HB 897

1	A bill to be entitled
2	An act relating to construction liens and bonds;
3	amending s. 255.05, F.S.; requiring that the bond
4	number be stated on the first page of the bond;
5	providing that a provision in a payment bond furnished
6	for a public works contract that limits the effective
7	duration of the bond is unenforceable; requiring a
8	contractor, or the contractor's attorney, to serve
9	rather than mail a notice of contest of claim against
10	the payment bond; providing additional time for
11	service when the bond is not recorded; specifying the
12	duration of the bond; amending s. 713.132, F.S.;
13	requiring notice of termination to be served on
14	lienors in privity with the owner; amending s. 713.16,
15	F.S.; revising requirements for demands for a copy of
16	a construction contract and a statement of account;
17	authorizing a lienor to make certain written demands
18	to an owner for certain written statements; providing
19	requirements for such written demands; amending s.
20	713.18, F.S.; providing additional methods by which
21	certain items may be served; revising provisions
22	relating to when service of specified items is
23	effective; specifying requirements for certain written
24	instruments under certain circumstances; amending s.
25	713.22, F.S.; requiring that a contractor serve rather
26	than mail a notice of contest of lien; amending s.
27	713.23, F.S.; revising the contents of a notice to
28	contractor; requiring that a contractor serve rather
29	than mail a notice of contest of claim against the
30	payment bond and a notice of bond; clarifying the
31	attachment of the bond to the notice; specifying the
32	duration of the bond; clarifying applicability of
33	certain provisions; providing an effective date.
34
35	Be It Enacted by the Legislature of the State of Florida:
36
37	Section 1.  Paragraph (a) of subsection (1) and paragraph
38	(a) of subsection (2) of section 255.05, Florida Statutes, are
39	amended to read:
40	255.05  Bond of contractor constructing public buildings;
41	form; action by materialmen.-
42	(1)(a)  Any person entering into a formal contract with the
43	state or any county, city, or political subdivision thereof, or
44	other public authority or private entity, for the construction
45	of a public building, for the prosecution and completion of a
46	public work, or for repairs upon a public building or public
47	work shall be required, before commencing the work or before
48	recommencing the work after a default or abandonment, to
49	execute, deliver to the public owner, and record in the public
50	records of the county where the improvement is located, a
51	payment and performance bond with a surety insurer authorized to
52	do business in this state as surety. A public entity may not
53	require a contractor to secure a surety bond under this section
54	from a specific agent or bonding company. The bond must state on
55	its front page: the name, principal business address, and phone
56	number of the contractor, the surety, the owner of the property
57	being improved, and, if different from the owner, the
58	contracting public entity; the contract number assigned by the
59	contracting public entity; the bond number assigned by the
60	surety; and a description of the project sufficient to identify
61	it, such as a legal description or the street address of the
62	property being improved, and a general description of the
63	improvement. Such bond shall be conditioned upon the
64	contractor's performance of the construction work in the time
65	and manner prescribed in the contract and promptly making
66	payments to all persons defined in s. 713.01 who furnish labor,
67	services, or materials for the prosecution of the work provided
68	for in the contract. Any claimant may apply to the governmental
69	entity having charge of the work for copies of the contract and
70	bond and shall thereupon be furnished with a certified copy of
71	the contract and bond. The claimant shall have a right of action
72	against the contractor and surety for the amount due him or her,
73	including unpaid finance charges due under the claimant's
74	contract. Such action shall not involve the public authority in
75	any expense. When such work is done for the state and the
76	contract is for $100,000 or less, no payment and performance
77	bond shall be required. At the discretion of the official or
78	board awarding such contract when such work is done for any
79	county, city, political subdivision, or public authority, any
80	person entering into such a contract which is for $200,000 or
81	less may be exempted from executing the payment and performance
82	bond. When such work is done for the state, the Secretary of
83	Management Services may delegate to state agencies the authority
84	to exempt any person entering into such a contract amounting to
85	more than $100,000 but less than $200,000 from executing the
86	payment and performance bond. In the event such exemption is
87	granted, the officer or officials shall not be personally liable
88	to persons suffering loss because of granting such exemption.
