Florida Senate - 2009                              CS for SB 560
       
       
       
       By the Committee on Regulated Industries; and Senator Bennett
       
       
       
       
       580-04104-09                                           2009560c1
    1                        A bill to be entitled                      
    2         An act relating to construction bonds; amending s.
    3         218.72, F.S.; clarifying the definition of
    4         “construction services”; amending s. 218.735, F.S.;
    5         requiring that contractors and subcontractors verify
    6         payments to local government agencies; amending s.
    7         255.05, F.S.; requiring that a surety record in the
    8         public records a payment bond for a public works
    9         construction project; requiring that the bond number
   10         be stated on the first page of a bond; prohibiting the
   11         issuing authority for a building permit or a private
   12         provider providing inspection services from inspecting
   13         the property being improved until the occurrence of
   14         certain events; providing that a payment and
   15         performance bond is not required for certain
   16         contracts; authorizing certain entities to exempt
   17         certain contracts from the requirement for a payment
   18         and performance bond; requiring that the clerk of
   19         court serve a notice of contest of lien; amending s.
   20         255.072, F.S.; clarifying the definition of
   21         “construction services”; amending s. 255.073, F.S.;
   22         requiring that contractors and subcontractors verify
   23         payments to local government agencies; amending s.
   24         713.015, F.S.; requiring that a contractor provide an
   25         owner with a general statement of an owner’s rights
   26         and responsibilities under Florida’s Construction Lien
   27         Law; requiring that a signed copy of the statement be
   28         filed with the building permit application; specifying
   29         the form and content of the statement; deleting the
   30         requirement that notice be included in the direct
   31         contract between the contractor and the owner;
   32         amending s. 713.06, F.S.; revising the form of a
   33         notice for liens of persons not in privity; amending
   34         s. 713.09, F.S.; including units in provisions
   35         relating to a single claim of lien; deleting certain
   36         requirements relating to direct contracts; amending s.
   37         713.13, F.S.; providing for the expiration of a notice
   38         of commencement; revising the form of a notice of
   39         commencement; requiring the posting of a payment bond
   40         on a job site; amending s. 713.135, F.S.; revising the
   41         warning to the owner printed on certain permit cards;
   42         deleting a requirement relating to the filing a notice
   43         of commencement before certain inspections; revising
   44         the warning to the owner provided on a building permit
   45         form; deleting provisions requiring the authority
   46         issuing a building permit to provide certain
   47         statements and information; creating s. 713.137, F.S.;
   48         prohibiting the authority issuing a building permit or
   49         a private provider providing inspection services from
   50         inspecting an improvement until certain documents have
   51         been filed and the information in the notice of
   52         commencement meets certain standards; providing
   53         exceptions; amending s. 713.16, F.S.; revising
   54         requirements for demands for a copy of a construction
   55         contract and a statement of account; authorizing a
   56         lienor who submits or mails a claim of lien to the
   57         clerk for recording to make certain demands to an
   58         owner for certain written statements; providing
   59         requirements for such written demands; amending s.
   60         713.18, F.S.; providing additional methods by which
   61         certain items may be served by mail; specifying
   62         information required on certain written instruments
   63         under certain circumstances; amending s. 713.22, F.S.;
   64         requiring that the clerk of court serve a notice of
   65         contest of lien; amending s. 713.23, F.S.; requiring
   66         that the clerk of court serve a notice of contest of
   67         nonpayment; conforming cross-references; amending s.
   68         713.24, F.S.; requiring that the clerk of court serve
   69         a copy of the certificate showing the transfer of a
   70         lien and a copy of the security if the lien is
   71         transferred to a security; authorizing a clerk to
   72         collect certain service charges under certain
   73         circumstances; amending s. 713.29, F.S.; clarifying
   74         the determination of a prevailing party for the
   75         purpose of recovering attorney’s fees; providing
   76         effective dates.
   77  
   78  Be It Enacted by the Legislature of the State of Florida:
   79  
   80         Section 1. Subsection (7) of section 218.72, Florida
   81  Statutes, is amended to read:
   82         218.72 Definitions.—As used in this part:
   83         (7) “Construction services” means all labor, services,
   84  including architectural and engineering services, and materials
   85  provided in connection with the construction, alteration,
   86  repair, demolition, reconstruction, or any other improvements to
   87  real property.
   88         Section 2. Subsection (6) of section 218.735, Florida
   89  Statutes, is amended to read:
   90         218.735 Timely payment for purchases of construction
   91  services.—
   92         (6) When a contractor receives payment from a local
   93  governmental entity for labor, services, or materials furnished
   94  by subcontractors and suppliers hired by the contractor, the
   95  contractor shall remit payment due to those subcontractors and
   96  suppliers within 10 days after the contractor’s receipt of
   97  payment. When a subcontractor receives payment from a contractor
   98  for labor, services, or materials furnished by subcontractors
   99  and suppliers hired by the subcontractor, the subcontractor
  100  shall remit payment due to those subcontractors and suppliers
  101  within 7 days after the subcontractor’s receipt of payment.
  102  Nothing herein shall prohibit a contractor or subcontractor from
  103  disputing, pursuant to the terms of the relevant contract, all
  104  or any portion of a payment alleged to be due to another party
  105  if the contractor or subcontractor notifies the party whose
  106  payment is disputed, in writing, of the amount in dispute and
  107  the actions required to cure the dispute. The contractor or
  108  subcontractor must pay all undisputed amounts due within the
  109  time limits imposed by this section and verify such payment to
  110  the local government.
  111         Section 3. Subsection (1) and paragraph (a) of subsection
  112  (2) of section 255.05, Florida Statutes, are amended to read:
  113         255.05 Bond of contractor constructing public buildings;
  114  form; action by materialmen.—
  115         (1)(a) Any person entering into a formal contract with the
  116  state or any county, municipality city, or political subdivision
  117  thereof, or other public authority or private entity, for the
  118  construction of a public building, for the prosecution and
  119  completion of a public work, or for repairs upon a public
  120  building or public work shall be required, before commencing the
  121  work or before recommencing the work after a default or
  122  abandonment, to execute and, deliver to the public owner, and
  123  record in the public records of the county where the improvement
  124  is located, a payment and performance bond with a surety insurer
  125  authorized to do business in this state as surety.
  126         (a) A public entity may not require a contractor to secure
  127  a surety bond under this section from a specific agent or
  128  bonding company.
  129         (b) The bond must state on its front page: the name,
  130  principal business address, and phone number of the contractor,
  131  the surety, the owner of the property being improved, and, if
  132  different from the owner, the contracting public entity; the
  133  contract number assigned by the contracting public entity; the
  134  bond number assigned by the surety; and a description of the
  135  project sufficient to identify it, such as a legal description
  136  or the street address of the property being improved, and a
  137  general description of the improvement.
  138         (c) Such bond shall be conditioned upon the contractor’s
  139  performance of the construction work in the time and manner
  140  prescribed in the contract and promptly making payments to all
  141  persons defined in s. 713.01 who furnish labor, services, or
  142  materials for the prosecution of the work provided for in the
  143  contract.
  144         (d)The contractor shall, upon issuance, record the payment
  145  bond in the public records of the county in which the
  146  improvement will be located.
  147         (e)1.The issuing authority for the building permit, or a
  148  private provider providing inspection services, may not inspect
  149  the property being improved until:
  150         a.The issuing authority has a copy of the contractor’s
  151  recorded payment bond on file; or
  152         b.The contracting public entity has filed with the issuing
  153  authority a notarized statement stating that the contract is
  154  exempt from the requirement for a payment bond as provided in
  155  this section.
  156         2.This paragraph does not apply to inspections for the
  157  installation of temporary electrical service or other temporary
  158  utility service, land clearing, or other preliminary site work.
  159         (f) Any claimant may apply to the governmental entity
  160  having charge of the work for copies of the contract and bond
  161  and shall thereupon be furnished with a certified copy of the
  162  contract and bond. The claimant has shall have a right of action
  163  against the contractor and surety for the amount due him or her,
  164  including unpaid finance charges due under the claimant’s
  165  contract. Such action shall not involve the public authority in
  166  any expense.
  167         (g)1.A payment and performance bond is not required for a
  168  contract with the state for $100,000 or less. When such work is
  169  done for the state and the contract is for $100,000 or less, no
  170  payment and performance bond shall be required.
  171         2.At the discretion of The official or board awarding a
  172  such contract when such work is done for a any county,
  173  municipality city, political subdivision, or public authority
  174  may exempt a contract, any person entering into such a contract
  175  which is for $200,000 or less from the requirement for a may be
  176  exempted from executing the payment and performance bond.
  177         3.When such work is done for the state, The Secretary of
  178  Management Services may delegate to a state agency agencies the
  179  authority to exempt any person entering into such a contract for
  180  amounting to more than $100,000 but less than $200,000 from the
  181  requirement for a executing the payment and performance bond. If
  182  In the event such exemption is granted, the officer or officials
  183  are shall not be personally liable to persons suffering loss
  184  because of granting such exemption. The Department of Management
  185  Services shall maintain information on the number of requests by
  186  state agencies for delegation of authority to waive the bond
  187  requirements by agency and project number and whether any
  188  request for delegation was denied and the justification for the
  189  denial.
  190         (h) Any provision in a payment bond furnished for public
  191  work contracts as provided by this subsection which restricts
  192  the classes of persons as defined in s. 713.01 protected by the
  193  bond or the venue of any proceeding relating to such bond is
  194  unenforceable.
  195         (i)(b) The Department of Management Services shall adopt
  196  rules with respect to all contracts for $200,000 or less, to
  197  provide:
  198         1. Procedures for retaining up to 10 percent of each
  199  request for payment submitted by a contractor and procedures for
  200  determining disbursements from the amount retained on a pro rata
  201  basis to laborers, materialmen, and subcontractors, as defined
  202  in s. 713.01.
  203         2. Procedures for requiring certification from laborers,
  204  materialmen, and subcontractors, as defined in s. 713.01, prior
  205  to final payment to the contractor that such laborers,
  206  materialmen, and subcontractors have no claims against the
  207  contractor resulting from the completion of the work provided
  208  for in the contract.
