Florida Senate - 2022 SB 1272 By Senator Bradley 5-00887A-22 20221272__ 1 A bill to be entitled 2 An act relating to liens and bonds; amending s. 3 255.05, F.S.; revising when a notice of claim against 4 a payment bond and a notice of nonpayment must be 5 served; requiring that a copy of a notice of 6 nonpayment be served on the surety; revising when a 7 notice of nonpayment must be served; revising the 8 process for notarizing a notice of nonpayment; 9 removing the authority for a contractor to file an 10 alternative form of security rather than a bond; 11 requiring service of documents to be made in a 12 specified manner; conforming provisions to changes 13 made by the act; making technical changes; amending s. 14 337.18, F.S.; revising when a notice of nonpayment 15 must be served; providing that certain waivers apply 16 to certain contracts; requiring service of documents 17 to be made in a specified manner; conforming 18 provisions to changes made by the act; amending s. 19 713.01, F.S.; revising and defining terms; creating s. 20 713.011, F.S.; providing for the computation of time 21 when certain time periods fall on specified days or 22 during a declared state of emergency; providing that 23 certain orders constitute a state of emergency; 24 amending s. 713.09, F.S.; authorizing a lienor to 25 record one claim of lien for multiple direct 26 contracts; amending s. 713.10, F.S.; revising the 27 extent of certain liens; amending s. 713.13, F.S.; 28 revising information to be included in a notice of 29 commencement; conforming a cross-reference; revising 30 the process for notarizing a notice of commencement; 31 amending s. 713.132, F.S.; revising requirements for a 32 notice of termination; amending s. 713.135, F.S.; 33 defining the term copy of the notice of 34 commencement; making technical changes; providing 35 that an issuing authority is not liable for failing to 36 verify that specified information has been filed; 37 amending s. 713.18, F.S.; requiring service of 38 documents relating to construction bonds to be made in 39 a specified manner; making technical changes; amending 40 s. 713.21, F.S.; authorizing the full or partial 41 release of a lien under specified conditions; amending 42 s. 713.22, F.S.; revising the information required in 43 a notice of contest of lien; amending s. 713.23, F.S.; 44 requiring that a copy of a notice of nonpayment be 45 served on the surety; revising the process for 46 notarizing a notice of nonpayment under a payment 47 bond; conforming provisions to changes made by the 48 act; amending s. 713.235, F.S.; conforming cross 49 references; making technical changes; repealing s. 50 713.245, F.S., relating to conditional payment bonds; 51 repealing s. 713.25, F.S., relating to applicability 52 of ch. 65-456, Laws of Florida; amending s. 713.29, 53 F.S.; authorizing attorney fees in actions to enforce 54 a lien that has been transferred to security; amending 55 s. 95.11, F.S.; conforming cross-references; providing 56 an effective date. 57 58 Be It Enacted by the Legislature of the State of Florida: 59 60 Section 1.Present subsections (8) through (11) of section 61 255.05, Florida Statutes, are redesignated as subsections (7) 62 through (10), respectively, a new subsection (11) is added to 63 that section, and paragraph (a) of subsection (2) and present 64 subsections (6) and (7) are amended, to read: 65 255.05Bond of contractor constructing public buildings; 66 form; action by claimants. 67 (2)(a)1.If a claimant is no longer furnishing labor, 68 services, or materials on a project, a contractor or the 69 contractors agent or attorney may elect to shorten the time 70 within which an action to enforce any claim against a payment 71 bond must be commenced by recording in the clerks office a 72 notice in substantially the following form: 73 74 NOTICE OF CONTEST OF CLAIM 75 AGAINST PAYMENT BOND 76 77 To: ...(Name and address of claimant)... 78 79 You are notified that the undersigned contests your notice 80 of nonpayment, dated ............, ........, and served on the 81 undersigned on ............, ........, and that the time within 82 which you may file suit to enforce your claim is limited to 60 83 days after the date of service of this notice. 84 85 DATED on ............, ......... 86 87 Signed: ...(Contractor or Attorney)... 88 89 The claim of a claimant upon whom such notice is served and who 90 fails to institute a suit to enforce his or her claim against 91 the payment bond within 60 days after service of such notice is 92 extinguished automatically. The contractor or the contractors 93 attorney shall serve a copy of the notice of contest on to the 94 claimant at the address shown in the notice of nonpayment or 95 most recent amendment thereto and shall certify to such service 96 on the face of the notice and record the notice. 97 2.A claimant, except a laborer, who is not in privity with 98 the contractor shall, before commencing or not later than 45 99 days after commencing to furnish labor, services, or materials 100 for the prosecution of the work, serve the contractor with a 101 written notice that he or she intends to look to the bond for 102 protection. If a certified copy of the recorded payment bond is 103 not provided before commencing work or before recommencing work 104 after a default or abandonment, as required under paragraph 105 (1)(b), then the claimant may serve the contractor with such 106 written notice up to 45 days after the date that the claimant is 107 served with a copy of the bond. A claimant who is not in privity 108 with the contractor and who has not received payment for 109 furnishing his or her labor, services, or materials shall serve 110 a written notice of nonpayment on the contractor and a copy of 111 the notice on the surety. The notice of nonpayment must shall be 112 under oath and served during the progress of the work or 113 thereafter but may not be served earlier than 45 days after the 114 first furnishing of labor, services, or materials by the 115 claimant or later than 90 days after the final furnishing of the 116 labor, services, or materials by the claimant or, with respect 117 to rental equipment, later than 90 days after the date that the 118 rental equipment was last on the job site of the improvement 119 available for use. Any notice of nonpayment served by a claimant 120 who is not in privity with the contractor which includes sums 121 for retainage must specify the portion of the amount claimed for 122 retainage. An action for the labor, services, or materials may 123 not be instituted against the contractor or the surety unless 124 the notice to the contractor and notice of nonpayment have been 125 served, if required by this section. Notices required or 126 permitted under this section must be served in accordance with 127 s. 713.18. A claimant may not waive in advance his or her right 128 to bring an action under the bond against the surety. In any 129 action brought to enforce a claim against a payment bond under 130 this section, the prevailing party is entitled to recover a 131 reasonable fee for