Senate Bill sb2768c1

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    Florida Senate - 2007                           CS for SB 2768

    By the Committee on Regulated Industries; and Senator Aronberg





    580-2467-07

  1                      A bill to be entitled

  2         An act relating to construction liens; amending

  3         s. 255.05, F.S.; requiring a performance bond

  4         for certain contracts with private entities for

  5         specified public works projects; revising

  6         requirements concerning the claimants that must

  7         provide certain notices; requiring that certain

  8         notices by claimants be in writing; amending s.

  9         713.01, F.S.; defining the term "final

10         furnishing" and redefining the term "furnish

11         materials"; creating s. 713.012, F.S.;

12         requiring that certain notices, demands, or

13         requests be in writing; amending s. 713.015,

14         F.S.; requiring that certain notices pertaining

15         to direct contracts greater than $2,500 for

16         improvements to certain property be in writing;

17         amending s. 713.02, F.S.; providing for an

18         owner and contractor to agree to the furnishing

19         of a payment bond; exempting an owner who

20         agrees from certain statutory provisions;

21         amending s. 713.07, F.S.; providing for the

22         recommencement of construction following the

23         termination of certain contracts; amending s.

24         713.08, F.S.; requiring that certain claims of

25         lien be prepared and sworn to or affirmed by

26         the lienor or various agents of the lienor;

27         revising and conforming certain exceptions to a

28         time limitation on recording of a claim of

29         lien; amending s. 713.13, F.S.; revising the

30         form for notices of commencement to include an

31         additional warning and notarized statements and

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    Florida Senate - 2007                           CS for SB 2768
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 1         signatures; providing that the failure of a

 2         person to make a specified statement under oath

 3         deprives the person of a lien; requiring that

 4         notices of commencement include the tax folio

 5         number; providing for the recording of amended

 6         notices of commencement; amending s. 713.135,

 7         F.S.; requiring that building permits contain

 8         certain written statements; amending s. 713.16,

 9         F.S.; revising provisions relating to a

10         lienor's right to demand a statement of

11         account; requiring that the claim of lien be

12         recorded; deleting provisions relating to the

13         failure to furnish the statement; amending s.

14         713.18, F.S.; providing procedures for service

15         of notices and other instruments upon a limited

16         liability company; amending s. 713.22, F.S.;

17         extending the duration of certain liens for

18         which amended claims of lien are filed;

19         amending s. 713.31, F.S.; providing for the

20         award of attorney's fees and costs to

21         prevailing parties in certain actions relating

22         to fraudulent liens; amending s. 713.36, F.S.;

23         deleting certain obsolete provisions; providing

24         an effective date.

25  

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

27  

28         Section 1.  Paragraph (a) of subsection (1) and

29  paragraph (a) of subsection (2) of section 255.05, Florida

30  Statutes, are amended to read:

31  

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    Florida Senate - 2007                           CS for SB 2768
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 1         255.05  Bond of contractor constructing public

 2  buildings; form; action by materialmen.--

 3         (1)(a)  Any person entering into a formal contract with

 4  the state or any county, city, or political subdivision

 5  thereof, or other public authority or private entity, for the

 6  construction of a public building, for the prosecution and

 7  completion of a public work, or for repairs upon a public

 8  building or public work shall be required, before commencing

 9  the work or before recommencing the work after a default or

10  abandonment, to execute, deliver to the public owner, and

11  record in the public records of the county where the

12  improvement is located, a payment and performance bond with a

13  surety insurer authorized to do business in this state as

14  surety. A public entity may not require a contractor to secure

15  a surety bond under this section from a specific agent or

16  bonding company. The bond must state on its front page: the

17  name, principal business address, and phone number of the

18  contractor, the surety, the owner of the property being

19  improved, and, if different from the owner, the contracting

20  public entity; the contract number assigned by the contracting

21  public entity; and a description of the project sufficient to

22  identify it, such as a legal description or the street address

23  of the property being improved, and a general description of

24  the improvement. Such bond shall be conditioned upon the

25  contractor's performance of the construction work in the time

26  and manner prescribed in the contract and promptly making

27  payments to all persons defined in s. 713.01 who furnish

28  labor, services, or materials for the prosecution of the work

29  provided for in the contract. Any claimant may apply to the

30  governmental entity having charge of the work for copies of

31  the contract and bond and shall thereupon be furnished with a

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    Florida Senate - 2007                           CS for SB 2768
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 1  certified copy of the contract and bond. The claimant shall

