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A bill to be entitled

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An act relating to the Construction Lien Law; amending s.

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713.13, F.S.; deleting a requirement that the notice of

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commencement state the period that the notice is effective

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if it exceeds 1 year; deleting a limitation on making

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payments after the expiration of the notice of

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commencement; deleting a requirement that the improvement

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be commenced within 90 days after recording the notice of

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commencement; amending s. 713.24, F.S., relating to the

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transfer of liens; conforming a cross-reference; providing

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an effective date.

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

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     Section 1.  Section 713.13, Florida Statutes, is amended to

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read:

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     713.13  Notice of commencement.--

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     (1)(a)  Except for an improvement that is exempt pursuant to

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s. 713.02(5), an owner or the owner's authorized agent before

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actually commencing to improve any real property, or recommencing

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completion of any improvement after default or abandonment,

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whether or not a project has a payment bond complying with s.

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713.23, shall record a notice of commencement in the clerk's

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office and forthwith post either a certified copy thereof or a

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notarized statement that the notice of commencement has been

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filed for recording along with a copy thereof. The notice of

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commencement shall contain the following information:

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     1.  A description sufficient for identification of the real

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property to be improved. The description should include the legal

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description of the property and also should include the street

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address and tax folio number of the property if available or, if

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there is no street address available, such additional information

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as will describe the physical location of the real property to be

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improved.

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     2.  A general description of the improvement.

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

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in the site of the improvement, and the name and address of the

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fee simple titleholder, if other than such owner.

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     4.  The name and address of the contractor.

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

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

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

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construction of the improvements.

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

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than himself or herself who may be designated by the owner as the

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person upon whom notices or other documents may be served under

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this part; and service upon the person so designated constitutes

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service upon the owner.

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     (b)  The owner, at his or her option, may designate a person

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in addition to himself or herself to receive a copy of the

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lienor's notice as provided in s. 713.06(2)(b), and if he or she

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does so, the name and address of such person must be included in

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the notice of commencement.

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

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named in the notice of commencement expresses a period of time

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for completion for the construction of the improvement greater

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

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

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time. Any payments made by the owner after the expiration of the

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notice of commencement are considered improper payments.

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

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the following form:

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Permit No._____Tax Folio No._____

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NOTICE OF COMMENCEMENT

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State of_____

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County of_____

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The undersigned hereby gives notice that improvement will be made

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to certain real property, and in accordance with Chapter 713,

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Florida Statutes, the following information is provided in this

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Notice of Commencement.

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     1.  Description of property:   (legal description of the

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property, and street address if available)  .

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     2.  General description of improvement:_____.

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     3.  Owner information:_____.

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     a.  Name and address:_____.

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     b.  Interest in property:_____.

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

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than Owner):_____.

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

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     b.  Contractor's phone number:_____.

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     5.  Surety

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     a.  Name and address:_____.

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     b.  Phone number:_____.

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     c.  Amount of bond: $_____.

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

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     b.  Lender's phone number:_____.

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

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Owner upon whom notices or other documents may be served as

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

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address)  .

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     b.  Phone numbers of designated persons:_____.

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

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_______________ of _______________ to receive a copy of the

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

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Statutes.

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     b.  Phone number of person or entity designated by

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owner:_____.

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     9.  Expiration date of notice of commencement (the

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

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different date is specified)_____.

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

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EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER

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PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA

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STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS TO

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YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND

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POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU INTEND

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TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN ATTORNEY

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BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF COMMENCEMENT.

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  (Signature of Owner or Owner's Authorized

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Officer/Director/Partner/Manager)  

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  (Signatory's Title/Office)  

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The foregoing instrument was acknowledged before me this _____

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day of _____,   (year)  , by   (name of person)   as   (type of

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authority, . . . e.g. officer, trustee, attorney in fact)   for  

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

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  (Signature of Notary Public - State of Florida)  

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  (Print, Type, or Stamp Commissioned Name of Notary Public)  

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     Personally Known _____ OR Produced Identification _____

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     Type of Identification Produced_______________

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Verification pursuant to Section 92.525, Florida Statutes.

