HB 1005

1	A bill to be entitled
2	An act relating to construction contracting; amending s.
3	489.105, F.S.; providing that the term "initial issuance"
4	no longer refers to a business organization; amending s.
5	489.109, F.S.; deleting a fee relating to transfer of a
6	certificate of authority; amending s. 489.114, F.S.;
7	providing that demonstration of workers' compensation
8	coverage is required for both certification and
9	registration of building contractors; removing reference
10	to certificate of authority; amending s. 489.115, F.S.;
11	deleting the requirement for the Construction Industry
12	Licensing Board to determine financial responsibility of
13	applicants for initial licensure based upon submission of
14	certain documents; providing for applicability of certain
15	continuing education courses for certain dually licensed
16	contractors; revising requirements for criminal history
17	background checks; deleting requirement for the Department
18	of Business and Professional Regulation to submit requests
19	for criminal history records checks; requiring applicant
20	to submit fingerprint cards through authorized agencies or
21	vendors; requiring such agencies or vendors to pay for
22	processing and costs; providing for review of results by
23	department and board; providing for use of information by
24	the board in determination of licensure qualification;
25	requiring submission of bond as prerequisite for initial
26	certification or registration; providing for amount of and
27	requirements for such bond; requiring the bond to remain
28	in force unless license is revoked or becomes inactive;
29	providing for bringing actions on the bond or letter of
30	credit for damages; providing timeframe for such actions;
31	providing that failure to maintain bond results in
32	placement of license on inactive status and possible
33	disciplinary action; providing for bond cancellation by
34	surety; providing requirement for notification to the
35	department by surety; providing continuation of bond
36	coverage for period of time after cancellation notice;
37	requiring that surety bond be assigned to the state;
38	providing that irrevocable letter of credit may be used in
39	lieu of a bond; providing for the amount of such letter of
40	credit; requiring the irrevocable letter of credit be
41	assigned to the department; providing for the collection
42	of interest on the letter of credit; providing for payment
43	from the letter or credit by department based on certain
44	judgments or orders; providing timeframe for such claims;
45	amending s. 489.119, F.S.; requiring an applicant apply to
46	qualify a business organization; removing requirement for
47	a business organization to apply for a certificate of
48	authority; deleting requirements for applications for a
49	financially responsible officer and for secondary
50	qualifying agent; providing grounds for denial of
51	application to qualify business organization; removing
52	references to and requirements for a certificate of
53	authority; providing requirements for qualifying agent;
54	amending ss. 489.1195 and 489.127, F.S.; making conforming
55	changes; amending s. 489.128, F.S.; providing clarifying
56	language related to contracts; making conforming changes;
57	amending s. 489.129, F.S.; making conforming changes;
58	adding requirement for a surety bond or irrevocable letter
59	of credit to disciplinary actions available to the board;
60	amending s. 489.132, F.S.; making conforming changes;
61	amending s. 489.140, F.S.; providing a time certain for
62	ending funding of the Florida Homeowners' Construction
63	Recovery Fund; providing that all funds remaining at the
64	time be transferred to the board for certain uses;
65	amending s. 489.1401, F.S.; providing legislative intent
66	with respect to the recovery fund; providing an effective
67	date.
68
69	Be It Enacted by the Legislature of the State of Florida:
70
71	Section 1.  Subsection (19) of section 489.105, Florida
72	Statutes, is amended to read:
73	489.105  Definitions.--As used in this part:
74	(19)  "Initial issuance" means the first time a certificate
75	or registration is granted to an individual or business
76	organization, including the first time an individual becomes a
77	qualifying agent for a that business organization and the first
78	time a business organization is qualified by that individual.
79	Section 2.  Paragraphs (d) through (g) of subsection (1) of
80	section 489.109, Florida Statutes, are amended to read:
81	489.109  Fees.--
82	(1)  The board, by rule, shall establish reasonable fees to
83	be paid for applications, certification and renewal,
84	registration and renewal, and recordmaking and recordkeeping.
85	The fees shall be established as follows:
86	(d)  The board, by rule, may establish a fee for transfer
87	of a certificate of authority from one business organization to
88	another, not to exceed the applicable renewal fee.
89	(d)(e)  The board, by rule, shall impose a renewal fee for
90	an inactive status certificate or registration, not to exceed
91	the renewal fee for an active status certificate or
92	registration. Neither the inactive certification fee nor the
93	inactive registration fee may exceed $50. The board, by rule,
94	may provide for a different fee for inactive status where such
95	status is sought by a building code administrator, plans
96	examiner, or inspector certified pursuant to part XII of chapter
97	468 who is employed by a local government and is not allowed by
98	the terms of such employment to maintain a certificate on active
99	status issued pursuant to this part.
