HB 0113

CS

CHAMBER ACTION

1	The Justice Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to construction contracting; amending s.
7	255.05, F.S.; making certain restrictions in bonds issued
8	for public works projects unenforceable; amending s.
9	489.118, F.S.; postponing a date for submitting an
10	application for a certificate as a registered contractor;
11	amending ss. 489.129 and 489.533, F.S.; increasing an
12	administrative fine under certain disciplinary proceeding
13	provisions; amending s. 713.015, F.S.; revising form
14	criteria for a direct contract provision; preserving lien
15	and bond rights of certain persons; specifying
16	nonapplication to certain contractors or construction
17	professionals; amending s. 713.02, F.S.; protecting the
18	rights of certain persons to enforce certain contract,
19	lien, or bond remedies or contractual obligations under
20	certain circumstances; precluding certain defenses;
21	amending s. 713.04, F.S.; revising certain final payment
22	requirements; amending s. 713.08, F.S.; requiring a claim
23	of lien to be served on an owner; amending s. 713.13,
24	F.S.; revising provisions authorizing use of certain
25	payment bonds to transfer certain recorded liens;
26	specifying application of certain notice requirements to
27	certain claims; revising time limits for serving certain
28	required notices; amending s. 713.135, F.S.; revising
29	certain notice of commencement and applicability of lien
30	requirements for certain authorities issuing building
31	permits; prohibiting private providers performing
32	inspection services from performing or approving certain
33	inspections under certain circumstances; increasing a
34	threshold amount for certain nonapplication; prohibiting
35	issuing authorities or building officials from requiring
36	recordation of a notice of commencement for certain
37	purposes; authorizing authorities issuing building permits
38	to accept permit applications electronically; requiring an
39	electronic submission statement on the application;
40	requiring provision of Internet access; amending s.
41	713.23, F.S.; clarifying provisions relating to payment
42	bonds;  amending s. 713.24, F.S.; providing construction
43	to preserve county court jurisdiction over certain
44	transfer bond claims for nonpayment; preserving certain
45	lien rights when filing a transfer bond after commencing
46	certain lien enforcement proceedings; amending s. 713.345,
47	F.S.; revising criteria for certain criminal penalties for
48	misapplication of construction funds; amending s.
49	713.3471, F.S.; revising a provision requiring a lender to
50	provide notice to a property owner when making a
51	disbursement on a construction loan secured by residential
52	property; specifying nonapplication; providing an
53	effective date.
54
55	Be It Enacted by the Legislature of the State of Florida:
56
57	Section 1.  Paragraph (a) of subsection (1) of section
58	255.05, Florida Statutes, is amended to read:
59	255.05  Bond of contractor constructing public buildings;
60	form; action by materialmen.--
61	(1)(a)  Any person entering into a formal contract with the
62	state or any county, city, or political subdivision thereof, or
63	other public authority, for the construction of a public
64	building, for the prosecution and completion of a public work,
65	or for repairs upon a public building or public work shall be
66	required, before commencing the work or before recommencing the
67	work after a default or abandonment, to execute, deliver to the
68	public owner, and record in the public records of the county
69	where the improvement is located, a payment and performance bond
70	with a surety insurer authorized to do business in this state as
71	surety. A public entity may not require a contractor to secure a
72	surety bond under this section from a specific agent or bonding
73	company. The bond must state on its front page: the name,
74	principal business address, and phone number of the contractor,
75	the surety, the owner of the property being improved, and, if
76	different from the owner, the contracting public entity; the
77	contract number assigned by the contracting public entity; and a
78	description of the project sufficient to identify it, such as a
79	legal description or the street address of the property being
80	improved, and a general description of the improvement. Such
81	bond shall be conditioned upon the contractor's performance of
82	the construction work in the time and manner prescribed in the
83	contract and promptly making payments to all persons defined in
84	s. 713.01 who furnish labor, services, or materials for the
85	prosecution of the work provided for in the contract. Any
86	claimant may apply to the governmental entity having charge of
87	the work for copies of the contract and bond and shall thereupon
88	be furnished with a certified copy of the contract and bond. The
89	claimant shall have a right of action against the contractor and
90	surety for the amount due him or her, including unpaid finance
91	charges due under the claimant's contract. Such action shall not
92	involve the public authority in any expense. When such work is
93	done for the state and the contract is for $100,000 or less, no
94	payment and performance bond shall be required. At the
95	discretion of the official or board awarding such contract when
96	such work is done for any county, city, political subdivision,
97	or public authority, any person entering into such a contract
98	which is for $200,000 or less may be exempted from executing the
99	payment and performance bond. When such work is done for the
100	state, the Secretary of the Department of Management Services
101	may delegate to state agencies the authority to exempt any
102	person entering into such a contract amounting to more than
103	$100,000 but less than $200,000 from executing the payment and
104	performance bond. In the event such exemption is granted, the
105	officer or officials shall not be personally liable to persons
106	suffering loss because of granting such exemption. The
107	Department of Management Services shall maintain information on
108	the number of requests by state agencies for delegation of
109	authority to waive the bond requirements by agency and project
110	number and whether any request for delegation was denied and the
111	justification for the denial. Any provision in a payment bond
112	furnished for public work contracts as provided by this
113	subsection which restricts the classes of persons as defined in
114	s. 713.01 protected by the bond or the venue of any proceeding
115	relating to such bond is unenforceable.
