HB 1049 2003
1	CHAMBER ACTION
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6	The Committee on Business Regulation recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to engineering; amending ss. 471.013 and
12	471.015, F.S.; revising provisions relating to the
13	examinations required to practice in this state as an
14	engineer; amending s. 471.023, F.S.; requiring
15	certification of any business organization offering
16	engineering services to the public; amending s. 471.033,
17	F.S.; revising provisions relating to disciplinary
18	penalties to increase the administrative fine and
19	authorize the imposition of restitution; amending s.
20	471.038, F.S.; revising duties of the Board of
21	Professional Engineers, the Florida Engineers Management
22	Corporation, and the Department of Business and
23	Professional Regulation with respect to regulation of the
24	practice of engineering; providing that the president of
25	the management corporation shall be selected by the
26	management corporation and shall serve as executive
27	director of the board, subject to approval of the board;
28	eliminating the position of contract administrator;
29	revising the submission date for the annual status report;
30	restricting the requirement of posting a performance bond
31	to certain persons not employed by the management
32	corporation; revising duties and authority to investigate
33	complaints, prosecute cases, and issue emergency
34	suspension or restriction orders; providing an effective
35	date.
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37	Be It Enacted by the Legislature of the State of Florida:
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39	Section 1. Subsection (1) of section 471.013, Florida
40	Statutes, is amended to read:
41	471.013 Examinations; prerequisites.--
42	(1)(a) A person shall be entitled to take an examination
43	for the purpose of determining whether she or he is qualified to
44	practice in this state as an engineer if the person is of good
45	moral character and:
46	1. Is a graduate from an approved engineering curriculum
47	of 4 years or more in a school, college, or university which has
48	been approved by the board and has a record of 4 years of active
49	engineering experience of a character indicating competence to
50	be in responsible charge of engineering;
51	2. Is a graduate of an approved engineering technology
52	curriculum of 4 years or more in a school, college, or
53	university within the State University System, having been
54	enrolled or having graduated prior to July 1, 1979, and has a
55	record of 4 years of active engineering experience of a
56	character indicating competence to be in responsible charge of
57	engineering; or
58	3. Has, in lieu of such education and experience
59	requirements, 10 years or more of active engineering work of a
60	character indicating that the applicant is competent to be
61	placed in responsible charge of engineering. However, this
62	subparagraph does not apply unless such person notifies the
63	department before July 1, 1984, that she or he was engaged in
64	such work on July 1, 1981.
65
66	The board shall adopt rules providing for the review and
67	approval of schools or colleges and the courses of study in
68	engineering in such schools and colleges. The rules shall be
69	based on the educational requirements for engineering as defined
70	in s. 471.005. The board may adopt rules providing for the
71	acceptance of the approval and accreditation of schools and
72	courses of study by a nationally accepted accreditation
73	organization.
74	(b) A person shall be entitled to take the fundamentalsan
75	examination for the purpose of determining whether she or he is
76	qualified to practice in this state as an engineer intern if she
77	or he is in the final year of, or is a graduate of, an approved
78	engineering curriculum in a school, college, or university
79	approved by the board.
80	(c) A person shall not be entitled to take the principles
81	and practice part of theexamination until that person has
82	successfully completed the fundamentals examination.
83	(d) On or after October 1, 1992, every applicant who is
84	qualified to take either the fundamentals examination or the
85	principles and practiceany part of theexamination shall be
86	allowed to take either examinationany one partfive times,
87	notwithstanding the number of times that either examinationpart
88	has been previously failed. If an applicant fails eitherany
89	part of the examination taken after October 1, 1992,five times,
90	the board shall require the applicant to complete additional
91	college-level education courses in the areas of deficiency, as
92	determined by the board, as a condition of future eligibility to
93	take thattheexamination.
