Florida Senate - 2008 COMMITTEE AMENDMENT

Bill No. SB 2194

138458

CHAMBER ACTION

Senate

House

The Committee on Regulated Industries (Aronberg) recommended the

following amendment:

Senate Amendment (with title amendment)

Delete everything after the enacting clause

and insert:

Section 1. Section 489.105, Florida Statutes, is amended to

read:

489.105 Definitions.--As used in this part:

(1) "Board" means the Construction Industry Licensing

Board.

(2) "Department" means the Department of Business and

Professional Regulation.

(3) "Contractor" means the person who is qualified for, and

shall only be responsible for, the project contracted for and

means, except as exempted in this part, the person who, for

compensation, undertakes to, submits a bid to, or does himself or

herself or by others construct, repair, alter, remodel, add to,

demolish, subtract from, or improve any building or structure,

including related improvements to real estate, for others or for

resale to others; and whose job scope is substantially similar to

the job scope described in one of the subsequent paragraphs of

this subsection. For the purposes of regulation under this part,

"demolish" applies only to demolition of steel tanks over 50 feet

in height; towers over 50 feet in height; other structures over

50 feet in height, other than buildings or residences over three

stories tall; and buildings or residences over three stories

tall. Contractors are subdivided into two divisions, Division I,

consisting of those contractors defined in paragraphs (a)-(c),

and Division II, consisting of those contractors defined in

paragraphs (d)-(q):

(a) "General contractor" means a contractor whose services

are unlimited as to the type of work which he or she may do, who

may contract for any activity requiring licensure under this

part, and who may perform any work requiring licensure under this

part, except as otherwise expressly provided in s. 489.113.

(b) "Building contractor" means a contractor whose services

are limited to construction of commercial buildings and single-

dwelling or multiple-dwelling residential buildings, which

commercial or residential buildings do not exceed three stories

in height, and accessory use structures in connection therewith

or a contractor whose services are limited to remodeling, repair,

or improvement of any size building if the services do not affect

the structural members of the building.

services are limited to construction, remodeling, repair, or

improvement of one-family, two-family, or three-family residences

not exceeding two habitable stories above no more than one

uninhabitable story and accessory use structures in connection

therewith.

(d) "Sheet metal contractor" means a contractor whose

services are unlimited in the sheet metal trade and who has the

experience, knowledge, and skill necessary for the manufacture,

fabrication, assembling, handling, erection, installation,

dismantling, conditioning, adjustment, insulation, alteration,

repair, servicing, or design, when not prohibited by law, of

ferrous or nonferrous metal work of U.S. No. 10 gauge or its

equivalent or lighter gauge and of other materials, including,

but not limited to, fiberglass, used in lieu thereof and of air-

handling systems, including the setting of air-handling equipment

and reinforcement of same, the balancing of air-handling systems,

and any duct cleaning and equipment sanitizing which requires at

least a partial disassembling of the system.

(e) "Roofing contractor" means a contractor whose services

are unlimited in the roofing trade and who has the experience,

knowledge, and skill to install, maintain, repair, alter, extend,

or design, when not prohibited by law, and use materials and

items used in the installation, maintenance, extension, and

alteration of all kinds of roofing, waterproofing, and coating,

except when coating is not represented to protect, repair,

waterproof, stop leaks, or extend the life of the roof.

(f) "Class A air-conditioning contractor" means a

contractor whose services are unlimited in the execution of

contracts requiring the experience, knowledge, and skill to

install, maintain, repair, fabricate, alter, extend, or design,

when not prohibited by law, central air-conditioning,

refrigeration, heating, and ventilating systems, including duct

work in connection with a complete system only to the extent such

duct work is performed by the contractor as is necessary to make

complete an air-distribution system, boiler and unfired pressure

vessel systems, and all appurtenances, apparatus, or equipment

used in connection therewith, and any duct cleaning and equipment

sanitizing which requires at least a partial disassembling of the

system; to install, maintain, repair, fabricate, alter, extend,

or design, when not prohibited by law, piping, insulation of

pipes, vessels and ducts, pressure and process piping, and

pneumatic control piping; to replace, disconnect, or reconnect

power wiring on the load side of the dedicated existing

electrical disconnect switch; to install, disconnect, and

reconnect low voltage heating, ventilating, and air-conditioning

control wiring; and to install a condensate drain from an air-

conditioning unit to an existing safe waste or other approved

disposal other than a direct connection to a sanitary system. The

scope of work for such contractor shall also include any

excavation work incidental thereto, but shall not include any

work such as liquefied petroleum or natural gas fuel lines within

buildings, except for disconnecting or reconnecting changeouts of

liquefied petroleum or natural gas appliances within buildings;

potable water lines or connections thereto; sanitary sewer lines;

100

swimming pool piping and filters; or electrical power wiring.

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(g) "Class B air-conditioning contractor" means a

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contractor whose services are limited to 25 tons of cooling and

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500,000 Btu of heating in any one system in the execution of

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contracts requiring the experience, knowledge, and skill to

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install, maintain, repair, fabricate, alter, extend, or design,

106

when not prohibited by law, central air-conditioning,

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refrigeration, heating, and ventilating systems, including duct

108

work in connection with a complete system only to the extent such

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duct work is performed by the contractor as is necessary to make

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complete an air-distribution system being installed under this

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classification, and any duct cleaning and equipment sanitizing

112

which requires at least a partial disassembling of the system; to

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install, maintain, repair, fabricate, alter, extend, or design,

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when not prohibited by law, piping and insulation of pipes,

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vessels, and ducts; to replace, disconnect, or reconnect power

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wiring on the load side of the dedicated existing electrical

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disconnect switch; to install, disconnect, and reconnect low

118

voltage heating, ventilating, and air-conditioning control

119

wiring; and to install a condensate drain from an air-

120

conditioning unit to an existing safe waste or other approved

121

disposal other than a direct connection to a sanitary system. The

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scope of work for such contractor shall also include any

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excavation work incidental thereto, but shall not include any

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work such as liquefied petroleum or natural gas fuel lines within

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buildings, except for disconnecting or reconnecting changeouts of

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liquefied petroleum or natural gas appliances within buildings;

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potable water lines or connections thereto; sanitary sewer lines;

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swimming pool piping and filters; or electrical power wiring.

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(h) "Class C air-conditioning contractor" means a

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contractor whose business is limited to the servicing of air-

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conditioning, heating, or refrigeration systems, including any

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duct cleaning and equipment sanitizing which requires at least a

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partial disassembling of the system, and whose certification or

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registration, issued pursuant to this part, was valid on October

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1, 1988. No person not previously registered or certified as a

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Class C air-conditioning contractor as of October 1, 1988, shall

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be so registered or certified after October 1, 1988. However, the

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board shall continue to license and regulate those Class C air-

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conditioning contractors who held Class C licenses prior to

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October 1, 1988.

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(i) "Mechanical contractor" means a contractor whose

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services are unlimited in the execution of contracts requiring

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the experience, knowledge, and skill to install, maintain,

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repair, fabricate, alter, extend, or design, when not prohibited

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by law, central air-conditioning, refrigeration, heating, and

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ventilating systems, including duct work in connection with a

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complete system only to the extent such duct work is performed by

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the contractor as is necessary to make complete an air-

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distribution system, boiler and unfired pressure vessel systems,

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lift station equipment and piping, and all appurtenances,

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apparatus, or equipment used in connection therewith, and any

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duct cleaning and equipment sanitizing which requires at least a

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partial disassembling of the system; to install, maintain,

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repair, fabricate, alter, extend, or design, when not prohibited

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by law, piping, insulation of pipes, vessels and ducts, pressure

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and process piping, pneumatic control piping, gasoline tanks and

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pump installations and piping for same, standpipes, air piping,

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vacuum line piping, oxygen lines, nitrous oxide piping, ink and

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chemical lines, fuel transmission lines, liquefied petroleum gas

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lines within buildings, and natural gas fuel lines within

161

buildings; to replace, disconnect, or reconnect power wiring on

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the load side of the dedicated existing electrical disconnect

163

switch; to install, disconnect, and reconnect low voltage

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heating, ventilating, and air-conditioning control wiring; and to

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install a condensate drain from an air-conditioning unit to an

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existing safe waste or other approved disposal other than a

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direct connection to a sanitary system. The scope of work for

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such contractor shall also include any excavation work incidental

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thereto, but shall not include any work such as potable water

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lines or connections thereto, sanitary sewer lines, swimming pool

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piping and filters, or electrical power wiring.

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(j) "Commercial pool/spa contractor" means a contractor

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whose scope of work involves, but is not limited to, the

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construction, repair, and servicing of any swimming pool, or hot

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tub or spa, whether public, private, or otherwise, regardless of

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use. The scope of work includes the installation, repair, or

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replacement of existing equipment, any cleaning or equipment

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sanitizing which requires at least a partial disassembling,

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excluding filter changes, and the installation of new pool/spa

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equipment, interior finishes, the installation of package pool

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heaters, the installation of all perimeter piping and filter

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piping, and the construction of equipment rooms or housing for

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pool/spa equipment, and also includes the scope of work of a

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swimming pool/spa servicing contractor. The scope of such work

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does not include direct connections to a sanitary sewer system or

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to potable water lines. The installation, construction,

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modification, or replacement of equipment permanently attached to

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and associated with the pool or spa for the purpose of water

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treatment or cleaning of the pool or spa requires licensure;

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however, the usage of such equipment for the purposes of water

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treatment or cleaning shall not require licensure unless the

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usage involves construction, modification, or replacement of such

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equipment. Water treatment that does not require such equipment

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does not require a license. In addition, a license shall not be

195

required for the cleaning of the pool or spa in any way that does

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not affect the structural integrity of the pool or spa or its

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associated equipment.

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(k) "Residential pool/spa contractor" means a contractor

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whose scope of work involves, but is not limited to, the

200

construction, repair, and servicing of any residential swimming

201

pool, or hot tub or spa, regardless of use. The scope of work

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includes the installation, repair, or replacement of existing

203

equipment, any cleaning or equipment sanitizing which requires at

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least a partial disassembling, excluding filter changes, and the

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installation of new pool/spa equipment, interior finishes, the

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installation of package pool heaters, the installation of all

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perimeter piping and filter piping, and the construction of

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equipment rooms or housing for pool/spa equipment, and also

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includes the scope of work of a swimming pool/spa servicing

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contractor. The scope of such work does not include direct

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connections to a sanitary sewer system or to potable water lines.

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The installation, construction, modification, or replacement of

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equipment permanently attached to and associated with the pool or

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spa for the purpose of water treatment or cleaning of the pool or

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spa requires licensure; however, the usage of such equipment for

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the purposes of water treatment or cleaning shall not require

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licensure unless the usage involves construction, modification,

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or replacement of such equipment. Water treatment that does not

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require such equipment does not require a license. In addition, a

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license shall not be required for the cleaning of the pool or spa

221

in any way that does not affect the structural integrity of the

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pool or spa or its associated equipment.

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(l) "Swimming pool/spa servicing contractor" means a

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contractor whose scope of work involves, but is not limited to,

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the repair and servicing of any swimming pool, or hot tub or spa,

226

whether public or private, or otherwise, regardless of use. The

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scope of work includes the repair or replacement of existing

228

equipment, any cleaning or equipment sanitizing which requires at

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least a partial disassembling, excluding filter changes, and the

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installation of new pool/spa equipment, interior refinishing, the

231

reinstallation or addition of pool heaters, the repair or

232

replacement of all perimeter piping and filter piping, the repair

233

of equipment rooms or housing for pool/spa equipment, and the

234

substantial or complete draining of a swimming pool, or hot tub

235

or spa, for the purpose of any repair or renovation. The scope of

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such work does not include direct connections to a sanitary sewer

237

system or to potable water lines. The installation, construction,

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modification, substantial or complete disassembly, or replacement

239

of equipment permanently attached to and associated with the pool

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or spa for the purpose of water treatment or cleaning of the pool

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or spa requires licensure; however, the usage of such equipment

242

for the purposes of water treatment or cleaning shall not require

243

licensure unless the usage involves construction, modification,

244

substantial or complete disassembly, or replacement of such

245

equipment. Water treatment that does not require such equipment

246

does not require a license. In addition, a license shall not be

247

required for the cleaning of the pool or spa in any way that does

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not affect the structural integrity of the pool or spa or its

249

associated equipment.