 2  have a right of action against the contractor and surety for

 3  the amount due him or her, including unpaid finance charges

 4  due under the claimant's contract. Such action shall not

 5  involve the public authority in any expense. When such work is

 6  done for the state and the contract is for $100,000 or less,

 7  no payment and performance bond shall be required. At the

 8  discretion of the official or board awarding such contract

 9  when such work is done for any county, city, political

10  subdivision, or public authority, any person entering into

11  such a contract which is for $200,000 or less may be exempted

12  from executing the payment and performance bond. When such

13  work is done for the state, the Secretary of the Department of

14  Management Services may delegate to state agencies the

15  authority to exempt any person entering into such a contract

16  amounting to more than $100,000 but less than $200,000 from

17  executing the payment and performance bond. In the event such

18  exemption is granted, the officer or officials shall not be

19  personally liable to persons suffering loss because of

20  granting such exemption. The Department of Management Services

21  shall maintain information on the number of requests by state

22  agencies for delegation of authority to waive the bond

23  requirements by agency and project number and whether any

24  request for delegation was denied and the justification for

25  the denial. Any provision in a payment bond furnished for

26  public work contracts as provided by this subsection which

27  restricts the classes of persons as defined in s. 713.01

28  protected by the bond or the venue of any proceeding relating

29  to such bond is unenforceable.

30         (2)(a)1.  If a claimant is no longer furnishing labor,

31  services, or materials on a project, a contractor or the

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    Florida Senate - 2007                           CS for SB 2768
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 1  contractor's agent or attorney may elect to shorten the

 2  prescribed time in this paragraph within which an action to

 3  enforce any claim against a payment bond provided pursuant to

 4  this section may be commenced by recording in the clerk's

 5  office a notice in substantially the following form:

 6  

 7                    NOTICE OF CONTEST OF CLAIM

 8                       AGAINST PAYMENT BOND

 9  

10  To: ...(Name and address of claimant)...

11  

12         You are notified that the undersigned contests your

13  notice of nonpayment, dated ............, ........, and served

14  on the undersigned on ............, ........, and that the

15  time within which you may file suit to enforce your claim is

16  limited to 60 days after the date of service of this notice.

17  

18         DATED on ............, .........

19  

20  Signed:...(Contractor or Attorney)...

21  

22  The claim of any claimant upon whom such notice is served and

23  who fails to institute a suit to enforce his or her claim

24  against the payment bond within 60 days after service of such

25  notice shall be extinguished automatically. The clerk shall

26  mail a copy of the notice of contest to the claimant at the

27  address shown in the notice of nonpayment or most recent

28  amendment thereto and shall certify to such service on the

29  face of such notice and record the notice. Service is complete

30  upon mailing.

31  

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    Florida Senate - 2007                           CS for SB 2768
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 1         2.  A claimant, except a laborer, who is not in privity

 2  with the contractor shall, before commencing or not later than

 3  45 days after commencing to furnish labor, services, or

 4  materials, or supplies for the prosecution of the work,

 5  furnish the contractor with a written notice that he or she

 6  intends to look to the bond for protection. A claimant who is

 7  not in privity with the contractor and who has not received

 8  payment for his or her labor, services, or materials, or

 9  supplies shall deliver to the contractor and to the surety

10  written notice of the performance of the labor or delivery of

11  the materials or supplies and of the nonpayment. The notice of

12  nonpayment may be served at any time during the progress of

13  the work or thereafter but not before 45 days after the first

14  furnishing of labor, services, or materials, and not later

15  than 90 days after the final furnishing of the labor,

16  services, or materials by the claimant or, with respect to

17  rental equipment, not later than 90 days after the date that

18  the rental equipment was last on the job site available for

19  use. Any notice of nonpayment served by a claimant who is not

20  in privity with the contractor which includes sums for

21  retainage must specify the portion of the amount claimed for

22  retainage. No action for the labor, materials, or supplies may

23  be instituted against the contractor or the surety unless both

24  notices have been given. Notices required or permitted under

25  this section may be served in accordance with s. 713.18. A

26  claimant may not waive in advance his or her right to bring an

27  action under the bond against the surety. In any action

28  brought to enforce a claim against a payment bond under this

29  section, the prevailing party is entitled to recover a

30  reasonable fee for the services of his or her attorney for

31  trial and appeal or for arbitration, in an amount to be

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    Florida Senate - 2007                           CS for SB 2768
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 1  determined by the court, which fee must be taxed as part of

 2  the prevailing party's costs, as allowed in equitable actions.

