Construction Industry – Hot Topics/Important Information

HB 1335 – Florida Construction Homeowners’ Recovery Fund

On May 10, 2024, Governor DeSantis signed HB 1335 into law.  Beginning January 1, 2025, for contracts entered into on or after July 1, 2024, payment from the recovery fund is subject to a $100,000 maximum payment for each Division I claim and a $30,000 maximum payment for each Division II claim.

Also, beginning January 1, 2025, for contracts entered into on or after July 1, 2024, payment from the recovery fund is subject to a total aggregate cap of $2 million for each Division I licensee and $600,000 for each Division II license.

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Emergency Order 2024-11 has been issued in response to Hurricane Milton and Emergency Order 2024-08 has been issued, as amended through EO 2024-12 in response to Hurricane Helene.

• Division I contractors, including general, building and residential contractors, can self-perform roofing work for all roofing types on structures within their respective license scope.
• Registered contractors from any local jurisdiction in Florida are allowed to contract for work within their respective license scope, in counties specified in the Order, even if such counties are outside of their geographical scope limitations, provided certain requirements are met such as providing proof of their state registration and compliance with applicable insurance requirements.

Additionally, for purposes of tarp installation, the Orders also clarify that section 489.103(6), Florida Statutes, provides an exemption to the contractor’s license requirement for: “The sale or installation of any finished products, material, or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure, such as awnings…” So long as the tarp installation complies with this exemption, a state contractor’s license is not required.

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October Board Meeting

Due to Hurricane Milton, the October 2024 meeting of the Construction Industry Licensing Board in St. Petersburg has been cancelled. All interested parties will be notified by email.

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Emergency Order 2024-08 has been issued in response to Hurricane Helene.

The following provisions in the Order are applicable statewide:

• Division I contractors, including general, building and residential contractors, can self-perform roofing work for all roofing types on structures within their respective license scope.
• Registered contractors from any local jurisdiction in Florida are allowed to contract for work within their respective license scope, in counties specified in the Order, even if such counties are outside of their geographical scope limitations, provided certain requirements are met such as providing proof of their state registration and compliance with applicable insurance requirements.

Additionally, for purposes of tarp installation, the Order also clarifies that section 489.103(6), Florida Statutes, provides an exemption to the contractor’s license requirement for: “The sale or installation of any finished products, material, or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure, such as awnings…” So long as the tarp installation complies with this exemption, a state contractor’s license is not required.

For more information, see the FAQs for DBPR Emergency Order 2024-08.

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HB 481 – General, Building, Residential, Air Conditioning, and Mechanical Contractors

On May 28, 2024, Governor DeSantis signed HB 481 into law. Effective July 1, 2024, the law provides for the following:

• When residential real property that includes a heating, ventilation, and air-conditioning (HVAC) system is conveyed to a new owner on or after July 1, 2024, a manufacturer’s warranty in effect for the system (or a component of the system) is automatically transferred to the new owner and shall continue to be in effect as if the new owner was the original purchaser.
• Warrantors for HVAC systems continue to be obligated under the terms of the original manufacturer’s warranty agreement for warranties transferred under this law and may not charge a fee for the transfer of the warranty. However, the transfer of a warranty does not extend the remaining term of the warranty.
• A manufacturer’s warranty of a HVAC system or component of the system may not be conditioned upon the registration of the product.
  • The law removes specific requirements for registration of HVAC systems by contractors licensed under part I of Chapter 489, Florida Statutes.

Additionally, the law requires that:

• The full length of a manufacturer’s, distributor’s, or retailer’s warranty of an HVAC system or any component of a system is effective in this state on the date of installation if the system installed by a contractor licensed under chapter 489, Florida Statutes.
• If a manufacturer, distributor, or retailer provides a product registration card, the registration card must contain the following information:
  • The card or form is for the registration of a product.
  • Failure to complete and return the card or form does not diminish any warranty rights or decrease the warranty length.
• Any offered manufacturer’s, distributor’s, or retailer’s warranty for an HVAC system or a component of the system may not be in any way conditioned upon the registration of the product.