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(m) "Plumbing contractor" means a contractor whose

251

contracting business consists of the execution of contracts

252

requiring the experience, financial means, knowledge, and skill

253

to install, maintain, repair, alter, extend, or, when not

254

prohibited by law, design plumbing. A plumbing contractor may

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install, maintain, repair, alter, extend, or, when not prohibited

256

by law, design the following without obtaining any additional

257

local regulatory license, certificate, or registration: sanitary

258

drainage or storm drainage facilities; venting systems; public or

259

private water supply systems; septic tanks; drainage and supply

260

wells; swimming pool piping; irrigation systems; or solar heating

261

water systems and all appurtenances, apparatus, or equipment used

262

in connection therewith, including boilers and pressure process

263

piping and including the installation of water, natural gas,

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liquefied petroleum gas and related venting, and storm and

265

sanitary sewer lines; and water and sewer plants and substations.

266

The scope of work of the plumbing contractor also includes the

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design, when not prohibited by law, and installation,

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maintenance, repair, alteration, or extension of air-piping,

269

vacuum line piping, oxygen line piping, nitrous oxide piping, and

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all related medical gas systems; fire line standpipes and fire

271

sprinklers to the extent authorized by law; ink and chemical

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lines; fuel oil and gasoline piping and tank and pump

273

installation, except bulk storage plants; and pneumatic control

274

piping systems, all in such a manner as to comply with all plans,

275

specifications, codes, laws, and regulations applicable. The

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scope of work of the plumbing contractor shall apply to private

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property and public property, shall include any excavation work

278

incidental thereto, and shall include the work of the specialty

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plumbing contractor. Such contractor shall subcontract, with a

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qualified contractor in the field concerned, all other work

281

incidental to the work but which is specified herein as being the

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work of a trade other than that of a plumbing contractor. Nothing

283

in this definition shall be construed to limit the scope of work

284

of any specialty contractor certified pursuant to s. 489.113(6).

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Nothing in this definition shall be construed to require

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certification or registration under this part of any authorized

287

employee of a public natural gas utility or of a private natural

288

gas utility regulated by the Public Service Commission when

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disconnecting and reconnecting water lines in the servicing or

290

replacement of an existing water heater.

291

(n) "Underground utility and excavation contractor" means a

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contractor whose services are limited to the construction,

293

installation, and repair, on public or private property, whether

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accomplished through open excavations or through other means,

295

including, but not limited to, directional drilling, auger

296

boring, jacking and boring, trenchless technologies, wet and dry

297

taps, grouting, and slip lining, of main sanitary sewer

298

collection systems, main water distribution systems, storm sewer

299

collection systems, and the continuation of utility lines from

300

the main systems to a point of termination up to and including

301

the meter location for the individual occupancy, sewer collection

302

systems at property line on residential or single-occupancy

303

commercial properties, or on multioccupancy properties at manhole

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or wye lateral extended to an invert elevation as engineered to

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accommodate future building sewers, water distribution systems,

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or storm sewer collection systems at storm sewer structures.

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However, an underground utility and excavation contractor may

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install empty underground conduits in rights-of-way, easements,

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platted rights-of-way in new site development, and sleeves for

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parking lot crossings no smaller than 2 inches in diameter,

311

provided that each conduit system installed is designed by a

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licensed professional engineer or an authorized employee of a

313

municipality, county, or public utility and that the installation

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of any such conduit does not include installation of any

315

conductor wiring or connection to an energized electrical system.

316

An underground utility and excavation contractor shall not

317

install any piping that is an integral part of a fire protection

318

system as defined in s. 633.021 beginning at the point where the

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piping is used exclusively for such system.

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(o) "Solar contractor" means a contractor whose services

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consist of the installation, alteration, repair, maintenance,

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relocation, or replacement of solar panels for potable solar

323

water heating systems, swimming pool solar heating systems, and

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photovoltaic systems and any appurtenances, apparatus, or

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equipment used in connection therewith, whether public, private,

326

or otherwise, regardless of use. A contractor, certified or

327

registered pursuant to the provisions of this chapter, is not

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required to become a certified or registered solar contractor or

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to contract with a solar contractor in order to provide any

330

services enumerated in this paragraph that are within the scope

331

of the services such contractors may render under this part.

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(p) "Pollutant storage systems contractor" means a

333

contractor whose services are limited to, and who has the

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experience, knowledge, and skill to install, maintain, repair,

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alter, extend, or design, when not prohibited by law, and use

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materials and items used in the installation, maintenance,

337

extension, and alteration of, pollutant storage tanks. Any person

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installing a pollutant storage tank shall perform such

339

installation in accordance with the standards adopted pursuant to

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s. 376.303.

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(q) "Specialty contractor" means a contractor whose scope

342

of work and responsibility is limited to a particular phase of

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construction and whose scope is limited to a subset of the

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activities described in the categories established in one of the

345

paragraphs of this subsection.

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(4) "Primary Qualifying agent" means a certified or

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registered contractor person who possesses the requisite skill,

348

knowledge, and experience, and has the responsibility, to

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supervise, direct, manage, and control the contracting activities

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of the business organization with which he or she is connected;

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who has the responsibility to supervise, direct, manage, and

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control construction activities on those projects contracted for

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by the business organization for which he or she serves as a

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qualifying agent a job for which he or she has obtained the

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building permit; and whose technical and personal qualifications

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have been determined by investigation and examination as provided

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in this part, as attested by the department.

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(5) "Secondary qualifying agent" means a person who

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possesses the requisite skill, knowledge, and experience, and has

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the responsibility to supervise, direct, manage, and control

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construction activities on a job for which he or she has obtained

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a permit, and whose technical and personal qualifications have

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been determined by investigation and examination as provided in

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this part, as attested by the department.

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(5)(6) "Contracting" means, except as exempted in this

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part, engaging in business as a contractor, whether as an

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individual or through a sole proprietorship or business

368

organization, and includes, but is not limited to, performance of

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any of the acts as set forth in subsection (3) which define types

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of contractors. The attempted sale of contracting services and

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the negotiation or bid for a contract on these services also

372

constitutes contracting. If the services offered require

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licensure or agent qualification, the offering, negotiation for a

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bid, or attempted sale of these services requires the

375

corresponding licensure. However, the term "contracting" does

376

shall not extend to a person or business organization an

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individual, partnership, corporation, trust, or other legal

378

entity that offers to sell or sells completed residences on

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property on which the individual or business entity has any legal

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or equitable interest, or to the individual or business entity

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that sells or offers to sell manufactured or factory-built

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buildings that will be completed on site on property in which

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either party to a contract has any legal or equitable interest,

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if the services of a qualified contractor certified or registered

385

pursuant to the requirements of this chapter have been or will be

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retained for the purpose of constructing or completing such

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residences.

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(6)(7) "Certificate" means a certificate of competency

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issued to a person by the department, evidencing that the person

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possesses the requisite skill, knowledge, and experience to

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supervise, direct, manage, and control construction activities

392

within one of the classifications described in subsection (3) as

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provided in this part.

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(7)(8) "Certified contractor" means any contractor who

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possesses a certificate of competency issued by the department

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and who shall be allowed to contract in any jurisdiction in the

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state without being required to fulfill the competency

398

requirements of that jurisdiction.

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(8)(9) "Registration" means a registration issued to a

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person by with the department, as provided in this part,

401

evidencing that the person has fulfilled the competency

402

requirements of a local jurisdiction and obtained the required

403

local occupational license in a job scope substantially similar

404

to one of the classifications described in subsection (3).

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(9) "Business registration" means a registration issued to

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a business organization by the department evidencing that

407

entity's authority to engage in contracting, as provided in this

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part.

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(10) "Registered contractor" means any contractor who has

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registered with the department pursuant to fulfilling the

411

competency requirements in the jurisdiction for which the

412

registration is issued. Registered contractors may engage in

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contracting contract only in such jurisdictions.

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(11) "Certification" means the act of obtaining or holding

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a certificate of competency from the department as provided in

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this part.

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(12) "Local construction regulation board" means a board,

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composed of not fewer than three residents of a county or

419

municipality, which the governing body of that county or

420

municipality may create and appoint to maintain the proper

421

standard of construction of that county or municipality.

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(13) "Business organization" or "entity" means any

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partnership, corporation, limited liability company, business

424

trust, joint venture, or other legal entity which engages or

425

offers to engage in the business of contracting or acts as a

426

contractor as defined in this section.

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(14) "Financially responsible officer" means a person other

428

than the primary qualifying agent who with the approval of the

429

board assumes personal responsibility for all financial aspects

430

of the business organization.

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(14)(15) "Structural component" means any vertical or

432

horizontal load-bearing member of a structure which supports dead

433

or live loads in addition to its own weight and includes, but is

434

not limited to, a foundation, an exterior or interior load-

435

bearing wall, a column, a column beam, a floor, and a roof

436

structure.

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(15)(16) "Arbitration" means a process whereby a neutral

438

third person or panel, called an arbitrator or arbitration panel,

439

considers the facts and arguments presented by the parties and

440

renders a decision which is binding on the parties.

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(16)(17) "Pollutant storage tank" means a tank, together

442

with associated piping or dispensing facilities, which is or

443

could be used for the storage or supply of pollutants as defined

444

in s. 376.301 and which is required to be registered under

445

chapter 17-761, Florida Administrative Code.

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(17)(18) "Tank" means any container other than one which is

447

aboveground and either elevated or situated upon an impermeable

448

surface, or which is located in an accessible underground area

449

and either elevated or situated upon an impermeable surface

450

therein, in such manner that any leak in such container may be

451

readily detected.

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(18)(19) "Initial issuance" means the first time a

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certificate or registration is granted to a person an individual

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or business organization, including the first time an individual

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becomes a qualifying agent for that business organization and the

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first time a business organization is qualified by that

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individual.

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(19) "Person" means a natural person.

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(20) "Demolish" means to tear down a steel tank more than

460

50 feet in height, a tower more than 50 feet in height, other

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structures more than 50 feet in height, except buildings or

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residences over three stories tall, and buildings or residences

463

over three stories tall.

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Section 2. Subsection (1) of section 489.109, Florida

465

Statutes, is amended to read:

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489.109 Fees.--

467

(1) The board, by rule, shall establish reasonable fees to

468

be paid for applications, certification and renewal, registration

469

and renewal, business registration, and recordmaking and

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recordkeeping. The fees shall be established as follows:

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(a) With respect to an applicant for a certificate, the

472

initial application fee may not exceed $150, and, if an

473

examination cost is included in the application fee, the combined

474

amount may not exceed $350. The initial certification fee and the

475

renewal fee may not exceed $200. However, any applicant who seeks

476

certification under this part by taking a practical examination

477

must pay as an examination fee the actual cost incurred by the

478

department in developing, preparing, administering, scoring,

479

score reporting, and evaluating the examination, if the

480

examination is conducted by the department.

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(b) With respect to an applicant for registration, the

482

initial application fee may not exceed $100, and the initial

483

registration fee and the renewal fee may not exceed $200.

484

485

to exceed the applicable renewal fee for renewal applications

486

made after the expiration date of the certificate or

487

registration.

488

(d) With respect to an application for business

489

registration, the initial application fee may not exceed $50, and

490

the initial registration fee and the renewal fee may not exceed

491

$50. The board, by rule, may establish a fee for transfer of a

492

business registration certificate of authority from one business

493

organization to another, not to exceed the applicable renewal

494

fee.