the services of his or her attorney for trial 132 and appeal or for arbitration, in an amount to be determined by 133 the court or arbitrator, which fee must be taxed as part of the 134 prevailing partys costs, as allowed in equitable actions. The 135 time periods for service of a notice of nonpayment or for 136 bringing an action against a contractor or a surety are shall be 137 measured from the last day of furnishing labor, services, or 138 materials by the claimant and may not be measured by other 139 standards, such as the issuance of a certificate of occupancy or 140 the issuance of a certificate of substantial completion. The 141 negligent inclusion or omission of any information in the notice 142 of nonpayment that has not prejudiced the contractor or surety 143 does not constitute a default that operates to defeat an 144 otherwise valid bond claim. A claimant who serves a fraudulent 145 notice of nonpayment forfeits his or her rights under the bond. 146 A notice of nonpayment is fraudulent if the claimant has 147 willfully exaggerated the amount unpaid, willfully included a 148 claim for work not performed or materials not furnished for the 149 subject improvement, or prepared the notice with such willful 150 and gross negligence as to amount to a willful exaggeration. 151 However, a minor mistake or error in a notice of nonpayment, or 152 a good faith dispute as to the amount unpaid, does not 153 constitute a willful exaggeration that operates to defeat an 154 otherwise valid claim against the bond. The service of a 155 fraudulent notice of nonpayment is a complete defense to the 156 claimants claim against the bond. The notice of nonpayment 157 under this subparagraph must include the following information, 158 current as of the date of the notice, and must be in 159 substantially the following form: 160 161 NOTICE OF NONPAYMENT 162 163 To: ...(name of contractor and address)... 164 165 ...(name of surety and address)... 166 167 The undersigned claimant notifies you that: 168 1.Claimant has furnished ...(describe labor, services, or 169 materials)... for the improvement of the real property 170 identified as ...(property description).... The corresponding 171 amount unpaid to date is $...., of which $.... is unpaid 172 retainage. 173 2.Claimant has been paid to date the amount of $.... for 174 previously furnishing ...(describe labor, services, or 175 materials)... for this improvement. 176 3.Claimant expects to furnish ...(describe labor, 177 services, or materials)... for this improvement in the future 178 (if known), and the corresponding amount expected to become due 179 is $.... (if known). 180 181 I declare that I have read the foregoing Notice of Nonpayment 182 and that the facts stated in it are true to the best of my 183 knowledge and belief. 184 185 DATED on ............, ......... 186 187 ...(signature and address of claimant)... 188 189 STATE OF FLORIDA 190 COUNTY OF ........ 191 192 The foregoing instrument was sworn to (or affirmed) and 193 subscribed before me by means of physical presence or sworn to 194 (or affirmed) by online notarization this .... day of ...., 195 ...(year)..., by ...(name of signatory).... 196 197 ...(Signature of Notary Public - State of Florida)... 198 ...(Print, Type, or Stamp Commissioned Name of Notary 199 Public)... 200 201 Personally Known ........ OR Produced Identification ........ 202 203 Type of Identification Produced................................. 204 205 (6)All payment bond forms used by a public owner and all 206 payment bonds executed pursuant to this section by a surety 207 shall make reference to this section by number, shall contain 208 reference to the notice and time limitation provisions in 209 subsections (2) and (9) (10), and shall comply with the 210 requirements of paragraph (1)(a). 211 (7)In lieu of the bond required by this section, a 212 contractor may file with the state, county, city, or other 213 political authority an alternative form of security in the form 214 of cash, a money order, a certified check, a cashiers check, an 215 irrevocable letter of credit, or a security of a type listed in 216 part II of chapter 625. Any such alternative form of security 217 shall be for the same purpose and be subject to the same 218 conditions as those applicable to the bond required by this 219 section. The determination of the value of an alternative form 220 of security shall be made by the appropriate state, county, 221 city, or other political subdivision. 222 (11)Unless otherwise provided in this section, service of 223 any document must be made in accordance with s. 713.18. 224 Section 2.Paragraph (c) of subsection (1) of section 225 337.18, Florida Statutes, is amended, and subsection (6) is 226 added to that section, to read: 227 337.18Surety bonds for construction or maintenance 228 contracts; requirement with respect to contract award; bond 229 requirements; defaults; damage assessments. 230 (1) 231 (c)A claimant, except a laborer, who is not in privity 232 with the contractor shall, before commencing or not later than 233 90 days after commencing to furnish labor, materials, or 234 supplies for the prosecution of the work, furnish the contractor 235 with a notice that he or she intends to look to the bond for 236 protection. A claimant who is not in privity with the contractor 237 and who has not received payment for his or her labor, 238 materials, or supplies shall deliver to the contractor and to 239 the surety written notice of the performance of the labor or 240 delivery of the materials or supplies and of the nonpayment. The 241 notice of nonpayment may be served at any time during the 242 progress of the work or thereafter but not before 45 days after 243 the first furnishing of labor, services, or materials, and not 244 later than 90 days after the final furnishing of the labor, 245 services, or materials by the claimant or, with respect to 246 rental equipment, not later than 90 days after the date that the 247 rental equipment was last on the job site of the improvement 248 available for use. An action by a claimant, except a laborer, 249 who is not in privity with the contractor for the labor, 250 materials, or supplies may not be instituted against the 251 contractor or the surety unless both notices have been given. 252 Written notices required or permitted under this section must 253 may be served in accordance with any manner provided in s. 254 713.18, and provisions for the waiver of a claim or a right to 255 claim against a payment bond as described in s. 713.235 apply to 256 all contracts under this section. 257 (6)Unless otherwise provided in this section, service of 258 any document must be made in accordance with s. 713.18. 259 Section 3.Present subsections (13) through (29) of section 260 713.01, Florida Statutes, are redesignated as subsections (14) 261 through (30), respectively, a new subsection (13) is added to 262 that section, and subsections (4), (8), and (12) of that section 263 are amended, to read: 264 713.01Definitions.As used in this part, the term: 265 (4)Clerks office means the office of the clerk of the 266 circuit court of the county, or another office serving as the 267 county recorder as provided by law, in which the real property 268 is located. 