A proposed Florida statute would make it a crime for a person, firm, or corporation to intentionally fail to make payment of undisputed amounts under a construction contract after receiving funds from a third party to make that payment.
Payment for Construction Services - SB 378
The proposed bill would modify several statutes governing public and private prompt payment laws in Florida, as stated below:
Interest due on certain public projects would increase from 1% to 2% per month if payment is not made pursuant to the terms of Chapter 218, Florida Statutes.
Any person, firm, or corporation who knowingly and intentionally fails to pay amounts that are undisputedly due on public or private projects under 255.071, Florida Statutes or 713.346, Florida Statutes, commits the crime of misapplication of construction funds.
People licensed under Chapter 489, Florida Statutes, who commit misapplication of construction funds and are convicted of it must have their license suspended for a minimum of 1 year from the date of the conviction.
Interest due on certain private projects is increased by 1% above the statutory interest rate in the absence of a contractual rate of interest.
Florida’s existing misapplication of construction funds statute makes it a felony to misapply construction funds.
If passed, this statute would go into effect on July 1, 2021.