100	(e)(f)  The board, by rule, shall impose an additional late
101	fee on a delinquent status certificateholder or registrant when
102	such certificateholder or registrant applies for active or
103	inactive status.
104	(f)(g)  The board, by rule, shall impose an additional fee,
105	not to exceed the applicable renewal fee, which reasonably
106	reflects the costs of processing a certificateholder's or
107	registrant's request to change licensure status at any time
108	other than at the beginning of a licensure cycle.
109	Section 3.  Section 489.114, Florida Statutes, is amended
110	to read:
111	489.114  Evidence of workers' compensation
112	coverage.--Except as provided in s. 489.115(5)(c)(d), any
113	person, business organization, or qualifying agent engaged in
114	the business of contracting in this state and certified or
115	registered under this part shall, as a condition precedent to
116	the issuance or renewal of a certificate or, registration, or
117	certificate of authority of the contractor, provide to the
118	Construction Industry Licensing Board, as provided by board
119	rule, evidence of workers' compensation coverage pursuant to
120	chapter 440. In the event that the Division of Workers'
121	Compensation of the Department of Financial Services receives
122	notice of the cancellation of a policy of workers' compensation
123	insurance insuring a person or entity governed by this section,
124	the Division of Workers' Compensation shall certify and identify
125	all persons or entities by certification or registration license
126	number to the department after verification is made by the
127	Division of Workers' Compensation that persons or entities
128	governed by this section are no longer covered by workers'
129	compensation insurance. Such certification and verification by
130	the Division of Workers' Compensation may result from records
131	furnished to the Division of Workers' Compensation by the
132	persons or entities governed by this section or an investigation
133	completed by the Division of Workers' Compensation. The
134	department shall notify the persons or entities governed by this
135	section who have been determined to be in noncompliance with
136	chapter 440, and the persons or entities notified shall provide
137	certification of compliance with chapter 440 to the department
138	and pay an administrative fine in the amount of $500. The
139	failure to maintain workers' compensation coverage as required
140	by law shall be grounds for the board to revoke, suspend, or
141	deny the issuance or renewal of a certificate or, registration,
142	or certificate of authority of the contractor under the
143	provisions of s. 489.129.
144	Section 4.  Paragraphs (b), (c), and (d) of subsection (5)
145	and subsections (6) through (9) of section 489.115, Florida
146	Statutes, are amended to read:
147	489.115  Certification and registration; endorsement;
148	reciprocity; renewals; continuing education.--
149	(5)
150	(b)  In addition to the affidavit of insurance, as a
151	prerequisite to the initial issuance of a certificate, the
152	applicant shall furnish a credit report from a nationally
153	recognized credit agency that reflects the financial
154	responsibility of the applicant and evidence of financial
155	responsibility, credit, and business reputation of either
156	himself or herself or the business organization he or she
157	desires to qualify. The board shall adopt rules defining
158	financial responsibility based upon the applicant's credit
159	history, ability to be bonded, and any history of bankruptcy or
160	assignment of receivers. The board may also adopt rules that
161	would allow applicants to demonstrate financial responsibility,
162	as an alternative to the foregoing, by providing minimum credit
163	scores or bonds payable as prescribed for financially
164	responsible officers. Such rules shall specify the financial
165	responsibility grounds on which the board may refuse to qualify
166	an applicant for certification.
167	(b)(c)  If, within 60 days from the date the applicant is
168	notified that he or she has qualified, he or she does not
169	provide the evidence required, he or she shall apply to the
170	department for an extension of time which shall be granted upon
171	a showing of just cause.
172	(c)(d)  An applicant for initial issuance of a certificate
173	or registration shall submit as a prerequisite to qualifying for
174	an exemption from workers' compensation coverage requirements
175	under s. 440.05 an affidavit attesting to the fact that the
176	applicant will obtain an exemption within 30 days after the date
177	the initial certificate or registration is issued by the board.
178	(6)  If a certificateholder or registrant holds a license
179	under this part and part II and is required to have continuing
180	education courses under s. 489.517(3), the certificateholder or
181	registrant may apply those course hours for workers'
182	compensation, workplace safety, and business practices obtained
183	under part II to the requirements under this part. An applicant
184	for initial issuance of a certificate or registration shall
185	submit to a statewide criminal history records check through the
186	Department of Law Enforcement. The Department of Business and
187	Professional Regulation shall submit the requests for the
188	criminal history records check to the Department of Law
189	Enforcement for state processing, and the Department of Law
190	Enforcement shall return the results to the department to
191	determine if the applicant meets certification or registration
192	requirements. If the applicant has been convicted of a felony,
193	the board may deny licensure to the applicant based upon the
194	severity of the crime, the relationship of the crime to
195	contracting, or the potential for public harm. The board shall
196	also, in denying or approving licensure, consider the length of
197	time since the commission of the crime and the rehabilitation of
198	the applicant. The board may not deny licensure to an applicant
199	based solely upon a felony conviction or the applicant's failure
200	to provide proof of restoration of civil rights.
