Increase fines and penalties for unlicensed activities and other disciplinary actions.

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

RULE NO.:RULE TITLE:

61G4-17.001Normal Penalty Ranges

PURPOSE AND EFFECT: Increase fines and penalties for unlicensed activities and other disciplinary actions.

SUMMARY: Fines and penalties for disciplinary actions.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: During discussion of the economic impact of this rule at its Board meeting, the Board, based upon the expertise and experience of its members, determined that a Statement of Estimated Regulatory Costs (SERC) was not necessary and that the rule will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact at that time.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 455.277, 489.108, 489.129 FS.

LAW IMPLEMENTED: 455.277, 455.2273, 489.129 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Drew Winters, Executive Director, Construction Industry Licensing Board, P. O. Box 5257, Tallahassee, Florida 32399-5257

THE FULL TEXT OF THE PROPOSED RULE IS:

61G4-17.001 Normal Penalty Ranges.

(1) The following guidelines shall be used in disciplinary cases, absent aggravating or mitigating circumstances and subject to other provisions of this chapter.

	PENALTY RANGE
VIOLATION	MINIMUM	MAXIMUM
(a) Section 489.129(1)(a), F.S. Obtaining license through fraud or misrepresentation. If misrepresentation If fraud	$5,000 fine and/or probation, suspension, and/or revocation. $5,000 fine and probation, suspension or rRevocation.	$10,000 fine and revocation. $10,000 fine and revocation.
(b) Sections 489.129(1)(b), 455.227(1)(c), F.S. Convicted or found guilty of a crime relating to contracting.	$3,500 $2,500 fine and/or probation, or suspension.	$10,000 fine and probation, suspension, or revocation.
(c) Section 489.129(1)(c), F.S.: Violating any part of Chapter 455, F.S. 1. Section 455.227(1)(a), F.S.: Fraud, deceit, misleading, or untrue representations.	$5,000 fine and/or probation or suspension.	$10,000 fine and probation, suspension or revocation.
2. Section 455.227(1)(r), F.S.: Improperly interfering with an investigation or disciplinary action.	$5,000 fine and/or probation or suspension.	$10,000 fine and probation, suspension or revocation.
(d) Section 489.129(1)(d), F.S.: Assisting unlicensed person to evade provision of Chapter 489, F.S.	$5,000 $2,500 fine and/or probation or suspension.	$10,000 fine and probation, suspension or revocation.
(e) Section 489.129(1)(e), F.S.: Combining and conspiring with unlicensed person or entity to evade provision of Chapter 489, F.S.	$5,000 $4,000 fine and/or probation or suspension.	$10,000 fine and probation, suspension or revocation.
(f) Sections 489.129(1)(f), 489.119(2), F.S.: Acting under a name not on license. FIRST OFFENSE SECOND OFFENSE	$1,500 fine. $2,500 fine	$5,000 $3,000 fine and/or probation or suspension. $5,000 fine and suspension or revocation.

(g) Section 489.129(1)(g), F.S.: Mismanagement or misconduct causing financial harm to the customer. FIRST OFFENSE REPEAT OFFENSE	$1,500 fine and/or probation or suspension. $2,500 fine and/or probation or suspension.	$5,000 fine and/or probation or suspension. $10,000 fine and revocation.
(h) Section 489.129(1)(h), F.S.: Local disciplinary action.	Use penalty herein listed for the violation most closely resembling the act underlying the local discipline;	Use penalty herein listed for the violation most closely resembling the act underlying the local discipline;
(i) Section 489.129(1)(i), F.S.: Failing in any material respect to comply with the provisions of Part I of Chapter 489, F.S.	Use penalty herein listed for the violation most closely resembling the act underlying the local discipline;	Use penalty herein listed for the violation most closely resembling the act underlying the local discipline;
1. Section 489.1195(2)(e), F.S.: Failure to supervise construction activities. FIRST OFFENSE REPEAT OFFENSE	$2,500 $1,000 fine and/or probation or suspension. $5,000 $2,500 fine and/or probation or suspension.	$5,000 $3,000 fine and/or probation or suspension. $10,000 fine and revocation.

2. Sections 489.113, 489.117, F.S.: Contracting beyond scope of practice allowed by license, no safety hazard.

FIRST OFFENSE

REPEAT OFFENSE

$1,000 fine and/or probation or suspension.

$5,000 $3,000 fine and/or probation or suspension.

