverage. 17 2. If a contractor or third-party payor becomes liable for 18 the payment of compensation to the corporate officer of a 19 subcontractor who is engaged in the construction industry and 20 has elected to be exempt fromthe provisions ofthis chapter, 21 but whose election is invalid, the contractor or third-party 22 payor may recover from the claimant or corporation all benefits 23 paid or payable plus interest, unless the contractor and the 24 subcontractor have agreed in writing that the contractor will 25 provide coverage. 26 3. If a contractor and an employee leasing company are 27 operating pursuant to an arrangement for employee leasing as 28 defined in s. 468.520(4) and workers’ compensation insurance is 29 provided by the employee leasing company to the leased 30 employees, a person is deemed an employee of the employee 31 leasing company for purposes of workers’ compensation insurance, 32 unless the contractor has secured additional workers’ 33 compensation coverage applicable to the employee, upon the 34 earliest of the following: 35 a. The hiring of the person by the contractor. 36 b. The commencement of work by the person for the 37 contractor. 38 c. The hiring of the person directly by the employee 39 leasing company. 40 Section 13. Subsection (5) is added to section 468.525, 41 Florida Statutes, to read: 42 468.525 License requirements.— 43 (5) If the client company is a contractor, the requirements 44 of s. 440.10(1)(a) are not satisfied by the employee leasing 45 arrangement unless the contractor has secured additional 46 workers’ compensation insurance for nonleased employees or 47 unless the contractual arrangement provides that a person is 48 deemed an employee of the employee leasing company for purposes 49 of workers’ compensation coverage, upon the earliest of the 50 following: 51 (a) The hiring of the person by the client company. 52 (b) The commencement of work by the person for the client 53 company. 54 (c) The hiring of the person directly by the employee 55 leasing company. 56 Section 14. Present subsections (4) and (5) of section 57 468.529, Florida Statutes, are redesignated as subsections (5) 58 and (6), respectively, a new subsection (4) is added to that 59 section, and subsection (1) of that section is amended, to read: 60 468.529 Licensee’s insurance; employment tax; benefit 61 plans.— 62 (1) A licensed employee leasing company is the employer of 63 the leased employees, except that this provision is not intended 64 to affect the determination of any issue arising under Pub. L. 65 No. 93-406, the Employee Retirement Income Security Act, as 66 amended from time to time. An employee leasing company shall be 67 responsible for timely payment of reemployment assistance taxes 68 pursuant to chapter 443, and shall be responsible for providing 69 workers’ compensation coverage pursuant to chapter 440. 70 (a) However, anolicensed employee leasing company may not 71shallsponsor a plan of self-insurance for health benefits, 72 except as may be permitted bythe provisions ofthe Florida 73 Insurance Code or, if applicable, by Pub. L. No. 93-406, the 74 Employee Retirement Income Security Act, as amended from time to 75 time. For purposes of this section, the terma“plan of self 76 insurance” excludesshall excludeany arrangement where an 77 admitted insurance carrier has issued a policy of insurance 78 primarily responsible for the obligations of the health plan. 79 (b) This section does not modify the statutory obligation 80 of a client company to secure workers’ compensation coverage as 81 required under s. 440.10 for employees whom the client company 82 does not lease pursuant to an employee leasing arrangement. A 83 client company that is engaged in the construction industry and 84 that is in an employee leasing arrangement shall secure and 85 maintain separate workers’ compensation insurance coverage as 86 required under this section and s. 440.10 unless the employee 87 leasing company and its carrier agree to provide such coverage 88 directly to the client company, covering all persons performing 89 work for the client company at all times, in full compliance 90 with s. 440.10. 91 (4) During the term of an employee leasing arrangement with 92 a contractor, if a contractor does not secure workers’ 93 compensation insurance for nonleased employees, a person is 94 deemed an employee of the employee leasing company for purposes 95 of workers’ compensation insurance upon the earliest of the 96 following: 97 (a) The hiring of such person by the client company. 98 (b) The commencement of work by such person for the client 99 company. 100 (c) The hiring of the person directly by the employee 101 leasing company. 102 Section 15. For the purpose of incorporating the amendment 103 made by this act to section 468.529, Florida Statutes, in a 104 reference thereto, paragraph (g) of subsection (1) of section 105 468.532, Florida Statutes, is reenacted to read: 106 468.532 Discipline.— 107 (1) The following constitute grounds for which disciplinary 108 action against a licensee may be taken by the board: 109 (g) Failing to maintain workers’ compensation insurance as 110 required in s. 468.529. 111 112 ================= T I T L E A M E N D M E N T ================ 113 And the title is amended as follows: 114 Delete line 824 115 and insert: 116 the act; amending s. 440.10, F.S.; specifying when a 117 person is deemed an employee of an employee leasing 118 company for workers’ compensation insurance purposes 119 under circumstances relating to the company’s employee 120 leasing arrangement with a contractor; amending s. 121 468.525, F.S.; providing that if an employee leasing 122 company’s client company is a contractor, workers’ 123 compensation insurance requirements are not satisfied 124 by the employee leasing arrangement unless certain 125 conditions are met; amending s. 468.529, F.S.; 126 requiring certain client companies to maintain 127 separate workers’ compensation insurance coverage 128 unless certain conditions are met; specifying when a 129 person is deemed an employee of an employee leasing 130 company for workers’ compensation insurance proposes 131 under certain circumstances; providing construction; 132 reenacting s. 468.532(1)(g), F.S., relating to 133 discipline, to incorporate the amendment made to s. 134 468.529, F.S., in a reference thereto; providing an 135 effective date.