Florida Senate - 2008 SB 2194

By Senator Aronberg

27-03288A-08 20082194__

A bill to be entitled

An act relating to contracting; amending s. 489.105,

F.S.; redefining the term "initial issuance"; amending

s. 489.115, F.S.; revising requirements for applicants

for initial certification as a contractor; authorizing

certain certificateholders or registrants to use credit

earned for attendance at certain continuing education

courses for the purpose of fulfilling specified

requirements; requiring that an initial applicant

submit a set of fingerprints with his or her

application; providing for the payment of costs

associated with such fingerprints; requiring that the

Department of Law Enforcement forward fingerprints to

the Federal Bureau of Investigation for the purpose of

performing a criminal background check on the

applicant; requiring that the department of Business

and Professional Regulation review the results of a

background investigation to determine if an applicant

meets licensure requirements; authorizing the

Construction Industry Licensing Board to review the

results of a background investigation for such purpose;

authorizing the board to deny licensure under certain

circumstances; requiring that the board consider

certain information when deciding whether to approve or

deny licensure; prohibiting the board from denying

licensure to an applicant based solely upon a felony

conviction or the applicant's failure to provide proof

of restoration of his or her civil rights; authorizing

the board to deny licensure based upon an applicant's

lack of good moral character or because the applicant

was convicted of a crime related to contracting;

requiring that an applicant submit or have on file a

surety bond before the initial issuance of a

certificate or registration; providing requirements for

such bond; providing penalties for failure to maintain

such bond; authorizing persons who contract with a

certificateholder or registrant for the performance of

work that would require a license pursuant to state law

to bring an action against the bond for damages

resulting from acts by the certificateholder or

registrant which constitute violations of state law;

providing that a surety may cancel a bond upon a

specified period of written notice to the department;

providing that such surety remains liable for any

damages arising out of a contract entered into before

the date on which the surety canceled the bond;

providing that an irrevocable letter of credit may be

furnished to the department in lieu of a bond;

providing for financial recovery by injured consumers

against contractors providing such a letter of credit;

amending s. 489.119, F.S.; requiring that an applicant

seeking to engage in contracting as a business

organization apply to qualify the business organization

with the department; providing requirements for

applications to qualify a business organization;

deleting provisions relating to applications as a

financially responsible officer and secondary

qualifying agent; authorizing the board to deny an

application under certain circumstances; deleting a

provision relating to the renewal of a certificate of

authority; deleting a provision requiring that a

qualifying agent be certified or registered for a

business organization to be issued a certificate of

authority in the category of the business conducted for

which the qualifying agent is certified or registered;

deleting a provision requiring the issuance of a

certificate of authority under certain circumstances;

deleting a provision relating to disciplinary action

against a business organization holding a certificate

of authority; providing requirements for an application

for an occupational license in a county or

municipality; providing for the issuance of

registration or certification numbers in lieu of

certificate of authority numbers; requiring that such

number appear on certain documents; providing for the

payment of a fee to qualify as a new business

organization; requiring that a qualifying agent provide

evidence of certain information to the department when

attempting to qualify additional business

organizations; providing that approval for each

business organization is discretionary with the board;

amending s. 489.1195, F.S.; prohibiting the board from

approving secondary qualifying agents or financially

responsible officers after a specified date; amending

ss. 489.127, 489.128, and 489.129, F.S.; revising

provisions to conform to changes made by the act;

amending s. 489.140, F.S.; requiring that funding for

the Florida Homeowners' Construction Recovery Fund

cease on a specified date; requiring that all funds

remaining in the recovery fund at that time be

transferred to the board; amending s. 489.1401, F.S.;

providing legislative intent; providing an effective

date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Subsection (19) of section 489.105, Florida

Statutes, is amended to read:

489.105 Definitions.--As used in this part:

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(19) "Initial issuance" means the first time a certificate

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or registration is granted to an individual or business

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organization, including the first time an individual becomes a

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qualifying agent for a that business organization and the first

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time a business organization is qualified by that individual.