89	The Department of Management Services shall maintain information
90	on the number of requests by state agencies for delegation of
91	authority to waive the bond requirements by agency and project
92	number and whether any request for delegation was denied and the
93	justification for the denial. Any provision in a payment bond
94	furnished for public work contracts as provided by this
95	subsection which restricts the classes of persons as defined in
96	s. 713.01 protected by the bond or the venue of any proceeding
97	relating to such bond, or which limits the effective duration of
98	the bond, is unenforceable.
99	(2)(a)1.  If a claimant is no longer furnishing labor,
100	services, or materials on a project, a contractor or the
101	contractor's agent or attorney may elect to shorten the
102	prescribed time in this paragraph within which an action to
103	enforce any claim against a payment bond must provided pursuant
104	to this section may be commenced by recording in the clerk's
105	office a notice in substantially the following form:
106
107	NOTICE OF CONTEST OF CLAIM
108	AGAINST PAYMENT BOND
109
110	To: ...(Name and address of claimant)...
111
112	You are notified that the undersigned contests your notice
113	of nonpayment, dated ............, ........, and served on the
114	undersigned on ............, ........, and that the time within
115	which you may file suit to enforce your claim is limited to 60
116	days after the date of service of this notice.
117
118	DATED on ............, .........
119
120	Signed: ...(Contractor or Attorney)...
121
122	The claim of any claimant upon whom such notice is served and
123	who fails to institute a suit to enforce his or her claim
124	against the payment bond within 60 days after service of such
125	notice shall be extinguished automatically. The contractor or
126	the contractor's attorney clerk shall serve mail a copy of the
127	notice of contest to the claimant at the address shown in the
128	notice of nonpayment or most recent amendment thereto and shall
129	certify to such service on the face of such notice and record
130	the notice. Service is complete upon mailing.
131	2.  A claimant, except a laborer, who is not in privity
132	with the contractor must shall, before commencing or not later
133	than 45 days after commencing to furnish labor, services, or
134	materials for the prosecution of the work, furnish the
135	contractor with a written notice that he or she intends to look
136	to the bond for protection. If the payment bond is not recorded
137	before commencement of construction or a claimant is not
138	otherwise notified in writing of the existence of the bond, the
139	time periods for the claimant to serve any required notices or
140	file suit on the bond shall run from the date the claimant is
141	notified in writing of the existence of the bond. A claimant who
142	is not in privity with the contractor and who has not received
143	payment for his or her labor, services, or materials shall
144	deliver to the contractor and to the surety written notice of
145	the performance of the labor or delivery of the materials or
146	supplies and of the nonpayment. The notice of nonpayment must
147	may be served at any time during the progress of the work or
148	thereafter but may not be served earlier than before 45 days
149	after the first furnishing of labor, services, or materials or,
150	and not later than 90 days after the final furnishing of the
151	labor, services, or materials by the claimant or, with respect
152	to rental equipment, not later than 90 days after the date that
153	the rental equipment was last on the job site available for use.
154	Any notice of nonpayment served by a claimant who is not in
155	privity with the contractor which includes sums for retainage
156	must specify the portion of the amount claimed for retainage. An
157	No action for the labor, materials, or supplies may not be
158	instituted against the contractor or the surety unless both
159	notices have been given. Notices required or permitted under
160	this section must may be served in accordance with s. 713.18. A
161	claimant may not waive in advance his or her right to bring an
162	action under the bond against the surety. In any action brought
163	to enforce a claim against a payment bond under this section,
164	the prevailing party is entitled to recover a reasonable fee for
165	the services of his or her attorney for trial and appeal or for
166	arbitration, in an amount to be determined by the court, which
167	fee must be taxed as part of the prevailing party's costs, as
168	allowed in equitable actions. The time periods for service of a
169	notice of nonpayment or for bringing an action against a
170	contractor or a surety shall be measured from the last day of
171	furnishing labor, services, or materials by the claimant and may
172	shall not be measured by other standards, such as the issuance
173	of a certificate of occupancy or the issuance of a certificate
174	of substantial completion.