94	Section 2. Subsections (1), (3), and (5) of section
95	471.015, Florida Statutes, are amended to read:
96	471.015 Licensure.--
97	(1) The management corporation shall issue a license to
98	any applicant who the board certifies is qualified to practice
99	engineering and who has passed the fundamentals examination and
100	the principles and practicelicensingexamination.
101	(3) The board shall certify as qualified for a license by
102	endorsement an applicant who:
103	(a) Qualifies to take the fundamentals examination and the
104	principles and practiceexamination as set forth in s. 471.013,
105	has passed a United States national, regional, state, or
106	territorial licensing examination that is substantially
107	equivalent to the fundamentals examination and the principles
108	and practiceexamination required by s. 471.013, and has
109	satisfied the experience requirements set forth in s. 471.013;
110	or
111	(b) Holds a valid license to practice engineering issued
112	by another state or territory of the United States, if the
113	criteria for issuance of the license were substantially the same
114	as the licensure criteria that existed in this state at the time
115	the license was issued.
116	(5)(a) The board shall deem that an applicant who seeks
117	licensure by endorsement has passed an examination substantially
118	equivalent to part I of the fundamentalsengineeringexamination
119	when such applicant:
120	1. Has held a valid professional engineer's license in
121	another state for 15 years and has had 20 years of continuous
122	professional-level engineering experience;
123	2. Has received a doctorate degree in engineering from an
124	institution that has an undergraduate engineering degree program
125	which is accredited by the Accreditation Board for Engineering
126	Technology; or
127	3. Has received a doctorate degree in engineering and has
128	taught engineering full time for at least 3 years, at the
129	baccalaureate level or higher, after receiving that degree.
130	(b) The board shall deem that an applicant who seeks
131	licensure by endorsement has passed an examination substantially
132	equivalent to the fundamentals examination and the principles
133	and practicepart I and part II of the engineeringexamination
134	when such applicant has held a valid professional engineer's
135	license in another state for 25 years and has had 30 years of
136	continuous professional-level engineering experience.
137	Section 3. Section 471.023, Florida Statutes, is amended
138	to read:
139	471.023 Certification of business organizations
140	partnerships and corporations.--
141	(1) The practice of, or the offer to practice, engineering
142	by licensees through a business organization, including any
143	partnership, corporation, business trust, or other legal entity,
144	corporation or partnershipoffering engineering services to the
145	public or by a business organization, including any partnership,
146	corporation, business trust, or other legal entity,corporation
147	or partnershipoffering said services to the public through
148	licensees under this chapter as agents, employees, officers, or
149	partners is permitted only if the business organizationfirm
150	possesses a certification issued by the management corporation
151	pursuant to qualification by the board, subject to the
152	provisions of this chapter. One or more of the principal
153	officers of the business organizationcorporationor one or more
154	partners, if the business organization is aof the partnership,
155	and all personnel of the business organizationcorporation or
156	partnershipwho act in its behalf as engineers in this state
157	shall be licensed as provided by this chapter. All final
158	drawings, specifications, plans, reports, or documents involving
159	practices licensed under this chapter which are prepared or
160	approved for the use of the business organizationcorporation or
161	partnershipor for public record within the state shall be dated
162	and shall bear the signature and seal of the licensee who
163	prepared or approved them. Nothing in this section shall be
164	construed to mean that a license to practice engineering shall
165	be held by a business organizationcorporation. Nothing herein
166	prohibits business organizationscorporations and partnerships
167	from joining together to offer engineering services to the
168	public, provided each business organizationcorporation or
169	partnership otherwise meets the requirements of this section. No
170	business organizationcorporation or partnershipshall be
171	relieved of responsibility for the conduct or acts of its
172	agents, employees, or officers by reason of its compliance with
173	this section, nor shall any individual practicing engineering be
174	relieved of responsibility for professional services performed
175	by reason of his or her employment or relationship with a
176	business organizationcorporation or partnership.