 3  The time periods for service of a notice of nonpayment or for

 4  bringing an action against a contractor or a surety shall be

 5  measured from the last day of furnishing labor, services, or

 6  materials by the claimant and shall not be measured by other

 7  standards, such as the issuance of a certificate of occupancy

 8  or the issuance of a certificate of substantial completion.

 9         Section 2.  Present subsections (12)-(28) of section

10  713.01, Florida Statutes, are redesignated as subsections

11  (13)-(29), respectively, a new subsection (12) is added to

12  that section, and present subsection (12) of that section is

13  amended, to read:

14         713.01  Definitions.--As used in this part, the term:

15         (12)  "Final furnishing" means the last date that the

16  lienor furnishes labor, services, or materials. Such date may

17  not be measured by other standards, such as the issuance of a

18  certificate of occupancy or the issuance of a certificate of

19  final completion, and does not include correction of

20  deficiencies in the lienor's previously performed work or

21  materials supplied. With respect to rental equipment, the term

22  means the date that the rental equipment was last on the job

23  site and available for use.

24         (13)(12)  "Furnish materials" means supply materials

25  which are incorporated in the improvement including normal

26  wastage in construction operations; or specially fabricated

27  materials for incorporation in the improvement, not including

28  any design work, submittals, or the like preliminary to actual

29  fabrication of the materials; or supply materials used for the

30  construction and not remaining in the improvement, subject to

31  diminution by the salvage value of such materials; and

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 1  includes supplying rental equipment tools, appliances, or

 2  machinery used on the particular improvement to the extent of

 3  the reasonable rental value for the period of actual use (not

 4  determinable by the contract for rental unless the owner is a

 5  party thereto), but does not include supplying handtools.  The

 6  delivery of materials to the site of the improvement is prima

 7  facie evidence of incorporation of such materials in the

 8  improvement. The delivery of rental equipment to the site of

 9  the improvement is prima facie evidence of the period of the

10  actual use of the rental equipment from the delivery through

11  the time the equipment is last available for use at the site,

12  or 2 business days after the lessor of the rental equipment

13  receives a written notice from the owner or the lessee of the

14  rental equipment to pick up the equipment, whichever occurs

15  first.

16         Section 3.  Section 713.012, Florida Statutes, is

17  created to read:

18         713.012  Written notices, demands, or

19  requests.--Notices, demands, or requests permitted or required

20  under this part, except any required by s. 713.14, must be in

21  writing.

22         Section 4.  Section 713.015, Florida Statutes, is

23  amended to read:

24         713.015  Mandatory provisions for direct contracts.--

25         (1)  Any direct contract greater than $2,500 between an

26  owner and a contractor, related to improvements to real

27  property consisting of single or multiple family dwellings up

28  to and including four units, must contain the following

29  provision printed in no less than 12-point 14-point,

30  capitalized, boldfaced type on the front page of the contract

31  or on a separate page, signed by the owner, and dated:

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    Florida Senate - 2007                           CS for SB 2768
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 1  

 2  ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS

 3  713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR

 4  PROPERTY OR PROVIDE MATERIALS OR SERVICES AND ARE NOT PAID IN

 5  FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST

 6  YOUR PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF

 7  YOUR CONTRACTOR OR A SUBCONTRACTOR FAILS TO PAY

 8  SUBCONTRACTORS, SUB-SUBCONTRACTORS, OR MATERIAL SUPPLIERS,

 9  THOSE THE PEOPLE WHO ARE OWED MONEY MAY LOOK TO YOUR PROPERTY

10  FOR PAYMENT, EVEN IF YOU HAVE ALREADY PAID YOUR CONTRACTOR IN

11  FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR, YOUR CONTRACTOR MAY

12  ALSO HAVE A LIEN ON YOUR PROPERTY. THIS MEANS IF A LIEN IS

13  FILED YOUR PROPERTY COULD BE SOLD AGAINST YOUR WILL TO PAY FOR

14  LABOR, MATERIALS, OR OTHER SERVICES THAT YOUR CONTRACTOR OR A

15  SUBCONTRACTOR MAY HAVE FAILED TO PAY. TO PROTECT YOURSELF, YOU

16  SHOULD STIPULATE IN THIS CONTRACT THAT BEFORE ANY PAYMENT IS

17  MADE, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH A

18  WRITTEN RELEASE OF LIEN FROM ANY PERSON OR COMPANY THAT HAS

19  PROVIDED TO YOU A "NOTICE TO OWNER." FLORIDA'S CONSTRUCTION

20  LIEN LAW IS COMPLEX, AND IT IS RECOMMENDED THAT YOU CONSULT AN

21  ATTORNEY.

22         (2)(a)  If the contract is written, the notice must be

23  in the contract document. If the contract is oral or implied,

24  the notice must be provided in a document referencing the

25  contract.

