SB 1272 — Liens and Bonds

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 to rental equipment, later than 90 days after the date that the rental equipment was last on the job site of the improvement available for use.

A notice of nonpayment is fraudulent if the claimant has Page 5 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 A notice of nonpayment is fraudulent if the claimant has willfully exaggerated the amount unpaid, willfully included a claim for work not performed or materials not furnished for the subject improvement, or prepared the notice with such willful and gross negligence as to amount to a willful exaggeration.

for previously furnishing ...(describe labor, services, or Pagematerials)... 6 of 37 CODING:

for this improvement.

Page 6 of 36 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 materials)...3.

for this improvement.

3.

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 (6) All payment bond forms used by a public owner and all payment bonds executed pursuant to this section by a surety shall make reference to this section by number, shall contain reference to the notice and time limitation provisions in subsections (2) and (9) (10), and shall comply with the requirements of paragraph (1)(a).

damage assessments.— (1) (c) A claimant, except a laborer, who is not in privity with the contractor shall, before commencing or not later than 90 days after commencing to furnish labor, materials, or Page 8 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 90 days after commencing to furnish labor, materials, or supplies for the prosecution of the work, furnish the contractor with a notice that he or she intends to look to the bond for protection.

The notice of nonpayment may be served at any time during the progress of the work or thereafter but not before 30 45 days after the first furnishing of labor, services, or materials, and not later than 90 days after the final furnishing of the labor, services, or materials by the claimant or, with respect to rental equipment, not later than 90 days after the date that the rental equipment was last on the job site of the improvement available for use.

713.18,713.18. and provisions for the waiver of a claim or a right to claim against a payment bond as described in s.

713.235 apply to all contracts under this section.

Present subsections (13) through (27) and subsections (28) and (29) of section 713.01, Florida Statutes, are redesignated as subsections (14) through (30),(28) respectively,and asubsections (30) and (31), respectively, new subsectionsubsections (13) isand (29) are added to Pagethat 9section, and subsections (4), (8), and (12) of 37that CODING:section are amended, to read:

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 that713.01 section,Definitions.—As andused subsectionsin (4),this (8),part, andthe (12)term: of that section are amended, to read:

713.01 Definitions.—As used in this part, the term:

Such date may not be measured by other standards, such as the issuance of a certificate of occupancy or the issuance of a certificate of final completion, and does not include the correction of deficiencies in the lienor’s previously performed work or Pagematerials 10supplied. of 37 CODING:

With respect to rental equipment, the term means the date that the rental equipment was last on the job Page 10 of 36 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 materialssite supplied.of the improvement and available for use.

With respect to rentalspecially equipment,fabricated materials, the term means the date that the rentallast equipmentportion wasof lastthe onspecially fabricated materials is delivered to the jobsite of the improvement, or if any portion of the specially fabricated materials is not delivered to the site of the improvement andby availableno forfault use.of the lienor, the term means 90 days after the date the lienor completes the fabrication or 90 days before the expiration of the notice of commencement, whichever is earlier.

With(13) respect“Finance tocharge” specially fabricated materials, the term means thea datecontractually thatspecified theadditional lastamount portion of the specially fabricated materials is delivered to thebe sitepaid ofby the improvement,obligor oron if any portionbalance ofthat theremains speciallyunpaid fabricated materials is not delivered to the site of the improvement by no fault of the lienor,due the term means 9 months after the date theset lienorforth completesin the fabrication,credit 9agreement months after the date the lienor receives the last portion of the specially fabricated materials needed to complete the order, or theother datecontract. the notice of commencement expires, whichever is later.

(13)(29) “Finance“Specially charge”fabricated materials” means amaterials contractuallydesigned specifiedand additionalfabricated amountfor touse bein paida byparticular theimprovement obligorthat onare anynot unpaidgenerally balancesuited iffor theor obligorreadily failsadaptable tofor payuse the entire principal amount to the obligee by the due date set forth in thea creditsimilar agreementimprovement. or other contract.

713.011 Computation of time.— (1) In computing any time period for recording a document or filing an action under this part, if the last day of the time period is a Saturday, Sunday, legal holiday, or any day observed as a holiday by the clerk’s office, the time period is extended to the end of the next business day.