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Section 2. Subsections (5), (6), (7), (8), and (9) of

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section 489.115, Florida Statutes, are amended to read:

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489.115 Certification and registration; endorsement;

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reciprocity; renewals; continuing education.--

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(5)(a) As a prerequisite to the initial issuance or the

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renewal of a certificate or registration, the applicant shall

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submit an affidavit on a form provided by the board attesting to

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the fact that the applicant has obtained workers' compensation

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insurance as required by chapter 440, public liability insurance,

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and property damage insurance for the safety and welfare of the

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public, in amounts determined by rule of the board. The board

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shall by rule establish a procedure to verify the accuracy of

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such affidavits based upon a random sample method.

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(b) In addition to the affidavit of insurance, as a

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prerequisite to the initial issuance of a certificate, the

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applicant shall furnish a credit report from a nationally

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recognized credit agency that reflects the financial

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responsibility of the applicant and evidence of financial

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responsibility, credit, and business reputation of either himself

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or herself or the business organization he or she desires to

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qualify. The board shall adopt rules defining financial

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responsibility based upon the applicant's credit history, ability

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to be bonded, and any history of bankruptcy or assignment of

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receivers. The board may also adopt rules that would allow

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applicants to demonstrate financial responsibility, as an

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alternative to the foregoing, by providing minimum credit scores

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or bonds payable as prescribed for financially responsible

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officers. Such rules shall specify the financial responsibility

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grounds on which the board may refuse to qualify an applicant for

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certification.

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(b)(c) If, within 60 days from the date the applicant is

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notified that he or she has qualified, he or she does not provide

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the evidence required, he or she shall apply to the department

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for an extension of time which shall be granted upon a showing of

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just cause.

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(c)(d) An applicant for initial issuance of a certificate

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or registration shall submit as a prerequisite to qualifying for

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an exemption from workers' compensation coverage requirements

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under s. 440.05 an affidavit attesting to the fact that the

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applicant will obtain an exemption within 30 days after the date

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the initial certificate or registration is issued by the board.

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(6) If a certificateholder or registrant holds a license

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under both this part and part II and is required to complete

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continuing education courses pursuant to s. 489.517(3), the

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certificateholder or registrant may apply hours earned for

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courses regarding workers' compensation, workplace safety, and

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business practices toward his or her satisfaction of the

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requirements of this part.

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(7)(a) An initial applicant shall submit, along with the

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application, a complete set of fingerprints in a form and manner

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required by the department. Fingerprints shall be submitted to

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the Department of Law Enforcement for processing and forwarding

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to the Federal Bureau of Investigation for the purpose of

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conducting a Level 2 background screening pursuant to s. 435.04.

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The department shall and the board may review the results of the

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background check to determine if an applicant meets licensure

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requirements. The cost of processing fingerprints shall be borne

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by the applicant. Such costs shall be collected by the

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appropriate authorized agencies or vendors, who shall forward the

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processing costs to the Department of Law Enforcement.

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(b) If an applicant has been convicted of a felony, the

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board may deny licensure to the applicant based upon the severity

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of the crime, the relationship of the crime to the profession of

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contracting, or the potential for public harm that would result

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from the granting of a license to the applicant. When approving

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or denying a license, the board must also consider the amount of

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time that has elapsed since the conviction or convictions, as

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well as the degree of rehabilitation of the applicant. The board

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may not deny licensure to an applicant based solely upon a felony

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conviction or the applicant's failure to provide proof of

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restoration of his or her civil rights. This section does not

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prevent the board from denying licensure based upon a lack of

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good moral character or because the applicant was convicted of a

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crime related to contracting.

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(8)(a) As a prerequisite to the initial issuance of a

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certificate or registration, the applicant shall submit or have

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on file a bond, on a form provided by the department, with a

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surety admitted to write insurance in Florida naming the State of

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Florida as the obligee. A separate bond shall be required for

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each business organization qualified by the certificateholder or

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registrant, including any licenses held as an individual. The

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bond shall remain in full force and effect until the license is

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revoked or designated as inactive. An applicant is not required

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to provide any additional evidence of financial responsibility in

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order to qualify for licensure.

