CODING: Words stricken are deletions; words underlined are additions.
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
  1                                .
                                   .
  2                                .
                                   .
  3                                .
                                   .
  4  ______________________________________________________________
  5                                           ORIGINAL STAMP BELOW
  6
  7
  8
  9
10  ______________________________________________________________
11  Representative(s) Smith offered the following:
12
13         Amendment (with title amendment) 
14  Remove everything after the enacting clause
15
16  and insert:
17         Section 1.  Subsection (9) is added to section 199.185,
18  Florida Statutes, to read:
19         199.185  Property exempted from annual and
20  non-recurring taxes.--
21         (9)(a)  Mortgages and liens recorded to secure the
22  performance of an indemnitor to a surety by insurance
23  companies licensed in the State of Florida that issue surety
24  are exempt from this chapter at the time of recording the
25  mortgage or lien. The clerk of the court shall accept such
26  recordings at the time of submittal and such mortgage or lien
27  shall have a priority as of the date of recording over any
28  subsequent filings by other parties notwithstanding that the
29  enforcement of the recorded mortgage or lien on the indemnity
30  may come subsequent to the later recording and any action
31  against the indemnitor affecting said mortgage or lien shall
                                  1
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
  1  provide notice to the insurance company.
  2         (b)  Upon exercise of the rights under the mortgage or
  3  lien, all applicable taxes due pursuant to this chapter shall
  4  become due and payable as if the mortgage or lien were
  5  initially executed and recorded without this exemption.
  6         (c)  Failure to pay tax at time of exercise shall not
  7  affect the mortgage or lien, but any person who willfully
  8  violates or fails to comply with this subsection is subject to
  9  the penalties set forth in s. 199.282.
10         Section 2.  Subsection (5) is added to section 201.23,
11  Florida Statutes, to read:
12         201.23  Foreign notes and other written obligations
13  exempt.--
14         (5)  Mortgages and liens recorded to secure the
15  performance of an indemnitor to a surety by insurance
16  companies licensed in this state which issue surety are exempt
17  from this chapter at the time of recording the mortgage or
18  lien. The clerk of the court shall accept such recordings at
19  the time of submittal, and such mortgage or lien shall have a
20  priority as of the date of recording over any subsequent
21  filings by other parties, notwithstanding that the enforcement
22  of the recorded mortgage or lien on the indemnity may occur
23  after the later recording and any action against the
24  indemnitor affecting the mortgage or lien provides notice to
25  the insurance company. Upon exercise of the rights under the
26  mortgage or lien, all applicable taxes due pursuant to this
27  chapter shall become due and payable as if the mortgage or
28  lien were initially executed and recorded without this
29  exception. Failure to pay any tax at time of exercise shall
30  not affect the mortgage or lien, but any person who willfully
31  fails or refuses to pay tax due under this subsection commits
                                  2
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
  1  a misdemeanor of the first degree, punishable as provided in
  2  s. 775.082 or s. 775.083.
  3         Section 3.  Section 210.08, Florida Statutes, is
  4  amended to read:
  5         210.08  Bond for payment of taxes.--Each dealer, agent,
  6  or distributing agent shall file with the division a surety
  7  bond, certificate of deposit, or irrevocable letter of credit
  8  acceptable to the division in the sum of $10,000 as surety for
  9  the payment of all taxes; provided, however, that where in the
10  discretion of the division the amount of business done by the
11  dealer, agent, or distributing agent is of such volume that a
12  bond, certificate of deposit, or irrevocable letter of credit
13  of less than $10,000 will be adequate to secure the payment of
14  all taxes assessed as authorized by the cigarette tax law, the
15  division may accept a bond, certificate of deposit, or
16  irrevocable letter of credit in a lesser sum than $10,000, but
17  in no event shall it accept a bond, certificate of deposit, or
18  irrevocable letter of credit of less than $1,000, and it may
19  at any time in its discretion require any bond, certificate of
20  deposit, or irrevocable letter of credit in an amount less
21  than $10,000 to be increased not to exceed $10,000.
22         Section 4.  Subsection (3) of section 255.05, Florida
23  Statutes, is amended to read:
24         255.05  Bond of contractor constructing public
25  buildings; form; action by materialmen.--
26         (3)  The bond required in subsection (1) shall be in
27  the following form, and any deviation of the bond required by
28  the public owner or furnished by the contractor shall be
29  disregarded may be in substantially the following form:
30
31                     PUBLIC CONSTRUCTION BOND
                                  3
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
  1
  2         BY THIS BOND, We ....{enter name principal business
  3  address, and telephone number of contractor}, as Principal and
  4  {enter name, principal business address, and telephone number
  5  of surety}...., a corporation, authorized to do business in
  6  Florida as a surety insurer, as Surety, are bound to ....
  7  {enter name, principal business address, and telephone number
  8  of public owner}, herein called Owner, in the sum of
  9  $....{enter contract amount as penal sum of bond}, for payment
10  of which we bind ourselves, our heirs, personal
11  representatives, successors, and assigns, jointly and
12  severally.
