Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 1202
       
       
       
       
       
       
                                Barcode 697468                          
       
                              LEGISLATIVE ACTION                        
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       The Committee on Judiciary (Richter) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Subsections (2) and (5) of section 95.11,
    7  Florida Statutes, are amended to read:
    8         95.11 Limitations other than for the recovery of real
    9  property.—Actions other than for recovery of real property shall
   10  be commenced as follows:
   11         (2) WITHIN FIVE YEARS.—
   12         (a) An action on a judgment or decree of any court, not of
   13  record, of this state or any court of the United States, any
   14  other state or territory in the United States, or a foreign
   15  country.
   16         (b) A legal or equitable action on a contract, obligation,
   17  or liability founded on a written instrument, except for an
   18  action to enforce a claim against a payment bond, which shall be
   19  governed by the applicable provisions of s. ss. 255.05(10), s.
   20  337.18(1), or s. and 713.23(1)(e).
   21         (c) An action to foreclose a mortgage.
   22         (d) An action alleging a willful violation of s. 448.110.
   23         (e) Notwithstanding paragraph (b), an action for breach of
   24  a property insurance contract, with the period running from the
   25  date of loss.
   26         (5) WITHIN ONE YEAR.—
   27         (a) An action for specific performance of a contract.
   28         (b) An action to enforce an equitable lien arising from the
   29  furnishing of labor, services, or material for the improvement
   30  of real property.
   31         (c) An action to enforce rights under the Uniform
   32  Commercial Code—Letters of Credit, chapter 675.
   33         (d) An action against any guaranty association and its
   34  insured, with the period running from the date of the deadline
   35  for filing claims in the order of liquidation.
   36         (e) An action to enforce any claim against a payment bond
   37  on which the principal is a contractor, subcontractor, or sub
   38  subcontractor as defined in s. 713.01, for private work as well
   39  as public work, from the last furnishing of labor, services, or
   40  materials or from the last furnishing of labor, services, or
   41  materials by the contractor if the contractor is the principal
   42  on a bond on the same construction project, whichever is later.
   43         (e)(f) Except for actions described in subsection (8), a
   44  petition for extraordinary writ, other than a petition
   45  challenging a criminal conviction, filed by or on behalf of a
   46  prisoner as defined in s. 57.085.
   47         (f)(g) Except for actions described in subsection (8), an
   48  action brought by or on behalf of a prisoner, as defined in s.
   49  57.085, relating to the conditions of the prisoner’s
   50  confinement.
   51         Section 2. Section 255.05, Florida Statutes, is amended to
   52  read:
   53         255.05 Bond of contractor constructing public buildings;
   54  form; action by claimants materialmen.—
   55         (1)(a) A Any person entering into a formal contract with
   56  the state or any county, city, or political subdivision thereof,
   57  or other public authority or private entity, for the
   58  construction of a public building, for the prosecution and
   59  completion of a public work, or for repairs upon a public
   60  building or public work shall be required, before commencing the
   61  work or before recommencing the work after a default or
   62  abandonment, to execute, deliver to the public owner, and record
   63  in the public records of the county where the improvement is
   64  located, a payment and performance bond with a surety insurer
   65  authorized to do business in this state as surety. A public
   66  entity may not require a contractor to secure a surety bond
   67  under this section from a specific agent or bonding company. The
   68  bond must state on its front page: the name, principal business
   69  address, and phone number of the contractor, the surety, the
   70  owner of the property being improved, and, if different from the
   71  owner, the contracting public entity; the contract number
   72  assigned by the contracting public entity; the bond number
   73  assigned by the surety; and a description of the project
   74  sufficient to identify it, such as a legal description or the
   75  street address of the property being improved, and a general
   76  description of the improvement. The Such bond shall be
   77  conditioned upon the contractor’s performance of the
   78  construction work in the time and manner prescribed in the
   79  contract and promptly making payments to all persons defined in
   80  s. 713.01 who furnish labor, services, or materials for the
   81  prosecution of the work provided for in the contract. A Any
   82  claimant may apply to the governmental entity having charge of
   83  the work for copies of the contract and bond and shall thereupon
   84  be furnished with a certified copy of the contract and bond. The
   85  claimant has shall have a right of action against the contractor
   86  and surety for the amount due him or her, including unpaid
   87  finance charges due under the claimant’s contract. Such action
   88  may shall not involve the public authority in any expense. When
   89  the such work is done for the state and the contract is for
   90  $100,000 or less, no payment and performance bond shall be
   91  required. At the discretion of the official or board awarding
   92  such contract when such work is done for any county, city,
   93  political subdivision, or public authority, a any person
   94  entering into such a contract that which is for $200,000 or less
   95  may be exempted from executing the payment and performance bond.
   96  When such work is done for the state, the Secretary of
   97  Management Services may delegate to state agencies the authority
   98  to exempt any person entering into such a contract amounting to
   99  more than $100,000 but less than $200,000 from executing the
  100  payment and performance bond. If an In the event such exemption
  101  is granted, the officer or officials is shall not be personally
  102  liable to persons suffering loss because of granting such
  103  exemption. The Department of Management Services shall maintain
  104  information on the number of requests by state agencies for
  105  delegation of authority to waive the bond requirements by agency
  106  and project number and whether any request for delegation was
  107  denied and the justification for the denial. Any provision in a
  108  payment bond furnished for public work contracts as provided by
  109  this subsection which further restricts the classes of persons
  110  as defined in s. 713.01 protected by the bond, which restricts
  111  or the venue of any proceeding relating to such bond, which
  112  limits or expands the effective duration of the bond, or which
  113  adds conditions precedent to the enforcement of a claim against
  114  the bond beyond those provided in this section is unenforceable.
  115         (b) The Department of Management Services shall adopt rules
  116  with respect to all contracts for $200,000 or less, to provide:
  117         1. Procedures for retaining up to 10 percent of each
  118  request for payment submitted by a contractor and procedures for
  119  determining disbursements from the amount retained on a pro rata
  120  basis to laborers, materialmen, and subcontractors, as defined
  121  in s. 713.01.
  122         2. Procedures for requiring certification from laborers,
  123  materialmen, and subcontractors, as defined in s. 713.01, before
  124  prior to final payment to the contractor that such laborers,
  125  materialmen, and subcontractors have no claims against the
  126  contractor resulting from the completion of the work provided
  127  for in the contract.
