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PCS for HB 583 (2022): An act relating to limitations of actions other than for the recovery of real property

Summary

PCS for HB 583 (2022) is a bill to be entitled an act relating to limitations of actions other than for the recovery of real property. Section 1 amends s. 95.11, Florida Statutes, on actions founded on the design, planning, or construction of an improvement to real property, and the bill provides exceptions, definitions of "completion of an improvement" and "material violation", and rules for counterclaims, cross-claims, and third-party claims. Section 2 states that the amendments apply to any action commenced on or after July 1, 2022, with a savings period for certain actions to be commenced before July 1, 2023. Section 3 states that the act takes effect July 1, 2022.

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“PCS for HB 583 (2022): An act relating to limitations of actions other than for the recovery of real property.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-3101-regulatory-reform-subcommittee-proposed-committee-bills-pcbs-080384680a/, SHA-256 930f271f413fb0872b44eea83067c40502eb39db6edd2bbfe785f3c25c4d1124.

Full text

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           PCS for HB 583                                                                                       2022




    1                                          A bill to be entitled
    2              An act relating to limitations of actions other than
    3              for the recovery of real property; amending s. 95.11,
    4              F.S.; revising the period to bring actions for certain
    5              improvements to real property; providing exceptions;
    6              providing definitions; providing applicability;
    7              providing an effective date.
    8
    9      Be It Enacted by the Legislature of the State of Florida:
10
11                 Section 1.          Paragraph (c) of subsection (3) of section
12         95.11, Florida Statutes, is amended to read:
13                 95.11         Limitations other than for the recovery of real
14         property.—Actions other than for recovery of real property shall
15         be commenced as follows:
16                 (3)          WITHIN FOUR YEARS.—
17                 (c)          An action founded on the design, planning, or
18         construction of an improvement to real property:, with
19                 1.       the time running from the date of actual possession by
20         the owner, 45 days after the date of completion of the
21         improvement the issuance of a certificate of occupancy, or the
22         date of abandonment of construction if the improvement is not
23         completed, except: , or the date of completion of the contract
24         or termination of the contract between the professional
25         engineer, registered architect, or licensed contractor and his

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        PCS for HB 583                                                                                       2022




26      or her employer, whichever date is latest; except that, when the
27      action involves a latent defect, the time runs from the time the
28      defect is discovered or should have been discovered with the
29      exercise of due diligence. In any event, the action must be
30      commenced within 10 years after the date of actual possession by
31      the owner, the date of the issuance of a certificate of
32      occupancy, the date of abandonment of construction if not
33      completed, or the date of completion of the contract or
34      termination of the contract between the professional engineer,
35      registered architect, or licensed contractor and his or her
36      employer, whichever date is latest.
37              a.       If the action involves a latent defect, the action
38      must be commenced within 7 years, and the time begins to run 45
39      days after the completion of the improvement or the date of
40      abandonment of construction if the improvement is not completed.
41              b.       If the action alleges a material violation and the
42      person alleging the material violation can show by clear and
43      convincing evidence that the engineer, architect, or contractor
44      or his or her employer had actual knowledge of the material
45      violation at the time of the design, planning, or construction
46      of the improvement, the action must be commenced within 15
47      years, and the time begins to run 45 days after the completion
48      of the improvement or the date of abandonment of construction ,
49      if the improvement is not completed.
50              2. However, counterclaims, cross-claims, and third-party

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        PCS for HB 583                                                                                       2022




51      claims that arise out of the conduct, transaction, or occurrence
52      set out or attempted to be set out in a pleading may be
53      commenced up to 1 year after the pleading to which such claims
54      relate is served, even if such claims would otherwise be time
55      barred.
56              3.       As used in this paragraph:
57              a.       “Completion of an improvement” means issuance of the
58      certificate of occupancy or certificate of completion for the
59      improvement, or closing of the building permit for the
60      improvement, as defined in s. 553.79(17)(a), if the improvement
61      is not required to have a certificate of occupancy or
62      certificate of completion.
63              b.       “Material violation” means a violation of the Florida
64      Building Code that exists within a completed building,
65      structure, or facility which may reasonably result, or has
66      resulted, in death or personal injury to a person or significant
67      damage to the building, structure, facility, or its system, or
68      the performance of a building, structure, facility, or its
69      system.
70              c.       “Performance” means that the building, structure,
71      facility or system functions as it is intended and is able to be
72      used for its designed purpose.
73              d.       “Significant damage” means a level of adverse impact
74      to a building, structure, facility, or its system that results
75      or could reasonably result in economic damage or loss that

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         PCS for HB 583                                                                                       2022




 76      exceeds the common expectations, and the cost of restoring the
 77      damage or preventing such damage to the building, structure,
 78      facility, or its system would equal or exceed 25 percent of the
 79      market value of the building, structure, facility, or its system
 80      if built in accordance with the Florida Building Code. It does
 81      not include Florida Building Code violations that are cosmetic,
 82      minimal, or inconsequential to the overall performance of a
 83      building, structure, facility, or its systems. With respect to
 84      actions founded on the design, planning, or construction of an
 85      improvement to real property, if such construction is performed
 86      pursuant to a duly issued building permit and if a local
 87      enforcement agency, state enforcement agency, or special
 88      inspector, as those terms are defined in s. 553.71, has issued a
 89      final certificate of occupancy or certificate of completion,
 90      then as to the construction which is within the scope of such
 91      building permit and certificate, the correction of defects to
 92      completed work or repair of completed work, whether performed
 93      under warranty or otherwise, does not extend the period of time
 94      within which an action must be commenced. Completion of the
 95      contract means the later of the date of final performance of all
 96      the contracted services or the date that final payment for such
 97      services becomes due without regard to the date final payment is
 98      made.
 99              Section 2. The amendments to s. 95.11(3)(c), Florida
100      Statutes, made by this act shall apply to any action commenced

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         PCS for HB 583                                                                                       2022




101      on or after July 1, 2022, regardless of when the cause of action
102      accrued, except that any action that would not have been barred
103      under s. 95.11(3)(c), Florida Statutes, prior to the amendments
104      made by this act may be commenced before July 1, 2023, and if it
105      is not commenced by that date and is barred by the amendments to
106      s. 95.11(3)(c), Florida Statutes, made by this act, it shall be
107      barred.
108              Section 3.         This act shall take effect July 1, 2022.




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