$3,000 fine and/or probation or suspension.

$10,000 fine and revocation.

3. Sections 489.113, 489.117, F.S.: Contracting beyond scope of license, safety hazard is created.

FIRST OFFENSE

REPEAT OFFENSE

$4,000 fine and/or probation or suspension.

$5,000 fine and/or probation or suspension.

$8,000 fine and/or probation, or suspension or revocation.

$10,000 fine and revocation.

4. Section 489.1425, F.S.: Failure to notify residential property owner of recovery fund.

FIRST OFFENSE

REPEAT OFFENSE

$250 fine.

$1,000 fine.

$500 fine.

$1,000 fine.

5. Section 489.115, F.S.: Contracting with a delinquent license.

FIRST OFFENSE

REPEAT OFFENSE

$1,500 $500 fine, respondent must pay all fees and costs required to place license in current and active status, and/or probation or suspension.

$2,500 fine, respondent must pay all fees and costs required to place license in current and active status, and/or probation or suspension.

$5,000 fine and suspension or revocation, respondent must pay all fees and costs required to place license in current and active status, and/or probation or suspension.

6. Section 489.116, F.S.: Contracting with an inactive license.

$5,000 fine and/or probation or suspension.

$10,000 fine and revocation.

7. Section 489.117, F.S.: Contracting in a city or county where the contractor is not licensed.

First violation, where the jurisdiction is not adjacent to one where contractor is properly licensed, or practice outside the geographical scope of the license was willful.

$1,000 fine and/or probation or suspension.

$2,500 fine and/or probation or suspension.

8. Section 489.119, F.S.: Failure to qualify a business register qualified business organization.

FIRST OFFENSE

REPEAT OFFENSE

$2,500 $250 fine.

$5,000 $500 fine.

$5,000 $1,000 fine and/or probation or suspension.

$10,000 $2,000 fine and/or probation, or suspension or revocation.

9. Section 489.119(5)(6)(b), F.S.: License number not appearing in advertisement.

FIRST OFFENSE

REPEAT OFFENSE

$250 fine.

$500 fine.

$1,000 fine.

$2,500 fine and probation.

10. Section 489.124, F.S.: Failure to keep business and financial records as required.

$1,000 fine

$5,000 fine and revocation.

11. Section 489.126(2), F.S.: Failure to apply for all necessary permits within 30 days of entering contract or failure to start within 90 days after issuance of all necessary permits wen the contractor receives an initial payment of more than 10 percent of the contract price for repair, restoration, improvement or construction to residential real property.

FIRST OFFENSE

REPEAT OFFENSE

$2,500 fine or probation or suspension.

$5,000 fine and probation or suspension.

$10,000 fine and probation, suspension, or revocation.

(j) Section 489.129(1)(j), F.S.: Abandonment.

FIRST OFFENSE

REPEAT OFFENSE

$2,500 fine and/or probation or suspension.

$5,000 fine and/or probation or suspension.

$7,500 fine and/or probation or suspension.

$10,000 fine and revocation.

(k) Section 489.129(1)(k), F.S.: False payment statements, false statement of insurance coverage.

1. False payment statement.

FIRST OFFENSE

REPEAT OFFENSE

$2,500 $1,000 fine.

$5,000 $3,000 fine and/or probation or suspension.

$7,500 $3,000 fine and probation or suspension.

$10,000 fine and revocation.

2. False statement of insurance coverage.

FIRST OFFENSE

REPEAT OFFENSE

$1,000 fine and/or probation or suspension.

$5,000$2,500 fine and/or probation or suspension.

$5,000 $2,000 fine and/or probation or suspension.

$10,000 fine and probation, suspension or revocation.

(l) Section 489.129(1)(l), F.S.: Committing fraud or deceit in the practice of contracting.

1. Causing no monetary or other harm to licensee’s customer, and no physical harm to any person.

$2,500 fine and/or probation or suspension.

$2,500 fine.

$10,000 fine and revocation.

$10,000 fine and suspension or revocation.

2. Causing monetary or other harm to licensee’s customer or physical harm to any person.

$5,000.00 $2,500 fine and/or probation or suspension.

$10,000 fine and revocation.

(m) Misconduct or incompetency in the practice of contracting, shall include, but is not limited to:

1. Failure to honor a warranty.

FIRST OFFENSE

REPEAT OFFENSE

$1,000 fine and/or probation or suspension.