  128  
  129  The state is shall not be held liable to any laborer,
  130  materialman, or subcontractor for any amounts greater than the
  131  pro rata share as determined under this section.
  132         (c)1. The amount of the bond shall equal the contract
  133  price, except that for a contract in excess of $250 million, if
  134  the state, county, municipality, political subdivision, or other
  135  public entity finds that a bond in the amount of the contract
  136  price is not reasonably available, the public owner shall set
  137  the amount of the bond at the largest amount reasonably
  138  available, but not less than $250 million.
  139         2. For construction-management or design-build contracts,
  140  if the public owner does not include in the bond amount the cost
  141  of design or other nonconstruction services, the bond may not be
  142  conditioned on performance of such services or payment to
  143  persons furnishing such services. Notwithstanding paragraph (a),
  144  such a bond may exclude persons furnishing such services from
  145  the classes of persons protected by the bond.
  146         (2)(a)1. If a claimant is no longer furnishing labor,
  147  services, or materials on a project, a contractor or the
  148  contractor’s agent or attorney may elect to shorten the
  149  prescribed time in this paragraph within which an action to
  150  enforce any claim against a payment bond must provided pursuant
  151  to this section may be commenced by recording in the clerk’s
  152  office a notice in substantially the following form:
  153  
  154                     NOTICE OF CONTEST OF CLAIM                    
  155                        AGAINST PAYMENT BOND                       
  156  
  157  To: ...(Name and address of claimant)...
  158  
  159         You are notified that the undersigned contests your notice
  160  of nonpayment, dated ............, ........, and served on the
  161  undersigned on ............, ........, and that the time within
  162  which you may file suit to enforce your claim is limited to 60
  163  days after the date of service of this notice.
  164  
  165         DATED on ............, .........
  166  
  167  Signed: ...(Contractor or Attorney)...
  168  
  169         The claim of a any claimant upon whom such notice is served
  170  and who fails to institute a suit to enforce his or her claim
  171  against the payment bond within 60 days after service of such
  172  notice shall be extinguished automatically. The contractor or
  173  the contractor’s attorney clerk shall mail a copy of the notice
  174  of contest to the claimant at the address shown in the notice of
  175  nonpayment or most recent amendment thereto and shall certify to
  176  such service on the face of the such notice and record the
  177  notice. Service is complete upon mailing.
  178         2. A claimant, except a laborer, who is not in privity with
  179  the contractor shall, before commencing or not later than 45
  180  days after commencing to furnish labor, services, or materials
  181  for the prosecution of the work, furnish the contractor with a
  182  written notice that he or she intends to look to the bond for
  183  protection. A claimant who is not in privity with the contractor
  184  and who has not received payment for his or her labor, services,
  185  or materials shall deliver to the contractor and to the surety
  186  written notice of the performance of the labor or delivery of
  187  the materials or supplies and of the nonpayment. The notice of
  188  nonpayment shall may be served at any time during the progress
  189  of the work or thereafter but may not be served earlier than
  190  before 45 days after the first furnishing of labor, services, or
  191  materials or, and not later than 90 days after the final
  192  furnishing of the labor, services, or materials by the claimant
  193  or, with respect to rental equipment, not later than 90 days
  194  after the date that the rental equipment was last on the job
  195  site available for use. Any notice of nonpayment served by a
  196  claimant who is not in privity with the contractor which
  197  includes sums for retainage must specify the portion of the
  198  amount claimed for retainage. An No action for the labor,
  199  materials, or supplies may not be instituted against the
  200  contractor or the surety unless the notice to the contractor and
  201  notice of nonpayment have been served, if required by this
  202  section both notices have been given. If the payment bond is not
  203  recorded before commencement of construction, the time period
  204  for the claimant to serve the required notices may at the option
  205  of the claimant be calculated from the dates specified in this
  206  section or from the date the claimant is served a copy of the
  207  bond. However, the limitation period for commencement of an
  208  action on the bond as established in subsection (10) may not be
  209  expanded. Notices required or permitted under this section shall
  210  may be served in accordance with s. 713.18. A claimant may not
  211  waive in advance his or her right to bring an action under the
  212  bond against the surety. In any action brought to enforce a
  213  claim against a payment bond under this section, the prevailing
  214  party is entitled to recover a reasonable fee for the services
  215  of his or her attorney for trial and appeal or for arbitration,
  216  in an amount to be determined by the court, which fee must be
  217  taxed as part of the prevailing party’s costs, as allowed in
  218  equitable actions. The time periods for service of a notice of
  219  nonpayment or for bringing an action against a contractor or a
  220  surety shall be measured from the last day of furnishing labor,
  221  services, or materials by the claimant and may shall not be
  222  measured by other standards, such as the issuance of a
  223  certificate of occupancy or the issuance of a certificate of
  224  substantial completion.
  225         (b) When a person is required to execute a waiver of his or
  226  her right to make a claim against the payment bond in exchange
  227  for, or to induce payment of, a progress payment, the waiver may
  228  be in substantially the following form:
  229  
  230                      WAIVER OF RIGHT TO CLAIM                     
  231                      AGAINST THE PAYMENT BOND                     
  232                         (PROGRESS PAYMENT)                        
  233  
  234         The undersigned, in consideration of the sum of $....,
  235  hereby waives its right to claim against the payment bond for
  236  labor, services, or materials furnished through ...(insert
  237  date)... to ...(insert the name of your customer)... on the job
  238  of ...(insert the name of the owner)..., for improvements to the
  239  following described project:
  240  
  241                      (description of project)                     
  242  
  243  This waiver does not cover any retention or any labor, services,
  244  or materials furnished after the date specified.
  245  
  246         DATED ON ........, .....
  247  ...(Claimant)...
  248  By:............
  249  
  250         (c) When a person is required to execute a waiver of his or
  251  her right to make a claim against the payment bond, in exchange
  252  for, or to induce payment of, the final payment, the waiver may
  253  be in substantially the following form:
  254  
  255                      WAIVER OF RIGHT TO CLAIM                     
  256                      AGAINST THE PAYMENT BOND                     
  257                           (FINAL PAYMENT)                         
  258  
  259         The undersigned, in consideration of the final payment in
  260  the amount of $...., hereby waives its right to claim against
  261  the payment bond for labor, services, or materials furnished to
  262  ...(insert the name of your customer)... on the job of
  263  ...(insert the name of the owner)..., for improvements to the
  264  following described project:
  265  
  266                      (description of project)                     
  267  
  268         DATED ON ........, .....
  269  ...(Claimant)...
