Senate Bill 1284

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    Florida Senate - 1999                                  SB 1284

    By Senator Dyer





    14-659-99

  1                      A bill to be entitled

  2         An act relating to contracting; creating s.

  3         489.13, F.S.; providing for disciplinary

  4         procedures involving a lien or judgment against

  5         construction contractors; creating s. 489.5334,

  6         F.S.; providing disciplinary procedures

  7         involving a lien or judgment against electrical

  8         and alarm system contractors; creating s.

  9         489.5591, F.S.; providing applicability for

10         disciplinary proceedings involving

11         mismanagement or misconduct that causes

12         financial harm to a customer; providing an

13         effective date.

14

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

16

17         Section 1.  Section 489.13, Florida Statutes, is

18  created to read:

19         489.13  Disciplinary proceedings involving a lien or

20  judgment.--

21         (1)  Notwithstanding any other provision of this part

22  or chapter 455, this section applies to any disciplinary case

23  that involves a violation of s. 489.129(1)(h)1. or that

24  involves any contractor who has an unsatisfied judgment

25  against him or her in connection with the practice of his or

26  her profession.

27         (2)  The department shall initiate disciplinary

28  proceedings involving a construction lien when a lienor files

29  with the department:

30         (a)  A complaint on a form prescribed by the board;

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    Florida Senate - 1999                                  SB 1284
    14-659-99




  1         (b)  A certified copy of the recorded construction

  2  lien; and

  3         (c)  An affidavit signed under oath which states that

  4  the construction lien is for labor, services, or materials

  5  furnished to the contractor and that, to the best knowledge of

  6  the lienor, the contractor has been paid for the lienor's

  7  labor, services, or materials.

  8         (3)  The department shall initiate disciplinary

  9  proceedings involving an unsatisfied judgment against a

10  contractor when a judgment creditor files with the department:

11         (a)  A complaint on a form prescribed by the board;

12         (b)  A certified copy of the recorded judgment; and

13         (c)  An affidavit signed under oath which states that

14  the judgment arises from the practice of the judgment debtor's

15  profession licensed under this part.

16         (4)  Within 10 days after the date the department

17  receives a completed complaint, certified copies of the lien

18  or judgment, and the required affidavit, the department shall

19  issue and serve on the contractor an order that requires the

20  contractor to show cause why his or her license should not be

21  suspended until the lien or judgment is satisfied. The order

22  to show cause shall require the contractor to respond in

23  writing under oath within 20 days after the date the order is

24  served on the contractor.

25         (5)  If the contractor fails to respond under oath to

26  the order to show cause within the 20-day period, the board

27  shall immediately enter a final order suspending the

28  contractor's license until the contractor satisfies the lien

29  or judgment and pays the department the costs incurred in

30  connection with processing the complaint.

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    Florida Senate - 1999                                  SB 1284
    14-659-99




  1         (6)  If the contractor responds under oath to the order

  2  to show cause within the 20-day period, a copy of the response

  3  shall be provided to the lienor or judgment creditor.  The

  4  lienor shall have 20 days within which to file a written reply

  5  under oath to the contractor's written statement.

  6         (7)  The department shall forward the complaint, the

  7  contractor's response, and the complainant's reply to the

  8  board. The board shall determine whether the contractor is in

  9  violation of s. 489.129(1)(h). If the board finds that a

10  violation has occurred, the board shall suspend the

11  contractor's license until the lien or judgment has been

12  satisfied and the contractor reimburses the board for the

13  costs incurred in connection with processing the complaint.

14  The board may impose such other penalties as it considers

15  appropriate, consistent with its penalty guidelines.

16         (8)  The contractor may request a hearing on the

17  complaint if genuine issues of material fact exist concerning

18  the elements of the violation.  If the board finds that

19  genuine issues of material fact exist, it may conduct the

20  hearing or refer the complaint to the Division of

21  Administrative Hearings.

22         Section 2.  Section 489.5334, Florida Statutes, is

23  created to read:

24         489.5334  Disciplinary proceedings involving a lien or

25  judgment.--

26         (1)  Notwithstanding any other provision of this part

27  or any provision of chapter 455, this section applies to any

28  disciplinary case that involves a violation of s.