201	(7)(a)  An initial applicant shall submit, along with the
202	application, a complete set of fingerprints in the form and
203	manner required by the department. The fingerprints shall be
204	submitted to the Department of Law Enforcement for state
205	processing, and the Department of Law Enforcement shall forward
206	the fingerprints to the Federal Bureau of Investigation for the
207	purpose of conducting a level 2 background check pursuant to s.
208	435.04. The department shall and the board may review the
209	background results to determine if an applicant meets licensure
210	requirements. The cost for the fingerprint processing shall be
211	borne by the person subject to the background screening. These
212	fees are to be collected by the authorized agencies or vendors.
213	The authorized agencies or vendors are responsible for paying
214	the processing costs to the Department of Law Enforcement. and a
215	certificateholder or registrant shall, upon requesting a change
216	of status, submit to the board a credit report from a nationally
217	recognized credit agency that reflects the financial
218	responsibility of the applicant or certificateholder or
219	registrant. The credit report required for the initial applicant
220	shall be considered the minimum evidence necessary to satisfy
221	the board that he or she is financially responsible to be
222	certified, has the necessary credit and business reputation to
223	engage in contracting in the state, and has the minimum
224	financial stability necessary to avoid the problem of financial
225	mismanagement or misconduct. The board shall, by rule, adopt
226	guidelines for determination of financial stability, which may
227	include minimum requirements for net worth, cash, and bonding
228	for Division I certificateholders of no more than $20,000 and
229	for Division II certificateholders of no more than $10,000.
230	Fifty percent of the financial requirements may be met by
231	completing a 14-hour financial responsibility course approved by
232	the board.
233	(b)  If an applicant has been convicted of a felony, the
234	board may deny licensure to the applicant based upon the
235	severity of the crime, the relationship of the crime to
236	contracting, or the potential for public harm. The board shall
237	also, in denying or approving licensure, consider the length of
238	time since the commission of the crime and the rehabilitation of
239	the applicant. The board may not deny licensure to an applicant
240	based solely upon a felony conviction or the applicant's failure
241	to provide proof of restoration of civil rights. This paragraph
242	does not prevent the board from denying licensure to an
243	applicant based upon a lack of good moral character or a
244	conviction of a crime related to contracting.
245	(8)(a)  As a prerequisite to the initial issuance of a
246	certificate or registration, the applicant shall submit or have
247	on file a bond on a form provided by the department with a
248	surety admitted to write insurance in the state naming the State
249	of Florida as obligee. A separate bond shall be required for
250	each business organization qualified by the certificateholder or
251	registrant, including licenses held in an individual status. The
252	bond shall remain in full force and effect unless the license is
253	revoked or placed on inactive status. An applicant shall not be
254	required to provide any further evidence of financial
255	responsibility in order to obtain licensure.
256	(b)  The bond shall be for the use and benefit of any
257	person who contracts with the certificateholder or registrant
258	for the performance of work that would require a license
259	pursuant to ch. 489, including subcontractors and suppliers that
260	supply labor and materials for that work. These persons may
261	bring an action directly on the bond for damages resulting from
262	acts by the certificateholder or the registrant that would
263	constitute a violation of s. 489.129(1). Any such action must be
264	brought within 2 years after the earlier of the date on which
265	the bond terminates, expires, or is canceled, or the date the
266	certificateholder or the registrant committed the breach.
267	(c)  The penal sum of the bond shall be $75,000 for both
268	the certificateholder and the registrant, and the aggregate
269	liability of the surety, including any liability for attorney's
270	fees by contract or statute, shall not exceed the penal sum
271	without regard to the number of years the bond was in force, the
272	number of premiums paid, or the number of claims or claimants.
273	Failure to maintain the bond shall result in the
274	certificateholder's or registrant's license being placed on
275	inactive status and possible disciplinary action.
276	(d)  The surety may cancel the bond upon not less than 30
277	days' written notice to the department, but the surety shall
278	remain liable for any damages arising out of a contract entered
279	into prior to the effective date of such cancellation.
280	(e)  An irrevocable letter of credit may be furnished to
281	the department in lieu of the aforementioned bond requirement.