26         (b)  The failure to provide such written notice does

27  not bar the enforcement of a lien against a person who has not

28  been adversely affected.

29         (c)  Nothing in This section may not shall be construed

30  to adversely affect the lien and bond rights of lienors who

31  are not in privity with the owner. This section does not apply

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 1  when the owner is a contractor licensed under chapter 489 or

 2  is a person who created parcels or offers parcels for sale or

 3  lease in the ordinary course of business.

 4         Section 5.  Subsection (6) of section 713.02, Florida

 5  Statutes, is amended to read:

 6         713.02  Types of lienors and exemptions.--

 7         (6)  In any direct contract The owner and contractor

 8  may agree that require the contractor shall to furnish a

 9  payment bond as provided in s. 713.23, and upon receipt of the

10  bond the owner is shall be exempt from the other provisions of

11  this part as to that direct contract, but this does not exempt

12  the owner from the lien of the contractor who furnishes the

13  bond.  If the bond is provided, it shall secure all liens

14  subsequently accruing under this part as provided in s.

15  713.23.

16         Section 6.  Subsection (4) of section 713.07, Florida

17  Statutes, is amended to read:

18         713.07  Priority of liens.--

19         (4)  If construction ceases or the direct contract is

20  terminated before completion and the owner desires to

21  recommence construction, he or she may pay all lienors in full

22  or pro rata in accordance with s. 713.06(4) prior to

23  recommencement in which event all liens for the recommenced

24  construction shall take priority from such recommencement; or

25  the owner may record an affidavit in the clerk's office

26  stating his or her intention to recommence construction and

27  that all lienors giving notice have been paid in full except

28  those listed therein as not having been so paid in which event

29  30 days after such recording, the rights of any person

30  acquiring any interest, lien, or encumbrance on said property

31  or of any lienor on the recommenced construction shall be

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 1  paramount to any lien on the prior construction unless such

 2  prior lienor records a claim of lien within said 30-day

 3  period.  A copy of said affidavit shall be served on each

 4  lienor named therein. Before recommencing, the owner shall

 5  record and post a notice of commencement for the recommenced

 6  construction, as provided in s. 713.13.

 7         Section 7.  Subsections (2) and (5) of section 713.08,

 8  Florida Statutes, are amended to read:

 9         713.08  Claim of lien.--

10         (2)  The claim of lien may be prepared by the lienor or

11  the lienor's employee or attorney and shall be signed and

12  sworn to or affirmed verified by the lienor or the lienor's

13  her or his agent acquainted with the facts stated therein.

14         (5)  The claim of lien may be recorded at any time

15  during the progress of the work or thereafter but not later

16  than 90 days after the final furnishing of the labor or

17  services or materials by the lienor. However,; or, with

18  respect to rental equipment, within 90 days after the date

19  that the rental equipment was last on the job site available

20  for use; provided if the original contractor defaults or the

21  contract is terminated under s. 713.07(4), a no claim for a

22  lien attaching prior to such termination may not default shall

23  be recorded after 90 days following from the date of such

24  termination default or 90 days after the final performance of

25  labor or services or furnishing of materials, whichever occurs

26  first. The time period for recording a claim of lien shall be

27  measured from the last day of furnishing of labor, services,

28  or materials by the lienor, whichever occurs first and shall

29  not be measured by other standards, such as the issuance of a

30  certificate of occupancy or the issuance of a certificate of

31  substantial completion. The claim of lien shall be recorded in

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 1  the clerk's office.  If such real property is situated in two

 2  or more counties, the claim of lien shall be recorded in the

 3  clerk's office in each of such counties.  The recording of the

 4  claim of lien shall be constructive notice to all persons of

 5  the contents and effect of such claim.  The validity of the

 6  lien and the right to record a claim therefor shall not be

 7  affected by the insolvency, bankruptcy, or death of the owner

 8  before the claim of lien is recorded.