  209  
  210  The state is shall not be held liable to any laborer,
  211  materialman, or subcontractor for any amounts greater than the
  212  pro rata share as determined under this section.
  213         (j)(c)1. The amount of the bond shall equal the contract
  214  price, except that for a contract in excess of $250 million, if
  215  the state, county, municipality, political subdivision, or other
  216  public entity finds that a bond in the amount of the contract
  217  price is not reasonably available, the public owner shall set
  218  the amount of the bond at the largest amount reasonably
  219  available, but not less than $250 million.
  220         2. For construction-management or design-build contracts,
  221  if the public owner does not include in the bond amount the cost
  222  of design or other nonconstruction services, the bond may not be
  223  conditioned on performance of such services or payment to
  224  persons furnishing such services. Notwithstanding paragraph (h)
  225  (a), such a bond may exclude persons furnishing such services
  226  from the classes of persons protected by the bond.
  227         (2)(a)1. If a claimant is no longer furnishing labor,
  228  services, or materials on a project, a contractor or the
  229  contractor’s agent or attorney may elect to shorten the
  230  prescribed time in this paragraph within which an action to
  231  enforce any claim against a payment bond must provided pursuant
  232  to this section may be commenced by recording in the clerk’s
  233  office a notice in substantially the following form:
  234  
  235                     NOTICE OF CONTEST OF CLAIM                    
  236                        AGAINST PAYMENT BOND                       
  237  To: ...(Name and address of claimant)...
  238         You are notified that the undersigned contests your notice
  239  of nonpayment, dated ............, ........, and served on the
  240  undersigned on ............, ........, and that the time within
  241  which you may file suit to enforce your claim is limited to 60
  242  days after the date of service of this notice.
  243         DATED on ............, .........
  244  Signed:...(Contractor or Attorney)...
  245  The claim of any claimant upon whom such notice is served and
  246  who fails to institute a suit to enforce his or her claim
  247  against the payment bond within 60 days after service of such
  248  notice shall be extinguished automatically. The clerk shall
  249  serve mail a copy of the notice of contest to the claimant at
  250  the address shown in the notice of nonpayment or most recent
  251  amendment thereto and shall certify to such service on the face
  252  of such notice and record the notice. Service is complete upon
  253  mailing.
  254         2. A claimant, except a laborer, who is not in privity with
  255  the contractor shall, before commencing or not later than 45
  256  days after commencing to furnish labor, services, or materials
  257  for the prosecution of the work, furnish the contractor with a
  258  written notice that he or she intends to look to the bond for
  259  protection. A claimant who is not in privity with the contractor
  260  and who has not received payment for his or her labor, services,
  261  or materials shall deliver to the contractor and to the surety
  262  written notice of the performance of the labor or delivery of
  263  the materials or supplies and of the nonpayment. The notice of
  264  nonpayment may be served at any time during the progress of the
  265  work or thereafter but not before 45 days after the first
  266  furnishing of labor, services, or materials, and not later than
  267  90 days after the final furnishing of the labor, services, or
  268  materials by the claimant or, with respect to rental equipment,
  269  not later than 90 days after the date that the rental equipment
  270  was last on the job site available for use. Any notice of
  271  nonpayment served by a claimant who is not in privity with the
  272  contractor which includes sums for retainage must specify the
  273  portion of the amount claimed for retainage. An No action for
  274  the labor, materials, or supplies may not be instituted against
  275  the contractor or the surety unless both notices have been
  276  given. Notices required or permitted under this section may be
  277  served in accordance with s. 713.18. A claimant may not waive in
  278  advance his or her right to bring an action under the bond
  279  against the surety. In any action brought to enforce a claim
  280  against a payment bond under this section, the prevailing party
  281  is entitled to recover a reasonable fee for the services of his
  282  or her attorney for trial and appeal or for arbitration, in an
  283  amount to be determined by the court, which fee must be taxed as
  284  part of the prevailing party’s costs, as allowed in equitable
  285  actions. The time periods for service of a notice of nonpayment
  286  or for bringing an action against a contractor or a surety shall
  287  be measured from the last day of furnishing labor, services, or
  288  materials by the claimant and shall not be measured by other
  289  standards, such as the issuance of a certificate of occupancy or
  290  the issuance of a certificate of substantial completion.
  291         Section 4. Subsection (2) of section 255.072, Florida
  292  Statutes, is amended to read:
  293         255.072 Definitions.—As used in ss. 255.073-255.078, the
  294  term:
  295         (2) “Construction services” means all labor, services,
  296  including architectural and engineering services, and materials
  297  provided in connection with the construction, alteration,
  298  repair, demolition, reconstruction, or any other improvements to
  299  real property. The term “construction services” does not include
  300  contracts or work performed for the Department of
  301  Transportation.
  302         Section 5. Subsection (3) of section 255.073, Florida
  303  Statutes, is amended to read:
  304         255.073 Timely payment for purchases of construction
  305  services.—
  306         (3) When a contractor receives payment from a public entity
  307  for labor, services, or materials furnished by subcontractors
  308  and suppliers hired by the contractor, the contractor shall
  309  remit payment due to those subcontractors and suppliers within
  310  10 days after the contractor’s receipt of payment. When a
  311  subcontractor receives payment from a contractor for labor,
  312  services, or materials furnished by subcontractors and suppliers
  313  hired by the subcontractor, the subcontractor shall remit
  314  payment due to those subcontractors and suppliers within 7 days
  315  after the subcontractor’s receipt of payment. This subsection
  316  does not prohibit a contractor or subcontractor from disputing,
  317  pursuant to the terms of the relevant contract, all or any
  318  portion of a payment alleged to be due to another party if the
  319  contractor or subcontractor notifies the party whose payment is
  320  disputed, in writing, of the amount in dispute and the actions
  321  required to cure the dispute. The contractor or subcontractor
  322  must pay all undisputed amounts due within the time limits
  323  imposed by this subsection and verify such payment to the local
  324  government.
  325         Section 6. Section 713.015, Florida Statutes, is amended to
  326  read:
  327         713.015 General statement of owner’s right and
  328  responsibilities Mandatory provisions for direct contracts.—
  329         (1) For any direct contract greater than $2,500 between an
  330  owner and a contractor, related to improvements to real property
  331  consisting of single or multiple family dwellings up to and
  332  including four units, the contractor must provide the owner with
  333  a copy of the signed and dated general statement of an owner’s
  334  rights and responsibilities under Florida’s Construction Lien
  335  Law as described in subsection (2), which must be contain the
  336  following notice provision printed in no less than 12-point,
  337  capitalized, boldfaced type on the front page of the contract or
  338  on a separate page, signed by the owner and dated, and submitted
  339  with the original building permit application pursuant to s.
  340  713.135. If the contractor applies for the building permit, the
  341  contractor must provide to the owner a signed and dated copy of
  342  the general statement of an owner’s rights and
  343  responsibilities.:
  344  
  345  ACCORDING TO FLORIDA’S CONSTRUCTION LIEN LAW (SECTIONS 713.001
  346  713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR
  347  PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A
  348  RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY.
  349  THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR CONTRACTOR
  350  OR A SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB
  351  SUBCONTRACTORS, OR MATERIAL SUPPLIERS, THOSE PEOPLE WHO ARE OWED
  352  MONEY MAY LOOK TO YOUR PROPERTY FOR PAYMENT, EVEN IF YOU HAVE
  353  ALREADY PAID YOUR CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR
  354  CONTRACTOR, YOUR CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR
  355  PROPERTY. THIS MEANS IF A LIEN IS FILED YOUR PROPERTY COULD BE
  356  SOLD AGAINST YOUR WILL TO PAY FOR LABOR, MATERIALS, OR OTHER
  357  SERVICES THAT YOUR CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED
  358  TO PAY. TO PROTECT YOURSELF, YOU SHOULD STIPULATE IN THIS
  359  CONTRACT THAT BEFORE ANY PAYMENT IS MADE, YOUR CONTRACTOR IS
  360  REQUIRED TO PROVIDE YOU WITH A WRITTEN RELEASE OF LIEN FROM ANY
  361  PERSON OR COMPANY THAT HAS PROVIDED TO YOU A “NOTICE TO OWNER.”
  362  FLORIDA’S CONSTRUCTION LIEN LAW IS COMPLEX, AND IT IS
  363  RECOMMENDED THAT YOU CONSULT AN ATTORNEY.
  364         (2)The general statement of an owner’s rights and
  365  responsibilities under Florida’s Construction Lien Law must be
  366  in substantially the following form, must include the
  367  information contained in the following form, and must include a
  368  copy of a notice of commencement as provided in s. 713.13(1), a
  369  waiver and release of lien upon progress payment as provided in
  370  s. 713.20(4), a waiver and release of lien upon final payment as
  371  provided in s. 713.20(5), a request for sworn statement of
  372  account as provided in s. 713.16, and a contractor’s final
  373  payment affidavit as provided in s. 713.06(3):
  374  
  375                        GENERAL STATEMENT OF                       
  376                 OWNER’S RIGHTS AND RESPONSIBILITIES               
  377                UNDER FLORIDA’S CONSTRUCTION LIEN LAW              
  378  
  379         ABOUT THIS DOCUMENT.—Florida law requires your contractor
  380  to provide you with this document and the attached statutory
  381  forms when you are contracting to make improvements to real
  382  property. Therefore, it is critical that you have some
  383  understanding of Florida’s construction lien and payment laws
  384  and take appropriate steps to protect your investment and
  385  fulfill your obligations to those who provide labor and
  386  materials for your project.
  387  
  388         You must acknowledge that you have received and read this
  389  document by signing on the signature page. The signed original
  390  document must be delivered to the building permit authority,
  391  along with the building permit application for your project.
  392  Your building permit application will not be processed unless
  393  this signed document is in the file. You need to retain a copy
  394  of the filed document and the attached statutory forms so that
  395  you can follow the procedures described in the document and
  396  identify the proper statutory forms as you proceed with your
  397  construction project. If your contractor applies for the
  398  building permit, he or she must provide you with a copy of the
  399  signed and dated general statement of an owner’s rights and
  400  responsibilities.
