SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
CHAMBER ACTION
Senate House
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11 Senator Argenziano moved the following amendment to amendment
12 (554528):
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14 Senate Amendment (with title amendment)
15 On page 5, between lines 29 and 30,
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17 insert:
18 Section 2. Section 713.015, Florida Statutes, is
19 amended to read:
20 713.015 Mandatory provisions for direct
21 contracts.--Any direct contract between an owner and a
22 contractor, related to improvements to real property
23 consisting of single or multiple family dwellings up to and
24 including four units, must contain the following provision
25 printed in capital letters no less than the same size
26 18-point, capitalized, boldfaced type used in the body of the
27 contract:
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29 ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS
30 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR
31 PROPERTY OR PROVIDE MATERIALS AND ARE NOT PAID IN FULL HAVE A
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR
2 PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR
3 CONTRACTOR OR A SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS,
4 SUB-SUBCONTRACTORS, OR MATERIAL SUPPLIERS OR NEGLECTS TO MAKE
5 OTHER LEGALLY REQUIRED PAYMENTS, THE PEOPLE WHO ARE OWED MONEY
6 MAY LOOK TO YOUR PROPERTY FOR PAYMENT, EVEN IF YOU HAVE PAID
7 YOUR CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR,
8 YOUR CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR PROPERTY. THIS
9 MEANS IF A LIEN IS FILED YOUR PROPERTY COULD BE SOLD AGAINST
10 YOUR WILL TO PAY FOR LABOR, MATERIALS, OR OTHER SERVICES THAT
11 YOUR CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED TO PAY.
12 FLORIDA'S CONSTRUCTION LIEN LAW IS COMPLEX AND IT IS
13 RECOMMENDED THAT WHENEVER A SPECIFIC PROBLEM ARISES, YOU
14 CONSULT AN ATTORNEY.
15 Section 3. Subsection (7) of section 713.02, Florida
16 Statutes, is amended to read:
17 713.02 Types of lienors and exemptions.--
18 (7) Notwithstanding any other provision of this part,
19 no lien shall exist in favor of any contractor, subcontractor,
20 or sub-subcontractor who is unlicensed as provided in s.
21 489.128 or s. 489.532. Notwithstanding any other provision of
22 this part, if a contract is rendered unenforceable by an
23 unlicensed contractor, subcontractor, or sub-subcontractor
24 pursuant to s. 489.128 or s. 489.532, such unenforceability
25 shall not affect the rights of any other persons to enforce
26 contract, lien, or bond remedies and shall not affect the
27 obligations of a surety that has provided a bond on behalf of
28 the unlicensed contractor, subcontractor, or
29 sub-subcontractor. It shall not be a defense to any claim on a
30 bond or indemnity agreement that the principal or indemnitor
31 is unlicensed as provided in s. 489.128 or s. 489.532.
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 Section 4. Subsection (3) of section 713.04, Florida
2 Statutes, is amended, and subsection (4) is added to that
3 section, to read:
4 713.04 Subdivision improvements.--
5 (3) The owner shall not pay any money on account of a
6 direct contract before actual furnishing of labor and services
7 or materials for subdivision improvements. Any such The
8 payment not complying with such requirement shall not qualify
9 as a proper payment under this chapter section.
10 (4) The owner shall make final payment on account of a
11 direct contract only after the contractor complies with s.
12 713.06(3)(d). Any such payment not complying with such
13 requirement shall not qualify as a proper payment under this
14 chapter.
15 Section 5. Paragraph (c) of subsection (4) of section
16 713.08, Florida Statutes, is amended to read:
17 713.08 Claim of lien.--
18 (4)
19 (c) The claim of lien shall be served on the owner.
20 Failure to serve any claim of lien in the manner provided in
21 s. 713.18 before recording or within 15 days after recording
22 shall render the claim of lien voidable to the extent that the
23 failure or delay is shown to have been prejudicial to any
24 person entitled to rely on the service.