177	(2) For the purposes of this section, a certificate of
178	authorization shall be required for a business organization
179	corporation, partnership, association,or person practicing
180	under a fictitious name, offering engineering services to the
181	public. However, when an individual is practicing engineering in
182	his or her own given name, he or she shall not be required to be
183	licensed under this section.
184	(3) The fact that a licensed engineer practices through a
185	business organizationcorporation or partnershipshall not
186	relieve the licensee from personal liability for negligence,
187	misconduct, or wrongful acts committed by him or her.
188	Partnerships and all partners shall be jointly and severally
189	liable for the negligence, misconduct, or wrongful acts
190	committed by their agents, employees, or partners while acting
191	in a professional capacity. Any officer, agent, or employee of a
192	business organization other than a partnershipcorporationshall
193	be personally liable and accountable only for negligent acts,
194	wrongful acts, or misconduct committed by him or her or
195	committed by any person under his or her direct supervision and
196	control, while rendering professional services on behalf of the
197	business organizationcorporation. The personal liability of a
198	shareholder or owner of a business organizationcorporation, in
199	his or her capacity as shareholder or owner, shall be no greater
200	than that of a shareholder-employee of a corporation
201	incorporated under chapter 607. The business organization
202	corporationshall be liable up to the full value of its property
203	for any negligent acts, wrongful acts, or misconduct committed
204	by any of its officers, agents, or employees while they are
205	engaged on behalf of the business organizationcorporationin
206	the rendering of professional services.
207	(4) Each certification of authorization shall be renewed
208	every 2 years. Each business organizationpartnership and
209	corporationcertified under this section shall notify the board
210	within 1 month of any change in the information contained in the
211	application upon which the certification is based.
212	(5) Disciplinary action against a business organization
213	corporation or partnershipshall be administered in the same
214	manner and on the same grounds as disciplinary action against a
215	licensed engineer.
216	Section 4. Section 471.033, Florida Statutes, is amended
217	to read:
218	471.033 Disciplinary proceedings.--
219	(1) The following acts constitute grounds for which the
220	disciplinary actions in subsection (3) may be taken:
221	(a) Violating any provision of s. 455.227(1), s. 471.025,
222	or s. 471.031, or any other provision of this chapter or rule of
223	the board or department.
224	(b) Attempting to procure a license to practice
225	engineering by bribery or fraudulent misrepresentations.
226	(c) Having a license to practice engineering revoked,
227	suspended, or otherwise acted against, including the denial of
228	licensure, by the licensing authority of another state,
229	territory, or country, for any act that would constitute a
230	violation of this chapter or chapter 455.
231	(d) Being convicted or found guilty of, or entering a plea
232	of nolo contendere to, regardless of adjudication, a crime in
233	any jurisdiction which directly relates to the practice of
234	engineering or the ability to practice engineering.
235	(e) Making or filing a report or record that the licensee
236	knows to be false, willfully failing to file a report or record
237	required by state or federal law, willfully impeding or
238	obstructing such filing, or inducing another person to impede or
239	obstruct such filing. Such reports or records include only those
240	that are signed in the capacity of a licensed engineer.
241	(f) Advertising goods or services in a manner that is
242	fraudulent, false, deceptive, or misleading in form or content.
243	(g) Engaging in fraud or deceit, negligence, incompetence,
244	or misconduct, in the practice of engineering.
245	(h) Violating chapter 455.
246	(i) Practicing on a revoked, suspended, inactive, or
247	delinquent license.
248	(j) Affixing or permitting to be affixed his or her seal,
249	name, or digital signature to any final drawings,
250	specifications, plans, reports, or documents that were not
251	prepared by him or her or under his or her responsible
252	supervision, direction, or control.
253	(k) Violating any order of the board or department
254	previously entered in a disciplinary hearing.
255	(2) The board shall specify, by rule, what acts or
256	omissions constitute a violation of subsection (1).
257	(3) When the board finds any person guilty of any of the
258	grounds set forth in subsection (1), it may enter an order
259	imposing one or more of the following penalties:
260	(a) Denial of an application for licensure.