For more information regarding this bill, please see the full bill text.

HB 623 – General, Building, and Residential Contractors

On April 15, 2024, Governor DeSantis signed HB 623 into law.  The law protects new home buyers by requiring builders to provide a mandatory builder warranty for newly constructed homes.  For more details on the requirements for mandatory builder warranties please review the new law here: Chapter 2024-95, Laws of Florida.  The new law will go into effect on July 1, 2025.

HB 939 – General, Building, Residential, and Roofing Contractors

On May 2, 2024, Governor DeSantis signed HB 939 into law. Effective July 1, 2024, the law provides for the following:

• Grants residential property owners the authority to cancel a contract to replace or repair a roof without penalty within 10 days after execution of the contract or by the official start date, whichever comes first, if the contract was entered into because of events that are subject of a declaration of a state of emergency by the Governor of Florida.
• Contractors, during a declared state of emergency, must include the following language, in all their contracts immediately before the space reserved for the signature of a residential property owner.  Additionally, the language must be at least 18-point font and bolded:
  • “You, the residential property owner, may cancel this contract without penalty or obligation within 10 days after the execution of the contract or by official start date, whichever comes first, because this contract was entered into during a state of emergency by the Governor.  The official start date is the date on which the work that includes the installation of materials that will be included in the final work on the roof commences, a final permit has been issued, or a temporary repair to the roof covering or roof system has been made in compliance with the Florida Building Code.”
• The residential property owner must send the notice of cancellation by certified mail, return receipt requested, or other form of mailing that provides proof that the cancellation was sent to the address specified in the contract.

Additionally, the law defines:

• “Residential property owner” as a person who holds legal title to the residential real property that is subject of and directly impacted by the action of a governmental entity.
• “Official start date” as the date on which work that includes the installation of materials has started, a final permit has been issued, or a temporary repair to the roof covering or roof has been made in compliance with the Florida Building Code.

For more information regarding this bill, please see the full bill text.

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LOCAL SPECIALTY CONTRACTOR LICENSING EXTENSION

SB 1142 (2024) has extended all local specialty contractor licensing until June 30, 2025.  Therefore, effective July 1, 2025, local governments may only license local specialty contractor license types that substantially correspond to the specialty contractor license types offered by the Construction Industry Licensing Board (CILB) or those which local governments are statutorily authorized to continue to provide pursuant to section 489.117, Florida Statutes.  A list of all the specialty contractor license types offered by the CILB can be found in rule 61G4-15.100, Florida Administrative Code and rule 61G4-15.012, Florida Administrative Code.

NEW CERTIFIED SPECIALTY LICENSE TYPES

Pursuant to House Bill 1383 (2023), as extended by Senate Bill 1142 (2024), which was signed by Governor DeSantis on May 29, 2024, the CILB has created new certified specialty license types for the following 13 categories:

• • Structural Aluminum or Screen Enclosures Specialty Contractor
  • Marine Seawall Work Specialty Contractor
  • Marine Bulkhead Work Specialty Contractor
  • Marine Dock Work Specialty Contractor
  • Marine Pile Driving Specialty Contractor
  • Structural Masonry Specialty Contractor
  • Structural Prestressed, Precast Concrete Work Specialty Contractor
  • Rooftop Solar Heating Installation Specialty Contractor
  • Structural Steel Work Specialty Contractor
  • Window and Door Installation Specialty Contractor
  • Garage Door Installation Specialty Contractor
  • Plaster and Lath Specialty Contractor
  • Structural Carpentry Specialty Contractor

Effective June 20, 2024, state licensure in the above categories is available for applicants who meet the examination exemption requirements listed below.  NOTE: This exam exemption is also available for CILB’s existing specialty license types.