(2) During a state of emergency declared under chapter 252 induring which the clerk’s office is closedclosed, orthe nottime accessibleperiods becausefor ofrecording thea statedocument ofor emergency,filing anyan timeaction periods imposed under this part are tolled.

Upon the expiration of the declared state of emergency, Page 11 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 emergency, the number of days that were remaining for any specifiedsuch time period under this part on the first day of the declared state of emergency shallcommences commence on the first business day after the endexpiration of the declared state of emergency.

(3) AFor purposes of this section, a federal, state, or local governmental order closing or directing the closure of the clerk’s office for any reason constitutes a state of emergency and a clerk’s office is considered closed if it is not accepting documents for purposesrecording ofor thisfiling section.by any means.

Section 713.09, Florida Statutes, is amended to read:

713.09 Single claim of lien.—A lienor may is required to record only one claim of lien covering his or her entire demand against the real property when the amount demanded is for labor or services or material furnished for more than one improvement under the same direct contract or multiple direct contracts.

The single claim of lien is sufficient even though the improvement is for one or more improvements located on separate lots, parcels, or tracts of land.

If materials to be used on one or more improvements on separate lots, parcels, or tracts of land under one direct contract are delivered by a lienor to a place designated by the person with whom the materialman contracted, other than the site of the improvement, the delivery to the place designated is prima facie evidence of delivery to the site of the improvement and incorporation in the improvement.

The single claim of lien may be limited to a part of multiple lots, parcels, or tracts of land and their improvements or may cover all of the lots, parcels, or tracts of land and improvements.

If a In each claim of lien under this section is for multiple direct contracts, the owner under the direct contracts contract must be the same person for all lots, parcels, or tracts of land Page 12 of 37 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2022 SB 1272 5-00887A-22 20221272__ against which a single claim of lien is recorded.

Section 6.

a.Page 12 of 36 CODING:

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Florida Senate - 2022 CS for SB 1272 597-02661-22 20221272c1 a.

Page3. 13 of 37 CODING:

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Florida Senate - 2022 SB 1272 5-00887A-22 20221272__ 3.

Section 7.6.

713.23, shall record a notice of commencement inPage the13 clerk’s office and forthwith post either a certified copy thereof or a notarized statement that the notice of commencement36 hasCODING: been filed for recording along with a copy thereof.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2022 CS for SB 1272 597-02661-22 20221272c1 in the clerk’s office and forthwith post either a certified copy thereof or a notarized statement that the notice of commencement has been filed for recording along with a copy thereof.

The description should include the legal description of the property and also should include the Pagestreet 14address and tax folio number of 37the CODING:property if available or, if there is no street address available, such additional information as will describe the physical location of the real property to be improved.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2022 SB 1272 5-00887A-22 20221272__ street address and tax folio number of the property if available or, if there is no street address available, such additional information as will describe the physical location of the real property to be improved.

4.A lessee who contracts for the improvements is an owner as defined under s.

The713.01 name and address of the lessee, if the A lessee who contracts for the improvements as is an owner as defined in s.

713.01 under s.

5.4.4.

6.5.5.

7.6.6.

8.7.7.

and service upon the person so designated constitutesPage service14 uponof the36 owner.CODING:

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words underlined are additions.

Florida Senate - 2022 CS for SB 1272 597-02661-22 20221272c1 constitutes service upon the owner.

PageCounty 15of.... of 37 CODING:

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words underlined are additions.

Florida Senate - 2022 SB 1272 5-00887A-22 20221272__ County of....

3.a.3.

Owner:

...name and address.....

b.

Owner’s phone number:....

c.b.b.

d.c.c.

Lessee, if the lessee contracted for the improvement:

...(name and address)....

b.

Lessee’s phone number:.....

5.a.

6.5.5.

7.a.6.a.Page 15 of 36 CODING:

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words underlined are additions.

Florida Senate - 2022 CS for SB 1272 597-02661-22 20221272c1 6.a.

8.7.7.

Persons within the State of Florida designated by PageOwner 16upon ofwhom 37notices CODING:or other documents may be served as provided by Section 713.13(1)(a)7., Florida Statutes:

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words underlined are additions.

