Florida Senate - 2009 SB 1422
By Senator Baker
20-01098-09 20091422__
1 A bill to be entitled
2 An act relating to exemptions from construction
3 contracting requirements; amending s. 489.103, F.S.;
4 requiring that owners of property acting as their own
5 contractor and providing direct, onsite supervision of
6 all work not performed by licensed contractors read
7 and sign a disclosure statement before a permit is
8 issued; requiring that the disclosure statement
9 contain certain statements and provisions; providing
10 an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsection (7) of section 489.103, Florida
15 Statutes, is amended to read:
16 489.103 Exemptions.—This part does not apply to:
17 (7) Owners of property when acting as their own contractor
18 and providing direct, onsite supervision themselves of all work
19 not performed by licensed contractors:
20 (a) When building or improving farm outbuildings or one
21 family or two-family residences on such property for the
22 occupancy or use of such owners and not offered for sale or
23 lease, or building or improving commercial buildings, at a cost
24 not to exceed $75,000, on such property for the occupancy or use
25 of such owners and not offered for sale or lease. In an action
26 brought under this part, proof of the sale or lease, or offering
27 for sale or lease, of any such structure by the owner-builder
28 within 1 year after completion of same creates a presumption
29 that the construction was undertaken for purposes of sale or
30 lease.
31 (b) When repairing or replacing wood shakes or asphalt or
32 fiberglass shingles on one-family, two-family, or three-family
33 residences for the occupancy or use of such owner or tenant of
34 the owner and not offered for sale within 1 year after
35 completion of the work and when the property has been damaged by
36 natural causes from an event recognized as an emergency
37 situation designated by executive order issued by the Governor
38 declaring the existence of a state of emergency as a result and
39 consequence of a serious threat posed to the public health,
40 safety, and property in this state.
41 This subsection does not exempt any person who is employed by or
42 has a contract with such owner and who acts in the capacity of a
43 contractor. The owner may not delegate the owner's
44 responsibility to directly supervise all work to any other
45 person unless that person is registered or certified under this
46 part and the work being performed is within the scope of that
47 person's license. For the purposes of this subsection, the term
48 “owners of property” includes the owner of a mobile home
49 situated on a leased lot. To qualify for exemption under this
50 subsection, an owner must personally appear and sign the
51 building permit application and must satisfy local permitting
52 agency requirements, if any, proving that the owner has a
53 complete understanding of the owner's obligations under the law
54 as specified in the disclosure statement in this section. If any
55 person violates the requirements of this subsection, the local
56 permitting agency shall withhold final approval, revoke the
57 permit, or pursue any action or remedy for unlicensed activity
58 against the owner and any person performing work that requires
59 licensure under the permit issued. The local permitting agency
60 shall provide the person with a disclosure statement, which
61 shall be read and signed by the property owner or owner-builder,
62 in substantially the following form:
63 1. I understand that state law requires construction to be
64 done by licensed contractors and I have applied for an owner
65 builder permit under an exemption to that law. The exemption
66 provides that I, as the owner of the property listed, may act as
67 my own contractor with certain restrictions even though I do not
68 have a license.
69 2. I understand that building permits are not required to
70 be signed by a property owner unless the owner is responsible
71 for the construction and is not hiring a licensed contractor to
72 assume this responsibility.
73 3. I understand that as an owner-builder, I am the
74 responsible party of record on the permit. I understand that I
75 may protect myself from potential financial risk by hiring a
76 licensed contractor and having the permit filed in his or her
77 name instead of my own. I also understand that contractors are
78 required by law to be licensed and bonded in Florida and to list
79 their license numbers on permits and contracts.
80 4. I understand that I may build or improve a one-family or
81 two-family residence or a farm outbuilding. I may also build or
82 improve a commercial building if costs do not exceed $75,000.
83 The building or residence must be for my own use or occupancy.
84 It may not be built or substantially improved for sale or lease.
85 If a building I have built or substantially improved myself is
86 sold or leased within 1 year after the date on which
87 construction is complete, the law will presume that I built or
88 substantially improved it for sale or lease, which is a
89 violation of this exemption.
90 5. I understand that, as the owner-builder, I must provide
91 direct, onsite supervision of the construction.
92 6. I understand that I may not hire an unlicensed person to
93 act as my contractor or to supervise people working on my
94 building. It is my responsibility to make certain that people I
95 employ have the licenses required by state law or by county or
96 municipal licensing ordinances.