116	Section 2.  Section 489.118, Florida Statutes, is amended
117	to read:
118	489.118  Certification of registered contractors;
119	grandfathering provisions.--The board shall, upon receipt of a
120	completed application and appropriate fee, issue a certificate
121	in the appropriate category to any contractor registered under
122	this part who makes application to the board and can show that
123	he or she meets each of the following requirements:
124	(1)  Currently holds a valid registered local license in
125	one of the contractor categories defined in s. 489.105(3)(a)-
126	(p).
127	(2)  Has, for that category, passed a written examination
128	that the board finds to be substantially similar to the
129	examination required to be licensed as a certified contractor
130	under this part. For purposes of this subsection, a written,
131	proctored examination such as that produced by the National
132	Assessment Institute, Block and Associates, NAI/Block, Experior
133	Assessments, Professional Testing, Inc., or Assessment Systems,
134	Inc., shall be considered to be substantially similar to the
135	examination required to be licensed as a certified contractor.
136	The board may not impose or make any requirements regarding the
137	nature or content of these cited examinations.
138	(3)  Has at least 5 years of experience as a contractor in
139	that contracting category, or as an inspector or building
140	administrator with oversight over that category, at the time of
141	application. For contractors, only time periods in which the
142	contractor license is active and the contractor is not on
143	probation shall count toward the 5 years required by this
144	subsection.
145	(4)  Has not had his or her contractor's license revoked at
146	any time, had his or her contractor's license suspended within
147	the last 5 years, or been assessed a fine in excess of $500
148	within the last 5 years.
149	(5)  Is in compliance with the insurance and financial
150	responsibility requirements in s. 489.115(5).
151
152	Applicants wishing to obtain a certificate pursuant to this
153	section must make application by November 1, 2005 2004.
154	Section 3.  Subsection (1) of section 489.129, Florida
155	Statutes, is amended to read:
156	489.129  Disciplinary proceedings.--
157	(1)  The board may take any of the following actions
158	against any certificateholder or registrant: place on probation
159	or reprimand the licensee, revoke, suspend, or deny the issuance
160	or renewal of the certificate, registration, or certificate of
161	authority, require financial restitution to a consumer for
162	financial harm directly related to a violation of a provision of
163	this part, impose an administrative fine not to exceed $10,000
164	$5,000 per violation, require continuing education, or assess
165	costs associated with investigation and prosecution, if the
166	contractor, financially responsible officer, or business
167	organization for which the contractor is a primary qualifying
168	agent, a financially responsible officer, or a secondary
169	qualifying agent responsible under s. 489.1195 is found guilty
170	of any of the following acts:
171	(a)  Obtaining a certificate, registration, or certificate
172	of authority by fraud or misrepresentation.
173	(b)  Being convicted or found guilty of, or entering a plea
174	of nolo contendere to, regardless of adjudication, a crime in
175	any jurisdiction which directly relates to the practice of
176	contracting or the ability to practice contracting.