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(b) The bond shall be for the use and benefit of any person

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who contracts with the certificateholder or registrant for the

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performance of work that would require a license pursuant to this

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chapter, including subcontractors and suppliers supplying labor

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or materials for such work. Such persons may bring an action

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against the bond for damages resulting from acts by the

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certificateholder or registrant constituting a violation or

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violations of s. 489.129(1). Any such action must be brought

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within 2 years after the date on which the bond terminates,

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expires, or is cancelled, or the date on which the

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certificateholder or registrant committed the breach of contract,

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whichever is earlier.

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in force, the number of premiums paid, or the number of claims or

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claimants, the amount of the bond shall be $75,000 for a

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certificateholder or registrant, and the aggregate liability of

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the surety, including any liability for attorney's fees, may not

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exceed that amount. Failure to maintain the bond may result in

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disciplinary action, and shall result in the certificateholder's

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or registrant's license being designated as inactive.

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(d) The surety may cancel the bond upon no less than 30

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days' written notice to the department. However, the surety

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remains liable for any damages arising out of a contract entered

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into before the effective date of such cancellation.

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(e) An irrevocable letter of credit may be furnished to the

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department in lieu of the bond requirement prescribed in this

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subsection. The letter of credit must be for $75,000 and must be

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assigned to the department. A certificateholder or registrant may

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collect all interest on the letter of credit. Injured consumers

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may apply to the department for payment from the letter of credit

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after securing a civil judgment or criminal order of restitution

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based upon a violation of s. 489.129(1). The claim for recovery

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must be filed within 1 year after the date on which the civil or

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criminal action is resolved.

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(6) An applicant for initial issuance of a certificate or

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registration shall submit to a statewide criminal history records

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check through the Department of Law Enforcement. The Department

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of Business and Professional Regulation shall submit the requests

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for the criminal history records check to the Department of Law

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Enforcement for state processing, and the Department of Law

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Enforcement shall return the results to the department to

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determine if the applicant meets certification or registration

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requirements. If the applicant has been convicted of a felony,

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the board may deny licensure to the applicant based upon the

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severity of the crime, the relationship of the crime to

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contracting, or the potential for public harm. The board shall

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also, in denying or approving licensure, consider the length of

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time since the commission of the crime and the rehabilitation of

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the applicant. The board may not deny licensure to an applicant

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based solely upon a felony conviction or the applicant's failure

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to provide proof of restoration of civil rights.

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(7) An initial applicant shall, along with the application,

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and a certificateholder or registrant shall, upon requesting a

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change of status, submit to the board a credit report from a

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nationally recognized credit agency that reflects the financial

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responsibility of the applicant or certificateholder or

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registrant. The credit report required for the initial applicant

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shall be considered the minimum evidence necessary to satisfy the

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board that he or she is financially responsible to be certified,

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has the necessary credit and business reputation to engage in

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contracting in the state, and has the minimum financial stability

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necessary to avoid the problem of financial mismanagement or

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misconduct. The board shall, by rule, adopt guidelines for

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determination of financial stability, which may include minimum

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requirements for net worth, cash, and bonding for Division I

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certificateholders of no more than $20,000 and for Division II

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certificateholders of no more than $10,000. Fifty percent of the

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financial requirements may be met by completing a 14-hour

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financial responsibility course approved by the board.

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(8) If a certificateholder or registrant holds a license

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under both this part and part II and is required to have

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continuing education courses under s. 489.517(3), the

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certificateholder or registrant may apply those course hours for

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workers' compensation, workplace safety, and business practices

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obtained under part II to the requirements under this part.

