HOUSE AMENDMENT
                                                   Bill No. HB 613   Barcode 132749
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
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11  The Committee on State Administration offered the following:
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13         Amendment (with title amendment) 
14         On page 4, line 31 through page 15, line 17,
15  remove from the bill:  all of said lines
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17  and insert in lieu thereof:  bond for protection.  If the
18  claimant serves the notice before, or not later than 45 days
19  after, commencing to furnish labor, services, or materials, a
20  claim against the bond may include amounts unpaid to the
21  claimant for all labor, services, or materials furnished on
22  the project and any unpaid finance charges due under the
23  claimant's contract.  If the claimant serves the notice later
24  than 45 days after commencing to furnish labor, services, or
25  materials, the claimant's claim against the bond may only
26  include amounts unpaid for labor, services or materials
27  furnished on the project on or after the date the notice is
28  mailed or otherwise served in accordance with s. 713.18 and
29  any unpaid finance charges due under the claimant's contract
30  for such labor, services, or materials.  A notice served on a
31  contractor later than 45 days after commencing to furnish
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    File original & 9 copies    03/29/01                          
    hsa0005                     03:43 pm         00613-sa  -132749

HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 labor, services, or materials, must be accompanied by a sworn 2 statement of account as defined in s. 713.16(3). A claimant 3 who is not in privity with the contractor and who has not 4 received payment for his or her labor, materials, or supplies 5 shall deliver to the contractor and to the surety written 6 notice of the performance of the labor or delivery of the 7 materials or supplies and of the nonpayment. The notice of 8 nonpayment may be served at any time during the progress of 9 the work or thereafter but not before 45 days after the first 10 furnishing of labor, services, or materials, and not later 11 than 90 days after the final furnishing of the labor, 12 services, or materials by the claimant or, with respect to 13 rental equipment, not later than 90 days after the date that 14 the rental equipment was last on the job site available for 15 use. No action for the labor, materials, or supplies may be 16 instituted against the contractor or the surety unless both 17 notices have been given. Notices required or permitted under 18 this section may be served in accordance with s. 713.18. An 19 action, except for an action exclusively for recovery of 20 retainage, must be instituted against the contractor or the 21 surety on the payment bond or the payment provisions of a 22 combined payment and performance bond within 1 year after the 23 performance of the labor or completion of delivery of the 24 materials or supplies. An action exclusively for recovery of 25 retainage must be instituted against the contractor or the 26 surety within 1 year after the performance of the labor or 27 completion of delivery of the materials or supplies, or within 28 90 days after the contractor's receipt of final payment (or 29 the payment estimate containing the owner's final 30 reconciliation of quantities if no further payment is earned 31 and due as a result of deductive adjustments) by the 2 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 contractor or surety, whichever comes last. A claimant may not 2 waive in advance his or her right to bring an action under the 3 bond against the surety. In any action brought to enforce a 4 claim against a payment bond under this section, the 5 prevailing party is entitled to recover a reasonable fee for 6 the services of his or her attorney for trial and appeal or 7 for arbitration, in an amount to be determined by the court, 8 which fee must be taxed as part of the prevailing party's 9 costs, as allowed in equitable actions. The time periods for 10 service of a notice of nonpayment or for bringing an action 11 against a contractor or a surety shall be measured from the 12 last day of furnishing labor, services, or materials by the 13 claimant and shall not be measured by other standards, such as 14 the issuance of a certificate of occupancy or the issuance of 15 a certificate of substantial completion. 16 (3) The bond required in subsection (1) shall may be 17 in substantially the following form: 18 19 PUBLIC CONSTRUCTION BOND 20 21 BY THIS BOND, We ...., as Principal and ...., a 22 corporation, as Surety, are bound to ...., herein called 23 Owner, in the sum of $...., for payment of which we bind 24 ourselves, our heirs, personal representatives, successors, 25 and assigns, jointly and severally. 26 THE CONDITION OF THIS BOND is that if Principal: 27 1. Performs the contract dated ...., ...., between 28 Principal and Owner for construction of ...., the contract 29 being made a part of this bond by reference, at the times and 30 in the manner prescribed in the contract; and 31 2. Promptly makes payments to all claimants, as 3 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 defined in Section 255.05(1), Florida Statutes, supplying 2 Principal with labor, materials, or supplies, used directly or 3 indirectly by Principal in the prosecution of the work 4 provided for in the contract; and 5 3. Pays Owner all losses, damages, expenses, costs, 6 and attorney's fees, including appellate proceedings, that 7 Owner sustains because of a default by Principal under the 8 contract; and 9 4. Performs the guarantee of all work and materials 10 furnished under the contract for the time specified in the 11 contract, then this bond is void; otherwise it remains in full 12 force. 