25 Section 6. Paragraph (e) of subsection (1) of section
26 713.13, Florida Statutes, is amended to read:
27 713.13 Notice of commencement.--
28 (1)
29 (e) A copy of any bond must be attached at the time of
30 recordation of the notice of commencement. The failure to
31 attach a copy of the bond to the notice of commencement when
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 the notice is recorded negates the exemption provided in s.
2 713.02(6). However, if such a bond exists but is not recorded,
3 the bond may be used as a transfer bond pursuant to s. 713.24.
4 The bond shall be deemed a transfer bond under s. 713.24 for
5 all purposes at the time of recordation of the notice of bond
6 and the clerk's mailing as provided in s. 713.23(2). The
7 notice requirements of s. 713.23 apply to any claim against
8 the bond; however, the time limits for serving the notice
9 shall run from the latter of the time specified in s. 713.23
10 or the date the notice of bond is served on the lienor.
11 Section 7. Paragraph (b) of subsection (1) and
12 subsection (4) of section 713.135, Florida Statutes, are
13 amended, and paragraph (e) is added to subsection (1) of that
14 section, 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 (b) Provide the applicant and the owner of the real
20 property upon which improvements are to be constructed with a
21 printed statement stating that the right, title, and interest
22 of the person who has contracted for the improvement may be
23 subject to attachment under the Construction Lien Law. The
24 Department of Business and Professional Regulation shall
25 furnish, for distribution, the statement described in this
26 paragraph, and the statement must be a summary of the
27 Construction Lien Law and must include an explanation of the
28 provisions of the Construction Lien Law relating to the
29 recording, and the posting of copies, of notices of
30 commencement and a statement encouraging the owner to record a
31 notice of commencement and post a copy of the notice of
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 commencement in accordance with s. 713.13. The statement must
2 also contain an explanation of the owner's rights if a lienor
3 fails to furnish the owner with a notice as provided in s.
4 713.06(2) and an explanation of the owner's rights as provided
5 in s. 713.22. The authority that issues the building permit
6 must obtain from the Department of Business and Professional
7 Regulation the statement required by this paragraph and must
8 mail, deliver by electronic mail or other electronic format or
9 facsimile, or personally deliver that statement to the owner
10 or, in the case in which the owner is required to personally
11 appear to obtain the permit, provide that statement to any
12 owner making improvements to real property consisting of a
13 single or multiple family dwelling up to and including four
14 units. However, the failure by the authorities to provide the
15 summary does not subject the issuing authority to liability.
16 (e) Nothing in this subsection shall be construed to
17 require a notice of commencement to be recorded as a condition
18 to the issuance of a building permit.
19 (4) The several boards of county commissioners,
20 municipal councils, or other similar bodies may by ordinance
21 or resolution establish reasonable fees for furnishing copies
22 of the forms and the printed statement provided in paragraphs
23 (1)(b) and paragraph (1)(d) in an amount not to exceed $5 to
24 be paid by the applicant for each permit in addition to all
25 other costs of the permit; however, no forms or statement need
26 be furnished, mailed, or otherwise provided to, nor may such
27 additional fee be obtained from, applicants for permits in
28 those cases in which the owner of a legal or equitable
29 interest (including that of ownership of stock of a corporate
30 landowner) of the real property to be improved is engaged in
31 the business of construction of buildings for sale to others
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 and intends to make the improvements authorized by the permit
2 on the property and upon completion will offer the improved
3 real property for sale.
4 Section 8. Subsection (4) of section 713.24, Florida
5 Statutes, is amended to read:
6 713.24 Transfer of liens to security.--
7 (4) If a proceeding to enforce a transferred lien is
8 not commenced within the time specified in s. 713.22 or if it
9 appears that the transferred lien has been satisfied of
10 record, the clerk shall return said security upon request of
11 the person depositing or filing the same, or the insurer. If a
12 proceeding to enforce a lien is commenced in a court of
13 competent jurisdiction within the time specified in s. 713.22
14 and, subsequent to the expiration of the proceeding, the lien
15 is transferred pursuant to s. 713.24, an action commenced to
16 recover against the security shall be deemed to have been
17 brought as of the date of filing the action to enforce the
18 lien.
