Senate Bill sb0588c1

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                            CS for SB 588

    By the Committee on Criminal Justice; and Senator Constantine





    591-2323-06

  1                      A bill to be entitled

  2         An act relating to liens; amending s. 713.135,

  3         F.S.; revising certain requirements for notice

  4         of commencement and applicability of liens

  5         which pertain to certain authorities issuing

  6         building permits; prohibiting private providers

  7         performing inspection services from performing

  8         or approving certain inspections under certain

  9         circumstances; increasing a threshold amount

10         for certain nonapplication; prohibiting issuing

11         authorities or building officials from

12         requiring recordation of a notice of

13         commencement for certain purposes; authorizing

14         authorities issuing building permits to accept

15         permit applications electronically; requiring

16         an electronic application to include an

17         electronic submission statement; requiring the

18         provision of Internet access to electronically

19         submitted building permit applications;

20         amending s. 713.18, F.S.; providing for

21         electronic verification of service of notices

22         and other documents; amending s. 713.35, F.S.;

23         revising the list of legal documents in which

24         it is a crime to knowingly and intentionally

25         include certain false information; providing

26         penalties; amending s. 679.705, F.S.; delaying

27         the time at which certain financing statements

28         cease to be effective; providing effective

29         dates.

30  

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

                                  1

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




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

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

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

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

 5         713.135  Notice of commencement and applicability of

 6  lien.--

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

 8  authority issuing such permit shall:

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

10  property upon which improvements are to be constructed with a

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

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

13  subject to attachment under the Construction Lien Law. The

14  Department of Business and Professional Regulation shall

15  furnish, for distribution, the statement described in this

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

17  Construction Lien Law and must include an explanation of the

18  provisions of the Construction Lien Law relating to the

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

20  commencement and a statement encouraging the owner to record a

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

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

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

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

25  713.06(2) and an explanation of the owner's rights as provided

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

27  must obtain from the Department of Business and Professional

28  Regulation the statement required by this paragraph and must

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

30  facsimile, or personally deliver that statement to the owner

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

                                  2

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1  the permit, provide that statement to any owner making

 2  improvements to real property consisting of a single or

 3  multiple family dwelling up to and including four units.

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

 5  does not subject the issuing authority to liability.

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

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

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

 9  shall file with the issuing authority prior to the first

10  inspection either a certified copy of the recorded notice of

11  commencement or a notarized statement that the notice of

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

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

14  the recorded notice of commencement, the issuing authority or

15  a private provider performing inspection services may shall

16  not perform or approve subsequent inspections until the

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

18  other means such certified copy with the issuing authority.

19  The certified copy of the notice of commencement must contain

20  the name and address of the owner, the name and address of the

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

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

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

24  location or address of the property being improved which is

25  contained in the certified copy of the notice of commencement

26  is consistent with the information in the building permit

27  application. The issuing authority shall provide the recording

28  information on the certified copy of the recorded notice of

29  commencement to any person upon request. This subsection does

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

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

                                  3

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1  requires a separate permit or inspection for installation of

 2  temporary electrical service or other temporary utility

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

 4  permits may be issued and such inspections may be conducted

 5  without providing the issuing authority with a certified copy

 6  of a recorded notice of commencement or a notarized statement

 7  regarding a recorded notice of commencement. This subsection

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

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

10  than $7,500 $5,000.

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

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

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

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

15  waive the inspection requirements set forth in this

16  subsection.

17         (4)  The several boards of county commissioners,

18  municipal councils, or other similar bodies may by ordinance

19  or resolution establish reasonable fees for furnishing copies

20  of the forms and the printed statement provided in paragraphs

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

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

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

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

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

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

27  legal or equitable interest (including that of ownership of

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

29  improved is engaged in the business of construction of

30  buildings for sale to others and intends to make the

31  

                                  4

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1  improvements authorized by the permit on the property and upon

 2  completion will offer the improved real property for sale.

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

 4  by the authority issuing the permit, the building permit

 5  application must be in substantially the following form:

 6  

 7                                           Tax Folio No.........

 8                   BUILDING PERMIT APPLICATION

 9  

10  Owner's Name..................................................

11  Owner's Address...............................................

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

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

14  City..........................................................

15  State............ Zip............

16  Contractor's Name.............................................

17  Contractor's Address..........................................

18  City..........................................................

19  State............ Zip............

20  Job Name......................................................

21  Job Address...................................................

22  City................                        County............

23  Legal Description.............................................

24  Bonding Company...............................................

25  Bonding Company Address.......................................

26  City................ State............

27  Architect/Engineer's Name.....................................

28  Architect/Engineer's Address..................................

29  Mortgage Lender's Name........................................

30  Mortgage Lender's Address.....................................

31  

                                  5

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




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

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

 3  or installation has commenced prior to the issuance of a

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

 5  standards of all laws regulating construction in this

 6  jurisdiction.  I understand that a separate permit must be

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

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

 9  

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

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

12  compliance with all applicable laws regulating construction

13  and zoning.

