| 1 | The Commerce 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 contracting exemptions; amending ss. |
| 7 | 489.103 and 489.503, F.S.; revising exemptions for certain |
| 8 | owners of property from certain contracting provisions; |
| 9 | increasing maximum construction costs allowed for |
| 10 | exemption; requiring owners of property to satisfy certain |
| 11 | local permitting agency requirements; providing for |
| 12 | penalties; providing an exemption for owners of property |
| 13 | damaged by certain natural causes; amending s. 489.128, |
| 14 | F.S.; providing that a business organization entering into |
| 15 | a construction contract is not deemed unlicensed under |
| 16 | certain conditions; providing for retroactive application; |
| 17 | providing an effective date. |
| 18 |
|
| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
|
| 21 | Section 1. Subsection (7) of section 489.103, Florida |
| 22 | Statutes, is amended to read: |
| 23 | 489.103 Exemptions.--This part does not apply to: |
| 24 | (7) Owners of property when acting as their own contractor |
| 25 | and providing direct, onsite supervision themselves of all work |
| 26 | not performed by licensed contractors:, |
| 27 | (a) When building or improving farm outbuildings or one- |
| 28 | family or two-family residences on such property for the |
| 29 | occupancy or use of such owners and not offered for sale or |
| 30 | lease, or building or improving commercial buildings, at a cost |
| 31 | not to exceed $75,000 $25,000, on such property for the |
| 32 | occupancy or use of such owners and not offered for sale or |
| 33 | lease. In an action brought under this part, proof of the sale |
| 34 | or lease, or offering for sale or lease, of any such structure |
| 35 | by the owner-builder within 1 year after completion of same |
| 36 | creates a presumption that the construction was undertaken for |
| 37 | purposes of sale or lease. |
| 38 | (b) When repairing or replacing wood shakes or asphalt or |
| 39 | fiberglass shingles on one-family, two-family, or three-family |
| 40 | residences for the occupancy or use of such owner or tenant of |
| 41 | the owner and not offered for sale within 1 year after |
| 42 | completion of the work and when the property has been damaged by |
| 43 | natural causes from an event recognized as an emergency |
| 44 | situation designated by executive order issued by the Governor |
| 45 | declaring the existence of a state of emergency as a result and |
| 46 | consequence of a serious threat posed to the public health, |
| 47 | safety, and property in this state. |
| 48 |
|
| 49 | This subsection does not exempt any person who is employed by or |
| 50 | has a contract with such owner and who acts in the capacity of a |
| 51 | contractor. The owner may not delegate the owner's |
| 52 | responsibility to directly supervise all work to any other |
| 53 | person unless that person is registered or certified under this |
| 54 | part and the work being performed is within the scope of that |
| 55 | person's license. For the purposes of this subsection, the term |
| 56 | "owners of property" includes the owner of a mobile home |
| 57 | situated on a leased lot. To qualify for exemption under this |
| 58 | subsection, an owner must personally appear and sign the |
| 59 | building permit application and must satisfy local permitting |
| 60 | agency requirements, if any, proving that the owner has a |
| 61 | complete understanding of the owner's obligations under the law |
| 62 | as specified in the disclosure statement in this section. If any |
| 63 | person violates the requirements of this subsection, the local |
| 64 | permitting agency shall withhold final approval, revoke the |
| 65 | permit, or pursue any action or remedy for unlicensed activity |
| 66 | against the owner and any person performing work that requires |
| 67 | licensure under the permit issued. The local permitting agency |
| 68 | shall provide the person with a disclosure statement in |
| 69 | substantially the following form: |
| 70 |
|
| 71 | Disclosure Statement |
| 72 |
|
| 73 | State law requires construction to be done by licensed |
| 74 | contractors. You have applied for a permit under an exemption to |
| 75 | that law. The exemption allows you, as the owner of your |
| 76 | property, to act as your own contractor with certain |
| 77 | restrictions even though you do not have a license. You must |
| 78 | provide direct, onsite supervision of the construction yourself. |
| 79 | You may build or improve a one-family or two-family residence or |
| 80 | a farm outbuilding. You may also build or improve a commercial |
| 81 | building, provided your costs do not exceed $75,000 $25,000. The |
| 82 | building or residence must be for your own use or occupancy. It |
| 83 | may not be built or substantially improved for sale or lease. If |
| 84 | you sell or lease a building you have built or substantially |
| 85 | improved yourself within 1 year after the construction is |
| 86 | complete, the law will presume that you built or substantially |
| 87 | improved it for sale or lease, which is a violation of this |
| 88 | exemption. You may not hire an unlicensed person to act as your |
| 89 | contractor or to supervise people working on your building. It |
| 90 | is your responsibility to make sure that people employed by you |
| 91 | have licenses required by state law and by county or municipal |
| 92 | licensing ordinances. You may not delegate the responsibility |
| 93 | for supervising work to a licensed contractor who is not |
| 94 | licensed to perform the work being done. Any person working on |
| 95 | your building who is not licensed must work under your direct |
| 96 | supervision and must be employed by you, which means that you |
| 97 | must deduct F.I.C.A. and withholding tax and provide workers' |
| 98 | compensation for that employee, all as prescribed by law. Your |
| 99 | construction must comply with all applicable laws, ordinances, |
| 100 | building codes, and zoning regulations. |