269 (8)Contractor means a person other than a materialman or 270 laborer who enters into a contract with the owner of real 271 property for improving it, or who takes over from a contractor 272 as so defined the entire remaining work under such contract. The 273 term contractor includes an architect, landscape architect, or 274 engineer who improves real property pursuant to a design-build 275 contract authorized by s. 489.103(16). The term also includes a 276 licensed general contractor or building contractor, as those 277 terms are defined in s. 489.105(3)(a) and (b), respectively, who 278 provides construction management services, which include 279 scheduling and coordinating both preconstruction and 280 construction phases for the successful, timely, and economical 281 completion of the construction project or who provides program 282 management services, which include schedule control, cost 283 control, and coordination in providing or procuring planning, 284 design, and construction. 285 (12)Final furnishing means the last date that the lienor 286 furnishes labor, services, or materials. Such date may not be 287 measured by other standards, such as the issuance of a 288 certificate of occupancy or the issuance of a certificate of 289 final completion, and does not include the correction of 290 deficiencies in the lienors previously performed work or 291 materials supplied. With respect to rental equipment, the term 292 means the date that the rental equipment was last on the job 293 site of the improvement and available for use. With respect to 294 specially fabricated materials, the term means the date that the 295 last portion of the specially fabricated materials is delivered 296 to the site of the improvement, or if any portion of the 297 specially fabricated materials is not delivered to the site of 298 the improvement by no fault of the lienor, the term means 9 299 months after the date the lienor completes the fabrication, 9 300 months after the date the lienor receives the last portion of 301 the specially fabricated materials needed to complete the order, 302 or the date the notice of commencement expires, whichever is 303 later. 304 (13)Finance charge means a contractually specified 305 additional amount to be paid by the obligor on any unpaid 306 balance if the obligor fails to pay the entire principal amount 307 to the obligee by the due date set forth in the credit agreement 308 or other contract. 309 Section 4.Section 713.011, Florida Statutes, is created to 310 read: 311 713.011Computation of time. 312 (1)In computing any time period under this part, if the 313 last day of the time period is a Saturday, Sunday, legal 314 holiday, or any day observed as a holiday by the clerks office, 315 the time period is extended to the end of the next business day. 316 (2)During a state of emergency declared under chapter 252 317 in which the clerks office is closed or not accessible because 318 of the state of emergency, any time periods imposed under this 319 part are tolled. Upon the expiration of the declared state of 320 emergency, the number of days that were remaining for any 321 specified time period under this part on the first day of the 322 declared state of emergency shall commence on the first business 323 day after the end of the declared state of emergency. 324 (3)A federal, state, or local governmental order closing 325 or directing the closure of the clerks office for any reason 326 constitutes a state of emergency for purposes of this section. 327 Section 5.Section 713.09, Florida Statutes, is amended to 328 read: 329 713.09Single claim of lien.A lienor may is required to 330 record only one claim of lien covering his or her entire demand 331 against the real property when the amount demanded is for labor 332 or services or material furnished for more than one improvement 333 under the same direct contract or multiple direct contracts. The 334 single claim of lien is sufficient even though the improvement 335 is for one or more improvements located on separate lots, 336 parcels, or tracts of land. If materials to be used on one or 337 more improvements on separate lots, parcels, or tracts of land 338 under one direct contract are delivered by a lienor to a place 339 designated by the person with whom the materialman contracted, 340 other than the site of the improvement, the delivery to the 341 place designated is prima facie evidence of delivery to the site 342 of the improvement and incorporation in the improvement. The 343 single claim of lien may be limited to a part of multiple lots, 344 parcels, or tracts of land and their improvements or may cover 345 all of the lots, parcels, or tracts of land and improvements. If 346 a In each claim of lien under this section is for multiple 347 direct contracts, the owner under the direct contracts contract 348 must be the same person for all lots, parcels, or tracts of land 349 against which a single claim of lien is recorded. 350 Section 6.Paragraph (b) of subsection (2) of section 351 713.10, Florida Statutes, is amended, and subsection (4) is 352 added to that section, to read: 353 713.10Extent of liens. 354 (2) 355 (b)The interest of the lessor is not subject to liens for 356 improvements made by the lessee when: 357 1.The lease, or a short form or a memorandum of the lease 358 that contains the specific language in the lease prohibiting 359 such liability, is recorded in the official records of the 360 county where the premises are located before the recording of a 361 notice of commencement for improvements to the premises and the 362 terms of the lease expressly prohibit such liability; or 363 2.The terms of the lease expressly prohibit such 364 liability, and a notice advising that leases for the rental of 365 premises on a parcel of land prohibit such liability has been 366 recorded in the official records of the county in which the 367 parcel of land is located before the recording of a notice of 368 commencement for improvements to the premises, and the notice 369 includes the following: 370 a.The name of the lessor. 371 b.The legal description of the parcel of land to which the 372 notice applies. 373 c.The specific language contained in the various leases 374 prohibiting such liability. 375 d.A statement that all or a majority of the leases entered 376 into for premises on the parcel of land expressly prohibit such 377 liability. 378 3.The lessee is a mobile home owner who is leasing a 379 mobile home lot in a mobile home park from the lessor. 380 381 A notice that is consistent with subparagraph 2. effectively 382 prohibits liens for improvements made by a lessee even if other 383 leases for premises on the parcel do not expressly prohibit 384 liens or if provisions of each lease restricting the application 385 of liens are not identical. 