Florida Senate - 2009 SB 1422 By Senator Baker 20-01098-09 20091422__ 1 A bill to be entitled 2 An act relating to exemptions from construction 3 contracting requirements; amending s. 489.103, F.S.; 4 requiring that owners of property acting as their own 5 contractor and providing direct, onsite supervision of 6 all work not performed by licensed contractors read 7 and sign a disclosure statement before a permit is 8 issued; requiring that the disclosure statement 9 contain certain statements and provisions; providing 10 an effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Subsection (7) of section 489.103, Florida 15 Statutes, is amended to read: 16 489.103 Exemptions.—This part does not apply to: 17 (7) Owners of property when acting as their own contractor 18 and providing direct, onsite supervision themselves of all work 19 not performed by licensed contractors: 20 (a) When building or improving farm outbuildings or one 21 family or two-family residences on such property for the 22 occupancy or use of such owners and not offered for sale or 23 lease, or building or improving commercial buildings, at a cost 24 not to exceed $75,000, on such property for the occupancy or use 25 of such owners and not offered for sale or lease. In an action 26 brought under this part, proof of the sale or lease, or offering 27 for sale or lease, of any such structure by the owner-builder 28 within 1 year after completion of same creates a presumption 29 that the construction was undertaken for purposes of sale or 30 lease. 31 (b) When repairing or replacing wood shakes or asphalt or 32 fiberglass shingles on one-family, two-family, or three-family 33 residences for the occupancy or use of such owner or tenant of 34 the owner and not offered for sale within 1 year after 35 completion of the work and when the property has been damaged by 36 natural causes from an event recognized as an emergency 37 situation designated by executive order issued by the Governor 38 declaring the existence of a state of emergency as a result and 39 consequence of a serious threat posed to the public health, 40 safety, and property in this state. 41 This subsection does not exempt any person who is employed by or 42 has a contract with such owner and who acts in the capacity of a 43 contractor. The owner may not delegate the owner's 44 responsibility to directly supervise all work to any other 45 person unless that person is registered or certified under this 46 part and the work being performed is within the scope of that 47 person's license. For the purposes of this subsection, the term 48 “owners of property” includes the owner of a mobile home 49 situated on a leased lot. To qualify for exemption under this 50 subsection, an owner must personally appear and sign the 51 building permit application and must satisfy local permitting 52 agency requirements, if any, proving that the owner has a 53 complete understanding of the owner's obligations under the law 54 as specified in the disclosure statement in this section. If any 55 person violates the requirements of this subsection, the local 56 permitting agency shall withhold final approval, revoke the 57 permit, or pursue any action or remedy for unlicensed activity 58 against the owner and any person performing work that requires 59 licensure under the permit issued. The local permitting agency 60 shall provide the person with a disclosure statement, which 61 shall be read and signed by the property owner or owner-builder, 62 in substantially the following form: 63 1. I understand that state law requires construction to be 64 done by licensed contractors and I have applied for an owner 65 builder permit under an exemption to that law. The exemption 66 provides that I, as the owner of the property listed, may act as 67 my own contractor with certain restrictions even though I do not 68 have a license. 69 2. I understand that building permits are not required to 70 be signed by a property owner unless the owner is responsible 71 for the construction and is not hiring a licensed contractor to 72 assume this responsibility. 73 3. I understand that as an owner-builder, I am the 74 responsible party of record on the permit. I understand that I 75 may protect myself from potential financial risk by hiring a 76 licensed contractor and having the permit filed in his or her 77 name instead of my own. I also understand that contractors are 78 required by law to be licensed and bonded in Florida and to list 79 their license numbers on permits and contracts. 80 4. I understand that I may build or improve a one-family or 81 two-family residence or a farm outbuilding. I may also build or 82 improve a commercial building if costs do not exceed $75,000. 83 The building or residence must be for my own use or occupancy. 84 It may not be built or substantially improved for sale or lease. 85 If a building I have built or substantially improved myself is 86 sold or leased within 1 year after the date on which 87 construction is complete, the law will presume that I built or 88 substantially improved it for sale or lease, which is a 89 violation of this exemption. 90 5. I understand that, as the owner-builder, I must provide 91 direct, onsite supervision of the construction. 92 6. I understand that I may not hire an unlicensed person to 93 act as my contractor or to supervise people working on my 94 building. It is my responsibility to make certain that people I 95 employ have the licenses required by state law or by county or 96 municipal licensing ordinances. 