Senate Bill sb2292

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    Florida Senate - 2002                                  SB 2292

    By Senator Geller





    29-1569-02

  1                      A bill to be entitled

  2         An act relating to sureties; amending s.

  3         210.08, F.S.; revising certain security

  4         requirements for tobacco dealers; amending s.

  5         255.05, F.S.; requiring that a construction

  6         bond conform to a specified form; amending s.

  7         713.135, F.S.; increasing the exemption amount

  8         for filing a notice of commencement; amending

  9         s. 713.24, F.S.; exempting sureties from

10         excess-liability judgments on certain bonds;

11         providing an effective date.

12

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

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15         Section 1.  Section 210.08, Florida Statutes, is

16  amended to read:

17         210.08  Bond for payment of taxes.--Each dealer, agent

18  or distributing agent shall file with the division a surety

19  bond, certificate of deposit, or irrevocable letter of credit

20  acceptable to the division in the sum of $10,000 as surety for

21  the payment of all taxes; provided, however, that where in the

22  discretion of the division the amount of business done by the

23  dealer, agent or distributing agent is of such volume that a

24  bond of less than $10,000 will be adequate to secure the

25  payment of all taxes assessed as authorized by the cigarette

26  tax law, the division may accept a bond, certificate of

27  deposit, or line or letter of credit in a lesser sum than

28  $10,000, but in no event shall it accept such security in an

29  amount a bond of less than $1,000, and it may at any time in

30  its discretion require any such security bond in an amount

31  less than $10,000 to be increased not to exceed $10,000.

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    Florida Senate - 2002                                  SB 2292
    29-1569-02




  1         Section 2.  Subsection (3) of section 255.05, Florida

  2  Statutes, is amended to read:

  3         255.05  Bond of contractor constructing public

  4  buildings; form; action by materialmen.--

  5         (3)  The bond required in subsection (1) must may be in

  6  substantially the following form:

  7

  8                     PUBLIC CONSTRUCTION BOND

  9

10         BY THIS BOND, We ...., as Principal and ...., a

11  corporation, as Surety, are bound to ...., herein called

12  Owner, in the sum of $...., for payment of which we bind

13  ourselves, our heirs, personal representatives, successors,

14  and assigns, jointly and severally.

15         THE CONDITION OF THIS BOND is that if Principal:

16         1.  Performs the contract dated ...., ...., between

17  Principal and Owner for construction of ...., the contract

18  being made a part of this bond by reference, at the times and

19  in the manner prescribed in the contract; and

20         2.  Promptly makes payments to all claimants, as

21  defined in Section 255.05(1), Florida Statutes, supplying

22  Principal with labor, materials, or supplies, used directly or

23  indirectly by Principal in the prosecution of the work

24  provided for in the contract; and

25         3.  Pays Owner all losses, damages, expenses, costs,

26  and attorney's fees, including appellate proceedings, that

27  Owner sustains because of a default by Principal under the

28  contract; and

29         4.  Performs the guarantee of all work and materials

30  furnished under the contract for the time specified in the

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    Florida Senate - 2002                                  SB 2292
    29-1569-02




  1  contract, then this bond is void; otherwise it remains in full

  2  force.

  3         Any changes in or under the contract documents and

  4  compliance or noncompliance with any formalities connected

  5  with the contract or the changes does not affect Surety's

  6  obligation under this bond.

  7

  8         DATED ON ...., .....

  9                                       ...(Name of Principal)...

10                                  By ...(As Attorney in Fact)...

11                                          ...(Name of Surety)...

12

13         Section 3.  Paragraph (d) of subsection (1) of section

14  713.135, Florida Statutes, is amended to read:

15         713.135  Notice of commencement and applicability of

16  lien.--

17         (1)  When any person applies for a building permit, the

18  authority issuing such permit shall:

19         (d)  Furnish to the applicant two or more copies of a

20  form of notice of commencement conforming with s. 713.13.  If

21  the direct contract is greater than $5,000 $2,500, the

22  applicant shall file with the issuing authority prior to the

23  first inspection either a certified copy of the recorded

24  notice of commencement or a notarized statement that the

25  notice of commencement has been filed for recording, along

26  with a copy thereof.  In the absence of the filing of a

27  certified copy of the recorded notice of commencement, the

28  issuing authority shall not perform or approve subsequent

29  inspections until the applicant files by mail, facsimile, hand

30  delivery, or any other means such certified copy with the

31  issuing authority. The certified copy of the notice of

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    Florida Senate - 2002                                  SB 2292
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  1  commencement must contain the name and address of the owner,

  2  the name and address of the contractor, and the location or

  3  address of the property being improved. The issuing authority

  4  shall verify that the name and address of the owner, the name

  5  of the contractor, and the location or address of the property

  6  being improved which is contained in the certified copy of the

  7  notice of commencement is consistent with the information in

  8  the building permit application. The issuing authority shall

  9  provide the recording information on the certified copy of the

10  recorded notice of commencement to any person upon request.

11  This subsection does not require the recording of a notice of

12  commencement prior to the issuance of a building permit. If a

13  local government requires a separate permit or inspection for

14  installation of temporary electrical service or other

15  temporary utility service, land clearing, or other preliminary

16  site work, such permits may be issued and such inspections may

17  be conducted without providing the issuing authority with a

18  certified copy of a recorded notice of commencement or a

19  notarized statement regarding a recorded notice of

20  commencement. This subsection does not apply to a direct

21  contract to repair or replace an existing heating or

22  air-conditioning system in an amount less than $5,000.

23         Section 4.  Subsection (3) of section 713.24, Florida

24  Statutes, is amended to read:

25         713.24  Transfer of liens to security.--

26         (3)  Any party having an interest in such security or

27  the property from which the lien was transferred may at any

28  time, and any number of times, file a complaint in chancery in

29  the circuit court of the county where such security is

30  deposited, or file a motion in a pending action to enforce a

31  lien, for an order to require additional security, reduction

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    Florida Senate - 2002                                  SB 2292
    29-1569-02




  1  of security, change or substitution of sureties, payment of

  2  discharge thereof, or any other matter affecting the said

  3  security. If the court finds that the amount of the deposit or

  4  bond in excess of the amount claimed in the claim of lien is

  5  insufficient to pay the lienor's attorney's fees and court

  6  costs incurred in the action to enforce the lien, the court

  7  must increase the amount of the cash deposit or lien transfer

  8  bond. However, the surety has no liability in excess of the

  9  lien transfer bond filed with the clerk unless it provides a

10  new or amended bond.

11         Section 5.  This act shall take effect July 1, 2002.

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14                          SENATE SUMMARY

15    Revises provisions relating to sureties. (See bill for
      details.)
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