29  489.533(1)(m)1. or that involves any contractor who has an

30  unsatisfied judgment against him or her in connection with the

31  practice of his or her profession.

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    Florida Senate - 1999                                  SB 1284
    14-659-99




  1         (2)  The department shall initiate disciplinary

  2  proceedings involving a construction lien when a lienor files

  3  with the department:

  4         (a)  A complaint on a form prescribed by the board;

  5         (b)  A certified copy of the recorded construction

  6  lien; and

  7         (c)  An affidavit signed under oath which states that

  8  the construction lien is for labor, services, or materials

  9  furnished to the contractor and that, to the best knowledge of

10  the lienor, the contractor has been paid for the lienor's

11  labor, services, or materials.

12         (3)  The department shall initiate disciplinary

13  proceedings involving an unsatisfied judgment against a

14  contractor when the judgment creditor files with the

15  department:

16         (a)  A complaint on a form prescribed by the board;

17         (b)  A certified copy of the recorded judgment; and

18         (c)  An affidavit signed under oath which states that

19  the judgment arises from the practice of the judgment debtor's

20  profession licensed under this part.

21         (4)  Within 10 days after the date the department

22  receives a completed complaint, certified copies of the lien

23  or judgment, and the required affidavit, the department shall

24  issue and serve on the contractor an order that requires the

25  contractor to show cause why his or her license should not be

26  suspended until the lien or judgment is satisfied. The order

27  to show cause shall require the contractor to respond in

28  writing under oath within 20 days after the date the order is

29  served on the contractor.

30         (5)  If the contractor fails to respond under oath to

31  the order to show cause within the 20-day period, the board

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    Florida Senate - 1999                                  SB 1284
    14-659-99




  1  shall immediately enter a final order suspending the

  2  contractor's license until the contractor satisfies the lien

  3  or judgment and pays the department the costs incurred in

  4  connection with processing the complaint.

  5         (6)  If the contractor responds under oath to the order

  6  to show cause within the 20-day period, a copy of the response

  7  shall be provided to the lienor or judgment creditor.  The

  8  lienor shall have 20 days within which to file a written reply

  9  under oath to the contractor's written statement.

10         (7)  The department shall forward the complaint, the

11  contractor's response, and the complainant's reply to the

12  board.  The board shall determine whether the contractor is in

13  violation of s. 489.533(1)(m)1. or s. 489.533(1)(m)4. If the

14  board finds that a violation has occurred, the board shall

15  suspend the contractor's license until the lien or judgment

16  has been satisfied and the contractor reimburses the board for

17  the costs incurred in connection with processing the

18  complaint.  The board may impose such other penalties as it

19  considers appropriate, consistent with its penalty guidelines.

20         (8)  The contractor may request a hearing on the

21  complaint if genuine issues of material fact exist concerning

22  the elements of the violation.  If the board finds that

23  genuine issues of material fact exist, it may conduct the

24  hearing or refer the complaint to the Division of

25  Administrative Hearings.

26         (9)  As used in this part, the term "contractor" refers

27  to any person licensed under chapter 489, part II, regardless

28  of whether that person is performing as a contractor, a

29  subcontractor, or a sub-subcontractor on a project.

30         Section 3.  Section 489.5591, Florida Statutes, is

31  created to read:

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    Florida Senate - 1999                                  SB 1284
    14-659-99




  1         489.5591  Disciplinary proceedings involving a lien or

  2  judgment.--Any person licensed under this part is subject to

  3  disciplinary action for any violation of s. 489.129(1)(h) and

  4  is subject to the disciplinary proceedings set out in s.

  5  489.13.

  6         Section 4.  This act shall take effect July 1, 1999.

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  9                          SENATE SUMMARY

10    Establishes certain disciplinary procedures for
      construction contractors and electrical and alarm system
11    contractors. (See bill for details.)

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