January 20, 2021
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
       Florida Senate - 2010                      CS for CS for SB 1056
       
       
       
       By the Committees on Judiciary; and Community Affairs; and
       Senator Baker
       
       
       
       590-05219A-10                                         20101056c2
    1                        A bill to be entitled                      
    2         An act relating to the Local Government Prompt Payment
    3         Act; amending s. 218.72, F.S.; revising definitions;
    4         amending s. 218.735, F.S.; revising provisions
    5         relating to the timely payment for purchases of
    6         construction services; providing that a payment
    7         request or invoice that is not rejected within a
    8         certain time after an overdue notice is sent is deemed
    9         accepted; requiring a local governmental entity to
   10         identify in a construction contract the agent or
   11         employee or facility or office to which a contractor
   12         may submit its payment request or invoice; requiring
   13         that an ordinance providing dispute resolution
   14         procedures applicable to a construction contract be
   15         referenced in the contract; requiring construction
   16         contracts to specify a date for the delivery of a list
   17         of items required to render complete, satisfactory,
   18         and acceptable the construction services purchased by
   19         a local governmental entity; providing for the
   20         extension of the contract if the list of items
   21         remaining to complete is not timely provided to the
   22         contractor; specifying the time for paying any
   23         remaining undisputed contract amount; amending s.
   24         218.76, F.S.; revising provisions relating to the
   25         resolution of disputes concerning an improper payment
   26         request or invoice; providing that a local
   27         governmental entity waives its objection in a payment
   28         dispute if it fails to commence the dispute resolution
   29         procedure within a certain time and after receiving
   30         notice from the contractor; providing an effective
   31         date.
   32  
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Section 218.72, Florida Statutes, is reordered
   36  and amended to read:
   37         218.72 Definitions.—As used in this part, the term:
   38         (8)(1) “Proper invoice” means an invoice that which
   39  conforms with all statutory requirements and with all
   40  requirements that have been specified by the local governmental
   41  entity to which the invoice is submitted. Such requirements must
   42  be included in the contract for the project for which the
   43  invoice is submitted.
   44         (5)(2) “Local governmental entity” means a county or
   45  municipal government, school board, school district, authority,
   46  special taxing district, other political subdivision, or any
   47  office, board, bureau, commission, department, branch, division,
   48  or institution thereof.
   49         (4)(3) “County” means a political subdivision of the state
   50  established pursuant to s. 1, Art. VIII of the State
   51  Constitution.
   52         (6)(4) “Municipality” means a municipality created pursuant
   53  to general or special law and metropolitan and consolidated
   54  governments as provided in s. 6(e) and (f), Art. VIII of the
   55  State Constitution.
   56         (9)(5) “Purchase” means the purchase of goods, services, or
   57  construction services; the purchase or lease of personal
   58  property; or the lease of real property by a local governmental
   59  entity.
   60         (10)(6) “Vendor” means any person who sells goods or
   61  services, sells or leases personal property, or leases real
   62  property directly to a local governmental entity. The term
   63  includes any person who provides waste hauling services to
   64  residents or businesses located within the boundaries of a local
   65  government pursuant to a contract or local ordinance.
   66         (2)(7) “Construction services” means all labor, services,
   67  and materials provided in connection with the construction,
   68  alteration, repair, demolition, reconstruction, or any other
   69  improvements to real property.
   70         (7)(8) “Payment request” means a request for payment for
   71  construction services which conforms with all statutory
   72  requirements and with all requirements specified by the local
   73  governmental entity to which the payment request is submitted.
   74  Such requirements must be included in the contract for the
   75  project for which payment is requested.
   76         (1)(9) “Agent” means the project architect, project
   77  engineer, or any other agency or person acting on behalf of the
   78  local governmental entity. The agent who is required to review
   79  invoices or payment requests must be identified in accordance
   80  with s. 218.735(2).
   81         (3)(10) “Contractor” or “provider of construction services”
   82  means the any person who contracts directly with a local
   83  governmental entity to provide construction services.