175	Section 2.  Paragraph (f) of subsection (1) and subsection
176	(4) of section 713.132, Florida Statutes, are amended to read:
177	713.132  Notice of termination.-
178	(1)  An owner may terminate the period of effectiveness of
179	a notice of commencement by executing, swearing to, and
180	recording a notice of termination that contains:
181	(f)  A statement that the owner has, before recording the
182	notice of termination, served a copy of the notice of
183	termination on the contractor and on each lienor who has a
184	direct contract with the owner or who has served a notice to
185	owner given notice. The owner is not required to serve a copy of
186	the notice of termination on any lienor who has executed a
187	waiver and release of lien upon final payment in accordance with
188	s. 713.20.
189	(4)  A notice of termination is effective to terminate the
190	notice of commencement at the later of 30 days after recording
191	of the notice of termination or the date stated in the notice of
192	termination as the date on which the notice of commencement is
193	terminated, if provided that the notice of termination has been
194	served pursuant to paragraph (1)(f) on the contractor and on
195	each lienor who has a direct contract with the owner or who has
196	served a notice to owner given notice.
197	Section 3.  Section 713.16, Florida Statutes, is amended to
198	read:
199	713.16  Demand for copy of contract and statements of
200	account; form.-
201	(1)  A copy of the contract of a lienor or owner and a
202	statement of the amount due or to become due if fixed or
203	ascertainable thereon must be furnished by any party thereto,
204	upon written demand of an owner or a lienor contracting with or
205	employed by the other party to such contract. If the owner or
206	lienor refuses or neglects to furnish such copy of the contract
207	or such statement, or willfully and falsely states the amount
208	due or to become due if fixed or ascertainable under such
209	contract, any person who suffers any detriment thereby has a
210	cause of action against the person refusing or neglecting to
211	furnish the same or willfully and falsely stating the amount due
212	or to become due for his or her damages sustained thereby. The
213	information contained in such copy or statement furnished
214	pursuant to such written demand is binding upon the owner or
215	lienor furnishing it unless actual notice of any modification is
216	given to the person demanding the copy or statement before such
217	person acts in good faith in reliance on it. The person
218	demanding such documents must pay for the reproduction thereof;
219	and, if such person fails or refuses to do so, he or she is
220	entitled only to inspect such documents at reasonable times and
221	places.
222	(2)  The owner may serve in writing a demand of any lienor
223	for a written statement under oath of his or her account showing
224	the nature of the labor or services performed and to be
225	performed, if any, the materials furnished, the materials to be
226	furnished, if known, the amount paid on account to date, the
227	amount due, and the amount to become due, if known, as of the
228	date of the statement by the lienor. Any such demand to a lienor
229	must be served on the lienor at the address and to the attention
230	of any person who is designated to receive the demand in the
231	notice to owner served by such lienor and must include a
232	description of the project, including the names of the owner,
233	the contractor, and the lienor's customer, as set forth in the
234	lienor's notice to owner, sufficient for the lienor to properly
235	identify the account in question. The failure or refusal to
236	furnish the statement does not deprive the lienor of his or her
237	lien if the demand is not served at the address of the lienor or
238	directed to the attention of the person designated to receive
239	the demand in the notice to owner. The failure or refusal to
240	furnish the statement under oath within 30 days after the
241	demand, or the furnishing of a false or fraudulent statement,
242	deprives the person so failing or refusing to furnish such
243	statement of his or her lien. If the owner serves more than one
244	demand for statement of account on a lienor and none of the
245	information regarding the account has changed since the lienor's
246	last response to a demand, the failure or refusal to furnish
247	such statement does not deprive the lienor of his or her lien.
248	The negligent inclusion or omission of any information deprives
249	the person of his or her lien to the extent the owner can
250	demonstrate prejudice from such act or omission by the lienor.