177	(c)  Violating any provision of chapter 455.
178	(d)  Performing any act which assists a person or entity in
179	engaging in the prohibited uncertified and unregistered practice
180	of contracting, if the certificateholder or registrant knows or
181	has reasonable grounds to know that the person or entity was
182	uncertified and unregistered.
183	(e)  Knowingly combining or conspiring with an uncertified
184	or unregistered person by allowing his or her certificate,
185	registration, or certificate of authority to be used by the
186	uncertified or unregistered person with intent to evade the
187	provisions of this part. When a certificateholder or registrant
188	allows his or her certificate or registration to be used by one
189	or more business organizations without having any active
190	participation in the operations, management, or control of such
191	business organizations, such act constitutes prima facie
192	evidence of an intent to evade the provisions of this part.
193	(f)  Acting in the capacity of a contractor under any
194	certificate or registration issued hereunder except in the name
195	of the certificateholder or registrant as set forth on the
196	issued certificate or registration, or in accordance with the
197	personnel of the certificateholder or registrant as set forth in
198	the application for the certificate or registration, or as later
199	changed as provided in this part.
200	(g)  Committing mismanagement or misconduct in the practice
201	of contracting that causes financial harm to a customer.
202	Financial mismanagement or misconduct occurs when:
203	1.  Valid liens have been recorded against the property of
204	a contractor's customer for supplies or services ordered by the
205	contractor for the customer's job; the contractor has received
206	funds from the customer to pay for the supplies or services; and
207	the contractor has not had the liens removed from the property,
208	by payment or by bond, within 75 days after the date of such
209	liens;
210	2.  The contractor has abandoned a customer's job and the
211	percentage of completion is less than the percentage of the
212	total contract price paid to the contractor as of the time of
213	abandonment, unless the contractor is entitled to retain such
214	funds under the terms of the contract or refunds the excess
215	funds within 30 days after the date the job is abandoned; or
216	3.  The contractor's job has been completed, and it is
217	shown that the customer has had to pay more for the contracted
218	job than the original contract price, as adjusted for subsequent
219	change orders, unless such increase in cost was the result of
220	circumstances beyond the control of the contractor, was the
221	result of circumstances caused by the customer, or was otherwise
222	permitted by the terms of the contract between the contractor
223	and the customer.
224	(h)  Being disciplined by any municipality or county for an
225	act or violation of this part.
226	(i)  Failing in any material respect to comply with the
227	provisions of this part or violating a rule or lawful order of
228	the board.
229	(j)  Abandoning a construction project in which the
230	contractor is engaged or under contract as a contractor. A
231	project may be presumed abandoned after 90 days if the
232	contractor terminates the project without just cause or without
233	proper notification to the owner, including the reason for
234	termination, or fails to perform work without just cause for 90
235	consecutive days.
236	(k)  Signing a statement with respect to a project or
237	contract falsely indicating that the work is bonded; falsely
238	indicating that payment has been made for all subcontracted
239	work, labor, and materials which results in a financial loss to
240	the owner, purchaser, or contractor; or falsely indicating that
241	workers' compensation and public liability insurance are
242	provided.
243	(l)  Committing fraud or deceit in the practice of
244	contracting.
245	(m)  Committing incompetency or misconduct in the practice
246	of contracting.
247	(n)  Committing gross negligence, repeated negligence, or
248	negligence resulting in a significant danger to life or
249	property.
250	(o)  Proceeding on any job without obtaining applicable
251	local building department permits and inspections.
252	(p)  Intimidating, threatening, coercing, or otherwise
253	discouraging the service of a notice to owner under part I of
254	chapter 713 or a notice to contractor under chapter 255 or part
255	I of chapter 713.
256	(q)  Failing to satisfy within a reasonable time, the terms
257	of a civil judgment obtained against the licensee, or the
258	business organization qualified by the licensee, relating to the
259	practice of the licensee's profession.