386 (4)The interest of the lessor is not subject to liens for 387 improvements made by the lessee when the lessee is a mobile home 388 owner who is leasing a mobile home lot in a mobile home park 389 from the lessor. 390 Section 7.Paragraphs (a) and (d) of subsection (1) of 391 section 713.13, Florida Statutes, are amended to read: 392 713.13Notice of commencement. 393 (1)(a)Except for an improvement that is exempt under 394 pursuant to s. 713.02(5), an owner or the owners authorized 395 agent before actually commencing to improve any real property, 396 or recommencing completion of any improvement after default or 397 abandonment, whether or not a project has a payment bond 398 complying with s. 713.23, shall record a notice of commencement 399 in the clerks office and forthwith post either a certified copy 400 thereof or a notarized statement that the notice of commencement 401 has been filed for recording along with a copy thereof. The 402 notice of commencement shall contain all of the following 403 information: 404 1.A description sufficient for identification of the real 405 property to be improved. The description should include the 406 legal description of the property and also should include the 407 street address and tax folio number of the property if available 408 or, if there is no street address available, such additional 409 information as will describe the physical location of the real 410 property to be improved. 411 2.A general description of the improvement. 412 3.The name and address of the owner, the owners interest 413 in the site of the improvement, and the name and address of the 414 fee simple titleholder, if other than such owner. 415 4.The name and address of the lessee, if the A lessee who 416 contracts for the improvements as is an owner as defined in s. 417 713.01 under s. 713.01(23) and must be listed as the owner 418 together with a statement that the ownership interest is a 419 leasehold interest. 420 5.4.The name and address of the contractor. 421 6.5.The name and address of the surety on the payment bond 422 under s. 713.23, if any, and the amount of such bond. 423 7.6.The name and address of any person making a loan for 424 the construction of the improvements. 425 8.7.The name and address within the state of a person 426 other than himself or herself who may be designated by the owner 427 as the person upon whom notices or other documents may be served 428 under this part; and service upon the person so designated 429 constitutes service upon the owner. 430 (d)A notice of commencement must be in substantially the 431 following form: 432 433 Permit No..... Tax Folio No..... 434 NOTICE OF COMMENCEMENT 435 State of.... 436 County of.... 437 438 The undersigned hereby gives notice that improvement will be 439 made to certain real property, and in accordance with Chapter 440 713, Florida Statutes, the following information is provided in 441 this Notice of Commencement. 442 1.Description of property: ...(legal description of the 443 property, and street address if available).... 444 2.General description of improvement:..... 445 3.a.Owner: ...name and address..... 446 b.Owners phone number:.... Owner information or Lessee 447 information if the Lessee contracted for the improvement: 448 a.Name and address:..... 449 c.b.Interest in property:..... 450 d.c.Name and address of fee simple titleholder (if 451 different from Owner listed above):..... 452 4.a.Lessee, if the lessee contracted for the improvement: 453 ...(name and address).... 454 b.Lessees phone number:..... 455 5.a.Contractor: ...(name and address).... 456 b.Contractors phone number:..... 457 6.5.Surety (if applicable, a copy of the payment bond is 458 attached): 459 a.Name and address:..... 460 b.Phone number:..... 461 c.Amount of bond: $..... 462 7.a.6.a.Lender: ...(name and address).... 463 b.Lenders phone number:..... 464 8.7.Persons within the State of Florida designated by 465 Owner upon whom notices or other documents may be served as 466 provided by Section 713.13(1)(a)8. 713.13(1)(a)7., Florida 467 Statutes: 468 a.Name and address:..... 469 b.Phone numbers of designated persons:..... 470 9.a.8.a.In addition to himself or herself, Owner 471 designates ............ of ............ to receive a copy of the 472 Lienors Notice as provided in Section 713.13(1)(b), Florida 473 Statutes. 474 b.Phone number of person or entity designated by 475 owner:..... 476 10.9.Expiration date of notice of commencement (the 477 expiration date will be 1 year after from the date of recording 478 unless a different date is specified)..... 479 480 WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE 481 EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER 482 PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA 483 STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS 484 TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND 485 POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU 486 INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN 487 ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF 488 COMMENCEMENT. 489 490 ...(Signature of Owner or Lessee, or Owners or Lessees 491 Authorized Officer/Director/Partner/Manager)... 492 493 ...(Signatorys Title/Office)... 494 495 The foregoing instrument was acknowledged before me by means of 496 physical presence or acknowledged before me by means of 497 online notarization, this .... day of ...., ...(year)..., by 498 ...(name of person)... as ...(type of authority, . . . e.g. 499 officer, trustee, attorney in fact)... for ...(name of party on 500 behalf of whom instrument was executed).... 501 502 ...(Signature of Notary Public - State of Florida)... 503 504 ...(Print, Type, or Stamp Commissioned Name of Notary Public)... 505 506 Personally Known .... OR Produced Identification .... 507 508 Type of Identification Produced............ 509 Section 8.Present subsection (4) of section 713.132, 510 Florida Statutes, is redesignated as subsection (5) and amended, 511 a new subsection (4) is added to that section, and subsections 512 (1) and (3) of that section are amended, to read: 513 713.132Notice of termination. 514 (1)An owner may terminate the period of effectiveness of a 515 notice of commencement by executing, swearing to, and recording 516 a notice of termination that contains all of the following: 517 (a)The same information as the notice of commencement.; 518 (b)The official records recording office document book 519 and page reference numbers and recording date affixed by the 520 recording office on of the recorded notice of commencement.; 521 (c)A statement of the date as of which the notice of 522 commencement is terminated, which date may not be earlier than 523 30 days after the notice of termination is recorded.; 524 (d)A statement specifying that the notice applies to all 525 the real property subject to the notice of commencement or 526 specifying the portion of such real property to which it 527 applies.; 528 (e)A statement that all lienors have been paid in full.; 529 and 530 (f)A statement that the owner has, before recording the 531 notice of termination, served a copy of the notice of 532 termination on the contractor and on each lienor who has a 533 direct contract with the owner or who has timely served a notice 534 to owner, and a statement that the owner will serve a copy of 535 the notice of termination on each lienor who timely serves a 536 notice to owner after the notice of termination has been 537 recorded. The owner is not required to serve a copy of the 538 notice of termination on any lienor who has executed a waiver 539 and release of lien upon final payment in accordance with s. 540 713.20. 