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House Staff Analysis: PCS for HB 1431 Specialty Contracting Services (Regulatory Reform Subcommittee)

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Congressional materials
Document type
2021 3101 Regulatory Reform Subcommittee Proposed Committee Bill Analyses Fn Pcs1431 Rrs
Case
2021 3101 Regulatory Reform Subcommittee Proposed Committee Bill Analyses Fn Pcs1431 Rrs

Summary

A House of Representatives staff analysis of Bill PCS for HB 1431, Specialty Contracting Services, sponsored by the Regulatory Reform Subcommittee and dated 3/22/2021. The analysis sets out current law on certified and registered construction contractors licensed by the Construction Industry Licensing Board within the Department of Business and Professional Regulation, and on commercial and residential pool/spa contractors. It states the bill amends s. 489.117, F.S. to let unlicensed persons perform specialty contracting work on commercial or residential swimming pools, interactive water features, hot tubs and spas without a specialty contractor or local license, if they work under the supervision of a licensed pool/spa contractor and within that license's scope. It reports no fiscal impact on state or local governments and an effective date of July 1, 2021.

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Cite this document

“House Staff Analysis: PCS for HB 1431 Specialty Contracting Services (Regulatory Reform Subcommittee).” Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-3101-regulatory-reform-subcommittee-proposed-committee-bill-analyses-fn-pcs1431-rrs/, SHA-256 c56be97c601299d66b1783891378701e55cdf3705a053bcaa54756c59530e5eb.

Full text

                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 1431 Specialty Contracting Services
SPONSOR(S): Regulatory Reform Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

    REFERENCE                                                        ACTION                   ANALYST              STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

    Orig. Comm.: Regulatory Reform Subcommittee                                               Brackett             Anstead

                                                         SUMMARY ANALYSIS
Construction Contractors, including pool/spa contractors, are certified by or registered with the Construction
Industry Licensing Board (CILB) housed within the Department of Business and Professional Regulation.
Certified contractors can practice statewide and are licensed and regulated by the CILB. Registered
contractors are licensed and regulated by a local jurisdiction and may practice within that locality. Registered
contractors are required to register their license with the CILB.

Specialty contractors are contractors whose scope of work is limited to a particular phase of construction that is
a subset of a certified contractor’s scope of work, such as drywall or demolition. Specialty contractor licenses
are created by the CILB through rulemaking. Specialty contractors certified by the CILB are permitted to
practice in any jurisdiction in the state. The CILB has created eight types of pool/spa specialty contractors.

In order to perform contracting in the state, a person must be certified or registered (licensed) as a contractor,
be an employee of a licensed contractor, or fall under an exemption provided in current law.

The bill creates a new exemption to licensure requirements by allowing unlicensed persons to perform the
work of specialty contractors for the construction, remodeling, repair, or improvement of commercial or
residential swimming pools, interactive water features, hot tubs, and spas without obtaining a specialty
contractor license or local license.

The bill only allows the unlicensed person to perform the work if:

        the unlicensed person is under the supervision of a licensed commercial or residential pool/spa
         contractor or swimming pool/spa servicing contractor;
        the work is within the scope of the supervising contractor’s license;
        the supervising contractor is responsible for the work; and
        the work does not require licensure as a roofing, sheet metal, air-conditioning, mechanical, plumbing,
         solar, underground utility and excavation contractor, or electrical contractor.

The bill does not require a direct contract between the commercial or residential pool/spa contractor or
swimming pool/spa servicing contractor and the unlicensed person performing the specialty contracting
services, or require the unlicensed person to be an employee of the supervising pool/spa contractor.

The bill does not have a fiscal impact on state and local governments.

The bill provides for an effective date of July 1, 2021.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs1431.RRS
DATE: 3/22/2021
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Current Situation

        Contractors

        Contractors are regulated by ch. 489, F.S., which outlines the law pertaining to contractors in the state
        of Florida. Part I of ch. 489, F.S., covers construction contracting regulated by the Construction Industry
        Licensing Board (CILB) and pt. II of ch. 489, F.S., covers electrical/alarm system contracting regulated
        by the Electrical Contractors’ Licensing Board. Both boards are housed in the Department of Business
        and Professional Regulation (DBPR).