 9         Section 8.  Paragraphs (a) and (d) of subsection (1) of

10  section 713.13, Florida Statutes, are amended, present

11  subsections (5) and (6) of that section are redesignated as

12  subsections (6) and (7), respectively, and a new subsection

13  (5) is added to that section, to read:

14         713.13  Notice of commencement.--

15         (1)(a)  Except for an improvement that is exempt

16  pursuant to s. 713.02(5), an owner or the owner's authorized

17  agent before actually commencing to improve any real property,

18  or recommencing completion of any improvement after default or

19  abandonment, whether or not a project has a payment bond

20  complying with s. 713.23, shall record a notice of

21  commencement in the clerk's office and forthwith post either a

22  certified copy thereof or a notarized statement that the

23  notice of commencement has been filed for recording along with

24  a copy thereof.  The notice of commencement shall contain the

25  following information:

26         1.  A description sufficient for identification of the

27  real property to be improved.  The description should include

28  the legal description of the property and also should include

29  the street address and tax folio number of the property if

30  available or, if there is no street address available, such

31  

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 1  additional information as will describe the physical location

 2  of the real property to be improved.

 3         2.  A general description of the improvement.

 4         3.  The name and address of the owner, the owner's

 5  interest in the site of the improvement, and the name and

 6  address of the fee simple titleholder, if other than such

 7  owner.

 8         4.  The name and address of the contractor.

 9         5.  The name and address of the surety on the payment

10  bond under s. 713.23, if any, and the amount of such bond.

11         6.  The name and address of any person making a loan

12  for the construction of the improvements.

13         7.  The name and address within the state of a person

14  other than himself or herself who may be designated by the

15  owner as the person upon whom notices or other documents may

16  be served under this part; and service upon the person so

17  designated constitutes service upon the owner.

18         (d)  A notice of commencement must be in substantially

19  the following form:

20  Permit No.....                               Tax Folio No.....

21                      NOTICE OF COMMENCEMENT

22  State of....

23  County of....

24  

25  The undersigned hereby gives notice that improvement will be

26  made to certain real property, and in accordance with Chapter

27  713, Florida Statutes, the following information is provided

28  in this Notice of Commencement.

29         1.  Description of property:  ...(legal description of

30  the property, and street address if available)....

31         2.  General description of improvement:.....

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 1         3.  Owner information:.....

 2         a.  Name and address:.....

 3         b.  Interest in property:.....

 4         c.  Name and address of fee simple titleholder (if

 5  other than Owner):.....

 6         4.a.  Contractor:  ...(name and address)....

 7         b.  Contractor's phone number:.....

 8         5.  Surety

 9         a.  Name and address:.....

10         b.  Phone number:.....

11         c.  Amount of bond: $.....

12         6.a.  Lender:  ...(name and address)....

13         b.  Lender's phone number:.....

14         7.a.  Persons within the State of Florida designated by

15  Owner upon whom notices or other documents may be served as

16  provided by Section 713.13(1)(a)7., Florida Statutes:

17  ...(name and address)....

18         b.  Phone numbers of designated persons:.....

19         8.a.  In addition to himself or herself, Owner

20  designates ............ of ............ to receive a copy of

21  the Lienor's Notice as provided in Section 713.13(1)(b),

22  Florida Statutes.

23         b.  Phone number of person or entity designated by

24  owner:.....

25         9.  Expiration date of notice of commencement (the

26  expiration date is 1 year from the date of recording unless a

27  different date is specified).....

28  

29  WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE

30  EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED

31  IMPROPER PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13,

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 1  FLORIDA STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR

 2  IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST

 3  BE RECORDED AND POSTED ON THE JOB SITE BEFORE THE FIRST

 4  INSPECTION. IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH

 5  YOUR LENDER OR AN ATTORNEY BEFORE COMMENCING WORK OR RECORDING

 6  YOUR NOTICE OF COMMENCEMENT.

 7  

 8                    ...(Signature of Owner or Owner's Authorized

 9                            Officer/Director/Partner/Manager)...

10  

11                                ...(Signatory's Title/Office)...

12  

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

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

15  statement)....

16  

17  The foregoing instrument was acknowledged before me this _____

18  day of __________,  (year) , by  (name of person)  as  (type

19  of authority, . . . e.g. officer, trustee, attorney in fact)

20  for (name of party on behalf of whom instrument was executed).

21  

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

23  

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

25  Public)...

26  

27  Personally Known .... OR Produced Identification ....

28  

29  Type of Identification Produced............

30  

31  Verification pursuant to s. 92.525, Florida Statutes.

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 1  

 2  Under penalties of perjury, I declare that I have read the

 3  foregoing and that the facts stated in it are true to the best

 4  of my knowledge and belief.