282	The letter of credit shall be for $75,000 and assigned to the
283	department. The certificateholder and the registrant shall be
284	allowed to collect all interest on the letter of credit. Injured
285	consumers shall apply to the department for payment from the
286	letters of credit after securing a civil judgment or criminal
287	order of restitution based upon a violation of s. 489.129(1).
288	The claim for recovery must be filed within 1 year after the
289	conclusion of the civil or criminal action. If a
290	certificateholder or registrant holds a license under both this
291	part and part II and is required to have continuing education
292	courses under s. 489.517(3), the certificateholder or registrant
293	may apply those course hours for workers' compensation,
294	workplace safety, and business practices obtained under part II
295	to the requirements under this part.
296	(9)  An initial applicant shall submit, along with the
297	application, a complete set of fingerprints in a form and manner
298	required by the department. The fingerprints shall be submitted
299	to the Department of Law Enforcement for state processing, and
300	the Department of Law Enforcement shall forward them to the
301	Federal Bureau of Investigation for the purpose of conducting a
302	level 2 background check pursuant to s. 435.04. The department
303	shall and the board may review the background results to
304	determine if an applicant meets licensure requirements. The cost
305	for the fingerprint processing shall be borne by the person
306	subject to the background screening. These fees are to be
307	collected by the authorized agencies or vendors. The authorized
308	agencies or vendors are responsible for paying the processing
309	costs to the Department of Law Enforcement.
310	Section 5.  Section 489.119, Florida Statutes, is amended
311	to read:
312	489.119  Business organizations; qualifying agents.--
313	(1)  If an individual proposes to engage in contracting in
314	the individual's own name, or a fictitious name where the
315	individual is doing business as a sole proprietorship,
316	registration or certification may be issued only to that
317	individual.
318	(2)  If the applicant proposes to engage in contracting as
319	a business organization, including any partnership, corporation,
320	business trust, or other legal entity, or in any name other than
321	the applicant's legal name or a fictitious name where the
322	applicant is doing business as a sole proprietorship, the
323	applicant business organization must apply to qualify the
324	business organization for a certificate of authority through a
325	qualifying agent and under the fictitious name, if any.
326	(a)  The application to qualify a business organization for
327	a certificate of authority must state the name of the
328	partnership and of its partners; the name of the corporation and
329	of its officers and directors and the name of each of its
330	stockholders who is also an officer or director; the name of the
331	business trust and its trustees; or the name of such other legal
332	entity and its members; and must state the fictitious name, if
333	any, under which the business organization is doing business.
334	(b)1.  The application to qualify a business organization
335	for primary qualifying agent must include an affidavit on a form
336	provided by the board attesting that the applicant has final
337	approval authority for all construction work performed by the
338	entity and that the applicant has final approval authority on
339	all business matters, including contracts, specifications,
340	checks, drafts, or payments, regardless of the form of payment,
341	made by the entity, except where a financially responsible
342	officer is approved.
343	2.  The application for financially responsible officer
344	must include an affidavit on a form provided by the board
345	attesting that the applicant's approval is required for all
346	checks, drafts, or payments, regardless of the form of payment,
347	made by the entity and that the applicant has authority to act
348	for the business organization in all financial matters.
349	3.  The application for secondary qualifying agent must
350	include an affidavit on a form provided by the board attesting
351	that the applicant has authority to supervise all construction
352	work performed by the entity as provided in s. 489.1195(2).
353	(c)  The board may deny the application to qualify the
354	business organization if any person cited in this subsection has
355	been involved in past disciplinary actions or on any grounds for
356	which individual certification can be denied.
357	(d)(b)  The applicant must furnish evidence of statutory
358	compliance if a fictitious name is used, the provisions of s.
359	865.09(7) notwithstanding.
360	(e)(c)  A joint venture, including a joint venture composed
361	of qualified business organizations, is itself a separate and
362	distinct organization that must be qualified and obtain a
363	certificate of authority in accordance with board rules.
364	(d)  A certificate of authority must be renewed every 2
365	years. If there is a change in any information that is required
366	to be stated on the application, the business organization
367	shall, within 45 days after such change occurs, mail the correct
368	information to the department.