• • As of June 30, 2021, held a valid local competency card in the license category sought;
  • Has not had said local competency card disciplined in the last five (5) years, and said local competency card is not currently pending any discipline; and
  • Has, for the requested license type, passed a written examination that the board finds to be substantially similar to the examination required to be licensed as a certified specialty contractor.

Click here to complete an application for licensure as a state certified specialty contractor through the exam exemption method of qualification.

State examinations for the new specialty license categories are being finalized and will be available after August 1, 2024.  Please check the Department’s website for updates.

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DBPR Emergency Order 2022-03 has been issued in response to Hurricane Ian

Due to the significant impact of Hurricane Ian on the citizens of Florida, Department of Business and Professional Regulation Secretary Melanie S. Griffin, pursuant to the authority granted by Executive Order 2022-218, as amended by Executive Order 2022-219, has executed DBPR Emergency Order 2022-03 to waive the requirement for certified or registered, general, building, or residential contractors to subcontract roofing work for the repair or installation of any roof type in listed counties. Also, while the emergency order is in effect, registered contractors are not subject to geographic scope limitations or requirements when providing services in listed counties, subject to additional requirements outlined in the emergency order. For more information, see the DBPR Emergency Order 2022-03 Fact Sheet.

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Senate Bill 76/Senate Bill 2-D and Contractor Responsibilities Regarding Prohibited Property Insurance Practices

On June 11, 2021, Senate Bill 76 was signed into law and was subsequently modified by Senate Bill 2-D, which was signed into law on June 29, 2022. Both of these bills include provisions prohibiting predatory roofing advertisements and practices by contractors who seek to take fraudulent advantage of the assignment of benefits process. The bills also require a notice with advertisement and contracts indicating the contractor may not engage in certain practices to induce customers to allow the contractor to inspect the roof or make an insurance claim on the customer’s behalf. For more information on the prohibitions and requirements enacted in these bills, see the Fact Sheet on Contractor Responsibilities and Prohibited Property Insurance Practices.

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Grandfathering

On June 21, 2021, Governor Ron DeSantis signed Senate Bill 1966, which reopens the grandfathering provision for registered contractors. Effective July 1, 2021, certain state registered construction contractors can apply to grandfather their license into a certified license. For additional information please review sec. 489.118, Florida Statutes, or the FAQs.

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Reciprocity

Following recent updates to Florida Law, the Florida CILB has entered an agreement with the State of Louisiana that will allow Florida license holders to obtain Louisiana contractor licenses. The agreements with the State of Louisiana, effective June 2021, cover General, Commercial and Residential Contractors who have obtained 5 years of licensed experience. Applicants will be exempt from the respective trade exam and are likewise able to bypass some of the typical documentation when obtaining the same license in the new state. The remaining licensing requirements such as insurance, financial responsibility and background checks remain applicable. Applicants will take a Business & Finance course prior to approval.

Meanwhile, those applicants for a Florida license coming from Louisiana will take the Florida Business & Finance exam prior to making application on CILB Form 32. Applicants will also take a Florida Building Code test offered from a Florida approved CE provider, and those applicants for the Florida GC license will demonstrate 4-story new construction experience on the application form.

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On June 30, 2020, Governor Ron DeSantis signed “The Occupational Freedom and Opportunity Act” (HB 1193) which eliminates unnecessary regulations and reduces barriers to entry for certain professions in Florida. Effective July 1, 2020, the bill provides the following changes:

