Bill Amendment: FL S1272 | 2022 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Liens and Bonds
Status: 2022-03-14 - Died in Judiciary [S1272 Detail]
Download: Florida-2022-S1272-Senate_Committee_Amendment_953032.html
Bill Title: Liens and Bonds
Status: 2022-03-14 - Died in Judiciary [S1272 Detail]
Download: Florida-2022-S1272-Senate_Committee_Amendment_953032.html
Florida Senate - 2022 COMMITTEE AMENDMENT Bill No. SB 1272 Ì953032sÎ953032 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Bradley) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Paragraph (a) of subsection (2) and subsections 6 (6) and (7) of section 255.05, Florida Statutes, are amended, 7 and a new subsection (11) is added to that section, to read: 8 255.05 Bond of contractor constructing public buildings; 9 form; action by claimants.— 10 (2)(a)1. If a claimant is no longer furnishing labor, 11 services, or materials on a project, a contractor or the 12 contractor’s agent or attorney may elect to shorten the time 13 within which an action to enforce any claim against a payment 14 bond must be commenced by recording in the clerk’s office a 15 notice in substantially the following form: 16 17 NOTICE OF CONTEST OF CLAIM 18 AGAINST PAYMENT BOND 19 20 To: ...(Name and address of claimant)... 21 22 You are notified that the undersigned contests your notice 23 of nonpayment, dated ............, ........, and served on the 24 undersigned on ............, ........, and that the time within 25 which you may file suit to enforce your claim is limited to 60 26 days after the date of service of this notice. 27 28 DATED on ............, ......... 29 30 Signed: ...(Contractor or Attorney)... 31 32 The claim of a claimant upon whom such notice is served and who 33 fails to institute a suit to enforce his or her claim against 34 the payment bond within 60 days after service of such notice is 35 extinguished automatically. The contractor or the contractor’s 36 attorney shall serve a copy of the notice of contest ontothe 37 claimant at the address shown in the notice of nonpayment or 38 most recent amendment thereto and shall certify to such service 39 on the face of the notice and record the notice. 40 2. A claimant, except a laborer, who is not in privity with 41 the contractor shall, before commencing or not later than 45 42 days after commencing to furnish labor, services, or materials 43 for the prosecution of the work, serve the contractor with a 44 written notice that he or she intends to look to the bond for 45 protection. If the payment bond is not recorded before the 46 commencement of work or before the recommencement of work after 47 a default or abandonment, if applicable, as required by s. 48 255.05(1), the claimant may serve the contractor with such 49 written notice up to 45 days after the date that the claimant is 50 served with a copy of the bond. A claimant who is not in privity 51 with the contractor and who has not received payment for 52 furnishing his or her labor, services, or materials shall serve 53 a written notice of nonpayment on the contractor and a copy of 54 the notice on the surety. The notice of nonpayment mustshallbe 55 under oath and served during the progress of the work or 56 thereafter but may not be served earlier than 3045days after 57 the first furnishing of labor, services, or materials by the 58 claimant or later than 90 days after the final furnishing of the 59 labor, services, or materials by the claimant or, with respect 60 to rental equipment, later than 90 days after the date that the 61 rental equipment was last on thejobsite of the improvement 62 available for use. Any notice of nonpayment served by a claimant 63 who is not in privity with the contractor which includes sums 64 for retainage must specify the portion of the amount claimed for 65 retainage. An action for the labor, services, or materials may 66 not be instituted against the contractor or the surety unless 67 the notice to the contractor and notice of nonpayment have been 68 served, if required by this section. Notices required or 69 permitted under this section must be served in accordance with 70 s. 713.18. A claimant may not waive in advance his or her right 71 to bring an action under the bond against the surety. In any 72 action brought to enforce a claim against a payment bond under 73 this section, the prevailing party is entitled to recover a 74 reasonable fee for the services of his or her attorney for trial 75 and appeal or for arbitration, in an amount to be determined by 76 the court or arbitrator, which fee must be taxed as part of the 77 prevailing party’s costs, as allowed in equitable actions. The 78 time periods for service of a notice of nonpayment or for 79 bringing an action against a contractor or a surety areshall be80 measured from the last day of furnishing labor, services, or 81 materials by the claimant and may not be measured by other 82 standards, such as the issuance of a certificate of occupancy or 83 the issuance of a certificate of substantial completion. The 84 negligent inclusion or omission of any information in the notice 85 of nonpayment that has not prejudiced the contractor or surety 86 does not constitute a default that operates to defeat an 87 otherwise valid bond claim. A claimant who serves a fraudulent 88 notice of nonpayment forfeits his or her rights under the bond. 89 A notice of nonpayment is fraudulent if the claimant has 90 willfully exaggerated the amount unpaid, willfully included a 91 claim for work not performed or materials not furnished for the 92 subject improvement, or prepared the notice with such willful 93 and gross negligence as to amount to a willful exaggeration. 94 However, a minor mistake or error in a notice of nonpayment, or 95 a good faith dispute as to the amount unpaid, does not 96 constitute a willful exaggeration that operates to defeat an 97 otherwise valid claim against the bond. The service of a 98 fraudulent notice of nonpayment is a complete defense to the 99 claimant’s claim against the bond. The notice of nonpayment 100 under this subparagraph must include the following information, 101 current as of the date of the notice, and must be in 102 substantially the following form: 103 104 NOTICE OF NONPAYMENT 105 106 To: ...(name of contractor and address)... 107 108 ...(name of surety and address)... 109 110 The undersigned claimant notifies you that: 111 1. Claimant has furnished ...(describe labor, services, or 112 materials)... for the improvement of the real property 113 identified as ...(property description).... The corresponding 114 amount unpaid to date is $...., of which $.... is unpaid 115 retainage. 116 2. Claimant has been paid to date the amount of $.... for 117 previously furnishing ...(describe labor, services, or 118 materials)... for this improvement. 119 3. Claimant expects to furnish ...(describe labor, 120 services, or materials)... for this improvement in the future 121 (if known), and the corresponding amount expected to become due 122 is $.... (if known). 123 124 I declare that I have read the foregoing Notice of Nonpayment 125 and that the facts stated in it are true to the best of my 126 knowledge and belief. 