13 Any changes in or under the contract documents and 14 compliance or noncompliance with any formalities connected 15 with the contract or the changes does not affect Surety's 16 obligation under this bond. 17 18 DATED ON ...., ..... 19 ...(Name of Principal)... 20 By ...(As Attorney in Fact)... 21 ...(Name of Surety)... 22 23 Section 2. Paragraph (a) of subsection (2) and 24 paragraph (h) of subsection (3) of section 713.06, Florida 25 Statutes, are amended to read: 26 713.06 Liens of persons not in privity; proper 27 payments.-- 28 (2)(a) All lienors under this section, except 29 laborers, as a prerequisite to perfecting a lien under this 30 chapter and recording a claim of lien, must serve a notice on 31 the owner setting forth the lienor's name and address, a 4 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 description sufficient for identification of the real 2 property, and the nature of the services or materials 3 furnished or to be furnished. A sub-subcontractor or a 4 materialman to a subcontractor must serve a copy of the notice 5 on the contractor as a prerequisite to perfecting a lien under 6 this chapter and recording a claim of lien. A materialman to a 7 sub-subcontractor must serve a copy of the notice to owner on 8 the contractor as a prerequisite to perfecting a lien under 9 this chapter and recording a claim of lien. A materialman to a 10 sub-subcontractor shall serve the notice to owner on the 11 subcontractor if the materialman knows the name and address of 12 the subcontractor. If the lienor serves the notice before, or 13 not later than 45 days after, commencing to furnish labor, 14 services, or materials, the lienor's claim of lien may include 15 amounts unpaid to the lienor for all labor, services, or 16 materials furnished on the project and any unpaid finance 17 charges due under the lienor's contract. If the lienor serves 18 the notice later than 45 days after commencing to furnish 19 labor, services, or materials, the lienor's claim of lien may 20 only include amounts unpaid for labor, services or materials 21 furnished on the project on or after the date the notice is 22 mailed or otherwise served in accordance with s. 713.18 and 23 any unpaid finance charges due under the lienor's contract for 24 such labor, services, or materials. A notice served on an 25 owner or contractor later than 45 days after commencing to 26 furnish labor, services, or materials, must be accompanied by 27 a sworn statement of account as defined in s. 713.16(3). The 28 notice must be served before commencing, or not later than 45 29 days after commencing, to furnish his or her labor, services, 30 or materials, but, In any event, the notice shall be served 31 before the date of the owner's disbursement of the final 5 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 payment after the contractor has furnished the affidavit under 2 subparagraph (3)(d)1. The notice must be served regardless of 3 the method of payments by the owner, whether proper or 4 improper, and does not give to the lienor serving the notice 5 any priority over other lienors in the same category; and the 6 failure to serve the notice, or to timely serve it, is a 7 complete defense to enforcement of a lien by any person. The 8 serving of the notice does not dispense with recording the 9 claim of lien. The notice is not a lien, cloud, or encumbrance 10 on the real property nor actual or constructive notice of any 11 of them. 12 (3) The owner may make proper payments on the direct 13 contract as to lienors under this section, in the following 14 manner: 15 (h) When the owner has properly retained all sums 16 required in this section to be retained but has otherwise made 17 improper payments, the owner's real property shall be liable 18 to all laborers, subcontractors, sub-subcontractors, and 19 materialmen complying with this chapter only to the extent of 20 the retentions and the improper payments, notwithstanding the 21 other provisions of this subsection. Any money paid by the 22 owner on a direct contract, the payment of which is proved to 23 have caused no detriment to any certain lienor, shall be held 24 properly paid as to the lienor, and if any of the money shall 25 be held not properly paid as to any other lienors, the entire 26 benefit of its being held not properly paid as to them shall 27 go to the lienors. An owner is not entitled to a proper 28 payment defense to the extent of improper payments made by the 29 owner at any time during the project. 30 Section 3. Section 713.18, Florida Statutes, is 31 amended to read: 6 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 713.18 Manner of serving notices and other 2 instruments.-- 3 (1) Service of notices, claims of lien, affidavits, 4 assignments, and other instruments permitted or required under 5 this part, or copies thereof when so permitted or required, 6 unless otherwise specifically provided in this part, must be 7 made by one of the following methods: 8 (a) By actual delivery to the person to be served; or, 9 if a partnership, to one of the partners; or, if a 10 corporation, to an officer, director, managing agent, or 11 business agent thereof. 12 (b) By sending mailing the same, postage prepaid, by 13 registered or certified mail, with postage prepaid, or by 14 overnight or second-day delivery with to the person to be 15 served at her or his last known address and evidence of 16 delivery. 17 1. If a notice to owner, or a notice to contractor 18 under s. 713.23, or a preliminary notice under s. 255.05 is 19 mailed by registered or certified mail with postage prepaid to 20 the person to be served at any of the addresses set forth in 21 subparagraph 2. pursuant to this paragraph within 40 days 22 after the date the lienor first furnishes labor, services, or 23 materials, service of that notice is effective as of the date 24 of mailing if the person who served the notice maintains a 25 registered or certified mail log that shows the date the 26 notice was served, the registered or certified mail number 27 issued by the United States Postal Service, the name and 28 address of the person served, and the date stamp of the United 29 States Postal Service confirming the date of mailing. 