Florida Board of Employee Leasing Companies Meeting Report: February 16, 2011

 

The Florida Board of Employee Leasing Companies (“Board”) met via teleconference on February 16, 2011 to consider various administrative matters related to employee leasing companies.  To view the meeting agenda, click here.

 

Consideration of Employee Leasing Company and Controlling Person Applications

The Board approved the following employee leasing company and controlling person applications after limited discussion:

• Barbara Pailley, controlling person applicant
  • AS South, LLC – EL 403
• Mark Ruggieri, controlling person applicant
  • Certistaff, Inc. – GL 50
  • Certistaff II, Inc. – GM 104
  • Certistaff III, Inc. – GM 188
  • Certistaff IV, Inc. – GM 300

Ms. Pailley’s application generated discussion because the initial submission contained numerous errors and had to be amended and resubmitted.  Board members were concerned about the number of corrections and wondered why they had occurred.

A representative for Ms. Pailley explained that the application was revised to better explain her termination with a previous company that was fined by the Florida Department of Business and Professional Regulation for excess Federal Insurance Contributions Act (“FICA”) withholding allegedly caused by a software glitch.  Ms. Pailley, who had already been terminated by that company when the complaints were filed, could not adequately dispute the claims at that time because she no longer had access to company records, the representative said.  The relinquishment of Ms. Pailley’s controlling person license was not part of any disciplinary measure, the representative added.

Revisions to Ms. Pailley’s application also addressed some financial-related issues.

 “Our concern is that we want to make sure it is not going to happen again,” one Board member said.

 

Consideration of Change of Ownership Applications

The Board approved the following change of ownership applications:

• Business Personnel Solutions, Inc. – EL 343
• First Financial Employee Leasing, Inc. – GL 145
• First Financial Employee Leasing II, Inc. – GM 145
• First Financial Employee Leasing III, Inc. – GM 360
• First Financial Employee Leasing IV, Inc. – EL 372
• Omega Business Solutions, Inc. – GL 73
• Omega Business Solutions, Inc. – GM 156
• SCI Global HR, Inc. – EL 394
• SCI HR Outsourcing, Inc. – EL 395

The change of ownership applications for First Financial Employee Leasing I, II and III involved an asset purchase by employees.  The change of ownership application for First Financial Employee Leasing IV involved a stock purchase by employees, it was explained.

During the reviews of financial statements for various applicants, Board members had questions about off-balance sheet transactions and wondered if it was their responsibility to assess such transactions. 

“Is there anything for the Board to do other than say, ‘Thanks for telling us?'” asked one Board member.

Another Board member said those kind of transactions should be evaluated closely when quarterly and annual statements arrive.

“Then I think it’s fair game,” he said.  Board members agreed to ask the Board’s Counsel for guidance on the matter in the future.

 

Office of the Attorney General Report

With little discussion, the Board reviewed a Statement of Estimated Regulatory Cost for the following proposed Rules to ensure compliance with the provisions of HB 1565, which relate to whether a regulation would have an adverse financial impact on small business. 

• 61G7 – 5.005 entitled “Deficiency in Tangible Accounting and Accounting Net Worth; Guaranty Form Acceptable to Board; Sufficient Evidence of Guarantor’s Adequate Resources”
• 61G7 – 10.0012 entitled “Workers’ Compensation Liability Statement”

The Board determined and voted that neither proposed Rule had an adverse impact on small business of over $200,000.

It was noted that all proposed Rules must now be referred to the Governor’s Office of Fiscal Accountability and Regulatory Reform through the Board’s executive director, Rick Morrison.

With no further business to discuss, the meeting was adjourned.

 

 

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