Senate Bill sb0498

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    Florida Senate - 2007                                   SB 498

    By Senator Saunders





    37-477-07

  1                      A bill to be entitled

  2         An act relating to the Construction Lien Law;

  3         amending s. 713.135, F.S.; clarifying

  4         provisions requiring that an applicant for a

  5         building permit record a notice of commencement

  6         before the permit is issued if the contract

  7         involves greater than a specified amount of

  8         money; revising requirements for the notice

  9         that appears on the permit card and on the

10         application for a building permit; authorizing

11         an authority that issues building permits to

12         accept notices of commencement in an electronic

13         format; requiring that the authority provide

14         access to electronic notices of commencement in

15         a searchable format by means of the Internet;

16         providing an effective date.

17  

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

19  

20         Section 1.  Section 713.135, Florida Statutes, is

21  amended to read:

22         713.135  Notice of commencement and applicability of

23  lien.--

24         (1)  An authority that issues building permits may not

25  issue a permit for a direct contract in an amount greater than

26  $2,500 unless the applicant files, along with the application,

27  a certified copy of the recorded notice of commencement or a

28  notarized statement that the notice of commencement has been

29  filed for recording. When any person applies for a building

30  permit, The authority issuing such permit shall:

31  

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    Florida Senate - 2007                                   SB 498
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 1         (a)  Print on the face of each permit card in no less

 2  than 18-point, capitalized, boldfaced type in substantially

 3  the following form:

 4  

 5         "WARNING TO OWNER:

 6  

 7         YOU MUST OBTAIN A RELEASE OF LIEN BEFORE YOU

 8         PAY ANY INSTALLMENTS ON A CONTRACT.

 9  

10         DO NOT PAY THE CONTRACT IN FULL BEFORE THE

11         CONTRACT HAS BEEN COMPLETED.

12  

13         YOUR FAILURE TO RECORD A NOTICE OF COMMENCEMENT

14         MAY RESULT IN YOUR PAYING TWICE FOR

15         IMPROVEMENTS TO YOUR PROPERTY.  IF YOU INTEND

16         TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER

17         OR AN ATTORNEY BEFORE RECORDING YOUR NOTICE OF

18         COMMENCEMENT."

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

20  property upon which improvements are to be constructed with a

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

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

23  subject to attachment under the Construction Lien Law. The

24  Department of Business and Professional Regulation shall

25  furnish, for distribution, the statement described in this

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

27  Construction Lien Law and must include an explanation of the

28  provisions of the Construction Lien Law relating to the

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

30  commencement and a statement indicating that encouraging the

31  owner must to record a notice of commencement and post a copy

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    Florida Senate - 2007                                   SB 498
    37-477-07




 1  of the notice of commencement in accordance with s. 713.13.

 2  The statement must also contain an explanation of the owner's

 3  rights if a lienor fails to furnish the owner with a notice as

 4  provided in s. 713.06(2) and an explanation of the owner's

 5  rights as provided in s. 713.22. The authority that issues the

 6  building permit must obtain from the Department of Business

 7  and Professional Regulation the statement required by this

 8  paragraph and must mail, deliver by electronic mail or other

 9  electronic format or facsimile, or personally deliver that

10  statement to the owner or, in a case in which the owner is

11  required to personally appear to obtain the permit, provide

12  that statement to any owner making improvements to real

13  property consisting of a single or multiple family dwelling up

14  to and including four units. However, the failure by the

15  authorities to provide the summary does not subject the

16  issuing authority to liability.

17         (c)  In addition to providing the owner with the

18  statement as required by paragraph (b), inform each applicant

19  who is not the person whose right, title, and interest is

20  subject to attachment that, as a condition to the issuance of

21  a building permit, the applicant must promise in good faith

22  that the statement will be delivered to the person whose

23  property is subject to attachment.