495

(e) The board, by rule, shall impose a renewal fee for an

496

inactive status certificate or registration, not to exceed the

497

renewal fee for an active status certificate or registration.

498

Neither the inactive certification fee nor the inactive

499

registration fee may exceed $50. The board, by rule, may provide

500

for a different fee for inactive status where such status is

501

sought by a building code administrator, plans examiner, or

502

inspector certified pursuant to part XII of chapter 468 who is

503

employed by a local government and is not allowed by the terms of

504

such employment to maintain a certificate on active status issued

505

pursuant to this part.

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(f) The board, by rule, shall impose an additional late fee

507

on a delinquent status certificateholder or registrant when such

508

certificateholder or registrant applies for active or inactive

509

status.

510

(g) The board, by rule, shall impose an additional fee, not

511

to exceed the applicable renewal fee, which reasonably reflects

512

the costs of processing a certificateholder's or registrant's

513

request to change licensure status at any time other than at the

514

beginning of a licensure cycle.

515

Section 3. Subsection (5) is added to section 489.111,

516

Florida Statutes, to read:

517

489.111 Licensure by examination.--

518

(5) The department is authorized to enact rules to

519

implement and administer this section. The board may adopt rules

520

requiring specific employment and tax documentation to verify

521

experience and specify which individuals are allowed to verify

522

prior work experience for applicants.

523

Section 4. Section 489.114, Florida Statutes, is amended to

524

read:

525

489.114 Evidence of workers' compensation coverage.--Except

526

as provided in s. 489.115(6)(c) s. 489.115(5)(d), any person or,

527

business organization, or qualifying agent engaged in the

528

business of contracting in this state and holding a certificate,

529

registration, or business registration certified or registered

530

under this part shall, as a condition precedent to the issuance

531

or renewal thereof of a certificate, registration, or certificate

532

of authority of the contractor, provide to the Construction

533

Industry Licensing Board, as provided by board rule, evidence of

534

workers' compensation coverage pursuant to chapter 440. In the

535

event that the Division of Workers' Compensation of the

536

Department of Financial Services receives notice of the

537

cancellation of a policy of workers' compensation insurance

538

insuring a person or entity governed by this section, the

539

Division of Workers' Compensation shall certify and identify all

540

persons or entities by certification or registration license

541

number to the department after verification is made by the

542

Division of Workers' Compensation that persons or entities

543

governed by this section are no longer covered by workers'

544

compensation insurance. Such certification and verification by

545

the Division of Workers' Compensation may result from records

546

furnished to the Division of Workers' Compensation by the persons

547

or entities governed by this section or an investigation

548

completed by the Division of Workers' Compensation. The

549

department shall notify the persons or entities governed by this

550

section who have been determined to be in noncompliance with

551

chapter 440, and the persons or entities notified shall provide

552

certification of compliance with chapter 440 to the department

553

and pay an administrative fine in the amount of $500. The failure

554

to maintain workers' compensation coverage as required by law

555

shall be grounds for the board to revoke, suspend, or deny the

556

issuance or renewal of a certificate, registration, or business

557

registration certificate of authority of the contractor under the

558

provisions of s. 489.129.

559

Section 5. Section 489.115, Florida Statutes, is amended to

560

read:

561

489.115 Certification and registration; endorsement;

562

reciprocity; renewals; continuing education.--

563

(1) No person may engage in the business of contracting in

564

this state without first being certified or registered in the

565

proper classification.

566

(2)(a) The department shall issue a certificate or

567

registration to each person qualified by the board and upon

568

receipt of the required fees original license fee.

569

(b) Certification allows the certificateholder to engage in

570

contracting only for the category type of work covered by the

571

certificate and only while the certificate is on active status.

572

(3) The board shall certify as qualified for certification

573

by endorsement any applicant who:

574

(a) Meets the requirements for certification as set forth

575

in this section; has passed a national, regional, state, or

576

United States territorial licensing examination that is

577

substantially equivalent to the examination required by this

578

part; and has satisfied the requirements set forth in s. 489.111;

579

(b) Holds a valid license to engage in practice contracting

580

issued by another state or territory of the United States, if the

581

criteria for issuance of such license were substantially

582

equivalent to Florida's current certification criteria; or

583

584

contracting issued by another state or territory of the United

585

States, if the state or territory has entered into a reciprocal

586

agreement with the board for the recognition of contractor

587

licenses issued in that state, based on criteria for the issuance

588

of such licenses that are substantially equivalent to the

589

criteria for certification in this state.

590

(4)(a) Each certificateholder or registrant who desires to

591

continue as a certificateholder or registrant shall renew the

592

certificate or registration every 2 years. The department shall

593

mail each certificateholder and registrant an application for

594

renewal.

595

(b)1. Each certificateholder or registrant shall provide

596

proof, in a form established by rule of the board, that the

597

certificateholder or registrant has completed at least 14

598

classroom hours of at least 50 minutes each of continuing

599

education courses during each biennium since the issuance or

600

renewal of the certificate or registration. The board shall

601

establish by rule that a portion of the required 14 hours must

602

deal with the subject of workers' compensation, business

603

practices, workplace safety, and, for applicable licensure

604

categories, wind mitigation methodologies, and 1 hour of which

605

must deal with laws and rules. The board shall by rule establish

606

criteria for the approval of continuing education courses and

607

providers, including requirements relating to the content of

608

courses and standards for approval of providers, and may by rule

609

establish criteria for accepting alternative nonclassroom

610

continuing education on an hour-for-hour basis. The board shall

611

prescribe by rule the continuing education, if any, which is

612

required during the first biennium of initial licensure. A person

613

who has been licensed for less than an entire biennium must not

614

be required to complete the full 14 hours of continuing

615

education.

616

2. In addition, the board may approve specialized

617

continuing education courses on compliance with the wind

618

resistance provisions for one and two family dwellings contained

619

in the Florida Building Code and any alternate methodologies for

620

providing such wind resistance which have been approved for use

621

by the Florida Building Commission. Division I certificateholders

622

or registrants who demonstrate proficiency upon completion of

623

such specialized courses may certify plans and specifications for

624

one and two family dwellings to be in compliance with the code or

625

alternate methodologies, as appropriate, except for dwellings

626

located in floodways or coastal hazard areas as defined in ss.

627

60.3D and E of the National Flood Insurance Program.

628

3. Each certificateholder or registrant shall provide to

629

the board proof of completion of the core curriculum courses, or

630

passing the equivalency test of the Building Code Training

631

Program established under s. 553.841, specific to the licensing

632

category sought, within 2 years after commencement of the program

633

or of initial certification or registration, whichever is later.

634

Classroom hours spent taking core curriculum courses shall count

635

toward the number required for renewal of certificates or

636

registration. A certificateholder or registrant who passes the

637

equivalency test in lieu of taking the core curriculum courses

638

shall receive full credit for core curriculum course hours.

639

4. The board shall require, by rule adopted pursuant to ss.

640

120.536(1) and 120.54, a specified number of hours in specialized

641

or advanced module courses, approved by the Florida Building

642

Commission, on any portion of the Florida Building Code, adopted

643

pursuant to part VII of chapter 553, relating to the contractor's

644

licensing category respective discipline.

645

646

sign, and forward the renewal application to the department,

647

together with the appropriate fee. Upon receipt of the

648

application and fee, the department shall renew the certificate

649

or registration.

650

(5) If a certificateholder or registrant holds a license

651

under this part and part II and is required to complete

652

continuing education courses under s. 489.517(3), the

653

certificateholder or registrant may apply those course hours for

654

workers' compensation, workplace safety, and business practices

655

obtained under part II to the requirements of this part.

656

(6)(5)(a) As a prerequisite to the initial issuance or the

657

renewal of a certificate or registration, the applicant shall

658

submit an affidavit on a form provided by the board attesting to

659

the fact that the applicant has obtained workers' compensation

660

insurance as required by chapter 440, public liability insurance,

661

and property damage insurance for the safety and welfare of the

662

public, in amounts determined by rule of the board. The board

663

shall by rule establish a procedure to verify the accuracy of

664

such affidavits based upon a random sample method.

665

(b) In addition to the affidavit of insurance, as a

666

prerequisite to the initial issuance of a certificate, the

667

applicant shall furnish a credit report from a nationally

668

recognized credit agency that reflects the financial

669

responsibility of the applicant and evidence of financial

670

responsibility, credit, and business reputation of either himself

671

or herself or the business organization he or she desires to

672

qualify. The board shall adopt rules defining financial

673

responsibility based upon the applicant's credit history, ability

674

to be bonded, and any history of bankruptcy or assignment of

675

receivers. The board may also adopt rules that would allow

676

applicants to demonstrate financial responsibility, as an

677

alternative to the foregoing, by providing minimum credit scores

678

or bonds payable as prescribed for financially responsible

679

officers. Such rules shall specify the financial responsibility

680

grounds on which the board may refuse to qualify an applicant for

681

certification.

682

(b)(c) If, within 60 days from the date the applicant is

683

notified that he or she has qualified, he or she does not provide

684

the evidence required, he or she shall apply to the department

685

for an extension of time which shall be granted upon a showing of

686

just cause.

687

(c)(d) An applicant for initial issuance of a certificate

688

or registration shall submit as a prerequisite to qualifying for

689

an exemption from workers' compensation coverage requirements

690

under s. 440.05 an affidavit attesting to the fact that the

691

applicant will obtain an exemption within 30 days after the date

692

the initial certificate or registration is issued by the board.

693

(7)(a) An initial applicant shall submit, along with the

694

application, a complete set of fingerprints in a form and manner

695

required by the department. The fingerprints shall be submitted

696

to the Department of Law Enforcement for state processing, and

697

the Department of Law Enforcement shall forward the fingerprints

698

to the Federal Bureau of Investigation for the purpose of

699

conducting a level 2 background check pursuant to s. 435.04. The

700

department shall and the board may review the background results

701

to determine if an applicant meets licensure requirements. The

702

cost for the processing of the fingerprints shall be borne by the

703

person subject to the background screening. Such fees shall be

704

collected by the authorized agencies or vendors. The authorized

705

agencies or vendors are responsible for forwarding the processing

706

fees to the Department of Law Enforcement.

707

(b)(6) An applicant for initial issuance of a certificate

708

or registration shall submit to a statewide criminal history

709

records check through the Department of Law Enforcement. The

710

Department of Business and Professional Regulation shall submit

711

the requests for the criminal history records check to the

712

Department of Law Enforcement for state processing, and the

713

Department of Law Enforcement shall return the results to the

714

department to determine if the applicant meets certification or

715

registration requirements. If the applicant has been convicted of

716

a felony, the board may deny licensure to the applicant based

717

upon the severity of the crime, the relationship of the crime to

718

contracting, or the potential for public harm. The board shall

719

also, in denying or approving licensure, consider the length of

720

time since the commission of the crime and the rehabilitation of

721

the applicant. The board may not deny licensure to an applicant

722

based solely upon a felony conviction or the applicant's failure

723

to provide proof of restoration of civil rights. This paragraph

724

does not prevent the board from denying licensure to an applicant

725

based upon a lack of good moral character or a conviction of a

726

crime related to contracting.

727

(8)(a) An applicant for initial issuance of a certificate

728

or registration shall submit a bond from a surety authorized to

729

transact insurance in this state, on a form adopted by the board

730

by rule. The sole purpose of the bond is to provide evidence that

731

the applicant meets minimum standards for financial

732

responsibility and to secure payment of any administrative

733

penalties and associated fees and costs imposed by the board on a

734

certificateholder or registrant which are authorized under state

735

law and which the certificateholder or registrant fails to pay 30

736

days after the fine or costs become final after the conclusion of

737

all appeals. The bond shall name the applicant as principal and

738

the board as obligee. The bond shall be made payable exclusively

739

to the Professional Regulation Trust Fund to defray the costs of

740

the board's regulation of Division I and Division II contractors.

741

An applicant is not required to provide any further evidence of

742

financial responsibility in order to obtain a certificate or

743

registration.