261	(b) Revocation or suspension of a license.
262	(c) Imposition of an administrative fine not to exceed
263	$5,000$1,000for each count or separate offense.
264	(d) Issuance of a reprimand.
265	(e) Placement of the licensee on probation for a period of
266	time and subject to such conditions as the board may specify.
267	(f) Restriction of the authorized scope of practice by the
268	licensee.
269	(g) Restitution.
270	(4) The management corporation shall reissue the license
271	of a disciplined engineer or business upon certification by the
272	board that the disciplined person has complied with all of the
273	terms and conditions set forth in the final order.
274	Section 5. Section 471.038, Florida Statutes, is amended
275	to read:
276	471.038 Florida Engineers Management Corporation.--
277	(1) This section may be cited as the "Florida Engineers
278	Management Corporation Act."
279	(2) The purpose of this section is to create a public-
280	private partnership by providing that a single nonprofit
281	corporation be established to provide administrative,
282	investigative, and prosecutorial services to the board and that
283	no additional nonprofit corporation be created for these
284	purposes.
285	(3) The Florida Engineers Management Corporation is
286	created to provide administrative, investigative, and
287	prosecutorial services to the board in accordance with the
288	provisions of chapter 455 and this chapter. The management
289	corporation may hire staff as necessary to carry out its
290	functions. Such staff are not public employees for the purposes
291	of chapter 110 or chapter 112, except that the board of
292	directors and the staff are subject to the provisions of s.
293	112.061. The provisions of s. 768.28 apply to the management
294	corporation, which is deemed to be a corporation primarily
295	acting as an instrumentality of the state, but which is not an
296	agency within the meaning of s. 20.03(11). The management
297	corporation shall:
298	(a) Be a Florida corporation not for profit, incorporated
299	under the provisions of chapter 617.
300	(b) Provide administrative, investigative, and
301	prosecutorial services to the board in accordance with the
302	provisions of chapter 455, this chapter, and the contract
303	required by this section.
304	(c) Receive, hold, and administer property and make only
305	prudent expenditures directly related to the responsibilities of
306	the board, and in accordance with the contract required by this
307	section.
308	(d) Be approved by the board and the department to operate
309	for the benefit of the board and in the best interest of the
310	state.
311	(e) Operate under a fiscal year that begins on July 1 of
312	each year and ends on June 30 of the following year.
313	(f) Have a seven-member board of directors, five of whom
314	are to be appointed by the board and must be registrants
315	regulated by the board and two of whom are to be appointed by
316	the secretary and must be laypersons not regulated by the board.
317	All initial appointments shall expire on October 31, 2000.
318	Current members may be appointed to one additional term that
319	complies with the provisions of this paragraph. Two members
320	shall be appointed for 2 years, three members shall be appointed
321	for 3 years, and two members shall be appointed for 4 years. One
322	layperson shall be appointed to a 3-year term and one layperson
323	shall be appointed to a 4-year term. Thereafter,All
324	appointments shall be for 4-year terms. No newmember shall
325	serve more than two consecutive terms. Failure to attend three
326	consecutive meetings shall be deemed a resignation from the
327	board, and the vacancy shall be filled by a new appointment.
328	(g) Select its officers in accordance with its bylaws. The
329	members of the board of directors who were appointed by the
330	board may be removed by the board, with the concurrence of the
331	department, for the same reasons that a board member may be
332	removed.
333	(h) Select the president of the management corporation,
334	who shall also serve as the executive director of the board,
335	subject to approval of the board.
336	(i)(h)Use a portion of the interest derived from the
337	management corporation account to offset the costs associated
338	with the use of credit cards for payment of fees by applicants
339	or licensees.
340	(j)(i) Operate under aan annualwritten contract with the
341	department which is approved by the board. The contract must
342	provide for, but is not limited to:
343	1. Approval of the articles of incorporation and bylaws of
344	the management corporation by the department and the board.
