Florida Regulations 69L-6.012 82

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§ Notice of Election to be Exempt and Revocation of Election to be Exempt by Sole Proprietors, Partners or Corporate Officers.



69L-6.012 Notice of Election to be Exempt.

(1) Certificates of Election to be Exempt issued on or before December 31, 2003, to persons engaged in the construction industry are void on and after January 1, 2004, pursuant to Chapter 2003-412, Laws of Florida. Chapter 2003-422, Laws of Florida, does not affect the provisions of Chapter 2003-412, Laws of Florida, and Chapter 440, F.S., beyond allowing persons engaged in the construction industry to qualify for the issuance of a Certificate of Election to be Exempt, Form DWC-252, if the person is a member and ten percent (10%) owner of a Limited Liability Company created and approved under Chapter 608, F.S.

(2) Legislative changes made through Chapters 2003-412 and 2003-422, Laws of Florida, that are effective January 1, 2004, allow only certain corporate officers engaged in the construction industry to file a Notice of Election to be Exempt and to be issued a valid Certificate of Election to be Exempt, Form DWC-252, as incorporated in paragraph (17)(a) below, by the Department pursuant to Section 440.05, F.S. Only corporate officers who meet the conditions on the issuance of valid exemptions stated in Chapter 440, F.S., and implemented by this rule may file a Notice of Election to be Exempt. Only a business entity organized under Chapter 607 or 617, F.S., will qualify as a corporation for purposes of issuing a Certificate of Election to be Exempt to a corporate officer under this rule. While a limited liability company created and approved under Chapter 608, F.S., is not a corporation for purposes of Chapter 440, F.S., persons engaged in the construction industry who are limited liability company members owning at least ten percent (10%) of the limited liability company qualify as a "corporate officer" and are eligible for the issuance of a Certificate of Election to be Exempt under this rule.

(3) Pursuant to Chapter 2003-412, Laws of Florida, Section 440.05, F.S., does not permit a sole proprietor of a sole proprietorship engaged in the construction industry or a partner in a partnership engaged in the construction industry to file a Notice of Election to be Exempt. Accordingly, the Department shall not issue a Certificate of Election to be Exempt to any sole proprietor or partner on or after January 1, 2004, because they are "employees" who are not eligible to be exempt under section 2 of Chapter 2003-412, Laws of Florida. Beginning January 1, 2004, the Department shall deny any Notice of Election to be Exempt (DWC-250) filed on the basis of the applicant being a sole proprietor of a sole proprietorship engaged in the construction industry or a partner in a partnership engaged in the construction industry.

(4) The Department shall inform the holder of a Certificate of Election to be Exempt that is rendered void pursuant to Chapter 2003-412, Laws of Florida, of the availability of, conditions on, and procedures to obtain a valid corporate officer construction exemption.

(5) The Department shall issue without additional fee a new Certificate of Election to be Exempt to a sole proprietor of a sole proprietorship engaged in the construction industry, a partner in a partnership engaged in the construction industry, or a corporate officer engaged in the construction industry who:

(a) Holds a Certificate of Election to be Exempt issued between January 1, 2002 and December 31, 2003,

(b) Is eligible for the issuance of the Certificate of Election to be Exempt under Chapter 440, F.S., as amended by Chapters 2003-412 and 2003-422, Laws of Florida, and

(c) Files an Application for Re-Issuance of Notice of Election to be Exempt (DWC-250X) as a corporate officer of a corporation engaged in the construction industry in compliance with this rule.

(6) Any Certificate of Election to be Exempt re-issued pursuant to subsection (5) shall be valid only for the unexpired period of the prior Certificate of Election to be Exempt that was re-issued. The re-issued Certificate of Election to be Exempt shall expire on the date that the prior Certificate of Election to be Exempt would have expired.

(7) The Department shall inform an applicant who files a Notice of Election to be Exempt (DWC-250), which is incorporated in Rule 69L-6.009, F.A.C., on the basis that the applicant is a sole proprietor of a construction industry sole proprietorship or a partner in a construction industry partnership of the limitation of construction exemptions pursuant to Chapter 2003-412, Laws of Florida, and the availability of, conditions on, and procedures to obtain a valid corporate officer construction exemption.

(8) Any corporate officer of a construction or non-construction industry corporation, who elects to be exempt from the provisions of the workers' compensation law (Chapter 440, F.S.), shall file with the Division a Notice of Election to be Exempt (DWC-250).