 5  

 6  (Signature of Natural Person Signing Above)

 7         (5)(a)  A notice of commencement that is recorded

 8  within the effective period may be amended to extend the

 9  effective period, to change erroneous information in the

10  original notice, or to add information that was omitted from

11  the original notice. However, in order to change contractors,

12  a new notice of commencement or notice of recommencement must

13  be executed and recorded.

14         (b)  The amended notice must identify the official

15  records book and page where the original notice of

16  commencement is recorded, and a copy of the amended notice

17  must be served by the owner upon the contractor and each

18  lienor who serves notice before or within 30 days after the

19  date the amended notice is recorded.

20         Section 9.  Paragraph (a) of subsection (1) and

21  paragraph (a) of subsection (6) of section 713.135, Florida

22  Statutes, are amended to read:

23         713.135  Notice of commencement and applicability of

24  lien.--

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

26  authority issuing such permit shall:

27         (a)  Print on the face of each permit card in no less

28  than 14-point 18-point, capitalized, boldfaced type:  "WARNING

29  TO OWNER: YOUR FAILURE TO RECORD A NOTICE OF COMMENCEMENT MAY

30  RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS TO YOUR PROPERTY.

31  A NOTICE OF COMMENCEMENT MUST BE RECORDED AND POSTED ON THE

                                  16

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    Florida Senate - 2007                           CS for SB 2768
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 1  JOB SITE BEFORE THE FIRST INSPECTION. IF YOU INTEND TO OBTAIN

 2  FINANCING, CONSULT WITH YOUR LENDER OR AN ATTORNEY BEFORE

 3  RECORDING YOUR NOTICE OF COMMENCEMENT."

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

 5  by the authority issuing the permit, the building permit

 6  application must be in substantially the following form:

 7  

 8                                           Tax Folio No.........

 9                   BUILDING PERMIT APPLICATION

10  

11  Owner's Name..................................................

12  Owner's Address...............................................

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

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

15  City..........................................................

16  State............ Zip............

17  Contractor's Name.............................................

18  Contractor's Address..........................................

19  City..........................................................

20  State............ Zip............

21  Job Name......................................................

22  Job Address...................................................

23  City................                        County............

24  Legal Description.............................................

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

26  Bonding Company Address.......................................

27  City................ State............

28  Architect/Engineer's Name.....................................

29  Architect/Engineer's Address..................................

30  Mortgage Lender's Name........................................

31  Mortgage Lender's Address.....................................

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    Florida Senate - 2007                           CS for SB 2768
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 1  

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

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

 4  or installation has commenced prior to the issuance of a

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

 6  standards of all laws regulating construction in this

 7  jurisdiction.  I understand that a separate permit must be

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

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

10  

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

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

13  compliance with all applicable laws regulating construction

14  and zoning.

15  

16         WARNING TO OWNER:  YOUR FAILURE TO RECORD A

17         NOTICE OF COMMENCEMENT MAY RESULT IN YOUR

18         PAYING TWICE FOR IMPROVEMENTS TO YOUR PROPERTY.

19         A NOTICE OF COMMENCEMENT MUST BE RECORDED AND

20         POSTED ON THE JOB SITE BEFORE THE FIRST

21         INSPECTION.

22  

23         IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH

24         YOUR LENDER OR AN ATTORNEY BEFORE COMMENCING

25         WORK OR RECORDING YOUR NOTICE OF COMMENCEMENT.

26  

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

28  

29                            ...(including contractor)...

30  STATE OF FLORIDA

31  COUNTY OF ....

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 1  

 2  

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

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

 5  statement)....

 6  

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

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

 9  Public)...

10  

11         Personally Known .... OR Produced Identification ....

12  

13         Type of Identification Produced............

14                                 ...(Signature of Contractor)...

15  

16  

17  STATE OF FLORIDA

18  COUNTY OF ....

19  

20  

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

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

23  statement)....

