Florida Senate - 2020                                    SB 1422
       
       
        
       By Senator Flores
       
       
       
       
       
       39-01484-20                                           20201422__
    1                        A bill to be entitled                      
    2         An act relating to construction liens; amending s.
    3         713.01, F.S.; revising and deleting definitions;
    4         amending s. 713.015, F.S.; revising the notice to
    5         owner in certain direct contracts; revising
    6         construction; amending s. 713.02, F.S.; deleting a
    7         provision establishing the right of certain persons
    8         who are not in privity with an owner to have a lien on
    9         certain real property; deleting provisions authorizing
   10         an owner and a contractor to agree upon the contractor
   11         furnishing a payment bond; conforming provisions to
   12         changes made by the act; amending s. 713.06, F.S.;
   13         deleting provisions establishing the right of persons
   14         who are not in privity with the owner to have a lien
   15         on the owner’s real property; revising provisions
   16         relating to payments due under a direct contract;
   17         revising the form of the required final payment
   18         affidavit; revising provisions relating to the order
   19         in which liens must be paid under a direct contract;
   20         conforming provisions to changes made by the act;
   21         repealing s. 713.23, F.S., relating to payment bonds;
   22         repealing s. 713.235, F.S., relating to waivers of the
   23         right to claim against payment bonds; repealing s.
   24         713.245, F.S., relating to conditional payment bonds;
   25         amending ss. 713.03, 713.04, 713.05, 713.07, 713.08,
   26         713.10, 713.12, 713.13, 713.132, 713.135, 713.16,
   27         713.165, 713.18, 713.20, 713.24, 713.29, 713.31,
   28         713.345, 713.346, 713.3471, and 713.35, F.S.;
   29         conforming provisions to changes made by the act and
   30         making technical changes; amending ss. 713.22 and
   31         95.11, F.S.; conforming cross-references; providing an
   32         effective date.
   33          
   34  Be It Enacted by the Legislature of the State of Florida:
   35  
   36         Section 1. Present subsections (22) through (29) of section
   37  713.01, Florida Statutes, are redesignated as subsections (20)
   38  through (27), respectively, and subsections (8), (18), and (19)
   39  and present subsections (20) and (21) of that section are
   40  amended, to read:
   41         713.01 Definitions.—As used in this part, the term:
   42         (8) “Contractor” means a person other than a materialman or
   43  laborer who enters into a direct contract with the owner of real
   44  property for improving it, or who takes over from a contractor
   45  as so defined the entire remaining work under such direct
   46  contract. The term “contractor” includes an architect, landscape
   47  architect, or engineer who improves real property under pursuant
   48  to a design-build contract authorized by s. 489.103(16).
   49         (18) “Lienor” means a person who is:
   50         (a) A contractor;
   51         (b) A subcontractor;
   52         (c) A sub-subcontractor;
   53         (d) A laborer;
   54         (e) A materialman who contracts with the owner, a
   55  contractor, a subcontractor, or a sub-subcontractor; or
   56         (f) A professional lienor under s. 713.03,;
   57  
   58  and who has a direct contract with the owner and who has a lien
   59  or prospective lien upon real property under this part, and
   60  includes his or her successor in interest. No other person may
   61  have a lien under this part.
   62         (19)“Lienor giving notice” means any lienor, except a
   63  contractor, who has duly and timely served a notice to the owner
   64  and, if required, to the contractor and subcontractor, as
   65  provided in s. 713.06(2).
   66         (19)(20) “Materialman” means any person who furnishes
   67  materials to the owner under a direct contract or to the owner,
   68  contractor, subcontractor, or sub-subcontractor under contract
   69  on the site of the improvement or for direct delivery to the
   70  site of the improvement or, for specially fabricated materials,
   71  off the site of the improvement for the particular improvement,
   72  and who performs no labor in the installation thereof.
   73         (21)“Notice by lienor” means the notice to owner served as
   74  provided in s. 713.06(2).
   75         Section 2. Section 713.015, Florida Statutes, is amended to
   76  read:
   77         713.015 Mandatory provisions for direct contracts.—
   78         (1) Any direct contract greater than $2,500 between an
   79  owner and a contractor, related to improvements to real property
   80  consisting of single or multiple family dwellings up to and
   81  including four units, must contain the following notice
   82  provision printed in no less than 12-point, capitalized,
   83  boldfaced type on the front page of the contract or on a
   84  separate page, signed by the owner and dated:
   85  
   86  ACCORDING TO FLORIDA’S CONSTRUCTION LIEN LAW (SECTIONS 713.001
   87  713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR
   88  PROVIDE MATERIALS AND SERVICES, HAVE A DIRECT CONTRACT WITH YOU,
   89  AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR
   90  PAYMENT AGAINST YOUR PROPERTY. THIS CLAIM IS KNOWN AS A
   91  CONSTRUCTION LIEN. IF YOUR CONTRACTOR OR A SUBCONTRACTOR FAILS
   92  TO PAY SUBCONTRACTORS, SUB-SUBCONTRACTORS, OR MATERIAL
   93  SUPPLIERS, THOSE PEOPLE WHO ARE OWED MONEY MAY LOOK TO YOUR
   94  PROPERTY FOR PAYMENT, EVEN IF YOU HAVE ALREADY PAID YOUR
   95  CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR, YOUR
   96  CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR PROPERTY. THIS MEANS IF
   97  A LIEN IS FILED YOUR PROPERTY COULD BE SOLD AGAINST YOUR WILL TO
   98  PAY FOR LABOR, MATERIALS, OR OTHER SERVICES THAT YOU YOUR
   99  CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED TO PAY. TO PROTECT
  100  YOURSELF, YOU SHOULD STIPULATE IN THIS CONTRACT THAT BEFORE ANY
  101  PAYMENT IS MADE, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH
  102  A WRITTEN RELEASE OF LIEN FROM ANY PERSON OR COMPANY THAT HAS
  103  PROVIDED TO YOU A “NOTICE TO OWNER.” FLORIDA’S CONSTRUCTION LIEN
  104  LAW IS COMPLEX, AND IT IS RECOMMENDED THAT YOU CONSULT AN
  105  ATTORNEY.
  106         (2)(a) If the contract is written, the notice must be in
  107  the contract document. If the contract is oral or implied, the
  108  notice must be provided in a document referencing the contract.
  109         (b) The failure to provide such written notice does not bar
  110  the enforcement of a lien against a person who has not been
  111  adversely affected.
  112         (c) This section may not be construed to adversely affect
  113  the lien and bond rights of lienors who are not in privity with
  114  the owner. This section does not apply when the owner is a
  115  contractor licensed under chapter 489 or is a person who created
  116  parcels or offers parcels for sale or lease in the ordinary
  117  course of business.
  118         Section 3. Subsections (4) through (7) of section 713.02,
  119  Florida Statutes, are amended to read:
  120         713.02 Types of lienors and exemptions.—
  121         (4)Persons who are not in privity with an owner and who
  122  perform labor or services or furnish materials constituting a
  123  part of an improvement under the direct contract of another
  124  person shall have rights to a lien on real property as provided
  125  in s. 713.06.
  126         (4)(5) Any improvement for which the direct contract price
  127  is $2,500 or less shall be exempt from all other provisions of
  128  this part except the provisions of s. 713.05.
  129         (6)The owner and contractor may agree that the contractor
  130  shall furnish a payment bond as provided in s. 713.23, and upon
  131  receipt of the bond the owner is exempt from the other
  132  provisions of this part as to that direct contract, but this
  133  does not exempt the owner from the lien of the contractor who
  134  furnishes the bond. If the bond is provided, it shall secure all
  135  liens subsequently accruing under this part as provided in s.
  136  713.23.
  137         (5)(7) Notwithstanding any other provision of this part, a
  138  no lien may not shall exist in favor of any contractor,
  139  subcontractor, or sub-subcontractor who is unlicensed as
  140  provided in s. 489.128 or s. 489.532. Notwithstanding any other
  141  provision of this part, if a contract is rendered unenforceable
  142  by an unlicensed contractor, subcontractor, or sub-subcontractor
  143  under pursuant to s. 489.128 or s. 489.532, such
  144  unenforceability does shall not affect the rights of any other
  145  persons in privity with the owner to enforce the contract or,
  146  lien, or bond remedies and shall not affect the obligations of a
  147  surety that has provided a bond on behalf of the unlicensed
  148  contractor, subcontractor, or sub-subcontractor. It shall not be
  149  a defense to any claim on a bond or indemnity agreement that the
  150  principal or indemnitor is unlicensed as provided in s. 489.128
  151  or s. 489.532.
  152         Section 4. Section 713.06, Florida Statutes, is amended to
  153  read:
  154         713.06 Liens of persons not in privity; Proper payments.—
  155         (1)A materialman or laborer, either of whom is not in
  156  privity with the owner, or a subcontractor or sub-subcontractor
  157  who complies with the provisions of this part and is subject to
  158  the limitations thereof, has a lien on the real property
  159  improved for any money that is owed to him or her for labor,
  160  services, or materials furnished in accordance with his or her
  161  contract and with the direct contract and for any unpaid finance
  162  charges due under the lienor’s contract. A materialman or
  163  laborer, either of whom is not in privity with the owner, or a
  164  subcontractor or sub-subcontractor who complies with the
  165  provisions of this part and is subject to the limitations
  166  thereof, also has a lien on the owner’s real property for labor,
  167  services, or materials furnished to improve public property if
  168  the improvement of the public property is furnished in
  169  accordance with his or her contract and with the direct
  170  contract. The total amount of all liens allowed under this part
  171  for furnishing labor, services, or material covered by any
  172  certain direct contract must not exceed the amount of the
  173  contract price fixed by the direct contract except as provided
  174  in subsection (3). No person may have a lien under this section
  175  except those lienors specified in it, as their designations are
  176  defined in s. 713.01.
  177         (2)(a)All lienors under this section, except laborers, as
  178  a prerequisite to perfecting a lien under this chapter and
  179  recording a claim of lien, must serve a notice on the owner
  180  setting forth the lienor’s name and address, a description
  181  sufficient for identification of the real property, and the
  182  nature of the services or materials furnished or to be
  183  furnished. A sub-subcontractor or a materialman to a
  184  subcontractor must serve a copy of the notice on the contractor
  185  as a prerequisite to perfecting a lien under this chapter and
  186  recording a claim of lien. A materialman to a sub-subcontractor
  187  must serve a copy of the notice to owner on the contractor as a
  188  prerequisite to perfecting a lien under this chapter and
  189  recording a claim of lien. A materialman to a sub-subcontractor
  190  shall serve the notice to owner on the subcontractor if the
  191  materialman knows the name and address of the subcontractor. The
  192  notice must be served before commencing, or not later than 45
  193  days after commencing, to furnish his or her labor, services, or
  194  materials, but, in any event, before the date of the owner’s
  195  disbursement of the final payment after the contractor has
  196  furnished the affidavit under subparagraph (3)(d)1. The notice
  197  must be served regardless of the method of payments by the
  198  owner, whether proper or improper, and does not give to the
  199  lienor serving the notice any priority over other lienors in the
  200  same category; and the failure to serve the notice, or to timely
  201  serve it, is a complete defense to enforcement of a lien by any
  202  person. The serving of the notice does not dispense with
  203  recording the claim of lien. The notice is not a lien, cloud, or
  204  encumbrance on the real property nor actual or constructive
  205  notice of any of them.