744

(b) The stated principal amount of the bond shall be

745

$20,000. Contractors holding licenses in both divisions shall

746

submit only one bond for each division, regardless of the number

747

of licenses held. The aggregate liability of the surety,

748

including any liability for attorney's fees, whether by contract

749

or statute, may not exceed the principal amount without regard to

750

the number of years the bond was in force, the number of premiums

751

paid, or the number of claims or claimants.

752

753

and effect during the entire period that the certificate or

754

registration is active, including all subsequent renewals, except

755

as otherwise provided in this part. Failure to maintain the bond

756

shall result in the certificate or registration being placed on

757

inactive status and possible disciplinary action. If the bond is

758

maintained for a period of 6 continuous years under an active

759

certificate or registration without the payment of any claim by

760

the surety under the bond, the bond may be cancelled and is not

761

required as a condition of subsequent renewals of the certificate

762

or registration.

763

(d) The surety may cancel the bond upon not less than 30

764

days' written notice to the obligor and obligee. However, the

765

surety remains liable for any claim under the bond arising from

766

actions or inactions occurring while the bond was in force.

767

(e) An irrevocable letter of credit may be furnished and

768

maintained in lieu of the bond. The letter of credit shall be in

769

the principal amount that would otherwise be required for a bond.

770

The letter of credit shall be assigned to the board and made

771

payable to the Professional Regulation Trust Fund under the same

772

terms and conditions as the bond. Certificateholders and

773

registrants may collect interest on the letter of credit.

774

(7) An initial applicant shall, along with the application,

775

and a certificateholder or registrant shall, upon requesting a

776

change of status, submit to the board a credit report from a

777

nationally recognized credit agency that reflects the financial

778

responsibility of the applicant or certificateholder or

779

registrant. The credit report required for the initial applicant

780

shall be considered the minimum evidence necessary to satisfy the

781

board that he or she is financially responsible to be certified,

782

has the necessary credit and business reputation to engage in

783

contracting in the state, and has the minimum financial stability

784

necessary to avoid the problem of financial mismanagement or

785

misconduct. The board shall, by rule, adopt guidelines for

786

determination of financial stability, which may include minimum

787

requirements for net worth, cash, and bonding for Division I

788

certificateholders of no more than $20,000 and for Division II

789

certificateholders of no more than $10,000. Fifty percent of the

790

financial requirements may be met by completing a 14-hour

791

financial responsibility course approved by the board.

792

(8) If a certificateholder or registrant holds a license

793

under both this part and part II and is required to have

794

continuing education courses under s. 489.517(3), the

795

certificateholder or registrant may apply those course hours for

796

workers' compensation, workplace safety, and business practices

797

obtained under part II to the requirements under this part.

798

(9) An initial applicant shall submit, along with the

799

application, a complete set of fingerprints in a form and manner

800

required by the department. The fingerprints shall be submitted

801

to the Department of Law Enforcement for state processing, and

802

the Department of Law Enforcement shall forward them to the

803

Federal Bureau of Investigation for the purpose of conducting a

804

level 2 background check pursuant to s. 435.04. The department

805

shall and the board may review the background results to

806

determine if an applicant meets licensure requirements. The cost

807

for the fingerprint processing shall be borne by the person

808

subject to the background screening. These fees are to be

809

collected by the authorized agencies or vendors. The authorized

810

agencies or vendors are responsible for paying the processing

811

costs to the Department of Law Enforcement.

812

Section 6. Section 489.119, Florida Statutes, is amended to

813

read:

814

489.119 Business organizations; qualifying agents.--

815

(1) If a certificateholder or registrant an individual

816

proposes to engage in contracting, whether as an individual or as

817

a sole proprietorship, under a name other than the one appearing

818

on the certificate or registration, the certificateholder or

819

registrant shall notify the department and furnish evidence of

820

registration of the fictitious name in compliance with s. 865.09

821

in the individual's own name, or a fictitious name where the

822

individual is doing business as a sole proprietorship,

823

registration or certification may be issued only to that

824

individual.

825

(2) If a certificateholder or registrant the applicant

826

proposes to engage in contracting through as a business

827

organization, including any partnership, corporation, business

828

trust, or other legal entity, or in any name other than the

829

applicant's legal name or a fictitious name where the applicant

830

is doing business as a sole proprietorship, the certificateholder

831

or registrant and the business organization must jointly apply

832

for business registration for the entity, designating the

833

certificateholder or registrant as its qualifying agent a

834

certificate of authority through a qualifying agent and under the

835

fictitious name, if any. A joint venture, including a joint

836

venture composed of business organizations, is itself a separate

837

and distinct entity that must be issued a business registration

838

under this section in order to engage in contracting. A business

839

organization may not engage in contracting unless it has been

840

issued a business registration under this section. The

841

application for business registration shall be submitted on a

842

form adopted by rule by the department.

843

(a) The application for business registration a certificate

844

of authority must state the name of the partnership and of its

845

partners; the name of the corporation and of its officers and

846

directors and the name of each of its stockholders who is also an

847

officer or director; the name of the business trust and its

848

trustees; or the name of such other legal entity and its members;

849

and must state the fictitious name, if any, under which the

850

business organization is doing business.

851

(b)1. The application for primary qualifying agent must

852

include an affidavit on a form provided by the board attesting

853

that the applicant has final approval authority for all

854

construction work performed by the entity and that the applicant

855

has final approval authority on all business matters, including

856

contracts, specifications, checks, drafts, or payments,

857

regardless of the form of payment, made by the entity, except

858

where a financially responsible officer is approved.

859

2. The application for financially responsible officer must

860

include an affidavit on a form provided by the board attesting

861

that the applicant's approval is required for all checks, drafts,

862

or payments, regardless of the form of payment, made by the

863

entity and that the applicant has authority to act for the

864

business organization in all financial matters.

865

3. The application for secondary qualifying agent must

866

include an affidavit on a form provided by the board attesting

867

that the applicant has authority to supervise all construction

868

work performed by the entity as provided in s. 489.1195(2).

869

(b) The applicant must furnish evidence of statutory

870

compliance if a fictitious name is used, the provisions of s.

871

865.09(7) notwithstanding.

872

873

qualified business organizations, is itself a separate and

874

distinct organization that must be qualified and obtain a

875

certificate of authority in accordance with board rules.

876

877

required fee shall be submitted along with the following:

878

1. If the business organization is a corporation,

879

partnership of any kind, or limited liability company, evidence

880

from the Department of State that the entity is duly authorized

881

to conduct business in Florida;

882

2. Evidence of the workers' compensation coverage required

883

by s. 489.114, except as provided in s. 489.115(6)(c);

884

3. Proof of liability and property damage insurance

885

adequate to protect the safety and welfare of the public, in

886

amounts determined by rule of the board; and

887

4. Evidence of registration of any fictitious name in

888

compliance with s. 865.09.

889

(3)(a) An application for business registration shall be

890

accompanied by a bond obtained by the business organization from

891

a surety authorized to transact insurance in this state, on a

892

form adopted by the board by rule. The sole purpose of the bond

893

is to provide evidence that the business organization meets

894

minimum standards for financial responsibility and to secure

895

payment of any administrative penalties and associated fees and

896

costs imposed by the board on a business organization which are

897

authorized under state law and which the entity fails to pay 30

898

days after the fine or costs become final after the conclusion of

899

all appeals. The bond shall name the business organization as

900

principal and the board as obligee. The bond shall be made

901

payable exclusively to the Professional Regulation Trust Fund to

902

defray the costs of the board's regulation of Division I and

903

Division II contractors. A business organization is not required

904

to provide any further evidence of financial responsibility in

905

order to obtain a business registration.

906

(b) The stated principal amount of the bond shall be

907

$20,000 for business organizations. Business organizations

908

qualified by Division I and Division II contractors shall provide

909

only one bond for each division, regardless of the number of

910

qualifying agents it may have. The aggregate liability of the

911

surety, including any liability for attorney's fees, whether by

912

contract or statute, may not exceed the principal amount without

913

regard to the number of years the bond was in force, the number

914

of premiums paid, or the number of claims or claimants.

915

916

full force and effect during the entire period that the business

917

registration is active, including all subsequent renewals, except

918

as otherwise provided in this part. Failure to maintain the bond

919

shall result in the business registration being placed on

920

inactive status and possible disciplinary action. If the bond is

921

maintained for a period of 6 continuous years under an active

922

business registration without the payment of any claim by the

923

surety under the bond, the bond may be cancelled and is not

924

required as a condition of subsequent renewals of the business

925

registration.

926

(d) The surety may cancel the bond upon not less than 30

927

days' written notice to the obligor and obligee. However, the

928

surety remains liable for any claim under the bond arising from

929

actions or inactions occurring while the bond was in force.

930

(e) An irrevocable letter of credit may be furnished and

931

maintained in lieu of the bond. The letter of credit shall be in

932

the principal amount that would otherwise be required for a bond.

933

The letter of credit shall be assigned to the board and made

934

payable to the Professional Regulation Trust Fund under the same

935

terms and conditions as the bond. The registered business

936

organization may collect interest on the letter of credit.

937

(4) The department shall maintain a database that includes

938

all certified and registered contractors, each entity for which a

939

business registration has been issued, and the qualifying agents

940

and principals of each such entity as described in paragraph

941

(2)(a). Upon receipt of an application for business registration,

942

the board shall compare the qualifying agent and principals of

943

the business organization against those contained in the

944

database. A violation of this part by the entity's qualifying

945

agent or principals, or by the qualifying agent of another

946

business organization registered under this section with which

947

the qualifying agent or principals are or were affiliated,

948

requires additional review by the board. Such a violation may

949

constitute grounds to deny, suspend, place on probation, or

950

revoke the business registration if the violation or violations

951

raise serious doubt as to the business organization's ability or

952

willingness to comply with this part.

953

(5)(d) A business registration certificate of authority

954

must be renewed every 2 years. Outside of the normal renewal

955

cycle, if there is a change to in any information or

956

documentation submitted in an application for business

957

registration or renewal, including a change in qualifying agents

958

or principals that is required to be stated on the application,

959

the business organization shall, within 15 45 days after such

960

change occurs, submit the new information or documentation in the

961

manner prescribed by mail the correct information to the

962

department.

963

(6)(3)(a) Each The qualifying agent shall be certified or

964

registered under this part in order for the business organization

965

to be issued a business registration and to engage in contracting

966

certificate of authority in the category of the business

967

conducted for which the qualifying agent is certified or

968

registered. If any qualifying agent ceases to be affiliated with

969

such business organization, he or she shall provide notice in the

970

manner prescribed by the department so inform the department. In

971

addition, if such qualifying agent is the only certified or

972

registered contractor affiliated with the business organization,

973

the business organization shall notify the department of the

974

termination of the qualifying agent and shall have 60 days from

975

the termination of the qualifying agent's affiliation with the

976

business organization in which to employ another qualifying

977

agent. The business organization may not engage in contracting

978

until a qualifying agent is employed, unless the executive

979

director or chair of the board has granted a temporary

980

nonrenewable certificate or registration to the financially

981

responsible officer, the president of the corporation, manager or

982

managing member of the limited liability company, a partner, or,

983

in the case of a limited partnership, the general partner, who

984

assumes all responsibilities of a primary qualifying agent for

985

the entity. This temporary certificate or registration shall only

986

allow the entity to proceed with incomplete contracts. For the

987

purposes of this paragraph, an incomplete contract is one which

988

has been awarded to, or entered into by, the business

989

organization prior to the cessation of affiliation of the

990

qualifying agent with the business organization or one on which

991

the business organization was the low bidder and the contract is

992

subsequently awarded, regardless of whether any actual work has

993

commenced under the contract prior to the qualifying agent

994

ceasing to be affiliated with the business organization.