Florida Senate - 2022 SB 1272 5-00887A-22 20221272__ Owner upon whom notices or other documents may be served as provided by Section 713.13(1)(a)8.

713.13(1)(a)7., Florida Statutes:

9.a.8.a.8.a.

10.9.9.

...(Signatory’sPage Title/Office)...16 of 36 CODING:

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 The...(Signatory’s foregoingTitle/Office)... instrument was acknowledged before me by means of ☐ physical presence or acknowledged before me by means of ☐ online notarization, this ....

The foregoing instrument was acknowledged before me by means of ☐ physical presence or acknowledged before me by means of ☐ online notarization, this ....

Section 8.7.

PresentSubsections subsection(1), (3), and (4) of section 713.132, Florida Statutes, is redesignated as subsection (5) and amended, a new subsection (4) is added to that section, and subsections (1) and (3) of that section are amended,amended to read:

(c) A statement of the date as of which the notice of commencement is terminated, which date may not be earlier than Page30 18days after the notice of 37termination CODING:is recorded.;

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 30(d) daysA afterstatement specifying that the notice applies to all the real property subject to the notice of terminationcommencement isor recorded.;specifying the portion of such real property to which it applies.;

(d) A statement specifying that the notice applies to all the real property subject to the notice of commencement or specifying the portion of such real property to which it applies.;

(5)(4) A notice of termination must be served before Page 1918 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 (5)(4) A notice of termination must be served before recording on each lienor who has a direct contract with the owner and on each lienor who has timely and properly served a notice to owner in accordance with this part before the recording of the notice of termination.

However, if a lienor who began work under the notice of commencement before its termination lacks a direct contract with the owner and timely serves his or her notice to owner after the notice of termination has been recorded, the owner must serve a copy of the notice of termination upon such lienor, and the termination of the notice of commencement as to that lienor is effective 30 days after service of the notice of terminationtermination, if the notice of termination has been served pursuant to paragraph (1)(f) on the contractor and on each lienor who has a direct contract with the owner or who has served a notice to owner.

Section 9.8.

713.135 Notice of commencement and applicability of lien.— (1) When a any person applies for a building permit, the Pageauthority 20issuing ofsuch 37permit CODING:shall:

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 authority(a) issuingPrint suchon the face of each permit shall:card in no less than 14-point, capitalized, boldfaced type:

(a) Print on the face of each permit card in no less than 14-point, capitalized, boldfaced type:

The authority that issues the building permit must obtain from the Department of Business and Professional Regulation the statement required by this paragraph and must mail, deliver by electronic mail or other electronic format or facsimile, or personally deliver that Page 2120 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 other electronic format or facsimile, or personally deliver that statement to the owner or, in a case in which the owner is required to personally appear to obtain the permit, provide that statement to any owner making improvements to real property consisting of a single or multiple family dwelling up to and including four units.

For purposes of this paragraph, the term “copy of the notice of commencement” means a certified copy of the recorded notice of commencement, or a notarized statement that the notice of commencement has been filed for recording, along with a copy thereof, or the clerk’s office official records identifying information that includes the instrument number for the notice of commencement or the number and page of book where the notice of commencement is recorded, as identified Pageby 22the ofclerk. 37 CODING:

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 by1. the clerk.

1.

This subsection does not apply to a direct contract to repair or replace an existing heating or air- Page 2322 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 direct contract to repair or replace an existing heating or air- conditioning system in an amount less than $7,500.

Section 10.9.

337.18, or copies thereof when so permitted or required, unless otherwise specifically provided in Page 2423 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 permitted or required, unless otherwise specifically provided in this part, must be made by one of the following methods:

The person who served the notice maintains a registered or certified mail log that shows the registered or certified mail number issued by the United States Postal Service, the name and address of the person served, and the date stamp of the United States Postal Service confirming the date of Page 2524 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 stamp of the United States Postal Service confirming the date of mailing;

(b) If the address shown in the notice of commencement or any amendment thereto to the notice of commencement, or, in the absence of a notice of commencement, in the building permit application, is incomplete for purposes of mailing or delivery, the person serving the document item may complete the address and properly format it according to United States Postal Service addressing standards using information obtained from the property appraiser or another public record without affecting Pagethe 26validity of 37service CODING:under this section.