260
261	For the purposes of this subsection, construction is considered
262	to be commenced when the contract is executed and the contractor
263	has accepted funds from the customer or lender. A contractor
264	does not commit a violation of this subsection when the
265	contractor relies on a building code interpretation rendered by
266	a building official or person authorized by s. 553.80 to enforce
267	the building code, absent a finding of fraud or deceit in the
268	practice of contracting, or gross negligence, repeated
269	negligence, or negligence resulting in a significant danger to
270	life or property on the part of the building official, in a
271	proceeding under chapter 120.
272	Section 4.  Paragraph (c) of subsection (2) of section
273	489.533, Florida Statutes, is amended to read:
274	489.533  Disciplinary proceedings.--
275	(2)  When the board finds any applicant, contractor, or
276	business organization for which the contractor is a primary
277	qualifying agent or secondary qualifying agent responsible under
278	s. 489.522 guilty of any of the grounds set forth in subsection
279	(1), it may enter an order imposing one or more of the following
280	penalties:
281	(c)  Imposition of an administrative fine not to exceed
282	$10,000 $5,000 for each count or separate offense.
283	Section 5.  Section 713.015, Florida Statutes, is amended
284	to read:
285	713.015  Mandatory provisions for direct contracts.--Any
286	direct contract between an owner and a contractor, related to
287	improvements to real property consisting of single or multiple
288	family dwellings up to and including four units, must contain
289	the following provision printed in no less than 14-point 18-
290	point, capitalized, boldfaced type on the front page of the
291	contract:
292
293	ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-
294	713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR
295	PROVIDE MATERIALS AND ARE NOT PAID IN FULL HAVE A RIGHT TO
296	ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS
297	CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR CONTRACTOR OR A
298	SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB-SUBCONTRACTORS,
299	OR MATERIAL SUPPLIERS OR NEGLECTS TO MAKE OTHER LEGALLY REQUIRED
300	PAYMENTS, THE PEOPLE WHO ARE OWED MONEY MAY LOOK TO YOUR
301	PROPERTY FOR PAYMENT, EVEN IF YOU HAVE ALREADY PAID YOUR
302	CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR, YOUR
303	CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR PROPERTY. THIS MEANS IF
304	A LIEN IS FILED YOUR PROPERTY COULD BE SOLD AGAINST YOUR WILL TO
305	PAY FOR LABOR, MATERIALS, OR OTHER SERVICES THAT YOUR CONTRACTOR
306	OR A SUBCONTRACTOR MAY HAVE FAILED TO PAY. TO PROTECT YOURSELF,
307	YOU SHOULD STIPULATE IN THIS CONTRACT THAT BEFORE ANY PAYMENT IS
308	MADE, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH A WRITTEN
309	RELEASE OF LIEN FROM ANY PERSON OR COMPANY THAT HAS PROVIDED TO
310	YOU A "NOTICE TO OWNER." FLORIDA'S CONSTRUCTION LIEN LAW IS
311	COMPLEX AND IT IS RECOMMENDED THAT WHENEVER A SPECIFIC PROBLEM
312	ARISES, YOU CONSULT AN ATTORNEY.
313
314	Nothing in this section shall be construed to adversely affect
315	the lien and bond rights of lienors who are not in privity with
316	the owner. This section does not apply when the owner is a
317	contractor licensed under chapter 489 or is a person who created
318	parcels or offers parcels for sale or lease in the ordinary
319	course of business.
320	Section 6.  Subsection (7) of section 713.02, Florida
321	Statutes, is amended to read:
322	713.02  Types of lienors and exemptions.--
323	(7)  Notwithstanding any other provision of this part, no
324	lien shall exist in favor of any contractor, subcontractor, or
325	sub-subcontractor who is unlicensed as provided in s. 489.128 or
326	s. 489.532. Notwithstanding any other provision of this part, if
327	a contract is rendered unenforceable by an unlicensed
328	contractor, subcontractor, or sub-subcontractor pursuant to s.
329	489.128 or s. 489.532, such unenforceability shall not affect
330	the rights of any other persons to enforce contract, lien, or
331	bond remedies and shall not affect the obligations of a surety
332	that has provided a bond on behalf of the unlicensed contractor,
333	subcontractor, or sub-subcontractor. It shall not be a defense
334	to any claim on a bond or indemnity agreement that the principal
335	or indemnitor is unlicensed as provided in s. 489.128 or s.
336	489.532.