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

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

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my knowledge and belief.

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  (Signature of Natural Person Signing Above)

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     (d)(e) A copy of any payment bond must be attached at the

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time of recordation of the notice of commencement. The failure to

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attach a copy of the bond to the notice of commencement when the

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notice is recorded negates the exemption provided in s.

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713.02(6). However, if a payment bond under s. 713.23 exists but

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was not attached at the time of recordation of the notice of

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commencement, the bond may be used to transfer any recorded lien

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of a lienor except that of the contractor by the recordation and

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service of a notice of bond pursuant to s. 713.23(2). The notice

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requirements of s. 713.23 apply to any claim against the bond;

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however, the time limits for serving any required notices shall

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begin running from the later of the time specified in s. 713.23

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or the date the notice of bond is served on the lienor.

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     (e)(f) The giving of a notice of commencement is effective

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upon the filing of the notice in the clerk's office.

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     (f)(g) The owner must sign the notice of commencement and

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no one else may be permitted to sign in his or her stead.

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     (2) If the improvement described in the notice of

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commencement is not actually commenced within 90 days after the

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recording thereof, such notice is void and of no further effect.

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     (2)(3) The recording of a notice of commencement does not

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constitute a lien, cloud, or encumbrance on real property, but

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gives constructive notice that claims of lien under this part may

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be recorded and may take priority as provided in s. 713.07. The

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posting of a copy does not constitute a lien, cloud, or

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encumbrance on real property, nor actual or constructive notice

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of any of them.

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     (3)(4) This section does not apply to an owner who is

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constructing improvements described in s. 713.04.

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     (4)(5)(a) A notice of commencement that is recorded within

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the effective period may be amended to extend the effective

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period, change erroneous information in the original notice, or

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add information that was omitted from the original notice.

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However, in order to change contractors, a new notice of

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commencement or notice of recommencement must be executed and

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recorded.

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     (b)  The amended notice must identify the official records

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book and page where the original notice of commencement is

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recorded, and a copy of the amended notice must be served by the

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owner upon the contractor and each lienor who serves notice

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before or within 30 days after the date the amended notice is

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recorded.

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     (5)(6) Unless otherwise provided in the notice of

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commencement or a new or amended notice of commencement, a notice

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of commencement is not effectual in law or equity against a

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conveyance, transfer, or mortgage of or lien on the real property

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described in the notice, or against creditors or subsequent

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purchasers for a valuable consideration, after 1 year after the

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date of recording the notice of commencement.

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     (6)(7) A lender must, prior to the disbursement of any

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construction funds to the contractor, record the notice of

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commencement in the clerk's office as required by this section;

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however, the lender is not required to post a certified copy of

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the notice at the construction site. The posting of the notice at

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the construction site remains the owner's obligation. The failure

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of a lender to record the notice of commencement as required by

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this subsection renders the lender liable to the owner for all

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damages sustained by the owner as a result of the failure.

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Whenever a lender is required to record a notice of commencement,

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the lender shall designate the lender, in addition to others, to

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receive copies of notices to owner. This subsection does not give

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any person other than the owner a claim or right of action

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against a lender for failure to record a notice of commencement.

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     Section 2.  Subsection (4) of section 713.24, Florida

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Statutes, is amended to read:

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     713.24  Transfer of liens to security.--

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     (4)  If a proceeding to enforce a transferred lien is not

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commenced within the time specified in s. 713.22 or if it appears

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that the transferred lien has been satisfied of record, the clerk

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shall return said security upon request of the person depositing

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or filing the same, or the insurer. If a proceeding to enforce a

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lien is commenced in a court of competent jurisdiction within the

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time specified in s. 713.22 and, during such proceeding, the lien

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is transferred pursuant to this section or s. 713.13(1)(d) s.

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713.13(1)(e), an action commenced within 1 year after the

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transfer, unless otherwise shortened by operation of law, in the

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same county or circuit court to recover against the security

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shall be deemed to have been brought as of the date of filing the

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action to enforce the lien, and the court shall have jurisdiction

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over the action.

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     Section 3.  This act shall take effect July 1, 2008.