  206         (b)If the owner, in his or her notice of commencement, has
  207  designated a person in addition to himself or herself to receive
  208  a copy of such lienor’s notice, as provided in s. 713.13(1)(b),
  209  the lienor shall serve a copy of his or her notice on the person
  210  so designated. The failure by the lienor to serve such copy,
  211  however, does not invalidate an otherwise valid lien.
  212         (c)The notice may be in substantially the following form
  213  and must include the information and the warning contained in
  214  the following form:
  215  
  216         WARNING! FLORIDA’S CONSTRUCTION LIEN LAW ALLOWS SOME
  217         UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL
  218         SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF
  219         YOU HAVE MADE PAYMENT IN FULL.
  220  
  221  UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID
  222  MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOUR PAYING
  223  TWICE.
  224  
  225  TO AVOID A LIEN AND PAYING TWICE, YOU MUST OBTAIN A WRITTEN
  226  RELEASE FROM US EVERY TIME YOU PAY YOUR CONTRACTOR.
  227  
  228                           NOTICE TO OWNER                         
  229  
  230  To ...(Owner’s name and address)...
  231  
  232  The undersigned hereby informs you that he or she has furnished
  233  or is furnishing services or materials as follows:
  234  ...(General description of services or materials)... for the
  235  improvement of the real property identified as ...(property
  236  description)... under an order given by.............
  237  
  238  Florida law prescribes the serving of this notice and restricts
  239  your right to make payments under your contract in accordance
  240  with Section 713.06, Florida Statutes.
  241  
  242                      IMPORTANT INFORMATION FOR                    
  243                           YOUR PROTECTION                         
  244  
  245         Under Florida’s laws, those who work on your property or
  246  provide materials and are not paid have a right to enforce their
  247  claim for payment against your property. This claim is known as
  248  a construction lien.
  249         If your contractor fails to pay subcontractors or material
  250  suppliers or neglects to make other legally required payments,
  251  the people who are owed money may look to your property for
  252  payment, EVEN IF YOU HAVE PAID YOUR CONTRACTOR IN FULL.
  253  
  254  PROTECT YOURSELF:
  255         —RECOGNIZE that this Notice to Owner may result in a lien
  256  against your property unless all those supplying a Notice to
  257  Owner have been paid.
  258         —LEARN more about the Construction Lien Law, Chapter 713,
  259  Part I, Florida Statutes, and the meaning of this notice by
  260  contacting an attorney or the Florida Department of Business and
  261  Professional Regulation.
  262  ...(Lienor’s Signature)...
  263  ...(Lienor’s Name)...
  264  ...(Lienor’s Address)...
  265  
  266  Copies to: ...(Those persons listed in Section 713.06(2)(a) and
  267  (b), Florida Statutes)...
  268         The form may be combined with a notice to contractor given
  269  under s. 255.05 or s. 713.23 and, if so, may be entitled “NOTICE
  270  TO OWNER/NOTICE TO CONTRACTOR.”
  271         (d)A notice to an owner served on a lender must be in
  272  writing, must be served in accordance with s. 713.18, and shall
  273  be addressed to the persons designated, if any, and to the place
  274  and address designated in the notice of commencement. Any lender
  275  who, after receiving a notice provided under this subsection,
  276  pays a contractor on behalf of the owner for an improvement
  277  shall make proper payments as provided in paragraph (3)(c) as to
  278  each such notice received by the lender. The failure of a lender
  279  to comply with this paragraph renders the lender liable to the
  280  owner for all damages sustained by the owner as a result of that
  281  failure. This paragraph does not give any person other than an
  282  owner a claim or right of action against a lender for the
  283  failure of the lender to comply with this paragraph. Further,
  284  this paragraph does not prohibit a lender from disbursing
  285  construction funds at any time directly to the owner, in which
  286  event the lender has no obligation to make proper payments under
  287  this paragraph.
  288         (e)A lienor, in the absence of a recorded notice of
  289  commencement, may rely on the information contained in the
  290  building permit application to serve the notice prescribed in
  291  paragraphs (a), (b), and (c).
  292         (f)If a lienor has substantially complied with the
  293  provisions of paragraphs (a), (b), and (c), errors or omissions
  294  do not prevent the enforcement of a claim against a person who
  295  has not been adversely affected by such omission or error.
  296  However, a lienor must strictly comply with the time
  297  requirements of paragraph (a).
  298         (1)(3) The owner may make proper payments on the direct
  299  contract as to lienors under this chapter section, in the
  300  following manner:
  301         (a) If the description of the property in the notice
  302  prescribed by s. 713.13 is incorrect and the error adversely
  303  affects any lienor, payments made on the direct contract shall
  304  be held improperly paid to that lienor; but this does not apply
  305  to clerical errors when the description listed covers the
  306  property where the improvements are.
  307         (b) The owner may pay to any laborers the whole or any part
  308  of the amounts that are shall then be due and payable to them
  309  respectively for labor or services performed by them and covered
  310  by the direct contract, and shall deduct the same from the
  311  balance due the contractor under a direct contract.
  312         (c) When any payment becomes due to the lienor contractor
  313  on the direct contract, except the final payment:
  314         1. The owner shall pay or cause to be paid, within the
  315  specifications of the direct contract limitations imposed by
  316  subparagraph 2., the sum then due to each subcontractor, sub
  317  subcontractor, materialman, or laborer lienor giving notice
  318  prior to the time of the payment. The owner may require, and, in
  319  such event, the lienor contractor shall furnish as a
  320  prerequisite to requiring payment to himself or herself, an
  321  affidavit as prescribed in subparagraph (d)1., on any payment
  322  made, or to be made, on a direct contract, but the furnishing of
  323  the affidavit shall not relieve the owner of his or her
  324  responsibility to pay or cause to be paid all lienors giving
  325  notice. The owner shall be under no obligation to any lienor,
  326  except laborers, from whom he or she has not received a notice
  327  to owner at the time of making a payment.
  328         2.When the payment due is insufficient to pay all bills of
  329  lienors giving notice, the owner shall prorate the amount then
  330  due under the direct contract among the lienors giving notice
  331  pro rata in the manner prescribed in subsection (4). Lienors
  332  receiving money shall execute partial releases, as provided in
  333  s. 713.20(2), to the extent of the payment received.
  334         2.3. If any affidavit permitted hereunder recites any
  335  outstanding bills for labor, services, or materials, the owner
  336  may pay the bills in full direct to the person or firm to which
  337  they are due if the balance due on the direct contract at the
  338  time the affidavit is given is sufficient to pay the bills and
  339  shall deduct the amounts so paid from the balance of payment due
  340  the lienor contractor. This subparagraph shall not create any
  341  obligation of the owner to pay any person who is not a lienor
  342  giving notice.
  343         4.No person furnishing labor or material, or both, who is
  344  required to serve a notice under paragraph (2)(a) and who did
  345  not serve the notice and whose time for service has expired
  346  shall be entitled to be paid by the owner because he or she is
  347  listed in an affidavit furnished by the contractor under
  348  subparagraph (c)1.
  349         3.5. If the contract is terminated before completion, the
  350  lienor contractor shall comply with subparagraph (d)1.
  351         (d) When the final payment under a direct contract becomes
  352  due the contractor:
  353         1. The lienor contractor shall give to the owner a final
  354  payment affidavit stating, if that be the fact, that all lienors
  355  under his or her direct contract who have timely served a notice
  356  to owner on the owner and the contractor have been paid in full
  357  or, if the fact be otherwise, showing the name of each such
  358  lienor who has not been paid in full and the amount due or to
  359  become due each for labor, services, or materials furnished. The
  360  affidavit must be in substantially the following form:
  361  
  362            LIENOR’S CONTRACTOR’S FINAL PAYMENT AFFIDAVIT          
  363  State of Florida
  364  County of ....
  365  Before me, the undersigned authority, personally appeared
  366  ...(name of affiant)..., who, after being first duly sworn,
  367  deposes and says of his or her personal knowledge the following:
  368         1. He or she is the ...(title of affiant)..., of ...(name
  369  of lienor’s contractor’s business)..., which does business in
  370  the State of Florida, hereinafter referred to as the “Lienor
  371  “Contractor.”
  372         2. Lienor, under Contractor, pursuant to a contract with
  373  ...(name of owner)..., hereinafter referred to as the “Owner,”
  374  has furnished or caused to be furnished labor, materials, and
  375  services for the construction of certain improvements to real
  376  property as more particularly set forth in said contract.
  377         3. This affidavit is executed by the Lienor Contractor in
  378  accordance with section 713.06 of the Florida Statutes for the
  379  purposes of obtaining final payment from the Owner in the amount
  380  of $.....
  381         4. All work to be performed under the direct contract has
  382  been fully completed, and all bills for labor, services, or
  383  materials lienors under the direct contract have been paid in
  384  full, except the following listed lienors:
  385         BILL OR INVOICE NUMBER NAME OF LIENOR................AMOUNT
  386  DUE
  387         Signed, sealed, and delivered this .... day of ...., ....,
  388  By ...(name of affiant)...
  389  ...(title of affiant)...
  390  ...(name of lienor’s contractor’s business)...
  391  
  392         Sworn to and subscribed before me this .... day of
  393         .... by ...(name of affiant)..., who is personally
  394         known to me or produced .... as identification, and
  395         did take an oath.
  396  
  397         ...(name of notary public)...
  398         Notary Public
  399         My Commission Expires:
  400         ...(date of expiration of commission)...
  401  
  402  The lienor may not contractor shall have a no lien or right of
  403  action against the owner for labor, services, or materials
  404  furnished under the direct contract while in default for not
  405  giving the owner the affidavit; however, the negligent inclusion
  406  or omission of any information in the affidavit which has not
  407  prejudiced the owner does not constitute a default that operates
  408  to defeat an otherwise valid lien. The lienor contractor shall
  409  execute the affidavit and deliver it to the owner at least 5
  410  days before instituting an action as a prerequisite to the
  411  institution of any action to enforce his or her lien under this
  412  chapter, even if the final payment has not become due because
  413  the direct contract is terminated for a reason other than
  414  completion and regardless of whether the contractor has any
  415  lienors working under him or her or not.
  416         2. If the lienor’s contractor’s affidavit required in this
  417  subsection recites any outstanding bills for labor, services, or
  418  materials, the owner may, after giving the lienor contractor at
  419  least 10 days’ written notice, pay such bills in full direct to
  420  the person or firm to which they are due, if the balance due on
  421  a direct contract at the time the affidavit is given is
  422  sufficient to pay them and lienors giving notice, and shall
  423  deduct the amounts so paid from the balance due the lienor
  424  contractor. Lienors listed in said affidavit not giving notice,
  425  whose 45-day notice time has not expired, shall be paid in full
  426  or pro rata, as appropriate, from any balance then remaining due
  427  the contractor; but no lienor whose notice time has expired
  428  shall be paid by the owner or by any other person except the
  429  person with whom that lienor has a contract.