995

(b) A The qualifying agent shall provide notice, in the

996

manner prescribed by the department of any change in status,

997

including inform the department in writing when he or she

998

proposes to engage in contracting in his or her own name or in

999

affiliation with another business organization, and he or she or

1000

such new business organization shall supply the same information

1001

to the department as required of applicants under this part.

1002

1003

investigation of the financial responsibility, credit, and

1004

business reputation of the qualifying agent and the new business

1005

organization, the department shall issue, without an examination,

1006

a new certificate of authority in the business organization's

1007

name.

1008

(7)(4) Disciplinary action against a business organization

1009

registered under this section holding a certificate of authority

1010

shall be administered in the same manner and on the same grounds

1011

as disciplinary action against a contractor. The board may deny

1012

the certification of any person cited in subsection (2) if the

1013

person has been involved in past disciplinary actions or on any

1014

grounds for which individual certification can be denied.

1015

(8)(5) When a certified qualifying agent, on behalf of a

1016

business organization, makes application for a local business tax

1017

receipt an occupational license in any municipality or county of

1018

this state, the application shall be made with the tax collector

1019

in the name of the business organization and the qualifying

1020

agent; and the license, when issued, shall be issued to the

1021

business organization, upon payment of the appropriate tax

1022

licensing fee and exhibition to the tax collector of a valid

1023

certificate for the qualifying agent and a valid business

1024

registration certificate of authority for the business

1025

organization issued by the department, and the state registration

1026

number license numbers shall be noted thereon.

1027

(9)(6)(a) Each registered or certified contractor shall

1028

affix the number of his or her registration or certification to

1029

each application for a building permit and on each building

1030

permit issued and recorded. Each city or county building

1031

department shall require, as a precondition for the issuance of

1032

the building permit, that the contractor taking out the permit

1033

must provide verification giving his or her Construction Industry

1034

Licensing Board registration or certification number.

1035

(b) The registration or certification number of each

1036

contractor or business organization certificate of authority

1037

number of for each business organization shall appear in each

1038

offer of services, business proposal, bid, contract, or

1039

advertisement, regardless of medium, as defined by board rule,

1040

used by that contractor or business organization in the practice

1041

of contracting.

1042

1043

organization, or any text or artwork which would lead a

1044

reasonable person to believe that the vehicle is used for

1045

contracting, the registration or certification number of the

1046

contractor or business organization certificate of authority

1047

number of the business organization must be conspicuously and

1048

legibly displayed with the name, text, or artwork. Local

1049

governments may also require that locally licensed contractors

1050

must also display their certificate of competency or license

1051

numbers. Nothing in this paragraph shall be construed to create a

1052

mandatory vehicle signage requirement.

1053

(d) For the purposes of this part, the term "advertisement"

1054

does not include business stationery or any promotional novelties

1055

such as balloons, pencils, trinkets, or articles of clothing.

1056

(e) The board shall issue a notice of noncompliance for the

1057

first offense, and may assess a fine or issue a citation for

1058

failure to correct the offense within 30 days or for any

1059

subsequent offense, to any contractor or business organization

1060

that fails to include the certification, registration, or

1061

business registration certificate of authority number as required

1062

by this part when submitting an advertisement for publication,

1063

broadcast, or printing or fails to display the certification,

1064

registration, or business registration certificate of authority

1065

number as required by this part.

1066

(10)(7) Each qualifying agent shall pay the department an

1067

amount equal to the original fee for a certificate of authority

1068

of a new business organization. If a the qualifying agent for a

1069

business organization desires to qualify additional business

1070

organizations, the board may shall require him or her to present

1071

evidence of ability to supervise and oversee the work of the

1072

additional business organizations and financial responsibility of

1073

each such organization. The decision to allow a qualifying agent

1074

to qualify more than one business organization issuance of such

1075

certificate of authority is discretionary with the board.

1076

(11)(8)(a) A business organization proposing to engage in

1077

contracting is not required to apply for or obtain a business

1078

registration authorization under this part to engage in

1079

contracting if:

1080

1. The business organization employs one or more registered

1081

or certified contractors licensed in accordance with this part

1082

who are responsible for obtaining permits and supervising all of

1083

the business organization's contracting activities;

1084

2. The business organization engages only in contracting on

1085

property owned by the business organization or by its parent,

1086

subsidiary, or affiliated entities; and

1087

3. The business organization, or its parent entity if the

1088

business organization is a wholly owned subsidiary, maintains a

1089

minimum net worth of $20 million.

1090

(b) Any business organization engaging in contracting under

1091

this subsection shall provide the board with the name and license

1092

number of each registered or certified contractor employed by the

1093

business organization to supervise its contracting activities.

1094

The business organization is not required to post a bond or

1095

otherwise evidence any financial or credit information except as

1096

necessary to demonstrate compliance with paragraph (a).

1097

1098

business organization to supervise its contracting activities

1099

under this subsection shall not be required to post a bond or

1100

otherwise evidence any personal financial or credit information

1101

so long as the individual performs contracting activities

1102

exclusively on behalf of a business organization meeting all of

1103

the requirements of paragraph (a).

1104

Section 7. Section 489.1195, Florida Statutes, is amended

1105

to read:

1106

489.1195 Responsibilities.--

1107

(1) A certificateholder or registrant engaging in

1108

contracting as an individual or through a sole proprietorship is

1109

responsible for the supervision, direction, management, and

1110

control of all projects contracted for and for all business

1111

operations subject to regulation under this part, and shall be

1112

subject to discipline for all violations arising from such

1113

actions or duties for which the certificateholder or registrant

1114

is responsible.

1115

(2) A qualifying agent for a business organization is

1116

responsible for the supervision, direction, management, and

1117

control only of those projects for which he or she has assumed

1118

responsibility on behalf of the business organization as set

1119

forth in this subsection.

1120

(a) If a business organization has a single qualifying

1121

agent, that qualifying agent is responsible for all projects

1122

contracted for by the business organization.

1123

(b) If a business organization has multiple qualifying

1124

agents, the qualifying agent obtaining the building permit for a

1125

project assumes responsibility for that project. For those

1126

projects not requiring a building permit, the contract for that

1127

project shall identify the qualifying agent responsible for the

1128

project. Multiple qualifying agents are equally responsible for

1129

all contracts if a permit is not obtained or the contract fails

1130

to specify the responsible qualifying agent.

1131

1132

A qualifying agent is subject to discipline under this part only

1133

for violations arising from a project for which he or she has

1134

assumed responsibility as set forth in this subsection.

1135

(3) The board may not approve secondary qualifying agents

1136

or financially responsible officers after October 1, 2008. This

1137

subsection applies only to persons designated sole primary

1138

qualifying agents, secondary qualifying agents, and financially

1139

responsible officers before to October 1, 2008.

1140

(a)(1) A qualifying agent is a primary qualifying agent

1141

unless he or she is a secondary qualifying agent under this

1142

section.

1143

(a) All primary qualifying agents for a business

1144

organization are jointly and equally responsible for supervision

1145

of all operations of the business organization; for all field

1146

work at all sites; and for financial matters, both for the

1147

organization in general and for each specific job.

1148

(b) Upon approval by the board, a business entity may

1149

designate a financially responsible officer for purposes of

1150

certification or registration. A financially responsible officer

1151

is shall be responsible for all financial aspects of the business

1152

organization and may not be designated as the primary qualifying

1153

agent. The designated financially responsible officer shall

1154

furnish evidence of the financial responsibility, credit, and

1155

business reputation of either himself or herself, or the business

1156

organization he or she desires to qualify, as determined

1157

appropriate by the board.

1158

1159

registered financially responsible officer, the primary

1160

qualifying agent shall be responsible for all construction

1161

activities of the business organization, both in general and for

1162

each specific job.

1163

(d) The board shall adopt rules prescribing the

1164

qualifications for financially responsible officers, including

1165

net worth, cash, and bonding requirements. These qualifications

1166

must be at least as extensive as the requirements for the

1167

financial responsibility of qualifying agents.

1168

(c)(2)(a) One of the qualifying agents for a business

1169

organization that has more than one qualifying agent may be

1170

designated as the sole primary qualifying agent for the business

1171

organization by a joint agreement that is executed, on a form

1172

provided by the board, by all qualifying agents for the business

1173

organization.

1174

(d)(b) The joint agreement must be submitted to the board

1175

for approval. If the board determines that the joint agreement is

1176

in good order, it shall approve the designation and immediately

1177

notify the qualifying agents of such approval. The designation

1178

made by the joint agreement is effective upon receipt of the

1179

notice by the qualifying agents.

1180

(e)(c) The qualifying agent designated for a business

1181

organization by a joint agreement is the sole primary qualifying

1182

agent for the business organization, and all other qualifying

1183

agents for the business organization are secondary qualifying

1184

agents.

1185

(f)(d) A designated sole primary qualifying agent has all

1186

the responsibilities and duties of a primary qualifying agent,

1187

notwithstanding that there are secondary qualifying agents for

1188

specified jobs. The designated sole primary qualifying agent is

1189

jointly and equally responsible with secondary qualifying agents

1190

for field work supervision.

1191

(g)(e) A secondary qualifying agent is responsible only

1192

for:

1193

1. The supervision of field work at sites where his or her

1194

license was used to obtain the building permit; and

1195

2. Any other work for which he or she accepts

1196

responsibility.

1197

1198

A secondary qualifying agent is not responsible for supervision

1199

of financial matters.

1200

(h)(3)(a) A qualifying agent who has been designated by a

1201

joint agreement as the sole primary qualifying agent for a

1202

business organization may terminate this status as such by giving

1203

actual notice to the business organization, to the board, and to

1204

all secondary qualifying agents of his or her intention to

1205

terminate this status. The notice to the board must include proof

1206

satisfactory to the board that he or she has given the notice

1207

required in this paragraph.

1208

(i)(b) The status of the qualifying agent shall cease upon

1209

the designation of a new primary qualifying agent or 60 days

1210

after satisfactory notice of termination has been provided to the

1211

board, whichever first occurs.

1212

(j)(c) If no new primary qualifying agent has been

1213

designated within 60 days, all secondary qualifying agents for

1214

the business organization shall become primary qualifying agents

1215

unless the joint agreement specifies that one or more of them

1216

shall become sole qualifying agents under such circumstances, in

1217

which case only they shall become sole qualifying agents.

1218

(k)(d) Any change in the status of a qualifying agent is

1219

prospective only. A qualifying agent is not responsible for his

1220

or her predecessor's actions but is responsible, even after a

1221

change in status, for matters for which he or she was responsible

1222

while in a particular status.

1223

Section 8. Subsections (1) through (5) of section 489.127,

1224

Florida Statutes, are amended to read:

1225

489.127 Prohibitions; penalties.--

1226

(1) A No person or business organization may not shall:

1227

(a) Falsely claim to be the holder of a valid certificate,

1228

registration, or business registration hold himself or herself or

1229

a business organization out as a licensee, certificateholder, or

1230

registrant;

1231

(b) Falsely impersonate the holder of a valid certificate,

1232

registration, or business registration a certificateholder or

1233

registrant;

1234

1235

registration, or business registration certificate of authority

1236

of another;

1237

(d) Knowingly give false or forged evidence to the board or

1238

a member thereof;

1239

(e) Use or attempt to use a certificate, registration, or

1240

business registration certificate of authority which has been

1241

suspended or revoked;

1242

(f) Engage in the business or act in the capacity of a

1243

contractor or advertise himself or herself or a business

1244

organization as available to engage in the business or act in the

1245

capacity of a contractor without being duly registered or

1246

certified or holding having a business registration pursuant to

1247

this part certificate of authority;

1248

(g) Operate a business organization engaged in contracting

1249

after 60 days following the termination of its only qualifying

1250

agent without designating another primary qualifying agent,

1251

except as provided in ss. 489.119 and 489.1195;

1252

(h) Commence or perform work for which a building permit is

1253

required pursuant to part IV VII of chapter 553 without such

1254

building permit being in effect; or

1255

(i) Willfully or deliberately disregard or violate any

1256

municipal or county ordinance relating to uncertified or

1257

unregistered contractors.

