DBPR Unlicensed Activity DBPR Unlicensed Activity AwarenessAwareness Seminar for Seminar for

ContractorsContractors

www.MyFlorida.com/dbprwww.MyFloridaLicense.com

A Little About the Department• The Department of Business and Professional Regulation (DBPR)

regulates over 1 million professionals and businesses in Florida ranging from:•Hotels and restaurants•Alcohol and tobacco retailers•Real estate agents and appraisers•Certified Public Accountants•Construction trades

• The department regulates 19 professions and related businesses through 15 professional boards, 3 department regulated professions and 1 council.

• The department is dedicated to protecting the health, safety and welfare of those living in and visiting Florida.

sag

Polk

Escambia Santa Rosa Okaloosa

Walton

Holmes

Washington

Bay

Jackson

Calhoun

GulfFranklin

Liberty

Gadsden

Wakulla

2Leon

Jefferson

Madison

Taylor

Hamilton

Suwannee

Lafayette

ColumbiaBaker

Union

DixieGilchrist

Alachua

Levy

Marion

Citrus

Nassau

3Duval

ClaySt. Johns

PutnamFlagler

Volusia

Lake

Sumte rHernando

Pasco

Seminole

Orange Brevard

Osceola

Manatee Hardee

DeSotoSarasota

Indian River

St. LucieOkeechobee

Highlands

Martin

8Palm Beach

GladesCharlotte

Lee

9Broward

10Dade

Monroe

Hendry

Collier

1

5

7

4

6

Region 1 - Ft. Walton Beach

DIVISION OF REGULATIONDirector: John Washington

REGIONAL OFFICES

Region 2 - Tallahassee

Region 3 - Jacksonville

Region 4 - Gainesville

Region 5 - Orlando

Region 6 - Tampa

Region 7 – Ft. Myers

Region 8 - West Palm Beach

Region 9 - Margate

Region 10 - Miami

Department of Business and Professional Regulation

File a complaint against a licensed individual: 850.487.1395Report unlicensed activity:1.866.532.1440

Email: ULA@dbpr.state.fl.us

Bureau of Unlicensed ActivityMichael Green, Administrator

• Mission: Identify and eliminate the practice of unlicensed activity through the coordinated efforts of the department’s regional offices, local building departments, other state agencies, law enforcement agencies, and the appropriate State Attorney’s Office.

• Objective: Educate the public of the need to hire only licensed individuals when licensure is required and to conduct operations to identify the practice of unlicensed activity. Once these practices are identified, the department will take appropriate steps to effectively eliminate the activity. These steps may include the issuance of a cease and desist order, the issuance of a citation, or an imposition of administrative fines.

Enforcement Activities:• Sweeps -2 per month per office

• Stings- 2 per year per office

• Disaster Operations

Education Activities:• Public Service Announcements

– Partnership with Bob Vila

– PSA collection DVD

• Unlicensed Activity Web Page

• Brochures and other Literature

• Public Speaking Engagements

• Intergovernmental ties

Complaints last year- 2006-2007• During the FY 2006-2007 the DBPR received:

• 5,561 Unlicensed activity complaints

• 3,444 of which were found to be legally sufficient and resulted in further investigation

• Disciplinary Action was taken in 1,207 of these cases

• Additionally citation were issued in other cases

Enforcement Activities:Law Enforcement:

Department has gained leverage in our enforcement efforts by strengthening partnerships with:

• local code enforcement • law enforcement, • state attorneys • Worker’s Compensation Investigators• Multi-Agency Task Forces

Proactive Sweeps, Stings & Consumer Outreach

• Last year 143 sweeps performed for unlicensed activity statewide

• Last year the 63 consumer outreach programs were conducted with over 5,000 Floridians attending

Ways DBPR is working to fight Unlicensed Activity

• Toll Free Hot-line for consumers and licensees

1.866.532.1440Email: ula@dbpr.state.fl.us

• Unlicensed Investigators who focus on unlicensed activities.• Citation fines for advertising $1,000.• Citation fines for contracting $2,500.00• Fines for Unlicensed Contracting-$5,0000 per violation.• Increase in prosecutions through local State Attorneys.