  270  By:............
  271  
  272         (d) A person may not require a claimant to furnish a waiver
  273  that is different from the forms in paragraphs (b) and (c).
  274         (e) A claimant who executes a waiver in exchange for a
  275  check may condition the waiver on payment of the check.
  276         (f) A waiver that is not substantially similar to the forms
  277  in this subsection is enforceable in accordance with its terms.
  278         (3) The bond required in subsection (1) may be in
  279  substantially the following form:
  280  
  281                      PUBLIC CONSTRUCTION BOND                     
  282  Bond No....(enter bond number)...
  283  
  284         BY THIS BOND, We ...., as Principal and ...., a
  285  corporation, as Surety, are bound to ...., herein called Owner,
  286  in the sum of $...., for payment of which we bind ourselves, our
  287  heirs, personal representatives, successors, and assigns,
  288  jointly and severally.
  289         THE CONDITION OF THIS BOND is that if Principal:
  290         1. Performs the contract dated ...., ...., between
  291  Principal and Owner for construction of ...., the contract being
  292  made a part of this bond by reference, at the times and in the
  293  manner prescribed in the contract; and
  294         2. Promptly makes payments to all claimants, as defined in
  295  Section 255.05(1), Florida Statutes, supplying Principal with
  296  labor, materials, or supplies, used directly or indirectly by
  297  Principal in the prosecution of the work provided for in the
  298  contract; and
  299         3. Pays Owner all losses, damages, expenses, costs, and
  300  attorney’s fees, including appellate proceedings, that Owner
  301  sustains because of a default by Principal under the contract;
  302  and
  303         4. Performs the guarantee of all work and materials
  304  furnished under the contract for the time specified in the
  305  contract, then this bond is void; otherwise it remains in full
  306  force.
  307  
  308  Any action instituted by a claimant under this bond for payment
  309  must be in accordance with the notice and time limitation
  310  provisions in Section 255.05(2), Florida Statutes.
  311  
  312  Any changes in or under the contract documents and compliance or
  313  noncompliance with any formalities connected with the contract
  314  or the changes does not affect Surety’s obligation under this
  315  bond.
  316  
  317         DATED ON ...., .....
  318  
  319  ...(Name of Principal)...
  320  By ...(As Attorney in Fact)...
  321  ...(Name of Surety)...
  322  
  323         (4) The payment bond provisions of all bonds required by
  324  subsection (1) shall be construed and deemed statutory payment
  325  bonds furnished pursuant to this section and such bonds shall
  326  not under any circumstances be converted into common law bonds.
  327         (5) In addition to the provisions of chapter 47, any action
  328  authorized under this section may be brought in the county in
  329  which the public building or public work is being constructed or
  330  repaired. This subsection shall not apply to an action
  331  instituted prior to May 17, 1977.
  332         (6) All payment bond forms used by a public owner and all
  333  payment bonds executed pursuant to this section by a surety
  334  shall make reference to this section by number and shall contain
  335  reference to the notice and time limitation provisions in
  336  subsection (2).
  337         (7) In lieu of the bond required by this section, a
  338  contractor may file with the state, county, city, or other
  339  political authority an alternative form of security in the form
  340  of cash, a money order, a certified check, a cashier’s check, an
  341  irrevocable letter of credit, or a security of a type listed in
  342  part II of chapter 625. Any such alternative form of security
  343  shall be for the same purpose and be subject to the same
  344  conditions as those applicable to the bond required by this
  345  section. The determination of the value of an alternative form
  346  of security shall be made by the appropriate state, county,
  347  city, or other political subdivision.
  348         (8) When a contractor has furnished a payment bond pursuant
  349  to this section, he or she may, when the state, county,
  350  municipality, political subdivision, or other public authority
  351  makes any payment to the contractor or directly to a claimant,
  352  serve a written demand on any claimant who is not in privity
  353  with the contractor for a written statement under oath of his or
  354  her account showing the nature of the labor or services
  355  performed and to be performed, if any; the materials furnished;
  356  the materials to be furnished, if known; the amount paid on
  357  account to date; the amount due; and the amount to become due,
  358  if known, as of the date of the statement by the claimant. Any
  359  such demand to a claimant who is not in privity with the
  360  contractor must be served on the claimant at the address and to
  361  the attention of any person who is designated to receive the
  362  demand in the notice to contractor served by the claimant. The
  363  failure or refusal to furnish the statement does not deprive the
  364  claimant of his or her rights under the bond if the demand is
  365  not served at the address of the claimant or directed to the
  366  attention of the person designated to receive the demand in the
  367  notice to contractor. The failure to furnish the statement
  368  within 30 days after the demand, or the furnishing of a false or
  369  fraudulent statement, deprives the claimant who fails to furnish
  370  the statement, or who furnishes the false or fraudulent
  371  statement, of his or her rights under the bond. If the
  372  contractor serves more than one demand for statement of account
  373  on a claimant and none of the information regarding the account
  374  has changed since the claimant’s last response to a demand, the
  375  failure or refusal to furnish such statement does not deprive
  376  the claimant of his or her rights under the bond. The negligent
  377  inclusion or omission of any information deprives the claimant
  378  of his or her rights under the bond to the extent that the
  379  contractor can demonstrate prejudice from such act or omission
  380  by the claimant. The failure to furnish a response to a demand
  381  for statement of account does not affect the validity of any
  382  claim on the bond being enforced in a lawsuit filed before the
  383  date the demand for statement of account is received by the
  384  claimant.
  385         (9) On any public works project for which the public
  386  authority requires a performance and payment bond, suits at law
  387  and in equity may be brought and maintained by and against the
  388  public authority on any contract claim arising from breach of an
  389  express provision or an implied covenant of a written agreement
  390  or a written directive issued by the public authority pursuant
  391  to the written agreement. In any such suit, the public authority
  392  and the contractor shall have all of the same rights and
  393  obligations as a private person under a like contract except
  394  that no liability may be based on an oral modification of either
  395  the written contract or written directive. Nothing herein shall
  396  be construed to waive the sovereign immunity of the state and
  397  its political subdivisions from equitable claims and equitable
  398  remedies. The provisions of this subsection shall apply only to
  399  contracts entered into on or after July 1, 1999.
