Senate Bill sb0588

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    Florida Senate - 2006                                   SB 588

    By Senator Constantine





    22-297-06

  1                      A bill to be entitled

  2         An act relating to the Construction Lien Law;

  3         amending s. 713.13, F.S.; amending payment

  4         requirements relating to notice of

  5         commencement; amending s. 713.135, F.S.;

  6         revising certain requirements for notice of

  7         commencement and applicability of liens which

  8         pertain to certain authorities issuing building

  9         permits; prohibiting private providers

10         performing inspection services from performing

11         or approving certain inspections under certain

12         circumstances; increasing a threshold amount

13         for certain nonapplication; prohibiting issuing

14         authorities or building officials from

15         requiring recordation of a notice of

16         commencement for certain purposes; authorizing

17         authorities issuing building permits to accept

18         permit applications electronically; requiring

19         an electronic application to include an

20         electronic submission statement; requiring the

21         provision of Internet access to electronically

22         submitted building permit applications;

23         amending s. 713.35, F.S.; revising the list of

24         legal documents in which it is a crime to

25         knowingly and intentionally include certain

26         false information; providing penalties;

27         providing an effective date.

28  

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

30  

31  

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    Florida Senate - 2006                                   SB 588
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 1         Section 1.  Paragraph (c) of subsection (1) of section

 2  713.13, Florida Statutes, is amended to read:

 3         713.13  Notice of commencement.--

 4         (1)

 5         (c)  If the contract between the owner and a contractor

 6  named in the notice of commencement expresses a period of time

 7  for completion for the construction of the improvement greater

 8  than 1 year, the notice of commencement must state that it is

 9  effective for a period of 1 year plus any additional period of

10  time.  Any payments made by the owner before the recordation

11  of or after the expiration of the notice of commencement are

12  considered improper payments.

13         Section 2.  Paragraphs (b) and (d) of subsection (1)

14  and subsections (4) and (6) of section 713.135, Florida

15  Statutes, are amended, and paragraph (e) is added to

16  subsection (1) of that section, to read:

17         713.135  Notice of commencement and applicability of

18  lien.--

19         (1)  When any person applies for a building permit, the

20  authority issuing such permit shall:

21         (b)  Provide the applicant and the owner of the real

22  property upon which improvements are to be constructed with a

23  printed statement stating that the right, title, and interest

24  of the person who has contracted for the improvement may be

25  subject to attachment under the Construction Lien Law. The

26  Department of Business and Professional Regulation shall

27  furnish, for distribution, the statement described in this

28  paragraph, and the statement must be a summary of the

29  Construction Lien Law and must include an explanation of the

30  provisions of the Construction Lien Law relating to the

31  recording, and the posting of copies, of notices of

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    Florida Senate - 2006                                   SB 588
    22-297-06




 1  commencement and a statement encouraging the owner to record a

 2  notice of commencement and post a copy of the notice of

 3  commencement in accordance with s. 713.13. The statement must

 4  also contain an explanation of the owner's rights if a lienor

 5  fails to furnish the owner with a notice as provided in s.

 6  713.06(2) and an explanation of the owner's rights as provided

 7  in s. 713.22. The authority that issues the building permit

 8  must obtain from the Department of Business and Professional

 9  Regulation the statement required by this paragraph and must

10  mail, deliver by electronic mail or other electronic format or

11  facsimile, or personally deliver that statement to the owner

12  or, if the owner is required to personally appear to obtain

13  the permit, provide that statement to any owner making

14  improvements to real property consisting of a single or

15  multiple family dwelling up to and including four units.

16  However, the failure by the authorities to provide the summary

17  does not subject the issuing authority to liability.

18         (d)  Furnish to the applicant two or more copies of a

19  form of notice of commencement conforming with s. 713.13.  If

20  the direct contract is greater than $2,500, the applicant

21  shall file with the issuing authority prior to the first

22  inspection either a certified copy of the recorded notice of

23  commencement or a notarized statement that the notice of

24  commencement has been filed for recording, along with a copy

25  thereof.  In the absence of the filing of a certified copy of

26  the recorded notice of commencement, the issuing authority or

27  a private provider performing inspection services may shall

28  not perform or approve subsequent inspections until the

29  applicant files by mail, facsimile, hand delivery, or any

30  other means such certified copy with the issuing authority.