14  

15         WARNING TO OWNER:  YOUR FAILURE TO RECORD A

16         NOTICE OF COMMENCEMENT MAY RESULT IN YOUR

17         PAYING TWICE FOR IMPROVEMENTS TO YOUR PROPERTY.

18  

19         IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH

20         YOUR LENDER OR AN ATTORNEY BEFORE RECORDING

21         YOUR NOTICE OF COMMENCEMENT.

22  

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

24                            ...(including contractor)...

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)....

                                  6

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 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                                 ...(Signature of Contractor)...

10  

11  

12  STATE OF FLORIDA

13  COUNTY OF ....

14  

15  

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

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

18  statement)....

19  

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

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

22  Public)...

23  

24         Personally Known .... OR Produced Identification ....

25  

26         Type of Identification Produced............

27  

28                (Certificate of Competency Holder)

29  

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

31  

                                  7

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




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

 2  

 3  APPLICATION APPROVED BY

 4  ................Permit Officer

 5  

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

 7  an authority responsible for issuing building permits under

 8  this section may accept a building permit application in an

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

10  permit application that is submitted electronically to the

11  authority must contain the following additional statement in

12  lieu of the requirement that a signed, sworn, and notarized

13  signature of the owner or agent and the contractor be part of

14  the owner's affidavit:

15  

16  OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of

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

18  building permit application is true and correct.

19  

20         (c)  An authority responsible for issuing building

21  permit applications which accepts building permit applications

22  in an electronic format must provide public Internet access to

23  the electronic building permit applications in a searchable

24  format.

25         Section 2.  Paragraph (b) of subsection (1) of section

26  713.18, Florida Statutes, is amended to read:

27         713.18  Manner of serving notices and other

28  instruments.--

29         (1)  Service of notices, claims of lien, affidavits,

30  assignments, and other instruments permitted or required under

31  this part, or copies thereof when so permitted or required,

                                  8

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1  unless otherwise specifically provided in this part, must be

 2  made by one of the following methods:

 3         (b)  By sending the same by registered or certified

 4  mail, with postage prepaid, or by overnight or second-day

 5  delivery with evidence of delivery, which may be in an

 6  electronic format.

 7         1.  If a notice to owner, a notice to contractor under

 8  s. 713.23, or a preliminary notice under s. 255.05 is mailed

 9  by registered or certified mail with postage prepaid to the

10  person to be served at any of the addresses set forth in

11  subparagraph 2. within 40 days after the date the lienor first

12  furnishes labor, services, or materials, service of that

13  notice is effective as of the date of mailing if the person

14  who served the notice maintains a registered or certified mail

15  log that shows the registered or certified mail number issued

16  by the United States Postal Service, the name and address of

17  the person served, and the date stamp of the United States

18  Postal Service confirming the date of mailing, or if the

19  person who served the notice maintains electronic tracking

20  records generated through use of the United States Postal

21  Service "confirm" or similar service containing the postal

22  tracking number, the name and address of the person served,

23  and verification of the date of receipt by the United States

24  Postal Service.

25         2.  If an instrument served pursuant to this section to

26  the last address shown in the notice of commencement or any

27  amendment thereto or, in the absence of a notice of

28  commencement, to the last address shown in the building permit

29  application, or to the last known address of the person to be

30  served, is not received, but is returned as being "refused,"

31  "moved, not forwardable," or "unclaimed," or is otherwise not

                                  9

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1  delivered or deliverable through no fault of the person

 2  serving the item, then service is effective on the date the

 3  notice was sent.

 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  

                                  10

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1         Section 4.  Effective upon this act becoming a law,

 2  subsection (3) of section 679.705, Florida Statutes, is

 3  amended to read:

 4         679.705  Effectiveness of action taken before effective

 5  date.--

 6         (3)  This act does not render ineffective an effective

 7  financing statement that, before this act takes effect, is

 8  filed and satisfies the applicable requirements for perfection

 9  under the law of the jurisdiction governing perfection as

10  provided in s. 679.103, Florida Statutes 2000. However, except

11  as otherwise provided in subsections (4) and (5) and s.

12  679.706, the financing statement ceases to be effective at the

13  earlier of:

14         (a)  The time the financing statement would have ceased

15  to be effective under the law of the jurisdiction in which it

16  is filed; or

17         (b)  December 31 June 30, 2006.

18         Section 5.  Except as otherwise expressly provided in

19  this act and except for this section, which shall take effect

20  upon this act becoming a law, this act shall take effect

21  October 1, 2006.

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  11

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






    Florida Senate - 2006                            CS for SB 588
    591-2323-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 588

 3                                 

 4  -    Section 1 of the bill is deleted by the committee
         substitute. This has the effect of reinstating current
 5       law, s. 713.13(1)(c), F.S.

 6  -    Requirements for the electronic submission of a building
         permit application are clarified.
 7  
    -    A new section is added to the original bill, amending s.
 8       713.18(1)(b), F.S., to provide for electronic evidence of
         delivery of notices, claims of liens, affidavits and
 9       other instruments permitted or required under the
         construction lien law.
10  
    -    The title is amended to broaden the bill to become an act
11       relating to liens, and a section is added which corrects
         a glitch in the 2001 re-write of Article 9 of the Uniform
12       Commercial Code regarding the expiration date of
         financing statements.
13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  12

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