Proposed Statute Would Impose New Requirements on Local Contractor Boards and Increase Homeowners' Recovery Fund Limits

The proposed changes to Chapter 489, Florida Statutes, are part of a larger bill impacting many professions governed by the DBPR.

House Bill 1335 makes amendments to 489.131 and 489.143, Florida Statutes. 489.131(7), Florida Statutes, is amended as follows to require local contractor enforcement boards to make recommendations for restitution and to require the board to specify the violations of Chapter 489, Florida Statutes, on which any penalty is based (additions underlined below)

(c) In addition to any action the local jurisdiction enforcement body may take against the individual's local license, and any fine the local jurisdiction may impose, the local jurisdiction enforcement body shall issue a recommended penalty for board action. This recommended penalty may include a recommendation for no further action, or a recommendation for suspension, restitution, revocation, or restriction of the registration, or a fine to be levied by the board, or a combination thereof. The recommended penalty must specify the violations of this chapter upon which the recommendation is based. The local jurisdiction enforcement body shall inform the disciplined contractor and the complainant of the local license penalty imposed, the board penalty recommended, his or her rights to appeal, and the consequences should he or she decide not to appeal. The local jurisdiction enforcement body shall, upon having reached adjudication or having accepted a plea of nolo contendere, immediately inform the board of its action and the recommended board penalty.

489.143, Florida Statutes, is amended by adding the following language increasing limits on the amount of funds that can be paid out by Florida’s Homeowner’s Construction Recovery Fund for claims:

489.143(3)

. . .

Beginning January 1, 2025, for Division I and Division II 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.

489.143(6)

. . .

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

If enacted, the changes would take effect on July 1, 2024.