Page 25 of 36 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 the(4) validityA document notice served by a lienor on one owner or one partner of servicea underpartnership thisowning section.the real property is deemed served on notice to all owners and partners.

(4)Section A10. document notice served by a lienor on one owner or one partner of a partnership owning the real property is deemed served on notice to all owners and partners.

Section 11.

Upon filing a complaint therefor by any interested party the clerk Page 2726 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 filing a complaint therefor by any interested party the clerk shall issue a summons to the lienor to show cause within 20 days why his or her lien should not be enforced by action or vacated and canceled of record.

Section 12.11.

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 Signed:

Section 13.12.

The required notice satisfies this condition precedent with respect to the payment described in the notice of nonpayment, Page 2928 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 respect to the payment described in the notice of nonpayment, including unpaid finance charges due under the lienor’s contract, and with respect to any other payments which become due to the lienor after the date of the notice of nonpayment.

A notice of nonpayment is fraudulent if the lienor has willfully exaggerated the amount unpaid, willfully included a claim for work not performed or materials not furnished for the subject improvement, or prepared the notice with such willful and gross negligence as to amount Pageto 30a ofwillful 37exaggeration. CODING:

However, a minor mistake or error in Page 29 of 36 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 a notice of nonpayment, or a good faith dispute as to the amount unpaid, does not constitute a willful exaggeration.exaggeration that operates to defeat an otherwise valid claim against the bond.

However, a minor mistake or error in a notice of nonpayment, or a good faith dispute as to the amount unpaid, does not constitute a willful exaggeration that operates to defeat an otherwise valid claim against the bond.

for this improvement in the future (if known), and the corresponding amount expected to become due Pageis 31$.... of 37 CODING:

(if known).

Page 30 of 36 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 isI $....declare that I have read the foregoing Notice of Nonpayment and that the facts stated in it are true to the best of my knowledge and belief.

(if known).

I declare that I have read the foregoing Notice of Nonpayment and that the facts stated in it are true to the best of my knowledge and belief.

An action may not be instituted or prosecuted against the contractor or against the surety on the bond under this section after 1 year from the performance of the labor or Page 3231 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 section after 1 year from the performance of the labor or completion of delivery of the materials and supplies.

The claim of any lienor upon whom the notice is served and who Page 3332 of 3736 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 The claim of any lienor upon whom the notice is served and who fails to institute a suit to enforce his or her claim against the payment bond within 60 days after service of the notice shall be extinguished automatically.

Section 14.13.

Subsections (1) and (2)(3) of section 713.235,713.24, Florida Statutes, are amended to read:

713.235713.24 WaiversTransfer of rightliens to claimsecurity.— against(1) paymentAny bond;lien claimed under this part may be transferred, by any person having an interest in the real property upon which the lien is imposed or the contract under which the lien is claimed, from such real property to other security by either:

forms.—(a) (1)Depositing Whenin the clerk’s office a personsum isof requiredmoney, toor execute(b) Filing in the clerk’s office a waiverbond executed as surety by a surety insurer licensed to do business in this state, either to be in an amount equal to the amount demanded in such claim of hislien, plus interest thereon at the legal rate for 3 years, plus $5,000 $1,000 or her25 rightpercent toof makethe aamount demanded in the claim againstof alien, paymentwhichever bondis providedgreater, underto pursuantapply on any attorney attorney’s fees and court costs that may be taxed in any proceeding to s.enforce said lien.

713.23Such deposit or s.bond shall be conditioned to pay any judgment or decree which may be rendered for the satisfaction of the lien for which such claim of lien was recorded.

