HB 113

1	A bill to be entitled
2	An act relating to construction contracting; amending s.
3	255.05, F.S.; making certain restrictions in bonds issued
4	for public works projects unenforceable; amending s.
5	489.118, F.S.; postponing a date for submitting an
6	application for a certificate as a registered contractor;
7	amending ss. 489.129 and 489.533, F.S.; increasing an
8	administrative fine under certain disciplinary proceeding
9	provisions; amending s. 713.015, F.S.; revising form
10	criteria for a direct contract provision; preserving lien
11	and bond rights of certain persons; specifying
12	nonapplication to certain contractors or construction
13	professionals; amending s. 713.02, F.S.; protecting the
14	rights of certain persons to enforce certain contract,
15	lien, or bond remedies or contractual obligations under
16	certain circumstances; precluding certain defenses;
17	amending s. 713.04, F.S.; revising certain final payment
18	requirements; amending s. 713.08, F.S.; requiring a claim
19	of lien to be served on an owner; amending s. 713.13,
20	F.S.; revising provisions authorizing use of certain
21	payment bonds to transfer certain recorded liens;
22	specifying application of certain notice requirements to
23	certain claims; revising time limits for serving certain
24	required notices; amending s. 713.135, F.S.; revising
25	certain notice of commencement and applicability of lien
26	requirements for certain authorities issuing building
27	permits; prohibiting private providers performing
28	inspection services from performing or approving certain
29	inspections under certain circumstances; increasing a
30	threshold amount for certain nonapplication; prohibiting
31	issuing authorities or building officials from requiring
32	recordation of a notice of commencement for certain
33	purposes; authorizing authorities issuing building permits
34	to accept permit applications electronically; requiring an
35	electronic submission statement on the application;
36	requiring provision of Internet access; amending s.
37	713.23, F.S.; clarifying provisions relating to payment
38	bonds;  amending s. 713.24, F.S.; providing construction
39	to preserve county court jurisdiction over certain
40	transfer bond claims for nonpayment; preserving certain
41	lien rights when filing a transfer bond after commencing
42	certain lien enforcement proceedings; amending s. 713.345,
43	F.S.; revising criteria for certain criminal penalties for
44	misapplication of construction funds; amending s.
45	713.3471, F.S.; revising a provision requiring a lender to
46	provide notice to a property owner when making a
47	disbursement on a construction loan secured by residential
48	property; specifying nonapplication; providing an
49	effective date.
50
51	Be It Enacted by the Legislature of the State of Florida:
52
53	Section 1.  Paragraph (a) of subsection (1) of section
54	255.05, Florida Statutes, is amended to read:
55	255.05  Bond of contractor constructing public buildings;
56	form; action by materialmen.--
57	(1)(a)  Any person entering into a formal contract with the
58	state or any county, city, or political subdivision thereof, or
59	other public authority, for the construction of a public
60	building, for the prosecution and completion of a public work,
61	or for repairs upon a public building or public work shall be
62	required, before commencing the work or before recommencing the
63	work after a default or abandonment, to execute, deliver to the
64	public owner, and record in the public records of the county
65	where the improvement is located, a payment and performance bond
66	with a surety insurer authorized to do business in this state as
67	surety. A public entity may not require a contractor to secure a
68	surety bond under this section from a specific agent or bonding
69	company. The bond must state on its front page: the name,
70	principal business address, and phone number of the contractor,
71	the surety, the owner of the property being improved, and, if
72	different from the owner, the contracting public entity; the
73	contract number assigned by the contracting public entity; and a
74	description of the project sufficient to identify it, such as a
75	legal description or the street address of the property being
76	improved, and a general description of the improvement. Such
77	bond shall be conditioned upon the contractor's performance of
78	the construction work in the time and manner prescribed in the
79	contract and promptly making payments to all persons defined in
80	s. 713.01 who furnish labor, services, or materials for the
81	prosecution of the work provided for in the contract. Any
82	claimant may apply to the governmental entity having charge of
83	the work for copies of the contract and bond and shall thereupon
84	be furnished with a certified copy of the contract and bond. The
85	claimant shall have a right of action against the contractor and
86	surety for the amount due him or her, including unpaid finance
87	charges due under the claimant's contract. Such action shall not
88	involve the public authority in any expense. When such work is
89	done for the state and the contract is for $100,000 or less, no
90	payment and performance bond shall be required. At the
91	discretion of the official or board awarding such contract when
92	such work is done for any county, city, political subdivision,
93	or public authority, any person entering into such a contract
94	which is for $200,000 or less may be exempted from executing the
95	payment and performance bond. When such work is done for the
96	state, the Secretary of the Department of Management Services
97	may delegate to state agencies the authority to exempt any
98	person entering into such a contract amounting to more than
99	$100,000 but less than $200,000 from executing the payment and
100	performance bond. In the event such exemption is granted, the
101	officer or officials shall not be personally liable to persons
102	suffering loss because of granting such exemption. The
103	Department of Management Services shall maintain information on
104	the number of requests by state agencies for delegation of
105	authority to waive the bond requirements by agency and project
106	number and whether any request for delegation was denied and the
107	justification for the denial. Any provision in a payment bond
108	furnished for public work contracts as provided by this
109	subsection which restricts the classes of persons as defined in
110	s. 713.01 protected by the bond or the venue of any proceeding
111	relating to such bond is unenforceable.