541 (3)An owner may not record a notice of termination at any 542 time after except after completion of construction, or after 543 construction ceases before completion and all lienors have been 544 paid in full or pro rata in accordance with s. 713.06(4). 545 (4)If an owner or a contractor, by fraud or collusion, 546 knowingly makes any fraudulent statement or affidavit in a 547 notice of termination or any accompanying affidavit, the owner 548 and the contractor, or either of them, as the case may be, is 549 liable to any lienor who suffers damages as a result of the 550 filing of the fraudulent notice of termination,; and any such 551 lienor has a right of action for damages occasioned thereby. 552 (5)(4)A notice of termination must be served before 553 recording on each lienor who has a direct contract with the 554 owner and on each lienor who has timely and properly served a 555 notice to owner in accordance with this part before the 556 recording of the notice of termination. A notice of termination 557 must be recorded in the official records of the county in which 558 the improvement is located. If properly served before recording 559 in accordance with this subsection, the notice of termination 560 terminates the period of effectiveness of the notice of 561 commencement 30 days after the notice of termination is recorded 562 in the official records is effective to terminate the notice of 563 commencement at the later of 30 days after recording of the 564 notice of termination or a later the date stated in the notice 565 of termination as the date on which the notice of commencement 566 is terminated. However, if a lienor who began work under the 567 notice of commencement before its termination lacks a direct 568 contract with the owner and timely serves his or her notice to 569 owner after the notice of termination has been recorded, the 570 owner must serve a copy of the notice of termination upon such 571 lienor, and the termination of the notice of commencement as to 572 that lienor is effective 30 days after service of the notice of 573 termination if the notice of termination has been served 574 pursuant to paragraph (1)(f) on the contractor and on each 575 lienor who has a direct contract with the owner or who has 576 served a notice to owner. 577 Section 9.Subsections (1) and (3) of section 713.135, 578 Florida Statutes, are amended to read: 579 713.135Notice of commencement and applicability of lien. 580 (1)When a any person applies for a building permit, the 581 authority issuing such permit shall: 582 (a)Print on the face of each permit card in no less than 583 14-point, capitalized, boldfaced type: WARNING TO OWNER: YOUR 584 FAILURE TO RECORD A NOTICE OF COMMENCEMENT MAY RESULT IN YOUR 585 PAYING TWICE FOR IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF 586 COMMENCEMENT MUST BE RECORDED AND POSTED ON THE JOB SITE BEFORE 587 THE FIRST INSPECTION. IF YOU INTEND TO OBTAIN FINANCING, CONSULT 588 WITH YOUR LENDER OR AN ATTORNEY BEFORE RECORDING YOUR NOTICE OF 589 COMMENCEMENT. 590 (b)Provide the applicant and the owner of the real 591 property upon which improvements are to be constructed with a 592 printed statement stating that the right, title, and interest of 593 the person who has contracted for the improvement may be subject 594 to attachment under the Construction Lien Law. The Department of 595 Business and Professional Regulation shall furnish, for 596 distribution, the statement described in this paragraph, and the 597 statement must be a summary of the Construction Lien Law and 598 must include an explanation of the provisions of the 599 Construction Lien Law relating to the recording, and the posting 600 of copies, of notices of commencement and a statement 601 encouraging the owner to record a notice of commencement and 602 post a copy of the notice of commencement in accordance with s. 603 713.13. The statement must also contain an explanation of the 604 owners rights if a lienor fails to furnish the owner with a 605 notice as provided in s. 713.06(2) and an explanation of the 606 owners rights as provided in s. 713.22. The authority that 607 issues the building permit must obtain from the Department of 608 Business and Professional Regulation the statement required by 609 this paragraph and must mail, deliver by electronic mail or 610 other electronic format or facsimile, or personally deliver that 611 statement to the owner or, in a case in which the owner is 612 required to personally appear to obtain the permit, provide that 613 statement to any owner making improvements to real property 614 consisting of a single or multiple family dwelling up to and 615 including four units. However, the failure by the authorities to 616 provide the summary does not subject the issuing authority to 617 liability. 618 (c)In addition to providing the owner with the statement 619 as required by paragraph (b), inform each applicant who is not 620 the person whose right, title, and interest is subject to 621 attachment that, as a condition to the issuance of a building 622 permit, the applicant must promise in good faith that the 623 statement will be delivered to the person whose property is 624 subject to attachment. 625 (d)Furnish to the applicant two or more copies of a form 626 of notice of commencement conforming with s. 713.13. 627 (e)Require If the direct contract is greater than $2,500, 628 the applicant to shall file with the issuing authority before 629 prior to the first inspection either a certified copy of the 630 recorded notice of commencement if the direct contract is 631 greater than $2,500. For purposes of this paragraph, the term 632 copy of the notice of commencement means a certified copy of 633 the recorded notice of commencement, or a notarized statement 634 that the notice of commencement has been filed for recording, 635 along with a copy thereof, or the clerks office official 636 records identifying information that includes the instrument 637 number for the notice of commencement or the number and page of 638 book where the notice of commencement is recorded, as identified 639 by the clerk. 640 1.In the absence of the filing of a certified copy of the 641 recorded notice of commencement, the issuing authority or a 642 private provider performing inspection services may not perform 643 or approve subsequent inspections until the applicant files by 644 mail, facsimile, hand delivery, or any other means such 645 certified copy with the issuing authority. 