19 Section 9. Paragraph (b) of subsection (1) of section
20 713.345, Florida Statutes, is amended to read:
21 713.345 Moneys received for real property
22 improvements; penalty for misapplication.--
23 (1)
24 (b) Any person who knowingly and intentionally fails
25 to comply with paragraph (a) is guilty of misapplication of
26 construction funds, punishable as follows:
27 1. If the amount of payments misapplied has an
28 aggregate value of $100,000 or more, the violator is guilty of
29 a felony of the first degree, punishable as provided in s.
30 775.082, s. 775.083, or s. 775.084.
31 2. If the amount of payments misapplied has an
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 aggregate value of $20,000 or more but less than $100,000, the
2 violator is guilty of a felony of the second degree,
3 punishable as provided in s. 775.082, s. 775.083, or s.
4 775.084.
5 3. If the amount of payments misapplied has an
6 aggregate value of less than $20,000, the violator is guilty
7 of a felony of the third degree, punishable as provided in s.
8 775.082, s. 775.083, or s. 775.084.
9 Section 10. Subsection (1) of section 713.3471,
10 Florida Statutes, is amended to read:
11 713.3471 Lender responsibilities with construction
12 loans.--
13 (1) Prior to a lender making the first any loan
14 disbursement on any construction loan secured by residential
15 property directly to the owner, which for purposes of this
16 section means an individual owner only, or jointly to the
17 owner and any other party, the lender shall give the following
18 written notice to the owner borrowers in bold type larger than
19 any other type on the page:
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21 WARNING!
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23 YOUR LENDER IS MAKING A LOAN DISBURSEMENT
24 DIRECTLY TO YOU AS THE OWNER BORROWER, OR
25 JOINTLY TO YOU AND ANOTHER PARTY. TO PROTECT
26 YOURSELF FROM HAVING TO PAY TWICE FOR THE SAME
27 LABOR, SERVICES, OR MATERIALS USED IN MAKING
28 THE IMPROVEMENTS TO YOUR PROPERTY, BE SURE THAT
29 YOU REQUIRE YOUR CONTRACTOR TO GIVE YOU LIEN
30 RELEASES FROM EACH LIENOR WHO HAS SENT YOU A
31 NOTICE TO OWNER EACH TIME YOU MAKE A PAYMENT TO
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 YOUR CONTRACTOR.
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3 (Redesignate subsequent sections.)
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6 ================ T I T L E A M E N D M E N T ===============
7 And the title is amended as follows:
8 On page 8, line 3, after the semicolon
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10 insert:
11 amending s. 713.015, F.S.; revising a direct
12 contract provision requirement; amending s.
13 713.02, F.S.; protecting the rights of certain
14 persons to enforce certain contract, lien, or
15 bond remedies or contractual obligations under
16 certain circumstances; precluding certain
17 defenses; amending s. 713.04, F.S.; revising
18 certain final payment requirements; amending s.
19 713.08, F.S.; requiring a claim of lien to be
20 served on an owner; amending s. 713.13, F.S.;
21 clarifying use of a payment bond as a transfer
22 bond; amending s. 713.135, F.S., revising
23 certain notice of commencement and
24 applicability of lien requirements for certain
25 authorities issuing building permits; amending
26 s. 713.24, F.S.; preserving certain lien rights
27 when filing a transfer bond after commencing
28 certain lien enforcement proceedings; amending
29 s. 713.345, F.S.; increasing certain criminal
30 penalties for misapplication of construction
31 funds; amending s. 713.3471, F.S.; revising a
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SENATE AMENDMENT
Bill No. CS for SB 1600
Amendment No. ___ Barcode 090100
1 notice requirement concerning the disbursement
2 of payments on construction loans; requiring
3 that the notice be provided to the owner;
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