  430         3.If the balance due is not sufficient to pay in full all
  431  lienors listed in the affidavit and entitled to payment from the
  432  owner under this part and other lienors giving notice, the owner
  433  shall pay no money to anyone until such time as the contractor
  434  has furnished him or her with the difference; however, if the
  435  contractor fails to furnish the difference within 10 days from
  436  delivery of the affidavit or notice from the owner to the
  437  contractor to furnish the affidavit, the owner shall determine
  438  the amount due each lienor and shall disburse to them the
  439  amounts due from him or her on a direct contract in accordance
  440  with the procedure established by subsection (4).
  441         3.4. The owner shall have the right to rely on the lienor’s
  442  contractor’s affidavit given under this paragraph in making the
  443  final payment, unless there are lienors giving notice who are
  444  not listed in the affidavit. If there are lienors giving notice
  445  who are not so listed, the owner may pay such lienors and any
  446  persons listed in the affidavit that are entitled to be paid by
  447  the owner under subparagraph 2. and shall thereupon be
  448  discharged of any further responsibility under the direct
  449  contract, except for any balance that may be due to the
  450  contractor.
  451         4.5. The owner shall retain and not disburse the final
  452  payment due under the direct contract that shall not be
  453  disbursed until the lienor’s contractor’s affidavit under
  454  subparagraph 1. has been furnished to the owner.
  455         5.6.If When final payment has become due to the contractor
  456  and the owner fails to withhold final payment when it becomes
  457  due, as required by subparagraph 4.5., the property improved is
  458  shall be subject to the full amount of all valid liens of which
  459  the owner has notice at the time the lienor contractor furnishes
  460  his or her affidavit.
  461         (e) If the improvement is abandoned before completion, the
  462  owner shall determine the amount due each lienor giving notice
  463  and shall pay the same in full or prorate in the same manner as
  464  provided in subsection (2)(4).
  465         (f) A lienor does not No contractor shall have any right to
  466  require the owner to pay any money to him or her under a direct
  467  contract if such money cannot be properly paid by the owner to
  468  the lienor contractor in accordance with this section.
  469         (g) Except with written consent of the lienor contractor,
  470  before paying any money directly to any person or firm under
  471  contract with the lienor except the contractor or any laborer,
  472  the owner shall give the lienor contractor at least 10 days’
  473  written notice of his or her intention to do so, and the amount
  474  he or she proposes to pay each person or firm lienor.
  475         (h) When the owner has properly retained all sums required
  476  in this section to be retained but has otherwise made improper
  477  payments, the owner’s real property is shall be liable to all
  478  lienors laborers, subcontractors, sub-subcontractors, and
  479  materialmen complying with this chapter only to the extent of
  480  the retentions and the improper payments, notwithstanding the
  481  other provisions of this subsection. Any money paid by the owner
  482  on a direct contract, the payment of which is proved to have
  483  caused no detriment to any certain lienor, is considered shall
  484  be held properly paid as to the lienor., and If any of the money
  485  is considered shall be held not properly paid as to any other
  486  lienors, the presumption that the money is not properly paid
  487  goes entire benefit of its being held not properly paid as to
  488  them shall go to the lienors.
  489         (2)(a)(4)(a)In determining the amounts for which Liens
  490  between lienors claiming under a direct contract shall be paid
  491  by the owner or allowed by the court within the total amount
  492  fixed by the direct contract and under the provisions of this
  493  section, the owner or court shall be paid pay or allow such
  494  liens in the following order:
  495         1. Liens of all laborers.
  496         2. Liens of all persons other than the contractor.
  497         3. Lien of the contractor.
  498         (b) Should the total amount for which liens under such
  499  direct contract may be allowed be less than the total amount of
  500  liens under such contract in all classes above mentioned, all
  501  liens in a class shall be allowed for their full amounts before
  502  any liens shall be allowed to any subsequent class. Should the
  503  amount applicable to the liens of any single class be
  504  insufficient to permit all liens within that class to be allowed
  505  for their full amounts, each lien shall be allowed for its pro
  506  rata share of the total amount applicable to liens of that
  507  class; but if the same labor, services, or materials shall be
  508  covered by liens of more than one class, such labor, services,
  509  or materials shall be allowed only in the earliest class by
  510  which they shall be covered; and also if the same labor,
  511  services, or materials shall be covered by liens of two or more
  512  lienors of the same class, such labor, services, or materials
  513  shall be allowed only in the lien of the lienor farthest removed
  514  from the contractor. This section does shall not be construed to
  515  affect the priority of liens derived under separate direct
  516  contracts.
  517         Section 5. Section 713.23, Florida Statutes, is repealed.
  518         Section 6. Section 713.235, Florida Statutes, is repealed.
  519         Section 7. Section 713.245, Florida Statutes, is repealed.
  520         Section 8. Subsections (1) and (3) of section 713.03,
  521  Florida Statutes, are amended to read:
  522         713.03 Liens for professional services.—
  523         (1) Any person who performs services as architect,
  524  landscape architect, interior designer, engineer, or surveyor
  525  and mapper, subject to compliance with and the limitations
  526  imposed by this part, has a lien on the real property improved
  527  for any money that is owing to him or her for his or her
  528  services used in connection with improving the real property or
  529  for his or her services in supervising any portion of the work
  530  of improving the real property, rendered in accordance with his
  531  or her contract and with the direct contract.
  532         (3) A lien No liens under this section may not shall be
  533  acquired until a claim of lien is recorded. A No lienor under
  534  this section is not shall be required to serve a notice to owner
  535  as provided in s. 713.06(2) or an affidavit concerning unpaid
  536  lienors as provided in s. 713.06(1) s. 713.06(3).
  537         Section 9. Section 713.04, Florida Statutes, is amended to
  538  read:
  539         713.04 Subdivision improvements.—
  540         (1) Any lienor who, regardless of privity, performs
  541  services or furnishes material to real property for the purpose
  542  of making it suitable as the site for the construction of an
  543  improvement or improvements is shall be entitled to a lien on
  544  the real property for any money that is owed to her or him for
  545  her or his services or materials furnished in accordance with
  546  her or his contract and the direct contract. The total amount of
  547  liens allowed under this section may shall not exceed the amount
  548  of the direct contract under which the lienor furnishes labor,
  549  materials, or services. The work of making real property
  550  suitable as the site of an improvement includes, shall include
  551  but is not shall not be limited to, the grading, leveling,
  552  excavating, and filling of land, including the furnishing of
  553  fill soil; the grading and paving of streets, curbs, and
  554  sidewalks; the construction of ditches and other area drainage
  555  facilities; the laying of pipes and conduits for water, gas,
  556  electric, sewage, and drainage purposes; and the construction of
  557  canals and shall also include the altering, repairing, and
  558  redoing of all these things. When the services or materials are
  559  placed on land dedicated to public use and are furnished under
  560  contract with the owner of the abutting land, the cost of the
  561  services and materials, if unpaid, may be the basis for a lien
  562  upon the abutting land. When the services or materials are
  563  placed upon land under contract with the owner of the land who
  564  subsequently dedicates parts of the land to public use, the
  565  person furnishing the services or materials placed upon the
  566  dedicated land is shall be entitled to a lien upon the land
  567  abutting the dedicated land for the unpaid cost of the services
  568  and materials placed upon the dedicated land, or in the case of
  569  improvements that serve or benefit real property that is divided
  570  by the improvements, to a lien upon each abutting part for the
  571  equitable part of the full amount due and owing. If the part of
  572  the cost to be borne by each parcel of the land subject to the
  573  same lien is not specified in the contract, it shall be prorated
  574  equitably among the parcels served or benefited. A No lien under
  575  this section may not shall be acquired until a claim of lien is
  576  recorded. A No notice of commencement is not required shall be
  577  filed for liens under this section. No lienor shall be required
  578  to serve a notice to owner for liens under this section.
  579         (2)If a lienor under this section who is not in privity
  580  with the owner serves a notice on the owner in accordance with
  581  the provisions of s. 713.06(2), payment of lienors by the owner
  582  under this section shall be governed by s. 713.06(3)(c), (d),
  583  (e), (f), (g), (h), and (4).
  584         (2)(3) The owner may shall not pay any money on account of
  585  a direct contract before actual furnishing of labor and services
  586  or materials for subdivision improvements. Any payment not
  587  complying with such requirement does shall not qualify as a
  588  proper payment under this chapter.
  589         (3)(4) The owner shall make final payment on account of a
  590  direct contract only after the lienor contractor complies with
  591  s. 713.06(1)(d) s. 713.06(3)(d). Any payment not complying with
  592  such requirement does shall not qualify as a proper payment
  593  under this chapter.
  594         Section 10. Section 713.05, Florida Statutes, is amended to
  595  read:
  596         713.05 Liens of persons in privity.—A lienor with a direct
  597  contract and who is therefore materialman or laborer, either of
  598  whom is in privity with the owner, or a contractor who complies
  599  with the provisions of this part shall, subject to the
  600  limitations thereof, have a lien on the real property improved
  601  for any money that is owed to him or her for labor, services,
  602  materials, or other items required by, or furnished in
  603  accordance with, the direct contract and for unpaid finance
  604  charges due under the direct lienor’s contract, if any. A lienor
  605  materialman or laborer, in privity with the owner, or a
  606  contractor shall also have a lien on the owner’s real property
  607  for any money that is owed to him or her for labor, services, or
  608  materials furnished to improve public property if the
  609  improvements to the public property are a condition of the
  610  permit to improve the owner’s real property. A No lien under
  611  this section may not shall be acquired until a claim of lien is
  612  recorded. A lienor who is, as a subcontractor, sub
  613  subcontractor, laborer, or materialman not in privity with the
  614  owner who, commences to furnish labor, services, or materials
  615  material to an improvement and who thereafter becomes in privity
  616  with the owner has shall have a lien for any money that is owed
  617  to him or her for the labor, services, or materials furnished
  618  after he or she becomes in privity with the owner. A lienor may
  619  record one claim of lien to cover both his or her work done in
  620  privity with the owner and not in privity with the owner. No
  621  lienor under this section shall be required to serve a notice to
  622  owner as provided in s. 713.06(2). A lienor, except a laborer or
  623  materialman, who is in privity with the owner and claims a lien
  624  under this section shall furnish the lienor’s contractor’s
  625  affidavit required in s. 713.06(1)(d) s. 713.06(3)(d). A
  626  contractor may claim a lien for any labor, services, or
  627  materials furnished by another lienor for which he or she is
  628  obligated to pay the lienor, regardless of the right of the
  629  lienor to claim a lien; but, if the lienor claims a valid lien,
  630  the contractor shall not recover the amount of the lien
  631  recovered by the lienor, and the amount of the contractor’s
  632  claim of lien may be reduced accordingly by court order. No
  633  person shall have a lien under this section except those lienors
  634  specified in it, as their designations are defined in s. 713.01.