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(9) An initial applicant shall submit, along with the

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application, a complete set of fingerprints in a form and manner

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required by the department. The fingerprints shall be submitted

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to the Department of Law Enforcement for state processing, and

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the Department of Law Enforcement shall forward them to the

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Federal Bureau of Investigation for the purpose of conducting a

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level 2 background check pursuant to s. 435.04. The department

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shall and the board may review the background results to

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determine if an applicant meets licensure requirements. The cost

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for the fingerprint processing shall be borne by the person

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subject to the background screening. These fees are to be

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collected by the authorized agencies or vendors. The authorized

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agencies or vendors are responsible for paying the processing

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costs to the Department of Law Enforcement.

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Section 3. Section 489.119, Florida Statutes, is amended to

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read:

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489.119 Business organizations; qualifying agents.--

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(1) If an individual proposes to engage in contracting in

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the individual's own name, or a fictitious name where the

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individual is doing business as a sole proprietorship,

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registration or certification may be issued only to that

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individual.

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(2) If the applicant proposes to engage in contracting as a

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business organization, including any partnership, corporation,

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business trust, or other legal entity, or in any name other than

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the applicant's legal name or a fictitious name where the

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applicant is doing business as a sole proprietorship, the

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applicant must apply to qualify the business organization the

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business organization must apply for a certificate of authority

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through a qualifying agent and under the fictitious name, if any.

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(a) The application to qualify as a business organization

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for a certificate of authority must state the name of the

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partnership and of its partners; the name of the corporation and

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of its officers and directors and the name of each of its

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stockholders who is also an officer or director; the name of the

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business trust and its trustees; or the name of such other legal

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entity and its members; and must state the fictitious name, if

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any, under which the business organization is doing business.

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(b)1. The application to qualify as a business organization

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for primary qualifying agent must include an affidavit on a form

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provided by the board attesting that the applicant has final

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approval authority for all construction work performed by the

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entity and that the applicant has final approval authority on all

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business matters, including contracts, specifications, checks,

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drafts, or payments, regardless of the form of payment, made by

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the entity, except where a financially responsible officer is

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approved.

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2. The application for financially responsible officer must

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include an affidavit on a form provided by the board attesting

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that the applicant's approval is required for all checks, drafts,

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or payments, regardless of the form of payment, made by the

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entity and that the applicant has authority to act for the

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business organization in all financial matters.

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3. The application for secondary qualifying agent must

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include an affidavit on a form provided by the board attesting

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that the applicant has authority to supervise all construction

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work performed by the entity as provided in s. 489.1195(2).

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business organization if any person cited in paragraph (a) has

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been involved in past disciplinary actions or on any grounds for

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which individual certification may be denied.

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(d)(b) The applicant must furnish evidence of statutory

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compliance if a fictitious name is used, the provisions of s.

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865.09(7) notwithstanding.

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(e)(c) A joint venture, including a joint venture composed

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of qualified business organizations, is itself a separate and

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distinct organization that must be qualified and obtain a

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certificate of authority in accordance with board rules.

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(d) A certificate of authority must be renewed every 2

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years. If there is a change in any information that is required

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to be stated on the application, the business organization shall,

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within 45 days after such change occurs, mail the correct

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information to the department.

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(3)(a) The qualifying agent shall be certified or

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registered under this part in order for the business organization

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to be issued a certificate of authority in the category of the

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business conducted for which the qualifying agent is certified or

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registered. If any qualifying agent ceases to be affiliated with

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such business organization, he or she shall so inform the

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department. In addition, if such qualifying agent is the only

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certified or registered contractor affiliated with the business

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organization, the business organization shall notify the

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department of the termination of the qualifying agent and shall

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have 60 days from the termination of the qualifying agent's

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affiliation with the business organization in which to employ

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another qualifying agent. The business organization may not

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engage in contracting until a qualifying agent is employed,

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unless the executive director or chair of the board has granted a

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temporary nonrenewable certificate or registration to the

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financially responsible officer, the president, a partner, or, in

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the case of a limited partnership, the general partner, who

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assumes all responsibilities of a primary qualifying agent for

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the entity. This temporary certificate or registration shall only

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allow the entity to proceed with incomplete contracts. For the

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purposes of this paragraph, an incomplete contract is one which

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has been awarded to, or entered into by, the business

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organization prior to the cessation of affiliation of the

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qualifying agent with the business organization or one on which

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the business organization was the low bidder and the contract is

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subsequently awarded, regardless of whether any actual work has

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commenced under the contract prior to the qualifying agent

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ceasing to be affiliated with the business organization.