337	Section 7.  Subsection (3) of section 713.04, Florida
338	Statutes, is amended, and subsection (4) is added to said
339	section, to read:
340	713.04  Subdivision improvements.--
341	(3)  The owner shall not pay any money on account of a
342	direct contract before actual furnishing of labor and services
343	or materials for subdivision improvements. Any The payment not
344	complying with such requirement shall not qualify as a proper
345	payment under this chapter section.
346	(4)  The owner shall make final payment on account of a
347	direct contract only after the contractor complies with s.
348	713.06(3)(d). Any payment not complying with such requirement
349	shall not qualify as a proper payment under this chapter.
350	Section 8.  Paragraph (c) of subsection (4) of section
351	713.08, Florida Statutes, is amended to read:
352	713.08  Claim of lien.--
353	(4)
354	(c)  The claim of lien shall be served on the owner.
355	Failure to serve any claim of lien in the manner provided in s.
356	713.18 before recording or within 15 days after recording shall
357	render the claim of lien voidable to the extent that the failure
358	or delay is shown to have been prejudicial to any person
359	entitled to rely on the service.
360	Section 9.  Paragraph (e) of subsection (1) of section
361	713.13, Florida Statutes, is amended to read:
362	713.13  Notice of commencement.--
363	(1)
364	(e)  A copy of any payment bond must be attached at the
365	time of recordation of the notice of commencement. The failure
366	to attach a copy of the bond to the notice of commencement when
367	the notice is recorded negates the exemption provided in s.
368	713.02(6). However, if such a payment bond under s. 713.23
369	exists but was is not attached at the time of recordation of the
370	notice of commencement, the bond may be used to transfer any
371	recorded lien of a lienor except that of the contractor by the
372	recordation and service of a notice of bond pursuant to s.
373	713.23(2). The notice requirements of s. 713.23 apply to any
374	claim against the bond; however, the time limits for serving any
375	required notices shall begin running from the later of the time
376	specified in s. 713.23 or the date the notice of bond is served
377	on the lienor recorded, the bond may be used as a transfer bond
378	pursuant to s. 713.24.
379	Section 10.  Paragraphs (b) and (d) of subsection (1) and
380	subsections (4) and (6) of section 713.135, Florida Statutes,
381	are amended, and paragraph (e) is added to subsection (1) of
382	said section, to read:
383	713.135  Notice of commencement and applicability of
384	lien.--
385	(1)  When any person applies for a building permit, the
386	authority issuing such permit shall:
387	(b)  Provide the applicant and the owner of the real
388	property upon which improvements are to be constructed with a
389	printed statement stating that the right, title, and interest of
390	the person who has contracted for the improvement may be subject
391	to attachment under the Construction Lien Law. The Department of
392	Business and Professional Regulation shall furnish, for
393	distribution, the statement described in this paragraph, and the
394	statement must be a summary of the Construction Lien Law and
395	must include an explanation of the provisions of the
396	Construction Lien Law relating to the recording, and the posting
397	of copies, of notices of commencement and a statement
398	encouraging the owner to record a notice of commencement and
399	post a copy of the notice of commencement in accordance with s.
400	713.13. The statement must also contain an explanation of the
401	owner's rights if a lienor fails to furnish the owner with a
402	notice as provided in s. 713.06(2) and an explanation of the
403	owner's rights as provided in s. 713.22. The authority that
404	issues the building permit must obtain from the Department of
405	Business and Professional Regulation the statement required by
406	this paragraph and must mail, deliver by electronic mail or
407	other electronic format or facsimile, or personally deliver that
408	statement to the owner or, in a case in which the owner is
409	required to personally appear to obtain the permit, provide that
410	statement to any owner making improvements to real property
411	consisting of a single or multiple family dwelling up to and
412	including four units. However, the failure by the authorities to
413	provide the summary does not subject the issuing authority to
414	liability.