251	The failure to furnish a response to a demand for statement of
252	account does not affect the validity of any claim of lien being
253	enforced through a foreclosure case filed prior to the date the
254	demand for statement is received by the lienor.
255	(3)  A request for sworn statement of account must be in
256	substantially the following form:
257
258	REQUEST FOR SWORN STATEMENT OF ACCOUNT
259
260	WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT, SIGNED
261	UNDER OATH, WITHIN 30 DAYS OR THE FURNISHING OF A FALSE
262	STATEMENT WILL RESULT IN THE LOSS OF YOUR LIEN.
263
264	To: ...(Lienor's name and address)...
265
266	The undersigned hereby demands a written statement under oath of
267	his or her account showing the nature of the labor or services
268	performed and to be performed, if any, the materials furnished,
269	the materials to be furnished, if known, the amount paid on
270	account to date, the amount due, and the amount to become due,
271	if known, as of the date of the statement for the improvement of
272	real property identified as ...(property description)....
273
274	...(name of contractor)...
275	...(name of the lienor's customer, as specified in the lienor's
276	Notice to Owner, if such notice has been served)....
277
278	...(signature and address of owner)...
279	...(date of request for sworn statement of account)...
280
281	(4)  When a contractor has furnished a payment bond
282	pursuant to s. 713.23, he or she may, when an owner makes any
283	payment to the contractor or directly to a lienor, serve a
284	written demand on any other lienor for a written statement under
285	oath of his or her account showing the nature of the labor or
286	services performed and to be performed, if any, the materials
287	furnished, the materials to be furnished, if known, the amount
288	paid on account to date, the amount due, and the amount to
289	become due, if known, as of the date of the statement by the
290	lienor. Any such demand to a lienor must be served on the lienor
291	at the address and to the attention of any person who is
292	designated to receive the demand in the notice to contractor
293	served by such lienor. The demand must include a description of
294	the project, the names of the owner, the contractor, and the
295	lienor's customer, as specified in the lienor's notice to
296	contractor, sufficient for the lienor to properly identify the
297	account in question. The failure or refusal to furnish the
298	statement does not deprive the lienor of his or her rights under
299	the bond if the demand is not served at the address of the
300	lienor or directed to the attention of the person designated to
301	receive the demand in the notice to contractor. The failure to
302	furnish the statement within 30 days after the demand, or the
303	furnishing of a false or fraudulent statement, deprives the
304	person who fails to furnish the statement, or who furnishes the
305	false or fraudulent statement, of his or her rights under the
306	bond. If the contractor serves more than one demand for
307	statement of account on a lienor and none of the information
308	regarding the account has changed since the lienor's last
309	response to a demand, the failure or refusal to furnish such
310	statement does not deprive the lienor of his or her rights under
311	the bond. The negligent inclusion or omission of any information
312	deprives the person of his or her rights under the bond to the
313	extent the contractor can demonstrate prejudice from such act or
314	omission by the lienor. The failure to furnish a response to a
315	demand for statement of account does not affect the validity of
316	any claim on the bond being enforced in a lawsuit filed prior to
317	the date the demand for statement of account is received by the
318	lienor.
319	(5)(a)  Any lienor who has recorded a claim of lien may
320	make written demand on the owner for a written statement under
321	oath showing:
322	1.  The amount of the direct contract under which the lien
323	was recorded;
324	2.  The dates and amounts paid or to be paid by or on
325	behalf of the owner for all improvements described in the direct
326	contract;
327	3.  The reasonable estimated costs of completing the direct
328	contract under which the lien was claimed pursuant to the scope
329	of the direct contract; and
330	4.  If known, the actual cost of completion.
331	(b)  Any owner who does not provide the statement within 30
332	days after demand, or who provides a false or fraudulent
333	statement, is not a prevailing party for purposes of an award of
334	attorney attorney's fees under s. 713.29. The written demand
335	must include the following warning in conspicuous type in
336	substantially the following form:
337
338	WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT
339	WITHIN 30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL
340	RESULT IN THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY
341	ACTION TO ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING
342	THIS STATEMENT.
343
344	(6)  Any written demand served on the owner must include a
345	description of the project, the names of the contractor and the
346	lienor's customer, as specified in the lienor's notice to owner,
347	sufficient for the owner to properly identify the project in
348	question.