  635         Section 11. Section 713.07, Florida Statutes, is amended to
  636  read:
  637         713.07 Priority of liens.—
  638         (1) Liens under ss. 713.03 and 713.04 shall attach at the
  639  time of recordation of the claim of lien and shall take priority
  640  as of that time.
  641         (2) Liens under s. 713.05 ss. 713.05 and 713.06 shall
  642  attach and take priority as of the time of recordation of the
  643  notice of commencement, but in the event a notice of
  644  commencement is not filed, then such liens shall attach and take
  645  priority as of the time the claim of lien is recorded.
  646         (3) All such liens shall have priority over any conveyance,
  647  encumbrance, or demand not recorded against the real property
  648  before prior to the time such lien attached as provided herein,
  649  but any conveyance, encumbrance, or demand recorded before prior
  650  to the time such lien attaches and any proceeds thereof,
  651  regardless of when disbursed, shall have priority over such
  652  liens.
  653         (4) If construction ceases or the direct contract is
  654  terminated before completion and the owner desires to recommence
  655  construction, he or she may pay all lienors in full or pro rata
  656  in accordance with s. 713.06(2) before s. 713.06(4) prior to
  657  recommencement, in which event all liens for the recommenced
  658  construction shall take priority from such recommencement; or
  659  the owner may record an affidavit in the clerk’s office stating
  660  his or her intention to recommence construction and that all
  661  lienors giving notice have been paid in full except those listed
  662  therein as not having been so paid, in which event 30 days after
  663  such recording, the rights of any person acquiring any interest,
  664  lien, or encumbrance on said property or of any lienor on the
  665  recommenced construction is shall be paramount to any lien on
  666  the prior construction unless such prior lienor records a claim
  667  of lien within said 30-day period. A copy of said affidavit
  668  shall be served on each lienor named therein. Before
  669  recommencing, the owner shall record and post a notice of
  670  commencement for the recommenced construction, as provided in s.
  671  713.13.
  672         Section 12. Subsections (1) and (3) of section 713.08,
  673  Florida Statutes, are amended to read:
  674         713.08 Claim of lien.—
  675         (1) For the purpose of perfecting her or his lien under
  676  this part, every lienor, including laborers and persons in
  677  privity, shall record a claim of lien which shall state:
  678         (a) The name of the lienor and the address where notices or
  679  process under this part may be served on the lienor.
  680         (b)The name of the person with whom the lienor contracted
  681  or by whom she or he was employed.
  682         (b)(c) The labor, services, or materials furnished and the
  683  contract price or value thereof. Materials specially fabricated
  684  at a place other than the site of the improvement for
  685  incorporation in the improvement but not so incorporated and the
  686  contract price or value thereof shall be separately stated in
  687  the claim of lien.
  688         (c)(d) A description of the real property sufficient for
  689  identification.
  690         (d)(e) The name of the owner.
  691         (e)(f) The time when the first and the last item of labor,
  692  services, or service or materials was furnished.
  693         (f)(g) The amount unpaid the lienor for such labor, or
  694  services, or materials and for unpaid finance charges due under
  695  the lienor’s direct contract.
  696         (h)If the lien is claimed by a person not in privity with
  697  the owner, the date and method of service of the notice to
  698  owner. If the lien is claimed by a person not in privity with
  699  the contractor or subcontractor, the date and method of service
  700  of the copy of the notice on the contractor or subcontractor.
  701         (3) The claim of lien shall be sufficient if it is in
  702  substantially the following form, and includes the following
  703  warning:
  704  
  705                              WARNING!                             
  706         THIS LEGAL DOCUMENT REFLECTS THAT A CONSTRUCTION LIEN
  707         HAS BEEN PLACED ON THE REAL PROPERTY LISTED HEREIN.
  708         UNLESS THE OWNER OF SUCH PROPERTY TAKES ACTION TO
  709         SHORTEN THE TIME PERIOD, THIS LIEN MAY REMAIN VALID
  710         FOR ONE YEAR FROM THE DATE OF RECORDING, AND SHALL
  711         EXPIRE AND BECOME NULL AND VOID THEREAFTER UNLESS
  712         LEGAL PROCEEDINGS HAVE BEEN COMMENCED TO FORECLOSE OR
  713         TO DISCHARGE THIS LIEN.
  714  
  715                            CLAIM OF LIEN                          
  716  State of ....
  717  County of ....
  718         Before me, the undersigned notary public, personally
  719  appeared ...., who was duly sworn and says that she or he is
  720  (the lienor herein) (the agent of the lienor herein ....), whose
  721  address is ....; and that in accordance with a contract with
  722  ...., lienor furnished labor, services, or materials consisting
  723  of .... on the following described real property in .... County,
  724  Florida:
  725  
  726                (Legal description of real property)               
  727  
  728  owned by .... of a total value of $...., of which there remains
  729  unpaid $...., and furnished the first of the items on ....,
  730  ...(year)..., and the last of the items on ...., ...(year)...;
  731  and (if the lien is claimed by one not in privity with the
  732  owner) that the lienor served her or his notice to owner on
  733  ...., ...(year)..., by ....; and (if required) that the lienor
  734  served copies of the notice on the contractor on ....,
  735  ...(year)..., by .... and on the subcontractor, ...., on ....,
  736  ...(year)..., by .....
  737  ...(Signature)...
  738  
  739         Sworn to (or affirmed) and subscribed before me this ....
  740  day of ...., ...(year)..., by ...(name of person making
  741  statement)....
  742  ...(Signature of Notary Public - State of Florida)...
  743  ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
  744  
  745         Personally Known .... OR Produced Identification ....
  746  
  747         Type of Identification Produced............
  748  
  749  However, the negligent inclusion or omission of any information
  750  in the claim of lien which has not prejudiced the owner does not
  751  constitute a default that operates to defeat an otherwise valid
  752  lien.
  753         Section 13. Paragraph (a) of subsection (2) and subsection
  754  (3) of section 713.10, Florida Statutes, are amended to read:
  755         713.10 Extent of liens.—
  756         (2)(a) When the lease expressly provides that the interest
  757  of the lessor shall not be subject to liens for improvements
  758  made by the lessee, the lessee shall notify the lienor
  759  contractor making any such improvements of such provision or
  760  provisions in the lease, and the knowing or willful failure of
  761  the lessee to provide such notice to the lienor contractor shall
  762  render the contract between the lessee and the lienor contractor
  763  voidable at the option of the lienor contractor.
  764         (3) Any contractor or lienor under contract to furnish
  765  labor, services, or materials for improvements being made by a
  766  lessee may serve written demand on the lessor for a copy of the
  767  provision in the lease prohibiting liability for improvements
  768  made by the lessee, which copy shall be verified under s.
  769  92.525. The demand must identify the lessee and the premises
  770  being improved and must be in a document that is separate from
  771  the notice to the owner as provided in s. 713.06(2). The
  772  interest of any lessor who does not serve a verified copy of the
  773  lease provision within 30 days after demand, or who serves a
  774  false or fraudulent copy, is subject to a lien under this part
  775  by the contractor or lienor who made the demand if the
  776  contractor or lienor has otherwise complied with this part and
  777  did not have actual notice that the interest of the lessor was
  778  not subject to a lien for improvements made by the lessee. The
  779  written demand must include a warning in conspicuous type in
  780  substantially the following form:
  781  
  782                               WARNING                             
  783  
  784         YOUR FAILURE TO SERVE THE REQUESTED VERIFIED COPY
  785         WITHIN 30 DAYS OR THE SERVICE OF A FALSE COPY MAY
  786         RESULT IN YOUR PROPERTY BEING SUBJECT TO THE CLAIM OF
  787         LIEN OF THE PERSON REQUESTING THE VERIFIED COPY.
  788         Section 14. Section 713.12, Florida Statutes, is amended to
  789  read:
  790         713.12 Liens for improving real property under contract
  791  with husband or wife on property of the other or of both.—When
  792  the direct contract for improving real property is made with a
  793  husband or wife who is not separated and living apart from his
  794  or her spouse and the property is owned by the other or by both,
  795  the spouse who contracts is considered shall be deemed to be the
  796  agent of the other to the extent of subjecting the right, title,
  797  or interest of the other in said property to liens under this
  798  part unless such other gives shall, within 10 days after
  799  learning of such contract, give the lienor, contractor and
  800  records record in the clerk’s office, notice of his or her
  801  objection thereto.
  802         Section 15. Subsection (1) and paragraph (b) of subsection
  803  (5) of section 713.13, Florida Statutes, are amended to read:
  804         713.13 Notice of commencement.—
  805         (1)(a) Except for an improvement that is exempt under s.
  806  713.02(4) pursuant to s. 713.02(5), an owner or the owner’s
  807  authorized agent before actually commencing to improve any real
  808  property, or recommencing completion of any improvement after
  809  default or abandonment, whether or not a project has a payment
  810  bond complying with s. 713.23, shall record a notice of
  811  commencement in the clerk’s office and forthwith post either a
  812  certified copy thereof or a notarized statement that the notice
  813  of commencement has been filed for recording along with a copy
  814  thereof. The notice of commencement shall contain the following
  815  information:
  816         1. A description sufficient for identification of the real
  817  property to be improved. The description should include the
  818  legal description of the property and also should include the
  819  street address and tax folio number of the property, if
  820  available, or, if a there is no street address is not available,
  821  such additional information as will describe the physical
  822  location of the real property to be improved.
  823         2. A general description of the improvement.
  824         3. The name and address of the owner, the owner’s interest
  825  in the site of the improvement, and the name and address of the
  826  fee simple titleholder, if other than such owner. A lessee who
  827  contracts for the improvements is an owner as defined in s.
  828  713.01 under s. 713.01(23) and must be listed as the owner
  829  together with a statement that the ownership interest is a
  830  leasehold interest.
  831         4. The name and address of any potential lienors the
  832  contractor.
  833         5.The name and address of the surety on the payment bond
  834  under s. 713.23, if any, and the amount of such bond.
  835         5.6. The name and address of any person making a loan for
  836  the construction of the improvements.
  837         6.7. The name and address within the state of a person
  838  other than himself or herself who may be designated by the owner
  839  as the person upon whom notices or other documents may be served
  840  under this part.; and Service upon the person so designated
  841  constitutes service upon the owner.
  842         (b)The owner, at his or her option, may designate a person
  843  in addition to himself or herself to receive a copy of the
  844  lienor’s notice as provided in s. 713.06(2)(b), and if he or she
  845  does so, the name and address of such person must be included in
  846  the notice of commencement.
  847         (b)(c) If the contract between the owner and a lienor
  848  contractor named in the notice of commencement expresses a
  849  period of time for completion for the construction of the
  850  improvement that is greater than 1 year, the notice of
  851  commencement must state that it is effective for a period of 1
  852  year plus any such additional period of time. Any payments made
  853  by the owner after the expiration of the notice of commencement
  854  are considered improper payments.
