Original article below:
On July 1, 2020, Governor Desantis signed the Occupational Freedom and Opportunity Act. The Act modifies many existing licensing requirements within the state, across a broad range of professions, from architects to veterinarians. The purpose of the act was to “remove unnecessary barriers for individuals pursuing their professional aspirations.” The biggest practical impact on Florida’s contractors will be new reciprocity provisions within the statute and a reduction in certain continuing education requirements.
While more details are provided below, here is a short summary of the key changes Chapter 455, Florida Statutes, and Chapter 489, Florida Statutes.
The DBPR and Construction Industry Licensing Board (along with every other Board managed by the DBPR are required to enter into reciprocity agreements with other states with similar licensing provisions
Contractors can no longer have their license suspended or revoked solely for defaulting on student loans
The contractual limit for casual, minor, or inconsequential work that does not require a license is raised to $2,500.00.
Licensed contractors no longer have to wait until they have a minimum amount of experience before sitting for another license exam. They still will have to achieve the minimum amount of experience before obtaining that license though.
Those licensed for 10 years in another state can apply for licensure by endorsement in Florida.
The continuing education requirements for electrical contractors are reduced.
Though these changes went into effect on July 1, 2020, it may take some time for the DBPR and other construction industry boards to implement them or for the changes to be noted on their websites. If you want to view the entire statute, please click here. You can also read a summary of the entire bill by the Florida Governor’s office by clicking here. And feel free to reach out to me directly if you have any questions. Full details of the changes are below!
General Changes for Contractors
Florida’s contractors, like many professions are governed by the Florida Division of Business and Professional Regulations. Two sections of the general licensing statute, Chapter 455, Florida Statutes, were modified and will impact contractors.
First, As part of the Act, the DBPR is required to create or require any boards operating underneath it to enter into reciprocal licensing agreements with similar entities in other states. In essence, this means that the DBPR or related board can enter into reciprocity agreements with other states, or can determine another state’s licensing requirements or examinations to be substantially equivalent or more stringent to those in this state and allow reciprocity. Any states that Florida considers reciprocal will be posted online.
Further, the DBPR will not be able to suspend or revoke a license of any person who is in default on or delinquent in the payment of his or her student loans solely on the basis of such default or delinquency.
Specific Changes to Building Contractor Licensing
In addition to the general changes above, the Act made three changes to Chapter 489, Florida Statutes, the statute that specifically governs building and trade contractors in Florida.
Previously, any work or operation of a casual, minor, or inconsequential nature, where the total contract was $1,000.00 or less, did not require a license under Chapter 489, Florida Statutes , to perform. As of July 1, 2020, that limit was increased to $2,500.00. But, a person cannot split work into multiple contracts of less than $2,500.00 to perform a larger or major operation in order to evade the licensing requirements of Chapter 489, Florida Statutes.
The time and type of examination that must be passed to become certain types of licensed contractors has changed. First, if an applicant has received a baccalaureate degree in building construction from an accredited 4-year college, or a related degree as approved by the board by rule, and has a 3.0 grade point average or higher, such applicant is only required to take and pass the business and finance portion of the exam.
Second, various contractors no longer have to wait until they have a minimum number of years of experience to take certain exams, nor do they have to move through certain licenses in a progression. Once a contract has a license, they will generally be able to take the exam for another license at any time and can receive the new license once they meet the experience requirements. In essence this changes the prior requirement that a contractor have a certain amount of experience before taking another licensing exam. This change specifically applies to the following licenses.
Certified Residential Contractor to Certified Building Contractor
Certified Residential Contractor to Certified General Contractor
Certified Building Contractor to Certified General Contractor
Certified Air Conditioning Contractor - C to Certified Air Conditioning Contractor - B
Certified Air Conditioning Contractor - C to Certified Air Conditioning Contractor - A
Certified Air Conditioning Contractor - B to Certified Air Conditioning Contractor - A
Certified Swimming Pool Servicing Contractor to Certified Residential Swimming Pool Contractor
Certified Swimming Pool Servicing Contractor to Certified Commercial Swimming Pool Contractor
Certified Residential Swimming Pool Contractor to Certified Commercial Swimming Pool Contractor
The contractor’s licensing board can now certify as qualified for certification by endorsement anyone who has held a valid, current license to practice contracting issued by another state or territory of the United States for at least 10 years before the date of application and is applying for the same or similar license in this state, subject to insurance, financial responsibility, and ethical qualifications. The board may consider an applicant’s technical competence to ensure the applicant is able to meet the requirements of this state’s codes and standards for wind mitigation and water intrusion. The board may also consider whether such applicable has had a license to practice contracting revoked, suspended, or otherwise acted against by the licensing authority of another state, territory, or country. Such application must be made either when the license in another state or territory is active or within 2 years after such license was last active. Division I contractors and roofing contractors must complete a 2 hour course on the Florida building code which includes information on wind mitigation and techniques. The required courses may be completed online.
Specific Changes to Electrical Contractor Licensing
The Act also made comparable changes to the portion of Chapter 489, Florida Statutes, that governs electrical contractors, as follows:
The electrical contractor’s licensing board can now certify as qualified for certification by endorsement anyone who has held a valid current license to practice electrical or alarm system contracting issued by another stated or territory of the United States for at least 10 years before the date of application and is applying for the same or similar license in this state, subject to other qualifications. Such application must be made either when the license in another state or territory is active or within 2 years after such license was last active. Electrical contractors and alarm system contractors must complete a 2-hour course on the Florida Building Code. The required course may be completed online
Electrical and alarm system contractor continuing education requirements are modified as follows:
Specialty contractors or alarm system contractors now must only complete seven hours of continuing education, down from fourteen, and only one of them must be on technical subjects.
Each certificateholder or registrant licensed as an electrical contractor shall provide proof, in a form established by rule of the board, that the certificateholder or registrant has completed at least 11 classroom hours of at least 50 minutes each of continuing education courses during each biennium since the issuance or renewal of the certificate or registration. The board shall by rule establish criteria for the approval of continuing education courses and providers and may by rule establish criteria for accepting alternative nonclassroom continuing education on an hour-for-hour basis.
For licensed electrical contractors, of the minimum 11 classroom hours of continuing education required, at least 7 hours must be on technical subjects, 1 hour on workers' compensation, 1 hour on workplace safety, and 1 hour on business practices. Electrical contractors engaged in alarm system contracting must also complete 2 hours on false alarm prevention
a licensed electrical or alarm system contractor may not employ a person to perform the duties of a burglar alarm system agent unless the person has successfully completed a minimum of 14 hours of training within 90 days after employment
Interested in taking advantage of this new reciprocity change? We can assist you with the entire application process to make sure that it goes smoothly and to answer any questions you may have. As part of that we can help setup a Florida corporation or LLC for you to business as and ensure that you understand and use Florida’s construction lien laws and contractor licensing laws to your benefit. Many times we can do this for a flat fee. To learn more, please fill out the form below and we will be in touch quickly. Otherwise, please contact me at jason.lambert@hwhlaw.com or (813) 227-8495.