$2,500 fine and/or probation or suspension.

$5,000 fine and/or probation or suspension.

$10,000 fine and revocation.

2. Violation of any provision of Chapter 61G4, F.A.C., or Chapter 489, Part I, F.S.

FIRST OFFENSE

REPEAT OFFENSE

$1,000 fine and/or probation or suspension.

$5,000 $2,500 fine and/or probation or suspension.

$2,500 fine and/or probation or suspension.

$10,000 fine and suspension or revocation.

3. Failure to abide by the terms of a mediation agreement or another offense under this part.

FIRST OFFENSE

REPEAT OFFENSE

$2,500 $500 fine.

$5,000 $3,000 fine and probation or suspension.

$5,000 $2,500 fine and probation.

$10,000 fine and suspension or revocation.

4. The following guidelines shall apply to cases involving misconduct or incompetency in the practice of contracting, absent aggravating or mitigating circumstances:

(n) Section 489.129(1)(n), F.S.: Being found guilty of gross negligence, repeated negligence, or negligence resulting in a significant danger to life or property.

FIRST OFFENSE

REPEAT OFFENSE

$3,000 $1,000 fine and probation, suspension or revocation.

$10,000 $3,000 fine and suspension or revocation.

$10,000 $3,000 fine and probation, suspension or revocation.

$10,000 fine and revocation.

(o) Section 489.129(1)(o), F.S.: Proceeding on any job without obtaining applicable local building department permits and/or inspections.

1. Late permits. Contractor pulls permit after starting job but prior to completion of same and does not miss any inspections.

$250 fine.

$3,000 fine and/or probation.

2. Failure to obtain inspections.

FIRST OFFENSE

REPEAT OFFENSE

$500 $250 fine.

$2500 $1,000 fine and probation or suspension.

$2500$1,000 fine and/or probation or suspension.

$5,000 fine and suspension or revocation.

3. Job finished without a permit having been pulled, or no permit until caught after job, or late permit during the job resulting in missed inspection or inspections.

FIRST OFFENSE

REPEAT OFFENSE

$1,000 fine.

$5000 $2,500 fine.

$5,000 fine and/or probation.

$10,000 fine and suspension or revocation.

(p) Section 489.129(1)(p), F.S.: Intimidating, threatening, coercing, or otherwise discouraging the service of a notice to owner or notice to contractor pursuant to Chapter 713, F.S.

FIRST OFFENSE

REPEAT OFFENSE

$2500 $1,000 fine and/or probation or suspension.

$5,000 fine and/or

probation or suspension.

$5,000 fine and suspension or revocation.

$10,000 fine and suspension or revocation.

(q) Section 489.129(1)(q), F.S.: Failure to satisfy a civil judgment obtained against the licensee or the business organization qualified by the licensee within a reasonable time.

For purposes of this section “reasonable time” means sixty (60) days following the entry of a civil judgment that is not appealed. The Board will consider a mutually agreed upon payment plan as satisfaction of such judgment, so long as the payments are current.

FIRST OFFENSE

REPEAT OFFENSE

$500 fine and/or proof of satisfaction of civil

Judgment.

$5,000 $3,000 fine and/or proof of satisfaction of civil judgment.

$5,000 fine and/or proof of satisfaction of civil

Judgment.

To $10,000 fine and/or proof of satisfaction of civil judgment, and suspension or revocation.

(2) through (6) No change.

Rulemaking Authority 455.227, 489.108, 489.129 FS. Law Implemented 455.227, 455.2273, 489.129 FS. History–New 10-26-86, Amended 12-21-92, Formerly 21E-17.001, Amended 11-2-93, 10-12-94, 7-2-95, 9-3-96, 10-31-96, 2-4-98, 8-2-98, 2-2-04, 1-24-05, 11-2-06,_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Construction Industry Licensing Board

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Construction Industry Licensing Board

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 12, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 12, 2013

Document Information

Comments Open:: 10/15/2014
Summary:: Fines and penalties for disciplinary actions.
Purpose:: Increase fines and penalties for unlicensed activities and other disciplinary actions.
Rulemaking Authority:: 455.277, 489.108, 489.129 FS
Law:: 455.277, 455.2273, 489.129 FS
Contact:: Drew Winters, Executive Director, Construction Industry Licensing Board, P.O. Box 5257, Tallahassee, Florida 32399-5257
Related Rules: (1): 61G4-17.001. Normal Penalty Ranges