• There has been a change to the previous handyman exemption to state licensing requirements. The provision in 489.103, Florida Statutes, formerly exempted projects totaling less than $1,000.  The exemption amount will be raised to $2,500.  The remaining stipulations, including that the work be of a casual, minor and inconsequential nature, remain in place.  That phrase is defined in Rule 61G4-12.011, Florida Administrative Code, and essentially means, when no permit is required.
• The testing requirements for incoming contractors have changed.  Graduates with 3.0 or better GPA in building construction will now be exempt from the trade knowledge portion of the state licensing exam.  It appears that the intent is that prior graduates will benefit, as well as future graduates should they apply for new licenses.  Likewise, the provision applies to any type of license covered in Chapter 489 Part 1, Florida Statutes.  Those applicants who qualify for the exemption will so elect when applying for the exam, and apply only to take only the business and finance portion of the test.
• Finally, applicants with an active or recently active out-of-state license held for 10 years or more may apply for the same license in Florida. Division I and roofing endorsement/reciprocity applicants must complete a 2 hour course on the Florida Building Code which includes information on wind mitigation techniques.  If you hold the license in the business name, you will need to submit documentation from your home state agency indicating you were the test taker and qualifier.  Also, make sure to apply for a license at the same level as you currently hold and include documentation showing what scope of work is allowed with your current license.

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Construction Industry Licensing Board Expands Online Continuing Education

The Construction Industry Licensing Board is allowing all continuing education courses previously approved for classroom (in-person) credit to be taught via interactive distance learning methods for the next 90 days. Continuing education course providers will not be required to submit separate course applications for distance learning during this time. This relief from Rule 61G4ER20-6 is effective June 18, 2020 and valid for the next 90 days.

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DBPR Hurricane Dorian Updates:

The license renewal and continuing education compliance deadline of September 3, 2019, has been suspended and tolled through September 30, 2019, for licensed registered contractors in the following professions: Registered Air Conditioning Contractor (RA), Registered Building Contractor (RB), Registered Roofing Contractor (RC), Registered Plumbing Contractor (RF), Registered General Contractor (RG), Registered Tank Lining Applicator (RL), Registered Mechanical Contractor (RM), Registered Pool/Spa Contractor (RP), Registered Precision Tank Tester (RQ), Registered Residential Contractor (RR), Registered Sheet Metal Contractor (RS), Registered Utility and Excavation Contractor (RU), and Registered Specialty Contractor (RX).

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Public Works Projects

When requesting bids for public works projects, there are times when local governments are uncertain which contractor they need to specify for the project because more than one category of licensure is legally authorized to perform the work. That said, local municipalities may not prohibit any contractor that is qualified, licensed, or certified as required by state law from bidding on public works projects, pursuant to section 255.0992, Florida Statutes. Additionally, section 489.113(9)(a), Florida Statutes provides that a contractor may act as a prime contractor where the majority of the work to be performed under the contract is within the scope of his or her license and the remaining work is subcontracted to other licensed contractors. For more information regarding the scope of work for contractors please review DBPR’s License Types. Contractors may wish to consult their local government attorney regarding the foregoing.

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Emergency Order 2018-08696 has been issued in response to Hurricane Michael and is applicable to counties directly affected by the hurricane.

The order temporarily allows local building departments, if needed, to issue local specialty roofing licenses to roofers who are qualified in other localities within the State of Florida. These specialty licenses would be subject to local disciplinary oversight like other local specialty licenses.

The order extends the exemption found in section 489.103(19), F.S. to cover repairs to non-residential structures by non-profit organizations, including community centers, houses of worship, and sports facilities.  For-profit commercial buildings are not included in this temporary expansion of the exemption.

For purposes of tarp installation, the order clarifies that Section 489.103(6), Florida Statutes provides an exemption to contractor’s license for: “The sale or installation of any finished products, materials, or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure, such as awnings . . .” So long as the tarp installation complies with this exemption, a state contractor’s license is not required.

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Paperless Licensing, effective 05/04/2018

The Department of Business and Professional Regulation is excited to announce an advancement in how we license construction contractors in the State of Florida.
The Department has implemented an innovative way to expedite the licensing process for construction contractors. The Department will no longer be mailing licenses upon issuance, as licensees can now print their licenses by logging into their secure online account with the Department. This will allow new licensees to enter the work force at least 7 to 10 business days early, whereas, in the past, they would have to wait for the license to arrive in the mail. In addition to new licenses, this process will allow licensees to renew online and print the license at their convenience, as well as print duplicate licenses as needed without paying a fee.

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