646 2.The certified copy of the notice of commencement must 647 contain the name and address of the owner, the name and address 648 of the contractor, and the location or address of the property 649 being improved. The issuing authority shall verify that the name 650 and address of the owner, the name of the contractor, and the 651 location or address of the property being improved which is 652 contained in the certified copy of the notice of commencement is 653 consistent with the information in the building permit 654 application. 655 3.The issuing authority shall provide the recording 656 information on the certified copy of the recorded notice of 657 commencement to any person upon request. 658 4.This subsection does not require the recording of a 659 notice of commencement before prior to the issuance of a 660 building permit. If a local government requires a separate 661 permit or inspection for installation of temporary electrical 662 service or other temporary utility service, land clearing, or 663 other preliminary site work, such permits may be issued and such 664 inspections may be conducted without providing the issuing 665 authority with a certified copy of the a recorded notice of 666 commencement or a notarized statement regarding a recorded 667 notice of commencement. This subsection does not apply to a 668 direct contract to repair or replace an existing heating or air 669 conditioning system in an amount less than $7,500. 670 (f)(e)Not require that a notice of commencement be 671 recorded as a condition of the application for, or processing or 672 issuance of, a building permit. However, this paragraph does not 673 modify or waive the inspection requirements set forth in this 674 subsection. 675 676 This subsection does not apply to a direct contract to repair or 677 replace an existing heating or air-conditioning system in an 678 amount less than $7,500. 679 (3)An issuing authority under subsection (1) is not liable 680 in any civil action for the failure to verify that a certified 681 copy of the recorded notice of commencement, a notarized 682 statement that the notice of commencement has been filed for 683 recording along with a copy thereof, or the clerks office 684 official records identifying information that includes the 685 instrument number for the notice of commencement or the number 686 and page of book where the notice of commencement is recorded, 687 as identified by the clerk, has been filed in accordance with 688 this section. 689 Section 10.Section 713.18, Florida Statutes, is amended to 690 read: 691 713.18Manner of serving documents notices and other 692 instruments. 693 (1)Unless otherwise specifically provided by law, service 694 of any document notices, claims of lien, affidavits, 695 assignments, and other instruments permitted or required under 696 this part, s. 255.05, or s. 337.18, or copies thereof when so 697 permitted or required, unless otherwise specifically provided in 698 this part, must be made by one of the following methods: 699 (a)By hand actual delivery to the person to be served; if 700 a partnership, to one of the partners; if a corporation, to an 701 officer, director, managing agent, or business agent; or, if a 702 limited liability company, to a member or manager. 703 (b)By common carrier delivery service or by registered, 704 Global Express Guaranteed, or certified mail to the person to be 705 served, with postage or shipping paid by the sender and with 706 evidence of delivery, which may be in an electronic format. 707 (c)By posting on the site of the improvement if service as 708 provided by paragraph (a) or paragraph (b) cannot be 709 accomplished. 710 (2)Notwithstanding subsection (1), service of a notice to 711 owner or a preliminary notice to contractor under this part, s. 712 255.05, or s. 337.18, or s. 713.23 is effective as of the date 713 of mailing and the requirements for service under this section 714 have been satisfied if all of the following requirements have 715 been met: 716 (a)The notice is mailed by registered, Global Express 717 Guaranteed, or certified mail, with postage prepaid, to the 718 person to be served and addressed as prescribed at any of the 719 addresses set forth in subsection (3).; 720 (b)The notice is mailed within 40 days after the date the 721 lienor first furnishes labor, services, or materials.; and 722 (c)1.The person who served the notice maintains a 723 registered or certified mail log that shows the registered or 724 certified mail number issued by the United States Postal 725 Service, the name and address of the person served, and the date 726 stamp of the United States Postal Service confirming the date of 727 mailing; or 728 2.The person who served the notice maintains electronic 729 tracking records approved or generated by the United States 730 Postal Service containing the postal tracking number, the name 731 and address of the person served, and verification of the date 732 of receipt by the United States Postal Service. 733 (3)(a)Notwithstanding subsection (1), service of a 734 document under an instrument pursuant to this section is 735 effective on the date of mailing or shipping, and the 736 requirements for service under this section have been satisfied, 737 the instrument if the document it: 738 1.Is sent to the last address shown in the notice of 739 commencement or any amendment thereto or, in the absence of a 740 notice of commencement, to the last address shown in the 741 building permit application, or to the last known address of the 742 person to be served.; and 743 2.Is returned as being refused, moved, not 744 forwardable, or unclaimed, or is otherwise not delivered or 745 deliverable through no fault of the person serving the document 746 item. 747 (b)If the address shown in the notice of commencement or 748 any amendment thereto to the notice of commencement, or, in the 749 absence of a notice of commencement, in the building permit 750 application, is incomplete for purposes of mailing or delivery, 751 the person serving the document item may complete the address 752 and properly format it according to United States Postal Service 753 addressing standards using information obtained from the 754 property appraiser or another public record without affecting 755 the validity of service under this section. 756 (4)A document notice served by a lienor on one owner or 757 one partner of a partnership owning the real property is deemed 758 served on notice to all owners and partners. 