  401  
  402         THE FLORIDA CONSTRUCTION LIEN LAW.—Part I of chapter 713,
  403  Florida Statutes (F.S.), governs private construction projects
  404  in this state. The complete text of this law can be found at
  405  www.leg.state.fl.us. This general statement is intended as a
  406  guide and does not take precedence over the language of
  407  Florida’s Construction Lien Law.
  408  
  409         Under this law, those who work on your property or provide
  410  materials and services and who are not paid in full have a right
  411  to enforce their claim for payment against your property. This
  412  claim is known as a construction lien. If your contractor or a
  413  subcontractor fails to pay subcontractors, sub-subcontractors,
  414  or material suppliers, those people who are owed money may look
  415  to your property for payment even if you have already paid your
  416  contractor in full. If you fail to pay your contractor, your
  417  contractor may also have a lien on your property. This means
  418  that if a lien is filed, your property could be sold against
  419  your will to pay for labor, materials, or other services that
  420  your contractor or a subcontractor may have failed to pay.
  421  
  422         The law also provides procedures to protect owners and
  423  guarantee that you will never have to pay more than the amount
  424  of your contract if you make proper payments. Although the
  425  construction lien law has many complexities, the steps owners
  426  can take to protect themselves and establish a “proper payment
  427  defense” are simple, but very important.
  428  
  429         STEP 1 — THE NOTICE OF COMMENCEMENT.—An owner is required
  430  by law to complete, sign, and record in the public records an
  431  accurate Notice of Commencement for all direct contracts that
  432  exceed $2,500, which notice provides certain specified
  433  information. The information provided in the recorded Notice of
  434  Commencement is relied upon by all parties who provide labor and
  435  materials to your project. A copy of the statutory Notice of
  436  Commencement form, s. 713.13, F.S., is attached to this
  437  document.
  438  
  439         If a lender is financing your project, the lender will
  440  assist you in completing the Notice of Commencement and is
  441  responsible for recording it in the public records. It is
  442  critical that your Notice of Commencement be recorded after any
  443  construction loan or mortgage documents are recorded. If you do
  444  not have a lender, preparing and recording the Notice of
  445  Commencement is your responsibility. The Notice of Commencement
  446  must be recorded before commencing construction and posted on
  447  your jobsite. For most projects, a copy of the recorded Notice
  448  of Commencement must be submitted to the building permit
  449  authority before the first building inspection.
  450  
  451         STEP 2 — MONITOR THE DOCUMENTS AND NOTICES YOU RECEIVE.
  452  Pick up your certified mail. Most lien notices are served by
  453  certified mail and you need to know who is providing labor and
  454  materials to your project. Section 713.18, F.S., provides that
  455  any properly addressed notices that are returned to the sender
  456  through no fault of the sender are considered served on the date
  457  sent, so failing to claim certified mail only hurts you.
  458  
  459         If you expect to be absent for periods of time during your
  460  project, you should have an attorney or other agent in a
  461  position of trust who understands the law handle these details
  462  for you. Make sure someone is receiving your mail and taking
  463  steps to obtain the necessary lien releases before making
  464  payments to your contractor. If you receive anything that you do
  465  not understand, seek the assistance of an experienced
  466  construction law attorney.
  467  
  468         STEP 3 — OBTAIN SIGNED LIEN WAIVERS EACH TIME YOU MAKE A
  469  PAYMENT TO YOUR CONTRACTOR.—Each time you pay your contractor
  470  you should obtain a Waiver and Release of Lien form from the
  471  contractor and from anyone who serves you with a Notice to
  472  Owner. Make sure that each release waives lien rights against
  473  your project for work or materials furnished through the date of
  474  the work or materials that your payment covers. This date is
  475  probably not the date you are making the payment, but a date
  476  before the payment date through which labor and materials have
  477  been billed.
  478  
  479         UNDER FLORIDA LAW, YOU HAVE THE RIGHT TO WITHHOLD PAYMENTS
  480  DUE TO THE CONTRACTOR UNTIL YOU HAVE BEEN PROVIDED WITH A
  481  WRITTEN WAIVER AND RELEASE OF LIEN UPON PROGRESS PAYMENT FORM OR
  482  A WRITTEN WAIVER AND RELEASE OF LIEN UPON FINAL PAYMENT FORM
  483  SHOWING THAT THE LIENOR’S CLAIM FOR PAYMENT HAS BEEN PAID.
  484  
  485         There are two statutory Waiver and Release of Lien forms.
  486  The signed Waiver and Release of Lien Upon Progress Payment
  487  should be submitted by a contractor, subcontractor, or material
  488  supplier each time you make a payment to your contractor. The
  489  signed Waiver and Release of Lien Upon Final Payment should be
  490  submitted by your contractor, a subcontractor, or material
  491  supplier when they are finished furnishing all work or materials
  492  for your project and have received final payment. For example,
  493  when the plumber finishes all plumbing on your project and
  494  receives final payment from the contractor, you should obtain a
  495  Waiver and Release of Lien Upon Final Payment. Once you receive
  496  a final waiver from a contractor, subcontractor, or material
  497  supplier, you should not need another waiver unless they are
  498  hired to do additional work. A copy of both statutory Waiver and
  499  Release of Lien forms, s. 713.20, F.S., are attached to this
  500  document.
  501  
  502         STEP 4 — OBTAIN A CONTRACTOR’S FINAL PAYMENT AFFIDAVIT
  503  BEFORE YOU MAKE FINAL PAYMENT TO YOUR CONTRACTOR.—In addition to
  504  obtaining Final Waiver and Release of Lien forms from the
  505  contractor and anyone who has served you with a Notice to Owner,
  506  you should obtain a Contractor’s Final Payment Affidavit before
  507  you make final payment to your contractor. This sworn affidavit
  508  should reflect that everyone who supplied labor and materials on
  509  your project has been paid in full or should list those
  510  subcontractors and suppliers who are still owed money. Make sure
  511  that anyone listed as not being paid in full is paid before
  512  making final payment to your contractor. You have a right to
  513  rely on the information contained in the sworn affidavit when
  514  you make final payment to your contractor with respect to any
  515  lienor who has not served a Notice to Owner. A copy of the
  516  statutory Contractor’s Final Payment Affidavit form, s. 713.06,
  517  F.S., is attached to this document.
  518  
  519         IF YOU FOLLOW THESE FOUR SIMPLE STEPS, FLORIDA LAW WILL
  520  PROTECT YOU AND YOU SHOULD NEVER HAVE TO PAY TWICE FOR THE SAME
  521  LABOR OR MATERIALS.
  522  
  523             ADDITIONAL INFORMATION FOR YOUR PROTECTION            
  524  
  525         1.Always hire a Florida-licensed contractor. You can
  526  verify the license status of your contractor by accessing the
  527  website of the Department of Business and Professional
  528  Regulation at www.myflorida.com/dbpr and performing a licensee
  529  search. You can check under an individual name or, if your
  530  contractor is a company, under the business name and then check
  531  to see who the qualifying licensee is for that company.
  532  
  533         2.Make sure that your contractor has the proper workers’
  534  compensation coverage, or an allowed workers’ compensation
  535  exemption, and carries sufficient builder’s risk or commercial
  536  liability insurance. The contractor should be able to provide
  537  you with current, valid certificates of insurance from his or
  538  her insurance agent.
  539  
  540         3.Use caution before accepting an obviously low bid. If it
  541  seems too good to be true, it probably is, and your construction
  542  project may be in trouble before you even begin.
  543  
  544         4.Some contractors require a reasonable deposit to cover
  545  the cost of plans and permitting. This is an acceptable
  546  practice. However, you should use caution before paying
  547  substantial sums to a contractor in advance of the work being
  548  performed.
  549  
  550         5.At any time during the construction process if you need
  551  contract or payment information from anyone providing labor,
  552  services, or materials to your project, you have the right to
  553  make a written request to them for a Sworn Statement of Account
  554  to ascertain the nature of the work performed or to be
  555  performed, the materials furnished or to be furnished, the
  556  amounts paid or to be paid, or the amounts due or to become due
  557  to them. The form for this written Request for Sworn Statement
  558  of Account is attached to this statement. If you received a
  559  Notice to Owner from the person to whom you wish to send such a
  560  request, make sure you address the request to the person,
  561  company, and address listed in the Notice to Owner. The request
  562  must be served by you in accordance with lien law provisions
  563  (usually by hand delivery, certified mail, or overnight
  564  delivery) and you should make sure to request and keep the proof
  565  of delivery.
  566  
  567         6.If you receive documents or information that you do not
  568  understand, consult an experienced construction law attorney.
  569  
  570         7.Florida has a Homeowners’ Construction Recovery Fund
  571  that is funded through a portion of the building permit fees.
  572  This fund helps consumers who have been harmed by a licensed
  573  contractor. In order to be eligible to recover from this fund,
  574  you must have complied with the proper payment procedures as
  575  described in this document. For more information, contact the
  576  Construction Industry Licensing Board at
  577  www.myflorida.com/dbpr/pro/cilb.
  578  
  579         8.You have the right to require that a contractor furnish
  580  a payment bond so that the owner is exempt from the Construction
  581  Lien Law. If there is a payment bond, a lienor must file a claim
  582  on the payment bond for payment rather than file a lien on the
  583  property. However, if you require a payment bond, understand
  584  that the payment bond will likely increase the cost of your
  585  construction.
  586  
  587                 OWNER’S ACKNOWLEDGMENT AND RECEIPT                
  588  
  589         The undersigned owner(s) of Florida real property hereby
  590  acknowledge that they are preparing to enter into a contract
  591  with _____________________________________________for the
  592  construction of real property improvements to the following
  593  described property (insert address or legal description):
  594         _________________________________________
  595          
  596         _________________________________________
  597          
  598         ...(Signature of Property Owner)......(Date)...
  599          
  600         ...(Signature of Property Owner)......(Date)...
  601          
  602         Attached Statutory Forms:
  603         Notice of Commencement
  604         Waiver and Release of Lien Upon Progress Payment
  605         Waiver and Release of Lien Upon Final Payment
  606         Request for Sworn Statement of Account
  607         Contractor’s Final Payment Affidavit
  608         (2)(a)If the contract is written, the notice must be in
  609  the contract document. If the contract is oral or implied, the
  610  notice must be provided in a document referencing the contract.
