Florida Senate - 2019 COMMITTEE AMENDMENT
Bill No. SB 1636
Ì730644&Î730644
LEGISLATIVE ACTION
Senate . House
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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 from the provisions of this 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, a no licensed employee leasing company may not
71 shall sponsor a plan of self-insurance for health benefits,
72 except as may be permitted by the provisions of the 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 term a “plan of self
76 insurance” excludes shall exclude any 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.