1258

1259

For purposes of this subsection, a person or business

1260

organization operating on an inactive or suspended certificate,

1261

registration, or business registration certificate of authority

1262

is not duly certified or registered and is considered unlicensed.

1263

A business tax receipt issued under the authority of chapter 205

1264

is not a license for purposes of this part.

1265

(2)(a) Any unlicensed person or business organization who

1266

violates any of the provisions of subsection (1) commits a

1267

misdemeanor of the first degree, punishable as provided in s.

1268

775.082 or s. 775.083.

1269

(b) Any unlicensed person or business organization who

1270

commits a violation of subsection (1) after having been

1271

previously found guilty of such violation commits a felony of the

1272

third degree, punishable as provided in s. 775.082 or s. 775.083.

1273

1274

commits a violation of subsection (1) during the existence of a

1275

state of emergency declared by executive order of the Governor

1276

commits a felony of the third degree, punishable as provided in

1277

s. 775.082 or s. 775.083.

1278

(d) Any person or business organization who operates as a

1279

pollutant storage systems contractor, precision tank tester, or

1280

internal pollutant storage tank lining applicator in violation of

1281

subsection (1) commits a felony of the third degree, punishable

1282

as provided in s. 775.082 or s. 775.083.

1283

1284

The remedies set forth in this subsection are not exclusive and

1285

may be imposed in addition to the remedies set forth in s.

1286

489.129(2).

1287

(3) The department may issue a stop-work order for all

1288

unlicensed work on a project upon finding probable cause to

1289

believe that construction work which requires certification, or

1290

registration, or business registration is being performed without

1291

a current, valid certificate, or registration, or business

1292

registration. Stop-work orders may be enforced using any cease

1293

and desist or other related action by the department as set forth

1294

in s. 455.228.

1295

(4)(a) A certified or registered contractor, or contractor

1296

authorized by a local construction regulation board to engage in

1297

do contracting, may not enter into an agreement, oral or written,

1298

whereby his or her certification number or registration number is

1299

used, or to be used, by a person who is not certified or

1300

registered as provided for in this part chapter, or used, or to

1301

be used, by a business organization for which he or she is not a

1302

qualifying agent or by a business organization that is not

1303

registered duly qualified as provided for in this part chapter to

1304

engage in the business, or act in the capacity, of a contractor.

1305

(b) A certified or registered contractor, or contractor

1306

authorized by a local construction regulation board to engage in

1307

do contracting, may not knowingly allow his or her certification

1308

number or registration number to be used by a person who is not

1309

certified or registered as provided for in this part chapter, by

1310

a business organization for which he or she is not a qualifying

1311

agent, or used by a business organization that is not registered

1312

qualified as provided for in this part chapter to engage in the

1313

business, or act in the capacity of, a contractor.

1314

1315

authorized by a local construction regulation board to engage in

1316

do contracting, may not apply for or obtain a building permit for

1317

construction work unless the certified or registered contractor,

1318

or contractor authorized by a local construction regulation board

1319

to do contracting, or business organization duly qualified by

1320

said contractor, has entered into a contract to make improvements

1321

to, or perform the contracting at, the real property specified in

1322

the application or permit. This paragraph does not prohibit a

1323

contractor from applying for or obtaining a building permit to

1324

allow the contractor to perform work for another person without

1325

compensation or to perform work on property that is owned by the

1326

contractor.

1327

(d)1. A person who violates this subsection commits a

1328

misdemeanor of the first degree, punishable as provided in s.

1329

775.082 or s. 775.083.

1330

2. A person who violates this subsection after having been

1331

previously found guilty of such violation commits a felony of the

1332

third degree, punishable as provided in s. 775.082 or s. 775.083.

1333

(5) Each county or municipality may, at its option,

1334

designate one or more of its code enforcement officers, as

1335

defined in chapter 162, to enforce, as set out in this

1336

subsection, the provisions of subsection (1) and s. 489.132(1)

1337

against persons who engage in activity for which a county or

1338

municipal certificate of competency or license or state

1339

certification or registration is required.

1340

(a) A code enforcement officer designated pursuant to this

1341

subsection may issue a citation for any violation of subsection

1342

(1) or s. 489.132(1) whenever, based upon personal investigation,

1343

the code enforcement officer has reasonable and probable grounds

1344

to believe that such a violation has occurred.

1345

(b) A citation issued by a code enforcement officer shall

1346

be in a form prescribed by the local governing body of the county

1347

or municipality and shall state:

1348

1. The time and date of issuance.

1349

2. The name and address of the person to whom the citation

1350

is issued.

1351

3. The time and date of the violation.

1352

4. A brief description of the violation and the facts

1353

constituting reasonable cause.

1354

5. The name of the code enforcement officer.

1355

6. The procedure for the person to follow in order to pay

1356

the civil penalty or to contest the citation.

1357

7. The applicable civil penalty if the person elects not to

1358

contest the citation.

1359

1360

is authorized to enforce codes and ordinances against unlicensed

1361

contractors under the provisions of this subsection and may enact

1362

an ordinance establishing procedures for implementing this

1363

subsection, including a schedule of penalties to be assessed by

1364

the code enforcement officer. The maximum civil penalty which may

1365

be levied shall not exceed $500. Moneys collected pursuant to

1366

this subsection shall be retained locally, as provided for by

1367

local ordinance, and may be set aside in a specific fund to

1368

support future enforcement activities against unlicensed

1369

contractors.

1370

(d) The act for which the citation is issued shall be

1371

ceased upon receipt of the citation; and the person charged with

1372

the violation shall elect either to correct the violation and pay

1373

the civil penalty in the manner indicated on the citation or,

1374

within 10 days of receipt of the citation, exclusive of weekends

1375

and legal holidays, request an administrative hearing before the

1376

enforcement or licensing board or designated special magistrate

1377

to appeal the issuance of the citation by the code enforcement

1378

officer.

1379

1. Hearings shall be held before an enforcement or

1380

licensing board or designated special magistrate as established

1381

by s. 162.03(2), and such hearings shall be conducted pursuant to

1382

the requirements of ss. 162.07 and 162.08.

1383

2. Failure of a violator to appeal the decision of the code

1384

enforcement officer within the time period set forth in this

1385

paragraph shall constitute a waiver of the violator's right to an

1386

administrative hearing. A waiver of the right to an

1387

administrative hearing shall be deemed an admission of the

1388

violation, and penalties may be imposed accordingly.

1389

3. If the person issued the citation, or his or her

1390

designated representative, shows that the citation is invalid or

1391

that the violation has been corrected prior to appearing before

1392

the enforcement or licensing board or designated special

1393

magistrate, the enforcement or licensing board or designated

1394

special magistrate may dismiss the citation unless the violation

1395

is irreparable or irreversible.

1396

4. Each day a willful, knowing violation continues shall

1397

constitute a separate offense under the provisions of this

1398

subsection.

1399

(e) A person cited for a violation pursuant to this

1400

subsection is deemed to be charged with a noncriminal infraction.

1401

(f) If the enforcement or licensing board or designated

1402

special magistrate finds that a violation exists, the enforcement

1403

or licensing board or designated special magistrate may order the

1404

violator to pay a civil penalty of not less than the amount set

1405

forth on the citation but not more than $1,000 per day for each

1406

violation. In determining the amount of the penalty, the

1407

enforcement or licensing board or designated special magistrate

1408

shall consider the following factors:

1409

1. The gravity of the violation.

1410

2. Any actions taken by the violator to correct the

1411

violation.

1412

3. Any previous violations committed by the violator.

1413

(g) Upon written notification by the code enforcement

1414

officer that a violator had not contested the citation or paid

1415

the civil penalty within the timeframe allowed on the citation,

1416

or if a violation has not been corrected within the timeframe set

1417

forth on the notice of violation, the enforcement or licensing

1418

board or the designated special magistrate shall enter an order

1419

ordering the violator to pay the civil penalty set forth on the

1420

citation or notice of violation, and a hearing shall not be

1421

necessary for the issuance of such order.

1422

(h) A certified copy of an order imposing a civil penalty

1423

against an uncertified contractor may be recorded in the public

1424

records and thereafter shall constitute a lien against any real

1425

or personal property owned by the violator. Upon petition to the

1426

circuit court, such order may be enforced in the same manner as a

1427

court judgment by the sheriffs of this state, including a levy

1428

against personal property; however, such order shall not be

1429

deemed to be a court judgment except for enforcement purposes. A

1430

civil penalty imposed pursuant to this part shall continue to

1431

accrue until the violator comes into compliance or until judgment

1432

is rendered in a suit to foreclose on a lien filed pursuant to

1433

this subsection, whichever occurs first. After 3 months from the

1434

filing of any such lien which remains unpaid, the enforcement

1435

board or licensing board or designated special magistrate may

1436

authorize the local governing body's attorney to foreclose on the

1437

lien. No lien created pursuant to the provisions of this part may

1438

be foreclosed on real property which is a homestead under s. 4,

1439

Art. X of the State Constitution.

1440

(i) This subsection does not authorize or permit a code

1441

enforcement officer to perform any function or duty of a law

1442

enforcement officer other than a function or duty that is

1443

authorized in this subsection.

1444

(j) An aggrieved party, including the local governing body,

1445

may appeal a final administrative order of an enforcement board

1446

or licensing board or designated special magistrate to the

1447

circuit court. Such an appeal shall not be a hearing de novo but

1448

shall be limited to appellate review of the record created before

1449

the enforcement board or licensing board or designated special

1450

magistrate. An appeal shall be filed within 30 days of the

1451

execution of the order to be appealed.

1452

(k) All notices required by this subsection shall be

1453

provided to the alleged violator by certified mail, return

1454

receipt requested; by hand delivery by the sheriff or other law

1455

enforcement officer or code enforcement officer; by leaving the

1456

notice at the violator's usual place of residence with some

1457

person of his or her family above 15 years of age and informing

1458

such person of the contents of the notice; or by including a

1459

hearing date within the citation.

1460

(l) For those counties which enact ordinances to implement

1461

this subsection and which have local construction licensing

1462

boards or local government code enforcement boards, the local

1463

construction licensing board or local government code enforcement

1464

board shall be responsible for the administration of such

1465

citation program and training of code enforcement officers. The

1466

local governing body of the county shall enter into interlocal

1467

agreements with any municipalities in the county so that such

1468

municipalities may, by ordinance, resolution, policy, or

1469

administrative order, authorize individuals to enforce the

1470

provisions of this subsection. Such individuals shall be subject

1471

to the requirements of training as specified by the local

1472

construction licensing board.

1473

(m) Any person who willfully refuses to sign and accept a

1474

citation issued by a code enforcement officer commits a

1475

misdemeanor of the second degree, punishable as provided in s.

1476

775.082 or s. 775.083.

1477

(n) Nothing contained in this subsection shall prohibit a

1478

county or municipality from enforcing its codes or ordinances by

1479

any other means.

1480

(o) Nothing in this subsection shall be construed to

1481

authorize local jurisdictions to exercise disciplinary authority

1482

or procedures established in this subsection against an

1483

individual holding a proper valid certificate issued pursuant to

1484

this part.

1485

Section 9. Section 489.128, Florida Statutes, is amended to

1486

read:

1487

489.128 Contracts entered into by unlicensed contractors

1488

unenforceable.--

1489

(1) As a matter of public policy, contracts entered into on

1490

or after October 1, 1990, by a person or business organization

1491

that is not licensed as required by this part an unlicensed

1492

contractor shall be unenforceable in law or in equity by such the

1493

unlicensed party contractor.

1494

(a) For purposes of this section, a person an individual is

1495

unlicensed if the person individual does not have a certificate

1496

or registration license required by this part concerning the

1497

scope of the work to be performed under the contract. For

1498

purposes of this section, a business organization is unlicensed

1499

if the business organization does not have a primary or secondary

1500

qualifying agent holding a certificate or registration required

1501

by in accordance with this part concerning the scope of the work

1502

to be performed under the contract. For purposes of this section,

1503

if no state or local certificate, registration, or business

1504

registration license is required for the scope of work to be

1505

performed under the contract, the person or business organization

1506

individual performing that work shall not be considered

1507

unlicensed.