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(b) The qualifying agent shall inform the department in

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writing when he or she proposes to engage in contracting in his

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or her own name or in affiliation with another business

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organization, and he or she or such new business organization

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shall supply the same information to the department as required

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of applicants under this part.

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investigation of the financial responsibility, credit, and

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business reputation of the qualifying agent and the new business

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organization, the department shall issue, without an examination,

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a new certificate of authority in the business organization's

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name.

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(4) Disciplinary action against a business organization

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holding a certificate of authority shall be administered in the

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same manner and on the same grounds as disciplinary action

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against a contractor. The board may deny the certification of any

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person cited in subsection (2) if the person has been involved in

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past disciplinary actions or on any grounds for which individual

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certification can be denied.

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(4)(5) When a certified qualifying agent, on behalf of a

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business organization, makes application for an occupational

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license in any municipality or county of this state, the

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application shall be made with the tax collector in the name of

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the business organization and the qualifying agent; and the

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license, when issued, shall be issued to the business

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organization, upon payment of the appropriate licensing fee and

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exhibition to the tax collector of a valid certificate for the

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qualifying agent and a valid certificate of authority for the

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business organization issued by the department, and the state

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license number numbers shall be noted thereon.

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(5)(6)(a) Each registered or certified contractor shall

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affix the number of his or her registration or certification to

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each application for a building permit and on each building

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permit issued and recorded. Each city or county building

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department shall require, as a precondition for the issuance of

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the building permit, that the contractor taking out the permit

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must provide verification giving his or her Construction Industry

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Licensing Board registration or certification number.

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(b) The registration or certification number of each

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contractor or certificate of authority number for each business

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organization shall appear in each offer of services, business

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proposal, bid, contract, or advertisement, regardless of medium,

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as defined by board rule, used by that contractor or business

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organization in the practice of contracting.

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organization, or any text or artwork that which would lead a

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reasonable person to believe that the vehicle is used for

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contracting, the registration or certification number of the

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contractor or certificate of authority number of the business

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organization must be conspicuously and legibly displayed with the

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name, text, or artwork. Local governments may also require that

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locally licensed contractors must also display their certificate

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of competency or license numbers. Nothing in this paragraph shall

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be construed to create a mandatory vehicle signage requirement.

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(d) For the purposes of this part, the term "advertisement"

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does not include business stationery or any promotional novelties

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such as balloons, pencils, trinkets, or articles of clothing.

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(e) The board shall issue a notice of noncompliance for the

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first offense, and may assess a fine or issue a citation for

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failure to correct the offense within 30 days or for any

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subsequent offense, to any contractor or business organization

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that fails to include the registration or certification

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certification, registration, or certificate of authority number

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as required by this part when submitting an advertisement for

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publication, broadcast, or printing or fails to display the

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registration or certification certification, registration, or

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certificate of authority number as required by this part.

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(6)(7) Each qualifying agent shall pay the department an

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amount equal to the original fee to qualify for a certificate of

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authority of a new business organization. If the qualifying agent

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for a business organization desires to qualify additional

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business organizations, the board shall require him or her to

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present evidence of his or her ability to supervise the

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construction activities and financial responsibility of each such

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organization. Approval for each business organization The

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issuance of such certificate of authority is discretionary with

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the board.

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(7)(8)(a) A business organization proposing to engage in

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contracting is not required to apply for or obtain authorization

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under this part to engage in contracting if:

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1. The business organization employs one or more registered

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or certified contractors licensed in accordance with this part

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who are responsible for obtaining permits and supervising all of

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the business organization's contracting activities;

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2. The business organization engages only in contracting on

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property owned by the business organization or by its parent,

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subsidiary, or affiliated entities; and

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3. The business organization, or its parent entity if the

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business organization is a wholly owned subsidiary, maintains a

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minimum net worth of $20 million.

