Bill Text: FL H0307 | 2012 | Regular Session | Introduced

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Bill Title: Workers' Compensation Certificate-of-exemption Process

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2012-03-09 - Died in returning Messages [H0307 Detail]

Download: Florida-2012-H0307-Introduced.html

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HB 307

1	A bill to be entitled
2	An act relating to the workers' compensation
3	certificate-of-exemption process; amending s. 440.02,
4	F.S.; redefining the term "employee" for purposes of
5	workers' compensation; amending s. 440.05, F.S.;
6	revising requirements relating to election of
7	exemption from coverage to include applicability to
8	members of limited liability companies; revising
9	requirements for submitting a notice of election of
10	exemption; revising duties of the Department of
11	Financial Services relating to the expiration of
12	certificates of exemption; expanding applicability of
13	requirements relating to certificates of exemption;
14	providing effective dates.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Paragraphs (b) and (c) of subsection (15) of
19	section 440.02, Florida Statutes, are amended to read:
20	440.02  Definitions.-When used in this chapter, unless the
21	context clearly requires otherwise, the following terms shall
22	have the following meanings:
23	(15)
24	(b)  "Employee" includes any person who is an officer of a
25	corporation and who performs services for remuneration for such
26	corporation within this state, whether or not such services are
27	continuous.
28	1.  Any officer of a corporation may elect to be exempt
29	from this chapter by filing written notice of the election with
30	the department as provided in s. 440.05.
31	2.  As to officers of a corporation who are engaged in the
32	construction industry, no more than three officers of a
33	corporation or of any group of affiliated corporations may elect
34	to be exempt from this chapter by filing written notice of the
35	election with the department as provided in s. 440.05. Officers
36	must be shareholders, each owning at least 10 percent of the
37	stock of such corporation and listed as an officer of such
38	corporation with the Division of Corporations of the Department
39	of State, in order to elect exemptions under this chapter. For
40	purposes of this subparagraph, the term "affiliated" means and
41	includes one or more corporations or entities, any one of which
42	is a corporation engaged in the construction industry, under the
43	same or substantially the same control of a group of business
44	entities which are connected or associated so that one entity
45	controls or has the power to control each of the other business
46	entities. The term "affiliated" includes, but is not limited to,
47	the officers, directors, executives, shareholders active in
48	management, employees, and agents of the affiliated corporation.
49	The ownership by one business entity of a controlling interest
50	in another business entity or a pooling of equipment or income
51	among business entities shall be prima facie evidence that one
52	business is affiliated with the other.
53	3.  An officer of a corporation who elects to be exempt
54	from this chapter by filing a written notice of the election
55	with the department as provided in s. 440.05 is not an employee.
56
57	Services are presumed to have been rendered to the corporation
58	if the officer is compensated by other than dividends upon
59	shares of stock of the corporation which the officer owns.
60	(c)  "Employee" includes:
61	1.  A sole proprietor, a member of a limited liability
62	company, or a partner who is not engaged in the construction
63	industry, devotes full time to the proprietorship, limited
64	liability company, or partnership, and elects to be included in
65	the definition of employee by filing notice thereof as provided
66	in s. 440.05.
67	2.  All persons who are being paid by a construction
68	contractor as a subcontractor, unless the subcontractor has
69	validly elected an exemption as permitted by this chapter, or
70	has otherwise secured the payment of compensation coverage as a
71	subcontractor, consistent with s. 440.10, for work performed by
72	or as a subcontractor.
73	3.  An independent contractor working or performing
74	services in the construction industry.
75	4.  A sole proprietor who engages in the construction
76	industry and a partner or partnership that is engaged in the
77	construction industry.
78	Section 2.  Subsections (2), (3), and (6) of section
79	440.05, Florida Statutes, are amended to read:
80	440.05  Election of exemption; revocation of election;
81	notice; certification.-
82	(2)  Each sole proprietor, member of a limited liability
83	company, or partner who elects to be included in the definition
84	of "employee" or who, after such election, revokes that election
85	must mail to the department in Tallahassee notice to such
86	effect, in accordance with a form to be prescribed by the
87	department.
88	(3)  Each officer of a corporation who is engaged in the
89	construction industry and who elects an exemption from this
90	chapter or who, after electing such exemption, revokes that
91	exemption, must submit mail a written notice to such effect to
92	the department on a form prescribed by the department. The
93	notice of election to be exempt from the provisions of this
94	chapter must be notarized and under oath. The notice of election