1508

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

1509

business organization may not be considered unlicensed for

1510

failing to have a business tax receipt issued under the authority

1511

of chapter 205. For purposes of this section, a business

1512

organization may not be considered unlicensed for failing to

1513

apply for or obtain have a business registration certificate of

1514

authority as required by ss. 489.119 and 489.127. For purposes of

1515

this section, a business organization entering into the contract

1516

may not be considered unlicensed if, before the date established

1517

by paragraph (c), an individual possessing a license required by

1518

this part concerning the scope of the work to be performed under

1519

the contract has submitted an application for a certificate of

1520

authority designating that individual as a qualifying agent for

1521

the business organization entering into the contract, and the

1522

application was not acted upon by the department or applicable

1523

board within the time limitations imposed by s. 120.60.

1524

1525

organization contractor shall be considered unlicensed only if

1526

the person or business organization contractor was unlicensed on

1527

the effective date of the original contract for the work, if

1528

stated therein, or, if not stated, the date the last party to the

1529

contract executed it, if stated therein. If the contract does not

1530

establish such a date, the person or business organization

1531

contractor shall be considered unlicensed only if the person or

1532

business organization contractor was unlicensed on the first date

1533

upon which the person or business organization contractor

1534

provided labor, services, or materials under the contract.

1535

(2) Notwithstanding any other provision of law to the

1536

contrary, if a contract is rendered unenforceable under this

1537

section, no lien or bond claim shall exist in favor of the

1538

unlicensed person or business organization contractor for any

1539

labor, services, or materials provided under the contract or any

1540

amendment thereto.

1541

(3) This section shall not affect the rights of parties

1542

other than the unlicensed person or business organization

1543

contractor to enforce contract, lien, or bond remedies. This

1544

section shall not affect the obligations of a surety that has

1545

provided a bond on behalf of an unlicensed person or business

1546

organization contractor. It shall not be a defense to any claim

1547

on a bond or indemnity agreement that the principal or indemnitor

1548

is unlicensed for purposes of this section.

1549

Section 10. Subsections (1), (5), (6), (7), (9), and (10)

1550

of section 489.129, Florida Statutes, are amended to read:

1551

489.129 Disciplinary proceedings.--

1552

(1) The board may take any of the following disciplinary

1553

actions against any certificateholder, or registrant, or

1554

registered business organization: place on probation or reprimand

1555

the person or entity licensee, revoke, suspend, or deny the

1556

issuance or renewal of the certificate, registration, or business

1557

registration certificate of authority, require financial

1558

restitution to a consumer for financial harm directly related to

1559

a violation of a provision of this part, impose an administrative

1560

fine not to exceed $10,000 per violation, require continuing

1561

education, or assess costs associated with investigation and

1562

prosecution. Such disciplinary actions may be taken, if the

1563

certificateholder, registrant, or registered business

1564

organization contractor, financially responsible officer, or

1565

business organization for which the contractor is a primary

1566

qualifying agent, a financially responsible officer, or a

1567

secondary qualifying agent responsible under s. 489.1195 is found

1568

guilty of any of the following acts:

1569

(a) Obtaining a certificate, registration, or business

1570

registration certificate of authority by fraud or

1571

misrepresentation.

1572

(b) Being convicted or found guilty of, or entering a plea

1573

of nolo contendere to, regardless of adjudication, a crime in any

1574

jurisdiction which directly relates to the practice of

1575

contracting or the ability to practice contracting.

1576

1577

(d) Performing any act which assists a person or entity in

1578

engaging in the prohibited uncertified and unregistered practice

1579

of contracting without the required certificate, registration, or

1580

business registration, if the certificateholder, or registrant,

1581

or registered business organization knew knows or had has

1582

reasonable grounds to know that the person or entity did not hold

1583

the required certificate, registration, or business registration

1584

was uncertified and unregistered.

1585

(e) Knowingly combining or conspiring with an uncertified

1586

or unregistered person or entity by allowing his or her

1587

certificate, registration, or business registration certificate

1588

of authority to be used by the uncertified or unregistered person

1589

or entity with intent to evade the provisions of this part. When

1590

a certificateholder or registrant allows his or her certificate

1591

or registration to be used by one or more business organizations

1592

without having any active participation in the operations,

1593

management, or control of such business organizations, such act

1594

constitutes prima facie evidence of an intent to evade the

1595

provisions of this part.

1596

(f) Acting in the capacity of a contractor under any

1597

certificate or registration issued hereunder except in the name

1598

of the certificateholder or registrant as set forth on the issued

1599

certificate or registration, or in accordance with the personnel

1600

of the certificateholder or registrant as set forth in the

1601

application for the certificate or registration, or as later

1602

changed as provided in this part.

1603

(g) Committing mismanagement or misconduct in the practice

1604

of contracting that causes financial harm to a customer.

1605

Financial mismanagement or misconduct occurs when:

1606

1. Valid liens have been recorded against the property of a

1607

contractor's customer for supplies or services ordered by the

1608

contractor for the customer's job; the contractor has received

1609

funds from the customer to pay for the supplies or services; and

1610

the contractor has not had the liens removed from the property,

1611

by payment or by bond, within 75 days after the date of such

1612

liens;

1613

2. The contractor has abandoned a customer's job and the

1614

percentage of completion is less than the percentage of the total

1615

contract price paid to the contractor as of the time of

1616

abandonment, unless the contractor is entitled to retain such

1617

funds under the terms of the contract or refunds the excess funds

1618

within 30 days after the date the job is abandoned; or

1619

3. The contractor's job has been completed, and it is shown

1620

that the customer has had to pay more for the contracted job than

1621

the original contract price, as adjusted for subsequent change

1622

orders, unless such increase in cost was the result of

1623

circumstances beyond the control of the contractor, was the

1624

result of circumstances caused by the customer, or was otherwise

1625

permitted by the terms of the contract between the contractor and

1626

the customer.

1627

(h) Being disciplined by any municipality or county for an

1628

act or violation of this part.

1629

(i) Failing in any material respect to comply with the

1630

provisions of this part or violating a rule or lawful order of

1631

the board.

1632

(j) Abandoning a construction project in which the

1633

contractor is engaged or under contract as a contractor. A

1634

project may be presumed abandoned after 90 days if the contractor

1635

terminates the project without just cause or without proper

1636

notification to the owner, including the reason for termination,

1637

or fails to perform work without just cause for 90 consecutive

1638

days.

1639

(k) Signing a statement with respect to a project or

1640

contract falsely indicating that the work is bonded; falsely

1641

indicating that payment has been made for all subcontracted work,

1642

labor, and materials which results in a financial loss to the

1643

owner, purchaser, or contractor; or falsely indicating that

1644

workers' compensation and public liability insurance are

1645

provided.

1646

(l) Committing fraud or deceit in the practice of

1647

contracting.

1648

(m) Committing incompetency or misconduct in the practice

1649

of contracting.

1650

(n) Committing gross negligence, repeated negligence, or

1651

negligence resulting in a significant danger to life or property.

1652

(o) Proceeding on any job without obtaining applicable

1653

local building department permits and inspections.

1654

(p) Intimidating, threatening, coercing, or otherwise

1655

discouraging the service of a notice to owner under part I of

1656

chapter 713 or a notice to contractor under chapter 255 or part I

1657

of chapter 713.

1658

(q) Failing to satisfy within a reasonable time, the terms

1659

of a civil judgment obtained against the licensee, or the

1660

business organization qualified by the licensee, relating to the

1661

practice of the licensee's profession.

1662

1663

For the purposes of this subsection, construction is considered

1664

to be commenced when the contract is executed and the contractor

1665

has accepted funds from the customer or lender. A contractor does

1666

not commit a violation of this subsection when the contractor

1667

relies on a building code interpretation rendered by a building

1668

official or person authorized by s. 553.80 to enforce the

1669

building code, absent a finding of fraud or deceit in the

1670

practice of contracting, or gross negligence, repeated

1671

negligence, or negligence resulting in a significant danger to

1672

life or property on the part of the building official, in a

1673

proceeding under chapter 120.

1674

(5) The board may not reinstate the certification,

1675

registration, or business registration certificate of authority

1676

of, or cause a certificate, registration, or business

1677

registration certificate of authority to be issued to, a person

1678

who or business organization which the board has determined is

1679

unqualified or whose certificate, registration, or business

1680

registration certificate of authority the board has suspended

1681

until it is satisfied that such person or business organization

1682

has complied with all the terms and conditions set forth in the

1683

final order and is capable of competently engaging in the

1684

business of contracting.

1685

(6)(a) The board may assess interest or penalties on all

1686

fines imposed under this part chapter against any person or

1687

business organization which has not paid the imposed fine by the

1688

due date established by rule or final order. The provisions of

1689

chapter 120 do not apply to such assessment. Interest rates to be

1690

imposed shall be established by rule and shall not be usurious.

1691

(b) Venue for all actions to enforce any fine levied by the

1692

board shall be in Leon Duval County. The board is authorized to

1693

enter into contracts with private businesses or attorneys to

1694

collect such fines with payment for such collections made on a

1695

contingent fee basis. All such contracts shall be publicly

1696

advertised and competitively awarded based upon responses

1697

submitted to a request for proposals developed by the board.

1698

(7) The board shall not issue or renew a certificate,

1699

registration, or business registration certificate of authority

1700

to any person or business organization that has been assessed a

1701

fine, interest, or costs associated with investigation and

1702

prosecution, or has been ordered to pay restitution, until such

1703

fine, interest, or costs associated with investigation and

1704

prosecution or restitution are paid in full or until all terms

1705

and conditions of the final order have been satisfied.

1706

(9) Any person certified or registered pursuant to this

1707

part who has had his or her certificate or registration license

1708

revoked is shall not be eligible to be a partner, officer,

1709

director, or trustee of a business organization seeking

1710

registration under this part and may not defined by this section

1711

or be employed in a managerial or supervisory capacity by such

1712

entity for a 5-year period. Such person is shall also be

1713

ineligible to reapply for certification or registration under

1714

this part for a period of 5 years after the effective date of the

1715

revocation.

1716

(10) If a business organization or any of its partners,

1717

officers, directors, trustees, or members is or has previously

1718

been fined for violating subsection (2) or s. 489.132, the board

1719

may, on that basis alone, revoke, suspend, place on probation, or

1720

deny issuance of a business registration to that entity or

1721

revoke, suspend, place on probation, or deny issuance of a

1722

certificate or registration to a qualifying agent for or

1723

financially responsible officer of that entity business

1724

organization.

1725

Section 11. Subsections (1), (2), and (3) of section

1726

489.131, Florida Statutes, are amended to read:

1727

489.131 Applicability.--

1728

(1) This part applies to all contractors, including, but

1729

not limited to, those engaged in contracting performing work for

1730

the state or any county or municipality. Officers of the state or

1731

any county or municipality shall determine compliance with this

1732

part before awarding any contract for construction, improvement,

1733

remodeling, or repair.

1734

(2) The state or any county or municipality shall require

1735

that bids submitted for construction, improvement, remodeling, or

1736

repair on public projects be accompanied by evidence that the

1737

bidder holds an appropriate certificate, or registration, or

1738

business registration, unless the work to be performed is exempt

1739

under s. 489.103.

1740

(3) Nothing in this part limits the power of a municipality

1741

or county:

1742

(a) To regulate the quality and character of work performed

1743

by contractors through a system of permits, fees, and inspections

1744

which is designed to secure compliance with and aid in the

1745

implementation of state and local building laws.

1746

(b) To enforce other laws for the protection of the public

1747

health and safety.