        Construction contractors are either certified or registered by the CILB. The CILB consists of 18
        members who are appointed by the Governor and confirmed by the Senate. The CILB meets to
        approve or deny applications for licensure, review disciplinary cases, and conduct informal hearings
        relating to discipline.1

        "Certified contractors" are individuals who pass the state competency examination and obtain a
        certificate of competency issued by DBPR. Certified contractors are able to obtain a certificate of
        competency for a specific license category and are permitted to practice in that category in any
        jurisdiction in the state.2

        “Registered contractors” are individuals that have taken and passed a local competency examination
        and can practice the specific category of contracting for which he or she is approved, only in the local
        jurisdiction for which the license is issued. Registered contractors must register their license with the
        CILB after obtaining a local license.3

        In order to perform construction contracting in the state, a person must be certified or registered as a
        contractor, be an employee4 of a certified or registered contractor, or fall under an exemption provided
        in current law.5

        Swimming Pool/Spa Contractors

        “Commercial pool/spa contractors” are individuals who are certified or registered to construct, repair,
        and service any public or private swimming pool, hot tub, or spa including:6

                Installing, repairing, or replacing existing equipment;
                Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
                 changes;
                Installing new pool/spa equipment, interior finishes, package pool heaters, and perimeter piping
                 and filter piping;
                Constructing equipment rooms or housing for pool/spa equipment; and
                The scope of work of a swimming pool/spa servicing contractor.

        “Residential pool/spa contractors” are individuals who are certified or registered to construct repair, and
        service any residential swimming pool, hot tub, or spa. The scope of work is identical to the scope of

1
  S. 489.107, F.S.
2
  S. 489.105, F.S.
3
  Ss. 489.105, and 489.117, F.S.
4
  “Employee” means a person who receives compensation from and is under the supervision and control of an employer who regularly
deducts the F.I.C.A. and withholding tax and provides workers’ compensation, all as prescribed by law. S. 489.103(2)(b), F.S.
5
  Ss. 489.103(2), and 489.113, F.S.
6
  S. 489.105(3)(j), F.S.
STORAGE NAME: pcs1431.RRS                                                                                               PAGE: 2
DATE: 3/22/2021
        work for commercial pool/spa contractors; however, residential pool/spa contractors may only work on
        residential swimming pools, hot tubs, and spas.7

        “Swimming pool/spa servicing contractors” are individuals who are certified or registered to repair and
        service any public or private swimming pool, hot tub, or spa including:8

                Repairing or replacing existing equipment;
                Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
                 changes;
                Installing new pool/spa equipment and interior refinishing;
                Reinstalling or adding pool heaters;
                Repairing or replacing perimeter piping and filter piping;
                Repairing equipment rooms or housing for pool/spa equipment; and
                Substantially or completing draining a swimming pool, or hot tub or spa, for the purpose of
                 repair or renovation.

        The scope of work for all three types of swimming pool/spa contractors does not include direct
        connections to a sanitary sewer system or to potable water lines.9

        Water treatment or cleaning a pool or spa does not require a license unless the structural integrity of
        the pool or spa is affected, or equipment attached to the pool or spa must be substantially or completely
        disassembled or replaced in order to treat the water or clean the pool. Installing an aboveground pool
        also does not require a license.10

        A contractor, including pool/spa contractors, must subcontract all electrical, mechanical, plumbing,
        roofing, sheet metal, and air-conditioning work, to a contractor certified or registered in the respective
        category, unless the pool/spa contractor also holds a state certificate or registration in the respective
        category.11

        In order to obtain certification as one of the swimming pool/spa contractors, a person must:12

                Apply to DBPR in writing;
                Be 18 years of age;
                Be of good moral character;
                Pass the examination for the certification sought; and
                Have one of the following:
                    o A bachelor degree from a four year college in the appropriate field of engineering,
                        architecture, or building construction, and one year of proven experience;
                    o Four years of experience as a foreman or a skilled worker with at least one year as a
                        foreman;
                    o A combination of college and experience as a foreman or skilled worker that equals four
                        years with at least one of the years as a foreman; or
                    o One year of experience and 60 hours of instruction courses approved by the CILB;
                        however, this only applies to swimming pool/spa servicing contractors.