349	(7)(6)  For purposes of this section, the term
350	"information" means the nature and quantity of the labor,
351	services, and materials furnished or to be furnished by a lienor
352	and the amount paid, the amount due, and the amount to become
353	due on the lienor's account.
354	Section 4.  Section 713.18, Florida Statutes, is amended to
355	read:
356	713.18  Manner of serving notices and other instruments.-
357	(1)  Service of notices, claims of lien, affidavits,
358	assignments, and other instruments permitted or required under
359	this part, or copies thereof when so permitted or required,
360	unless otherwise specifically provided in this part, must be
361	made by one of the following methods:
362	(a)  By actual delivery to the person to be served; if a
363	partnership, to one of the partners; if a corporation, to an
364	officer, director, managing agent, or business agent; or, if a
365	limited liability company, to a member or manager.
366	(b)  By sending the service same by common carrier delivery
367	service or by registered, Global Express Guaranteed, or
368	certified mail, with postage or shipping paid by the sender and
369	prepaid, or by overnight or second-day delivery with evidence of
370	delivery, which may be in an electronic format.
371	(c)  If the method specified in paragraph (a) or paragraph
372	(b) cannot be accomplished, By posting on the site of the
373	improvement if service as provided by paragraph (a) or paragraph
374	(b) cannot be accomplished premises.
375	(2)  Notwithstanding subsection (1), service of if a notice
376	to owner, a notice to contractor under s. 713.23, s. 337.18, or
377	a preliminary notice under s. 255.05 is mailed by registered or
378	certified mail with postage prepaid to the person to be served
379	at any of the addresses set forth in subsection (3) within 40
380	days after the date the lienor first furnishes labor, services,
381	or materials, service of that notice is effective as of the date
382	of mailing if:
383	(a)  The notice is mailed by registered, Global Express
384	Guaranteed, or certified mail, with postage prepaid, to the
385	person to be served at any of the addresses set forth in
386	subsection (3);
387	(b)  The notice is mailed within 40 days after the date the
388	lienor first furnishes labor, services, or materials; and
389	(c)1.  The person who served the notice maintains a
390	registered or certified mail log that shows the registered or
391	certified mail number issued by the United States Postal
392	Service, the name and address of the person served, and the date
393	stamp of the United States Postal Service confirming the date of
394	mailing; or if
395	2.  The person who served the notice maintains electronic
396	tracking records generated through use of the United States
397	Postal Service Confirm service or a similar service containing
398	the postal tracking number, the name and address of the person
399	served, and verification of the date of receipt by the United
400	States Postal Service.
401	(3)(a)  Service of If an instrument served pursuant to this
402	section is effective on the date of mailing if the instrument:
403	1.  Is sent to the last address shown in the notice of
404	commencement or any amendment thereto or, in the absence of a
405	notice of commencement, to the last address shown in the
406	building permit application, or to the last known address of the
407	person to be served; and, is not received, but
408	2.  Is returned as being "refused," "moved, not
409	forwardable," or "unclaimed," or is otherwise not delivered or
410	deliverable through no fault of the person serving the item,
411	then service is effective on the date the instrument was sent.
412	(b)  If the address shown in the notice of commencement or
413	any amendment to the notice of commencement, or, in the absence
414	of a notice of commencement, in the building permit application,
415	is incomplete for purposes of mailing or delivery, the person
416	serving the item may complete the address and properly format it
417	according to United States Postal Service addressing standards
418	using information obtained from the property appraiser or
419	another public record or directory without affecting the
420	validity of service under this section.
421	(4)  A notice served by a lienor on one owner or one
422	partner of a partnership owning the real property If the real
423	property is owned by more than one person or a partnership, a
424	lienor may serve any notices or other papers under this part on
425	any one of such owners or partners, and such notice is deemed
426	notice to all owners and partners.