   84         Section 2. Present subsections (8) and (9) of section
   85  218.735, Florida Statutes, are redesignated as subsections (9)
   86  and (10), respectively, and present subsections (1) through (7)
   87  of that section are amended, to read:
   88         218.735 Timely payment for purchases of construction
   89  services.—
   90         (1) The due date for payment for the purchase of
   91  construction services by a local governmental entity is
   92  determined as follows:
   93         (a) If an agent must approve the payment request or invoice
   94  before prior to the payment request or invoice is being
   95  submitted to the local governmental entity, payment is due 25
   96  business days after the date on which the payment request or
   97  invoice is stamped as received as provided in s. 218.74(1). The
   98  contractor may send the local government an overdue notice. If
   99  the payment request or invoice is not rejected within 2 business
  100  days after delivery of the overdue notice, the payment request
  101  or invoice is deemed accepted, except for any portion that is
  102  fraudulent or misleading.
  103         (b) If an agent need not approve the payment request or
  104  invoice which is submitted by the contractor, payment is due 20
  105  business days after the date on which the payment request or
  106  invoice is stamped as received as provided in s. 218.74(1).
  107         (2) A local governmental entity shall identify the agent or
  108  employee of the local governmental entity, or the facility or
  109  office, to which the contractor may submit its payment request
  110  or invoice.
  111         (a) This requirement must be included in the contract
  112  between the local governmental entity and contractor, or, as
  113  required by the contract, must be provided by the local
  114  governmental entity through a separate written notice within 10
  115  days after the contract award.
  116         (b) A contractor’s submission of a payment request or
  117  invoice to the identified agent, employee, facility, or office
  118  of the local governmental entity must be stamped as received as
  119  provided in s. 218.74(1), and commences the time periods for
  120  payment or rejection of a payment request or invoice as provided
  121  in this subsection and subsection (3).
  122         (3)(2)If a payment request or invoice does not meet the
  123  contract requirements, the local governmental entity must may
  124  reject the payment request or invoice within 20 business days
  125  after the date on which the payment request or invoice is
  126  stamped as received as provided in s. 218.74(1). The rejection
  127  must be written and must specify the deficiency in the payment
  128  request or invoice and the action necessary to make the payment
  129  request or invoice proper.
  130         (4)(3) If a payment request or an invoice is rejected under
  131  subsection (3) (2) and the contractor submits a corrected
  132  payment request or invoice that which corrects the deficiency
  133  specified in writing by the local governmental entity, the
  134  corrected payment request or invoice must be paid or rejected on
  135  the later of:
  136         (a) Ten business days after the date the corrected payment
  137  request or invoice is stamped as received as provided in s.
  138  218.74(1); or
  139         (b) If the local governmental entity governing body is
  140  required by ordinance, charter, or other law to approve or
  141  reject the corrected payment request or invoice, the first
  142  business day after the next regularly scheduled meeting of the
  143  local governmental entity governing body held after the
  144  corrected payment request or invoice is stamped as received as
  145  provided in s. 218.74(1).
  146         (5)(4) If a dispute between the local governmental entity
  147  and the contractor cannot be resolved by the procedure in
  148  subsection (4) (3), the dispute must be resolved in accordance
  149  with the dispute resolution procedure prescribed in the
  150  construction contract or in any applicable ordinance, which must
  151  be referenced in the contract. In the absence of a prescribed
  152  procedure, the dispute must be resolved by the procedure
  153  specified in s. 218.76(2).
  154         (6)(5) If a local governmental entity disputes a portion of
  155  a payment request or an invoice, the undisputed portion shall be
  156  paid timely, in accordance with subsection (1).
  157         (7)(6)If When a contractor receives payment from a local
  158  governmental entity for labor, services, or materials furnished
  159  by subcontractors and suppliers hired by the contractor, the
  160  contractor must shall remit payment due to those subcontractors
  161  and suppliers within 10 days after the contractor’s receipt of
  162  payment. If When a subcontractor receives payment from a
  163  contractor for labor, services, or materials furnished by
  164  subcontractors and suppliers hired by the subcontractor, the
  165  subcontractor must shall remit payment due to those
  166  subcontractors and suppliers within 7 days after the
  167  subcontractor’s receipt of payment. This subsection does not
  168  Nothing herein shall prohibit a contractor or subcontractor from
  169  disputing, pursuant to the terms of the relevant contract, all
  170  or any portion of a payment alleged to be due to another party
  171  if the contractor or subcontractor notifies the party whose
  172  payment is disputed, in writing, of the amount in dispute and
  173  the actions required to cure the dispute. The contractor or
  174  subcontractor must pay all undisputed amounts due within the
  175  time limits imposed by this section.