Medias for Outreach

• Public Service Announcements (PSAs)• Newspaper articles, editorials,

advertisements• Billboards• Website• Brochures

Public Service Announcements

This year we partnered with Bob Vila. His web site is linked to the DBPR website.

Public Service Announcements

Brochures

Beware of Construction Con Artists, Who May:

• Target the elderly and uninformed, or the young and inexperienced.

• Focus on roofing and remodeling.• Solicit door-to-door, frequently traveling in unmarked

vehicles.• Give a post office box address instead of a street address.• Demand that you obtain the necessary building permits.• Ask for all or a large portion of the money up front.• Request that payments be made in cash.• Present a local occupational tax certificate as a “contractor’s

license.”

Certified vs. Registered Contractors

• A Certified contractor is licensed by the state through the DBPR. Certified contractors may work anywhere in the state and must be recognized by all local jurisdictions. Discipline is handled by the department.

• A Registered contractor is licensed by a local licensing board, and must register the license with DBPR for the license to be valid. A Registered contractor may work only in the local geographic area that issued the license, or any adjoining jurisdiction that offers reciprocity.

• Discipline of registered contractors is handled by the jurisdiction that issued the license.

Contractor’s License

Who Needs to be Licensed

• Generally, a state Certified or Registered contractor’s license is required for any structural additions or remodeling, roofing, air conditioning, plumbing, electrical/alarm work, pool/spa work, structural aluminum work, or any job which requires a building permit.

• In addition, many local jurisdictions have additional licensure requirements for other specialty contractors, such as pool cleaners, painting, drywall, masonry, tile and concrete work.

• You can verify local licensure requirements by contacting your building department.

Finding a Reputable and Reliable Contractor

• Ask to see the contractor’s registered or certified license. All state-generated licenses include a wallet card. Verify that the license you are shown confirms the person’s identity.

• Note the license number and check with the DBPR or your local building department to verify that the license is current and active.

• Determine how long the contractor has been in business.

• Ask for references of persons for whom the contractor has done work and CHECK THEM OUT.

Handymen • The state of Florida does not license or regulate those calling

themselves a handyman. Therefore a handyman is only permitted to perform minor repairs and cannot legally perform any of the work previously mentioned that requires a license.

• When a handyman expands their efforts from minor repairs to structural repairs or other work they are not authorized to do, they are entering the area of unlicensed activity and are subject to prosecution. Unlicensed activity is a misdemeanor for the first offense and becomes a felony upon the second offense.

• Be aware that contracts with unlicensed individuals are unenforceable under Florida law. (FS 489.128)

Occupational License(Business Tax) NOT A LICENSE

2006-2007 CITY OF _________________ BUSINESS TAX CERTIFICATE 2006-2007

TAX CERTIFICATE EXPIRES AUGUST 31, 2007

DBA: Woody’s Wood Work Account Number: 568564

LOCATION ADDRESS: 21 Main Street Type Code Sub Code: Type Description:

Any Town, FL 1 a Carpenter 32399

The firm, corporation, organization, business or individual whose name appears hereon has paid a business tax for the business activities indicated above, subject to city, state and federal laws. This certificate

must be conspicuously displayed at the location of the business activity. A change of location from the stated business location on this certificate as well as a change in ownership requires a transfer.

Local Competency Card, Journeyman Card and Registered Contractor’s License

We Need Your Help• Don’t hire unlicensed subcontractors. • Don’t pull permits for unlicensed persons or

companies.• Educate Consumers on dangers of hiring

unlicensed contractors.• Report unlicensed Activity to DBPR and Local

Code Enforcement Boards.• Encourage Subs to become licensed specialty

contractors. • Get to Know your local DBPR Staff.

Aiding and Assisting Unlicensed Contractors

• FS 489.129(1)(d) - Assisting Unlicensed Person to evade provisions of Chapter 489

• FS 489.129(1)(e) FS – Combining and conspiring with unlicensed person or entity.