  611         (3)(b) The failure to provide such written notice does not
  612  bar the enforcement of a lien against a person who has not been
  613  adversely affected.
  614         (4)(c) This section may not be construed to adversely
  615  affect the lien and bond rights of lienors who are not in
  616  privity with the owner. This section does not apply when the
  617  owner is a contractor licensed under chapter 489 or is a person
  618  who created parcels or offers parcels for sale or lease in the
  619  ordinary course of business.
  620         Section 7. Paragraph (c) of subsection (2) of section
  621  713.06, Florida Statutes, is amended to read:
  622         713.06 Liens of persons not in privity; proper payments.—
  623         (2)
  624         (c) The notice may be in substantially the following form
  625  and must include the information and the warning contained in
  626  the following form:
  627  
  628         WARNING! FLORIDA’S CONSTRUCTION LIEN LAW ALLOWS SOME
  629         UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL
  630         SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF
  631         YOU HAVE MADE PAYMENT IN FULL.
  632  UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID
  633  MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOUR PAYING
  634  TWICE.
  635         TO PROTECT YOURSELF, EACH TIME YOU MAKE A PAYMENT TO THE
  636  CONTRACTOR ASK YOUR CONTRACTOR TO PROVIDE YOU WITH A WRITTEN
  637  WAIVER AND RELEASE OF LIEN FROM US. FOR ADDITIONAL INFORMATION,
  638  REFER TO THE GENERAL STATEMENT OF OWNER’S RIGHTS AND
  639  RESPONSIBILITIES WHICH WAS PROVIDED TO YOU BY OUR CONTRACTOR AT
  640  THE BEGINNING OF YOUR CONSTRUCTION PROJECT. AVOID A LIEN AND
  641  PAYING TWICE, YOU MUST OBTAIN A WRITTEN RELEASE FROM US EVERY
  642  TIME YOU PAY YOUR CONTRACTOR.
  643                           NOTICE TO OWNER                         
  644  
  645  To ...(Owner’s name and address)...
  646  
  647  The undersigned hereby informs you that he or she has furnished
  648  or is furnishing services or materials as follows:
  649  ...(General description of services or materials)... for the
  650  improvement of the real property identified as ...(property
  651  description)... under an order given by.............
  652  Florida law prescribes the serving of this notice and restricts
  653  your right to make payments under your contract in accordance
  654  with Section 713.06, Florida Statutes.
  655                      IMPORTANT INFORMATION FOR                    
  656                           YOUR PROTECTION                         
  657  
  658         Under Florida’s laws, those who work on your property or
  659  provide materials and are not paid have a right to enforce their
  660  claim for payment against your property. This claim is known as
  661  a construction lien.
  662         If your contractor fails to pay subcontractors or material
  663  suppliers or neglects to make other legally required payments,
  664  the people who are owed money may look to your property for
  665  payment, EVEN IF YOU HAVE PAID YOUR CONTRACTOR IN FULL.
  666  PROTECT YOURSELF:
  667         —RECOGNIZE that this Notice to Owner may result in a lien
  668  against your property unless all those supplying a Notice to
  669  Owner have been paid.
  670         —LEARN more about the Construction Lien Law, Chapter 713,
  671  Part I, Florida Statutes, and the meaning of this notice by
  672  contacting an attorney or the Florida Department of Business and
  673  Professional Regulation.
  674  ...(Lienor’s Signature)...
  675  ...(Lienor’s Name)...
  676  ...(Lienor’s Address)...
  677  
  678  Copies to: ...(Those persons listed in Section 713.06(2)(a) and
  679  (b), Florida Statutes)...
  680  The form may be combined with a notice to contractor given under
  681  s. 255.05 or s. 713.23 and, if so, may be entitled “NOTICE TO
  682  OWNER/NOTICE TO CONTRACTOR.”
  683         Section 8. Section 713.09, Florida Statutes, is amended to
  684  read:
  685         713.09 Single claim of lien.—A lienor may is required to
  686  record only one claim of lien covering his or her entire demand
  687  against the real property when the amount demanded is for labor
  688  or services or material furnished for more than one improvement
  689  under the same direct contract. The single claim of lien is
  690  sufficient even though the improvement is for one or more
  691  improvements located on separate lots, parcels, units, or tracts
  692  of land. If materials to be used on one or more improvements on
  693  separate lots, parcels, units, or tracts of land under one
  694  direct contract are delivered by a lienor to a place designated
  695  by the person with whom the materialman contracted, other than
  696  the site of the improvement, the delivery to the place
  697  designated is prima facie evidence of delivery to the site of
  698  the improvement and incorporation in the improvement. The single
  699  claim of lien may be limited to a part of multiple lots,
  700  parcels, or tracts of land and their improvements or may cover
  701  all of the lots, parcels, units, or tracts of land and
  702  improvements. In each claim of lien under this section, the
  703  owner under the direct contract must be the same person for all
  704  lots, parcels, or tracts of land against which a single claim of
  705  lien is recorded.
  706         Section 9. Section 713.13, Florida Statutes, is amended to
  707  read:
  708         713.13 Notice of commencement.—
  709         (1)(a) Except for an improvement that is exempt pursuant to
  710  s. 713.02(5), an owner or the owner’s authorized agent before
  711  actually commencing to improve any real property, or
  712  recommencing completion of any improvement after default or
  713  abandonment, whether or not a project has a payment bond
  714  complying with s. 713.23, shall record a notice of commencement
  715  in the clerk’s office and forthwith post either a certified copy
  716  thereof or a notarized statement that the notice of commencement
  717  has been filed for recording along with a copy thereof. The
  718  notice of commencement shall contain the following information:
  719         1. A description sufficient for identification of the real
  720  property to be improved. The description should include the
  721  legal description of the property and also should include the
  722  street address and tax folio number of the property if available
  723  or, if there is no street address available, such additional
  724  information as will describe the physical location of the real
  725  property to be improved.
  726         2. A general description of the improvement.
  727         3. The name and address of the owner, the owner’s interest
  728  in the site of the improvement, and the name and address of the
  729  fee simple titleholder, if other than such owner.
  730         4. The name and address of the contractor.
  731         5. The name and address of the surety on the payment bond
  732  under s. 713.23, if any, and the amount of such bond.
  733         6. The name and address of any person making a loan for the
  734  construction of the improvements.
  735         7. The name and address within the state of a person other
  736  than himself or herself who may be designated by the owner as
  737  the person upon whom notices or other documents may be served
  738  under this part; and service upon the person so designated
  739  constitutes service upon the owner.
  740         (b) The owner, at his or her option, may designate a person
  741  in addition to himself or herself to receive a copy of the
  742  lienor’s notice as provided in s. 713.06(2)(b), and if he or she
  743  does so, the name and address of such person must be included in
  744  the notice of commencement.
  745         (c) A notice of commencement expires:
  746         1.Ninety days after the day of the final furnishing of all
  747  labor, services, and materials required by the direct contract,
  748  including any change orders; or
  749         2.On the effective date of a notice of termination that
  750  has been served and recorded. If the contract between the owner
  751  and a contractor named in the notice of commencement expresses a
  752  period of time for completion for the construction of the
  753  improvement greater than 1 year, the notice of commencement must
  754  state that it is effective for a period of 1 year plus any
  755  additional period of time. Any payments made by the owner after
  756  the expiration of the notice of commencement are considered
  757  improper payments.
  758         (d) A notice of commencement must be in substantially the
  759  following form:
  760  Permit No.....                                 Tax Folio No.....
  761                       NOTICE OF COMMENCEMENT                      
  762  State of....
  763  County of....
  764  The undersigned hereby gives notice that improvement will be
  765  made to certain real property, and in accordance with Chapter
  766  713, Florida Statutes, the following information is provided in
  767  this Notice of Commencement.
  768         1. Description of property: ...(legal description of the
  769  property, and street address if available)....
  770         2. General description of improvement:.....
  771         3. Owner information:.....
  772         a. Name and address:.....
  773         b. Interest in property:.....
  774         c. Name and address of fee simple titleholder (if other
  775  than Owner):.....
  776         4.a. Contractor: ...(name and address)....
  777         b. Contractor’s phone number:.....
  778         5. Surety (a copy of the payment bond is attached, if the
  779  project is bonded)
  780         a. Name and address:.....
  781         b. Phone number:.....
  782         c. Amount of bond: $.....
  783         6.a. Lender: ...(name and address)....
  784         b. Lender’s phone number:.....
  785         7.a. Persons within the State of Florida designated by
  786  Owner upon whom notices or other documents may be served as
  787  provided by Section 713.13(1)(a)7., Florida Statutes: ...(name
  788  and address)....
  789         b. Phone numbers of designated persons:.....
  790         8.a. In addition to himself or herself, Owner designates
  791  ............ of ............ to receive a copy of the Lienor’s
  792  Notice as provided in Section 713.13(1)(b), Florida Statutes.
  793         b. Phone number of person or entity designated by
  794  owner:.....
  795         9. This notice of commencement expires 90 days after the
  796  day of the final furnishing of all labor, services, and
  797  materials required by the direct contract, including any change
  798  orders, or on the effective date of a notice of termination.
  799  Expiration date of notice of commencement (the expiration date
  800  is 1 year from the date of recording unless a different date is
  801  specified).....
  802  
  803  WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE
  804  EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER
  805  PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA
  806  STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS
  807  TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND
  808  POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU
  809  INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN
  810  ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF
  811  COMMENCEMENT.
  812  
  813         Under penalty of perjury, I declare that I have read the
  814  foregoing notice of commencement and that the facts stated
  815  therein are true to the best of my knowledge and belief.
  816  
  817  ...(Signature of Owner or Owner’s Authorized
  818  Officer/Director/Partner/Manager)...
  819  ...(Signatory’s Title/Office)...
  820  The foregoing instrument was acknowledged before me this ....
  821  day of ...., ...(year)..., by ...(name of person)... as ...(type
  822  of authority,...e.g. officer, trustee, attorney in fact)... for
  823  ...(name of party on behalf of whom instrument was executed)....
  824  ...(Signature of Notary Public - State of Florida)...