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

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

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

27  shall file with the issuing authority prior to the first

28  inspection either a certified copy of the recorded notice of

29  commencement or a notarized statement that the notice of

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

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

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    Florida Senate - 2007                                   SB 498
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 1  the recorded notice of commencement, the issuing authority or

 2  a private provider performing inspection services may not

 3  perform or approve subsequent inspections until the applicant

 4  files by mail, facsimile, hand delivery, or any other means

 5  such certified copy with the issuing authority. The certified

 6  copy of the notice of commencement must contain the name and

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

 8  and the location or address of the property being improved.

 9  The issuing authority shall verify that the name and address

10  of the owner, the name of the contractor, and the location or

11  address of the property being improved which is contained in

12  the certified copy of the notice of commencement is consistent

13  with the information in the building permit application. The

14  issuing authority shall provide the recording information on

15  the certified copy of the recorded notice of commencement to

16  any person upon request. This subsection requires does not

17  require the recording of a notice of commencement prior to the

18  issuance of a building permit if the permit is for a direct

19  contract in an amount greater than $2,500. If a local

20  government requires a separate permit or inspection for

21  installation of temporary electrical service or other

22  temporary utility service, land clearing, or other preliminary

23  site work, such permits may be issued and such inspections may

24  be conducted without providing the issuing authority with a

25  certified copy of a recorded notice of commencement or a

26  notarized statement regarding a recorded notice of

27  commencement. This subsection does not apply to a direct

28  contract to repair or replace an existing heating or

29  air-conditioning system in an amount less than $7,500.

30         (e)  Not require that a notice of commencement be

31  recorded as a condition of the application for, or processing

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    Florida Senate - 2007                                   SB 498
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 1  or issuance of, a building permit. However, this paragraph

 2  does not modify or waive the inspection requirements set forth

 3  in this subsection.

 4         (2)  An issuing authority under subsection (1) is not

 5  liable in any civil action for the failure of the person whose

 6  property is subject to attachment to receive or to be

 7  delivered a printed statement stating that the right, title,

 8  and interest of the person who has contracted for the

 9  improvement may be subject to attachment under the

10  Construction Lien Law.

11         (3)  An issuing authority under subsection (1) is not

12  liable in any civil action for the failure to verify that a

13  certified copy of the recorded notice of commencement has been

14  filed in accordance with this section.

15         (4)  The several boards of county commissioners,

16  municipal councils, or other similar bodies may by ordinance

17  or resolution establish reasonable fees for furnishing copies

18  of the forms and the printed statement provided in paragraphs

19  (1)(b) and (d) in an amount not to exceed $5 to be paid by the

20  applicant for each permit in addition to all other costs of

21  the permit; however, no forms or statement need be furnished,

22  mailed, or otherwise provided to, nor may such additional fee

23  be obtained from, applicants for permits in those cases in

24  which the owner of a legal or equitable interest (including

25  that of ownership of stock of a corporate landowner) of the

26  real property to be improved is engaged in the business of

27  construction of buildings for sale to others and intends to

28  make the improvements authorized by the permit on the property

29  and upon completion will offer the improved real property for

30  sale.

31  

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    Florida Senate - 2007                                   SB 498
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 1         (5)  In addition to any other information required by

 2  the authority issuing the permit, each building permit

 3  application must contain:

 4         (a)  The name and address of the owner of the real

 5  property;

 6         (b)  The name and address of the contractor;

 7         (c)  A description sufficient to identify the real

 8  property to be improved; and

 9         (d)  The number or identifying symbol assigned to the

10  building permit by the issuing authority, which number or

11  symbol must be affixed to the application by the issuing

12  authority.

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

14  by the authority issuing the permit, the building permit

15  application must be in substantially the following form:

16  

17                                           Tax Folio No.........

18                   BUILDING PERMIT APPLICATION

19  

20  Owner's Name..................................................

21  Owner's Address...............................................

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

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

24  City..........................................................

25  State............ Zip............

26  Contractor's Name.............................................

27  Contractor's Address..........................................

28  City..........................................................

29  State............ Zip............

30  Job Name......................................................

31  Job Address...................................................

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    Florida Senate - 2007                                   SB 498
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 1  City................                        County............