427	Section 5.  Section 713.22, Florida Statutes, is amended to
428	read:
429	713.22  Duration of lien.-
430	(1)  A No lien provided by this part does not shall
431	continue for a longer period than 1 year after the claim of lien
432	has been recorded or 1 year after the recording of an amended
433	claim of lien that shows a later date of final furnishing of
434	labor, services, or materials, unless within that time an action
435	to enforce the lien is commenced in a court of competent
436	jurisdiction. A lien that has been continued beyond the 1-year
437	period The continuation of the lien effected by the commencement
438	of an the action is shall not enforceable be good against
439	creditors or subsequent purchasers for a valuable consideration
440	and without notice, unless a notice of lis pendens is recorded.
441	(2)  An owner or the owner's agent or attorney may elect to
442	shorten the time prescribed in subsection (1) within which to
443	commence an action to enforce any claim of lien or claim against
444	a bond or other security under s. 713.23 or s. 713.24 by
445	recording in the clerk's office a notice in substantially the
446	following form:
447
448	NOTICE OF CONTEST OF LIEN
449
450	To: ...(Name and address of lienor)...
451
452	You are notified that the undersigned contests the claim of lien
453	filed by you on ...., ...(year)..., and recorded in .... Book
454	...., Page ...., of the public records of .... County, Florida,
455	and that the time within which you may file suit to enforce your
456	lien is limited to 60 days from the date of service of this
457	notice. This .... day of ...., ...(year)....
458
459	Signed: ...(Owner or Attorney)...
460
461	The lien of any lienor upon whom such notice is served and who
462	fails to institute a suit to enforce his or her lien within 60
463	days after service of such notice shall be extinguished
464	automatically. The owner or the owner's attorney clerk shall
465	serve mail a copy of the notice of contest to the lien claimant
466	at the address shown in the claim of lien or most recent
467	amendment thereto and shall certify to such service on the face
468	of such notice and record the notice. Service shall be deemed
469	complete upon mailing.
470	Section 6.  Paragraphs (c), (e), and (f) of subsection (1)
471	and subsections (2) and (4) of section 713.23, Florida Statutes,
472	are amended to read:
473	713.23  Payment bond.-
474	(1)
475	(c)  Either Before beginning or within 45 days after
476	beginning to furnish labor, materials, or supplies, a lienor who
477	is not in privity with the contractor, except a laborer, shall
478	serve the contractor with notice in writing that the lienor will
479	look to the contractor's bond for protection on the work. If a
480	notice of commencement is not recorded, or a reference to the
481	bond is not given in the notice of commencement, and in either
482	case if the lienor not in privity with the contractor is not
483	otherwise notified in writing of the existence of the bond, the
484	lienor not in privity with the contractor shall have 45 days
485	from the date the lienor is notified of the existence of the
486	bond within which to serve the notice. The notice may be in
487	substantially the following form and may be combined with a
488	notice to owner given under s. 713.06 and, if so, may be
489	entitled "NOTICE TO OWNER/NOTICE TO CONTRACTOR":
490
491	NOTICE TO CONTRACTOR
492
493	To ...(name and address of contractor)...
494
495	The undersigned hereby informs you that he or she has furnished
496	or is furnishing services or materials as follows:
497
498	...(general description of services or materials)... for the
499	improvement of the real property identified as ...(property
500	description)... under an order given by ...(lienor's
501	customer)....
502
503	This notice is to inform you that the undersigned intends to
504	look to the contractor's bond to secure payment for the
505	furnishing of materials or services for the improvement of the
506	real property.
507
508	...(name of lienor)...
509	...(signature of lienor or lienor's representative)...
510	...(date)...
511	...(lienor's address)...
512
513	The undersigned notifies you that he or she has furnished or is
514	furnishing ...(services or materials)... for the improvement of
515	the real property identified as ...(property description)...
516	owned by ...(owner's name and address)... under an order given
517	by .... and that the undersigned will look to the contractor's
518	bond for protection on the work.
519
520	...(Lienor's signature and address)...