415	(d)  Furnish to the applicant two or more copies of a form
416	of notice of commencement conforming with s. 713.13. If the
417	direct contract is greater than $2,500, the applicant shall file
418	with the issuing authority prior to the first inspection either
419	a certified copy of the recorded notice of commencement or a
420	notarized statement that the notice of commencement has been
421	filed for recording, along with a copy thereof. In the absence
422	of the filing of a certified copy of the recorded notice of
423	commencement, the issuing authority or a private provider
424	performing inspection services may shall not perform or approve
425	subsequent inspections until the applicant files by mail,
426	facsimile, hand delivery, or any other means such certified copy
427	with the issuing authority. The certified copy of the notice of
428	commencement must contain the name and address of the owner, the
429	name and address of the contractor, and the location or address
430	of the property being improved. The issuing authority shall
431	verify that the name and address of the owner, the name of the
432	contractor, and the location or address of the property being
433	improved which is contained in the certified copy of the notice
434	of commencement is consistent with the information in the
435	building permit application. The issuing authority shall provide
436	the recording information on the certified copy of the recorded
437	notice of commencement to any person upon request. This
438	subsection does not require the recording of a notice of
439	commencement prior to the issuance of a building permit. If a
440	local government requires a separate permit or inspection for
441	installation of temporary electrical service or other temporary
442	utility service, land clearing, or other preliminary site work,
443	such permits may be issued and such inspections may be conducted
444	without providing the issuing authority with a certified copy of
445	a recorded notice of commencement or a notarized statement
446	regarding a recorded notice of commencement. This subsection
447	does not apply to a direct contract to repair or replace an
448	existing heating or air-conditioning system in an amount less
449	than $7,500 $5,000.
450	(e)  An issuing authority or building official may not
451	require that a notice of commencement be recorded as a condition
452	of the application, processing, or issuance of a building
453	permit. However, this paragraph does not modify or waive the
454	inspection requirements set forth in this subsection.
455	(4)  The several boards of county commissioners, municipal
456	councils, or other similar bodies may by ordinance or resolution
457	establish reasonable fees for furnishing copies of the forms and
458	the printed statement provided in paragraphs paragraph (1)(b)
459	and (d) in an amount not to exceed $5 to be paid by the
460	applicant for each permit in addition to all other costs of the
461	permit; however, no forms or statement need be furnished,
462	mailed, or otherwise provided to, nor may such additional fee be
463	obtained from, applicants for permits in those cases in which
464	the owner of a legal or equitable interest (including that of
465	ownership of stock of a corporate landowner) of the real
466	property to be improved is engaged in the business of
467	construction of buildings for sale to others and intends to make
468	the improvements authorized by the permit on the property and
469	upon completion will offer the improved real property for sale.
470	(6)(a)  In addition to any other information required by
471	the authority issuing the permit, the building permit
472	application must be in substantially the following form:
473
474	Tax Folio No.__________
475	BUILDING PERMIT APPLICATION
476
477	Owner's Name
478	Owner's Address
479	Fee Simple Titleholder's Name (If other than owner)
480	Fee Simple Titleholder's Address (If other than owner)
481	City
482	State_______________ Zip_______________
483	Contractor's Name
484	Contractor's Address
485	City
486	State_______________ Zip_______________
487	Job Name
488	Job Address
489	City____________________County_______________
490	Legal Description
491	Bonding Company
492	Bonding Company Address
493	City____________________ State_______________
494	Architect/Engineer's Name
495	Architect/Engineer's Address
496	Mortgage Lender's Name
497	Mortgage Lender's Address
498
499	Application is hereby made to obtain a permit to do the
500	work and installations as indicated. I certify that no work or
501	installation has commenced prior to the issuance of a permit and
502	that all work will be performed to meet the standards of all
503	laws regulating construction in this jurisdiction. I understand
504	that a separate permit must be secured for ELECTRICAL WORK,
505	PLUMBING, SIGNS, WELLS, POOLS, FURNACES, BOILERS, HEATERS,
506	TANKS, and AIR CONDITIONERS, etc.
507
508	OWNER'S AFFIDAVIT: I certify that all the foregoing information
509	is accurate and that all work will be done in compliance with
510	all applicable laws regulating construction and zoning.