345	1.2.Submission by the management corporation of an annual
346	budget that complies with board rules for approval by the board
347	and the department.
348	2.3.Annual certification by the board and the department
349	that the management corporation is complying with the terms of
350	the contract in a manner consistent with the goals and purposes
351	of the board and in the best interest of the state. This
352	certification must be reported in the board's minutes. The
353	contract must also provide for methods and mechanisms to resolve
354	any situation in which the certification process determines
355	noncompliance.
356	4. Employment by the department of a contract
357	administrator to actively supervise the administrative,
358	investigative, and prosecutorial activities of the management
359	corporation to ensure compliance with the contract and the
360	provisions of chapter 455 and this chapter and to act as a
361	liaison for the department, the board, and the management
362	corporation to ensure the effective operation of the management
363	corporation.
364	3.5.Funding of the management corporation through
365	appropriations allocated to the regulation of professional
366	engineers from the Professional Regulation Trust Fund.
367	4.6.The reversion to the board, or the state if the board
368	ceases to exist, of moneys, records, data, and property held in
369	trust by the management corporation for the benefit of the
370	board, if the management corporation is no longer approved to
371	operate for the board or the board ceases to exist. All records
372	and data in a computerized database shall be returned to the
373	department in a form that is compatible with the computerized
374	database of the department.
375	5.7.The securing and maintaining by the management
376	corporation, during the term of the contract and for all acts
377	performed during the term of the contract, of all liability
378	insurance coverages in an amount to be approved by the board
379	departmentto defend, indemnify, and hold harmless the
380	management corporation and its officers and employees, the
381	department and its employees, and the state against all claims
382	arising from state and federal laws. Such insurance coverage
383	must be with insurers qualified and doing business in the state.
384	The management corporation must provide proof of insurance to
385	the department. The department and its employees and the state
386	are exempt from and are not liable for any sum of money which
387	represents a deductible, which sums shall be the sole
388	responsibility of the management corporation. Violation of this
389	subparagraph shall be grounds for terminating the contract.
390	6.8.Payment by the management corporation, out of its
391	allocated budget, to the department of all costs of
392	representation by the board counsel, including salary and
393	benefits, travel, and any other compensation traditionally paid
394	by the department to other board counsels.
395	7.9.Payment by the management corporation, out of its
396	allocated budget, to the department of all costs incurred by the
397	management corporation or the board for the Division of
398	Administrative Hearings of the Department of Management Services
399	and any other cost for utilization of these state services.
400	8.10.Payment by the management corporation, out of its
401	allocated budget, to the department of reasonableallcosts
402	associated with the contract monitoradministrator of the
403	department, including salary and benefits, travel, and other
404	related costs traditionally paid to state employees.
405	(k)(j)Provide for an annual financial audit of its
406	financial accounts and records by an independent certified
407	public accountant. The annual audit report shall include a
408	management letter in accordance with s. 11.45 and a detailed
409	supplemental schedule of expenditures for each expenditure
410	category. The annual audit report must be submitted to the
411	board, the department, and the Auditor General for review.
412	(l)(k) Provide for persons not employed by the management
413	corporation who arecharged with the responsibility of receiving
414	and depositing fee and fine revenues to have a faithful
415	performance bond in such an amount and according to such terms
416	as shall be determined in the contract.
417	(m)(l)Submit to the secretary, the board, and the
418	Legislature, on or before OctoberJanuary1 of each year, a
419	report on the status of the corporation which includes, but is
420	not limited to, information concerning the programs and funds
421	that have been transferred to the corporation. The report must
422	include: the number of license applications received; the number
423	approved and denied and the number of licenses issued; the
424	number of examinations administered and the number of applicants
425	who passed or failed the examination; the number of complaints
426	received; the number determined to be legally sufficient; the
427	number dismissed; the number determined to have probable cause;
428	the number of administrative complaints issued and the status of
429	the complaints; and the number and nature of disciplinary
430	actions taken by the board.