  176         (8)(7)(a) Each contract for construction services between a
  177  local governmental entity and a contractor must provide for the
  178  development of a single list of items required to render
  179  complete, satisfactory, and acceptable the construction services
  180  purchased by the local governmental entity.
  181         (a) The contract must specify the process for developing
  182  the development of the list, including the responsibilities of
  183  the local governmental entity and the contractor in developing
  184  and reviewing the list and a reasonable time for developing the
  185  list, as follows:
  186         1. For construction projects having an estimated cost of
  187  Less than $10 million, within 30 calendar days after reaching
  188  substantial completion of the construction services purchased as
  189  defined in the contract, or, if not defined in the contract,
  190  upon reaching beneficial occupancy or use; or
  191         2. For construction projects having an estimated cost of
  192  $10 million or more, within 30 calendar days, or, if unless
  193  otherwise extended by contract, up to not to exceed 60 calendar
  194  days, after reaching substantial completion of the construction
  195  services purchased as defined in the contract, or, if not
  196  defined in the contract, upon reaching beneficial occupancy or
  197  use.
  198         (b) The contract must also specify a date for the delivery
  199  of the list of items, not to exceed 5 days after the list of
  200  items has been developed and reviewed in accordance with the
  201  time periods set forth in paragraph (a).
  202         (c)(b) If the contract between the local governmental
  203  entity and the contractor relates to the purchase of
  204  construction services on more than one building or structure, or
  205  involves a multiphased project, the contract must provide for
  206  the development of a list of items required to render complete,
  207  satisfactory, and acceptable all the construction services
  208  purchased pursuant to the contract for each building, structure,
  209  or phase of the project within the time limitations provided in
  210  paragraph (a).
  211         (d) The final contract completion date must be at least 30
  212  days after the delivery of the list of items. If the list is not
  213  provided to the contractor by the agreed date, the contract time
  214  for completion must be extended by the number of days the local
  215  governmental entity exceeded the delivery date. Damages may not
  216  be assessed against a contractor for failing to complete a
  217  project within the time required by the contract, unless the
  218  contractor failed to complete the project within the contract
  219  period as extended pursuant to this paragraph.
  220         (e)(c) The failure to include any corrective work or
  221  pending items not yet completed on the list developed pursuant
  222  to this subsection does not alter the responsibility of the
  223  contractor to complete all the construction services purchased
  224  pursuant to the contract.
  225         (f)(d) Upon completion of all items on the list, the
  226  contractor may submit a payment request for all remaining
  227  retainage withheld by the local governmental entity pursuant to
  228  this section. If a good faith dispute exists as to whether one
  229  or more items identified on the list have been completed
  230  pursuant to the contract, the local governmental entity may
  231  continue to withhold up to an amount not to exceed 150 percent
  232  of the total costs to complete such items.
  233         (g)(e) All items that require correction under the contract
  234  and that are identified after the preparation and delivery of
  235  the list remain the obligation of the contractor as defined by
  236  the contract.
  237         (h)(f) Warranty items or items not included in the list of
  238  items may not affect the final payment of retainage as provided
  239  in this section or as provided in the contract between the
  240  contractor and its subcontractors and suppliers.
  241         (i)(g) Retainage may not be held by a local governmental
  242  entity or a contractor to secure payment of insurance premiums
  243  under a consolidated insurance program or series of insurance
  244  policies issued to a local governmental entity or a contractor
  245  for a project or group of projects, and the final payment of
  246  retainage as provided in this section may not be delayed pending
  247  a final audit by the local governmental entity’s or contractor’s
  248  insurance provider.