  855         (c)(d) A notice of commencement must be in substantially
  856  the following form:
  857  
  858  Permit No.....                                 Tax Folio No.....
  859                       NOTICE OF COMMENCEMENT                      
  860  State of....
  861  County of....
  862  
  863  The undersigned hereby gives notice that improvement will be
  864  made to certain real property, and in accordance with Chapter
  865  713, Florida Statutes, the following information is provided in
  866  this Notice of Commencement.
  867         1. Description of property: ...(legal description of the
  868  property, and street address of the property, if available)....
  869         2. General description of improvement:.....
  870         3. Owner information or Lessee information if the Lessee
  871  contracted for the improvement:
  872         a. Name and address:.....
  873         b. Interest in property:.....
  874         c. Name and address of fee simple titleholder (if different
  875  from Owner listed above):.....
  876         4.a. Lienors Contractor: ...(name and address)....
  877         b. Lienors’ Contractor’s phone number:.....
  878         5. Surety (if applicable, a copy of the payment bond is
  879  attached):
  880         a. Name and address:.....
  881         b. Phone number:.....
  882         c. Amount of bond: $.....
  883         5.a.6.a. Lender: ...(name and address)....
  884         b. Lender’s phone number:.....
  885         6.7. Persons within the State of Florida designated by
  886  Owner upon whom notices or other documents may be served as
  887  provided by Section 713.13(1)(a)6. 713.13(1)(a)7., Florida
  888  Statutes:
  889         a. Names and addresses of designated persons Name and
  890  address:.....
  891         b. Phone numbers of designated persons:.....
  892         8.a. In addition to himself or herself, Owner designates
  893  ............ of ............ to receive a copy of the Lienor’s
  894  Notice as provided in Section 713.13(1)(b), Florida Statutes.
  895         b. Phone number of person or entity designated by
  896  owner:.....
  897         7.9. Expiration date of notice of commencement (the
  898  expiration date will be 1 year after from the date of recording,
  899  unless a different date is specified).....
  900  
  901  WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE
  902  EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER
  903  PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA
  904  STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS
  905  TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND
  906  POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU
  907  INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN
  908  ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF
  909  COMMENCEMENT.
  910  
  911  ...(Signature of Owner or Lessee, or Owner’s or Lessee’s
  912  Authorized Officer/Director/Partner/Manager)...
  913  
  914  ...(Signatory’s Title/Office)...
  915  
  916  The foregoing instrument was acknowledged before me this ....
  917  day of ...., ...(year)..., by ...(name of person)... as ...(type
  918  of authority, ... e.g. officer, trustee, attorney in fact)...
  919  for ...(name of party on behalf of whom instrument was
  920  executed)....
  921  
  922  ...(Signature of Notary Public - State of Florida)...
  923  
  924  ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
  925  
  926         Personally Known .... OR Produced Identification ....
  927  
  928         Type of Identification Produced............
  929  
  930         (e)A copy of any payment bond must be attached at the time
  931  of recordation of the notice of commencement. The failure to
  932  attach a copy of the bond to the notice of commencement when the
  933  notice is recorded negates the exemption provided in s.
  934  713.02(6). However, if a payment bond under s. 713.23 exists but
  935  was not attached at the time of recordation of the notice of
  936  commencement, the bond may be used to transfer any recorded lien
  937  of a lienor except that of the contractor by the recordation and
  938  service of a notice of bond pursuant to s. 713.23(2). The notice
  939  requirements of s. 713.23 apply to any claim against the bond;
  940  however, the time limits for serving any required notices shall,
  941  at the option of the lienor, be calculated from the dates
  942  specified in s. 713.23 or the date the notice of bond is served
  943  on the lienor.
  944         (d)(f) The giving of a notice of commencement is effective
  945  upon the filing of the notice in the clerk’s office.
  946         (e)(g) The owner must sign the notice of commencement and
  947  no one else may be permitted to sign in his or her stead.
  948         (5)
  949         (b) The amended notice must identify the official records
  950  book and page where the original notice of commencement is
  951  recorded, and a copy of the amended notice must be served by the
  952  owner upon the contractor and each lienor who serves notice
  953  before or within 30 days after the date on which the amended
  954  notice is recorded.
  955         Section 16. Paragraph (f) of subsection (1) and subsections
  956  (2), (3), and (4) of section 713.132, Florida Statutes, are
  957  amended to read:
  958         713.132 Notice of termination.—
  959         (1) An owner may terminate the period of effectiveness of a
  960  notice of commencement by executing, swearing to, and recording
  961  a notice of termination that contains:
  962         (f) A statement that the owner has, before recording the
  963  notice of termination, served a copy of the notice of
  964  termination on the contractor and on each lienor who has a
  965  direct contract with the owner or who has served a notice to
  966  owner. The owner is not required to serve a copy of the notice
  967  of termination on any lienor who has executed a waiver and
  968  release of lien upon final payment in accordance with s. 713.20.
  969         (2) An owner has the right to rely on a lienor’s
  970  contractor’s affidavit given under s. 713.06(1)(d) s.
  971  713.06(3)(d), except with respect to lienors who have already
  972  given notice, in connection with the execution, swearing to, and
  973  recording of a notice of termination. However, the notice of
  974  termination must be accompanied by the contractor’s affidavit.
  975         (3) An owner may not record a notice of termination except
  976  after completion of construction, or after construction ceases
  977  before completion and all lienors have been paid in full or pro
  978  rata in accordance with s. 713.06(2) s. 713.06(4). If an owner
  979  or a contractor, by fraud or collusion, knowingly makes any
  980  fraudulent statement or affidavit in a notice of termination or
  981  any accompanying affidavit, the owner and the contractor, or
  982  either of them, as the case may be, is liable to any lienor who
  983  suffers damages as a result of the filing of the fraudulent
  984  notice of termination,; and any such lienor has a right of
  985  action for damages occasioned thereby.
  986         (4) A notice of termination is effective to terminate the
  987  notice of commencement at the later of 30 days after recording
  988  of the notice of termination or the date stated in the notice of
  989  termination as the date on which the notice of commencement is
  990  terminated, if the notice of termination has been served
  991  pursuant to paragraph (1)(f) on the contractor and on each
  992  lienor who has a direct contract with the owner or who has
  993  served a notice to owner.
  994         Section 17. Paragraphs (b) and (d) of subsection (1) and
  995  paragraph (a) of subsection (6) of section 713.135, Florida
  996  Statutes, are amended to read:
  997         713.135 Notice of commencement and applicability of lien.—
  998         (1) When any person applies for a building permit, the
  999  authority issuing such permit shall:
 1000         (b) Provide the applicant and the owner of the real
 1001  property upon which improvements are to be constructed with a
 1002  printed statement stating that the right, title, and interest of
 1003  the person who has contracted for the improvement may be subject
 1004  to attachment under the Construction Lien Law. The Department of
 1005  Business and Professional Regulation shall furnish, for
 1006  distribution, the statement described in this paragraph, and the
 1007  statement must be a summary of the Construction Lien Law and
 1008  must include an explanation of the provisions of the
 1009  Construction Lien Law relating to the recording, and the posting
 1010  of copies, of notices of commencement and a statement
 1011  encouraging the owner to record a notice of commencement and
 1012  post a copy of the notice of commencement in accordance with s.
 1013  713.13. The statement must also contain an explanation of the
 1014  owner’s rights if a lienor fails to furnish the owner with a
 1015  notice as provided in s. 713.06(2) and an explanation of the
 1016  owner’s rights as provided in s. 713.22. The authority that
 1017  issues the building permit must obtain from the Department of
 1018  Business and Professional Regulation the statement required by
 1019  this paragraph and must mail, deliver by electronic mail or
 1020  other electronic format or facsimile, or personally deliver that
 1021  statement to the owner or, in a case in which the owner is
 1022  required to personally appear to obtain the permit, provide that
 1023  statement to any owner making improvements to real property
 1024  consisting of a single or multiple family dwelling up to and
 1025  including four units. However, the failure by the authorities to
 1026  provide the summary does not subject the issuing authority to
 1027  liability.
 1028         (d) Furnish to the applicant two or more copies of a form
 1029  of notice of commencement conforming with s. 713.13. If the
 1030  direct contract is greater than $2,500, the applicant shall file
 1031  with the issuing authority before prior to the first inspection
 1032  either a certified copy of the recorded notice of commencement
 1033  or a notarized statement that the notice of commencement has
 1034  been filed for recording, along with a copy thereof. In the
 1035  absence of the filing of a certified copy of the recorded notice
 1036  of commencement, the issuing authority or a private provider
 1037  performing inspection services may not perform or approve
 1038  subsequent inspections until the applicant files by mail,
 1039  facsimile, hand delivery, or any other means such certified copy
 1040  with the issuing authority. The certified copy of the notice of
 1041  commencement must contain the name and address of the owner, the
 1042  name and address of any lienors the contractor, and the location
 1043  or address of the property being improved. The issuing authority
 1044  shall verify that the name and address of the owner, the name of
 1045  any lienors the contractor, and the location or address of the
 1046  property being improved which is contained in the certified copy
 1047  of the notice of commencement is consistent with the information
 1048  in the building permit application. The issuing authority shall
 1049  provide the recording information on the certified copy of the
 1050  recorded notice of commencement to any person upon request. This
 1051  subsection does not require the recording of a notice of
 1052  commencement before prior to the issuance of a building permit.
 1053  If a local government requires a separate permit or inspection
 1054  for installation of temporary electrical service or other
 1055  temporary utility service, land clearing, or other preliminary
 1056  site work, such permits may be issued and such inspections may
 1057  be conducted without providing the issuing authority with a
 1058  certified copy of a recorded notice of commencement or a
 1059  notarized statement regarding a recorded notice of commencement.
 1060  This subsection does not apply to a direct contract to repair or
 1061  replace an existing heating or air-conditioning system in an
 1062  amount less than $7,500.
 1063         (6)(a) In addition to any other information required by the
 1064  authority issuing the permit, the building permit application
 1065  must be in substantially the following form:
 1066  
 1067  Tax Folio No.........
 1068                     BUILDING PERMIT APPLICATION                   
 1069  
 1070  Owner’s Name....................................................
 1071  Owner’s Address.................................................
 1072  Fee Simple Titleholder’s Name (If other than owner).............
 1073  Fee Simple Titleholder’s Address (If other than owner)..........
 1074  City............................................................
 1075  State............ Zip............
 1076  Lienors Names Contractor’s Name................................
 1077  Lienors Addresses Contractor’s Address.........................
 1078  City............................................................
 1079  State............ Zip............
 1080  Job Name........................................................
 1081  Job Address.....................................................
 1082  City................                          County............
 1083  Legal Description...............................................
 1084  Bonding Company.................................................
 1085  Bonding Company Address.........................................
 1086  City................ State............
 1087  Architect/Engineer’s Name.......................................
 1088  Architect/Engineer’s Address....................................
 1089  Mortgage Lender’s Name..........................................
 1090  Mortgage Lender’s Address.......................................
 1091  
 1092         Application is hereby made to obtain a permit to do the
 1093  work and installations as indicated. I certify that no work or
 1094  installation has not commenced before prior to the issuance of a
 1095  permit and that all work will be performed to meet the standards
 1096  of all laws regulating construction in this jurisdiction. I
 1097  understand that a separate permit must be secured for ELECTRICAL
 1098  WORK, PLUMBING, SIGNS, WELLS, POOLS, FURNACES, BOILERS, HEATERS,
 1099  TANKS, and AIR CONDITIONERS, etc.
 1100  
 1101  OWNER’S AFFIDAVIT: I certify that all the foregoing information
 1102  is accurate and that all work will be done in compliance with
 1103  all applicable laws regulating construction and zoning.