95	to be exempt which is electronically submitted to the department
96	by the officer of a corporation who is allowed to claim an
97	exemption as provided by this chapter must list the name,
98	federal tax identification number, date of birth, Florida
99	driver's license number or Florida identification card number
100	social security number, all certified or registered licenses
101	issued pursuant to chapter 489 held by the person seeking the
102	exemption, a copy of relevant documentation as to employment
103	status filed with the Internal Revenue Service as specified by
104	the department, a copy of the relevant occupational license in
105	the primary jurisdiction of the business, and the registration
106	number of the corporation filed with the Division of
107	Corporations of the Department of State, and the percentage of
108	ownership along with a copy of the stock certificate evidencing
109	the required ownership under this chapter. The notice of
110	election to be exempt must identify each corporation that
111	employs the person electing the exemption and must list the
112	social security number or federal tax identification number of
113	each such employer and the additional documentation required by
114	this section. In addition, the notice of election to be exempt
115	must provide that the officer electing an exemption is not
116	entitled to benefits under this chapter, must provide that the
117	election does not exceed exemption limits for officers provided
118	in s. 440.02, and must certify that any employees of the
119	corporation whose officer elects an exemption are covered by
120	workers' compensation insurance. Upon receipt of the notice of
121	the election to be exempt, receipt of all application fees, and
122	a determination by the department that the notice meets the
123	requirements of this subsection, the department shall issue a
124	certification of the election to the officer, unless the
125	department determines that the information contained in the
126	notice is invalid. The department shall revoke a certificate of
127	election to be exempt from coverage upon a determination by the
128	department that the person does not meet the requirements for
129	exemption or that the information contained in the notice of
130	election to be exempt is invalid. The certificate of election
131	must list the name of the corporation listed in the request for
132	exemption. A new certificate of election must be obtained each
133	time the person is employed by a new or different corporation
134	that is not listed on the certificate of election. A copy of the
135	certificate of election must be sent to each workers'
136	compensation carrier identified in the request for exemption.
137	Upon filing a notice of revocation of election, an officer who
138	is a subcontractor or an officer of a corporate subcontractor
139	must notify her or his contractor. Upon revocation of a
140	certificate of election of exemption by the department, the
141	department shall notify the workers' compensation carriers
142	identified in the request for exemption.
143	(6)  A construction industry certificate of election to be
144	exempt which is issued in accordance with this section shall be
145	valid for 2 years after the effective date stated thereon. Both
146	the effective date and the expiration date must be listed on the
147	face of the certificate by the department. The construction
148	industry certificate must expire at midnight, 2 years from its
149	issue date, as noted on the face of the exemption certificate. A
150	construction industry certificate of election to be exempt may
151	be revoked before its expiration by the officer for whom it was
152	issued or by the department for the reasons stated in this
153	section. At least 60 days before prior to the expiration date of
154	a construction industry certificate of exemption issued after
155	December 1, 1998, the department shall send notice of the
156	expiration date and an application for renewal to the
157	certificateholder at the address on the certificate or to the e-
158	mail address on file with the department.
159	Section 3.  Effective January 1, 2013, subsection (6) of
160	section 440.05, Florida Statutes, as amended by act, is amended
161	to read:
162	440.05  Election of exemption; revocation of election;
163	notice; certification.-
164	(6)  A construction industry certificate of election to be
165	exempt which is issued on or after January 1, 2013, in
166	accordance with this section shall be valid for 2 years after
167	the effective date stated thereon. Both the effective date and
168	the expiration date must be listed on the face of the
169	certificate by the department. The construction industry
170	certificate must expire at midnight, 2 years from its issue
171	date, as noted on the face of the exemption certificate. A
172	construction industry certificate of election to be exempt may
173	be revoked before its expiration by the officer for whom it was
174	issued or by the department for the reasons stated in this
175	section. At least 60 days before the expiration date of a
176	construction industry certificate of exemption, the department
177	shall send notice of the expiration date to the
178	certificateholder at the address on the certificate or to the e-
179	mail address on file with the department.
180	Section 4.  Except as otherwise expressly provided in this
181	act, this act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.