112	Section 2.  Section 489.118, Florida Statutes, is amended
113	to read:
114	489.118  Certification of registered contractors;
115	grandfathering provisions.--The board shall, upon receipt of a
116	completed application and appropriate fee, issue a certificate
117	in the appropriate category to any contractor registered under
118	this part who makes application to the board and can show that
119	he or she meets each of the following requirements:
120	(1)  Currently holds a valid registered local license in
121	one of the contractor categories defined in s. 489.105(3)(a)-
122	(p).
123	(2)  Has, for that category, passed a written examination
124	that the board finds to be substantially similar to the
125	examination required to be licensed as a certified contractor
126	under this part. For purposes of this subsection, a written,
127	proctored examination such as that produced by the National
128	Assessment Institute, Block and Associates, NAI/Block, Experior
129	Assessments, Professional Testing, Inc., or Assessment Systems,
130	Inc., shall be considered to be substantially similar to the
131	examination required to be licensed as a certified contractor.
132	The board may not impose or make any requirements regarding the
133	nature or content of these cited examinations.
134	(3)  Has at least 5 years of experience as a contractor in
135	that contracting category, or as an inspector or building
136	administrator with oversight over that category, at the time of
137	application. For contractors, only time periods in which the
138	contractor license is active and the contractor is not on
139	probation shall count toward the 5 years required by this
140	subsection.
141	(4)  Has not had his or her contractor's license revoked at
142	any time, had his or her contractor's license suspended within
143	the last 5 years, or been assessed a fine in excess of $500
144	within the last 5 years.
145	(5)  Is in compliance with the insurance and financial
146	responsibility requirements in s. 489.115(5).
147
148	Applicants wishing to obtain a certificate pursuant to this
149	section must make application by November 1, 2005 2004.
150	Section 3.  Subsection (1) of section 489.129, Florida
151	Statutes, is amended to read:
152	489.129  Disciplinary proceedings.--
153	(1)  The board may take any of the following actions
154	against any certificateholder or registrant: place on probation
155	or reprimand the licensee, revoke, suspend, or deny the issuance
156	or renewal of the certificate, registration, or certificate of
157	authority, require financial restitution to a consumer for
158	financial harm directly related to a violation of a provision of
159	this part, impose an administrative fine not to exceed $10,000
160	$5,000 per violation, require continuing education, or assess
161	costs associated with investigation and prosecution, if the
162	contractor, financially responsible officer, or business
163	organization for which the contractor is a primary qualifying
164	agent, a financially responsible officer, or a secondary
165	qualifying agent responsible under s. 489.1195 is found guilty
166	of any of the following acts:
167	(a)  Obtaining a certificate, registration, or certificate
168	of authority by fraud or misrepresentation.
169	(b)  Being convicted or found guilty of, or entering a plea
170	of nolo contendere to, regardless of adjudication, a crime in
171	any jurisdiction which directly relates to the practice of
172	contracting or the ability to practice contracting.