369	(3)(a)  The qualifying agent shall be certified or
370	registered under this part in order for the business
371	organization to be issued a certificate of authority in the
372	category of the business conducted for which the qualifying
373	agent is certified or registered. If any qualifying agent ceases
374	to be affiliated with a such business organization, he or she
375	shall so inform the department. In addition, if the such
376	qualifying agent is the only certified or registered contractor
377	affiliated with the business organization, the business
378	organization shall notify the department of the termination of
379	the qualifying agent and shall have 60 days from the termination
380	of the qualifying agent's affiliation with the business
381	organization in which to employ another qualifying agent. The
382	business organization may not engage in contracting until a
383	qualifying agent is employed, unless the executive director or
384	chair of the board has granted a temporary nonrenewable
385	certificate or registration to the financially responsible
386	officer, the president, a partner, or, in the case of a limited
387	partnership, the general partner, who assumes all
388	responsibilities of a primary qualifying agent for the entity.
389	This temporary certificate or registration shall only allow the
390	entity to proceed with incomplete contracts. For the purposes of
391	this paragraph, an incomplete contract is one which has been
392	awarded to, or entered into by, the business organization prior
393	to the cessation of affiliation of the qualifying agent with the
394	business organization or one on which the business organization
395	was the low bidder and the contract is subsequently awarded,
396	regardless of whether any actual work has commenced under the
397	contract prior to the qualifying agent ceasing to be affiliated
398	with the business organization.
399	(b)  The qualifying agent shall inform the department in
400	writing when he or she proposes to engage in contracting in his
401	or her own name or in affiliation with another business
402	organization, and he or she or such new business organization
403	shall supply the same information to the department as required
404	of applicants under this part.
405	(c)  Upon a favorable determination by the board, after
406	investigation of the financial responsibility, credit, and
407	business reputation of the qualifying agent and the new business
408	organization, the department shall issue, without an
409	examination, a new certificate of authority in the business
410	organization's name.
411	(4)  Disciplinary action against a business organization
412	holding a certificate of authority shall be administered in the
413	same manner and on the same grounds as disciplinary action
414	against a contractor. The board may deny the certification of
415	any person cited in subsection (2) if the person has been
416	involved in past disciplinary actions or on any grounds for
417	which individual certification can be denied.
418	(4)(5)  When a certified qualifying agent, on behalf of a
419	business organization, makes application for an occupational
420	license in any municipality or county of this state, the
421	application shall be made with the tax collector in the name of
422	the business organization and the qualifying agent; and the
423	license, when issued, shall be issued to the business
424	organization, upon payment of the appropriate licensing fee and
425	exhibition to the tax collector of a valid certificate for the
426	qualifying agent and a valid certificate of authority for the
427	business organization issued by the department, and the state
428	license number numbers shall be noted thereon.
429	(5)(6)(a)  Each registered or certified contractor shall
430	affix the number of his or her registration or certification to
431	each application for a building permit and on each building
432	permit issued and recorded. Each city or county building
433	department shall require, as a precondition for the issuance of
434	the building permit, that the contractor taking out the permit
435	must provide verification giving his or her Construction
436	Industry Licensing Board registration or certification number.
437	(b)  The registration or certification number of each
438	contractor or certificate of authority number for each business
439	organization shall appear in each offer of services, business
440	proposal, bid, contract, or advertisement, regardless of medium,
441	as defined by board rule, used by that contractor or business
442	organization in the practice of contracting.
443	(c)  If a vehicle bears the name of a contractor or
444	business organization, or any text or artwork which would lead a
445	reasonable person to believe that the vehicle is used for
446	contracting, the registration or certification number of the
447	contractor or certificate of authority number of the business
448	organization must be conspicuously and legibly displayed with
449	the name, text, or artwork. Local governments may also require
450	that locally licensed contractors must also display their
451	certificate of competency or license numbers. Nothing in this
452	paragraph shall be construed to create a mandatory vehicle
453	signage requirement.
454	(d)  For the purposes of this part, the term
455	"advertisement" does not include business stationery or any
456	promotional novelties such as balloons, pencils, trinkets, or
457	articles of clothing.
458	(e)  The board shall issue a notice of noncompliance for
459	the first offense, and may assess a fine or issue a citation for
460	failure to correct the offense within 30 days or for any
461	subsequent offense, to any contractor or business organization
462	that fails to include the certification or, registration, or
463	certificate of authority number as required by this part when
464	submitting an advertisement for publication, broadcast, or
465	printing or fails to display the certification or, registration,
466	or certificate of authority number as required by this part.
467	(6)(7)  Each qualifying agent shall pay the department an
468	amount equal to the original fee to qualify for a certificate of
469	authority of a new business organization. If the qualifying
470	agent for a business organization desires to qualify additional
471	business organizations, the board shall require him or her to
472	present evidence of his or her ability to supervise the
473	construction activities and financial responsibility of each
474	such organization. Approval for each business organization The
475	issuance of such certificate of authority is discretionary with
476	the board.