31  The certified copy of the notice of commencement must contain

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    Florida Senate - 2006                                   SB 588
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 1  the name and address of the owner, the name and address of the

 2  contractor, and the location or address of the property being

 3  improved. The issuing authority shall verify that the name and

 4  address of the owner, the name of the contractor, and the

 5  location or address of the property being improved which is

 6  contained in the certified copy of the notice of commencement

 7  is consistent with the information in the building permit

 8  application. The issuing authority shall provide the recording

 9  information on the certified copy of the recorded notice of

10  commencement to any person upon request. This subsection does

11  not require the recording of a notice of commencement prior to

12  the issuance of a building permit. If a local government

13  requires a separate permit or inspection for installation of

14  temporary electrical service or other temporary utility

15  service, land clearing, or other preliminary site work, such

16  permits may be issued and such inspections may be conducted

17  without providing the issuing authority with a certified copy

18  of a recorded notice of commencement or a notarized statement

19  regarding a recorded notice of commencement. This subsection

20  does not apply to a direct contract to repair or replace an

21  existing heating or air-conditioning system in an amount less

22  than $7,500 $5,000.

23         (e)  An issuing authority or a building official may

24  not require that a notice of commencement be recorded as a

25  condition of the application, processing, or issuance of a

26  building permit. However, this paragraph does not modify or

27  waive the inspection requirements set forth in this

28  subsection.

29         (4)  The several boards of county commissioners,

30  municipal councils, or other similar bodies may by ordinance

31  or resolution establish reasonable fees for furnishing copies

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    Florida Senate - 2006                                   SB 588
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 1  of the forms and the printed statement provided in paragraphs

 2  (1)(b) and (d) paragraph (1)(d) in an amount not to exceed $5

 3  to be paid by the applicant for each permit in addition to all

 4  other costs of the permit; however, the no forms or statement

 5  need not be furnished, mailed, or otherwise provided to, and

 6  nor may such additional fee may not be obtained from,

 7  applicants for permits in those cases in which the owner of a

 8  legal or equitable interest (including that of ownership of

 9  stock of a corporate landowner) of the real property to be

10  improved is engaged in the business of construction of

11  buildings for sale to others and intends to make the

12  improvements authorized by the permit on the property and upon

13  completion will offer the improved real property for sale.

14         (6)(a)  In addition to any other information required

15  by the authority issuing the permit, the building permit

16  application must be in substantially the following form:

17  

18                                           Tax Folio No.........

19                   BUILDING PERMIT APPLICATION

20  

21  Owner's Name..................................................

22  Owner's Address...............................................

23  Fee Simple Titleholder's Name (If other than owner)...........

24  Fee Simple Titleholder's Address (If other than owner)........

25  City..........................................................

26  State............ Zip............

27  Contractor's Name.............................................

28  Contractor's Address..........................................

29  City..........................................................

30  State............ Zip............

31  Job Name......................................................

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    Florida Senate - 2006                                   SB 588
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 1  Job Address...................................................

 2  City................                        County............

 3  Legal Description.............................................

 4  Bonding Company...............................................

 5  Bonding Company Address.......................................

 6  City................ State............

 7  Architect/Engineer's Name.....................................

 8  Architect/Engineer's Address..................................

 9  Mortgage Lender's Name........................................

10  Mortgage Lender's Address.....................................

11  

12         Application is hereby made to obtain a permit to do the

13  work and installations as indicated.  I certify that no work

14  or installation has commenced prior to the issuance of a

15  permit and that all work will be performed to meet the

16  standards of all laws regulating construction in this

17  jurisdiction.  I understand that a separate permit must be

18  secured for ELECTRICAL WORK, PLUMBING, SIGNS, WELLS, POOLS,

19  FURNACES, BOILERS, HEATERS, TANKS, and AIR CONDITIONERS, etc.

20  

21  OWNER'S AFFIDAVIT:  I certify that all the foregoing

22  information is accurate and that all work will be done in

23  compliance with all applicable laws regulating construction

24  and zoning.

25  

26         WARNING TO OWNER:  YOUR FAILURE TO RECORD A

27         NOTICE OF COMMENCEMENT MAY RESULT IN YOUR

28         PAYING TWICE FOR IMPROVEMENTS TO YOUR PROPERTY.

29  

30  

31  

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    Florida Senate - 2006                                   SB 588
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 1         IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH

 2         YOUR LENDER OR AN ATTORNEY BEFORE RECORDING

 3         YOUR NOTICE OF COMMENCEMENT.

 4  

 5                     ...(Signature of Owner or Agent)...