713.245,Upon inmaking exchangesuch for,deposit or tofiling inducesuch paymentbond, of,the clerk shall make and record a progresscertificate, payment,which must include a copy of the waiverdeposit mayor bebond inused substantiallyto thetransfer, followingshowing form:Page 33 of 36 CODING:

WAIVER OF RIGHT TO CLAIM AGAINST THE PAYMENT BOND (PROGRESS PAYMENT) The undersigned, in consideration of the sum of $....

hereby waives its right to claim against the payment bond for labor, services, or materials furnished through ...(insert date)..., to ...(insert the name of your customer)...

on the job of ...(insert the name of the owner)..., for improvements to the following described project:

Page 34 of 37 CODING:

Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 (descriptionthe transfer of project)the 989lien Thisfrom waiverthe doesreal notproperty coverto anythe retentionsecurity and shall mail a copy thereof together with a copy of the deposit or anybond labor,used services,to transfer by registered or materialscertified furnishedmail afterto the datelienor specified.named in the claim of lien so transferred, at the address stated therein.

DATEDUpon onfiling ....the certificate of transfer, the real property shall thereupon be released from the lien claimed, and such lien shall be transferred to said security.

...(Lienor)...In the absence of allegations of privity between the lienor and the owner, and subject to any order of the court increasing the amount required for the lien transfer deposit or bond, no other judgment or decree to pay money may be entered by the court against the owner.

By:........The clerk is shall be entitled to a service charge for making and serving the certificate, in the amount of up to $20, from which the clerk shall remit $5 to the Department of Revenue for deposit into the General Revenue Fund.

(2)If Whenthe atransaction personinvolves isthe requiredtransfer toof executemultiple aliens, waiveran additional charge of hisup orto her$10 rightfor toeach makeadditional alien claimshall againstbe acharged, paymentfrom bondwhich providedthe underclerk pursuantshall remit $2.50 to s.the Department of Revenue for deposit into the General Revenue Fund.

713.23For recording the certificate and approving the bond, the clerk shall receive her or his usual statutory service charges as prescribed in s.

713.245,28.24. in exchange for, or to induce payment of, the final payment, the waiver may be in substantially the following form:

WAIVERAny OFnumber RIGHT TO CLAIM AGAINST THE PAYMENT BOND (FINAL PAYMENT) The undersigned, in consideration of theliens finalmay paymentbe intransferred the amount of $...., hereby waives its right to claimone againstsuch thesecurity. payment bond for labor, services, or materials furnished to ...(insert the name of your customer)...

on(3) Any party having an interest in such security or the jobproperty from which the lien was transferred may at any time, and any number of ...(inserttimes, file a complaint in chancery in the namecircuit court of the owner)...,county where such security is deposited, or file a motion in a pending action to enforce a lien, for improvementsan order to therequire followingadditional describedsecurity, project:reduction of security, Page 34 of 36 CODING:

(description of project) DATED on ....

...(Lienor)...

By:........

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Florida Senate - 2022 CS for SB 1272 5-00887A-22597-02661-22 20221272__20221272c1 Sectionchange 15.or substitution of sureties, payment of discharge thereof, or any other matter affecting said security.

SectionIf 713.245,the Floridacourt Statutes,finds that the amount of the deposit or bond in excess of the amount claimed in the claim of lien is repealed.insufficient to pay the lienor’s attorney attorney’s fees and court costs incurred in the action to enforce the lien, the court must increase the amount of the cash deposit or lien transfer bond.

SectionNothing 16.in this section shall be construed to vest exclusive jurisdiction in the circuit courts over transfer bond claims for nonpayment of an amount within the monetary jurisdiction of the county courts.

Section 14.

Section 17.15.

Section 18.16.

(2) WITHIN FIVE YEARS.— (b)Page A35 legal or equitable action on a contract, obligation, or liability founded on a written instrument, except for an action to enforce a claim against a payment bond, which shall be governed by the applicable provisions of paragraph36 (5)(e),CODING: s.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2022 CS for SB 1272 597-02661-22 20221272c1 (b) A legal or equitable action on a contract, obligation, or liability founded on a written instrument, except for an action to enforce a claim against a payment bond, which shall be governed by the applicable provisions of paragraph (5)(e), s.

713.23(1)(e), an action to Pageenforce 36any ofclaim 37against CODING:a payment bond on which the principal is a contractor, subcontractor, or sub-subcontractor as defined in s.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2022 SB 1272 5-00887A-22 20221272__ enforce any claim against a payment bond on which the principal is a contractor, subcontractor, or sub-subcontractor as defined in s.

Section 19.17.

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