  400         (10) An action, except an action for recovery of retainage,
  401  must be instituted against the contractor or the surety on the
  402  payment bond or the payment provisions of a combined payment and
  403  performance bond within 1 year after the performance of the
  404  labor or completion of delivery of the materials or supplies. An
  405  action for recovery of retainage must be instituted against the
  406  contractor or the surety within 1 year after the performance of
  407  the labor or completion of delivery of the materials or
  408  supplies; however, such an action may not be instituted until
  409  one of the following conditions is satisfied:
  410         (a) The public entity has paid out the claimant’s retainage
  411  to the contractor, and the time provided under s. 218.735 or s.
  412  255.073(3) for payment of that retainage to the claimant has
  413  expired;
  414         (b) The claimant has completed all work required under its
  415  contract and 70 days have passed since the contractor sent its
  416  final payment request to the public entity; or
  417         (c) At least 160 days have passed since reaching
  418  substantial completion of the construction services purchased,
  419  as defined in the contract, or if not defined in the contract,
  420  since reaching beneficial occupancy or use of the project.
  421         (d) The claimant has asked the contractor, in writing, for
  422  any of the following information and the contractor has failed
  423  to respond to the claimant’s request, in writing, within 10 days
  424  after receipt of the request:
  425         1. Whether the project has reached substantial completion,
  426  as that term is defined in the contract, or if not defined in
  427  the contract, if beneficial occupancy or use of the project has
  428  occurred.
  429         2. Whether the contractor has received payment of the
  430  claimant’s retainage, and if so, the date the retainage was
  431  received by the contractor.
  432         3. Whether the contractor has sent its final payment
  433  request to the public entity, and if so, the date on which the
  434  final payment request was sent.
  435  
  436  If none of the conditions described in paragraph (a), paragraph
  437  (b), paragraph (c), or paragraph (d) is satisfied and an action
  438  for recovery of retainage cannot be instituted within the 1-year
  439  limitation period set forth in this subsection, this limitation
  440  period shall be extended until 120 days after one of these
  441  conditions is satisfied.
  442         (11) When a contractor furnishes and records a payment and
  443  performance bond for a public works project in accordance with
  444  this section, the public authority may not condition its
  445  payments to the contractor on the production of a release,
  446  waiver, or like documentation from a claimant demonstrating that
  447  the claimant does not have an outstanding claim against the
  448  contractor, the surety, the payment bond, or the public
  449  authority for payments due on labor, services, or materials
  450  furnished on the public works project.
  451         Section 3. Paragraph (b) of subsection (2) of section
  452  713.10, Florida Statutes, is amended to read:
  453         713.10 Extent of liens.—
  454         (2)
  455         (b) The interest of the lessor is shall not be subject to
  456  liens for improvements made by the lessee when:
  457         1. The lease, or a short form or a memorandum of the lease
  458  that contains the specific language in the lease prohibiting
  459  such liability, is recorded in the official records of the
  460  county where the premises are located before the recording of a
  461  notice of commencement for improvements to the premises and the
  462  terms of the lease expressly prohibit such liability; or
  463         2. The terms of the lease expressly prohibit such
  464  liability, and a notice advising that leases for the rental of
  465  premises on a parcel of land prohibit such liability has been
  466  recorded in the official records of the county in which the
  467  parcel of land is located before the recording of a notice of
  468  commencement for improvements to the premises, and the notice
  469  includes the following:
  470         a. The name of the lessor.
  471         b. The legal description of the parcel of land to which the
  472  notice applies.
  473         c. The specific language contained in the various leases
  474  prohibiting such liability.
  475         d. A statement that all or a majority of the leases entered
  476  into for premises on the parcel of land expressly prohibit such
  477  liability.
  478         3. The lessee is a mobile home owner who is leasing a
  479  mobile home lot in a mobile home park from the lessor.
  480  
  481  A notice that is consistent with subparagraph 2. effectively
  482  prohibits liens for improvements made by a lessee even if other
  483  leases for premises on the parcel do not expressly prohibit
  484  liens or if provisions of each lease restricting the application
  485  of liens are not identical.
  486         Section 4. Paragraph (e) of subsection (1) of section
  487  713.13, Florida Statutes, is amended to read:
  488         713.13 Notice of commencement.—
  489         (1)
  490         (e) A copy of any payment bond must be attached at the time
  491  of recordation of the notice of commencement. The failure to
  492  attach a copy of the bond to the notice of commencement when the
  493  notice is recorded negates the exemption provided in s.
  494  713.02(6). However, if a payment bond under s. 713.23 exists but
  495  was not attached at the time of recordation of the notice of
  496  commencement, the bond may be used to transfer any recorded lien
  497  of a lienor except that of the contractor by the recordation and
  498  service of a notice of bond pursuant to s. 713.23(2). The notice
  499  requirements of s. 713.23 apply to any claim against the bond;
  500  however, the time limits for serving any required notices shall,
  501  at the option of the lienor, be calculated from the dates begin
  502  running from the later of the time specified in s. 713.23 or the
  503  date the notice of bond is served on the lienor.
  504         Section 5. Subsections (1) and (4) of section 713.132,
  505  Florida Statutes, are amended to read:
  506         713.132 Notice of termination.—
  507         (1) An owner may terminate the period of effectiveness of a
  508  notice of commencement by executing, swearing to, and recording
  509  a notice of termination that contains:
  510         (a) The same information as the notice of commencement;
  511         (b) The recording office document book and page reference
  512  numbers and date of the notice of commencement;
  513         (c) A statement of the date as of which the notice of
  514  commencement is terminated, which date may not be earlier than
  515  30 days after the notice of termination is recorded;
  516         (d) A statement specifying that the notice applies to all
  517  the real property subject to the notice of commencement or
  518  specifying the portion of such real property to which it
  519  applies;
  520         (e) A statement that all lienors have been paid in full;
  521  and
  522         (f) A statement that the owner has, before recording the
  523  notice of termination, served a copy of the notice of
  524  termination on the contractor and on each lienor who has a
  525  direct contract with the owner or who has served a notice to
  526  owner given notice. The owner is not required to serve a copy of
  527  the notice of termination on any lienor who has executed a
  528  waiver and release of lien upon final payment in accordance with
  529  s. 713.20.