| 101 | Section 2. Subsection (6) of section 489.503, Florida |
| 102 | Statutes, is amended to read: |
| 103 | 489.503 Exemptions.--This part does not apply to: |
| 104 | (6) An owner of property making application for permit, |
| 105 | supervising, and doing the work in connection with the |
| 106 | construction, maintenance, repair, and alteration of and |
| 107 | addition to a single-family or duplex residence for his or her |
| 108 | own use and occupancy and not intended for sale or an owner of |
| 109 | property when acting as his or her own electrical contractor and |
| 110 | providing all material supervision himself or herself, when |
| 111 | building or improving a farm outbuilding or a single-family or |
| 112 | duplex residence on such property for the occupancy or use of |
| 113 | such owner and not offered for sale or lease, or building or |
| 114 | improving a commercial building with aggregate construction |
| 115 | costs of under $75,000 $25,000 on such property for the |
| 116 | occupancy or use of such owner and not offered for sale or |
| 117 | lease. In an action brought under this subsection, proof of the |
| 118 | sale or lease, or offering for sale or lease, of more than one |
| 119 | such structure by the owner-builder within 1 year after |
| 120 | completion of same is prima facie evidence that the construction |
| 121 | was undertaken for purposes of sale or lease. This subsection |
| 122 | does not exempt any person who is employed by such owner and who |
| 123 | acts in the capacity of a contractor. For the purpose of this |
| 124 | subsection, the term "owner of property" includes the owner of a |
| 125 | mobile home situated on a leased lot. To qualify for exemption |
| 126 | under this subsection, an owner shall personally appear and sign |
| 127 | the building permit application and must satisfy local |
| 128 | permitting agency requirements, if any, proving that the owner |
| 129 | has a complete understanding of the owner's obligations under |
| 130 | the law as specified in the disclosure statement in this |
| 131 | section. If any person violates the requirements of this |
| 132 | subsection, the local permitting agency shall withhold final |
| 133 | approval, revoke the permit, or pursue any action or remedy for |
| 134 | unlicensed activity against the owner and any person performing |
| 135 | work that requires licensure under the permit issued. The local |
| 136 | permitting agency shall provide the owner with a disclosure |
| 137 | statement in substantially the following form: |
| 138 |
|
| 139 | Disclosure Statement |
| 140 |
|
| 141 | State law requires electrical contracting to be done by |
| 142 | licensed electrical contractors. You have applied for a permit |
| 143 | under an exemption to that law. The exemption allows you, as the |
| 144 | owner of your property, to act as your own electrical contractor |
| 145 | even though you do not have a license. You may install |
| 146 | electrical wiring for a farm outbuilding or a single-family or |
| 147 | duplex residence. You may install electrical wiring in a |
| 148 | commercial building the aggregate construction costs of which |
| 149 | are under $75,000 $25,000. The home or building must be for your |
| 150 | own use and occupancy. It may not be built for sale or lease. If |
| 151 | you sell or lease more than one building you have wired yourself |
| 152 | within 1 year after the construction is complete, the law will |
| 153 | presume that you built it for sale or lease, which is a |
| 154 | violation of this exemption. You may not hire an unlicensed |
| 155 | person as your electrical contractor. Your construction shall be |
| 156 | done according to building codes and zoning regulations. It is |
| 157 | your responsibility to make sure that people employed by you |
| 158 | have licenses required by state law and by county or municipal |
| 159 | licensing ordinances. |
| 160 | Section 3. Paragraph (b) of subsection (1) of section |
| 161 | 489.128, Florida Statutes, is amended to read: |
| 162 | 489.128 Contracts entered into by unlicensed contractors |
| 163 | unenforceable.-- |
| 164 | (1) As a matter of public policy, contracts entered into |
| 165 | on or after October 1, 1990, by an unlicensed contractor shall |
| 166 | be unenforceable in law or in equity by the unlicensed |
| 167 | contractor. |
| 168 | (b) For purposes of this section, an individual or |
| 169 | business organization may shall not be considered unlicensed for |
| 170 | failing to have an occupational license certificate issued under |
| 171 | the authority of chapter 205. A business organization may shall |
| 172 | not be considered unlicensed for failing to have a certificate |
| 173 | of authority as required by ss. 489.119 and 489.127. For |
| 174 | purposes of this section, a business organization entering into |
| 175 | the contract may not be considered unlicensed if, before the |
| 176 | date established by paragraph (c), an individual possessing a |
| 177 | license required by this part concerning the scope of the work |
| 178 | to be performed under the contract had submitted an application |
| 179 | for a certificate of authority designating that individual as a |
| 180 | qualifying agent for the business organization entering into the |
| 181 | contract, and the application was not acted upon by the |
| 182 | department or applicable board within the applicable time |
| 183 | limitations imposed by s. 120.60. |
| 184 | Section 4. Section 3 is intended to be remedial in nature |
| 185 | and to clarify existing law. Section 3 applies retroactively to |
| 186 | all actions, including any action on a lien or bond claim, |
| 187 | initiated on or after, or pending as of, July 1, 2006. If the |
| 188 | retroactivity of any provision of section 3 or its retroactive |
| 189 | application to any person or circumstance is held invalid, the |
| 190 | invalidity does not affect the retroactivity or retroactive |
| 191 | application of other provisions of section 3. |
| 192 | Section 5. This act shall take effect July 1, 2006. |