 1104  
 1105         WARNING TO OWNER: YOUR FAILURE TO RECORD A NOTICE OF
 1106         COMMENCEMENT MAY RESULT IN YOUR PAYING TWICE FOR
 1107         IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF
 1108         COMMENCEMENT MUST BE RECORDED AND POSTED ON THE JOB
 1109         SITE BEFORE THE FIRST INSPECTION.
 1110  
 1111         IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR
 1112         LENDER OR AN ATTORNEY BEFORE COMMENCING WORK OR
 1113         RECORDING YOUR NOTICE OF COMMENCEMENT.
 1114  
 1115  ...(Signature of Owner or Agent)...
 1116  
 1117  ...(including any lienors contractor)...
 1118  
 1119  STATE OF FLORIDA
 1120  COUNTY OF ....
 1121  
 1122         Sworn to (or affirmed) and subscribed before me this ....
 1123  day of ...., ...(year)..., by ...(name of person making
 1124  statement)....
 1125  
 1126  ...(Signature of Notary Public - State of Florida)...
 1127  ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
 1128  
 1129         Personally Known .... OR Produced Identification ....
 1130  
 1131         Type of Identification Produced............
 1132  ...(Signature of any lienors Contractor)...
 1133  
 1134  STATE OF FLORIDA
 1135  COUNTY OF ....
 1136  
 1137         Sworn to (or affirmed) and subscribed before me this ....
 1138  day of ...., ...(year)..., by ...(name of person making
 1139  statement)....
 1140  ...(Signature of Notary Public - State of Florida)...
 1141  ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
 1142  
 1143         Personally Known .... OR Produced Identification ....
 1144  
 1145         Type of Identification Produced............
 1146  
 1147                 (Certificate of Competency Holder)                
 1148  
 1149  Lienor’s Contractor’s State Certification or Registration
 1150  No.....
 1151  
 1152  Lienor’s Contractor’s Certificate of Competency No.........
 1153  
 1154         APPLICATION APPROVED BY
 1155  ................Permit Officer
 1156         Section 18. Section 713.16, Florida Statutes, is amended to
 1157  read:
 1158         713.16 Demand for copy of direct contract and statement
 1159  statements of account; form.—
 1160         (1) A copy of the direct contract of a lienor or owner and
 1161  a statement of the amount due or to become due if fixed or
 1162  ascertainable thereon must be furnished by any party thereto,
 1163  upon written demand of an owner or a lienor contracting with or
 1164  employed by the other party to such direct contract. If the
 1165  owner or lienor refuses or neglects to furnish such copy of the
 1166  direct contract or such statement, or willfully and falsely
 1167  states the amount due or to become due if fixed or ascertainable
 1168  under such direct contract, any person who suffers any detriment
 1169  thereby has a cause of action against the person refusing or
 1170  neglecting to furnish the same or willfully and falsely stating
 1171  the amount due or to become due for his or her damages sustained
 1172  thereby. The information contained in such copy or statement
 1173  furnished pursuant to such written demand is binding upon the
 1174  owner or lienor furnishing it unless actual notice of any
 1175  modification is given to the person demanding the copy or
 1176  statement before such person acts in good faith in reliance on
 1177  it. The person demanding such documents must pay for the
 1178  reproduction thereof,; and, if such person fails or refuses to
 1179  do so, he or she is entitled only to inspect such documents at
 1180  reasonable times and places.
 1181         (2) The owner may serve in writing a demand of any lienor
 1182  for a written statement under oath of his or her account showing
 1183  the nature of the labor or services performed and to be
 1184  performed, if any, the materials furnished, the materials to be
 1185  furnished, if known, the amount paid on account to date, the
 1186  amount due, and the amount to become due, if known, as of the
 1187  date of the statement by the lienor. Any such demand to a lienor
 1188  must be served on the lienor at the address and to the attention
 1189  of any person who is designated to receive the demand in the
 1190  notice to owner served by such lienor and must include a
 1191  description of the property and the names of the owner, the
 1192  contractor, and the lienor’s customer, as set forth in the
 1193  lienor’s notice to owner. The failure or refusal to furnish the
 1194  statement does not deprive the lienor of his or her lien if the
 1195  demand is not served at the address of the lienor or directed to
 1196  the attention of the person designated to receive the demand in
 1197  the notice to owner. The failure or refusal to furnish the
 1198  statement under oath within 30 days after the demand, or the
 1199  furnishing of a false or fraudulent statement, deprives the
 1200  person so failing or refusing to furnish such statement of his
 1201  or her lien. If the owner serves more than one demand for
 1202  statement of account on a lienor and none of the information
 1203  regarding the account has changed since the lienor’s last
 1204  response to a demand, the failure or refusal to furnish such
 1205  statement does not deprive the lienor of his or her lien. The
 1206  negligent inclusion or omission of any information deprives the
 1207  person of his or her lien to the extent the owner can
 1208  demonstrate prejudice from such act or omission by the lienor.
 1209  The failure to furnish a response to a demand for statement of
 1210  account does not affect the validity of any claim of lien being
 1211  enforced through a foreclosure case filed before the date on
 1212  which the demand for statement is received by the lienor.
 1213         (3) A request for sworn statement of account must be in
 1214  substantially the following form:
 1215  
 1216               REQUEST FOR SWORN STATEMENT OF ACCOUNT              
 1217  
 1218  WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT, SIGNED
 1219  UNDER OATH, WITHIN 30 DAYS OR THE FURNISHING OF A FALSE
 1220  STATEMENT WILL RESULT IN THE LOSS OF YOUR LIEN.
 1221  
 1222  To: ...(Lienor’s name and address)...
 1223  
 1224  The undersigned hereby demands a written statement under oath of
 1225  his or her account showing the nature of the labor or services
 1226  performed and to be performed, if any, the materials furnished,
 1227  the materials to be furnished, if known, the amount paid on
 1228  account to date, the amount due, and the amount to become due,
 1229  if known, as of the date on which of the statement for the
 1230  improvement of real property identified as ...(property
 1231  description)....
 1232  
 1233         ...(name of contractor)...
 1234  
 1235         ...(name of the lienor’s customer, as set forth in the
 1236  lienor’s Notice to Owner, if such notice has been served)...
 1237  
 1238  ...(signature and address of owner)...
 1239  ...(date of request for sworn statement of account)...
 1240  
 1241         (4)When a contractor has furnished a payment bond pursuant
 1242  to s. 713.23, he or she may, when an owner makes any payment to
 1243  the contractor or directly to a lienor, serve a written demand
 1244  on any other lienor for a written statement under oath of his or
 1245  her account showing the nature of the labor or services
 1246  performed and to be performed, if any, the materials furnished,
 1247  the materials to be furnished, if known, the amount paid on
 1248  account to date, the amount due, and the amount to become due,
 1249  if known, as of the date of the statement by the lienor. Any
 1250  such demand to a lienor must be served on the lienor at the
 1251  address and to the attention of any person who is designated to
 1252  receive the demand in the notice to contractor served by such
 1253  lienor. The demand must include a description of the property
 1254  and the names of the owner, the contractor, and the lienor’s
 1255  customer, as set forth in the lienor’s notice to contractor. The
 1256  failure or refusal to furnish the statement does not deprive the
 1257  lienor of his or her rights under the bond if the demand is not
 1258  served at the address of the lienor or directed to the attention
 1259  of the person designated to receive the demand in the notice to
 1260  contractor. The failure to furnish the statement within 30 days
 1261  after the demand, or the furnishing of a false or fraudulent
 1262  statement, deprives the person who fails to furnish the
 1263  statement, or who furnishes the false or fraudulent statement,
 1264  of his or her rights under the bond. If the contractor serves
 1265  more than one demand for statement of account on a lienor and
 1266  none of the information regarding the account has changed since
 1267  the lienor’s last response to a demand, the failure or refusal
 1268  to furnish such statement does not deprive the lienor of his or
 1269  her rights under the bond. The negligent inclusion or omission
 1270  of any information deprives the person of his or her rights
 1271  under the bond to the extent the contractor can demonstrate
 1272  prejudice from such act or omission by the lienor. The failure
 1273  to furnish a response to a demand for statement of account does
 1274  not affect the validity of any claim on the bond being enforced
 1275  in a lawsuit filed prior to the date the demand for statement of
 1276  account is received by the lienor.
 1277         (4)(a)(5)(a) Any lienor who is perfecting a claim of lien
 1278  may serve with the claim of lien or thereafter a written demand
 1279  on the owner for a written statement under oath showing:
 1280         1. The amount of the direct contract under which the lien
 1281  was recorded;
 1282         2. The dates and amounts paid or to be paid by or on behalf
 1283  of the owner for all improvements described in the direct
 1284  contract;
 1285         3. The reasonable estimated costs of completing the direct
 1286  contract under which the lien was claimed pursuant to the scope
 1287  of the direct contract; and
 1288         4. If known, the actual cost of completion.
 1289         (b) Any owner who does not provide the statement within 30
 1290  days after demand, or who provides a false or fraudulent
 1291  statement, is not a prevailing party for purposes of an award of
 1292  attorney fees under s. 713.29. The written demand must include
 1293  the following warning in conspicuous type in substantially the
 1294  following form:
 1295  
 1296  WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT WITHIN
 1297  30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL RESULT IN
 1298  THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY ACTION TO
 1299  ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING THIS
 1300  STATEMENT.
 1301         (5)(6) Any written demand served on the owner must include
 1302  a description of the property and the name names of the
 1303  contractor and the lienor’s customer, as set forth in the
 1304  lienor’s notice to owner.
 1305         (6)(7) For purposes of this section, the term “information”
 1306  means the nature and quantity of the labor, services, and
 1307  materials furnished or to be furnished by a lienor and the
 1308  amount paid, the amount due, and the amount to become due on the
 1309  lienor’s account.
 1310         Section 19. Subsection (3) of section 713.165, Florida
 1311  Statutes, is amended to read:
 1312         713.165 Request for list of subcontractors and suppliers.—
 1313         (3)A list furnished under this section shall not
 1314  constitute a notice to owner.
