Bill Text: FL S0676 | 2012 | Regular Session | Introduced
Bill Title: Workers' Compensation Certificate-of-exemption Process
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-03-08 - Laid on Table, refer to HB 307 -SJ 1066 [S0676 Detail]
Download: Florida-2012-S0676-Introduced.html
Florida Senate - 2012 SB 676 By Senator Smith 29-00485A-12 2012676__ 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 from 29 this chapter by filingwrittennotice of the election with the 30 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 filingwrittennotice 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 from 54 this chapter by filing awrittennotice of the election with the 55 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 services 74 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 440.05, 79 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 submitwrittennotice to such effect to 92 the department on a form prescribed by the department.The93notice of election to be exempt from the provisions of this94chapter 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 100social 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 employment103status filed with the Internal Revenue Service as specified by104the department, a copy of the relevant occupational license in105the primary jurisdiction of the business, andthe registration 106 number of the corporation filed with the Division of 107 Corporations of the Department of State, and the percentage of 108 ownershipalong with a copy of the stock certificateevidencing 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 beforeprior tothe expiration date of 154 a construction industry certificate of exemptionissued after155December 1, 1998, the department shall send notice of the 156 expiration dateand an application for renewalto 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 this act, is 161 amended to read: 162 440.05 Election of exemption; revocation of election; 163 notice; certification.— 164 (6) Aconstruction industrycertificate 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. Theconstruction industry170 certificate must expire at midnight, 2 years from its issue 171 date, as noted on the face of the exemption certificate. A 172construction industrycertificate 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 176construction industrycertificate 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.