  249         (j)(h) If a local governmental entity fails to comply with
  250  its responsibilities to develop the list of items, including the
  251  list required under paragraph (c), if applicable, (a) or
  252  paragraph (b), as defined in the contract, within the time
  253  limitations provided in paragraph (a), the contractor may submit
  254  a payment request for all remaining retainage withheld by the
  255  local governmental entity pursuant to this section. The payment
  256  of any remaining undisputed contract amount, less any amount
  257  withheld pursuant to the contract for incomplete or uncorrected
  258  work, must be paid within 20 business days after receipt of a
  259  proper invoice or payment request. If the local governmental
  260  entity has provided written notice to the contractor specifying
  261  the failure of the contractor to meet contract requirements in
  262  developing the list of items to be completed, the local
  263  governmental entity need not pay or process any payment request
  264  for retainage if the contractor has, in whole or in part, failed
  265  to cooperate with the local governmental entity in the
  266  development of the list, or failed to perform its contractual
  267  responsibilities, if any, with regard to the development of the
  268  list, or if paragraph (9)(f) (8)(f) applies.
  269         Section 3. Section 218.76, Florida Statutes, is amended to
  270  read:
  271         218.76 Improper payment request or invoice; resolution of
  272  disputes.—
  273         (1) If In any case in which an improper payment request or
  274  invoice is submitted by a vendor, the local governmental entity
  275  shall, within 10 days after the improper payment request or
  276  invoice is received by it, notify the vendor, in writing, that
  277  the payment request or invoice is improper and indicate what
  278  corrective action on the part of the vendor is needed to make
  279  the payment request or invoice proper.
  280         (2) If In the event a dispute arises occurs between a
  281  vendor and a local governmental entity concerning payment of a
  282  payment request or an invoice, the dispute such disagreement
  283  shall be finally determined by the local governmental entity
  284  pursuant to as provided in this section. Each local governmental
  285  entity shall establish a dispute resolution procedure
  286  established to be followed by the local governmental entity in
  287  cases of such disputes.
  288         (a) The Such procedure must shall provide that proceedings
  289  to resolve the dispute are shall be commenced within not later
  290  than 45 days after the date on which the payment request or
  291  proper invoice was received by the local governmental entity and
  292  shall be concluded by final decision of the local governmental
  293  entity within not later than 60 days after the date on which the
  294  payment request or proper invoice was received by the local
  295  governmental entity. Such procedures are shall not be subject to
  296  chapter 120, and do such procedures shall not constitute an
  297  administrative proceeding that which prohibits a court from
  298  deciding de novo any action arising out of the dispute. If the
  299  dispute is resolved in favor of the local governmental entity,
  300  then interest charges shall begin to accrue 15 days after the
  301  local governmental entity’s final decision. If the dispute is
  302  resolved in favor of the vendor, then interest begins shall
  303  begin to accrue as of the original date the payment became due.
  304         (b) If the local governmental entity does not commence the
  305  dispute resolution procedure within the time required, the
  306  contractor may give written notice to the local governmental
  307  entity of the failure to timely commence the dispute resolution
  308  procedure. If the local governmental entity fails to commence
  309  the dispute resolution procedure within 2 business days after
  310  such notice:
  311         1. Any amounts resolved in the contractor’s favor bear
  312  mandatory interest, as set forth in s. 218.735(10), from the
  313  date the payment request or invoice containing the disputed
  314  amounts was submitted to the local governmental entity.
  315         2. The objection to the payment request or invoice is
  316  deemed waived. The waiver of such objection does not relieve a
  317  contractor of its contractual obligations.
  318         (3) In an action to recover amounts due under this part ss.
  319  218.70-218.80, the court shall award court costs and reasonable
  320  attorney’s fees, including fees incurred through any appeal, to
  321  the prevailing party, if the court finds that the nonprevailing
  322  party withheld any portion of the payment that is the subject of
  323  the action without any reasonable basis in law or fact to
  324  dispute the prevailing party’s claim to those amounts. This
  325  subsection does not apply to any litigation commenced before
  326  October 1, 2010.
  327         Section 4. This act shall take effect October 1, 2010.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2021 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader