Statute Going to Governor That Affects Local Licensing Boards, Increases Homeowners' Recovery Fund Limits, and Adjust Electrical Contractor Specialty Licensing

The statute modifies three sections of Florida’s Contractor Licensing Statute. First it expands the type of relief that can be awarded by local licensing boards and imposes requirements on their recommended penalties. It also increases the amount of funds the Homeowners’ Construction Industry Recovery Fund can award, starting January 2025. Finally, it adjusts the scope of electrical contractor specialty licensing as it relates to advertising signs.

House Bill 1335 amends three sections of Chapter 489, Florida Statutes, as explained below:

489.131, Florida Statutes, is amended to allow local contractor enforcement boards to award restitution, and to require the board, if it is making a recommended penalty to the Construction Industry Licensing Board, to specify the violations of Chapter 489, Florida Statutes, on which the recommendation is based.

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.

489.505 amends the definition of specialty contractor applicable to electrical contractors as it relates to advertising signs to include nonelectrical signs, as indicated by the underlined language below:

(19) "Specialty contractor" means a contractor whose scope of practice is limited to a specific segment of electrical or alarm system contracting established in a category adopted by board rule, including, but not limited to, residential electrical contracting, maintenance of electrical fixtures, and fabrication, erection, installation, and maintenance of electrical and nonelectrical advertising signs together with the interrelated parts and supports thereof.

If signed by the Governor, the statute would take effect on July 1, 2024.