97 7. I understand that a frequent practice of unlicensed
98 persons is to have the property owner obtain an owner-builder
99 permit that erroneously implies that the property owner is
100 providing his or her own labor and materials. I, as an owner
101 builder, may be held liable and subject to serious financial
102 risk for any injuries sustained by an unlicensed person and his
103 or her employees while working on my property. My homeowner’s
104 insurance may not provide coverage for those injuries. I am
105 willfully acting as an owner-builder and am aware of the limits
106 of my insurance coverage for injuries to workers on my property.
107 8. I understand that I may not delegate the responsibility
108 for supervising work to a licensed contractor who is not
109 licensed to perform the work being done. Any person working on
110 my building who is not licensed must work under my direct
111 supervision and must be employed by me, which means that I must
112 deduct FICA contributions and withholding tax and provide
113 workers' compensation for that employee, all as prescribed by
114 law. I understand my failure to abide by these laws may subject
115 me to serious financial risk.
116 9. I agree that, as the party legally and financially
117 responsible for this proposed construction activity, I will
118 abide by all applicable laws and requirements that govern owner
119 builders as well as employers. I also understand that the
120 construction must comply with all applicable laws, ordinances,
121 building codes, and zoning regulations.
122 10. I understand that I may obtain more information
123 regarding my obligations as an employer from the Internal
124 Revenue Service, the United States Small Business
125 Administration, the Florida Department of Financial Services,
126 and the Florida Department of Revenue. I also understand I may
127 contact the Florida Construction Industry Licensing Board (CILB)
128 at 850-487-1395 or www.myflorida.com/dbpr/pro/cilb/index.html
129 for more information about licensed contractors.
130 11. I am aware of and consent to an owner-builder building
131 permit applied for in my name, and understand that I am the
132 party legally and financially responsible for proposed
133 construction activity at the following address:
134
135 ...(Address of location of construction activity)...
136 12. I agree to notify the issuer of this form immediately
137 of any additions, deletions, or changes to any of the
138 information I have provided on this form.
139 Licensed contractors are regulated by laws designed to protect
140 the public. If you contract with someone who does not have a
141 license, the Construction Industry Licensing Board and
142 Department of Business and Professional Regulation may be unable
143 to assist you with any financial loss you may sustain as a
144 result of a complaint. Your only remedy against unlicensed
145 contractors may be in civil court. It is also important for you
146 to understand that if an unlicensed contractor, or the
147 unlicensed contractor's employee, is injured while working on
148 your property, you may be held liable for damages. If you obtain
149 an owner-builder permit and wish to hire licensed contractors,
150 you will be responsible for verifying that the contractors are
151 properly licensed and have the required workers' compensation
152 insurance coverage.
153 Before a building permit is issued, this form must be completed
154 and signed by the property owner and returned to the local
155 permitting agency responsible for issuing the permit. A copy of
156 the property owner’s driver’s license, form notarization, or
157 other verification acceptable to the local permitting agency is
158 required to be presented when the permit is issued to verify the
159 property owner’s signature.
160
161 ...(Signature of property owner)...
162
163 ...(Name of property owner)...
164
165 ...(Date)...
166 Disclosure Statement
167 State law requires construction to be done by licensed
168 contractors. You have applied for a permit under an exemption to
169 that law. The exemption allows you, as the owner of your
170 property, to act as your own contractor with certain
171 restrictions even though you do not have a license. You must
172 provide direct, onsite supervision of the construction yourself.
173 You may build or improve a one-family or two-family residence or
174 a farm outbuilding. You may also build or improve a commercial
175 building, provided your costs do not exceed $75,000. The
176 building or residence must be for your own use or occupancy. It
177 may not be built or substantially improved for sale or lease. If
178 you sell or lease a building you have built or substantially
179 improved yourself within 1 year after the construction is
180 complete, the law will presume that you built or substantially
181 improved it for sale or lease, which is a violation of this
182 exemption. You may not hire an unlicensed person to act as your
183 contractor or to supervise people working on your building. It
184 is your responsibility to make sure that people employed by you
185 have licenses required by state law and by county or municipal
186 licensing ordinances. You may not delegate the responsibility
187 for supervising work to a licensed contractor who is not
188 licensed to perform the work being done. Any person working on
189 your building who is not licensed must work under your direct
190 supervision and must be employed by you, which means that you
191 must deduct F.I.C.A. and withholding tax and provide workers'
192 compensation for that employee, all as prescribed by law. Your
193 construction must comply with all applicable laws, ordinances,
194 building codes, and zoning regulations.
195 Section 2. This act shall take effect July 1, 2009.