  530         (4) A notice of termination is effective to terminate the
  531  notice of commencement at the later of 30 days after recording
  532  of the notice of termination or the date stated in the notice of
  533  termination as the date on which the notice of commencement is
  534  terminated, if provided that the notice of termination has been
  535  served pursuant to paragraph (1)(f) on the contractor and on
  536  each lienor who has a direct contract with the owner or who has
  537  served a notice to owner given notice.
  538         Section 6. Section 713.16, Florida Statutes, is amended to
  539  read:
  540         713.16 Demand for copy of contract and statements of
  541  account; form.—
  542         (1) A copy of the contract of a lienor or owner and a
  543  statement of the amount due or to become due if fixed or
  544  ascertainable thereon must be furnished by any party thereto,
  545  upon written demand of an owner or a lienor contracting with or
  546  employed by the other party to such contract. If the owner or
  547  lienor refuses or neglects to furnish such copy of the contract
  548  or such statement, or willfully and falsely states the amount
  549  due or to become due if fixed or ascertainable under such
  550  contract, any person who suffers any detriment thereby has a
  551  cause of action against the person refusing or neglecting to
  552  furnish the same or willfully and falsely stating the amount due
  553  or to become due for his or her damages sustained thereby. The
  554  information contained in such copy or statement furnished
  555  pursuant to such written demand is binding upon the owner or
  556  lienor furnishing it unless actual notice of any modification is
  557  given to the person demanding the copy or statement before such
  558  person acts in good faith in reliance on it. The person
  559  demanding such documents must pay for the reproduction thereof;
  560  and, if such person fails or refuses to do so, he or she is
  561  entitled only to inspect such documents at reasonable times and
  562  places.
  563         (2) The owner may serve in writing a demand of any lienor
  564  for a written statement under oath of his or her account showing
  565  the nature of the labor or services performed and to be
  566  performed, if any, the materials furnished, the materials to be
  567  furnished, if known, the amount paid on account to date, the
  568  amount due, and the amount to become due, if known, as of the
  569  date of the statement by the lienor. Any such demand to a lienor
  570  must be served on the lienor at the address and to the attention
  571  of any person who is designated to receive the demand in the
  572  notice to owner served by such lienor and must include a
  573  description of the property and the names of the owner, the
  574  contractor, and the lienor’s customer, as set forth in the
  575  lienor’s notice to owner. The failure or refusal to furnish the
  576  statement does not deprive the lienor of his or her lien if the
  577  demand is not served at the address of the lienor or directed to
  578  the attention of the person designated to receive the demand in
  579  the notice to owner. The failure or refusal to furnish the
  580  statement under oath within 30 days after the demand, or the
  581  furnishing of a false or fraudulent statement, deprives the
  582  person so failing or refusing to furnish such statement of his
  583  or her lien. If the owner serves more than one demand for
  584  statement of account on a lienor and none of the information
  585  regarding the account has changed since the lienor’s last
  586  response to a demand, the failure or refusal to furnish such
  587  statement does not deprive the lienor of his or her lien. The
  588  negligent inclusion or omission of any information deprives the
  589  person of his or her lien to the extent the owner can
  590  demonstrate prejudice from such act or omission by the lienor.
  591  The failure to furnish a response to a demand for statement of
  592  account does not affect the validity of any claim of lien being
  593  enforced through a foreclosure case filed before prior to the
  594  date the demand for statement is received by the lienor.
  595         (3) A request for sworn statement of account must be in
  596  substantially the following form:
  597  
  598               REQUEST FOR SWORN STATEMENT OF ACCOUNT              
  599  
  600  WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT, SIGNED
  601  UNDER OATH, WITHIN 30 DAYS OR THE FURNISHING OF A FALSE
  602  STATEMENT WILL RESULT IN THE LOSS OF YOUR LIEN.
  603  
  604  To: ...(Lienor’s name and address)...
  605  
  606  The undersigned hereby demands a written statement under oath of
  607  his or her account showing the nature of the labor or services
  608  performed and to be performed, if any, the materials furnished,
  609  the materials to be furnished, if known, the amount paid on
  610  account to date, the amount due, and the amount to become due,
  611  if known, as of the date of the statement for the improvement of
  612  real property identified as ...(property description)....
  613  
  614         ...(name of contractor)...
  615  
  616         ...(name of the lienor’s customer, as set forth in the
  617  lienor’s Notice to Owner, if such notice has been served)...
  618  
  619  
  620  ...(signature and address of owner)...
  621  ...(date of request for sworn statement of account)...
  622  
  623  
  624         (4) When a contractor has furnished a payment bond pursuant
  625  to s. 713.23, he or she may, when an owner makes any payment to
  626  the contractor or directly to a lienor, serve a written demand
  627  on any other lienor for a written statement under oath of his or
  628  her account showing the nature of the labor or services
  629  performed and to be performed, if any, the materials furnished,
  630  the materials to be furnished, if known, the amount paid on
  631  account to date, the amount due, and the amount to become due,
  632  if known, as of the date of the statement by the lienor. Any
  633  such demand to a lienor must be served on the lienor at the
  634  address and to the attention of any person who is designated to
  635  receive the demand in the notice to contractor served by such
  636  lienor. The demand must include a description of the property
  637  and the names of the owner, the contractor, and the lienor’s
  638  customer, as set forth in the lienor’s notice to contractor. The
  639  failure or refusal to furnish the statement does not deprive the
  640  lienor of his or her rights under the bond if the demand is not
  641  served at the address of the lienor or directed to the attention
  642  of the person designated to receive the demand in the notice to
  643  contractor. The failure to furnish the statement within 30 days
  644  after the demand, or the furnishing of a false or fraudulent
  645  statement, deprives the person who fails to furnish the
  646  statement, or who furnishes the false or fraudulent statement,
  647  of his or her rights under the bond. If the contractor serves
  648  more than one demand for statement of account on a lienor and
  649  none of the information regarding the account has changed since
  650  the lienor’s last response to a demand, the failure or refusal
  651  to furnish such statement does not deprive the lienor of his or
  652  her rights under the bond. The negligent inclusion or omission
  653  of any information deprives the person of his or her rights
  654  under the bond to the extent the contractor can demonstrate
  655  prejudice from such act or omission by the lienor. The failure
  656  to furnish a response to a demand for statement of account does
  657  not affect the validity of any claim on the bond being enforced
  658  in a lawsuit filed prior to the date the demand for statement of
  659  account is received by the lienor.