127 128 DATED on ............, ......... 129 130 ...(signature and address of claimant)... 131 132 STATE OF FLORIDA 133 COUNTY OF ........ 134 135 The foregoing instrument was sworn to (or affirmed) and 136 subscribed before me by means of ☐ physical presence or sworn to 137 (or affirmed) by ☐ online notarization this .... day of ...., 138 ...(year)..., by ...(name of signatory).... 139 140 ...(Signature of Notary Public - State of Florida)... 141 ...(Print, Type, or Stamp Commissioned Name of Notary 142 Public)... 143 144 Personally Known ........ OR Produced Identification ........ 145 146 Type of Identification Produced................................. 147 148 (6) All payment bond forms used by a public owner and all 149 payment bonds executed pursuant to this section by a surety 150 shall make reference to this section by number, shall contain 151 reference to the notice and time limitation provisions in 152 subsections (2) and (9)(10), and shall comply with the 153 requirements of paragraph (1)(a). 154(7)In lieu of the bond required by this section, a155contractor may file with the state, county, city, or other156political authority an alternative form of security in the form157of cash, a money order, a certified check, a cashier’s check, an158irrevocable letter of credit, or a security of a type listed in159part II of chapter 625. Any such alternative form of security160shall be for the same purpose and be subject to the same161conditions as those applicable to the bond required by this162section. The determination of the value of an alternative form163of security shall be made by the appropriate state, county,164city, or other political subdivision.165 (11) Unless otherwise provided in this section, service of 166 any document must be made in accordance with s. 713.18. 167 Section 2. Paragraph (c) of subsection (1) of section 168 337.18, Florida Statutes, is amended, and subsection (6) is 169 added to that section, to read: 170 337.18 Surety bonds for construction or maintenance 171 contracts; requirement with respect to contract award; bond 172 requirements; defaults; damage assessments.— 173 (1) 174 (c) A claimant, except a laborer, who is not in privity 175 with the contractor shall, before commencing or not later than 176 90 days after commencing to furnish labor, materials, or 177 supplies for the prosecution of the work, furnish the contractor 178 with a notice that he or she intends to look to the bond for 179 protection. A claimant who is not in privity with the contractor 180 and who has not received payment for his or her labor, 181 materials, or supplies shall deliver to the contractor and to 182 the surety written notice of the performance of the labor or 183 delivery of the materials or supplies and of the nonpayment. The 184 notice of nonpayment may be served at any time during the 185 progress of the work or thereafter but not before 3045days 186 after the first furnishing of labor, services, or materials, and 187 not later than 90 days after the final furnishing of the labor, 188 services, or materials by the claimant or, with respect to 189 rental equipment, not later than 90 days after the date that the 190 rental equipment was last on thejobsite of the improvement 191 available for use. An action by a claimant, except a laborer, 192 who is not in privity with the contractor for the labor, 193 materials, or supplies may not be instituted against the 194 contractor or the surety unless both notices have been given. 195 Written notices required or permitted under this section must 196maybe served in accordance withany manner provided ins. 197 713.18. 198 (6) Unless otherwise provided in this section, service of 199 any document must be made in accordance with s. 713.18. 200 Section 3. Present subsections (13) through (27) and 201 subsections (28) and (29) of section 713.01, Florida Statutes, 202 are redesignated as subsections (14) through (28) and 203 subsections (30) and (31), respectively, new subsections (13) 204 and (29) are added to that section, and subsections (4), (8), 205 and (12) of that section are amended, to read: 206 713.01 Definitions.—As used in this part, the term: 207 (4) “Clerk’s office” means the office of the clerk of the 208 circuit court of the county, or another office serving as the 209 county recorder as provided by law, in which the real property 210 is located. 211 (8) “Contractor” means a person other than a materialman or 212 laborer who enters into a contract with the owner of real 213 property for improving it, or who takes over from a contractor 214 as so defined the entire remaining work under such contract. The 215 term “contractor” includes an architect, landscape architect, or 216 engineer who improves real property pursuant to a design-build 217 contract authorized by s. 489.103(16). The term also includes a 218 licensed general contractor or building contractor, as those 219 terms are defined in s. 489.105(3)(a) and (b), respectively, who 220 provides construction management services, which include 221 scheduling and coordinating both preconstruction and 222 construction phases for the successful, timely, and economical 223 completion of the construction project or who provides program 224 management services, which include schedule control, cost 225 control, and coordination in providing or procuring planning, 226 design, and construction. 227 (12) “Final furnishing” means the last date that the lienor 228 furnishes labor, services, or materials. Such date may not be 229 measured by other standards, such as the issuance of a 230 certificate of occupancy or the issuance of a certificate of 231 final completion, and does not include the correction of 232 deficiencies in the lienor’s previously performed work or 233 materials supplied. With respect to rental equipment, the term 234 means the date that the rental equipment was last on thejob235 site of the improvement and available for use. With respect to 236 specially fabricated materials, the term means the date that the 237 last portion of the specially fabricated materials is delivered 238 to the site of the improvement, or if any portion of the 239 specially fabricated materials is not delivered to the site of 240 the improvement by no fault of the lienor, the term means 90 241 days after the date the lienor completes the fabrication or 90 242 days before the expiration of the notice of commencement, 243 whichever is earlier. 244 (13) “Finance charge” means a contractually specified 245 additional amount to be paid by the obligor on any balance that 246 remains unpaid by the due date set forth in the credit agreement 247 or other contract. 248 (29) “Specially fabricated materials” means materials 249 designed and fabricated for use in a particular improvement that 250 are not generally suited for or readily adaptable for use in a 251 similar improvement. 252 Section 4. Section 713.011, Florida Statutes, is created to 253 read: 254 713.011 Computation of time.— 255 (1) In computing any time period for recording a document 256 or filing an action under this part, if the last day of the time 257 period is a Saturday, Sunday, legal holiday, or any day observed 258 as a holiday by the clerk’s office, the time period is extended 259 to the end of the next business day. 260 (2) During a state of emergency declared under chapter 252 261 during which the clerk’s office is closed, the time periods for 262 recording a document or filing an action under this part are 263 tolled. Upon the expiration of the declared state of emergency, 264 the number of days that were remaining for any such time period 265 on the first day of the declared state of emergency commences on 266 the first business day after the expiration of the declared 267 state of emergency. 268 (3) For purposes of this section, a federal, state, or 269 local governmental order closing or directing the closure of the 270 clerk’s office for any reason constitutes a state of emergency 271 and a clerk’s office is considered closed if it is not accepting 272 documents for recording or filing by any means. 273 Section 5. Paragraph (b) of subsection (2) of section 274 713.10, Florida Statutes, is amended, and subsection (4) is 275 added to that section, to read: 276 713.10 Extent of liens.— 277 (2) 278 (b) The interest of the lessor is not subject to liens for 279 improvements made by the lessee when: 280 1. The lease, or a short form or a memorandum of the lease 281 that contains the specific language in the lease prohibiting 282 such liability, is recorded in the official records of the 283 county where the premises are located before the recording of a 284 notice of commencement for improvements to the premises and the 285 terms of the lease expressly prohibit such liability; or 286 2. The terms of the lease expressly prohibit such 287 liability, and a notice advising that leases for the rental of 288 premises on a parcel of land prohibit such liability has been 289 recorded in the official records of the county in which the 290 parcel of land is located before the recording of a notice of 291 commencement for improvements to the premises, and the notice 292 includes the following: 293 a. The name of the lessor. 294 b. The legal description of the parcel of land to which the 295 notice applies. 296 c. The specific language contained in the various leases 297 prohibiting such liability. 298 d. A statement that all or a majority of the leases entered 299 into for premises on the parcel of land expressly prohibit such 300 liability. 3013.The lessee is a mobile home owner who is leasing a302mobile home lot in a mobile home park from the lessor.303 304 A notice that is consistent with subparagraph 2. effectively 305 prohibits liens for improvements made by a lessee even if other 306 leases for premises on the parcel do not expressly prohibit 307 liens or if provisions of each lease restricting the application 308 of liens are not identical. 309 (4) The interest of the lessor is not subject to liens for 310 improvements made by the lessee when the lessee is a mobile home 311 owner who is leasing a mobile home lot in a mobile home park 312 from the lessor. 313 Section 6. Paragraphs (a) and (d) of subsection (1) of 314 section 713.13, Florida Statutes, are amended to read: 315 713.13 Notice of commencement.— 316 (1)(a) Except for an improvement that is exempt under 317pursuant tos. 713.02(5), an owner or the owner’s authorized 318 agent before actually commencing to improve any real property, 319 or recommencing completion of any improvement after default or 320 abandonment, whether or not a project has a payment bond 321 complying with s. 713.23, shall record a notice of commencement 322 in the clerk’s office andforthwithpost either a certified copy 323 thereof or a notarized statement that the notice of commencement 324 has been filed for recording along with a copy thereof. The 325 notice of commencement shall contain all of the following 326 information: 327 1. A description sufficient for identification of the real 328 property to be improved. The description should include the 329 legal description of the property and also should include the 330 street address and tax folio number of the property if available 331 or, if there is no street address available, such additional 332 information as will describe the physical location of the real 333 property to be improved. 334 2. A general description of the improvement. 335 3. The name and address of the owner, the owner’s interest 336 in the site of the improvement, and the name and address of the 337 fee simple titleholder, if other than such owner. A lessee who 338 contracts for the improvements is an owner as defined under s. 339 713.01s. 713.01(23)and must be listed as the owner together 340 with a statement that the ownership interest is a leasehold 341 interest. 342 4. The name and address of the contractor. 343 5. The name and address of the surety on the payment bond 344 under s. 713.23, if any, and the amount of such bond. 345 6. The name and address of any person making a loan for the 346 construction of the improvements. 347 7. The name and address within the state of a person other 348 than himself or herself who may be designated by the owner as 349 the person upon whom notices or other documents may be served 350 under this part; and service upon the person so designated 351 constitutes service upon the owner. 352 (d) A notice of commencement must be in substantially the 353 following form: 354 355 Permit No..... Tax Folio No..... 356 NOTICE OF COMMENCEMENT 357 State of.... 358 County of.... 359 360 The undersigned hereby gives notice that improvement will be 361 made to certain real property, and in accordance with Chapter 362 713, Florida Statutes, the following information is provided in 363 this Notice of Commencement. 364 1. Description of property: ...(legal description of the 365 property, and street address if available).... 366 2. General description of improvement:..... 367 3. Owner information or Lessee information if the Lessee 368 contracted for the improvement: 369 a. Name and address:..... 370 b. Interest in property:..... 371 c. Name and address of fee simple titleholder (if different 372 from Owner listed above):..... 373 4.a. Contractor: ...(name and address).... 374 b. Contractor’s phone number:..... 375 5. Surety (if applicable, a copy of the payment bond is 376 attached): 377 a. Name and address:..... 378 b. Phone number:..... 379 c. Amount of bond: $..... 380 6.a. Lender: ...(name and address).... 381 b. Lender’s phone number:..... 382 7. Persons within the State of Florida designated by Owner 383 upon whom notices or other documents may be served as provided 384 by Section 713.13(1)(a)7., Florida Statutes: 385 a. Name and address:..... 386 b. Phone numbers of designated persons:..... 387 8.a. In addition to himself or herself, Owner designates 388 ............ of ............ to receive a copy of the Lienor’s 389 Notice as provided in Section 713.13(1)(b), Florida Statutes. 390 b. Phone number of person or entity designated by 391 owner:..... 392 9. Expiration date of notice of commencement (the 393 expiration date will be 1 year afterfromthe date of recording 394 unless a different date is specified)..... 