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(b) Any business organization engaging in contracting under

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this subsection shall provide the board with the name and license

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number of each registered or certified contractor employed by the

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business organization to supervise its contracting activities.

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The business organization is not required to post a bond or

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otherwise evidence any financial or credit information except as

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necessary to demonstrate compliance with paragraph (a).

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business organization to supervise its contracting activities

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under this subsection shall not be required to post a bond or

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otherwise evidence any personal financial or credit information

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so long as the individual performs contracting activities

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exclusively on behalf of a business organization meeting all of

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the requirements of paragraph (a).

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Section 4. Subsection (1) of section 489.1195, Florida

472

Statutes, is amended to read:

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489.1195 Responsibilities.--

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(1) The board may not approve secondary qualifying agents

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or financially responsible officers after June 30, 2008. A

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qualifying agent is a primary qualifying agent unless he or she

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is a secondary qualifying agent under this section.

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(a) All primary qualifying agents for a business

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organization are jointly and equally responsible for supervision

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of all operations of the business organization; for all field

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work at all sites; and for financial matters, both for the

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organization in general and for each specific job.

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(b) Upon approval by the board, a business entity may

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designate a financially responsible officer for purposes of

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certification or registration. A financially responsible officer

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shall be responsible for all financial aspects of the business

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organization and may not be designated as the primary qualifying

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agent. The designated financially responsible officer shall

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furnish evidence of the financial responsibility, credit, and

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business reputation of either himself or herself, or the business

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organization he or she desires to qualify, as determined

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appropriate by the board.

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registered financially responsible officer, the primary

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qualifying agent shall be responsible for all construction

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activities of the business organization, both in general and for

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each specific job.

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(d) The board shall adopt rules prescribing the

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qualifications for financially responsible officers, including

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net worth, cash, and bonding requirements. These qualifications

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must be at least as extensive as the requirements for the

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financial responsibility of qualifying agents.

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Section 5. Subsection (1) of section 489.127, Florida

504

Statutes, is amended to read:

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489.127 Prohibitions; penalties.--

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(1) No person shall:

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(a) Falsely hold himself or herself or a business

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organization out as a licensee, certificateholder, or registrant;

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(b) Falsely impersonate a certificateholder or registrant;

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registration, or certificate of authority of another;

512

(d) Knowingly give false or forged evidence to the board or

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a member thereof;

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(e) Use or attempt to use a certificate, registration, or

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certificate of authority which has been suspended or revoked;

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(f) Engage in the business or act in the capacity of a

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contractor or advertise himself or herself or a business

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organization as available to engage in the business or act in the

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capacity of a contractor without being duly registered or

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certified or having a certificate of authority;

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(g) Operate a business organization engaged in contracting

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after 60 days following the termination of its only qualifying

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agent without designating another primary qualifying agent,

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except as provided in ss. 489.119 and 489.1195;

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(h) Commence or perform work for which a building permit is

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required pursuant to part VII of chapter 553 without such

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building permit being in effect; or

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(i) Willfully or deliberately disregard or violate any

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municipal or county ordinance relating to uncertified or

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unregistered contractors.

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For purposes of this subsection, a person or business

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organization operating on an inactive or suspended certificate,

534

registration, or certificate of authority is not duly certified

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or registered and is considered unlicensed. A business tax

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receipt issued under the authority of chapter 205 is not a

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license for purposes of this part.

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Section 6. Paragraph (b) of subsection (1) of section

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489.128, Florida Statutes, is amended to read:

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489.128 Contracts entered into by unlicensed contractors

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unenforceable.--

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(1) As a matter of public policy, contracts entered into on

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or after October 1, 1990, by an unlicensed contractor shall be

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unenforceable in law or in equity by the unlicensed contractor.

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(b) For purposes of this section, an individual or business

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organization may not be considered unlicensed for failing to have

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a business tax receipt issued under the authority of chapter 205.

