Senate Bill sb2590c1

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    Florida Senate - 2006                           CS for SB 2590

    By the Committee on Regulated Industries; and Senator Bennett





    580-2126-06

  1                      A bill to be entitled

  2         An act relating to contracting; amending s.

  3         489.128, F.S.; providing that a business

  4         organization entering into a construction

  5         contract is not deemed unlicensed under certain

  6         conditions; providing for retroactive

  7         application; providing an effective date.

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  9  Be It Enacted by the Legislature of the State of Florida:

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11         Section 1.  Paragraph (b) of subsection (1) of section

12  489.128, Florida Statutes, is amended to read:

13         489.128  Contracts entered into by unlicensed

14  contractors unenforceable.--

15         (1)

16         (b)  For purposes of this section, an individual or

17  business organization may shall not be considered unlicensed

18  for failing to have an occupational license certificate issued

19  under the authority of chapter 205. A business organization

20  may shall not be considered unlicensed for failing to have a

21  certificate of authority as required by ss. 489.119 and

22  489.127. For purposes of this section, a business organization

23  entering into the contract may not be considered unlicensed

24  if, before the date established by paragraph (c), an

25  individual possessing a license required by this part

26  concerning the scope of the work to be performed under the

27  contract had submitted an application for a certificate of

28  authority designating that individual as a qualifying agent

29  for the business organization entering into the contract, and

30  the application was not acted upon by the department or

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    Florida Senate - 2006                           CS for SB 2590
    580-2126-06




 1  applicable board within the applicable time limitations

 2  imposed by s. 120.60.

 3         Section 2.  Section 1 is intended to be remedial in

 4  nature and to clarify existing law. Section 1 applies

 5  retroactively to all actions, including any action on a lien

 6  or bond claim, initiated on or after, or pending as of, July

 7  1, 2006. If the retroactivity of any provision of section 1 or

 8  its retroactive application to any person or circumstance is

 9  held invalid, the invalidity does not affect the retroactivity

10  or retroactive application of other provisions of section 1.

11         Section 3.  This act shall take effect July 1, 2006.

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    Florida Senate - 2006                           CS for SB 2590
    580-2126-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2590

 3                                 

 4  The committee substitute amends s. 489.128(1)(b) F.S., to
    provide that a business organization shall not be considered
 5  unlicensed if an individual, possessing a license concerning
    the scope of the work to be performed under the contract,
 6  submitted an application for a certificate of authority
    designating that individual as qualifying agent for the
 7  business organization entering into the contract, and the
    application was not acted upon by the department or applicable
 8  board within the applicable time limitations imposed by s.
    120.60, F.S.
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    It provides that this amendment is intended to be remedial in
10  nature and to clarify existing law.  It provides that it
    applies retroactively to all actions, including any action on
11  a lien or a bond claim, initiated on or after, or pending as
    of July 1, 2006. It provides for a severability clause.
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    It deletes the original language of the bill that provided
13  that a business organization is considered licensed if it has
    a principal, manager, director or officer who is licensed
14  under chapter 489 on the date the contract is executed and
    that a business organization is unlicensed if the business
15  organization does not have a primary or secondary qualifying
    agent.  It provided a person who knew the contractor was
16  unlicensed, could not file a civil action against the
    contractor.
17  
    It deletes the provision that required a court to rule that a
18  contractor is licensed if the contractor met specific
    requirements regarding maintaining and reinstating his
19  license.

20  It deleted that the bill applied retroactively to contracts
    entered into on or after October 1, 2000 and applied to all
21  actions that are pending on or are filed on or after October
    1, 2006.
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