759 Section 11.Section 713.21, Florida Statutes, is amended to 760 read: 761 713.21Discharge of lien.A lien properly perfected under 762 this chapter may be discharged, or released in whole or in part, 763 by any of the following methods: 764 (1)By entering satisfaction of the lien upon the margin of 765 the record thereof in the clerks office when not otherwise 766 prohibited by law. This satisfaction shall be signed by the 767 lienor, the lienors agent or attorney and attested by said 768 clerk. Any person who executes a claim of lien has shall have 769 authority to execute a satisfaction in the absence of actual 770 notice of lack of authority to any person relying on the same. 771 (2)By the satisfaction or release of the lienor, duly 772 acknowledged and recorded in the clerks office. The 773 satisfaction or release must include the lienors notarized 774 signature and set forth the official records reference numbers 775 and recording date affixed by the recording office on the 776 subject lien. Any person who executes a claim of lien has shall 777 have authority to execute a satisfaction or release in the 778 absence of actual notice of lack of authority to any person 779 relying on the same. 780 (3)By failure to begin an action to enforce the lien 781 within the time prescribed in this part. 782 (4)By an order of the circuit court of the county where 783 the property is located, as provided in this subsection. Upon 784 filing a complaint therefor by any interested party the clerk 785 shall issue a summons to the lienor to show cause within 20 days 786 why his or her lien should not be enforced by action or vacated 787 and canceled of record. Upon failure of the lienor to show cause 788 why his or her lien should not be enforced or the lienors 789 failure to commence such action before the return date of the 790 summons the court shall forthwith order cancellation of the 791 lien. 792 (5)By recording in the clerks office the original or a 793 certified copy of a judgment or decree of a court of competent 794 jurisdiction showing a final determination of the action. 795 Section 12.Subsection (2) of section 713.22, Florida 796 Statutes, is amended to read: 797 713.22Duration of lien. 798 (2)An owner or the owners attorney may elect to shorten 799 the time prescribed in subsection (1) within which to commence 800 an action to enforce any claim of lien or claim against a bond 801 or other security under s. 713.23 or s. 713.24 by recording in 802 the clerks office a notice in substantially the following form: 803 804 NOTICE OF CONTEST OF LIEN 805 To: ...(Name and address of lienor)... 806 807 You are notified that the undersigned contests the claim of lien 808 filed by you on ...., ...(year)..., and recorded in .... Book 809 ...., Page ...., of the public records of .... County, Florida, 810 and that the time within which you may file suit to enforce your 811 lien is limited to 60 days from the date of service of this 812 notice. This .... day of ...., ...(year).... 813 814 Signed: ...(Owner or Attorney)... 815 816 The lien of any lienor upon whom such recorded notice is served 817 and who fails to institute a suit to enforce his or her lien 818 within 60 days after service of such recorded notice shall be 819 extinguished automatically. The clerk shall serve, in accordance 820 with s. 713.18, a copy of the recorded notice of contest to the 821 lien claimant at the address shown in the claim of lien or most 822 recent amendment thereto and shall certify to such service and 823 the date of service on the face of the notice and record the 824 notice. 825 Section 13.Paragraphs (d) and (e) of subsection (1) of 826 section 713.23, Florida Statutes, are amended to read: 827 713.23Payment bond. 828 (1) 829 (d)In addition, a lienor who has not received payment for 830 furnishing his or her labor, services, or materials must, as a 831 condition precedent to recovery under the bond, serve a written 832 notice of nonpayment on to the contractor and a copy of the 833 notice on the surety. The notice must be under oath and served 834 during the progress of the work or thereafter, but may not be 835 served later than 90 days after the final furnishing of labor, 836 services, or materials by the lienor, or, with respect to rental 837 equipment, later than 90 days after the date the rental 838 equipment was on the job site of the improvement and available 839 for use. A notice of nonpayment that includes sums for retainage 840 must specify the portion of the amount claimed for retainage. 841 The required notice satisfies this condition precedent with 842 respect to the payment described in the notice of nonpayment, 843 including unpaid finance charges due under the lienors 844 contract, and with respect to any other payments which become 845 due to the lienor after the date of the notice of nonpayment. 846 The time period for serving a notice of nonpayment is shall be 847 measured from the last day of furnishing labor, services, or 848 materials by the lienor and may not be measured by other 849 standards, such as the issuance of a certificate of occupancy or 850 the issuance of a certificate of substantial completion. The 851 failure of a lienor to receive retainage sums not in excess of 852 10 percent of the value of labor, services, or materials 853 furnished by the lienor is not considered a nonpayment requiring 854 the service of the notice provided under this paragraph. If the 855 payment bond is not recorded before commencement of 856 construction, the time period for the lienor to serve a notice 857 of nonpayment may, at the option of the lienor, be calculated 858 from the date specified in this section or the date the lienor 859 is served a copy of the bond. However, the limitation period for 860 commencement of an action on the payment bond as established in 861 paragraph (e) may not be expanded. The negligent inclusion or 862 omission of any information in the notice of nonpayment that has 863 not prejudiced the contractor or surety does not constitute a 864 default that operates to defeat an otherwise valid bond claim. A 865 lienor who serves a fraudulent notice of nonpayment forfeits his 866 or her rights under the bond. A notice of nonpayment is 867 fraudulent if the lienor has willfully exaggerated the amount 868 unpaid, willfully included a claim for work not performed or 869 materials not furnished for the subject improvement, or prepared 870 the notice with such willful and gross negligence as to amount 871 to a willful exaggeration. However, a minor mistake or error in 872 a notice of nonpayment, or a good faith dispute as to the amount 873 unpaid, does not constitute a willful exaggeration that operates 874 to defeat an otherwise valid claim against the bond. The service 875 of a fraudulent notice of nonpayment is a complete defense to 876 the lienors claim against the bond. The notice under this 877 paragraph must include the following information, current as of 878 the date of the notice, and must be in substantially the 879 following form: 880 881 NOTICE OF NONPAYMENT 882 883 To ...(name of contractor and address)... 884 885 ...(name of surety and address)... 886 887 The undersigned lienor notifies you that: 888 889 1.The lienor has furnished ...(describe labor, services, 890 or materials)... for the improvement of the real property 891 identified as ...(property description).... The corresponding 892 amount unpaid to date is $...., of which $.... is unpaid 893 retainage. 894 2.The lienor has been paid to date the amount of $.... for 895 previously furnishing ...(describe labor, services, or 896 materials)... for this improvement. 897 3.The lienor expects to furnish ...(describe labor, 898 services, or materials)... for this improvement in the future 899 (if known), and the corresponding amount expected to become due 900 is $.... (if known). 