395 396 WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE 397 EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER 398 PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA 399 STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS 400 TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND 401 POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU 402 INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN 403 ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF 404 COMMENCEMENT. 405 406 ...(Signature of Owner or Lessee, or Owner’s or Lessee’s 407 Authorized Officer/Director/Partner/Manager)... 408 409 ...(Signatory’s Title/Office)... 410 411 The foregoing instrument was acknowledged before me by means of 412 ☐ physical presence or acknowledged before me by means of ☐ 413 online notarization, this .... day of ...., ...(year)..., by 414 ...(name of person)... as ...(type of authority, . . . e.g. 415 officer, trustee, attorney in fact)... for ...(name of party on 416 behalf of whom instrument was executed).... 417 418 ...(Signature of Notary Public - State of Florida)... 419 420 ...(Print, Type, or Stamp Commissioned Name of Notary Public)... 421 422 Personally Known .... OR Produced Identification .... 423 424 Type of Identification Produced............ 425 Section 7. Subsections (1), (3), and (4) of section 426 713.132, Florida Statutes, are amended to read: 427 713.132 Notice of termination.— 428 (1) An owner may terminate the period of effectiveness of a 429 notice of commencement by executing, swearing to, and recording 430 a notice of termination that contains all of the following: 431 (a) The same information as the notice of commencement.;432 (b) The official records’recording office document book433and pagereference numbers and recording date affixed by the 434 recording office onofthe recorded notice of commencement.;435 (c) A statement of the date as of which the notice of 436 commencement is terminated, which date may not be earlier than 437 30 days after the notice of termination is recorded.;438 (d) A statement specifying that the notice applies to all 439 the real property subject to the notice of commencement or 440 specifying the portion of such real property to which it 441 applies.;442 (e) A statement that all lienors have been paid in full.;443and444 (f) A statement that the owner has, before recording the 445 notice of termination, served a copy of the notice of 446 terminationon the contractor andon each lienor who has a 447 direct contract with the owner or who has timely served a notice 448 to owner, and a statement that the owner will serve a copy of 449 the notice of termination on each lienor who timely serves a 450 notice to owner after the notice of termination has been 451 recorded. The owner is not required to serve a copy of the 452 notice of termination on any lienor who has executed a waiver 453 and release of lien upon final payment in accordance with s. 454 713.20. 455 (3) An owner maynotrecord a notice of termination at any 456 time afterexcept after completion of construction, or after457construction ceases before completion andall lienors have been 458 paid in full or pro rata in accordance with s. 713.06(4). 459 (4) If an owner or a contractor, by fraud or collusion, 460 knowingly makes any fraudulent statement or affidavit in a 461 notice of termination or any accompanying affidavit, the owner 462 and the contractor, or either of them,as the case may be,is 463 liable to any lienor who suffers damages as a result of the 464 filing of the fraudulent notice of termination,;and any such 465 lienor has a right of action for damagesoccasioned thereby. 466 (5)(4)A notice of termination must be served before 467 recording on each lienor who has a direct contract with the 468 owner and on each lienor who has timely and properly served a 469 notice to owner in accordance with this part before the 470 recording of the notice of termination. A notice of termination 471 must be recorded in the official records of the county in which 472 the improvement is located. If properly served before recording 473 in accordance with this subsection, the notice of termination 474 terminates the period of effectiveness of the notice of 475 commencement 30 days after the notice of termination is recorded 476 in the official recordsis effective to terminate the notice of477commencement at the later of 30 days after recording of the478notice of terminationor a laterthedate stated in the notice 479 of termination as the date on which the notice of commencement 480 is terminated. However, if a lienor who began work under the 481 notice of commencement before its termination lacks a direct 482 contract with the owner and timely serves his or her notice to 483 owner after the notice of termination has been recorded, the 484 owner must serve a copy of the notice of termination upon such 485 lienor, and the termination of the notice of commencement as to 486 that lienor is effective 30 days after service of the notice of 487 termination, if the notice of termination has been served488pursuant to paragraph (1)(f) on the contractor and on each489lienor who has a direct contract with the owner or who has490served a notice to owner. 491 Section 8. Subsections (1) and (3) of section 713.135, 492 Florida Statutes, are amended to read: 493 713.135 Notice of commencement and applicability of lien.— 494 (1) When aanyperson applies for a building permit, the 495 authority issuing such permit shall: 496 (a) Print on the face of each permit card in no less than 497 14-point, capitalized, boldfaced type: “WARNING TO OWNER: YOUR 498 FAILURE TO RECORD A NOTICE OF COMMENCEMENT MAY RESULT IN YOUR 499 PAYING TWICE FOR IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF 500 COMMENCEMENT MUST BE RECORDED AND POSTED ON THE JOB SITE BEFORE 501 THE FIRST INSPECTION. IF YOU INTEND TO OBTAIN FINANCING, CONSULT 502 WITH YOUR LENDER OR AN ATTORNEY BEFORE RECORDING YOUR NOTICE OF 503 COMMENCEMENT.” 504 (b) Provide the applicant and the owner of the real 505 property upon which improvements are to be constructed with a 506 printed statement stating that the right, title, and interest of 507 the person who has contracted for the improvement may be subject 508 to attachment under the Construction Lien Law. The Department of 509 Business and Professional Regulation shall furnish, for 510 distribution, the statement described in this paragraph, and the 511 statement must be a summary of the Construction Lien Law and 512 must include an explanation of the provisions of the 513 Construction Lien Law relating to the recording, and the posting 514 of copies, of notices of commencement and a statement 515 encouraging the owner to record a notice of commencement and 516 post a copy of the notice of commencement in accordance with s. 517 713.13. The statement must also contain an explanation of the 518 owner’s rights if a lienor fails to furnish the owner with a 519 notice as provided in s. 713.06(2) and an explanation of the 520 owner’s rights as provided in s. 713.22. The authority that 521 issues the building permit must obtain from the Department of 522 Business and Professional Regulation the statement required by 523 this paragraph and must mail, deliver by electronic mail or 524 other electronic format or facsimile, or personally deliver that 525 statement to the owner or, in a case in which the owner is 526 required to personally appear to obtain the permit, provide that 527 statement to any owner making improvements to real property 528 consisting of a single or multiple family dwelling up to and 529 including four units. However, the failure by the authorities to 530 provide the summary does not subject the issuing authority to 531 liability. 532 (c) In addition to providing the owner with the statement 533 as required by paragraph (b), inform each applicant who is not 534 the person whose right, title, and interest is subject to 535 attachment that, as a condition to the issuance of a building 536 permit, the applicant must promise in good faith that the 537 statement will be delivered to the person whose property is 538 subject to attachment. 539 (d) Furnish to the applicant two or more copies of a form 540 of notice of commencement conforming with s. 713.13. 541 (e) RequireIf the direct contract is greater than $2,500,542 the applicant toshallfile with the issuing authority before 543prior tothe first inspectioneitheracertifiedcopy of the 544recordednotice of commencement if the direct contract is 545 greater than $2,500. For purposes of this paragraph, the term 546 “copy of the notice of commencement” means a certified copy of 547 the recorded notice of commencement,ora notarized statement 548 that the notice of commencement has been filed for recording,549 along with a copy thereof, or the clerk’s office official 550 records identifying information that includes the instrument 551 number for the notice of commencement or the number and page of 552 book where the notice of commencement is recorded, as identified 553 by the clerk. 554 1. In the absence of the filing of acertifiedcopy of the 555recordednotice of commencement, the issuing authority or a 556 private provider performing inspection services may not perform 557 or approve subsequent inspections until the applicant files by 558 mail, facsimile, hand delivery, or any other means such 559certifiedcopy with the issuing authority. 560 2. Thecertifiedcopy of the notice of commencement must 561 contain the name and address of the owner, the name and address 562 of the contractor, and the location or address of the property 563 being improved. The issuing authority shall verify that the name 564 and address of the owner, the name of the contractor, and the 565 location or address of the property being improved which is 566 contained in thecertifiedcopy of the notice of commencement is 567 consistent with the information in the building permit 568 application. 569 3. The issuing authority shall provide the recording 570 information on thecertifiedcopy of therecordednotice of 571 commencement to any person upon request. 572 4. This subsection does not require the recording of a 573 notice of commencement beforeprior tothe issuance of a 574 building permit. If a local government requires a separate 575 permit or inspection for installation of temporary electrical 576 service or other temporary utility service, land clearing, or 577 other preliminary site work, such permits may be issued and such 578 inspections may be conducted without providing the issuing 579 authority with acertifiedcopy of thea recordednotice of 580 commencementor a notarized statement regarding a recorded581notice of commencement.This subsection does not apply to a582direct contract to repair or replace an existing heating or air583conditioning system in an amount less than $7,500.584 (f)(e)Not require that a notice of commencement be 585 recorded as a condition of the application for, or processing or 586 issuance of, a building permit. However, this paragraph does not 587 modify or waive the inspection requirements set forth in this 588 subsection. 589 590 This subsection does not apply to a direct contract to repair or 591 replace an existing heating or air-conditioning system in an 592 amount less than $7,500. 593 (3) An issuing authority under subsection (1) is not liable 594 in any civil action for the failure to verify that a certified 595 copy of the recorded notice of commencement, a notarized 596 statement that the notice of commencement has been filed for 597 recording along with a copy thereof, or the clerk’s office 598 official records identifying information that includes the 599 instrument number for the notice of commencement or the number 600 and page of book where the notice of commencement is recorded, 601 as identified by the clerk, has been filed in accordance with 602 this section. 603 Section 9. Section 713.18, Florida Statutes, is amended to 604 read: 605 713.18 Manner of serving documentsnotices and other606instruments.— 607 (1) Unless otherwise specifically provided by law, service 608 of any documentnotices, claims of lien, affidavits,609assignments, and other instrumentspermitted or required under 610 this part, s. 255.05, or s. 337.18, or copies thereof when so 611 permitted or required,unless otherwise specifically provided in612this part,must be made by one of the following methods: 613 (a) By handactualdelivery to the person to be served; if 614 a partnership, to one of the partners; if a corporation, to an 615 officer, director, managing agent, or business agent; or, if a 616 limited liability company, to a member or manager. 617 (b) By common carrier delivery service or by registered, 618 Global Express Guaranteed, or certified mail to the person to be 619 served, with postage or shipping paid by the sender and with 620 evidence of delivery, which may be in an electronic format. 621 (c) By posting on the site of the improvement if service as 622 provided by paragraph (a) or paragraph (b) cannot be 623 accomplished. 624 (2) Notwithstanding subsection (1), service of a notice to 625 owner or a preliminary notice to contractor under this part, s. 626 255.05, or s. 337.18, or s. 713.23is effective as of the date 627 of mailing and the requirements for service under this section 628 have been satisfied if all of the following requirements have 629 been met: 630 (a) The notice is mailed by registered, Global Express 631 Guaranteed, or certified mail, with postage prepaid, to the 632 person to be served and addressed as prescribedat any of the633addresses set forthin subsection (3).;634 (b) The notice is mailed within 40 days after the date the 635 lienor first furnishes labor, services, or materials.; and636 (c)1. The person who served the notice maintains a 637 registered or certified mail log that shows the registered or 638 certified mail number issued by the United States Postal 639 Service, the name and address of the person served, and the date 640 stamp of the United States Postal Service confirming the date of 641 mailing; or 642 2. The person who served the notice maintainselectronic643 tracking records approved or generated by the United States 644 Postal Service containing the postal tracking number, the name645and address of the person served,and verification of the date 646 of receipt by the United States Postal Service. 647 (3)(a) Notwithstanding subsection (1), service of a 648 document underan instrument pursuant tothis section is 649 effective on the date of mailing or shipping, and the 650 requirements for service under this section have been satisfied, 651the instrumentif the documentit: 652 1. Is sent to the last address shown in the notice of 653 commencement or any amendment thereto or, in the absence of a 654 notice of commencement, to the last address shown in the 655 building permit application, or to the last known address of the 656 person to be served.; and657 2. Is returned as being “refused,” “moved, not 658 forwardable,” or “unclaimed,” or is otherwise not delivered or 659 deliverable through no fault of the person serving the document 660item. 661 (b) If the address shown in the notice of commencement or 662 any amendment theretoto the notice of commencement, or, in the 663 absence of a notice of commencement, in the building permit 664 application, is incomplete for purposes of mailing or delivery, 665 the person serving the documentitemmay complete the address 666 and properly format it according to United States Postal Service 667 addressing standards using information obtained from the 668 property appraiser or another public record without affecting 669 the validity of service under this section. 670 (4) A documentnoticeserved by a lienor on one owner or 671 one partner of a partnership owning the real property is deemed 672 served onnotice toall owners and partners. 673 Section 10. Section 713.21, Florida Statutes, is amended to 674 read: 675 713.21 Discharge of lien.—A lien properly perfected under 676 this chapter may be discharged, or released in whole or in part, 677 by any of the following methods: 678 (1) By entering satisfaction of the lien upon the margin of 679 the record thereof in the clerk’s office when not otherwise 680 prohibited by law. This satisfaction shall be signed by the 681 lienor, the lienor’s agent or attorney and attested by said 682 clerk. Any person who executes a claim of lien hasshall have683 authority to execute a satisfaction in the absence of actual 684 notice of lack of authority to any person relying on the same. 685 (2) By the satisfaction or release of the lienor, duly 686 acknowledged and recorded in the clerk’s office. The 687 satisfaction or release must include the lienor’s notarized 688 signature and set forth the official records’ reference numbers 689 and recording date affixed by the recording office on the 690 subject lien. Any person who executes a claim of lien hasshall691haveauthority to execute a satisfaction or release in the 692 absence of actual notice of lack of authority to any person 693 relying on the same. 694 (3) By failure to begin an action to enforce the lien 695 within the time prescribed in this part. 696 (4) By an order of the circuit court of the county where 697 the property is located, as provided in this subsection. Upon 698 filing a complaint therefor by any interested party the clerk 699 shall issue a summons to the lienor to show cause within 20 days 700 why his or her lien should not be enforced by action or vacated 701 and canceled of record. Upon failure of the lienor to show cause 702 why his or her lien should not be enforced or the lienor’s 703 failure to commence such action before the return date of the 704 summons the court shall forthwith order cancellation of the 705 lien. 706 (5) By recording in the clerk’s office the original or a 707 certified copy of a judgment or decree of a court of competent 708 jurisdiction showing a final determination of the action. 709 Section 11. Subsection (2) of section 713.22, Florida 710 Statutes, is amended to read: 711 713.22 Duration of lien.— 712 (2) An owner or the owner’s attorney may elect to shorten 713 the time prescribed in subsection (1) within which to commence 714 an action to enforce any claim of lien or claim against a bond 715 or other security under s. 713.23 or s. 713.24 by recording in 716 the clerk’s office a notice in substantially the following form: 717 718 NOTICE OF CONTEST OF LIEN 719 To: ...(Name and address of lienor)... 720 721 You are notified that the undersigned contests the claim of lien 722 filed by you on ...., ...(year)..., and recorded in .... Book 723 ...., Page ...., of the public records of .... County, Florida, 724 and that the time within which you may file suit to enforce your 725 lien is limited to 60 days from the date of service of this 726 notice. This .... day of ...., ...(year).... 727 728 Signed: ...(Owner or Attorney)... 729 730 The lien of any lienor upon whom such recorded notice is served 731 and who fails to institute a suit to enforce his or her lien 732 within 60 days after service of such recorded notice shall be 733 extinguished automatically. The clerk shall serve, in accordance 734 with s. 713.18, a copy of the recorded notice of contest to the 735 lien claimant at the address shown in the claim of lien or most 736 recent amendment thereto and shall certify to such service and 737 the date of service on the face of the notice and record the 738 notice. 739 Section 12. Paragraphs (d) and (e) of subsection (1) of 740 section 713.23, Florida Statutes, are amended to read: 741 713.23 Payment bond.— 742 (1) 743 (d) In addition, a lienor who has not received payment for 744 furnishing his or her labor, services, or materials must, as a 745 condition precedent to recovery under the bond, serve a written 746 notice of nonpayment ontothe contractor and a copy of the 747 notice on the surety. The notice must be under oath and served 748 during the progress of the work or thereafter, but may not be 749 served later than 90 days after the final furnishing of labor, 750 services, or materials by the lienor, or, with respect to rental 751 equipment, later than 90 days after the date the rental 752 equipment was on thejobsite of the improvement and available 753 for use. A notice of nonpayment that includes sums for retainage 754 must specify the portion of the amount claimed for retainage. 755 The required notice satisfies this condition precedent with 756 respect to the payment described in the notice of nonpayment, 757 including unpaid finance charges due under the lienor’s 758 contract, and with respect to any other payments which become 759 due to the lienor after the date of the notice of nonpayment. 760 The time period for serving a notice of nonpayment isshall be761 measured from the last day of furnishing labor, services, or 762 materials by the lienor and may not be measured by other 763 standards, such as the issuance of a certificate of occupancy or 764 the issuance of a certificate of substantial completion. The 765 failure of a lienor to receive retainage sums not in excess of 766 10 percent of the value of labor, services, or materials 767 furnished by the lienor is not considered a nonpayment requiring 768 the service of the notice provided under this paragraph. If the 769 payment bond is not recorded before commencement of 770 construction, the time period for the lienor to serve a notice 771 of nonpayment may, at the option of the lienor, be calculated 772 from the date specified in this section or the date the lienor 773 is served a copy of the bond. However, the limitation period for 774 commencement of an action on the payment bond as established in 775 paragraph (e) may not be expanded. The negligent inclusion or 776 omission of any information in the notice of nonpayment that has 777 not prejudiced the contractor or surety does not constitute a 778 default that operates to defeat an otherwise valid bond claim. A 779 lienor who serves a fraudulent notice of nonpayment forfeits his 780 or her rights under the bond. A notice of nonpayment is 781 fraudulent if the lienor has willfully exaggerated the amount 782 unpaid, willfully included a claim for work not performed or 783 materials not furnished for the subject improvement, or prepared 784 the notice with such willful and gross negligence as to amount 785 to a willful exaggeration. However, a minor mistake or error in 786 a notice of nonpayment, or a good faith dispute as to the amount 787 unpaid, does not constitute a willful exaggeration that operates 788 to defeat an otherwise valid claim against the bond. The service 789 of a fraudulent notice of nonpayment is a complete defense to 790 the lienor’s claim against the bond. The notice under this 791 paragraph must include the following information, current as of 792 the date of the notice, and must be in substantially the 793 following form: 794 795 NOTICE OF NONPAYMENT 796 797 To ...(name of contractor and address)... 798 799 ...(name of surety and address)... 800 801 The undersigned lienor notifies you that: 802 803 1. The lienor has furnished ...(describe labor, services, 804 or materials)... for the improvement of the real property 805 identified as ...(property description).... The corresponding 806 amount unpaid to date is $...., of which $.... is unpaid 807 retainage. 808 2. The lienor has been paid to date the amount of $.... for 809 previously furnishing ...(describe labor, services, or 810 materials)... for this improvement. 811 3. The lienor expects to furnish ...(describe labor, 812 services, or materials)... for this improvement in the future 813 (if known), and the corresponding amount expected to become due 814 is $.... (if known). 815 816 I declare that I have read the foregoing Notice of Nonpayment 817 and that the facts stated in it are true to the best of my 818 knowledge and belief. 819 820 DATED on ............, ......... 821 822 ...(signature and address of lienor)... 823 824 STATE OF FLORIDA 825 COUNTY OF........ 826 827 The foregoing instrument was sworn to (or affirmed) and 828 subscribed before me by means of ☐ physical presence or sworn to 829 (or affirmed) by ☐ online notarization, this .... day of ...., 830 ...(year)..., by ...(name of signatory).... 831 ...(Signature of Notary Public - State of Florida)... 832 ...(Print, Type, or Stamp Commissioned Name of Notary 833 Public)... 834 835 Personally Known ........ OR Produced Identification ........ 836 837 Type of Identification Produced................................. 838 (e) An action for the labor,ormaterials, or supplies may 839 not be instituted or prosecuted against the contractor or surety 840 unless both notices have been given, if required by this 841 section. An action may not be instituted or prosecuted against 842 the contractor or against the surety on the bond under this 843 section after 1 year from the performance of the labor or 844 completion of delivery of the materials and supplies. The time 845 period for bringing an action against the contractor or surety 846 on the bond isshall bemeasured from the last day of furnishing 847 labor, services, or materials by the lienor. The time period may 848 not be measured by other standards, such as the issuance of a 849 certificate of occupancy or the issuance of a certificate of 850 substantial completion. A contractor or the contractor’s 851 attorney may elect to shorten the time within which an action to 852 enforce any claim against a payment bond provided under this 853 section or s. 713.245 must be commenced at any time after a 854 notice of nonpayment, if required, has been served for the claim 855 by recording in the clerk’s office a notice in substantially the 856 following form: 857 858 NOTICE OF CONTEST OF CLAIM 859 AGAINST PAYMENT BOND 860 861 To: ...(Name and address of lienor)... 862 You are notified that the undersigned contests your notice 863 of nonpayment, dated ...., ...., and served on the undersigned 864 on ...., ...., and that the time within which you may file suit 865 to enforce your claim is limited to 60 days afterfromthe date 866 of service of this notice. 867 868 DATED on ...., ..... 869 870 Signed: ...(Contractor or Attorney)... 871 872 The claim of any lienor upon whom the notice is served and who 873 fails to institute a suit to enforce his or her claim against 874 the payment bond within 60 days after service of the notice 875 shall be extinguished automatically. The contractor or the 876 contractor’s attorney shall serve a copy of the notice of 877 contest to the lienor at the address shown in the notice of 878 nonpayment or most recent amendment thereto and shall certify to 879 such service on the face of the notice and record the notice. 880 Section 13. Subsections (1) and (3) of section 713.24, 881 Florida Statutes, are amended to read: 882 713.24 Transfer of liens to security.— 883 (1) Any lien claimed under this part may be transferred, by 884 any person having an interest in the real property upon which 885 the lien is imposed or the contract under which the lien is 886 claimed, from such real property to other security by either: 887 (a) Depositing in the clerk’s office a sum of money, or 888 (b) Filing in the clerk’s office a bond executed as surety 889 by a surety insurer licensed to do business in this state, 890 891 either to be in an amount equal to the amount demanded in such 892 claim of lien, plus interest thereon at the legal rate for 3 893 years, plus $5,000$1,000or 25 percent of the amount demanded 894 in the claim of lien, whichever is greater, to apply on any 895 attorneyattorney’sfees and court costs that may be taxed in 896 any proceeding to enforce said lien. Such deposit or bond shall 897 be conditioned to pay any judgment or decree which may be 898 rendered for the satisfaction of the lien for which such claim 899 of lien was recorded. Upon making such deposit or filing such 900 bond, the clerk shall make and record a certificate, which must 901 include a copy of the deposit or bond used to transfer, showing 902 the transfer of the lien from the real property to the security 903 and shall mail a copy thereof together with a copy of the 904 deposit or bond used to transfer by registered or certified mail 905 to the lienor named in the claim of lien so transferred, at the 906 address stated therein. Upon filing the certificate of transfer, 907 the real property shall thereupon be released from the lien 908 claimed, and such lien shall be transferred to said security. In 909 the absence of allegations of privity between the lienor and the 910 owner, and subject to any order of the court increasing the 911 amount required for the lien transfer deposit or bond, no other 912 judgment or decree to pay money may be entered by the court 913 against the owner. The clerk isshall beentitled to a service 914 charge for making and serving the certificate, in the amount of 915 up to $20, from which the clerk shall remit $5 to the Department 916 of Revenue for deposit into the General Revenue Fund. If the 917 transaction involves the transfer of multiple liens, an 918 additional charge of up to $10 for each additional lien shall be 919 charged, from which the clerk shall remit $2.50 to the 920 Department of Revenue for deposit into the General Revenue Fund. 921 For recording the certificate and approving the bond, the clerk 922 shall receive her or his usual statutory service charges as 923 prescribed in s. 28.24. Any number of liens may be transferred 924 to one such security. 925 (3) Any party having an interest in such security or the 926 property from which the lien was transferred may at any time, 927 and any number of times, file a complaint in chancery in the 928 circuit court of the county where such security is deposited, or 929 file a motion in a pending action to enforce a lien, for an 930 order to require additional security, reduction of security, 931 change or substitution of sureties, payment of discharge 932 thereof, or any other matter affecting said security. If the 933 court finds that the amount of the deposit or bond in excess of 934 the amount claimed in the claim of lien is insufficient to pay 935 the lienor’s attorneyattorney’sfees and court costs incurred 936 in the action to enforce the lien, the court must increase the 937 amount of the cash deposit or lien transfer bond. Nothing in 938 this section shall be construed to vest exclusive jurisdiction 939 in the circuit courts over transfer bond claims for nonpayment 940 of an amount within the monetary jurisdiction of the county 941 courts. 942 Section 14. Section 713.25, Florida Statutes, is repealed. 943 Section 15. Section 713.29, Florida Statutes, is amended to 944 read: 945 713.29 AttorneyAttorney’sfees.—In any action brought to 946 enforce a lien, including a lien that has been transferred to 947 security, or to enforce a claim against a bond under this part, 948 the prevailing party is entitled to recover a reasonable fee for 949 the services of her or his attorney for trial and appeal or for 950 arbitration, in an amount to be determined by the court, which 951 fee must be taxed as part of the prevailing party’s costs, as 952 allowed in equitable actions. 953 Section 16. Paragraph (b) of subsection (2) and paragraph 954 (e) of subsection (5) of section 95.11, Florida Statutes, are 955 amended to read: 956 95.11 Limitations other than for the recovery of real 957 property.—Actions other than for recovery of real property shall 958 be commenced as follows: 959 (2) WITHIN FIVE YEARS.— 960 (b) A legal or equitable action on a contract, obligation, 961 or liability founded on a written instrument, except for an 962 action to enforce a claim against a payment bond, which shall be 963 governed by the applicable provisions of paragraph (5)(e), s. 964 255.05(9)s. 255.05(10), s. 337.18(1), or s. 713.23(1)(e), and 965 except for an action for a deficiency judgment governed by 966 paragraph (5)(h). 967 (5) WITHIN ONE YEAR.— 968 (e) Except for actions governed by s. 255.05(9)s.969255.05(10), s. 337.18(1), or s. 713.23(1)(e), an action to 970 enforce any claim against a payment bond on which the principal 971 is a contractor, subcontractor, or sub-subcontractor as defined 972 in s. 713.01, for private work as well as public work, from the 973 last furnishing of labor, services, or materials or from the 974 last furnishing of labor, services, or materials by the 975 contractor if the contractor is the principal on a bond on the 976 same construction project, whichever is later. 977 Section 17. This act shall take effect July 1, 2022. 978 979 ================= T I T L E A M E N D M E N T ================ 980 And the title is amended as follows: 981 Delete everything before the enacting clause 982 and insert: 983 A bill to be entitled 984 An act relating to liens and bonds; amending s. 985 255.05, F.S.; revising when a notice of contest of 986 claim against a payment bond and a notice of 987 nonpayment must be served; requiring that a copy of a 988 notice of nonpayment be served on the surety; revising 989 the process for notarizing a notice of nonpayment; 990 removing the authority for a contractor to file an 991 alternative form of security rather than a bond; 992 requiring service of documents to be made in a 993 specified manner; conforming provisions to changes 994 made by the act; making technical changes; amending s. 995 337.18, F.S.; revising when a notice of nonpayment may 996 be served; requiring service of documents to be made 997 in a specified manner; conforming provisions to 998 changes made by the act; amending s. 713.01, F.S.; 999 revising and defining terms; creating s. 713.011, 1000 F.S.; providing for the computation of time for 1001 recording a document or filing an action when certain 1002 time periods fall on specified days or during a 1003 declared state of emergency; providing that certain 1004 orders constitute a state of emergency; specifying 1005 when a clerk’s office is considered closed; amending 1006 s. 713.10, F.S.; revising the extent of certain liens; 1007 amending s. 713.13, F.S.; conforming a cross 1008 reference; revising the process for notarizing a 1009 notice of commencement; amending s. 713.132, F.S.; 1010 revising requirements for a notice of termination; 1011 revising when an owner may record a notice of 1012 termination; specifying when a notice of termination 1013 terminates the notice of commencement; amending s. 1014 713.135, F.S.; defining the term “copy of the notice 1015 of commencement”; providing applicability; making 1016 technical changes; providing that an issuing authority 1017 is not liable for failing to verify that specified 1018 information has been filed; amending s. 713.18, F.S.; 1019 requiring service of documents relating to 1020 construction bonds to be made in a specified manner; 1021 making technical changes; amending s. 713.21, F.S.; 1022 authorizing the full or partial release of a lien 1023 under specified conditions; amending s. 713.22, F.S.; 1024 revising the information required in a notice of 1025 contest of lien; amending s. 713.23, F.S.; requiring 1026 that a copy of a notice of nonpayment be served on the 1027 surety; revising the process for notarizing a notice 1028 of nonpayment under a payment bond; amending s. 1029 713.24, F.S.; revising the amount required in addition 1030 to the deposit or bond that applies toward attorney 1031 fees and costs; requiring the clerk to make a copy of 1032 the deposit or bond used to transfer a lien to other 1033 security and mail it to the lienor; repealing s. 1034 713.25, F.S., relating to applicability of ch. 65-456; 1035 amending s. 713.29, F.S.; authorizing attorney fees in 1036 actions to enforce a lien that has been transferred to 1037 security; amending s. 95.11, F.S.; conforming a cross 1038 reference; providing an effective date.