477	(7)(8)(a)  A business organization proposing to engage in
478	contracting is not required to apply for or obtain authorization
479	under this part to engage in contracting if:
480	1.  The business organization employs one or more
481	registered or certified contractors licensed in accordance with
482	this part who are responsible for obtaining permits and
483	supervising all of the business organization's contracting
484	activities;
485	2.  The business organization engages only in contracting
486	on property owned by the business organization or by its parent,
487	subsidiary, or affiliated entities; and
488	3.  The business organization, or its parent entity if the
489	business organization is a wholly owned subsidiary, maintains a
490	minimum net worth of $20 million.
491	(b)  Any business organization engaging in contracting
492	under this subsection shall provide the board with the name and
493	license number of each registered or certified contractor
494	employed by the business organization to supervise its
495	contracting activities. The business organization is not
496	required to post a bond or otherwise evidence any financial or
497	credit information except as necessary to demonstrate compliance
498	with paragraph (a).
499	(c)  A registered or certified contractor employed by a
500	business organization to supervise its contracting activities
501	under this subsection shall not be required to post a bond or
502	otherwise evidence any personal financial or credit information
503	so long as the individual performs contracting activities
504	exclusively on behalf of a business organization meeting all of
505	the requirements of paragraph (a).
506	Section 6.  Subsection (1) of section 489.1195, Florida
507	Statutes, is amended to read:
508	489.1195  Responsibilities.--
509	(1)  The board shall not approve secondary qualifying
510	agents or financially responsible officers after June 30, 2008.
511	A qualifying agent is a primary qualifying agent unless he or
512	she is a secondary qualifying agent under this section.
513	(a)  All primary qualifying agents for a business
514	organization are jointly and equally responsible for supervision
515	of all operations of the business organization; for all field
516	work at all sites; and for financial matters, both for the
517	organization in general and for each specific job.
518	(b)  Upon approval by the board, a business entity may
519	designate a financially responsible officer for purposes of
520	certification or registration. A financially responsible officer
521	shall be responsible for all financial aspects of the business
522	organization and may not be designated as the primary qualifying
523	agent. The designated financially responsible officer shall
524	furnish evidence of the financial responsibility, credit, and
525	business reputation of either himself or herself, or the
526	business organization he or she desires to qualify, as
527	determined appropriate by the board.
528	(c)  Where a business organization has a certified or
529	registered financially responsible officer, the primary
530	qualifying agent shall be responsible for all construction
531	activities of the business organization, both in general and for
532	each specific job.
533	(d)  The board shall adopt rules prescribing the
534	qualifications for financially responsible officers, including
535	net worth, cash, and bonding requirements. These qualifications
536	must be at least as extensive as the requirements for the
537	financial responsibility of qualifying agents.
538	Section 7.  Subsection (1) of section 489.127, Florida
539	Statutes, is amended to read:
540	489.127  Prohibitions; penalties.--
541	(1)  No person shall:
542	(a)  Falsely hold himself or herself or a business
543	organization out as a licensee, certificateholder, or
544	registrant;
545	(b)  Falsely impersonate a certificateholder or registrant;
546	(c)  Present as his or her own the certificate or,
547	registration, or certificate of authority of another;
548	(d)  Knowingly give false or forged evidence to the board
549	or a member thereof;
550	(e)  Use or attempt to use a certificate or, registration,
551	or certificate of authority which has been suspended or revoked;
552	(f)  Engage in the business or act in the capacity of a
553	contractor or advertise himself or herself or a business
554	organization as available to engage in the business or act in
555	the capacity of a contractor without being duly registered or
556	certified or having a certificate of authority;
557	(g)  Operate a business organization engaged in contracting
558	after 60 days following the termination of its only qualifying
559	agent without designating another primary qualifying agent,
560	except as provided in ss. 489.119 and 489.1195;
561	(h)  Commence or perform work for which a building permit
562	is required pursuant to part VII of chapter 553 without such
563	building permit being in effect; or
564	(i)  Willfully or deliberately disregard or violate any
565	municipal or county ordinance relating to uncertified or
566	unregistered contractors.
567
568	For purposes of this subsection, a person or business
569	organization operating on an inactive or suspended certificate
570	or, registration, or certificate of authority is not duly
571	certified or registered and is considered unlicensed. A business
572	tax receipt issued under the authority of chapter 205 is not a
573	license for purposes of this part.
574	Section 8.  Paragraph (b) of subsection (1) of section
575	489.128, Florida Statutes, is amended to read:
576	489.128  Contracts entered into by unlicensed contractors
577	unenforceable.--
578	(1)  As a matter of public policy, contracts entered into
579	on or after October 1, 1990, by an unlicensed contractor shall
580	be unenforceable in law or in equity by the unlicensed
581	contractor.