30 2. If an instrument served pursuant to this section 31 paragraph to the last address shown in the notice of 7 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 commencement or any amendment thereto or, in the absence of a 2 notice of commencement, to the last address shown in the 3 building permit application, or to the last known address of 4 the person to be served, is not received, but is returned by 5 the United States Postal Service as being "refused," "moved, 6 not forwardable," or "unclaimed," or is otherwise not 7 delivered or deliverable through no fault of the person 8 serving the item, then service is effective on the date the 9 notice was sent; as of the date of mailing. 10 (c) By facsimile transmission if the person being 11 served has listed that person's facsimile phone number in the 12 notice of commencement. The lienor's facsimile confirmation 13 sheet with the correct facsimile phone number shall be proof 14 of the date and time the notice was served; or 15 (d)(c) If none neither of the foregoing methods can be 16 accomplished, by posting on the premises. 17 (2) If the real property is owned by more than one 18 person or a partnership, a lienor may serve any notices or 19 other papers under this part on any one of such owners or 20 partners, and such notice is deemed notice to all owners and 21 partners. 22 (3) Service of notices or copies thereof, permitted or 23 required under this part, may be made by facsimile 24 transmission when the person being served has listed that 25 person's facsimile phone number in the Notice of Commencement. 26 The lienor's facsimile confirmation sheet with the correct 27 facsimile phone number shall be proof of the date and time the 28 notice was served. 29 Section 4. Subsection (1) of section 713.245, Florida 30 Statutes, is amended to read: 31 713.245 Conditional payment bond.-- 8 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 (1) Notwithstanding any provisions of ss. 713.23 and 2 713.24 to the contrary, if the contractor's written 3 contractual obligation to pay lienors is expressly conditioned 4 upon and limited to the payments made by the owner to the 5 contractor, the duty of the surety to pay lienors will be 6 coextensive with the duty of the contractor to pay, if the 7 following provisions are complied with: 8 (a) The bond is listed in the Notice of Commencement 9 for the project as a Conditional Payment Bond and is recorded 10 along with the Notice of Commencement for the project, prior 11 to commencement of the project. 12 (b) The words "Conditional Payment Bond" are contained 13 in the title of the bond at the top of the front page; and 14 (c) The the bond contains on the front page, in at 15 least 10-point type, the statement: THIS BOND ONLY COVERS 16 CLAIMS OF SUBCONTRACTORS, SUB-SUBCONTRACTORS, SUPPLIERS, AND 17 LABORERS TO THE EXTENT THE CONTRACTOR HAS BEEN PAID FOR THE 18 LABOR, SERVICES, OR MATERIALS PROVIDED BY SUCH PERSONS. THIS 19 BOND DOES NOT PRECLUDE YOU FROM SERVING A NOTICE TO OWNER OR 20 FILING A CLAIM OF LIEN ON THIS PROJECT. 21 Section 5. Subsection (2) and paragraph (e) of 22 subsection (5) of section 95.11, Florida Statutes, are amended 23 to read: 24 95.11 Limitations other than for the recovery of real 25 property.--Actions other than for recovery of real property 26 shall be commenced as follows: 27 (2) WITHIN FIVE YEARS.-- 28 (a) An action on a judgment or decree of any court, 29 not of record, of this state or any court of the United 30 States, any other state or territory in the United States, or 31 a foreign country. 9 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 (b) A legal or equitable action on a contract, 2 obligation, or liability founded on a written instrument 3 except for an action to enforce a claim against a payment 4 bond, which shall be governed by the applicable provisions of 5 s. 255.05(2)(a)2 and s. 713.23(1)(e). 6 (c) An action to foreclose a mortgage. 7 (5) WITHIN ONE YEAR.-- 8 (e) An action to enforce any claim against a payment 9 bond on which the principal is a contractor, subcontractor or 10 sub-subcontractor as defined in s. 713.01, for private work as 11 well as public work, from the last furnishing of labor, 12 services, or materials or from the last furnishing of labor, 13 services, or materials by the general contractor if the 14 general contractor is the principal on a bond on the same 15 construction project, whichever is later. 16 Section 6. This act shall take effect July 1, 2001. 17 18 19 ================ T I T L E A M E N D M E N T =============== 20 And the title is amended as follows: 21 On page 1, lines 6 through 18, 22 remove from the title of the bill: all of said lines 23 24 and insert in lieu thereof: 25 requiring use of the statutory form; amending 26 s. 713.06, F.S.; clarifying provisions relating 27 to notice of claim against a lien; amending s. 28 713.18, F.S.; revising provisions relating to 29 manner of serving notices and certain 30 instruments; amending s. 713.23, F.S.; 31 including certain unpaid finance charges under 10 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749
HOUSE AMENDMENT Bill No. HB 613 Barcode 132749 Amendment No. ___ (for drafter's use only) 1 a written notice of nonpayment of a payment 2 bond; correcting a cross reference, to conform; 3 amending s. 713.245, F.S., relating to 4 conditional payment bonds; amending s. 95.11, 5 F.S., to add cross-references regarding 6 statutes of limitations for bond claims; 7 clarifiying statute regarding contractor's 8 bonds; providing an 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 11 File original & 9 copies 03/29/01 hsa0005 03:43 pm 00613-sa -132749