13
14         WHEREAS, Principal has entered into a contract with
15  Owner for ....{enter description of project sufficient to
16  identify it such as a legal description of property, the
17  street address of property, and a general description of the
18  improvement to be constructed}, which is Owner's Contract No.
19  ....{enter contract number} belonging to ....{enter name,
20  principal business address, and telephone number of owner of
21  property if different from the contract public entity}
22  (hereinafter the Project); and
23
24         WHEREAS, this Bond is given to meet the requirements of
25  Section 255.05, Florida Statutes, which shall control the
26  respective rights and obligations of the Principal, Surety,
27  Owner, and any claimant.
28
29         NOW, THEREFORE, THE CONDITION OF THIS BOND is that if
30  Principal:
31         1.  Performs the contract dated ...., ...., {enter date
                                  4
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
  1  of contract} between Principal and Owner for construction of
  2  the Project ...., the contract being made a part of this bond
  3  by reference, at the times and in the manner prescribed in the
  4  contract; and
  5         2.  Promptly makes payments to all claimants, as
  6  defined in Section 255.05(1), Florida Statutes, supplying
  7  Principal with labor, materials, or supplies, used directly or
  8  indirectly by Principal in the prosecution of the work
  9  provided for in the contract; and
10         3.  Pays Owner all losses, damages, expenses, costs,
11  and attorney's fees, including appellate proceedings, that
12  Owner sustains because of a default by Principal under the
13  contract; and
14         4.  Performs the guarantee of all work and materials
15  furnished under the contract for the time specified in the
16  contract, then this bond is void; otherwise it remains in full
17  force.
18         Any changes in or under the contract documents and
19  compliance or noncompliance with any formalities connected
20  with the contract or the changes does not affect Surety's
21  obligation under this bond.
22
23         DATED ON ...., .....
24                                            ...(Date of Bond)...
25                                ...(Name of Principal)...
26                       By ...(As Authorized Attorney in Fact)...
27                                ...(Name of Surety)...
28
29         Section 5.  Subsection (3) of section 713.24, Florida
30  Statutes, is amended to read:
31         713.24  Transfer of liens to security.--
                                  5
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
  1         (3)  Any party having an interest in such security or
  2  the property from which the lien was transferred may at any
  3  time, and any number of times, file a complaint in chancery in
  4  the circuit court of the county where such security is
  5  deposited, or file a motion in a pending action to enforce a
  6  lien, for an order to require additional security, reduction
  7  of security, change or substitution of sureties, payment of
  8  discharge thereof, or any other matter affecting the said
  9  security. If the court finds that the amount of the deposit or
10  bond in excess of the amount claimed in the claim of lien is
11  insufficient to pay the lienor's attorney's fees and court
12  costs incurred in the action to enforce the lien, the court
13  must increase the amount of the cash deposit or lien transfer
14  bond. However, the surety has no liability in excess of the
15  lien transfer bond filed with the clerk unless it provides a
16  new or amended bond.
17         Section 6.  This act shall take effect July 1, 2002.
18
19
20  ================ T I T L E   A M E N D M E N T ===============
21  And the title is amended as follows:
22  remove:  the entire title
23
24  and insert:
25                  A bill to be entitled
26         An act relating to sureties; amending ss.
27         199.185, 201.23, F.S.; exempting mortgages and
28         liens recorded to secure performance of an
29         indemnitor to a surety from the intangible
30         personal property tax and the excise tax on
31         documents at time of recording; providing that
                                  6
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225
                                                   HOUSE AMENDMENT
                                            Bill No. CS/CS/HB 1095
    Amendment No. ___ (for drafter's use only)
  1         those taxes become due upon exercise of rights
  2         under the mortgage or lien; providing that
  3         failure to pay intangibles tax is subject to
  4         criminal penalties in s. 199.282, F.S.;
  5         providing that failure to pay excise taxes when
  6         due is a first degree misdemeanor; amending s.
  7         210.08, F.S.; providing methods other than a
  8         bond for dealers, agents, or distributing
  9         agents to guarantee tax payment to the Division
10         of Alcoholic Beverages and Tobacco of the
11         Department of Business and Professional
12         Regulation; amending s. 255.05, F.S.; requiring
13         public construction bonds to be the same as the
14         statutory form; revising the statutory form;
15         amending s. 713.24, F.S.; providing that
16         sureties have no liability in excess of a lien
17         transfer bond; providing an exception;
18         providing an effective date.
19
20
21
22
23
24
25
26
27
28
29
30
31
                                  7
    File original & 9 copies    03/13/02
    hbd0001                     10:35 am         01095-0093-051225