61G7-5.005: Deficiency in Tangible Accounting Net Worth; Guaranty Form Acceptable to Board; Sufficient Evidence of Guarantor's Adequate Resources
PURPOSE AND EFFECT: To correct typographical errors and clarify the requirements for applicants seeking initial or renewal licensure.
SUMMARY: proposed rule clarifies the use of guaranties and irrevocable letters of credit by initial and renewal licensure applicants seeking to offset deficiencies in tangible accounting net worth, accounting net worth, and working capital.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 468.522, 468.525(3)(d) FS.
LAW IMPLEMENTED: 468.525(3) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Richard Morrison, Executive Director, Board of Employee Leasing Companies, 1940 North Monroe Street, Tallahassee, Florida 32399-0767
THE FULL TEXT OF THE PROPOSED RULE IS:
61G7-5.005 Deficiency in Tangible Accounting and Accounting Net Worth; Guaranty Form Acceptable to Board; Sufficient Evidence of Guarantor’s Adequate Resources.
(1) When an applicant chooses to have a guaranty to offset any deficiency in tangible accounting net worth regarding an initial application, accounting net worth, or working capital regarding a renewal application, such guaranty shall be made on Form DBPR EL 4505, entitled “Board Approved Guaranty Form,” effective 3-18-04, which is incorporated herein by reference and available from the Board at 1940 North Monroe Street, Tallahassee, Florida 32399-0750, and from its Website located at www.myflorida.com,. and Ssuch guaranty shall be irrevocable until such time that the deficiency causing the guaranty has been corrected.
(2) Initial aApplicants and licensed employee leasing companies who submit a guaranty in accordance with subsection (1) shall also show that the guarantor has adequate resources to satisfy the obligation of the guaranty. Upon the Board’s finding that the guarantor’s resources and the guaranty are acceptable, the applicant or licensed employee leasing company shall provide the original guaranty to the Board to keep with the leasing company’s file.
(3) When an initial applicant or a licensed leased employee leasing company chooses to submit an irrevocable letter of credit to offset any deficiency in tangible accounting net worth regarding an initial applicant, accounting net worth work, or net working capital regarding a licensed employee leasing company, such irrevocable letter of credit is acceptable so long as:
(a) through (c) No change
Specific Authority 468.522, 468.525(3)(d) FS. Law Implemented 468.525(3) FS. History–New 9-6-93, Amended 5-29-94, 5-26-96, 9-5-04,_________.