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

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

26  Public)...

27  

28         Personally Known .... OR Produced Identification ....

29  

30         Type of Identification Produced............

31  

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    Florida Senate - 2007                           CS for SB 2768
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 1                (Certificate of Competency Holder)

 2  

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

 4  

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

 6  

 7  APPLICATION APPROVED BY

 8  ................Permit Officer

 9         Section 10.  Subsections (2), (5), and (6) of section

10  713.16, Florida Statutes, are amended to read:

11         713.16  Demand for copy of contract and statements of

12  account; form.--

13         (2)  The owner may serve in writing a demand of any

14  lienor for a written statement under oath of his or her

15  account showing the nature of the labor or services performed

16  and to be performed, if any, the materials furnished, the

17  materials to be furnished, if known, the amount paid on

18  account to date, the amount due, and the amount to become due,

19  if known, as of the date of the statement by the lienor. Any

20  such demand to a lienor must be served on the lienor at the

21  address and to the attention of any person who is designated

22  to receive the demand in the notice to owner served by such

23  lienor. The failure or refusal to furnish the statement does

24  not deprive the lienor of his or her lien if the demand is not

25  served at the address of the lienor or directed to the

26  attention of the person designated to receive the demand in

27  the notice to owner. The failure or refusal to furnish the

28  statement under oath within 30 days after the demand, or the

29  furnishing of a false or fraudulent statement, deprives the

30  person so failing or refusing to furnish such statement of his

31  or her lien. If the owner serves more than one demand for

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    Florida Senate - 2007                           CS for SB 2768
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 1  statement of account on a lienor and none of the information

 2  regarding the account has changed since the lienor's last

 3  response to a demand, the failure or refusal to furnish such

 4  statement does not deprive the lienor of his or her lien. The

 5  negligent inclusion or omission of any information deprives

 6  the person of his or her lien to the extent the owner can

 7  demonstrate prejudice from such act or omission by the lienor.

 8  The failure to furnish a response to a demand for statement of

 9  account does not affect the validity of any claim of lien

10  being enforced through a foreclosure case filed prior to the

11  date the demand for statement is received by the lienor.

12         (5)(a)  Any lienor who has recorded filed a claim of

13  lien may make written demand on the owner for a written

14  statement under oath showing:

15         1.  The amount of the all direct contract under which

16  the lien was recorded; contracts; the amount paid by or on

17  behalf of the owner for all labor, services, and materials

18  furnished pursuant to the direct contracts;

19         2.  The dates and amounts paid or to be paid by or on

20  behalf of the owner for all improvements described in the any

21  direct contract contracts; and

22         3.  The reasonable estimated costs of completing the,

23  according to the terms and specifications of same, any direct

24  contract under which the lien was claimed pursuant to the

25  scope of the direct contract; and construction has ceased.

26         4.  If known, the actual cost of completion must be

27  provided.

28         (b)  Any owner who does not provide the statement

29  within 30 days after demand, or who provides a false or

30  fraudulent statement, is not a prevailing party for purposes

31  of an award of attorney's fees under s. 713.29. The written

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    Florida Senate - 2007                           CS for SB 2768
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 1  demand must include the following warning in conspicuous type

 2  in substantially the following form:

 3  

 4         WARNING: YOUR FAILURE TO FURNISH THE REQUESTED

 5  STATEMENT WITHIN 30 DAYS OR THE FURNISHING OF A FALSE

 6  STATEMENT WILL RESULT IN THE LOSS OF YOUR RIGHT TO RECOVER

 7  ATTORNEY FEES IN ANY ACTION TO ENFORCE THE CLAIM OF LIEN OF

 8  THE PERSON REQUESTING THIS STATEMENT.

 9         (6)  For purposes of this section, the term

10  "information" means the nature and quantity of the labor,

11  services, and materials furnished or to be furnished by a

12  lienor and the amount paid, the amount due, and the amount to

13  become due on the lienor's account. The failure to furnish the

14  statement under oath does not constitute an omission of

15  information and shall deprive the lienor of his or her lien.

16         Section 11.  Section 713.18, Florida Statutes, is

17  amended to read:

18         713.18  Manner of serving notices and other

19  instruments.--

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

21  assignments, and other instruments permitted or required under

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

23  unless otherwise specifically provided in this part, must be

24  made by one of the following methods:

25         (a)  By actual delivery to the person to be served; or,

26  if a partnership, to one of the partners; or, if a

27  corporation, to an officer, director, managing agent, or

28  business agent; or, if a limited liability company, to a

29  member or manager thereof.

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

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

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

 2  electronic format.

 3         (c)  If neither method can be accomplished, by posting

 4  on the premises.