        Swimming Pool/Spa Specialty Contractors

        “Certified specialty contractors” are contractors whose scope of work is limited to a particular phase of
        construction that is a subset of a certified contractor’s scope of work, such as a drywall specialty

7
  S. 489.105(3)(k), F.S.
8
  S. 489.105(3)(l), F.S.
9
  S. 489.105, F.S.
10
   Ss. 489.103(6), and 489.105, F.S.; DBPR, Trust but Verify,
http://www.myfloridalicense.com/dbpr/reg/documents/trustbutverify_000.pdf?x40199 (last visited Mar. 19, 2021).
11
   S. 489.113(3), F.S.
12
   Ss. 489.111, & 489.113, F.S.
STORAGE NAME: pcs1431.RRS                                                                                        PAGE: 3
DATE: 3/22/2021
        license or a demolition specialty license. Certified specialty contractor licenses are created by the CILB
        through rulemaking. Certified specialty contractors are permitted to practice in any jurisdiction in the
        state.13

        The CILB has created eight types of pool/spa specialty contractor certifications. Pool/spa specialty
        contractors, except residential swimming pool/spa servicing specialty contractors, must work under
        contract with and under the supervision of a licensed swimming pool/spa contractor. However, they are
        not required to be employees of a licensed pool/spa contractor.14

        The CILB has created the following eight types of pool/spa specialty contractors:15

                 Swimming Pool Layout Specialty Contractor-
                     o The scope of work is limited to the layout, shaping, steel installation, and rough piping of
                        pools, spas, and hot tub shells.
                 Swimming Pool Structural Specialty Contractor-
                     o The scope of work is limited to the shaping and shooting of gunite, shotcrete, concrete,
                        or similar product mix used in the construction of swimming pools and spas, and the
                        installation of fiberglass shells and vinyl liners.
                 Swimming Pool Excavation Specialty Contractors –
                     o The scope of work is limited to the excavation and earthmoving for the installation of
                        pools, spas, and hot tub shells;
                 Swimming Pool Trim Specialty Contractor –
                     o The scope of work is limited to the installation of tile and coping for pools, spas, hot tub
                        shells, and decorative or interactive water displays;
                 Swimming Pool Decking Specialty Contractor-
                     o The scope of work is limited to the construction and installation of concrete flatwork,
                        pavers and bricks, retaining walls, and footings associated with the construction of
                        pools, spas, and hot tub shells.
                 Swimming Pool Piping Specialty Contractor-
                     o The scope of work is limited to the installation of piping or the installation of circulating,
                        filtering, disinfecting, controlling, or monitoring equipment and devices used in the
                        construction of pools, spas, hot tubs, and decorative or interactive water displays or
                        areas.
                 Swimming Pool Finishes Specialty Contractor-
                     o The scope of work is limited to the coating or plastering of the interior surfaces of pools,
                        spas, or hot tub shells.
                 Residential swimming pool/spa servicing specialty contractor-
                     o The scope of work is identical to the scope of work for swimming pool/spa servicing
                        contractors; however, they may only work on residential swimming pools, hot tubs, and
                        spas.

        In order to obtain one of the certified specialty pool/spa contractor a person must:16

                 Submit a written application to the CILB;
                 Be at least 18 years of age;
                 Be of good moral character;
                 Pass a written examination for the specialty pool/spa contractor category sought; and
                 Demonstrate four years of experience in the specialty pool/spa contractor category sought, or
                  one year of experience and 60 hours of instruction courses approved by the CILB; however,
                  the one year of experience only applies to residential swimming pool/spa servicing contractors.