1748

1749

inspection fees for engaging in contracting or examination fees

1750

from persons who are registered with the board pursuant to local

1751

examination requirements and issue business tax receipts.

1752

However, nothing in this part shall be construed to require

1753

general contractors, building contractors, or residential

1754

contractors to obtain additional business tax receipts for

1755

specialty work when such specialty work is performed by employees

1756

of such contractors on projects for which they have substantially

1757

full responsibility and such contractors do not hold themselves

1758

out to the public as being specialty contractors.

1759

(d) To adopt any system of permits requiring submission to

1760

and approval by the municipality or county of plans and

1761

specifications for work to be performed by contractors before

1762

commencement of the work.

1763

(e) To require one bond for each contractor in an amount

1764

not to exceed $5,000, which bond shall be conditioned only upon

1765

compliance with the Florida Building Code adopted pursuant to s.

1766

553.73. Any such bond must be equally available to all

1767

contractors without regard to the period of time a contractor has

1768

been certified or registered and without regard to any financial

1769

responsibility requirements. Any such bonds shall be payable to

1770

the Florida Homeowners' Construction Recovery Fund and filed in

1771

each county or municipality in which a building permit is

1772

requested. Bond reciprocity shall be granted statewide. All such

1773

bonds shall be included in meeting any financial responsibility

1774

requirements imposed by any statute or rule. Any contractor who

1775

provides a third party insured warranty policy in connection with

1776

a new building or structure for the benefit of the purchaser or

1777

owner shall be exempt from the bond requirements under this

1778

subsection with respect to such building or structure.

1779

(e)(f) To refuse to issue permits or issue permits with

1780

specific conditions to a contractor who has committed multiple

1781

violations, when he or she has been disciplined for each of them

1782

by the board and when each disciplinary action has involved

1783

revocation or suspension of a license, imposition of an

1784

administrative fine of at least $1,000, or probation; or to issue

1785

permits with specific conditions to a contractor who, within the

1786

previous 12 months, has had disciplinary action other than a

1787

citation or letter of guidance taken against him or her by the

1788

department or by a local board or agency which licenses

1789

contractors and has reported the action pursuant to paragraph

1790

(6)(c), for engaging in the business or acting in the capacity of

1791

a contractor without a license. However, this subsection does not

1792

supersede the provisions of s. 489.113(4), and no county or

1793

municipality may require any certificateholder to obtain a local

1794

professional license or pay a local professional license fee as a

1795

condition of performing any services within the scope of the

1796

certificateholder's statewide license as established under this

1797

part.

1798

Section 12. Subsections (1), (2), and (5) of section

1799

489.132, Florida Statutes, are amended to read:

1800

489.132 Prohibited acts by unlicensed principals;

1801

investigation; hearing; penalties.--

1802

(1) No uncertified or unregistered person associated with a

1803

business association registered contracting firm qualified by the

1804

licensee under this part chapter shall:

1805

(a) Conceal or cause to be concealed, or assist in

1806

concealing, from a the primary qualifying agent, any material

1807

activities or information about the business organization

1808

contracting firm;

1809

(b) Exclude or facilitate the exclusion of any aspect of

1810

the business organization's contracting firm's financial or other

1811

business activities from a the primary qualifying agent; or

1812

1813

activities, financial or otherwise, to be conducted without the

1814

primary qualifying agent's supervision; or

1815

(c)(d) Assist or participate with any certificateholder or

1816

registrant in the violation of any provision of this part

1817

chapter.

1818

(2) The department shall cause an investigation of any

1819

incident where it appears that any uncertified or unregistered

1820

person associated with a business organization registered under

1821

this part contracting firm is in violation of this section. When,

1822

after investigation, the department finds there is probable cause

1823

to believe this section has been violated, the department shall

1824

prepare and file an administrative complaint which shall be

1825

served on the uncertified or unregistered person. The department

1826

shall prosecute the complaint pursuant to chapter 120.

1827

(5) The department may suspend, revoke, or deny issuance or

1828

renewal of a certificate, registration, or business registration

1829

certificate of authority for any individual or business

1830

organization that associates a person as an officer, director, or

1831

partner, or in a managerial or supervisory capacity, after such

1832

person has been found under a final order to have violated this

1833

section or was an officer, director, partner, trustee, or manager

1834

of a business organization disciplined by the board by

1835

revocation, suspension, or fine in excess of $2,500, upon finding

1836

reasonable cause that such person knew or reasonably should have

1837

known of the conduct leading to the discipline.

1838

Section 13. Subsections (2) and (3) of section 489.133,

1839

Florida Statutes, are amended to read:

1840

489.133 Pollutant storage systems specialty contractors;

1841

definitions; certification; restrictions.--

1842

(2) The board shall adopt rules providing standards for

1843

registration of precision tank testers who precision test a

1844

pollutant storage tank. The Department of Environmental

1845

Protection shall approve the methodology, procedures, and

1846

equipment used and shall approve the applicant as being eligible

1847

for registration as a registered precision tank tester. A

1848

registered precision tank tester is subject to the provisions of

1849

ss. 489.129 and 489.132 and is considered a contractor operating

1850

as a primary qualifying agent for the business organization

1851

entity employing him or her, which is considered a business

1852

organization subject to contracting firm for the purposes of ss.

1853

489.129 and 489.132. A person who registers under this subsection

1854

is exempt from municipal, county, or development district

1855

registration under s. 489.117 and may operate as a precision tank

1856

tester statewide.

1857

(3) The board shall adopt rules providing standards for

1858

registration of internal pollutant storage tank lining

1859

applicators who internally line pollutant storage tanks as a

1860

method of upgrading or repairing pollutant storage tanks to

1861

prevent discharge of pollutants. The Department of Environmental

1862

Protection shall approve the methodology, procedures, and

1863

equipment used and shall approve the applicant as being eligible

1864

for registration as a registered internal pollutant storage tank

1865

lining applicator. A registered internal pollutant storage tank

1866

lining applicator is subject to the provisions of ss. 489.129 and

1867

489.132, and shall be considered a contractor operating as a

1868

primary qualifying agent for the business organization entity

1869

employing him or her, which is entity shall be considered a

1870

business organization subject to contracting firm for the

1871

purposes of ss. 489.129 and 489.132.

1872

Section 14. For each business organization holding a valid

1873

certificate of authority on October 1, 2008, issued under part I

1874

of chapter 489, Florida Statutes, before October 1, 2008, the

1875

certificate of authority shall be automatically deemed converted

1876

to a business registration by operation of law on October 1,

1877

2008. Such business organization is not required to make further

1878

application or provide additional documentation to the Department

1879

of Business and Professional Regulation to effect this conversion

1880

and is not required to pay the fee or post the bond otherwise

1881

required for business registration under s. 489.119, Florida

1882

Statutes, as amended. Such business organization shall otherwise

1883

comply with all provisions of part I of chapter 489, Florida

1884

Statutes, as amended, including the obligation to update all

1885

business organization information pursuant to s. 489.119(5),

1886

Florida Statutes, as amended. A business organization that does

1887

not hold a valid certificate of authority on or after October 1,

1888

2008, issued under part I of chapter 489, Florida Statutes,

1889

before October 1, 2008, shall apply for business registration

1890

under this part, as amended, including posting the requisite

1891

bond, in order to engage in contracting through the business

1892

organization.

1893

Section 15. For purposes of s. 489.128, Florida Statutes, a

1894

business organization may not be considered unlicensed due to

1895

failure to have a certificate of authority as required under part

1896

I of chapter 489, Florida Statutes, as it existed before October

1897

1, 2008.

1898

Section 16. This act shall take effect October 1, 2008.

1899

1900

================ T I T L E A M E N D M E N T ================

1901

And the title is amended as follows:

1902

Delete everything before the enacting clause

1903

and insert:

1904

A bill to be entitled

1905

An act relating to contracting; amending s. 489.105, F.S.;

1906

redefining the terms "contractor," "contracting,"

1907

"certificate," "registration," "business organization,"

1908

"qualifying agent," and "initial issuance"; defining the

1909

terms "business registration," "person," and "demolish"

1910

for purposes related to contracting; deleting the

1911

definitions of "secondary qualifying agent" and

1912

"financially responsible officer"; amending s. 489.109,

1913

F.S.; providing for application, registration, and renewal

1914

fees for business registration; amending s. 489.111, F.S.;

1915

authorizing the Department of Business and Professional

1916

Regulation to adopt certain rules; amending s. 489.114,

1917

F.S.; requiring certain entities to provide the

1918

Construction Industry Licensing Board with evidence of

1919

workers' compensation coverage; amending s. 489.115, F.S.;

1920

authorizing certain certificateholders or registrants to

1921

apply certain courses toward fulfillment of continuing

1922

education requirements; deleting provisions relating to

1923

proof of financial responsibility; providing requirements

1924

for applicants for initial issuance of a certificate or

1925

registration; requiring that contractors maintain a bond;

1926

providing requirements for such bond; amending s. 489.119,

1927

F.S.; providing requirements for certificateholders or

1928

registrants wishing to engage in contracting through a

1929

business organization or under a name other than the one

1930

appearing on the certificate or registration; deleting

1931

provisions relating to financially responsible officers;

1932

requiring the submission of certain information along with

1933

the application for business registration and required

1934

fee; requiring that such application be accompanied by a

1935

bond; providing requirements for such bond; authorizing

1936

submission of an irrevocable letter of credit in lieu of

1937

such bond; requiring that the department maintain a

1938

database of certain information; requiring that the board

1939

check applications against such database; providing

1940

penalties for certain violations; requiring the renewal of

1941

business registrations; requiring that a qualifying agent

1942

give notice of change of status or if she or she proposes

1943

to engage in contacting in his or her own name or with

1944

another business organization; providing for disciplinary

1945

action against contractors and business organizations;

1946

authorizing the board to require certain information if a

1947

qualifying agent desires to qualify additional business

1948

organizations; amending s. 489.1195, F.S.; providing

1949

responsibilities of certificateholders, registrants, and

1950

qualifying agents; prohibiting the board from approving

1951

secondary qualifying agents after a specified date;

1952

amending s. 489.127, F.S.; prohibiting persons and

1953

business organizations from performing certain actions;

1954

conforming provisions relating to violations to changes

1955

made by the act; providing additional prohibitions;

1956

amending s. 489.128, F.S.; providing that certain

1957

contracts are unenforceable as a matter of public policy;

1958

providing circumstances under which certain entities are

1959

deemed "unlicensed"; providing that no lien or bond exists

1960

for labor, services, or materials if such a contract is

1961

deemed unenforceable; limiting the applicability of

1962

certain provisions; amending s. 489.129, F.S.; authorizing

1963

the board to take certain disciplinary actions against a

1964

certificateholder, registrant, or registered business

1965

organization under certain conditions; prohibiting the

1966

board from reinstating a certification, registration, or

1967

business registration under certain circumstances;

1968

prohibiting the board from issuing or renewing a

1969

certification, registration, or business registration

1970

under certain circumstances; prohibiting persons or

1971

entities who have had their certificate or license revoked

1972

from performing certain functions for a specified period;

1973

prohibiting such persons from reapplying for certification

1974

or registration for a specified period; amending s.

1975

489.131, F.S.; providing for applicability of certain

1976

provisions of state law; amending s. 489.132, F.S.;

1977

prohibiting uncertified or unregistered persons from

1978

performing certain actions; providing for investigations,

1979

hearings, and penalties regarding such actions by

1980

uncertified or unregistered persons; amending s. 489.133,

1981

F.S.; redefining the term "registered precision tank

1982

tester" for certain purposes; providing for the automatic

1983

conversion of valid certificates of authority held by

1984

business organizations as of a specified date to business

1985

registrations; exempting business organizations whose

1986

certificates are converted from certain requirements;

1987

providing that a business organization may not be

1988

considered unlicensed for failure to have a certificate of

1989

authority as required by provisions enacted before this

1990

act; providing an effective date.

4/14/2008 8:25:00 AM 27-06601-08

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