431	(n)(m) Develop, and submit towiththe department,
432	performance standards and measurable outcomes for the board to
433	adopt by rule in order to facilitate efficient and cost-
434	effective regulation.
435	(4) The management corporation may not exercise any
436	authority specifically assigned to the board under chapter 455
437	or this chapter, including determining probable cause to pursue
438	disciplinary action against a licensee, taking final action on
439	license applications or in disciplinary cases, or adopting
440	administrative rules under chapter 120.
441	(5) Notwithstanding the provisions of ss. 455.228,
442	455.2281, and 455.32, the duties and authority of the department
443	to receive complaints and to investigate and deter the
444	unlicensed practice of engineering are delegated to the board.
445	The board may use funds in its unlicensed activity account
446	established under s. 455.2281 to perform its duties relating to
447	unlicensed activity.
448	(6) The board, with the concurrence of the board chair,
449	may issue emergency suspension or restriction orders pursuant to
450	s. 120.60.
451	(7)(5)The department shall retain the independent
452	authority to open or, investigate, or prosecuteany cases or
453	complaints, as necessary to protect the public health, safety,
454	or welfare. In addition, the department may request prosecution
455	of these cases by the management corporationshall retain sole
456	authority to issue emergency suspension or restriction orders
457	pursuant to s. 120.60 and to prosecute unlicensed activity cases
458	pursuant to ss. 455.228 and 455.2281.
459	(8)(6)Management corporation records are public records
460	subject to the provisions of s. 119.07(1) and s. 24(a), Art. I
461	of the State Constitution; however, public records exemptions
462	set forth in ss. 455.217 and 455.229 for records created or
463	maintained by the department shall apply to records created or
464	maintained by the management corporation. In addition, all
465	meetings of the board of directors are open to the public in
466	accordance with s. 286.011 and s. 24(b), Art. I of the State
467	Constitution. The exemptions set forth in s. 455.225, relating
468	to complaints and information obtained pursuant to an
469	investigation by the department, shall apply to such records
470	created or obtained by the management corporation only until an
471	investigation ceases to be active. For the purposes of this
472	subsection, an investigation is considered active so long as the
473	management corporation or any law enforcement or administrative
474	agency is proceeding with reasonable dispatch and has a
475	reasonable, good faith belief that it may lead to the filing of
476	administrative, civil, or criminal proceedings. An investigation
477	ceases to be active when the case is dismissed prior to a
478	finding of probable cause and the board has not exercised its
479	option to pursue the case or 10 days after the board makes a
480	determination regarding probable cause. All information,
481	records, and transcriptions regarding a complaint that has been
482	determined to be legally sufficient to state a claim within the
483	jurisdiction of the board become available to the public when
484	the investigation ceases to be active, except information that
485	is otherwise confidential or exempt from s. 119.07(1). However,
486	in response to an inquiry about the licensure status of an
487	individual, the management corporation shall disclose the
488	existence of an active investigation if the nature of the
489	violation under investigation involves the potential for
490	substantial physical or financial harm to the public. The board
491	shall designate by rule those violations that involve the
492	potential for substantial physical or financial harm. The
493	department and the board shall have access to all records of the
494	management corporation, as necessary to exercise their authority
495	to approve and supervise the contract.
496	(9)(7)The management corporation is the sole source and
497	depository for the records of the board, including all
498	historical information and records. The management corporation
499	shall maintain those records in accordance with the guidelines
500	of the Department of State and shall not destroy any records
501	prior to the limits imposed by the Department of State.
502	(10)(8)The board shall provide by rule for the procedures
503	the management corporation must follow to ensure that all
504	licensure examinations are secure while under the responsibility
505	of the management corporation and that there is an appropriate
506	level of monitoring during the licensure examinations.
507	Section 6. This act shall take effect October 1, 2003.