  825  ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
  826         Personally Known .... OR Produced Identification ....
  827         Type of Identification Produced............
  828  Verification pursuant to Section 92.525, Florida Statutes.
  829  Under penalties of perjury, I declare that I have read the
  830  foregoing and that the facts stated in it are true to the best
  831  of my knowledge and belief.
  832  ...(Signature of Natural Person Signing Above)...
  833         (e) A copy of any payment bond must be attached at the time
  834  of recordation of the notice of commencement. The failure to
  835  attach a copy of the bond to the notice of commencement when the
  836  notice is recorded negates the exemption provided in s.
  837  713.02(6). However, if a payment bond under s. 713.23 exists but
  838  was not attached at the time of recordation of the notice of
  839  commencement, the bond may be used to transfer any recorded lien
  840  of a lienor except that of the contractor by the recordation and
  841  service of a notice of bond pursuant to s. 713.23(2). The notice
  842  requirements of s. 713.23 apply to any claim against the bond;
  843  however, the time limits for serving any required notices shall
  844  begin running from the later of the time specified in s. 713.23
  845  or the date the notice of bond is served on the lienor.
  846         (f) The giving of a notice of commencement is effective
  847  upon the filing of the notice in the clerk’s office.
  848         (g) The owner must sign the notice of commencement and no
  849  one else may be permitted to sign in his or her stead.
  850         (2)If the improvement described in the notice of
  851  commencement is not actually commenced within 90 days after the
  852  recording thereof, such notice is void and of no further effect.
  853         (2)(3) The recording of a notice of commencement does not
  854  constitute a lien, cloud, or encumbrance on real property, but
  855  gives constructive notice that claims of lien under this part
  856  may be recorded and may take priority as provided in s. 713.07.
  857  The posting of a copy does not constitute a lien, cloud, or
  858  encumbrance on real property, nor actual or constructive notice
  859  of any of them.
  860         (3)(4) This section does not apply to an owner who is
  861  constructing improvements described in s. 713.04.
  862         (4)(5)(a) A notice of commencement that is recorded within
  863  the effective period may be amended to extend the effective
  864  period, change erroneous information in the original notice, or
  865  add information that was omitted from the original notice.
  866  However, in order to change contractors, a new notice of
  867  commencement or notice of recommencement must be executed and
  868  recorded.
  869         (b) The amended notice must identify the official records
  870  book and page where the original notice of commencement is
  871  recorded, and a copy of the amended notice must be served by the
  872  owner upon the contractor and each lienor who serves notice
  873  before or within 30 days after the date the amended notice is
  874  recorded.
  875         (5)(6)Unless otherwise provided in the notice of
  876  commencement or a new or amended notice of commencement, A
  877  notice of commencement is not effectual in law or equity against
  878  a conveyance, transfer, or mortgage of or lien on the real
  879  property described in the notice, or against creditors or
  880  subsequent purchasers for a valuable consideration, after the
  881  expiration of 1 year after the date of recording the notice of
  882  commencement.
  883         (6)(7) A lender must, prior to the disbursement of any
  884  construction funds to the contractor, record the notice of
  885  commencement in the clerk’s office as required by this section;
  886  however, the lender is not required to post a certified copy of
  887  the notice at the construction site. The posting of the notice
  888  at the construction site remains the owner’s obligation. The
  889  failure of a lender to record the notice of commencement as
  890  required by this subsection renders the lender liable to the
  891  owner for all damages sustained by the owner as a result of the
  892  failure. Whenever a lender is required to record a notice of
  893  commencement, the lender shall designate the lender, in addition
  894  to others, to receive copies of notices to owner. This
  895  subsection does not give any person other than the owner a claim
  896  or right of action against a lender for failure to record a
  897  notice of commencement.
  898         Section 10. Section 713.135, Florida Statutes, is amended
  899  to read:
  900         713.135 Notice of commencement and applicability of lien.—
  901         (1) When any person applies for a building permit, the
  902  authority issuing such permit shall:
  903         (a)Require the applicant to submit the signed and dated
  904  general statement of an owner’s rights and responsibilities
  905  under Florida’s Construction Lien Law provided in s. 713.015 for
  906  any single-family or multifamily dwelling up to and including
  907  four units. A building permit application may not be processed
  908  unless the signed document is in the file.
  909         (b)(a) Print on the face of each permit card in no less
  910  than 14-point, capitalized, boldfaced type: “WARNING TO OWNER:
  911  IF YOU FAIL YOUR FAILURE TO RECORD A NOTICE OF COMMENCEMENT, YOU
  912  MAY PAY RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS TO YOUR
  913  PROPERTY. A NOTICE OF COMMENCEMENT, AND THE CONTRACTOR’S PAYMENT
  914  BOND IF THE PROJECT IS BONDED, MUST BE RECORDED AND POSTED ON
  915  THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU INTEND TO
  916  OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN ATTORNEY BEFORE
  917  RECORDING YOUR NOTICE OF COMMENCEMENT.”
  918         (c)(b)Make available to Provide the applicant and the
  919  owner of the real property upon which improvements are to be
  920  constructed copies of the general statement of an owner’s rights
  921  and responsibilities under Florida’s with a printed statement
  922  stating that the right, title, and interest of the person who
  923  has contracted for the improvement may be subject to attachment
  924  under the Construction Lien Law as described in s. 713.015 with
  925  the attached statutory forms. The issuing authority may make the
  926  general statement and forms available in printed form, on the
  927  Internet, or both. The Department of Business and Professional
  928  Regulation shall furnish, for distribution, the statement
  929  described in this paragraph, and the statement must be a summary
  930  of the Construction Lien Law and must include an explanation of
  931  the provisions of the Construction Lien Law relating to the
  932  recording, and the posting of copies, of notices of commencement
  933  and a statement encouraging the owner to record a notice of
  934  commencement and post a copy of the notice of commencement in
  935  accordance with s. 713.13. The statement must also contain an
  936  explanation of the owner’s rights if a lienor fails to furnish
  937  the owner with a notice as provided in s. 713.06(2) and an
  938  explanation of the owner’s rights as provided in s. 713.22. The
  939  authority that issues the building permit must obtain from the
  940  Department of Business and Professional Regulation the statement
  941  required by this paragraph and must mail, deliver by electronic
  942  mail or other electronic format or facsimile, or personally
  943  deliver that statement to the owner or, in a case in which the
  944  owner is required to personally appear to obtain the permit,
  945  provide that statement to any owner making improvements to real
  946  property consisting of a single or multiple family dwelling up
  947  to and including four units. However, the failure by the
  948  authorities to provide the summary does not subject the issuing
  949  authority to liability.
  950         (c)In addition to providing the owner with the statement
  951  as required by paragraph (b), inform each applicant who is not
  952  the person whose right, title, and interest is subject to
  953  attachment that, as a condition to the issuance of a building
  954  permit, the applicant must promise in good faith that the
  955  statement will be delivered to the person whose property is
  956  subject to attachment.
  957         (d)Furnish to the applicant two or more copies of a form
  958  of notice of commencement conforming with s. 713.13. If the
  959  direct contract is greater than $2,500, the applicant shall file
  960  with the issuing authority prior to the first inspection either
  961  a certified copy of the recorded notice of commencement or a
  962  notarized statement that the notice of commencement has been
  963  filed for recording, along with a copy thereof. In the absence
  964  of the filing of a certified copy of the recorded notice of
  965  commencement, the issuing authority or a private provider
  966  performing inspection services may not perform or approve
  967  subsequent inspections until the applicant files by mail,
  968  facsimile, hand delivery, or any other means such certified copy
  969  with the issuing authority. The certified copy of the notice of
  970  commencement must contain the name and address of the owner, the
  971  name and address of the contractor, and the location or address
  972  of the property being improved. The issuing authority shall
  973         (d) Verify that the name and address of the owner, the name
  974  of the contractor, and the location or address of the property
  975  being improved which is contained in the certified copy of the
  976  notice of commencement is consistent with the information in the
  977  building permit application.
  978         (e)Provide the recording information from the official
  979  public records in which the notice of commencement and payment
  980  bond, if any, are recorded to any person upon request. The
  981  issuing authority shall provide the recording information on the
  982  certified copy of the recorded notice of commencement to any
  983  person upon request. This subsection does not require the
  984  recording of a notice of commencement prior to the issuance of a
  985  building permit. If a local government requires a separate
  986  permit or inspection for installation of temporary electrical
  987  service or other temporary utility service, land clearing, or
  988  other preliminary site work, such permits may be issued and such
  989  inspections may be conducted without providing the issuing
  990  authority with a certified copy of a recorded notice of
  991  commencement or a notarized statement regarding a recorded
  992  notice of commencement. This subsection does not apply to a
  993  direct contract to repair or replace an existing heating or air
  994  conditioning system in an amount less than $7,500.
  995         (f)(e) Not require that a notice of commencement be
  996  recorded as a condition of the application for, or processing or
  997  issuance of, a building permit. However, this paragraph does not
  998  modify or waive the inspection requirements set forth in this
  999  subsection.
 1000         (2) An issuing authority under subsection (1) is not liable
 1001  in any civil action for the failure of the person whose property
 1002  is subject to attachment to receive or to be delivered the
 1003  general statement of an owner’s rights and responsibilities
 1004  under Florida’s a printed statement stating that the right,
 1005  title, and interest of the person who has contracted for the
 1006  improvement may be subject to attachment under the Construction
 1007  Lien Law as provided in s. 713.015.
 1008         (3) An issuing authority under subsection (1) is not liable
 1009  in any civil action for the failure to verify that a certified
 1010  copy of the recorded notice of commencement has been filed in
 1011  accordance with this section.
 1012         (4) The several boards of county commissioners, municipal
 1013  councils, or other similar bodies may by ordinance or resolution
 1014  establish reasonable fees for furnishing, upon request, copies
 1015  of the forms and the printed statement provided in paragraph
 1016  (1)(a) paragraphs (1)(b) and (d) in an amount not to exceed $5
 1017  to be paid by the applicant for each permit in addition to all
 1018  other costs of the permit; however, no forms or statement need
 1019  be furnished, mailed, or otherwise provided to, nor may such
 1020  additional fee be obtained from, applicants for permits in those
 1021  cases in which the owner of a legal or equitable interest
 1022  (including that of ownership of stock of a corporate landowner)
 1023  of the real property to be improved is engaged in the business
 1024  of construction of buildings for sale to others and intends to
 1025  make the improvements authorized by the permit on the property
 1026  and upon completion will offer the improved real property for
 1027  sale.