  660         (5)(a) Any lienor who is perfecting a claim of lien has
  661  recorded a claim of lien may serve with the claim of lien or
  662  thereafter a make written demand on the owner for a written
  663  statement under oath showing:
  664         1. The amount of the direct contract under which the lien
  665  was recorded;
  666         2. The dates and amounts paid or to be paid by or on behalf
  667  of the owner for all improvements described in the direct
  668  contract;
  669         3. The reasonable estimated costs of completing the direct
  670  contract under which the lien was claimed pursuant to the scope
  671  of the direct contract; and
  672         4. If known, the actual cost of completion.
  673         (b) Any owner who does not provide the statement within 30
  674  days after demand, or who provides a false or fraudulent
  675  statement, is not a prevailing party for purposes of an award of
  676  attorney attorney’s fees under s. 713.29. The written demand
  677  must include the following warning in conspicuous type in
  678  substantially the following form:
  679  
  680  WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT WITHIN
  681  30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL RESULT IN
  682  THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY ACTION TO
  683  ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING THIS
  684  STATEMENT.
  685         (6) Any written demand served on the owner must include a
  686  description of the property and the names of the contractor and
  687  the lienor’s customer, as set forth in the lienor’s notice to
  688  owner.
  689         (7)(6) For purposes of this section, the term “information”
  690  means the nature and quantity of the labor, services, and
  691  materials furnished or to be furnished by a lienor and the
  692  amount paid, the amount due, and the amount to become due on the
  693  lienor’s account.
  694         Section 7. Section 713.18, Florida Statutes, is amended to
  695  read:
  696         713.18 Manner of serving notices and other instruments.—
  697         (1) Service of notices, claims of lien, affidavits,
  698  assignments, and other instruments permitted or required under
  699  this part, or copies thereof when so permitted or required,
  700  unless otherwise specifically provided in this part, must be
  701  made by one of the following methods:
  702         (a) By actual delivery to the person to be served; if a
  703  partnership, to one of the partners; if a corporation, to an
  704  officer, director, managing agent, or business agent; or, if a
  705  limited liability company, to a member or manager.
  706         (b) By common carrier delivery service or sending the same
  707  by registered, Global Express Guaranteed, or certified mail,
  708  with postage or shipping paid by the sender and prepaid, or by
  709  overnight or second-day delivery with evidence of delivery,
  710  which may be in an electronic format.
  711         (c) If the method specified in paragraph (a) or paragraph
  712  (b) cannot be accomplished, By posting on the site of the
  713  improvement if service as provided by paragraph (a) or paragraph
  714  (b) cannot be accomplished premises.
  715         (2) Notwithstanding subsection (1), service of if a notice
  716  to owner or, a notice to contractor under s. 713.23, s. 337.18,
  717  or a preliminary notice under s. 255.05 is mailed by registered
  718  or certified mail with postage prepaid to the person to be
  719  served at any of the addresses set forth in subsection (3)
  720  within 40 days after the date the lienor first furnishes labor,
  721  services, or materials, service of that notice is effective as
  722  of the date of mailing if:
  723         (a) The notice is mailed by registered, Global Express
  724  Guaranteed, or certified mail, with postage prepaid, to the
  725  person to be served at any of the addresses set forth in
  726  subsection (3);
  727         (b) The notice is mailed within 40 days after the date the
  728  lienor first furnishes labor, services, or materials; and
  729         (c)1. The person who served the notice maintains a
  730  registered or certified mail log that shows the registered or
  731  certified mail number issued by the United States Postal
  732  Service, the name and address of the person served, and the date
  733  stamp of the United States Postal Service confirming the date of
  734  mailing; or if
  735         2. The person who served the notice maintains electronic
  736  tracking records generated by through use of the United States
  737  Postal Service Confirm service or a similar service containing
  738  the postal tracking number, the name and address of the person
  739  served, and verification of the date of receipt by the United
  740  States Postal Service.
  741         (3)(a)Service of If an instrument served pursuant to this
  742  section is effective on the date of mailing the instrument if
  743  it:
  744         1. Is sent to the last address shown in the notice of
  745  commencement or any amendment thereto or, in the absence of a
  746  notice of commencement, to the last address shown in the
  747  building permit application, or to the last known address of the
  748  person to be served; and, is not received, but
  749         2. Is returned as being “refused,” “moved, not
  750  forwardable,” or “unclaimed,” or is otherwise not delivered or
  751  deliverable through no fault of the person serving the item,
  752  then service is effective on the date the instrument was sent.
  753         (b) If the address shown in the notice of commencement or
  754  any amendment to the notice of commencement, or, in the absence
  755  of a notice of commencement, in the building permit application,
  756  is incomplete for purposes of mailing or delivery, the person
  757  serving the item may complete the address and properly format it
  758  according to United States Postal Service addressing standards
  759  using information obtained from the property appraiser or
  760  another public record without affecting the validity of service
  761  under this section.
  762         (4) A notice served by a lienor on one owner or one partner
  763  of a partnership owning the real property If the real property
  764  is owned by more than one person or a partnership, a lienor may
  765  serve any notices or other papers under this part on any one of
  766  such owners or partners, and such notice is deemed notice to all
  767  owners and partners.
  768         Section 8. Section 713.22, Florida Statutes, is amended to
  769  read:
  770         713.22 Duration of lien.—
  771         (1) A No lien provided by this part does not shall continue
  772  for a longer period than 1 year after the claim of lien has been
  773  recorded or 1 year after the recording of an amended claim of
  774  lien that shows a later date of final furnishing of labor,
  775  services, or materials, unless within that time an action to
  776  enforce the lien is commenced in a court of competent
  777  jurisdiction. A lien that has been continued beyond the 1-year
  778  period The continuation of the lien effected by the commencement
  779  of an the action is shall not enforceable be good against
  780  creditors or subsequent purchasers for a valuable consideration
  781  and without notice, unless a notice of lis pendens is recorded.