97 7. I understand that a frequent practice of unlicensed 98 persons is to have the property owner obtain an owner-builder 99 permit that erroneously implies that the property owner is 100 providing his or her own labor and materials. I, as an owner 101 builder, may be held liable and subject to serious financial 102 risk for any injuries sustained by an unlicensed person and his 103 or her employees while working on my property. My homeowner’s 104 insurance may not provide coverage for those injuries. I am 105 willfully acting as an owner-builder and am aware of the limits 106 of my insurance coverage for injuries to workers on my property. 107 8. I understand that I may not delegate the responsibility 108 for supervising work to a licensed contractor who is not 109 licensed to perform the work being done. Any person working on 110 my building who is not licensed must work under my direct 111 supervision and must be employed by me, which means that I must 112 deduct FICA contributions and withholding tax and provide 113 workers' compensation for that employee, all as prescribed by 114 law. I understand my failure to abide by these laws may subject 115 me to serious financial risk. 116 9. I agree that, as the party legally and financially 117 responsible for this proposed construction activity, I will 118 abide by all applicable laws and requirements that govern owner 119 builders as well as employers. I also understand that the 120 construction must comply with all applicable laws, ordinances, 121 building codes, and zoning regulations. 122 10. I understand that I may obtain more information 123 regarding my obligations as an employer from the Internal 124 Revenue Service, the United States Small Business 125 Administration, the Florida Department of Financial Services, 126 and the Florida Department of Revenue. I also understand I may 127 contact the Florida Construction Industry Licensing Board (CILB) 128 at 850-487-1395 or www.myflorida.com/dbpr/pro/cilb/index.html 129 for more information about licensed contractors. 130 11. I am aware of and consent to an owner-builder building 131 permit applied for in my name, and understand that I am the 132 party legally and financially responsible for proposed 133 construction activity at the following address: 134 135 ...(Address of location of construction activity)... 136 12. I agree to notify the issuer of this form immediately 137 of any additions, deletions, or changes to any of the 138 information I have provided on this form. 139 Licensed contractors are regulated by laws designed to protect 140 the public. If you contract with someone who does not have a 141 license, the Construction Industry Licensing Board and 142 Department of Business and Professional Regulation may be unable 143 to assist you with any financial loss you may sustain as a 144 result of a complaint. Your only remedy against unlicensed 145 contractors may be in civil court. It is also important for you 146 to understand that if an unlicensed contractor, or the 147 unlicensed contractor's employee, is injured while working on 148 your property, you may be held liable for damages. If you obtain 149 an owner-builder permit and wish to hire licensed contractors, 150 you will be responsible for verifying that the contractors are 151 properly licensed and have the required workers' compensation 152 insurance coverage. 153 Before a building permit is issued, this form must be completed 154 and signed by the property owner and returned to the local 155 permitting agency responsible for issuing the permit. A copy of 156 the property owner’s driver’s license, form notarization, or 157 other verification acceptable to the local permitting agency is 158 required to be presented when the permit is issued to verify the 159 property owner’s signature. 160 161 ...(Signature of property owner)... 162 163 ...(Name of property owner)... 164 165 ...(Date)... 166Disclosure Statement167State law requires construction to be done by licensed168contractors. You have applied for a permit under an exemption to169that law. The exemption allows you, as the owner of your170property, to act as your own contractor with certain171restrictions even though you do not have a license. You must172provide direct, onsite supervision of the construction yourself.173You may build or improve a one-family or two-family residence or174a farm outbuilding. You may also build or improve a commercial175building, provided your costs do not exceed $75,000. The176building or residence must be for your own use or occupancy. It177may not be built or substantially improved for sale or lease. If178you sell or lease a building you have built or substantially179improved yourself within 1 year after the construction is180complete, the law will presume that you built or substantially181improved it for sale or lease, which is a violation of this182exemption. You may not hire an unlicensed person to act as your183contractor or to supervise people working on your building. It184is your responsibility to make sure that people employed by you185have licenses required by state law and by county or municipal186licensing ordinances. You may not delegate the responsibility187for supervising work to a licensed contractor who is not188licensed to perform the work being done. Any person working on189your building who is not licensed must work under your direct190supervision and must be employed by you, which means that you191must deduct F.I.C.A. and withholding tax and provide workers'192compensation for that employee, all as prescribed by law. Your193construction must comply with all applicable laws, ordinances,194building codes, and zoning regulations.195 Section 2. This act shall take effect July 1, 2009.