 2  Legal Description.............................................

 3  Bonding Company...............................................

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

 5  City................ State............

 6  Architect/Engineer's Name.....................................

 7  Architect/Engineer's Address..................................

 8  Mortgage Lender's Name........................................

 9  Mortgage Lender's Address.....................................

10  

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

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

13  or installation has commenced prior to the issuance of a

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

15  standards of all laws regulating construction in this

16  jurisdiction.  I understand that a separate permit must be

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

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

19  

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

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

22  compliance with all applicable laws regulating construction

23  and zoning.

24  

25         WARNING TO OWNER:

26  

27         YOU MUST OBTAIN A RELEASE OF LIEN BEFORE YOU

28         PAY ANY INSTALLMENTS ON A CONTRACT.

29  

30         DO NOT PAY THE CONTRACT IN FULL BEFORE THE

31         CONTRACT HAS BEEN COMPLETED.

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    Florida Senate - 2007                                   SB 498
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 1  

 2         YOUR FAILURE TO RECORD A NOTICE OF COMMENCEMENT

 3         MAY RESULT IN YOUR PAYING TWICE FOR

 4         IMPROVEMENTS TO YOUR PROPERTY.

 5  

 6         IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH

 7         YOUR LENDER OR AN ATTORNEY BEFORE RECORDING

 8         YOUR NOTICE OF COMMENCEMENT.

 9  

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

11  

12                            ...(including contractor)...

13  STATE OF FLORIDA

14  COUNTY OF ....

15  

16  

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

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

19  statement)....

20  

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

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

23  Public)...

24  

25         Personally Known .... OR Produced Identification ....

26  

27         Type of Identification Produced............

28                                 ...(Signature of Contractor)...

29  

30  

31  STATE OF FLORIDA

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    Florida Senate - 2007                                   SB 498
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 1  COUNTY OF ....

 2  

 3  

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

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

 6  statement)....

 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  

15                (Certificate of Competency Holder)

16  

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

18  

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

20  

21  APPLICATION APPROVED BY

22  ................Permit Officer

23  

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

25  an authority responsible for issuing building permits under

26  this section may accept a building permit application and

27  notice of commencement in an electronic format, as prescribed

28  by the authority. Building permit applications and notices of

29  commencement submitted to the authority electronically must

30  contain the following additional statement in lieu of the

31  requirement in paragraph (a) that a signed, sworn, and

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    Florida Senate - 2007                                   SB 498
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 1  notarized signature of the owner or agent and the contractor

 2  be part of the owner's affidavit:

 3  

 4  OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of

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

 6  building permit application and notice of commencement is true

 7  and correct.

 8         (c)  An authority responsible for issuing building

 9  permits permit applications which accepts building permit

10  applications and notices of commencement in an electronic

11  format shall provide public Internet access to the electronic

12  building permit applications and notices of commencement in a

13  searchable format.

14         (7)  This section applies to every municipality and

15  county in the state which now has or hereafter may have a

16  system of issuing building permits for the construction of

17  improvements or for the alteration or repair of improvements

18  on or to real property located within the geographic limits of

19  the issuing authority.

20         Section 2.  This act shall take effect July 1, 2007.

21  

22            *****************************************

23                          SENATE SUMMARY

24    Requires an applicant for a building permit to record a
      notice of commencement before the permit is issued if the
25    permit authorizes a contract of more than $2,500.
      Requires that the permit card and application for a
26    building permit provide additional notices. Authorizes an
      authority issuing building permits to accept notices of
27    commencement in an electronic format. Requires that the
      authority provide public access to such notices via the
28    Internet.

29  

30  

31  

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