511
512
513	WARNING TO OWNER: YOUR FAILURE TO RECORD A NOTICE OF
514	COMMENCEMENT MAY RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS TO
515	YOUR PROPERTY.
516
517
518	IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR
519	AN ATTORNEY BEFORE RECORDING YOUR NOTICE OF COMMENCEMENT.
520
521	(Signature of Owner or Agent)
522	(including contractor)
523	STATE OF FLORIDA
524	COUNTY OF _____
525
526
527	Sworn to (or affirmed) and subscribed before me this _____
528	day of _____,   (year)  , by   (name of person making statement)
529	.
530
531	(Signature of Notary Public - State of Florida)
532	(Print, Type, or Stamp Commissioned Name of Notary Public)
533
534	Personally Known _____ OR Produced Identification _____
535
536	Type of Identification Produced_______________
537	(Signature of Contractor)
538
539
540	STATE OF FLORIDA
541	COUNTY OF _____
542
543
544	Sworn to (or affirmed) and subscribed before me this _____
545	day of _____,   (year)  , by   (name of person making statement)
546	.
547
548	(Signature of Notary Public - State of Florida)
549	(Print, Type, or Stamp Commissioned Name of Notary Public)
550
551	Personally Known _____ OR Produced Identification _____
552
553	Type of Identification Produced_______________
554
555	(Certificate of Competency Holder)
556
557	Contractor's State Certification or Registration No._____
558
559	Contractor's Certificate of Competency No.__________
560
561	APPLICATION APPROVED BY
562	____________________Permit Officer
563	(b)  Consistent with the requirements of paragraph (a), an
564	authority responsible for issuing building permits under this
565	section may accept a building permit application in an
566	electronic format, as prescribed by the authority. Building
567	permit applications submitted to the authority electronically
568	must contain the following additional statement:
569
570	OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of
571	perjury, I declare that all the information contained in
572	this building permit application is true and correct.
573
574	(c)  An authority responsible for issuing building permit
575	applications which accepts building permit applications in an
576	electronic format shall provide public Internet access to the
577	electronic building permit applications in a searchable format.
578	Section 11.  Paragraph (e) of subsection (1) of section
579	713.23, Florida Statutes, is amended to read:
580	713.23  Payment bond.--
581	(1)
582	(e)  No action for the labor or materials or supplies may
583	be instituted or prosecuted against the contractor or surety
584	unless both notices have been given. No action shall be
585	instituted or prosecuted against the contractor or against the
586	surety on the bond under this section after 1 year from the
587	performance of the labor or completion of delivery of the
588	materials and supplies. The time period for bringing an action
589	against the contractor or surety on the bond shall be measured
590	from the last day of furnishing labor, services, or materials by
591	the lienor and shall not be measured by other standards, such as
592	the issuance of a certificate of occupancy or the issuance of a
593	certificate of substantial completion. A contractor or the
594	contractor's agent or attorney may elect to shorten the
595	prescribed time within which an action to enforce any claim
596	against a payment bond provided under pursuant to this section
597	or s. 713.245 may be commenced at any time after a notice of
598	nonpayment, if required, has been served for the claim by
599	recording in the clerk's office a notice in substantially the
600	following form:
601
602	NOTICE OF CONTEST OF CLAIM
603	AGAINST PAYMENT BOND
604
605	To:    (Name and address of lienor)
606	You are notified that the undersigned contests your notice
607	of nonpayment, dated _____, _____, and served on the undersigned
608	on _____, _____, and that the time within which you may file
609	suit to enforce your claim is limited to 60 days from the date
610	of service of this notice.
611
612	DATED on _____, _____.
613
614	Signed:   (Contractor or Attorney)
615
616
617	The claim of any lienor upon whom the such notice is served and
618	who fails to institute a suit to enforce his or her claim
619	against the payment bond within 60 days after service of the
620	such notice shall be extinguished automatically. The clerk shall
621	mail a copy of the notice of contest to the lienor at the
622	address shown in the notice of nonpayment or most recent
623	amendment thereto and shall certify to such service on the face
624	of the such notice and record the notice. Service is complete
625	upon mailing.