  782         (2) An owner or the owner’s agent or attorney may elect to
  783  shorten the time prescribed in subsection (1) within which to
  784  commence an action to enforce any claim of lien or claim against
  785  a bond or other security under s. 713.23 or s. 713.24 by
  786  recording in the clerk’s office a notice in substantially the
  787  following form:
  788  
  789                      NOTICE OF CONTEST OF LIEN                    
  790  To: ...(Name and address of lienor)...
  791  You are notified that the undersigned contests the claim of lien
  792  filed by you on ...., ...(year)..., and recorded in .... Book
  793  ...., Page ...., of the public records of .... County, Florida,
  794  and that the time within which you may file suit to enforce your
  795  lien is limited to 60 days from the date of service of this
  796  notice. This .... day of ...., ...(year)....
  797  Signed: ...(Owner or Attorney)...
  798  
  799  The lien of any lienor upon whom such notice is served and who
  800  fails to institute a suit to enforce his or her lien within 60
  801  days after service of such notice shall be extinguished
  802  automatically. The clerk shall serve, in accordance with s.
  803  713.18, mail a copy of the notice of contest to the lien
  804  claimant at the address shown in the claim of lien or most
  805  recent amendment thereto and shall certify to such service and
  806  the date of service on the face of the such notice and record
  807  the notice. Service shall be deemed complete upon mailing.
  808         Section 9. Paragraphs (c), (d), (e), and (f) of subsection
  809  (1) and subsections (2) and (4) of section 713.23, Florida
  810  Statutes, are amended to read:
  811         713.23 Payment bond.—
  812         (1)
  813         (c) Either Before beginning or within 45 days after
  814  beginning to furnish labor, materials, or supplies, a lienor who
  815  is not in privity with the contractor, except a laborer, shall
  816  serve the contractor with notice in writing that the lienor will
  817  look to the contractor’s bond for protection on the work. If a
  818  notice of commencement with the attached bond is not recorded
  819  before commencement of construction, or a reference to the bond
  820  is not given in the notice of commencement, and in either case
  821  if the lienor not in privity with the contractor is not
  822  otherwise notified in writing of the existence of the bond, the
  823  lienor not in privity with the contractor may, in the
  824  alternative, elect to serve the notice to the contractor up to
  825  shall have 45 days after from the date the lienor is served with
  826  a copy notified of the existence of the bond within which to
  827  serve the notice. A notice to owner pursuant to s. 713.06 which
  828  has been timely served on the contractor satisfies the
  829  requirements of this paragraph. In no event, however, shall the
  830  limitation period for commencement of an action on the payment
  831  bond as established in paragraph (e) be expanded. The notice may
  832  be in substantially the following form and may be combined with
  833  a notice to owner given under s. 713.06 and, if so, may be
  834  entitled “NOTICE TO OWNER/NOTICE TO CONTRACTOR:
  835  
  836  
  837                        NOTICE TO CONTRACTOR                       
  838  
  839  To ...(name and address of contractor)...
  840  
  841  The undersigned hereby informs you that he or she has furnished
  842  or is furnishing services or materials as follows:
  843  
  844  ...(general description of services or materials)... for the
  845  improvement of the real property identified as ...(property
  846  description)... under an order given by ...(lienor’s
  847  customer)....
  848  
  849  This notice is to inform you that the undersigned intends to
  850  look to the contractor’s bond to secure payment for the
  851  furnishing of materials or services for the improvement of the
  852  real property.
  853  
  854         ...(name of lienor)...
  855         ...(signature of lienor or lienor’s representative)...
  856         ...(date)...
  857         ...(lienor’s address)...
  858  
  859  The undersigned notifies you that he or she has furnished or is
  860  furnishing ...(services or materials)... for the improvement of
  861  the real property identified as ...(property description)...
  862  owned by ...(owner’s name and address)... under an order given
  863  by .... and that the undersigned will look to the contractor’s
  864  bond for protection on the work.
  865  
  866  ...(Lienor’s signature and address)...
  867  
  868         (d) In addition, a lienor is required, as a condition
  869  precedent to recovery under the bond, to serve a written notice
  870  of nonpayment to the contractor and the surety not later than 90
  871  days after the final furnishing of labor, services, or materials
  872  by the lienor. A written notice satisfies this condition
  873  precedent with respect to the payment described in the notice of
  874  nonpayment, including unpaid finance charges due under the
  875  lienor’s contract, and with respect to any other payments which
  876  become due to the lienor after the date of the notice of
  877  nonpayment. The time period for serving a written notice of
  878  nonpayment shall be measured from the last day of furnishing
  879  labor, services, or materials by the lienor and shall not be
  880  measured by other standards, such as the issuance of a
  881  certificate of occupancy or the issuance of a certificate of
  882  substantial completion. The failure of a lienor to receive
  883  retainage sums not in excess of 10 percent of the value of
  884  labor, services, or materials furnished by the lienor is not
  885  considered a nonpayment requiring the service of the notice
  886  provided under this paragraph. If the payment bond is not
  887  recorded before commencement of construction, the time period
  888  for the lienor to serve a notice of nonpayment may at the option
  889  of the lienor be calculated from the date specified in this
  890  section or the date the lienor is served a copy of the bond.
  891  However, the limitation period for commencement of an action on
  892  the payment bond as established in paragraph (e) may not be
  893  expanded. The notice under this paragraph may be in
  894  substantially the following form:
  895  
  896                        NOTICE OF NONPAYMENT                       
  897  
  898  To ...(name of contractor and address)...
  899  
  900  ...(name of surety and address)...
  901  
  902  The undersigned notifies you that he or she has furnished
  903  ...(describe labor, services, or materials)... for the
  904  improvement of the real property identified as ...(property
  905  description).... The amount now due and unpaid is $.....
  906  
  907  ...(signature and address of lienor)...
  908  
  909         (e) An No action for the labor or materials or supplies may
  910  not be instituted or prosecuted against the contractor or surety
  911  unless both notices have been given, if required by this
  912  section. An No action may not shall be instituted or prosecuted
  913  against the contractor or against the surety on the bond under
  914  this section after 1 year from the performance of the labor or
  915  completion of delivery of the materials and supplies. The time
  916  period for bringing an action against the contractor or surety
  917  on the bond shall be measured from the last day of furnishing
  918  labor, services, or materials by the lienor. The time period and
  919  may shall not be measured by other standards, such as the
  920  issuance of a certificate of occupancy or the issuance of a
  921  certificate of substantial completion. A contractor or the
  922  contractor’s agent or attorney may elect to shorten the
  923  prescribed time within which an action to enforce any claim
  924  against a payment bond provided under this section or s. 713.245
  925  must may be commenced at any time after a notice of nonpayment,
  926  if required, has been served for the claim by recording in the
  927  clerk’s office a notice in substantially the following form:
  928  
  929                     NOTICE OF CONTEST OF CLAIM                    
  930                        AGAINST PAYMENT BOND                       
  931  
  932  To: ...(Name and address of lienor)...
  933         You are notified that the undersigned contests your notice
  934  of nonpayment, dated ...., ...., and served on the undersigned
  935  on ...., ...., and that the time within which you may file suit
  936  to enforce your claim is limited to 60 days from the date of
  937  service of this notice.
