Florida Board of Employee Leasing Companies Meeting Report: March 2011

 

The Florida Board of Employee Leasing Companies Board of Directors (“Board”) met via teleconference on March 16, 2011 to consider various pertinent matters.  To view the meeting agenda, click here.

 

Consideration of Employee Leasing Company and Controlling Person Applications

After approving the minutes from the February 16, 2011 teleconference, the Board approved the following employee leasing and controlling persons applications with limited discussion:

• ADP TotalSource FL XIX, Inc. – GM applicant 010
  
  • Mark Benjamin – CO 867
  • Michael J. Burns – CO 897
  • Sergio Fernandez – CO 770
  • David Amat – CO 855
  • Phillip Dzialo – CO 859
  • Celeste Gagne – CO 860
  • Andrew Sherman – CO 744
• HR2, Inc. d/b/a Simple HR – EL 181
  • Bobby Newman – CO 686
• Quicklease HRS, Inc. – EL 253
  • John Izzo, Controlling Person Applicant 300
• Southern Temporaries of Florida, Inc. (GM) d/b/a Pacesetter Personnel Services-Payroll Services Division – 332
• Kenneth Joekel – CO 790
• Larry Kosta – CO 794

E. Mark Lowrey, Controlling Person Applicant – 404

• Global Employment Solutions PEO, Inc. – GL 8
• Global Employment Solutions PEO VII, Inc. – GL 147
• CoAdvantage Resources, Inc. – GL 82
• CoAdvantage Resources 11, Inc. – GL 69
• CoAdvantage Resources 13, Inc. – GL 36

Mr. Izzo’s application generated a brief discussion because Board members could not immediately find the required insurance information within the application.  After being assured that an insurance certificate had been faxed to the Board, the application was approved.  The applicant was warned to make sure the carrier files the insurance information electronically.  Mr. Lowrey’s controlling person application was approved after it was confirmed he was applying to be controlling person for five different businesses.

 

De Minimis Exemption and Registration Application

After brief Board discussion, a De Minimis exemption and registration application was approved for Checks and Balances, Inc.

One Board member had questions pertaining to the flow of transactions and the simultaneous termination of Checks and Balances’ employee leasing operations.  He wanted to know where the employees were going and whether the few remaining employees would remain as long-term temporary employees.  A representative for Checks and Balances said eight people will be covered in a long-term staffing agreement, and that the departing leased employees had been assigned to another licensed company.

Checks and Balances’ long-term employees would be employed anywhere from three months to a year, the company’s representative added.   The Board members approved the application, saying they were comfortable with it.

 

Change of Ownership Applications

The following change of ownership applications were approved after limited discussion among Board members:

A.  DecisionHR 30, Inc. – GL 57 531

• DecisionHR I, Inc. – GM 116
• DecisionHR, Inc. – GM 232
• DecisionHR V, Inc. – GM 233 
• DecisionHR USA, Inc. – GM 247 

B.  DecisionHR VII, Inc. – GL 133 559 

• DecisionHR IX, Inc. – GM 336
• DecisionHR VIII, Inc. – GM 337 
• DecisionHR XIII, Inc. – GM 338 
• DecisionHR XIV, Inc. – GM 374

It was explained that all the above-listed companies have the same ownership, and that the ownership change is occurring at the parent level.  The company officers are not changing and all are licensed controlling persons.  Board members subsequently approved the ownership changes for all the companies.

 

Termination of Employee Leasing Company Operations

Two employee leasing company operations terminations were approved with little Board discussion:

A.  Checks and Balances, Inc.  (EL)

• Controlling Person Relinquishment – Jana W. Yeates – CO 117

B.  Employee Leasing Services, Inc. – DM 22 618

Board members then heard an update by Board Counsel on the March 2011 Rules Report.  It was explained that two proposed Rules that required Board action within a 90-day period had expired, because the process was stalled by Governor Rick Scott’s Executive Order suspending rulemaking for all agencies under the oversight of the Governor’s office.  The newly-established Office of Fiscal Accountability and Regulatory Reform (“OFARR”) must now review all rules prior to promulgation. 

The proposed Rules are:

•    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”

One Board member wanted to know whether the Board could take a position on pending legislation out of concern that legislative action could be taken to dissolve the Board of Employee Leasing Companies in an effort to deregulate various professions.  The answer was “yes.”

“You can talk to legislative staff about it,” the Board Counsel said.  “You don’t have any paid staff, so that leaves you as individual Board members going to the Legislature or talking to your associations.”

Another Board member also sought information about the process of reviewing financial statements with respect to guarantees.  He said he will ask some questions and report back next month.

With no further business before the Board, the meeting was adjourned.

 

 

Should you have any questions or comments, please contact Colodny Fass.

 

 

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