 1315         Section 20. Subsection (2) of section 713.18, Florida
 1316  Statutes, is amended to read:
 1317         713.18 Manner of serving notices and other instruments.—
 1318         (2) Notwithstanding subsection (1), service of a notice to
 1319  owner or a preliminary notice to contractor under s. 255.05 or,
 1320  s. 337.18, or s. 713.23 is effective as of the date of mailing
 1321  if:
 1322         (a) The notice is mailed by registered, Global Express
 1323  Guaranteed, or certified mail, with postage prepaid, to the
 1324  person to be served at any of the addresses set forth in
 1325  subsection (3);
 1326         (b) The notice is mailed within 40 days after the date on
 1327  which the lienor first furnishes labor, services, or materials;
 1328  and
 1329         (c)1. The person who served the notice maintains a
 1330  registered or certified mail log that shows the registered or
 1331  certified mail number issued by the United States Postal
 1332  Service, the name and address of the person served, and the date
 1333  stamp of the United States Postal Service confirming the date of
 1334  mailing; or
 1335         2. The person who served the notice maintains electronic
 1336  tracking records generated by the United States Postal Service
 1337  containing the postal tracking number, the name and address of
 1338  the person served, and verification of the date of receipt by
 1339  the United States Postal Service.
 1340         Section 21. Subsections (1) and (7) of section 713.20,
 1341  Florida Statutes, are amended to read:
 1342         713.20 Waiver or release of liens.—
 1343         (1) The acceptance by the lienor of an unsecured note for
 1344  all or any part of the amount of his or her demand does shall
 1345  not constitute a waiver of his or her lien therefor unless
 1346  expressly so agreed in writing, nor shall it in any way affect
 1347  the period for filing the notice under s. 713.06(2), or the
 1348  claim of lien under s. 713.08.
 1349         (7) A lienor who executes a lien waiver and release in
 1350  exchange for a check may condition the waiver and release upon
 1351  on payment of the check. However, in the absence of a payment
 1352  bond protecting the owner, the owner may withhold from any
 1353  payment to the contractor the amount of any such unpaid check
 1354  until any such condition is satisfied.
 1355         Section 22. Subsections (1), (3), and (4) of section
 1356  713.24, Florida Statutes, are amended to read:
 1357         713.24 Transfer of liens to security.—
 1358         (1) Any lien claimed under this part may be transferred, by
 1359  any person having an interest in the real property upon which
 1360  the lien is imposed or the direct contract under which the lien
 1361  is claimed, from such real property to other security by either:
 1362         (a) Depositing in the clerk’s office a sum of money;, or
 1363         (b) Filing in the clerk’s office a bond executed as surety
 1364  by a surety insurer licensed to do business in this state,
 1365  
 1366  either to be in an amount equal to the amount demanded in such
 1367  claim of lien, plus interest thereon at the legal rate for 3
 1368  years, plus $1,000 or 25 percent of the amount demanded in the
 1369  claim of lien, whichever is greater, to apply on any attorney
 1370  attorney’s fees and court costs that may be taxed in any
 1371  proceeding to enforce said lien. Such deposit or bond shall be
 1372  conditioned to pay any judgment or decree which may be rendered
 1373  for the satisfaction of the lien for which such claim of lien
 1374  was recorded. Upon making such deposit or filing such bond, the
 1375  clerk shall make and record a certificate showing the transfer
 1376  of the lien from the real property to the security and shall
 1377  mail a copy thereof by registered or certified mail to the
 1378  lienor named in the claim of lien so transferred, at the address
 1379  stated therein. Upon filing the certificate of transfer, the
 1380  real property shall thereupon be released from the lien claimed,
 1381  and such lien shall be transferred to said security. In the
 1382  absence of allegations of privity between the lienor and the
 1383  owner, and Subject to any order of the court increasing the
 1384  amount required for the lien transfer deposit or bond, no other
 1385  judgment or decree to pay money may be entered by the court
 1386  against the owner. The clerk is shall be entitled to a service
 1387  charge for making and serving the certificate, in the amount of
 1388  up to $20, from which the clerk shall remit $5 to the Department
 1389  of Revenue for deposit into the General Revenue Fund. If the
 1390  transaction involves the transfer of multiple liens, an
 1391  additional charge of up to $10 for each additional lien shall be
 1392  charged, from which the clerk shall remit $2.50 to the
 1393  Department of Revenue for deposit into the General Revenue Fund.
 1394  For recording the certificate and approving the bond, the clerk
 1395  shall receive her or his usual statutory service charges as
 1396  prescribed in s. 28.24. Any number of liens may be transferred
 1397  to one such security.
 1398         (3) Any party having an interest in such security or the
 1399  property from which the lien was transferred may at any time,
 1400  and any number of times, file a complaint in chancery in the
 1401  circuit court of the county where such security is deposited, or
 1402  file a motion in a pending action to enforce a lien, for an
 1403  order to require additional security, reduction of security,
 1404  change or substitution of sureties, payment of discharge
 1405  thereof, or any other matter affecting said security. If the
 1406  court finds that the amount of the deposit or bond in excess of
 1407  the amount claimed in the claim of lien is insufficient to pay
 1408  the lienor’s attorney attorney’s fees and court costs incurred
 1409  in the action to enforce the lien, the court must increase the
 1410  amount of the cash deposit or lien transfer bond. Nothing in
 1411  this section shall be construed to vest exclusive jurisdiction
 1412  in the circuit courts over transfer bond claims for nonpayment
 1413  of an amount within the monetary jurisdiction of the county
 1414  courts.
 1415         (4) If a proceeding to enforce a transferred lien is not
 1416  commenced within the time specified in s. 713.22 or if it
 1417  appears that the transferred lien has been satisfied of record,
 1418  the clerk shall return said security upon request of the person
 1419  depositing or filing the same, or the insurer. If a proceeding
 1420  to enforce a lien is commenced in a court of competent
 1421  jurisdiction within the time specified in s. 713.22 and, during
 1422  such proceeding, the lien is transferred pursuant to this
 1423  section or s. 713.13(1)(e), an action commenced within 1 year
 1424  after the transfer, unless otherwise shortened by operation of
 1425  law, in the same county or circuit court to recover against the
 1426  security shall be deemed to have been brought as of the date of
 1427  filing the action to enforce the lien, and the court shall have
 1428  jurisdiction over the action.
 1429         Section 23. Section 713.29, Florida Statutes, is amended to
 1430  read:
 1431         713.29 Attorney Attorney’s fees.—In any action brought to
 1432  enforce a lien or to enforce a claim against a bond under this
 1433  part, the prevailing party is entitled to recover a reasonable
 1434  fee for the services of her or his attorney for trial and appeal
 1435  or for arbitration, in an amount to be determined by the court,
 1436  which fee must be taxed as part of the prevailing party’s costs,
 1437  as allowed in equitable actions.
 1438         Section 24. Paragraph (c) of subsection (2) and subsection
 1439  (3) of section 713.31, Florida Statutes, are amended to read:
 1440         713.31 Remedies in case of fraud or collusion.—
 1441         (2)
 1442         (c) An owner against whose interest in real property a
 1443  fraudulent lien is filed, or any other lienor contractor,
 1444  subcontractor, or sub-subcontractor who suffers damages as a
 1445  result of the filing of the fraudulent lien, has shall have a
 1446  right of action for damages occasioned thereby. The action may
 1447  be instituted independently of any other action, or in
 1448  connection with a summons to show cause under s. 713.21, or as a
 1449  counterclaim or cross-claim to any action to enforce or to
 1450  determine the validity of the lien. The prevailing party in an
 1451  action under this paragraph may recover reasonable attorney
 1452  attorney’s fees and costs. If the lienor who files a fraudulent
 1453  lien is not the prevailing party, the lienor is shall be liable
 1454  to the owner or the defrauded party who prevails in an action
 1455  under this subsection in damages, which shall include court
 1456  costs, clerk’s fees, a reasonable attorney attorney’s fee and
 1457  costs for services in securing the discharge of the lien, the
 1458  amount of any premium for a bond given to obtain the discharge
 1459  of the lien, interest on any money deposited for the purpose of
 1460  discharging the lien, and punitive damages in an amount not
 1461  exceeding the difference between the amount claimed by the
 1462  lienor to be due or to become due and the amount actually due or
 1463  to become due.
 1464         (3) Any person who willfully files a fraudulent lien, as
 1465  defined in this section, commits a felony of the third degree,
 1466  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 1467  A state attorney or the statewide prosecutor, upon the filing of
 1468  an indictment or information against a lienor contractor,
 1469  subcontractor, or sub-subcontractor which charges such person
 1470  with a violation of this subsection, shall forward a copy of the
 1471  indictment or information to the Department of Business and
 1472  Professional Regulation. The Department of Business and
 1473  Professional Regulation shall promptly open an investigation
 1474  into the matter, and, if probable cause is found, shall furnish
 1475  a copy of any investigative report to the state attorney or
 1476  statewide prosecutor who furnished a copy of the indictment or
 1477  information and to the owner of the property which is the
 1478  subject of the investigation.
 1479         Section 25. Paragraph (d) of subsection (1) of section
 1480  713.345, Florida Statutes, is amended to read:
 1481         713.345 Moneys received for real property improvements;
 1482  penalty for misapplication.—
 1483         (1)
 1484         (d) A state attorney or the statewide prosecutor, upon the
 1485  filing of an indictment or information against a lienor
 1486  contractor, subcontractor, or sub-subcontractor which charges
 1487  such person with a violation of paragraph (b), shall forward a
 1488  copy of the indictment or information to the Department of
 1489  Business and Professional Regulation. The Department of Business
 1490  and Professional Regulation shall promptly open an investigation
 1491  into the matter and, if probable cause is found, shall furnish a
 1492  copy of any investigative report to the state attorney or
 1493  statewide prosecutor who furnished a copy of the indictment or
 1494  information and to the owner of the property which is the
 1495  subject of the investigation.
 1496         Section 26. Subsection (7) of section 713.346, Florida
 1497  Statutes, is amended to read:
 1498         713.346 Payment on construction contracts.—
 1499         (7) The prevailing party in any proceeding under this
 1500  section is entitled to recover costs, including a reasonable
 1501  attorney attorney’s fee, at trial and on appeal.
 1502         Section 27. Section 713.3471, Florida Statutes, is amended
 1503  to read:
 1504         713.3471 Lender responsibilities with construction loans.—
 1505         (1) Before Prior to a lender making any loan disbursement
 1506  on any construction loan secured by residential real property
 1507  directly to the owner, which, for purposes of this subsection,
 1508  means only a natural person, into the owner’s account or
 1509  accounts, or jointly to the owner and any other party, the
 1510  lender shall mail, deliver by electronic mail or other
 1511  electronic format or facsimile, or personally deliver the
 1512  following written notice to the borrowers in bold type larger
 1513  than any other type on the page:
 1514  
 1515                              WARNING!                             
 1516  
 1517         YOUR LENDER IS MAKING A LOAN DISBURSEMENT DIRECTLY TO
 1518         YOU AS THE BORROWER, OR JOINTLY TO YOU AND ANOTHER
 1519         PARTY. TO PROTECT YOURSELF FROM HAVING TO PAY TWICE
 1520         FOR THE SAME LABOR, SERVICES, OR MATERIALS USED IN
 1521         MAKING THE IMPROVEMENTS TO YOUR PROPERTY, BE SURE THAT
 1522         YOU REQUIRE ALL LIENORS YOUR CONTRACTOR TO GIVE YOU
 1523         LIEN RELEASES FROM EACH LIENOR WHO HAS SENT YOU A
 1524         NOTICE TO OWNER EACH TIME YOU MAKE A PAYMENT TO THE
 1525         LIENOR YOUR CONTRACTOR.
 1526  
 1527  This subsection does not apply when the owner is a contractor
 1528  licensed under chapter 489 or is a person who creates parcels or
 1529  offers parcels for sale or lease in the ordinary course of
 1530  business.