548

A business organization may not be considered unlicensed for

549

failing to have a certificate of authority as formerly required

550

by ss. 489.119 and 489.127. For purposes of this section, a

551

business organization entering into the contract may not be

552

considered unlicensed if, before the date established by

553

paragraph (c), an individual possessing a license required by

554

this part concerning the scope of the work to be performed under

555

the contract has submitted an application for a certificate of

556

authority designating that individual as a qualifying agent for

557

the business organization entering into the contract, and the

558

application was not acted upon by the department or applicable

559

board within the time limitations imposed by s. 120.60.

560

Section 7. Subsections (1), (5), and (7) of section

561

489.129, Florida Statutes, are amended to read:

562

489.129 Disciplinary proceedings.--

563

(1) The board may take any of the following actions against

564

any certificateholder or registrant: place on probation or

565

reprimand the licensee, revoke, suspend, or deny the issuance or

566

renewal of the certificate, registration, or certificate of

567

authority, require financial restitution to a consumer for

568

financial harm directly related to a violation of a provision of

569

this part, require the licensing bond as provided for in s.

570

489.115(8), impose an administrative fine not to exceed $10,000

571

per violation, require continuing education, or assess costs

572

associated with investigation and prosecution, if the contractor,

573

financially responsible officer, or business organization for

574

which the contractor is a primary qualifying agent, a financially

575

responsible officer, or a secondary qualifying agent responsible

576

under s. 489.1195 is found guilty of any of the following acts:

577

(a) Obtaining a registration or certification certificate,

578

registration, or certificate of authority by fraud or

579

misrepresentation.

580

(b) Being convicted or found guilty of, or entering a plea

581

of nolo contendere to, regardless of adjudication, a crime in any

582

jurisdiction which directly relates to the practice of

583

contracting or the ability to practice contracting.

584

585

(d) Performing any act which assists a person or entity in

586

engaging in the prohibited uncertified and unregistered practice

587

of contracting, if the certificateholder or registrant knows or

588

has reasonable grounds to know that the person or entity was

589

uncertified and unregistered.

590

(e) Knowingly combining or conspiring with an uncertified

591

or unregistered person by allowing his or her certificate,

592

registration, or certificate of authority to be used by the

593

uncertified or unregistered person with intent to evade the

594

provisions of this part. When a certificateholder or registrant

595

allows his or her certificate or registration to be used by one

596

or more business organizations without having any active

597

participation in the operations, management, or control of such

598

business organizations, such act constitutes prima facie evidence

599

of an intent to evade the provisions of this part.

600

(f) Acting in the capacity of a contractor under any

601

certificate or registration issued hereunder except in the name

602

of the certificateholder or registrant as set forth on the issued

603

certificate or registration, or in accordance with the personnel

604

of the certificateholder or registrant as set forth in the

605

application for the certificate or registration, or as later

606

changed as provided in this part.

607

(g) Committing mismanagement or misconduct in the practice

608

of contracting that causes financial harm to a customer.

609

Financial mismanagement or misconduct occurs when:

610

1. Valid liens have been recorded against the property of a

611

contractor's customer for supplies or services ordered by the

612

contractor for the customer's job; the contractor has received

613

funds from the customer to pay for the supplies or services; and

614

the contractor has not had the liens removed from the property,

615

by payment or by bond, within 75 days after the date of such

616

liens;

617

2. The contractor has abandoned a customer's job and the

618

percentage of completion is less than the percentage of the total

619

contract price paid to the contractor as of the time of

620

abandonment, unless the contractor is entitled to retain such

621

funds under the terms of the contract or refunds the excess funds

622

within 30 days after the date the job is abandoned; or

623

3. The contractor's job has been completed, and it is shown

624

that the customer has had to pay more for the contracted job than

625

the original contract price, as adjusted for subsequent change

626

orders, unless such increase in cost was the result of

627

circumstances beyond the control of the contractor, was the

628

result of circumstances caused by the customer, or was otherwise

629

permitted by the terms of the contract between the contractor and

630

the customer.

631

(h) Being disciplined by any municipality or county for an

632

act or violation of this part.

