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