(9) For a corporate officer engaged in the construction industry, the applicant shall attach to or, where appropriate, list on every Notice of Election to be Exempt (DWC-250) the following:

(a) A copy of any occupational license required by the jurisdiction in which the business is located or has employees engaged in work;

(b) A copy of any contractor licensing held by the applicant through a certification or registration issued pursuant to Chapter 489, F.S.;

(c) The Federal Employer Identification Number issued to the corporation or limited liability company, as applicable, named by the corporate officer on the Notice of Election to be Exempt;

(d) The Social Security Number of the applicant;

(e) The Florida Department of State, Division of Corporations, registration number of the corporation or limited liability company, as applicable, named on the Notice of Election to be Exempt;

(f) For corporate officers of a corporation, a copy of the stock certificate(s) issued to the applicant by the corporation named on the Notice of Election to be Exempt evidencing at least ten percent (10%) ownership of the named corporation by the applicant on the date that the Notice of Election to be Exempt is filed with the Department;

(g) For members of a limited liability company, documentation establishing or a notarized statement attesting that the applicant owns at least ten percent (10%) of the limited liability company named on the Notice of Election to be Exempt on the date that the Notice of Election to be Exempt is filed with the Department;

(h) The primary business or trade of the applicant;

(i) The applicant's corporate officer title or member status;

(j) The corporate name, Florida Department of State, Division of Corporations, registration number, and Federal Employer Identification Number of any other corporation(s) that is under the same or substantially the same ownership or control as the corporation named on the Notice of Election to be Exempt. (10) For Notices of Election to be Exempt by a corporate officer or an officer of a corporation, as defined in Section 440.02(9), F.S., if the applicant is in the construction industry and the Department's records show three active Certificates of Election to be Exempt issued to corporate officers of a corporation or of any group of affiliated corporations, the Department shall deny any Notice of Election to be Exempt that would result in more than three active Certificates of Election to be Exempt issued in the name of corporate officers of the corporation or group of affiliated corporations.

(11) For a corporate officer not engaged in the construction industry, the applicant shall attach to or, where applicable, list on every Notice of Election to be Exempt (DWC-250) the following:

(a) A copy of any occupational license required by the jurisdiction in which the business is located or has employees engaged in work;

(b) The Federal Employer Identification Number issued to the corporation named by the corporate officer on the Notice of Election to be Exempt;

(c) The Social Security Number of the applicant;

(d) The Florida Department of State, Division of Corporations, registration number of the corporation named on the Notice of Election to be Exempt;

(e) The applicant's corporate officer title; and

(f) The corporate name, Florida Department of State, Division of Corporations, registration number, and Federal Employer Identification Number of any other corporation(s) in which the applicant has an ownership interest or serves as a corporate officer.

(12) Incomplete Applications, Duplicate Applications.

(a) An applicant shall have thirty days from the date his/her application is mailed or otherwise returned by the Division to the applicant as incomplete in which to file documentation or information which completes the application, at which time the application shall be processed without any additional processing fee.

(b) Except for an Application for Re-issuance of Notice of Election to be Exempt that has been re-issued under subsection (5) of this rule, an application filed by an applicant who has an exemption on file for the same business, which is current at the time a duplicate application is received by the Division, shall be treated as a new application. Any duplicate exemption on file shall be null and void as of the date a new exemption is issued by the Division.

(13) Any corporate officer of a construction corporation, member of a limited liability company, or corporate officer of a non-construction corporation who has been issued an exemption from the provisions of Florida's workers' compensation law (Chapter 440, F.S.), may revoke such exemption by filing with the Division a Revocation of Election to be Exempt (DWC-250-R) as adopted in Rule 69L- 6.009, F.A.C.

(14) Subject to the exceptions listed in Section 440.05(5), F.S., the issue date of any exemption is the date the Certificate of Election to be Exempt is approved and saved to the Coverage Compliance Automated System database of the Department.

(15) Notice of Election to be Exempt (DWC-250), or Revocation of Election to be Exempt (DWC-250-R), shall only be filed by an applicant on the applicant's own behalf.

(16) Any application for exemption or revocation of exemption which is returned to the applicant by the Division, within thirty days after receipt by the Division as incomplete, is not "received" for purposes of Section 440.05(5), F.S.

(17) The following forms are hereby incorporated by reference and can be obtained from the Bureau of Compliance, Division of Workers' Compensation, at www.fldfs/wc/ or from any field office identified in Rule 69L- 6.009, F.A.C.:

(a) Form DWC-252, Certificate of Exemption (revised January 2004).

(b) Form DWC-250X, Application for Re-Issuance of Notice of Election to be Exempt (revised February 2004).

(c) Form DWC-253, Re-issuance of Construction Industry Certificate of Exemption (revised September 2003).

Specific Authority 440.05(9), 440.591 FS. Law Implemented 440.02(15), 440.05 FS. History-New 5-28-91, Amended 2-15-94, 12-28-97, 2-2-00, 9-6-01, Formerly 38F-6.012, Amended 3-26-03, Formerly 4L-6.012, Amended 4-21-04.