582	(b)  For purposes of this section, an individual or
583	business organization may not be considered unlicensed for
584	failing to have a business tax receipt issued under the
585	authority of chapter 205. A business organization may not be
586	considered unlicensed for failing to have a certificate of
587	authority as formerly required by ss. 489.119 and 489.127. For
588	purposes of this section, a business organization entering into
589	the contract may not be considered unlicensed if, before the
590	date established by paragraph (c), an individual possessing a
591	license required by this part concerning the scope of the work
592	to be performed under the contract has submitted an application
593	for a certificate of authority designating that individual as a
594	qualifying agent for the business organization entering into the
595	contract, and the application was not acted upon by the
596	department or applicable board within the time limitations
597	imposed by s. 120.60.
598	Section 9.  Subsections (1), (5), and (7) of section
599	489.129, Florida Statutes, are amended to read:
600	489.129  Disciplinary proceedings.--
601	(1)  The board may take any of the following actions
602	against any certificateholder or registrant: place on probation
603	or reprimand the licensee, revoke, suspend, or deny the issuance
604	or renewal of the certificate or, registration, or certificate
605	of authority, require financial restitution to a consumer for
606	financial harm directly related to a violation of a provision of
607	this part, require the surety licensing bond or irrevocable
608	letter of credit as provided for in s. 489.115(8), impose an
609	administrative fine not to exceed $10,000 per violation, require
610	continuing education, or assess costs associated with
611	investigation and prosecution, if the contractor, financially
612	responsible officer, or business organization for which the
613	contractor is a primary qualifying agent, a financially
614	responsible officer, or a secondary qualifying agent responsible
615	under s. 489.1195 is found guilty of any of the following acts:
616	(a)  Obtaining a certificate or, registration, or
617	certificate of authority by fraud or misrepresentation.
618	(b)  Being convicted or found guilty of, or entering a plea
619	of nolo contendere to, regardless of adjudication, a crime in
620	any jurisdiction which directly relates to the practice of
621	contracting or the ability to practice contracting.
622	(c)  Violating any provision of chapter 455.
623	(d)  Performing any act which assists a person or entity in
624	engaging in the prohibited uncertified and unregistered practice
625	of contracting, if the certificateholder or registrant knows or
626	has reasonable grounds to know that the person or entity was
627	uncertified and unregistered.
628	(e)  Knowingly combining or conspiring with an uncertified
629	or unregistered person by allowing his or her certificate or,
630	registration, or certificate of authority to be used by the
631	uncertified or unregistered person with intent to evade the
632	provisions of this part. When a certificateholder or registrant
633	allows his or her certificate or registration to be used by one
634	or more business organizations without having any active
635	participation in the operations, management, or control of such
636	business organizations, such act constitutes prima facie
637	evidence of an intent to evade the provisions of this part.
638	(f)  Acting in the capacity of a contractor under any
639	certificate or registration issued hereunder except in the name
640	of the certificateholder or registrant as set forth on the
641	issued certificate or registration, or in accordance with the
642	personnel of the certificateholder or registrant as set forth in
643	the application for the certificate or registration, or as later
644	changed as provided in this part.
645	(g)  Committing mismanagement or misconduct in the practice
646	of contracting that causes financial harm to a customer.
647	Financial mismanagement or misconduct occurs when:
648	1.  Valid liens have been recorded against the property of
649	a contractor's customer for supplies or services ordered by the
650	contractor for the customer's job; the contractor has received
651	funds from the customer to pay for the supplies or services; and
652	the contractor has not had the liens removed from the property,
653	by payment or by bond, within 75 days after the date of such
654	liens;
655	2.  The contractor has abandoned a customer's job and the
656	percentage of completion is less than the percentage of the
657	total contract price paid to the contractor as of the time of
658	abandonment, unless the contractor is entitled to retain such
659	funds under the terms of the contract or refunds the excess
660	funds within 30 days after the date the job is abandoned; or
661	3.  The contractor's job has been completed, and it is
662	shown that the customer has had to pay more for the contracted
663	job than the original contract price, as adjusted for subsequent
664	change orders, unless such increase in cost was the result of
665	circumstances beyond the control of the contractor, was the
666	result of circumstances caused by the customer, or was otherwise
667	permitted by the terms of the contract between the contractor
668	and the customer.
669	(h)  Being disciplined by any municipality or county for an
670	act or violation of this part.
671	(i)  Failing in any material respect to comply with the
672	provisions of this part or violating a rule or lawful order of
673	the board.