 1531         (2)(a) Within 5 business days after a lender makes a final
 1532  determination, before prior to the distribution of all funds
 1533  available under a construction loan, that the lender will cease
 1534  further advances under pursuant to the loan, the lender shall
 1535  serve written notice of that decision on the contractor and on
 1536  any other lienor who has given the lender notice. The lender is
 1537  shall not be liable to a lienor the contractor based upon the
 1538  decision of the lender to cease further advances if the lender
 1539  gives the lienor contractor notice of such decision in
 1540  accordance with this subsection and the decision is otherwise
 1541  permitted under the loan documents.
 1542         (b) The failure to give notice to the lienor contractor
 1543  under paragraph (a) renders the lender liable to the lienor
 1544  contractor to the extent of the actual value of the materials
 1545  and direct labor costs furnished by the lienor contractor plus
 1546  15 percent for overhead, profit, and all other costs from the
 1547  date on which notice of the lender’s decision should have been
 1548  served on the lienor contractor and the date on which notice of
 1549  the lender’s decision is served on the lienor contractor. The
 1550  lender and the lienor contractor may agree in writing to any
 1551  other reasonable method for determining the value of the labor,
 1552  services, and materials furnished by the lienor contractor.
 1553         (c) The liability of the lender may not shall in no event
 1554  be greater than the amount of undisbursed funds at the time the
 1555  notice should have been given unless the failure to give notice
 1556  was done for the purpose of defrauding the lienor contractor.
 1557  The lender is not liable to the lienor contractor for
 1558  consequential or punitive damages for failure to give timely
 1559  notice under this subsection. The lienor has contractor shall
 1560  have a separate cause of action against the lender for damages
 1561  sustained as the result of the lender’s failure to give timely
 1562  notice under this subsection. Such separate cause of action may
 1563  not be used to hinder or delay any foreclosure action filed by
 1564  the lender, may not be the basis of any claim for an equitable
 1565  lien or for equitable subordination of the mortgage lien, and
 1566  may not be asserted as an offset or a defense in the foreclosure
 1567  case.
 1568         (d) For purposes of serving notice on a lienor the
 1569  contractor under this subsection, the lender may rely on the
 1570  name and address of the lienor contractor listed in the notice
 1571  of commencement or, if a no notice of commencement is not
 1572  recorded, on the name and address of the lienor contractor
 1573  listed in the uniform building permit application. For purposes
 1574  of serving notice on any other lienor under this subsection, the
 1575  lender may rely upon the name and address of the lienor listed
 1576  in the notice to owner.
 1577         (e) A The contractor or any other lienor may not waive the
 1578  right to receive notice under this paragraph.
 1579         (3)(a) If the lender and the borrower have designated a
 1580  portion of the construction loan proceeds, the borrower may not
 1581  authorize the lender to disburse the funds so designated for any
 1582  other purpose until the owner serves the contractor and any
 1583  other lienor who has given the owner a notice to owner with
 1584  written notice of that decision, including the amount of such
 1585  loan proceeds to be disbursed. For the purposes of this
 1586  subsection, the term “designated construction loan proceeds”
 1587  means that portion of the loan allocated to actual construction
 1588  costs of the facility and does shall not include allocated loan
 1589  proceeds for tenant improvements when where the lienor does not
 1590  have a contractor has no contractual obligation or work order to
 1591  proceed with such improvements. The lender is shall not be
 1592  liable to the lienor contractor based upon the reallocation of
 1593  the loan proceeds or the disbursement of the loan proceeds if
 1594  the notice is timely given in accordance with this subsection
 1595  and the decision is otherwise permitted under the loan
 1596  documents.
 1597         (b) If the lender is permitted under the loan documents to
 1598  make disbursements from the loan contrary to the original loan
 1599  budget without the borrower’s prior consent, the lender is
 1600  responsible for serving the notice to any the contractor or
 1601  other lienor required under this subsection.
 1602         (c) This subsection does not apply to a residential project
 1603  of four units or fewer less.
 1604         (d) This subsection does not apply to construction loans of
 1605  less than $1 million unless the lender has committed to make
 1606  more than one loan, the total of which loans are greater than $1
 1607  million, for the purpose of evading this subsection.
 1608         (e) The owner or the lender is not required to give notice
 1609  to the contractor or any other lienor under this subsection
 1610  unless the total amount of all disbursements described in
 1611  paragraph (a) exceed 5 percent of the original amount of the
 1612  designated construction loan proceeds or $100,000, whichever is
 1613  less.
 1614         (f) Disbursement of loan proceeds contrary to this
 1615  subsection renders the lender liable to the lienor contractor to
 1616  the extent of any such disbursements or to the extent of the
 1617  actual value of the materials and direct labor costs plus 15
 1618  percent for overhead, profit, and all other costs, whichever is
 1619  less. The lender is not liable to the lienor contractor for
 1620  consequential or punitive damages for disbursing loan proceeds
 1621  in violation of this subsection. The lienor has contractor shall
 1622  have a separate cause of action against the lender for damages
 1623  sustained as the result of the disbursement of loan proceeds in
 1624  violation of this subsection. Such separate cause of action may
 1625  not be used to hinder or delay any foreclosure action filed by
 1626  the lender, may not be the basis of any claim for equitable
 1627  subordination of the mortgage lien, and may not be asserted as
 1628  an offset or a defense in the foreclosure case.
 1629         (g) For purposes of serving notice on a lienor the
 1630  contractor under this subsection, the lender may rely upon the
 1631  name and address of the lienor contractor listed in the notice
 1632  of commencement or, if no notice of commencement is recorded,
 1633  the name and address of the lienor contractor listed in the
 1634  uniform building permit application. For purposes of serving
 1635  notice on any other lienor under this subsection, the lender may
 1636  rely upon the name and address of the lienor listed in the
 1637  notice to owner.
 1638         (h) For purposes of this subsection, the lender may rely
 1639  upon a written statement, signed under oath by the contractor or
 1640  any other lienor, that confirms that the contractor or the
 1641  lienor has received the written notice required by this
 1642  subsection.
 1643         (i) A contractor and any other lienor may not waive his or
 1644  her right to receive notice under this subsection.
 1645         Section 28. Section 713.35, Florida Statutes, is amended to
 1646  read:
 1647         713.35 Making or furnishing false statement.—Any person,
 1648  firm, or corporation who knowingly and intentionally makes or
 1649  furnishes to another person, firm, or corporation an affidavit,
 1650  a waiver or release of lien, or other document, whether or not
 1651  under oath, containing false information about the payment
 1652  status of any lienors subcontractors, sub-subcontractors, or
 1653  suppliers in connection with the improvement of real property in
 1654  this state, knowing that the one to whom it was furnished might
 1655  rely on it, and the one to whom it was furnished will part with
 1656  draw payments or final payment relying on the truth of such
 1657  statement as an inducement to do so commits a felony of the
 1658  third degree, punishable as provided in s. 775.082 or s.
 1659  775.083. A state attorney or the statewide prosecutor, upon the
 1660  filing of an indictment or information against a person, firm,
 1661  or corporation contractor, subcontractor, or sub-subcontractor
 1662  which charges such person or entity with a violation of this
 1663  section, shall forward a copy of the indictment or information
 1664  to the Department of Business and Professional Regulation. The
 1665  Department of Business and Professional Regulation shall
 1666  promptly open an investigation into the matter and, if probable
 1667  cause is found, shall furnish a copy of any investigative report
 1668  to the state attorney or statewide prosecutor who furnished a
 1669  copy of the indictment or information and to the owner of the
 1670  property which is the subject of the investigation.
 1671         Section 29. Subsection (2) of section 713.22, Florida
 1672  Statutes, is amended to read:
 1673         713.22 Duration of lien.—
 1674         (2) An owner or the owner’s attorney may elect to shorten
 1675  the time prescribed in subsection (1) within which to commence
 1676  an action to enforce any claim of lien or claim against a bond
 1677  or other security under s. 713.23 or s. 713.24 by recording in
 1678  the clerk’s office a notice in substantially the following form:
 1679  
 1680                      NOTICE OF CONTEST OF LIEN                    
 1681  
 1682  To: ...(Name and address of lienor)...
 1683  
 1684  You are notified that the undersigned contests the claim of lien
 1685  filed by you on ...., ...(year)..., and recorded in .... Book
 1686  ...., Page ...., of the public records of .... County, Florida,
 1687  and that the time within which you may file suit to enforce your
 1688  lien is limited to 60 days from the date of service of this
 1689  notice. This .... day of ...., ...(year)....
 1690  
 1691  Signed: ...(Owner or Attorney)...
 1692  
 1693  The lien of any lienor upon whom such notice is served and who
 1694  fails to institute a suit to enforce his or her lien within 60
 1695  days after service of such notice shall be extinguished
 1696  automatically. The clerk shall serve, in accordance with s.
 1697  713.18, a copy of the notice of contest to the lien claimant at
 1698  the address shown in the claim of lien or most recent amendment
 1699  thereto and shall certify to such service and the date of
 1700  service on the face of the notice and record the notice.
 1701         Section 30. Paragraph (b) of subsection (2) and paragraph
 1702  (e) of subsection (5) of section 95.11, Florida Statutes, are
 1703  amended to read:
 1704         95.11 Limitations other than for the recovery of real
 1705  property.—Actions other than for recovery of real property shall
 1706  be commenced as follows:
 1707         (2) WITHIN FIVE YEARS.—
 1708         (b) A legal or equitable action on a contract, obligation,
 1709  or liability founded on a written instrument, except for an
 1710  action to enforce a claim against a payment bond, which shall be
 1711  governed by the applicable provisions of paragraph (5)(e), s.
 1712  255.05(10), or s. 337.18(1), or s. 713.23(1)(e), and except for
 1713  an action for a deficiency judgment governed by paragraph
 1714  (5)(h).
 1715         (5) WITHIN ONE YEAR.—
 1716         (e) Except for actions governed by s. 255.05(10) or, s.
 1717  337.18(1), or s. 713.23(1)(e), an action to enforce any claim
 1718  against a payment bond on which the principal is a contractor,
 1719  subcontractor, or sub-subcontractor as defined in s. 713.01, for
 1720  private work as well as public work, from the last furnishing of
 1721  labor, services, or materials or from the last furnishing of
 1722  labor, services, or materials by the contractor if the
 1723  contractor is the principal on a bond on the same construction
 1724  project, whichever is later.
 1725         Section 31. This act shall take effect July 1, 2020.