Proposed HB 117 would create a new section within Florida’s home solicitation sales statutes to impose certain requirements on unlicensed contractors making improvements to residential property. The statute, which applies to contractors who are not required to be licensed under Part I, Chapter 489, Florida Statutes, imposes timelines for starting the work, applying for permits, and continuing work at a project and creates criminal penalties for failing to comply with the statute. If enacted, the statute would take effect July 1, 2025.
First, the proposed bill creates 501.0195, Florida Statutes, which states as follows:
501.0195 Home repairs by unlicensed vendors.
(1) For the purposes of this section, the term "unlicensed vendor" means a person who:
(a) Provides or promises to provide services related to a residential home or the extended parcel of land on which the home is located, including, but not limited to, driveways, lawns, trees, gardens, landscaping areas, walls, fences, or other vegetation or fixtures located thereon; and
(b) Is not a contractor as defined in s. 489.105(3).
(2)(a) An unlicensed vendor who receives money as an initial payment for services to be performed must, unless the unlicensed vendor has just cause for failing to apply for the necessary permits, start the work, continue the work, or refund the payment or unless the person who made the payment agreed in writing to a longer period for performance, do all of the following:
1. If the work requires a permit, apply for such permit within 14 days after receiving payment for the work, or within a time period mutually agreed upon in writing by the parties.
2. Start the work within 14 days after receiving payment for the work or within 14 days after the date all required permits for work, if any, are issued, or within a time period mutually agreed upon in writing by the parties.
3. Perform the work, without failing to continue the work for any 14-day period after payment is made or 14 days after the date all necessary permits for work, if any, are issued, or within a time period mutually agreed upon in writing by the parties.
(b)1. There is a presumption that an unlicensed vendor does not have just cause if the unlicensed vendor fails to return all moneys paid to the unlicensed vendor in excess of the value of all work, if any, performed and fails to do any of the following:
a. If the work requires a permit, apply for such permit within the timeframe required by subparagraph (a)1.
b. Start the work within the timeframe required by subparagraph (a)2.
c. Perform the work continuously according to the requirements of subparagraph (a)3.
d. Terminate the contract with proper notification to the owner. For purposes of this sub-subparagraph, proper notification of termination made by the unlicensed vendor must be in the form of a letter that includes the reason for termination of the contract or the reason for failure to perform. The notification must be sent by certified mail, return receipt requested, and mailed to the address of the owner listed in the contracting agreement. If a written agreement does not exist, the letter must be mailed to the address where the work was to be performed or the address listed on the permit, if applicable.
2. The burden is on the unlicensed vendor to prove just cause and to rebut the presumption.
(3) A person who violates subsection (2):
(a) Must be prosecuted in accordance with the thresholds established in this section and with the following:
1. The required intent to prove a criminal violation may be shown to exist at the time that the unlicensed vendor appropriated the money to his or her own use and is not required to be proven to exist at the time of the taking of the money from the owner or at the time the owner makes a payment to the unlicensed vendor.
2. If an unlicensed vendor fails to refund any portion of the money paid to the unlicensed vendor in excess of the value of all work, if any, performed and fails to perform as required in subsection (2), it may be inferred that the unlicensed vendor intended to deprive the owner of the right to the money owed, or deprive the owner of the benefit from it, and it may be inferred that the unlicensed vendor appropriated the money for his or her own use or remitted it to a person not entitled to the use of the money.
3. In a prosecution for a violation of subsection (2), the fact that the unlicensed vendor intended to return the money owed is not a defense.
(b) Commits:
1. If the total money received is less than $1,000, a misdemeanor of the first degree, punishable as provided in s.93 775.082 or s. 775.083.
2. If the total money received is less than $1,000 and the unlicensed vendor has had more than one violation within a 3- year period, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
3. If the total money received is greater than or equal to $1,000 but less than $20,000, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
If the total money received is $20,000 or more but less than $200,000, a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
5. If the total money received is $200,000 or more, a felony of the first degree, punishable as provided in s.106 775.082, s. 775.083, or s. 775.084.
The bill also makes minor adjustments to 501.022(1), Florida Statutes, that clarifies certain exclusions from Florida’s home solicitation statute.