674	(j)  Abandoning a construction project in which the
675	contractor is engaged or under contract as a contractor. A
676	project may be presumed abandoned after 90 days if the
677	contractor terminates the project without just cause or without
678	proper notification to the owner, including the reason for
679	termination, or fails to perform work without just cause for 90
680	consecutive days.
681	(k)  Signing a statement with respect to a project or
682	contract falsely indicating that the work is bonded; falsely
683	indicating that payment has been made for all subcontracted
684	work, labor, and materials which results in a financial loss to
685	the owner, purchaser, or contractor; or falsely indicating that
686	workers' compensation and public liability insurance are
687	provided.
688	(l)  Committing fraud or deceit in the practice of
689	contracting.
690	(m)  Committing incompetency or misconduct in the practice
691	of contracting.
692	(n)  Committing gross negligence, repeated negligence, or
693	negligence resulting in a significant danger to life or
694	property.
695	(o)  Proceeding on any job without obtaining applicable
696	local building department permits and inspections.
697	(p)  Intimidating, threatening, coercing, or otherwise
698	discouraging the service of a notice to owner under part I of
699	chapter 713 or a notice to contractor under chapter 255 or part
700	I of chapter 713.
701	(q)  Failing to satisfy within a reasonable time, the terms
702	of a civil judgment obtained against the licensee, or the
703	business organization qualified by the licensee, relating to the
704	practice of the licensee's profession.
705
706	For the purposes of this subsection, construction is considered
707	to be commenced when the contract is executed and the contractor
708	has accepted funds from the customer or lender. A contractor
709	does not commit a violation of this subsection when the
710	contractor relies on a building code interpretation rendered by
711	a building official or person authorized by s. 553.80 to enforce
712	the building code, absent a finding of fraud or deceit in the
713	practice of contracting, or gross negligence, repeated
714	negligence, or negligence resulting in a significant danger to
715	life or property on the part of the building official, in a
716	proceeding under chapter 120.
717	(5)  The board may not reinstate the certificate or
718	certification, registration, or certificate of authority of, or
719	cause a certificate or, registration, or certificate of
720	authority to be issued to, a person who or business organization
721	which the board has determined is unqualified or whose
722	certificate or, registration, or certificate of authority the
723	board has suspended until it is satisfied that such person or
724	business organization has complied with all the terms and
725	conditions set forth in the final order and is capable of
726	competently engaging in the business of contracting.
727	(7)  The board shall not issue or renew a certificate or,
728	registration, or certificate of authority to any person or
729	business organization that has been assessed a fine, interest,
730	or costs associated with investigation and prosecution, or has
731	been ordered to pay restitution, until such fine, interest, or
732	costs associated with investigation and prosecution or
733	restitution are paid in full or until all terms and conditions
734	of the final order have been satisfied.
735	Section 10.  Subsection (5) of section 489.132, Florida
736	Statutes, is amended to read:
737	489.132  Prohibited acts by unlicensed principals;
738	investigation; hearing; penalties.--
739	(5)  The department may suspend, revoke, or deny issuance
740	or renewal of a certificate or, registration, or certificate of
741	authority for any individual or business organization that
742	associates a person as an officer, director, or partner, or in a
743	managerial or supervisory capacity, after such person has been
744	found under a final order to have violated this section or was
745	an officer, director, partner, trustee, or manager of a business
746	organization disciplined by the board by revocation, suspension,
747	or fine in excess of $2,500, upon finding reasonable cause that
748	such person knew or reasonably should have known of the conduct
749	leading to the discipline.
750	Section 11.  Section 489.140, Florida Statutes, is amended
751	to read:
752	489.140  Florida Homeowners' Construction Recovery
753	Fund.--There is created the Florida Homeowners' Construction
754	Recovery Fund as a separate account in the Professional
755	Regulation Trust Fund. The recovery fund shall be funded out of
756	the receipts deposited in the Professional Regulation Trust Fund
757	from the one-half cent per square foot surcharge on building
758	permits collected and disbursed pursuant to s. 468.631. Funding
759	for the recovery fund shall cease effective June 30, 2010. All
760	funds remaining in the recovery fund at that time shall be
761	transferred to the Construction Industry Licensing Board for use
762	in the regulation of certified and registered contractors.
763	Section 12.  Subsection (4) is added to section 489.1401,
764	Florida Statutes, to read:
765	489.1401  Legislative intent.--
766	(4)  It is the intent of the Legislature that no claims
767	shall be received by the Florida Homeowners' Construction
768	Recovery Fund after June 30, 2009, and that the recovery fund
769	shall be abolished effective June 30, 2010.
770	Section 13.  This act shall take effect July 1, 2008.

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