• FS 489.129(1)(f) – Failure to qualify a firm, and/or acting in a name not on license.

• All of the above- Up to $5,000 and/ or probation, suspension or revocation.

• $500 Citation possible in cases with no financial harm.

• Public Complaint against license.

• FS 455.2277-The Department or the appropriate board shall report any criminal violation of any statute relating to the practice of a profession regulated by the Department or appropriate board to the proper prosecuting authority for prompt prosecution.

Remind Your Potential Customers:

• Ask to see the contractor’s registered or certified license. All state-generated licenses include a wallet card. Verify that the license you are shown confirms the person’s identity.

• Note the license number and check with the DBPR or your local building department to verify that the license is current and active.

• Determine how long the contractor has been in business.

• Ask for references of persons for whom the contractor has done work and CHECK THEM OUT.

Owner-Builder ExemptionSection 489.103(7), FS

• If you do not intend to do the work yourself and have been asked by someone without a contractor’s license to pull the permit, you are at risk of financial harm both by penalty and injury.

• Section 489.103(7), Florida Statutes states:– Owners must supervise the work being performed.– Any person working on your building who is not licensed must be

employed by you, which means that you must deduct F.I.C.A and withholding tax and provide workers’ compensation for that employee.

– Work is limited to a one or two family residence, farm outbuilding or commercial property up to $75,000 in total construction costs.

– The property cannot be sold for one year after construction is completed.• Not only is it dangerous, but it’s also a crime.

– Section 455.227, Florida Statutes: Any person who knowingly aides, assists, procures, employs or advises an unlicensed individual can be charged with a first degree misdemeanor and may face fines of up to $5,000 for each offense.

Be Sure Contracts Include:• The contractor’s name, address, telephone number and

professional license number. ($100 Citation possible)

• A detailed description of work to be completed and the quality and type of materials to be supplied, also known as the job specifications.

• A complete list of companies or individuals supplying the contractor with labor or materials.

• The total cost and a payment schedule tied to the completion of various stages of the project, also know as the draw schedule.

• Any financing information that is required by law or that is part of the transaction.

Be Sure Contracts Includes (cont’d)

• Any warranty agreements.

• A commencement and completion date.

• All necessary building permits or fees that will be the responsibility of the contractor. (The person that signs for the permit is responsible for the completion of the construction.)

• An agreement regarding site cleanup and debris disposal.

• If applicable.-a notice of the consumer’s rights under the Florida Homeowners’ Construction Recovery Fund for contracts involving general, residential and building contractors.

Moneys received by contractors

Section 489.126, Florida Statutes-• A contractor who receives, as initial payment more than 10

percent MUST:

1. Apply for permits necessary to do work within 30 days after the date payment is made.

2. Start the work within 90 days after the date all necessary permits are issued

Remind your customers of Florida’s Lien Law (cont’d)

To protect themselves:• Request a list of all subcontractors and suppliers who will

be providing services or materials to the property from the contractor.

• Obtain a Release of Lien, which is a written statement that removes the property from the threat of lien, from subcontractors and suppliers covering the work performed and the materials used.

• Before they make the last payment, be sure to obtain an affidavit from the contractor that specifies all unpaid parties and ensure that they receive final releases from these parties.

Report Unlicensed Activity How to File a Complaint

• Contractors can file an anonymous complaint against unlicensed persons:– www.MyFloridaLicense.com – call 850.487.1395 or contact – 1.866.532.1440. – or ULA@dbpr.state.fl.us.– Fax – 850.921.2124

• Submit all supporting documentation with your complaint. –advertising speaks for its self.

Contacting the Department• The Florida Department of Business and Professional Regulation

provides up-to-the-minute information about all of our licensed professionals online at www.MyFloridaLicense.com.

• Email ULA@dbpr.state.fl.us

• To verify a license, please call 850.487.1395.

• To report unlicensed activity toll-free, please call 1.866.532.1440.

• Mailing address: 1940 North Monroe StreetTallahassee, FL 32399