633

(i) Failing in any material respect to comply with the

634

provisions of this part or violating a rule or lawful order of

635

the board.

636

(j) Abandoning a construction project in which the

637

contractor is engaged or under contract as a contractor. A

638

project may be presumed abandoned after 90 days if the contractor

639

terminates the project without just cause or without proper

640

notification to the owner, including the reason for termination,

641

or fails to perform work without just cause for 90 consecutive

642

days.

643

(k) Signing a statement with respect to a project or

644

contract falsely indicating that the work is bonded; falsely

645

indicating that payment has been made for all subcontracted work,

646

labor, and materials which results in a financial loss to the

647

owner, purchaser, or contractor; or falsely indicating that

648

workers' compensation and public liability insurance are

649

provided.

650

(l) Committing fraud or deceit in the practice of

651

contracting.

652

(m) Committing incompetency or misconduct in the practice

653

of contracting.

654

(n) Committing gross negligence, repeated negligence, or

655

negligence resulting in a significant danger to life or property.

656

(o) Proceeding on any job without obtaining applicable

657

local building department permits and inspections.

658

(p) Intimidating, threatening, coercing, or otherwise

659

discouraging the service of a notice to owner under part I of

660

chapter 713 or a notice to contractor under chapter 255 or part I

661

of chapter 713.

662

(q) Failing to satisfy within a reasonable time, the terms

663

of a civil judgment obtained against the licensee, or the

664

business organization qualified by the licensee, relating to the

665

practice of the licensee's profession.

666

667

For the purposes of this subsection, construction is considered

668

to be commenced when the contract is executed and the contractor

669

has accepted funds from the customer or lender. A contractor does

670

not commit a violation of this subsection when the contractor

671

relies on a building code interpretation rendered by a building

672

official or person authorized by s. 553.80 to enforce the

673

building code, absent a finding of fraud or deceit in the

674

practice of contracting, or gross negligence, repeated

675

negligence, or negligence resulting in a significant danger to

676

life or property on the part of the building official, in a

677

proceeding under chapter 120.

678

(5) The board may not reinstate the certification or,

679

registration of, or certificate of authority of, or cause a

680

certification or certificate, registration, or certificate of

681

authority to be issued to, a person who or business organization

682

that which the board has determined is unqualified or whose

683

registration or certification certificate, registration, or

684

certificate of authority the board has suspended until it is

685

satisfied that such person or business organization has complied

686

with all the terms and conditions set forth in the final order

687

and is capable of competently engaging in the business of

688

contracting.

689

(7) The board shall not issue or renew a registration or

690

certification certificate, registration, or certificate of

691

authority to any person or business organization that has been

692

assessed a fine, interest, or costs associated with investigation

693

and prosecution, or has been ordered to pay restitution, until

694

such fine, interest, or costs associated with investigation and

695

prosecution or restitution are paid in full or until all terms

696

and conditions of the final order have been satisfied.

697

Section 8. Section 489.140, Florida Statutes, is amended to

698

read:

699

489.140 Florida Homeowners' Construction Recovery

700

Fund.--There is created the Florida Homeowners' Construction

701

Recovery Fund as a separate account in the Professional

702

Regulation Trust Fund. The recovery fund shall be funded out of

703

the receipts deposited in the Professional Regulation Trust Fund

704

from the one-half cent per square foot surcharge on building

705

permits collected and disbursed pursuant to s. 468.631. Funding

706

for the recovery fund shall cease effective June 30, 2010. All

707

funds remaining in the recovery fund at that time shall be

708

transferred to the Construction Industry Licensing Board.

709

Section 9. Subsection (4) is added to section 489.1401,

710

Florida Statutes, to read:

711

489.1401 Legislative intent.--

712

(4) It is the intent of the Legislature that no claims be

713

received by the recovery fund after June 30, 2009, and that the

714

Florida Homeowners' Construction Recovery Fund be abolished

715

effective June 30, 2010.

716

Section 10. This act shall take effect July 1, 2008.

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