901 902 I declare that I have read the foregoing Notice of Nonpayment 903 and that the facts stated in it are true to the best of my 904 knowledge and belief. 905 906 DATED on ............, ......... 907 908 ...(signature and address of lienor)... 909 910 STATE OF FLORIDA 911 COUNTY OF........ 912 913 The foregoing instrument was sworn to (or affirmed) and 914 subscribed before me by means of physical presence or sworn to 915 (or affirmed) by online notarization, this .... day of ...., 916 ...(year)..., by ...(name of signatory).... 917 ...(Signature of Notary Public - State of Florida)... 918 ...(Print, Type, or Stamp Commissioned Name of Notary 919 Public)... 920 921 Personally Known ........ OR Produced Identification ........ 922 923 Type of Identification Produced................................. 924 (e)An action for the labor, or materials, or supplies may 925 not be instituted or prosecuted against the contractor or surety 926 unless both notices have been given, if required by this 927 section. An action may not be instituted or prosecuted against 928 the contractor or against the surety on the bond under this 929 section after 1 year from the performance of the labor or 930 completion of delivery of the materials and supplies. The time 931 period for bringing an action against the contractor or surety 932 on the bond is shall be measured from the last day of furnishing 933 labor, services, or materials by the lienor. The time period may 934 not be measured by other standards, such as the issuance of a 935 certificate of occupancy or the issuance of a certificate of 936 substantial completion. A contractor or the contractors 937 attorney may elect to shorten the time within which an action to 938 enforce any claim against a payment bond provided under this 939 section or s. 713.245 must be commenced at any time after a 940 notice of nonpayment, if required, has been served for the claim 941 by recording in the clerks office a notice in substantially the 942 following form: 943 944 NOTICE OF CONTEST OF CLAIM 945 AGAINST PAYMENT BOND 946 947 To: ...(Name and address of lienor)... 948 You are notified that the undersigned contests your notice 949 of nonpayment, dated ...., ...., and served on the undersigned 950 on ...., ...., and that the time within which you may file suit 951 to enforce your claim is limited to 60 days after from the date 952 of service of this notice. 953 954 DATED on ...., ..... 955 956 Signed: ...(Contractor or Attorney)... 957 958 The claim of any lienor upon whom the notice is served and who 959 fails to institute a suit to enforce his or her claim against 960 the payment bond within 60 days after service of the notice 961 shall be extinguished automatically. The contractor or the 962 contractors attorney shall serve a copy of the notice of 963 contest to the lienor at the address shown in the notice of 964 nonpayment or most recent amendment thereto and shall certify to 965 such service on the face of the notice and record the notice. 966 Section 14.Subsections (1) and (2) of section 713.235, 967 Florida Statutes, are amended to read: 968 713.235Waivers of right to claim against payment bond; 969 forms. 970 (1)When a person is required to execute a waiver of his or 971 her right to make a claim against a payment bond provided under 972 pursuant to s. 713.23 or s. 713.245, in exchange for, or to 973 induce payment of, a progress payment, the waiver may be in 974 substantially the following form: 975 976 WAIVER OF RIGHT TO CLAIM 977 AGAINST THE PAYMENT BOND 978 (PROGRESS PAYMENT) 979 980 The undersigned, in consideration of the sum of $.... 981 hereby waives its right to claim against the payment bond for 982 labor, services, or materials furnished through ...(insert 983 date)..., to ...(insert the name of your customer)... on the job 984 of ...(insert the name of the owner)..., for improvements to the 985 following described project: 986 987 (description of project) 988 989 This waiver does not cover any retention or any labor, services, 990 or materials furnished after the date specified. 991 DATED on .... 992 ...(Lienor)... 993 By:........ 994 (2)When a person is required to execute a waiver of his or 995 her right to make a claim against a payment bond provided under 996 pursuant to s. 713.23 or s. 713.245, in exchange for, or to 997 induce payment of, the final payment, the waiver may be in 998 substantially the following form: 999 1000 WAIVER OF RIGHT TO CLAIM 1001 AGAINST THE PAYMENT BOND 1002 1003 (FINAL PAYMENT) 1004 1005 The undersigned, in consideration of the final payment in 1006 the amount of $...., hereby waives its right to claim against 1007 the payment bond for labor, services, or materials furnished to 1008 ...(insert the name of your customer)... on the job of 1009 ...(insert the name of the owner)..., for improvements to the 1010 following described project: 1011 (description of project) 1012 1013 DATED on .... 1014 ...(Lienor)... 1015 By:........ 1016 Section 15.Section 713.245, Florida Statutes, is repealed. 1017 Section 16.Section 713.25, Florida Statutes, is repealed. 1018 Section 17.Section 713.29, Florida Statutes, is amended to 1019 read: 1020 713.29Attorney Attorneys fees.In any action brought to 1021 enforce a lien, including a lien that has been transferred to 1022 security, or to enforce a claim against a bond under this part, 1023 the prevailing party is entitled to recover a reasonable fee for 1024 the services of her or his attorney for trial and appeal or for 1025 arbitration, in an amount to be determined by the court, which 1026 fee must be taxed as part of the prevailing partys costs, as 1027 allowed in equitable actions. 1028 Section 18.Paragraph (b) of subsection (2) and paragraph 1029 (e) of subsection (5) of section 95.11, Florida Statutes, are 1030 amended to read: 1031 95.11Limitations other than for the recovery of real 1032 property.Actions other than for recovery of real property shall 1033 be commenced as follows: 1034 (2)WITHIN FIVE YEARS. 1035 (b)A legal or equitable action on a contract, obligation, 1036 or liability founded on a written instrument, except for an 1037 action to enforce a claim against a payment bond, which shall be 1038 governed by the applicable provisions of paragraph (5)(e), s. 1039 255.05(9) s. 255.05(10), s. 337.18(1), or s. 713.23(1)(e), and 1040 except for an action for a deficiency judgment governed by 1041 paragraph (5)(h). 1042 (5)WITHIN ONE YEAR. 1043 (e)Except for actions governed by s. 255.05(9) s. 1044 255.05(10), s. 337.18(1), or s. 713.23(1)(e), an action to 1045 enforce any claim against a payment bond on which the principal 1046 is a contractor, subcontractor, or sub-subcontractor as defined 1047 in s. 713.01, for private work as well as public work, from the 1048 last furnishing of labor, services, or materials or from the 1049 last furnishing of labor, services, or materials by the 1050 contractor if the contractor is the principal on a bond on the 1051 same construction project, whichever is later. 1052 Section 19.This act shall take effect July 1, 2022.