 1028         (5) In addition to any other information required by the
 1029  authority issuing the permit, each building permit application
 1030  must contain:
 1031         (a) The name and address of the owner of the real property;
 1032         (b) The name and address of the contractor;
 1033         (c) A description sufficient to identify the real property
 1034  to be improved; and
 1035         (d) The number or identifying symbol assigned to the
 1036  building permit by the issuing authority, which number or symbol
 1037  must be affixed to the application by the issuing authority.
 1038         (6)(a) In addition to any other information required by the
 1039  authority issuing the permit, the building permit application
 1040  must be in substantially the following form:
 1041  
 1042         Tax Folio No.__________
 1043                     BUILDING PERMIT APPLICATION                   
 1044  
 1045         Owner’s Name
 1046         Owner’s Address
 1047         Fee Simple Titleholder’s Name (If other than owner)
 1048         Fee Simple Titleholder’s Address (If other than owner)
 1049         City
 1050         State_______________ Zip_______________
 1051         Contractor’s Name
 1052         Contractor’s Address
 1053         City
 1054         State_______________ Zip_______________
 1055         Job Name
 1056         Job Address
 1057         City____________________ County_______________
 1058         Legal Description
 1059         Bonding Company
 1060         Bonding Company Address
 1061         City____________________ State_______________
 1062         Architect/Engineer’s Name
 1063         Architect/Engineer’s Address
 1064         Mortgage Lender’s Name
 1065         Mortgage Lender’s Address
 1066  
 1067         Application is hereby made to obtain a permit to do the
 1068  work and installations as indicated. I certify that no work or
 1069  installation has commenced prior to the issuance of a permit and
 1070  that all work will be performed to meet the standards of all
 1071  laws regulating construction in this jurisdiction. I understand
 1072  that a separate permit must be secured for ELECTRICAL WORK,
 1073  PLUMBING, SIGNS, WELLS, POOLS, FURNACES, BOILERS, HEATERS,
 1074  TANKS, and AIR CONDITIONERS, etc.
 1075  
 1076         OWNER’S AFFIDAVIT: I certify that all the foregoing
 1077  information is accurate and that all work will be done in
 1078  compliance with all applicable laws regulating construction and
 1079  zoning.
 1080  
 1081         WARNING TO OWNER: IF YOU FAIL YOUR FAILURE TO RECORD A
 1082  NOTICE OF COMMENCEMENT, YOU MAY PAY RESULT IN YOUR PAYING TWICE
 1083  FOR IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT, AND
 1084  THE CONTRACTOR’S PAYMENT BOND IF THE PROJECT IS BONDED, MUST BE
 1085  RECORDED AND POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION.
 1086  
 1087         IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER
 1088  OR AN ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE
 1089  OF COMMENCEMENT.
 1090  
 1091         (Signature of Owner or Agent)
 1092  
 1093         (including contractor)
 1094         STATE OF FLORIDA
 1095         COUNTY OF _____
 1096  
 1097         Sworn to (or affirmed) and subscribed before me this _____
 1098  day of _____, (year), by (name of person making statement).
 1099  
 1100         (Signature of Notary Public - State of Florida)
 1101         (Print, Type, or Stamp Commissioned Name of Notary Public)
 1102  
 1103         Personally Known _____ OR Produced Identification _____
 1104  
 1105         Type of Identification Produced_______________
 1106         (Signature of Contractor)
 1107  
 1108         STATE OF FLORIDA
 1109         COUNTY OF _____
 1110  
 1111         Sworn to (or affirmed) and subscribed before me this _____
 1112  day of _____, (year), by (name of person making statement).
 1113         (Signature of Notary Public - State of Florida)
 1114         (Print, Type, or Stamp Commissioned Name of Notary Public)
 1115  
 1116         Personally Known _____ OR Produced Identification _____
 1117  
 1118         Type of Identification Produced_______________
 1119  
 1120                 (Certificate of Competency Holder)                
 1121  
 1122         Contractor’s State Certification or Registration No._____
 1123  
 1124         Contractor’s Certificate of Competency No.__________
 1125  
 1126         APPLICATION APPROVED BY
 1127         ____________________Permit Officer
 1128         (b) Consistent with the requirements of paragraph (a), an
 1129  authority responsible for issuing building permits under this
 1130  section may accept a building permit application in an
 1131  electronic format, as prescribed by the authority. Building
 1132  permit applications submitted to the authority electronically
 1133  must contain the following additional statement in lieu of the
 1134  requirement in paragraph (a) that a signed, sworn, and notarized
 1135  signature of the owner or agent and the contractor be part of
 1136  the owner’s affidavit:
 1137  
 1138         OWNER’S ELECTRONIC SUBMISSION STATEMENT: Under penalty of
 1139  perjury, I declare that all the information contained in this
 1140  building permit application is true and correct.
 1141         (c) An authority responsible for issuing building permit
 1142  applications which accepts building permit applications in an
 1143  electronic format shall provide public Internet access to the
 1144  electronic building permit applications in a searchable format.
 1145         (7) This section applies to every municipality and county
 1146  in the state which now has or hereafter may have a system of
 1147  issuing building permits for the construction of improvements or
 1148  for the alteration or repair of improvements on or to real
 1149  property located within the geographic limits of the issuing
 1150  authority.
 1151         Section 11. Section 713.137, Florida Statutes, is created
 1152  to read:
 1153         713.137Prerequisites to inspection of improvements;
 1154  exceptions.—
 1155         (1)The authority issuing a building permit or a private
 1156  provider providing inspection services may not inspect the real
 1157  property being improved unless:
 1158         (a)The following documents have been filed with the
 1159  issuing authority:
 1160         1.a.A certified copy of the recorded notice of
 1161  commencement; or
 1162         b.A notarized statement that the notice of commencement
 1163  has been filed for recording, along with a copy of the notice.
 1164         2.a.A copy of the contractor’s recorded payment bond; or
 1165         b.A notarized statement of the contractor or owner stating
 1166  that a payment bond was not required.
 1167         3.A signed copy of the general statement of owner’s rights
 1168  and responsibilities under Florida’s Construction Lien Law, if
 1169  required by s. 713.015.
 1170         (b)The information in the notice of commencement filed
 1171  with the issuing authority is consistent with the building
 1172  permit application, complete, and legible.
 1173         (2)This section does not apply to inspections of the
 1174  following improvements:
 1175         (a)The installation of temporary electrical service or
 1176  other temporary utility service, land clearing, or other
 1177  preliminary site work.
 1178         (b)Improvements pursuant to a direct contract in an amount
 1179  of $5,000 or less.
 1180         (c)The repair or replacement of a heating or air
 1181  conditioning system pursuant to a direct contract in an amount
 1182  of $7,500 or less.
 1183         (d)The installation of a solar hot water system pursuant
 1184  to a direct contract of $7,500 or less.
 1185         Section 12. Section 713.16, Florida Statutes, is amended to
 1186  read:
 1187         713.16  Demand for copy of contract and statements of
 1188  account; form.
 1189         (1) A copy of the contract of a lienor or owner and a
 1190  statement of the amount due or to become due if fixed or
 1191  ascertainable thereon must be furnished by any party thereto,
 1192  upon written demand of an owner or a lienor contracting with or
 1193  employed by the other party to such contract. If the owner or
 1194  lienor refuses or neglects to furnish such copy of the contract
 1195  or such statement, or willfully and falsely states the amount
 1196  due or to become due if fixed or ascertainable under such
 1197  contract, any person who suffers any detriment thereby has a
 1198  cause of action against the person refusing or neglecting to
 1199  furnish the same or willfully and falsely stating the amount due
 1200  or to become due for his or her damages sustained thereby. The
 1201  information contained in such copy or statement furnished
 1202  pursuant to such written demand is binding upon the owner or
 1203  lienor furnishing it unless actual notice of any modification is
 1204  given to the person demanding the copy or statement before such
 1205  person acts in good faith in reliance on it. The person
 1206  demanding such documents must pay for the reproduction thereof;
 1207  and, if such person fails or refuses to do so, he or she is
 1208  entitled only to inspect such documents at reasonable times and
 1209  places.
 1210         (2) The owner may serve in writing a demand of any lienor
 1211  for a written statement under oath of his or her account showing
 1212  the nature of the labor or services performed and to be
 1213  performed, if any, the materials furnished, the materials to be
 1214  furnished, if known, the amount paid on account to date, the
 1215  amount due, and the amount to become due, if known, as of the
 1216  date of the statement by the lienor. Any such demand to a lienor
 1217  must be served on the lienor at the address and to the attention
 1218  of any person who is designated to receive the demand in the
 1219  notice to owner served by such lienor and must include a
 1220  description of the project, including the names of the owner,
 1221  the contractor, and the lienor’s customer, sufficient for the
 1222  lienor to properly identify the account in question. The failure
 1223  or refusal to furnish the statement does not deprive the lienor
 1224  of his or her lien if the demand is not served at the address of
 1225  the lienor or directed to the attention of the person designated
 1226  to receive the demand in the notice to owner. The failure or
 1227  refusal to furnish the statement under oath within 30 days after
 1228  the demand, or the furnishing of a false or fraudulent
 1229  statement, deprives the person so failing or refusing to furnish
 1230  such statement of his or her lien. If the owner serves more than
 1231  one demand for statement of account on a lienor and none of the
 1232  information regarding the account has changed since the lienor’s
 1233  last response to a demand, the failure or refusal to furnish
 1234  such statement does not deprive the lienor of his or her lien.
 1235  The negligent inclusion or omission of any information deprives
 1236  the person of his or her lien to the extent the owner can
 1237  demonstrate prejudice from such act or omission by the lienor.
 1238  The failure to furnish a response to a demand for statement of
 1239  account does not affect the validity of any claim of lien being
 1240  enforced through a foreclosure case filed prior to the date the
 1241  demand for statement is received by the lienor.
 1242         (3) A request for sworn statement of account must be in
 1243  substantially the following form:
 1244  
 1245               REQUEST FOR SWORN STATEMENT OF ACCOUNT              
 1246  
 1247         WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT,
 1248  SIGNED UNDER OATH, WITHIN 30 DAYS OR THE FURNISHING OF A FALSE
 1249  STATEMENT WILL RESULT IN THE LOSS OF YOUR LIEN.
 1250  
 1251         To: (Lienor’s name and address)
 1252  
 1253         The undersigned hereby demands a written statement under
 1254  oath of his or her account showing the nature of the labor or
 1255  services performed and to be performed, if any, the materials
 1256  furnished, the materials to be furnished, if known, the amount
 1257  paid on account to date, the amount due, and the amount to
 1258  become due, if known, as of the date of the statement for the
 1259  improvement of real property identified as (property
 1260  description).
 1261         Name of contractor:
 1262         Name of the lienor’s customer (as specified in the lienor’s
 1263  Notice to Owner, if such notice has been served):
 1264         (signature and address of owner)
 1265         (date of request for sworn statement of account)
 1266         (4) When a contractor has furnished a payment bond pursuant
 1267  to s. 713.23, he or she may, when an owner makes any payment to
 1268  the contractor or directly to a lienor, serve a written demand
 1269  on any other lienor for a written statement under oath of his or
 1270  her account showing the nature of the labor or services
 1271  performed and to be performed, if any, the materials furnished,
 1272  the materials to be furnished, if known, the amount paid on
 1273  account to date, the amount due, and the amount to become due,
 1274  if known, as of the date of the statement by the lienor. Any
 1275  such demand to a lienor must be served on the lienor at the
 1276  address and to the attention of any person who is designated to
 1277  receive the demand in the notice to contractor served by such
 1278  lienor. The failure or refusal to furnish the statement does not
 1279  deprive the lienor of his or her rights under the bond if the
 1280  demand is not served at the address of the lienor or directed to
 1281  the attention of the person designated to receive the demand in
 1282  the notice to contractor and does not include a description of
 1283  the project, including the names of the owner, the contractor,
 1284  and the lienor’s customer as set forth in the lienor’s notice to
 1285  contractor, sufficient for the lienor to properly identify the
 1286  account in question. The failure to furnish the statement within
 1287  30 days after the demand, or the furnishing of a false or
 1288  fraudulent statement, deprives the person who fails to furnish
 1289  the statement, or who furnishes the false or fraudulent
 1290  statement, of his or her rights under the bond. If the
 1291  contractor serves more than one demand for statement of account
 1292  on a lienor and none of the information regarding the account
 1293  has changed since the lienor’s last response to a demand, the
 1294  failure or refusal to furnish such statement does not deprive
 1295  the lienor of his or her rights under the bond. The negligent
 1296  inclusion or omission of any information deprives the person of
 1297  his or her rights under the bond to the extent the contractor
 1298  can demonstrate prejudice from such act or omission by the
 1299  lienor. The failure to furnish a response to a demand for
 1300  statement of account does not affect the validity of any claim
 1301  on the bond being enforced in a lawsuit filed prior to the date
 1302  the demand for statement of account is received by the lienor.
 1303         (5)(a) Any lienor who submits or mails has recorded a claim
 1304  of lien to the clerk for recording may make written demand on
 1305  the owner for a written statement under oath showing:
 1306         1. The amount of the direct contract under which the lien
 1307  was recorded;
 1308         2. The dates and amounts paid or to be paid by or on behalf
 1309  of the owner for all improvements described in the direct
 1310  contract;
 1311         3. The reasonable estimated costs of completing the direct
 1312  contract under which the lien was claimed pursuant to the scope
 1313  of the direct contract; and
 1314         4. If known, the actual cost of completion.
 1315         (b) Any owner who does not provide the statement within 30
 1316  days after demand, or who provides a false or fraudulent
 1317  statement, is not a prevailing party for purposes of an award of
 1318  attorney’s fees under s. 713.29. The written demand must include
 1319  the following warning in conspicuous type in substantially the
 1320  following form:
 1321         WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT
 1322  WITHIN 30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL
 1323  RESULT IN THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY
 1324  ACTION TO ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING
 1325  THIS STATEMENT.
 1326         (6)Any written demand served on the owner shall include a
 1327  description of the project, including the names of the
 1328  contractor and the lienor’s customer as set forth in the
 1329  lienor’s notice to owner, sufficient for the owner to properly
 1330  identify the project in question.
 1331         (7)(6) For purposes of this section, the term “information”
 1332  means the nature and quantity of the labor, services, and
 1333  materials furnished or to be furnished by a lienor and the
 1334  amount paid, the amount due, and the amount to become due on the
 1335  lienor’s account.
 1336         Section 13. Section 713.18, Florida Statutes, is amended to
 1337  read:
 1338         713.18 Manner of serving notices and other instruments.—
 1339         (1) Service of notices, claims of lien, affidavits,
 1340  assignments, and other instruments permitted or required under
 1341  this part, or copies thereof when so permitted or required,
 1342  unless otherwise specifically provided in this part, must be
 1343  made by one of the following methods:
 1344         (a) By actual delivery to the person to be served; if a
 1345  partnership, to one of the partners; if a corporation, to an
 1346  officer, director, managing agent, or business agent; or, if a
 1347  limited liability company, to a member or manager.
 1348         (b) By sending the same by common carrier delivery service
 1349  or registered, global express guaranteed, or certified mail,
 1350  with postage prepaid, and or by overnight or second-day delivery
 1351  with evidence of delivery, which may be in an electronic format.
 1352         (c) If the method specified in paragraph (a) or paragraph
 1353  (b) cannot be accomplished, By posting on the site of the
 1354  improvement if service as provided by paragraph (a) or paragraph
 1355  (b) cannot be accomplished premises.
 1356         (2) Notwithstanding subsection (1), service of if a notice
 1357  to owner, a notice to contractor under s. 713.23, or a
 1358  preliminary notice under s. 255.05 is mailed by registered or
 1359  certified mail with postage prepaid to the person to be served
 1360  at any of the addresses set forth in subsection (3) within 40
 1361  days after the date the lienor first furnishes labor, services,
 1362  or materials, service of that notice is effective as of the date
 1363  of mailing if:
 1364         (a)The notice is mailed by registered, global express
 1365  guaranteed, or certified mail, with postage prepaid, to the
 1366  person to be served at any of the addresses set forth in
 1367  subsection (3);
 1368         (b)The notice is mailed within 40 days after the date the
 1369  lienor first furnishes labor, services, or materials; and
 1370         (c)1. The person who served the notice maintains a
 1371  registered or certified mail log that shows the registered or
 1372  certified mail number issued by the United States Postal
 1373  Service, the name and address of the person served, and the date
 1374  stamp of the United States Postal Service confirming the date of
 1375  mailing; or if
 1376         2. The person who served the notice maintains electronic
 1377  tracking records generated through use of the United States
 1378  Postal Service Confirm service or a similar service containing
 1379  the postal tracking number, the name and address of the person
 1380  served, and verification of the date of receipt by the United
 1381  States Postal Service.
 1382         (3)(a)Service of If an instrument served pursuant to this
 1383  section is effective on the date of mailing if the instrument:
 1384         1.Was sent to the last address shown in the notice of
 1385  commencement or any amendment thereto or, in the absence of a
 1386  notice of commencement, to the last address shown in the
 1387  building permit application, or to the last known address of the
 1388  person to be served; and, is not received, but
 1389         2. Is returned as being “refused,” “moved, not
 1390  forwardable,” or “unclaimed,” or is otherwise not delivered or
 1391  deliverable through no fault of the person serving the item,
 1392  then service is effective on the date the instrument was sent.
 1393         (b)If the address information shown in the notice of
 1394  commencement or any amendment to the notice, or in the absence
 1395  of a notice of commencement, in the building permit application,
 1396  is incomplete for purposes of mailing or delivery, the person
 1397  serving the item may complete the address and properly format it
 1398  according to United States Postal Service addressing standards
 1399  using information obtained from the property appraiser or
 1400  another public record or directory without affecting the
 1401  validity of service under this section.
 1402         (4) A notice served by a lienor on one owner or one partner
 1403  of a partnership owning the real property If the real property
 1404  is owned by more than one person or a partnership, a lienor may
 1405  serve any notices or other papers under this part on any one of
 1406  such owners or partners, and such notice is deemed notice to all
 1407  owners and partners.
 1408         Section 14. Section 713.22, Florida Statutes, is amended to
 1409  read:
 1410         713.22 Duration of lien.—
 1411         (1) A No lien provided by this part may not shall continue
 1412  for a longer period than 1 year after the claim of lien has been
 1413  recorded or 1 year after the recording of an amended claim of
 1414  lien that shows a later date of final furnishing of labor,
 1415  services, or materials, unless within that time an action to
 1416  enforce the lien is commenced in a court of competent
 1417  jurisdiction. A lien that has been continued beyond the 1-year
 1418  period The continuation of the lien effected by the commencement
 1419  of an the action is shall not enforceable be good against
 1420  creditors or subsequent purchasers for a valuable consideration
 1421  and without notice, unless a notice of lis pendens is recorded.
 1422         (2) An owner or the owner’s agent or attorney may elect to
 1423  shorten the time prescribed in subsection (1) within which to
 1424  commence an action to enforce any claim of lien or claim against
 1425  a bond or other security under s. 713.23 or s. 713.24 by
 1426  recording in the clerk’s office a notice in substantially the
 1427  following form:
 1428  
 1429                      NOTICE OF CONTEST OF LIEN                    
 1430  
 1431         To: (Name and address of lienor)
 1432         You are notified that the undersigned contests the claim of
 1433  lien filed by you on _____, (year), and recorded in _____ Book
 1434  _____, Page _____, of the public records of _____ County,
 1435  Florida, and that the time within which you may file suit to
 1436  enforce your lien is limited to 60 days from the date of service
 1437  of this notice. This _____ day of _____, (year).