 5         (2)1.  Notwithstanding subsection (1), if a notice to

 6  owner, a notice to contractor under s. 713.23, or a

 7  preliminary notice under s. 255.05 is mailed by registered or

 8  certified mail with postage prepaid to the person to be served

 9  at any of the addresses set forth in subsection (3)

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

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

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

13  who served the notice maintains a registered or certified mail

14  log that shows the registered or certified mail number issued

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

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

17  Postal Service confirming the date of mailing or if the person

18  who served the notice maintains electronic tracking records

19  generated through use of the United States Postal Service

20  Confirm service or a similar service containing the postal

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

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

23  Postal Service.

24         (3)2.  If an instrument served pursuant to this section

25  to the last address shown in the notice of commencement or any

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

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

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

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

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

31  delivered or deliverable through no fault of the person

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    Florida Senate - 2007                           CS for SB 2768
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 1  serving the item, then service is effective on the date the

 2  instrument notice was sent.

 3         (c)  If none of the foregoing methods can be

 4  accomplished, by posting on the premises.

 5         (4)(2)  If the real property is owned by more than one

 6  person or a partnership, a lienor may serve any notices or

 7  other papers under this part on any one of such owners or

 8  partners, and such notice is deemed notice to all owners and

 9  partners.

10         Section 12.  Subsection (1) of section 713.22, Florida

11  Statutes, is amended to read:

12         713.22  Duration of lien.--

13         (1)  No lien provided by this part shall continue for a

14  longer period than 1 year after the claim of lien has been

15  recorded or 1 year after the recording of an amended claim of

16  lien that shows a later date of final furnishing of labor,

17  services, or materials, unless within that time an action to

18  enforce the lien is commenced in a court of competent

19  jurisdiction.  The continuation of the lien effected by the

20  commencement of the action shall not be good against creditors

21  or subsequent purchasers for a valuable consideration and

22  without notice, unless a notice of lis pendens is recorded.

23         Section 13.  Paragraph (c) of subsection (2) of section

24  713.31, is amended to read:

25         713.31  Remedies in case of fraud or collusion.--

26         (2)

27         (c)  An owner against whose interest in real property a

28  fraudulent lien is filed, or any contractor, subcontractor, or

29  sub-subcontractor who suffers damages as a result of the

30  filing of the fraudulent lien, shall have a right of action

31  for damages occasioned thereby.  The action may be instituted

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 1  independently of any other action, or in connection with a

 2  summons to show cause under s. 713.21, or as a counterclaim or

 3  cross-claim to any action to enforce or to determine the

 4  validity of the lien. The prevailing party in an action under

 5  this paragraph may recover reasonable attorney's fees and

 6  costs. If the lienor who files a fraudulent lien is not the

 7  prevailing party, the lienor shall be liable to the owner or

 8  the defrauded party who prevails in an action under this

 9  subsection in damages, which shall include court costs,

10  clerk's fees, a reasonable attorney's fee and costs for

11  services in securing the discharge of the lien, the amount of

12  any premium for a bond given to obtain the discharge of the

13  lien, interest on any money deposited for the purpose of

14  discharging the lien, and punitive damages in an amount not

15  exceeding the difference between the amount claimed by the

16  lienor to be due or to become due and the amount actually due

17  or to become due.

18         Section 14.  Section 713.36, Florida Statutes, is

19  amended to read:

20         713.36  Effective date.--Chapter 63-135 shall take

21  effect at 12:01 a.m., October 1, 1963.  The rights of all

22  persons with respect to an improvement that has a time of

23  visible commencement prior to October 1, 1963, shall be

24  determined and enforced as provided in former ss. 84.01-84.35,

25  as they existed prior to October 1, 1963.  As to all other

26  rights, former ss. 84.01-84.35 are repealed concurrently with

27  the effective time of this part.

28         Section 15.  This act shall take effect July 1, 2007.

29  

30  

31  

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    Florida Senate - 2007                           CS for SB 2768
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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2768

 3                                 

 4  The committee substitute (CS) adds conforming language to s.
    255.05, F.S., that is used throughout ch. 713, Part I.
 5  
    It clarifies the period of actual use of rental equipment for
 6  determining lien amounts in the definition of "furnish
    materials."
 7  
    It corrects a statutory cross reference in s. 713.012, F.S.
 8  
    It provides that mandatory provisions for direct contracts
 9  must be for those contracts greater than $2500 between an
    owner and a contractor.
10  
    It provides that a claim of lien may be prepared by the
11  lienor's employee or attorney and affirmed by the lienor's
    agent.
12  
    It updates the notary provisions in the Notice of Commencement
13  form.

14  It provides that a notice of commencement must be recorded and
    posted on the job site before the first inspection.
15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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