 6                            ...(including contractor)...

 7  STATE OF FLORIDA

 8  COUNTY OF ....

 9  

10  

11         Sworn to (or affirmed) and subscribed before me this

12  .... day of ...., ...(year)..., by ...(name of person making

13  statement)....

14  

15           ...(Signature of Notary Public - State of Florida)...

16           ...(Print, Type, or Stamp Commissioned Name of Notary

17  Public)...

18  

19         Personally Known .... OR Produced Identification ....

20  

21         Type of Identification Produced............

22                                 ...(Signature of Contractor)...

23  

24  

25  STATE OF FLORIDA

26  COUNTY OF ....

27  

28  

29         Sworn to (or affirmed) and subscribed before me this

30  .... day of ...., ...(year)..., by ...(name of person making

31  statement)....

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    Florida Senate - 2006                                   SB 588
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 1  

 2           ...(Signature of Notary Public - State of Florida)...

 3           ...(Print, Type, or Stamp Commissioned Name of Notary

 4  Public)...

 5  

 6         Personally Known .... OR Produced Identification ....

 7  

 8         Type of Identification Produced............

 9  

10                (Certificate of Competency Holder)

11  

12  Contractor's State Certification or Registration No.....

13  

14  Contractor's Certificate of Competency No.........

15  

16  APPLICATION APPROVED BY

17  ................Permit Officer

18  

19         (b)  Consistent with the requirements of paragraph (a),

20  an authority responsible for issuing building permits under

21  this section may accept a building permit application in an

22  electronic format, as prescribed by the authority. A building

23  permit application that is submitted electronically to the

24  authority must contain the following additional statement:

25  

26  OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of

27  perjury, I declare that all the information contained in this

28  building permit application is true and correct.

29  

30         (c)  An authority responsible for issuing building

31  permit applications which accepts building permit applications

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    Florida Senate - 2006                                   SB 588
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 1  in an electronic format must provide public Internet access to

 2  the electronic building permit applications in a searchable

 3  format.

 4         Section 3.  Section 713.35, Florida Statutes, is

 5  amended to read:

 6         713.35  Making or furnishing false statement.--Any

 7  person, firm, or corporation who knowingly and intentionally

 8  makes or furnishes to another person, firm, or corporation, a

 9  written statement in the form of an affidavit, waiver or

10  release of lien, or other document, whether or not under oath,

11  containing false information about the payment status of

12  subcontractors, sub-subcontractors, or suppliers in connection

13  with the improvement of real property in this state, knowing

14  that the one to whom it was furnished might rely on it, and

15  the one to whom it was furnished will part with draw payments

16  or final payment relying on the truth of such statement as an

17  inducement to do so commits is guilty of a felony of the third

18  degree, punishable as provided in s. 775.082 or s. 775.083. A

19  state attorney or the statewide prosecutor, upon the filing of

20  an indictment or information against a contractor,

21  subcontractor, or sub-subcontractor which charges such person

22  with a violation of this section, shall forward a copy of the

23  indictment or information to the Department of Business and

24  Professional Regulation. The Department of Business and

25  Professional Regulation shall promptly open an investigation

26  into the matter and, if probable cause is found, shall furnish

27  a copy of any investigative report to the state attorney or

28  statewide prosecutor who furnished a copy of the indictment or

29  information and to the owner of the property which is the

30  subject of the investigation.

31         Section 4.  This act shall take effect October 1, 2006.

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    Florida Senate - 2006                                   SB 588
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 1            *****************************************

 2                          SENATE SUMMARY

 3    Amends the Construction Lien Law. Amends payment
      requirements relating to notice of commencement. Revises
 4    certain requirements for notice of commencement and
      applicability of liens which pertain to certain
 5    authorities issuing building permits. Prohibits private
      providers performing inspection services from performing
 6    or approving certain inspections under certain
      circumstances. Increases a threshold amount for certain
 7    nonapplication. Prohibits issuing authorities or building
      officials from requiring recordation of a notice of
 8    commencement for certain purposes. Authorizes authorities
      issuing building permits to accept permit applications
 9    electronically. Requires that an electronic application
      include an electronic submission statement. Requires that
10    Internet access to electronically submitted building
      permit applications be provided. Provides that it is a
11    crime to knowingly and intentionally include certain
      false information in a waiver or release of lien, or
12    other document, as well as in an affidavit. Provides
      penalties for furnishing false information.
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