 1438  
 1439         Signed: (Owner or Attorney)
 1440  
 1441         The lien of any lienor upon whom such notice is served and
 1442  who fails to institute a suit to enforce his or her lien within
 1443  60 days after service of such notice shall be extinguished
 1444  automatically. The clerk shall serve mail a copy of the notice
 1445  of contest to the lien claimant at the address shown in the
 1446  claim of lien or most recent amendment thereto and shall certify
 1447  to such service on the face of such notice and record the
 1448  notice. Service shall be deemed complete upon mailing.
 1449         Section 15. Paragraph (e) of subsection (1) and subsections
 1450  (2) and (4) of section 713.23, Florida Statutes, are amended to
 1451  read:
 1452         713.23 Payment bond.—
 1453         (1)
 1454         (e) An No action for the labor or materials or supplies may
 1455  not be instituted or prosecuted against the contractor or surety
 1456  unless both notices have been given. An No action may not shall
 1457  be instituted or prosecuted against the contractor or against
 1458  the surety on the bond under this section after 1 year from the
 1459  performance of the labor or completion of delivery of the
 1460  materials and supplies. The time period for bringing an action
 1461  against the contractor or surety on the bond shall be measured
 1462  from the last day of furnishing labor, services, or materials by
 1463  the lienor. The time period may and shall not be measured by
 1464  other standards, such as the issuance of a certificate of
 1465  occupancy or the issuance of a certificate of substantial
 1466  completion. A contractor or the contractor’s agent or attorney
 1467  may elect to shorten the prescribed time within which an action
 1468  to enforce any claim against a payment bond provided under this
 1469  section or s. 713.245 must may be commenced at any time after a
 1470  notice of nonpayment, if required, has been served for the claim
 1471  by recording in the clerk’s office a notice in substantially the
 1472  following form:
 1473  
 1474                     NOTICE OF CONTEST OF CLAIM                    
 1475                        AGAINST PAYMENT BOND                       
 1476  
 1477         To: (Name and address of lienor)
 1478         You are notified that the undersigned contests your notice
 1479  of nonpayment, dated _____, _____, and served on the undersigned
 1480  on _____, _____, and that the time within which you may file
 1481  suit to enforce your claim is limited to 60 days from the date
 1482  of service of this notice.
 1483  
 1484         DATED on _____, _____.
 1485  
 1486         Signed: (Contractor or Attorney)
 1487  
 1488         The claim of any lienor upon whom the notice is served and
 1489  who fails to institute a suit to enforce his or her claim
 1490  against the payment bond within 60 days after service of the
 1491  notice shall be extinguished automatically. The clerk shall
 1492  serve mail a copy of the notice of contest to the lienor at the
 1493  address shown in the notice of nonpayment or most recent
 1494  amendment thereto and shall certify to such service on the face
 1495  of the notice and record the notice. Service is complete upon
 1496  mailing.
 1497         (2) The bond shall secure every lien under the direct
 1498  contract accruing subsequent to its execution and delivery,
 1499  except that of the contractor. Every claim of lien, except that
 1500  of the contractor, filed subsequent to execution and delivery of
 1501  the bond shall be transferred to it with the same effect as
 1502  liens transferred under s. 713.24. Record notice of the transfer
 1503  shall be effected by the contractor, or any person having an
 1504  interest in the property against which the claim of lien has
 1505  been asserted, by recording in the clerk’s office a notice in
 1506  substantially the following form:
 1507  
 1508                           NOTICE OF BOND                          
 1509  
 1510         To (Name and Address of Lienor)
 1511  
 1512         You are notified that the claim of lien filed by you on
 1513  _____, _____, and recorded in Official Records Book _____ at
 1514  page _____ of the public records of _____ County, Florida, is
 1515  secured by a bond, a copy being attached.
 1516  
 1517         Signed: (Name of person recording notice)
 1518  
 1519         The notice shall be verified. The clerk shall mail a copy
 1520  of the notice to the lienor at the address shown in the claim of
 1521  lien, or the most recent amendment to it; shall certify to the
 1522  service on the face of the notice; and shall record the notice.
 1523  The clerk shall receive the same fee as prescribed in s. 713.24
 1524  s. 713.24(1) for certifying to a transfer of lien.
 1525         (4) The provisions of s. 713.24(7) s. 713.24(3) shall apply
 1526  to bonds under this section.
 1527         Section 16. Section 713.24, Florida Statutes, is amended to
 1528  read:
 1529         713.24 Transfer of liens to security.—
 1530         (1) A Any lien claimed under this part may be transferred,
 1531  by a any person having an interest in the real property upon
 1532  which the lien is imposed or the contract under which the lien
 1533  is claimed, from such real property to other security by either:
 1534         (a) Depositing in the clerk’s office a sum of money;, or
 1535         (b) Filing in the clerk’s office a bond executed as surety
 1536  by a surety insurer licensed to do business in this state.,
 1537         (2)The security must either to be in an amount equal: to
 1538         (a) The amount demanded in the such claim of lien;, plus
 1539         (b) Interest on the claim thereon at the legal rate for 3
 1540  years, plus $1,000 or 25 percent of the amount demanded in the
 1541  claim of lien, whichever is greater, to apply on any attorney’s
 1542  fees and court costs that may be taxed in any proceeding to
 1543  enforce the said lien.
 1544         (3)The security Such deposit or bond shall be conditioned
 1545  to pay any judgment or decree that which may be rendered for the
 1546  satisfaction of the lien for which such claim of lien was
 1547  recorded.
 1548         (4)A Upon making such deposit or filing such bond, the
 1549  clerk who receives other security for a lien:
 1550         (a) Shall make and record a certificate showing the
 1551  transfer of the lien from the real property to the security. The
 1552  clerk and shall serve mail a copy of the certificate and a copy
 1553  of the bond, if the lien was transferred to a bond, on thereof
 1554  by registered or certified mail to the lienor named in the claim
 1555  of lien so transferred, at the address stated in the claim
 1556  therein. When Upon filing the certificate of transfer is
 1557  recorded, the real property is shall thereupon be released from
 1558  the lien claimed, and the such lien is shall be transferred to
 1559  the other said security.
 1560         (b)May collect a service charge of no more than $20 for
 1561  making and serving the certificate. The clerk may collect an
 1562  additional charge of no more than $10 for each additional lien
 1563  transferred to the security. The clerk shall receive the
 1564  statutory service charges as prescribed in s. 28.24 for
 1565  recording the certificate and approving the bond.
 1566         (5) In the absence of allegations of privity between the
 1567  lienor and the owner, and subject to any order of the court
 1568  increasing the amount required for the lien transfer deposit or
 1569  bond, no other judgment or decree to pay money may be entered by
 1570  the court against the owner. The clerk shall be entitled to a
 1571  service charge for making and serving the certificate, in the
 1572  amount of up to $20. If the transaction involves the transfer of
 1573  multiple liens, an additional charge of up to $10 for each
 1574  additional lien shall be charged. For recording the certificate
 1575  and approving the bond, the clerk shall receive her or his usual
 1576  statutory service charges as prescribed in s. 28.24. Any number
 1577  of liens may be transferred to one such security.
 1578         (6)(2) Any excess of the security over the aggregate amount
 1579  of any judgments or decrees rendered plus costs actually taxed
 1580  shall be repaid to the party filing the same or her or his
 1581  successor in interest. Any deposit of money shall be considered
 1582  as paid into court and is shall be subject to the provisions of
 1583  law relative to payments of money into court and the disposition
 1584  of same.
 1585         (7)(3) Any party having an interest in such security or the
 1586  property from which the lien was transferred may at any time,
 1587  and any number of times, file a complaint in chancery in the
 1588  circuit court of the county where such security is deposited, or
 1589  file a motion in a pending action to enforce a lien, for an
 1590  order to require additional security, reduction of security,
 1591  change or substitution of sureties, payment of discharge
 1592  thereof, or any other matter affecting the said security. If the
 1593  court finds that the amount of the deposit or bond in excess of
 1594  the amount claimed in the claim of lien is insufficient to pay
 1595  the lienor’s attorney’s fees and court costs incurred in the
 1596  action to enforce the lien, the court must increase the amount
 1597  of the cash deposit or lien transfer bond. Nothing in This
 1598  section does not shall be construed to vest exclusive
 1599  jurisdiction in the circuit courts over transfer bond claims for
 1600  nonpayment of an amount within the monetary jurisdiction of the
 1601  county courts.
 1602         (8)(4) If a proceeding to enforce a transferred lien is not
 1603  commenced within the time specified in s. 713.22 or if it
 1604  appears that the transferred lien has been satisfied of record,
 1605  the clerk shall return the said security upon request of the
 1606  person depositing or filing the same, or the insurer. If a
 1607  proceeding to enforce a lien is commenced in a court of
 1608  competent jurisdiction within the time specified in s. 713.22
 1609  and, during such proceeding, the lien is transferred pursuant to
 1610  this section or s. 713.13(1)(e), an action commenced within 1
 1611  year after the transfer, unless otherwise shortened by operation
 1612  of law, in the same county or circuit court to recover against
 1613  the security shall be deemed to have been brought as of the date
 1614  of filing the action to enforce the lien, and the court has
 1615  shall have jurisdiction over the action.
 1616         Section 17. Effective upon this act becoming a law, section
 1617  713.29, Florida Statutes, is amended to read:
 1618         713.29 Attorney’s fees.—In any action brought to enforce a
 1619  lien or to enforce a claim against a bond under this part, the
 1620  prevailing party is entitled to recover a reasonable fee for the
 1621  services of her or his attorney for trial and appeal or for
 1622  arbitration, in an amount to be determined by the court, which
 1623  fee must be taxed as part of the prevailing party’s costs, as
 1624  allowed in equitable actions. A lienor is the prevailing party
 1625  if the lienor obtains a net judgment in any action brought to
 1626  enforce a lien or to enforce a claim against a bond after the
 1627  deduction of any setoffs. A defendant is the prevailing party if
 1628  the lienor does not obtain a net judgment after the deduction of
 1629  any setoffs.
 1630         Section 18. Except as otherwise expressly provided in this
 1631  act and except for this section, which shall take effect upon
 1632  this act becoming a law, this act shall take effect July 1,
 1633  2009.