626	Section 12.  Subsections (3) and (4) of section 713.24,
627	Florida Statutes, are amended to read:
628	713.24  Transfer of liens to security.--
629	(3)  Any party having an interest in such security or the
630	property from which the lien was transferred may at any time,
631	and any number of times, file a complaint in chancery in the
632	circuit court of the county where such security is deposited, or
633	file a motion in a pending action to enforce a lien, for an
634	order to require additional security, reduction of security,
635	change or substitution of sureties, payment of discharge
636	thereof, or any other matter affecting said security. If the
637	court finds that the amount of the deposit or bond in excess of
638	the amount claimed in the claim of lien is insufficient to pay
639	the lienor's attorney's fees and court costs incurred in the
640	action to enforce the lien, the court must increase the amount
641	of the cash deposit or lien transfer bond. Nothing in this
642	section shall be construed to vest exclusive jurisdiction in the
643	circuit courts over transfer bond claims for nonpayment of an
644	amount within the monetary jurisdiction of the county courts.
645	(4)  If a proceeding to enforce a transferred lien is not
646	commenced within the time specified in s. 713.22 or if it
647	appears that the transferred lien has been satisfied of record,
648	the clerk shall return said security upon request of the person
649	depositing or filing the same, or the insurer. If a proceeding
650	to enforce a lien is commenced in a court of competent
651	jurisdiction within the time specified in s. 713.22 and, during
652	such proceeding, the lien is transferred pursuant to this
653	section or s. 713.13(1)(e), an action commenced within 1 year
654	after the transfer, unless otherwise shortened by operation of
655	law, in the same county or circuit court to recover against the
656	security shall be deemed to have been brought as of the date of
657	filing the action to enforce the lien, and the court shall have
658	jurisdiction over the action.
659	Section 13.  Paragraph (b) of subsection (1) of section
660	713.345, Florida Statutes, is amended to read:
661	713.345  Moneys received for real property improvements;
662	penalty for misapplication.--
663	(1)
664	(b)  Any person who knowingly and intentionally fails to
665	comply with paragraph (a) is guilty of misapplication of
666	construction funds, punishable as follows:
667	1.  If the amount of payments misapplied has an aggregate
668	value of $100,000 or more, the violator is guilty of a felony of
669	the first degree, punishable as provided in s. 775.082, s.
670	775.083, or s. 775.084.
671	2.  If the amount of payments misapplied has an aggregate
672	value of $1,000 $20,000 or more but less than $100,000, the
673	violator is guilty of a felony of the second degree, punishable
674	as provided in s. 775.082, s. 775.083, or s. 775.084.
675	3.  If the amount of payments misapplied has an aggregate
676	value of less than $1,000 $20,000, the violator is guilty of a
677	felony of the third degree, punishable as provided in s.
678	775.082, s. 775.083, or s. 775.084.
679	Section 14.  Subsection (1) of section 713.3471, Florida
680	Statutes, is amended to read:
681	713.3471  Lender responsibilities with construction
682	loans.--
683	(1)  Prior to a lender making any loan disbursement on any
684	construction loan secured by residential real property directly
685	to the owner, which, for purposes of this subsection, means only
686	a natural person, into the owner's account or accounts, or
687	jointly to the owner and any other party, the lender shall mail,
688	deliver by electronic mail or other electronic format or
689	facsimile, or personally deliver give the following written
690	notice to the borrowers in bold type larger than any other type
691	on the page:
692
693	WARNING!
694
695	YOUR LENDER IS MAKING A LOAN DISBURSEMENT DIRECTLY TO YOU
696	AS THE BORROWER, OR JOINTLY TO YOU AND ANOTHER PARTY. TO
697	PROTECT YOURSELF FROM HAVING TO PAY TWICE FOR THE SAME
698	LABOR, SERVICES, OR MATERIALS USED IN MAKING THE
699	IMPROVEMENTS TO YOUR PROPERTY, BE SURE THAT YOU REQUIRE
700	YOUR CONTRACTOR TO GIVE YOU LIEN RELEASES FROM EACH LIENOR
701	WHO HAS SENT YOU A NOTICE TO OWNER EACH TIME YOU MAKE A
702	PAYMENT TO YOUR CONTRACTOR.
703
704	This subsection does not apply when the owner is a contractor
705	licensed under chapter 489 or is a person who creates parcels or
706	offer parcels for sale or lease in the ordinary course of
707	business.
708	Section 15.  This act shall take effect October 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.