173	(c)  Violating any provision of chapter 455.
174	(d)  Performing any act which assists a person or entity in
175	engaging in the prohibited uncertified and unregistered practice
176	of contracting, if the certificateholder or registrant knows or
177	has reasonable grounds to know that the person or entity was
178	uncertified and unregistered.
179	(e)  Knowingly combining or conspiring with an uncertified
180	or unregistered person by allowing his or her certificate,
181	registration, or certificate of authority to be used by the
182	uncertified or unregistered person with intent to evade the
183	provisions of this part. When a certificateholder or registrant
184	allows his or her certificate or registration to be used by one
185	or more business organizations without having any active
186	participation in the operations, management, or control of such
187	business organizations, such act constitutes prima facie
188	evidence of an intent to evade the provisions of this part.
189	(f)  Acting in the capacity of a contractor under any
190	certificate or registration issued hereunder except in the name
191	of the certificateholder or registrant as set forth on the
192	issued certificate or registration, or in accordance with the
193	personnel of the certificateholder or registrant as set forth in
194	the application for the certificate or registration, or as later
195	changed as provided in this part.
196	(g)  Committing mismanagement or misconduct in the practice
197	of contracting that causes financial harm to a customer.
198	Financial mismanagement or misconduct occurs when:
199	1.  Valid liens have been recorded against the property of
200	a contractor's customer for supplies or services ordered by the
201	contractor for the customer's job; the contractor has received
202	funds from the customer to pay for the supplies or services; and
203	the contractor has not had the liens removed from the property,
204	by payment or by bond, within 75 days after the date of such
205	liens;
206	2.  The contractor has abandoned a customer's job and the
207	percentage of completion is less than the percentage of the
208	total contract price paid to the contractor as of the time of
209	abandonment, unless the contractor is entitled to retain such
210	funds under the terms of the contract or refunds the excess
211	funds within 30 days after the date the job is abandoned; or
212	3.  The contractor's job has been completed, and it is
213	shown that the customer has had to pay more for the contracted
214	job than the original contract price, as adjusted for subsequent
215	change orders, unless such increase in cost was the result of
216	circumstances beyond the control of the contractor, was the
217	result of circumstances caused by the customer, or was otherwise
218	permitted by the terms of the contract between the contractor
219	and the customer.
220	(h)  Being disciplined by any municipality or county for an
221	act or violation of this part.
222	(i)  Failing in any material respect to comply with the
223	provisions of this part or violating a rule or lawful order of
224	the board.
225	(j)  Abandoning a construction project in which the
226	contractor is engaged or under contract as a contractor. A
227	project may be presumed abandoned after 90 days if the
228	contractor terminates the project without just cause or without
229	proper notification to the owner, including the reason for
230	termination, or fails to perform work without just cause for 90
231	consecutive days.
232	(k)  Signing a statement with respect to a project or
233	contract falsely indicating that the work is bonded; falsely
234	indicating that payment has been made for all subcontracted
235	work, labor, and materials which results in a financial loss to
236	the owner, purchaser, or contractor; or falsely indicating that
237	workers' compensation and public liability insurance are
238	provided.
239	(l)  Committing fraud or deceit in the practice of
240	contracting.
241	(m)  Committing incompetency or misconduct in the practice
242	of contracting.
243	(n)  Committing gross negligence, repeated negligence, or
244	negligence resulting in a significant danger to life or
245	property.
246	(o)  Proceeding on any job without obtaining applicable
247	local building department permits and inspections.
248	(p)  Intimidating, threatening, coercing, or otherwise
249	discouraging the service of a notice to owner under part I of
250	chapter 713 or a notice to contractor under chapter 255 or part
251	I of chapter 713.
252	(q)  Failing to satisfy within a reasonable time, the terms
253	of a civil judgment obtained against the licensee, or the
254	business organization qualified by the licensee, relating to the
255	practice of the licensee's profession.
256
257	For the purposes of this subsection, construction is considered
258	to be commenced when the contract is executed and the contractor
259	has accepted funds from the customer or lender. A contractor
260	does not commit a violation of this subsection when the
261	contractor relies on a building code interpretation rendered by
262	a building official or person authorized by s. 553.80 to enforce
263	the building code, absent a finding of fraud or deceit in the
264	practice of contracting, or gross negligence, repeated
265	negligence, or negligence resulting in a significant danger to
266	life or property on the part of the building official, in a
267	proceeding under chapter 120.