  938  
  939  DATED on ...., .....
  940  
  941  Signed: ...(Contractor or Attorney)...
  942  
  943  The claim of any lienor upon whom the notice is served and who
  944  fails to institute a suit to enforce his or her claim against
  945  the payment bond within 60 days after service of the notice
  946  shall be extinguished automatically. The contractor or the
  947  contractor’s attorney clerk shall serve mail a copy of the
  948  notice of contest to the lienor at the address shown in the
  949  notice of nonpayment or most recent amendment thereto and shall
  950  certify to such service on the face of the notice and record the
  951  notice. Service is complete upon mailing.
  952         (f) A Any lienor has a direct right of action on the bond
  953  against the surety. Any provision in a payment bond which
  954  further restricts A bond must not contain any provisions
  955  restricting the classes of persons who are protected by the
  956  payment bond, which restricts thereby or the venue of any
  957  proceeding relating to such payment bond, which limits or
  958  expands the effective duration of the payment bond, or which
  959  adds conditions precedent to the enforcement of a claim against
  960  a payment bond beyond those provided in this part is
  961  unenforceable. The surety is not entitled to the defense of pro
  962  tanto discharge as against any lienor because of changes or
  963  modifications in the contract to which the surety is not a
  964  party; but the liability of the surety may not be increased
  965  beyond the penal sum of the bond. A lienor may not waive in
  966  advance his or her right to bring an action under the bond
  967  against the surety.
  968         (2) The bond shall secure every lien under the direct
  969  contract accruing subsequent to its execution and delivery,
  970  except that of the contractor. Every claim of lien, except that
  971  of the contractor, filed subsequent to execution and delivery of
  972  the bond shall be transferred to it with the same effect as
  973  liens transferred under s. 713.24. Record notice of the transfer
  974  shall be effected by the contractor, or any person having an
  975  interest in the property against which the claim of lien has
  976  been asserted, by recording in the clerk’s office a notice, with
  977  the bond attached, in substantially the following form:
  978  
  979                           NOTICE OF BOND                          
  980  
  981  To ...(Name and Address of Lienor)...
  982  
  983  You are notified that the claim of lien filed by you on ....,
  984  ...., and recorded in Official Records Book .... at page .... of
  985  the public records of .... County, Florida, is secured by a
  986  bond, a copy being attached.
  987  
  988  Signed: ...(Name of person recording notice)...
  989  
  990  The notice shall be verified. The person recording the notice of
  991  bond clerk shall serve mail a copy of the notice with a copy of
  992  the bond to the lienor at the address shown in the claim of
  993  lien, or the most recent amendment to it; shall certify to the
  994  service on the face of the notice; and shall record the notice.
  995  The clerk shall receive the same fee as prescribed in s.
  996  713.24(1) for certifying to a transfer of lien.
  997         (4) The provisions of s. 713.24(3) shall apply to bonds
  998  under this section except when those provisions conflict with
  999  this section.
 1000         Section 10. This act shall take effect October 1, 2012.
 1001  
 1002  ================= T I T L E  A M E N D M E N T ================
 1003         And the title is amended as follows:
 1004         Delete everything before the enacting clause
 1005  and insert:
 1006                        A bill to be entitled                      
 1007         An act relating to construction liens and bonds;
 1008         amending s. 95.11, F.S.; adding a cross-reference;
 1009         deleting a provision for the limitation of actions
 1010         against a bond; amending s. 255.05, F.S.; requiring
 1011         that the bond number be stated on the first page of
 1012         the bond; providing that a provision in a payment bond
 1013         furnished for a public works contract that limits or
 1014         expands the effective duration of the bond or adds
 1015         conditions precedent is unenforceable; requiring a
 1016         contractor, or the contractor’s attorney, to serve
 1017         rather than mail a notice of contest of claim against
 1018         the payment bond; providing additional time for
 1019         service when the bond is not recorded; specifying the
 1020         duration of the bond; providing that payment to a
 1021         contractor who has furnished a payment bond on a
 1022         public works project may not be conditioned upon
 1023         production of certain documents; providing
 1024         prerequisites for commencement of an action against a
 1025         payment bond; amending s. 713.10, F.S.; providing that
 1026         a specified notice concerning a lessor’s liability for
 1027         liens for improvements made by the lessee prohibits
 1028         liens even if other leases do not expressly prohibit
 1029         liens or if certain other provisions are not
 1030         identical; amending s. 713.13, F.S.; providing
 1031         additional time for service when a notice of
 1032         commencement is not recorded with a copy of the bond
 1033         attached; amending s. 713.132, F.S.; requiring notice
 1034         of termination to be served on lienors in privity with
 1035         the owner; amending s. 713.16, F.S.; revising
 1036         requirements for demands for a copy of a construction
 1037         contract and a statement of account; authorizing a
 1038         lienor to make certain written demands to an owner for
 1039         certain written statements; providing requirements for
 1040         such written demands; amending s. 713.18, F.S.;
 1041         providing additional methods by which certain items
 1042         may be served; revising provisions relating to when
 1043         service of specified items is effective; specifying
 1044         requirements for certain written instruments under
 1045         certain circumstances; amending s. 713.22, F.S.;
 1046         requiring that the clerk serve rather than mail a
 1047         notice of contest of lien; amending s. 713.23, F.S.;
 1048         revising the contents of a notice to contractor;
 1049         requiring that a contractor serve rather than mail a
 1050         notice of contest of claim against the payment bond
 1051         and a notice of bond; clarifying the attachment of the
 1052         bond to the notice; providing that a provision in a
 1053         payment bond that limits or expands the effective
 1054         duration of the bond or adds conditions precedent is
 1055         unenforceable; clarifying applicability of certain
 1056         provisions; providing an effective date.