13
   S. 489.105(3)(q), F.S.
14
   Rule 61G4-15.032, F.A.C.; Rule 61G4-15.040, F.A.C.
15
   Id.
16
   Rule 61G4-15.032, F.A.C.; Email from Colton Madill, Deputy Legislative Affairs Director, DBPR, RE: Pool Contractor
Information, (Jan. 31, 2020).
STORAGE NAME: pcs1431.RRS                                                                                               PAGE: 4
DATE: 3/22/2021
         Exemptions from Licensure

         An unlicensed person may perform work that falls under the scope of contracting if they fall under an
         exemption provided in current law. Currently, there are 23 exemptions provided in current law,
         including:17

                 a person performing contracting if it is casual, minor, or inconsequential in nature, and the
                  aggregate contract price for all labor and materials is less than $2,500, subject to certain
                  requirements. This is referred to as the handyman exemption;

                 an owner building or improving one or two-family residences, farm outbuildings, or improving
                  commercial buildings at a cost that does not exceed $75,000, subject to certain requirements;

                 an employee of an apartment community or apartment management company who makes
                  minor repairs to existing electric water heaters, electric heating, ventilating, and air-conditioning
                  systems subject to certain requirements;

                 a person who sells or installs any finished products, materials, or articles of merchandise that
                  are not fabricated into and do not become a permanent part of a structure such as awnings; and

                 An employee of the United States, the state, or any municipality, county, irrigation district,
                  reclamation district, or political subdivision, except school boards, state university boards of
                  trustees, and community college boards of trustee, subject to certain requirements.

         Another exemption allows an unlicensed person to perform contracting if the person is under the
         supervision of licensed general, building, or residential contractor, and the work does not require
         licensure as a roofing, sheet metal, air-conditioning, mechanical, pool/spa, plumbing, solar, or
         underground utility and excavation contractor.

         The work must be within the scope of the supervising contractor’s license, and the supervising
         contractor must also be responsible for the work. The unlicensed person must have a direct contract
         with the contractor. However, this is an exemption from state licensure requirements and it does not
         affect the ability of local governments to impose licensing requirements on unlicensed persons.18

         Effect of the Bill

         The bill creates an additional exemption to contractor licensure. The bill provides that unlicensed
         persons may perform the work of specialty contractors for the construction, remodeling, repair, or
         improvement of commercial or residential swimming pools, interactive water features,19 hot tubs, and
         spas without obtaining a specialty contractor license or local license.

         The bill only allows the unlicensed person to perform the work if:

                 the unlicensed person is under the supervision of a licensed commercial or residential pool/spa
                  contractor or swimming pool/spa servicing contractor;
                 the work is within the scope of the supervising contractor’s license;
                 the supervising contractor is responsible for the work; and
                 the work does not require licensure as a roofing, sheet metal, air-conditioning, mechanical,
                  plumbing, solar, underground utility and excavation contractor, or electrical contractor.

17
   S. 489.103, F.S.
18
   S. 489.113(2), F.S.; Florida Home Builders Association v. St. Johns County, 914 So. 2d 1035 (Fla. 5th DCA 2005).
19
   The Florida Building Code defines “interactive water features” as structure designed to allow for recreational activities with
recirculated, filtered, and treated water; but having minimal standing water. Water from the interactive fountain type features is
collected by gravity below grade in a collector tank or sump. The water is filtered, disinfected and then pumped to the feature spray
discharge heads. The collector tank and water filtration features required make this structure a type of public swimming pool. Section
454 of the Seventh edition of the Florida Building Code (Building).
STORAGE NAME: pcs1431.RRS                                                                                                      PAGE: 5
DATE: 3/22/2021
       The bill does not require a direct contract between the commercial or residential pool/spa contractor or
       swimming pool/spa servicing contractor and the unlicensed person performing the specialty contracting
       services, or require the unlicensed person to be an employee of the supervising pool/spa contractor.

   B. SECTION DIRECTORY:
       Section 1.     Amends s. 489.117, F.S., creating an exemption to licensure requirements.

       Section 2.     Provides an effective date of July 1, 2021.


                        II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may have a positive impact on the private sector by allowing persons, who are under the
       supervision of licensed pool/spa contractors, to perform work on pools, spas, hot tubs, and interactive
       water features without having to obtain a license. This may also result in certain projects being
       completed in less time and at a lower cost to consumers.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
STORAGE NAME: pcs1431.RRS                                                                                 PAGE: 6
DATE: 3/22/2021
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       No.


                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcs1431.RRS                                                  PAGE: 7
DATE: 3/22/2021


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