268	Section 4.  Paragraph (c) of subsection (2) of section
269	489.533, Florida Statutes, is amended to read:
270	489.533  Disciplinary proceedings.--
271	(2)  When the board finds any applicant, contractor, or
272	business organization for which the contractor is a primary
273	qualifying agent or secondary qualifying agent responsible under
274	s. 489.522 guilty of any of the grounds set forth in subsection
275	(1), it may enter an order imposing one or more of the following
276	penalties:
277	(c)  Imposition of an administrative fine not to exceed
278	$10,000 $5,000 for each count or separate offense.
279	Section 5.  Section 713.015, Florida Statutes, is amended
280	to read:
281	713.015  Mandatory provisions for direct contracts.--Any
282	direct contract between an owner and a contractor, related to
283	improvements to real property consisting of single or multiple
284	family dwellings up to and including four units, must contain
285	the following provision printed in no less than 14-point 18-
286	point, capitalized, boldfaced type on the front page of the
287	contract:
288
289	ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-
290	713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR
291	PROVIDE MATERIALS AND ARE NOT PAID IN FULL HAVE A RIGHT TO
292	ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS
293	CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR CONTRACTOR OR A
294	SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB-SUBCONTRACTORS,
295	OR MATERIAL SUPPLIERS OR NEGLECTS TO MAKE OTHER LEGALLY REQUIRED
296	PAYMENTS, THE PEOPLE WHO ARE OWED MONEY MAY LOOK TO YOUR
297	PROPERTY FOR PAYMENT, EVEN IF YOU HAVE ALREADY PAID YOUR
298	CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR, YOUR
299	CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR PROPERTY. THIS MEANS IF
300	A LIEN IS FILED YOUR PROPERTY COULD BE SOLD AGAINST YOUR WILL TO
301	PAY FOR LABOR, MATERIALS, OR OTHER SERVICES THAT YOUR CONTRACTOR
302	OR A SUBCONTRACTOR MAY HAVE FAILED TO PAY. TO PROTECT YOURSELF,
303	YOU SHOULD STIPULATE IN THIS CONTRACT THAT BEFORE ANY PAYMENT IS
304	MADE, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH A WRITTEN
305	RELEASE OF LIEN FROM ANY PERSON OR COMPANY THAT HAS PROVIDED TO
306	YOU A "NOTICE TO OWNER." FLORIDA'S CONSTRUCTION LIEN LAW IS
307	COMPLEX AND IT IS RECOMMENDED THAT WHENEVER A SPECIFIC PROBLEM
308	ARISES, YOU CONSULT AN ATTORNEY.
309
310	Nothing in this section shall be construed to adversely affect
311	the lien and bond rights of lienors who are not in privity with
312	the owner. This section does not apply when the owner is a
313	contractor licensed under chapter 489 or is a person who created
314	parcels or offers parcels for sale or lease in the ordinary
315	course of business.
316	Section 6.  Subsection (7) of section 713.02, Florida
317	Statutes, is amended to read:
318	713.02  Types of lienors and exemptions.--
319	(7)  Notwithstanding any other provision of this part, no
320	lien shall exist in favor of any contractor, subcontractor, or
321	sub-subcontractor who is unlicensed as provided in s. 489.128 or
322	s. 489.532. Notwithstanding any other provision of this part, if
323	a contract is rendered unenforceable by an unlicensed
324	contractor, subcontractor, or sub-subcontractor pursuant to s.
325	489.128 or s. 489.532, such unenforceability shall not affect
326	the rights of any other persons to enforce contract, lien, or
327	bond remedies and shall not affect the obligations of a surety
328	that has provided a bond on behalf of the unlicensed contractor,
329	subcontractor, or sub-subcontractor. It shall not be a defense
330	to any claim on a bond or indemnity agreement that the principal
331	or indemnitor is unlicensed as provided in s. 489.128 or s.
332	489.532.
333	Section 7.  Subsection (3) of section 713.04, Florida
334	Statutes, is amended, and subsection (4) is added to said
335	section, to read:
336	713.04  Subdivision improvements.--
337	(3)  The owner shall not pay any money on account of a
338	direct contract before actual furnishing of labor and services
339	or materials for subdivision improvements. Any The payment not
340	complying with such requirement shall not qualify as a proper
341	payment under this chapter section.
342	(4)  The owner shall make final payment on account of a
343	direct contract only after the contractor complies with s.
344	713.06(3)(d). Any payment not complying with such requirement
345	shall not qualify as a proper payment under this chapter.
346	Section 8.  Paragraph (c) of subsection (4) of section
347	713.08, Florida Statutes, is amended to read:
348	713.08  Claim of lien.--
349	(4)
350	(c)  The claim of lien shall be served on the owner.
351	Failure to serve any claim of lien in the manner provided in s.
352	713.18 before recording or within 15 days after recording shall
353	render the claim of lien voidable to the extent that the failure
354	or delay is shown to have been prejudicial to any person
355	entitled to rely on the service.
356	Section 9.  Paragraph (e) of subsection (1) of section
357	713.13, Florida Statutes, is amended to read:
358	713.13  Notice of commencement.--
359	(1)
360	(e)  A copy of any payment bond must be attached at the
361	time of recordation of the notice of commencement. The failure
362	to attach a copy of the bond to the notice of commencement when
363	the notice is recorded negates the exemption provided in s.
364	713.02(6). However, if such a payment bond under s. 713.23
365	exists but was is not attached at the time of recordation of the
366	notice of commencement, the bond may be used to transfer any
367	recorded lien of a lienor except that of the contractor by the
368	recordation and service of a notice of bond pursuant to s.
369	713.23(2). The notice requirements of s. 713.23 apply to any
370	claim against the bond; however, the time limits for serving any
371	required notices shall begin running from the later of the time
372	specified in s. 713.23 or the date the notice of bond is served
373	on the lienor recorded, the bond may be used as a transfer bond
374	pursuant to s. 713.24.
375	Section 10.  Paragraphs (b) and (d) of subsection (1) and
376	subsections (4) and (6) of section 713.135, Florida Statutes,
377	are amended, and paragraph (e) is added to subsection (1) of
378	said section, to read:
379	713.135  Notice of commencement and applicability of
380	lien.--
381	(1)  When any person applies for a building permit, the
382	authority issuing such permit shall:
383	(b)  Provide the applicant and the owner of the real
384	property upon which improvements are to be constructed with a
385	printed statement stating that the right, title, and interest of
386	the person who has contracted for the improvement may be subject
387	to attachment under the Construction Lien Law. The Department of
388	Business and Professional Regulation shall furnish, for
389	distribution, the statement described in this paragraph, and the
390	statement must be a summary of the Construction Lien Law and
391	must include an explanation of the provisions of the
392	Construction Lien Law relating to the recording, and the posting
393	of copies, of notices of commencement and a statement
394	encouraging the owner to record a notice of commencement and
395	post a copy of the notice of commencement in accordance with s.
396	713.13. The statement must also contain an explanation of the
397	owner's rights if a lienor fails to furnish the owner with a
398	notice as provided in s. 713.06(2) and an explanation of the
399	owner's rights as provided in s. 713.22. The authority that
400	issues the building permit must obtain from the Department of
401	Business and Professional Regulation the statement required by
402	this paragraph and must mail, deliver by electronic mail or
403	other electronic format or facsimile, or personally deliver that
404	statement to the owner or, in a case in which the owner is
405	required to personally appear to obtain the permit, provide that
406	statement to any owner making improvements to real property
407	consisting of a single or multiple family dwelling up to and
408	including four units. However, the failure by the authorities to
409	provide the summary does not subject the issuing authority to
410	liability.
411	(d)  Furnish to the applicant two or more copies of a form
412	of notice of commencement conforming with s. 713.13. If the
413	direct contract is greater than $2,500, the applicant shall file
414	with the issuing authority prior to the first inspection either
415	a certified copy of the recorded notice of commencement or a
416	notarized statement that the notice of commencement has been
417	filed for recording, along with a copy thereof. In the absence
418	of the filing of a certified copy of the recorded notice of
419	commencement, the issuing authority or a private provider
420	performing inspection services may shall not perform or approve
421	subsequent inspections until the applicant files by mail,
422	facsimile, hand delivery, or any other means such certified copy
423	with the issuing authority. The certified copy of the notice of
424	commencement must contain the name and address of the owner, the
425	name and address of the contractor, and the location or address
426	of the property being improved. The issuing authority shall
427	verify that the name and address of the owner, the name of the
428	contractor, and the location or address of the property being
429	improved which is contained in the certified copy of the notice
430	of commencement is consistent with the information in the
431	building permit application. The issuing authority shall provide
432	the recording information on the certified copy of the recorded
433	notice of commencement to any person upon request. This
434	subsection does not require the recording of a notice of
435	commencement prior to the issuance of a building permit. If a
436	local government requires a separate permit or inspection for
437	installation of temporary electrical service or other temporary
438	utility service, land clearing, or other preliminary site work,
439	such permits may be issued and such inspections may be conducted
440	without providing the issuing authority with a certified copy of
441	a recorded notice of commencement or a notarized statement
442	regarding a recorded notice of commencement. This subsection
443	does not apply to a direct contract to repair or replace an
444	existing heating or air-conditioning system in an amount less
445	than $7,500 $5,000.
446	(e)  An issuing authority or building official may not
447	require that a notice of commencement be recorded as a condition
448	of the application, processing, or issuance of a building
449	permit. However, this paragraph does not modify or waive the
450	inspection requirements set forth in this subsection.
451	(4)  The several boards of county commissioners, municipal
452	councils, or other similar bodies may by ordinance or resolution
453	establish reasonable fees for furnishing copies of the forms and
454	the printed statement provided in paragraphs paragraph (1)(b)
455	and (d) in an amount not to exceed $5 to be paid by the
456	applicant for each permit in addition to all other costs of the
457	permit; however, no forms or statement need be furnished,
458	mailed, or otherwise provided to, nor may such additional fee be
459	obtained from, applicants for permits in those cases in which
460	the owner of a legal or equitable interest (including that of
461	ownership of stock of a corporate landowner) of the real
462	property to be improved is engaged in the business of
463	construction of buildings for sale to others and intends to make
464	the improvements authorized by the permit on the property and
465	upon completion will offer the improved real property for sale.
466	(6)(a)  In addition to any other information required by
467	the authority issuing the permit, the building permit
468	application must be in substantially the following form:
469
470	Tax Folio No.__________
471	BUILDING PERMIT APPLICATION
472
473	Owner's Name
474	Owner's Address
475	Fee Simple Titleholder's Name (If other than owner)
476	Fee Simple Titleholder's Address (If other than owner)
477	City
478	State_______________ Zip_______________
479	Contractor's Name
480	Contractor's Address
481	City
482	State_______________ Zip_______________
483	Job Name
484	Job Address
485	City____________________County_______________
486	Legal Description
487	Bonding Company
488	Bonding Company Address
489	City____________________ State_______________
490	Architect/Engineer's Name
491	Architect/Engineer's Address
492	Mortgage Lender's Name
493	Mortgage Lender's Address
494
495	Application is hereby made to obtain a permit to do the
496	work and installations as indicated. I certify that no work or
497	installation has commenced prior to the issuance of a permit and
498	that all work will be performed to meet the standards of all
499	laws regulating construction in this jurisdiction. I understand
500	that a separate permit must be secured for ELECTRICAL WORK,
501	PLUMBING, SIGNS, WELLS, POOLS, FURNACES, BOILERS, HEATERS,
502	TANKS, and AIR CONDITIONERS, etc.
503
504	OWNER'S AFFIDAVIT: I certify that all the foregoing information
505	is accurate and that all work will be done in compliance with
506	all applicable laws regulating construction and zoning.
507
508
509	WARNING TO OWNER: YOUR FAILURE TO RECORD A NOTICE OF
510	COMMENCEMENT MAY RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS TO
511	YOUR PROPERTY.
512
513
514	IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR
515	AN ATTORNEY BEFORE RECORDING YOUR NOTICE OF COMMENCEMENT.
516
517	(Signature of Owner or Agent)
518	(including contractor)
519	STATE OF FLORIDA
520	COUNTY OF _____
521
522
523	Sworn to (or affirmed) and subscribed before me this _____
524	day of _____,   (year)  , by   (name of person making statement)
525	.
526
527	(Signature of Notary Public - State of Florida)
528	(Print, Type, or Stamp Commissioned Name of Notary Public)
529
530	Personally Known _____ OR Produced Identification _____
531
532	Type of Identification Produced_______________
533	(Signature of Contractor)
534
535
536	STATE OF FLORIDA
537	COUNTY OF _____
538
539
540	Sworn to (or affirmed) and subscribed before me this _____
541	day of _____,   (year)  , by   (name of person making statement)
542	.
543
544	(Signature of Notary Public - State of Florida)
545	(Print, Type, or Stamp Commissioned Name of Notary Public)
546
547	Personally Known _____ OR Produced Identification _____
548
549	Type of Identification Produced_______________
550
551	(Certificate of Competency Holder)
552
553	Contractor's State Certification or Registration No._____
554
555	Contractor's Certificate of Competency No.__________
556
557	APPLICATION APPROVED BY
558	____________________Permit Officer
559	(b)  Consistent with the requirements of paragraph (a), an
560	authority responsible for issuing building permits under this
561	section may accept a building permit application in an
562	electronic format, as prescribed by the authority. Building
563	permit applications submitted to the authority electronically
564	must contain the following additional statement:
565
566	OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of
567	perjury, I declare that all the information contained in
568	this building permit application is true and correct.
569
570	(c)  An authority responsible for issuing building permit
571	applications which accepts building permit applications in an
572	electronic format shall provide public Internet access to the
573	electronic building permit applications in a searchable format.
574	Section 11.  Paragraph (e) of subsection (1) of section
575	713.23, Florida Statutes, is amended to read:
576	713.23  Payment bond.--
577	(1)
578	(e)  No action for the labor or materials or supplies may
579	be instituted or prosecuted against the contractor or surety
580	unless both notices have been given. No action shall be
581	instituted or prosecuted against the contractor or against the
582	surety on the bond under this section after 1 year from the
583	performance of the labor or completion of delivery of the
584	materials and supplies. The time period for bringing an action
585	against the contractor or surety on the bond shall be measured
586	from the last day of furnishing labor, services, or materials by
587	the lienor and shall not be measured by other standards, such as
588	the issuance of a certificate of occupancy or the issuance of a
589	certificate of substantial completion. A contractor or the
590	contractor's agent or attorney may elect to shorten the
591	prescribed time within which an action to enforce any claim
592	against a payment bond provided under pursuant to this section
593	or s. 713.245 may be commenced at any time after a notice of
594	nonpayment, if required, has been served for the claim by
595	recording in the clerk's office a notice in substantially the
596	following form:
597
598	NOTICE OF CONTEST OF CLAIM
599	AGAINST PAYMENT BOND
600
601	To:    (Name and address of lienor)
602	You are notified that the undersigned contests your notice
603	of nonpayment, dated _____, _____, and served on the undersigned
604	on _____, _____, and that the time within which you may file
605	suit to enforce your claim is limited to 60 days from the date
606	of service of this notice.
607
608	DATED on _____, _____.
609
610	Signed:   (Contractor or Attorney)
611
612
613	The claim of any lienor upon whom the such notice is served and
614	who fails to institute a suit to enforce his or her claim
615	against the payment bond within 60 days after service of the
616	such notice shall be extinguished automatically. The clerk shall
617	mail a copy of the notice of contest to the lienor at the
618	address shown in the notice of nonpayment or most recent
619	amendment thereto and shall certify to such service on the face
620	of the such notice and record the notice. Service is complete
621	upon mailing.
622	Section 12.  Subsections (3) and (4) of section 713.24,
623	Florida Statutes, are amended to read:
624	713.24  Transfer of liens to security.--
625	(3)  Any party having an interest in such security or the
626	property from which the lien was transferred may at any time,
627	and any number of times, file a complaint in chancery in the
628	circuit court of the county where such security is deposited, or
629	file a motion in a pending action to enforce a lien, for an
630	order to require additional security, reduction of security,
631	change or substitution of sureties, payment of discharge
632	thereof, or any other matter affecting said security. If the
633	court finds that the amount of the deposit or bond in excess of
634	the amount claimed in the claim of lien is insufficient to pay
635	the lienor's attorney's fees and court costs incurred in the
636	action to enforce the lien, the court must increase the amount
637	of the cash deposit or lien transfer bond. Nothing in this
638	section shall be construed to vest exclusive jurisdiction in the
639	circuit courts over transfer bond claims for nonpayment of an
640	amount within the monetary jurisdiction of the county courts.
641	(4)  If a proceeding to enforce a transferred lien is not
642	commenced within the time specified in s. 713.22 or if it
643	appears that the transferred lien has been satisfied of record,
644	the clerk shall return said security upon request of the person
645	depositing or filing the same, or the insurer. If a proceeding
646	to enforce a lien is commenced in a court of competent
647	jurisdiction within the time specified in s. 713.22 and, during
648	such proceeding, the lien is transferred pursuant to this
649	section or s. 713.13(1)(e), an action commenced within 1 year
650	after the transfer, unless otherwise shortened by operation of
651	law, in the same county or circuit court to recover against the
652	security shall be deemed to have been brought as of the date of
653	filing the action to enforce the lien, and the court shall have
654	jurisdiction over the action.
655	Section 13.  Paragraph (b) of subsection (1) of section
656	713.345, Florida Statutes, is amended to read:
657	713.345  Moneys received for real property improvements;
658	penalty for misapplication.--
659	(1)
660	(b)  Any person who knowingly and intentionally fails to
661	comply with paragraph (a) is guilty of misapplication of
662	construction funds, punishable as follows:
663	1.  If the amount of payments misapplied has an aggregate
664	value of $100,000 or more, the violator is guilty of a felony of
665	the first degree, punishable as provided in s. 775.082, s.
666	775.083, or s. 775.084.
667	2.  If the amount of payments misapplied has an aggregate
668	value of $1,000 $20,000 or more but less than $100,000, the
669	violator is guilty of a felony of the second degree, punishable
670	as provided in s. 775.082, s. 775.083, or s. 775.084.
671	3.  If the amount of payments misapplied has an aggregate
672	value of less than $1,000 $20,000, the violator is guilty of a
673	felony of the third degree, punishable as provided in s.
674	775.082, s. 775.083, or s. 775.084.
675	Section 14.  Subsection (1) of section 713.3471, Florida
676	Statutes, is amended to read:
677	713.3471  Lender responsibilities with construction
678	loans.--
679	(1)  Prior to a lender making any loan disbursement on any
680	construction loan secured by residential real property directly
681	to the owner, which, for purposes of this subsection, means only
682	a natural person, into the owner's account or accounts, or
683	jointly to the owner and any other party, the lender shall mail,
684	deliver by electronic mail or other electronic format or
685	facsimile, or personally deliver give the following written
686	notice to the borrowers in bold type larger than any other type
687	on the page:
688
689	WARNING!
690
691	YOUR LENDER IS MAKING A LOAN DISBURSEMENT DIRECTLY TO YOU
692	AS THE BORROWER, OR JOINTLY TO YOU AND ANOTHER PARTY. TO
693	PROTECT YOURSELF FROM HAVING TO PAY TWICE FOR THE SAME
694	LABOR, SERVICES, OR MATERIALS USED IN MAKING THE
695	IMPROVEMENTS TO YOUR PROPERTY, BE SURE THAT YOU REQUIRE
696	YOUR CONTRACTOR TO GIVE YOU LIEN RELEASES FROM EACH LIENOR
697	WHO HAS SENT YOU A NOTICE TO OWNER EACH TIME YOU MAKE A
698	PAYMENT TO YOUR CONTRACTOR.
699
700	This subsection does not apply when the owner is a contractor
701	licensed under chapter 489 or is a person who creates parcels or
702	offer parcels for sale or lease in the ordinary course of
703	business.
704	Section 15.  This act shall take effect October 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.