521
522	(e)  An No action for the labor or materials or supplies
523	may not be instituted or prosecuted against the contractor or
524	surety unless both notices have been given, if required by this
525	section. An No action may not shall be instituted or prosecuted
526	against the contractor or against the surety on the bond under
527	this section after 1 year from the performance of the labor or
528	completion of delivery of the materials and supplies. The time
529	period for bringing an action against the contractor or surety
530	on the bond shall be measured from the last day of furnishing
531	labor, services, or materials by the lienor. The time period may
532	and shall not be measured by other standards, such as the
533	issuance of a certificate of occupancy or the issuance of a
534	certificate of substantial completion. A contractor or the
535	contractor's agent or attorney may elect to shorten the
536	prescribed time within which an action to enforce any claim
537	against a payment bond provided under this section or s. 713.245
538	must may be commenced at any time after a notice of nonpayment,
539	if required, has been served for the claim by recording in the
540	clerk's office a notice in substantially the following form:
541
542	NOTICE OF CONTEST OF CLAIM
543	AGAINST PAYMENT BOND
544
545	To:  ...(Name and address of lienor)...
546
547	You are notified that the undersigned contests your notice
548	of nonpayment, dated ...., ...., and served on the undersigned
549	on ...., ...., and that the time within which you may file suit
550	to enforce your claim is limited to 60 days from the date of
551	service of this notice.
552
553	DATED on ...., .....
554	Signed: ...(Contractor or Attorney)...
555
556	The claim of any lienor upon whom the notice is served and who
557	fails to institute a suit to enforce his or her claim against
558	the payment bond within 60 days after service of the notice
559	shall be extinguished automatically. The contractor or the
560	contractor's attorney clerk shall serve mail a copy of the
561	notice of contest to the lienor at the address shown in the
562	notice of nonpayment or most recent amendment thereto and shall
563	certify to such service on the face of the notice and record the
564	notice. Service is complete upon mailing.
565	(f)  Any lienor has a direct right of action on the bond
566	against the surety. Any provision in a payment bond which
567	restricts A bond must not contain any provisions restricting the
568	classes of persons defined in s. 713.01 who are protected by the
569	payment bond, restricts thereby or the venue of any proceeding
570	relating to such payment bond, or limits the effective duration
571	of the payment bond is unenforceable. The surety is not entitled
572	to the defense of pro tanto discharge as against any lienor
573	because of changes or modifications in the contract to which the
574	surety is not a party; but the liability of the surety may not
575	be increased beyond the penal sum of the bond. A lienor may not
576	waive in advance his or her right to bring an action under the
577	bond against the surety.
578	(2)  The bond shall secure every lien under the direct
579	contract accruing subsequent to its execution and delivery,
580	except that of the contractor. Every claim of lien, except that
581	of the contractor, filed subsequent to execution and delivery of
582	the bond shall be transferred to it with the same effect as
583	liens transferred under s. 713.24. Record notice of the transfer
584	shall be effected by the contractor, or any person having an
585	interest in the property against which the claim of lien has
586	been asserted, by recording in the clerk's office a notice, with
587	the bond attached, in substantially the following form:
588
589	NOTICE OF BOND
590
591	To ...(Name and Address of Lienor)...
592
593	You are notified that the claim of lien filed by you on ....,
594	...., and recorded in Official Records Book .... at page .... of
595	the public records of .... County, Florida, is secured by a
596	bond, a copy being attached.
597
598	Signed: ...(Name of person recording notice)...
599
600	The notice shall be verified. The person recording the notice of
601	bond clerk shall serve mail a copy of the notice along with a
602	copy of the bond to the lienor at the address shown in the claim
603	of lien, or the most recent amendment to it; shall certify to
604	the service on the face of the notice; and shall record the
605	notice. The clerk shall receive the same fee as prescribed in s.
606	713.24(1) for certifying to a transfer of lien.
607	(4)  The provisions of s. 713.24(3) shall apply to bonds
608	under this section except where those provisions conflict with
609	this section.
610	Section 7.  This act shall take effect October 1, 2012.

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