Florida Enacts Changes to Contractor Licensing Requirements

*Since this post was originally written, some new information has been provided by the Construction Industry Licensing Board — you can click here to view that.

On July 1, 2020, Governor Desantis signed the Occupational Freedom and Opportunity Act. The Act modifies many existing licensing requirements within the state, across a broad range of professions, from architects to veterinarians. The purpose of the act was to “remove unnecessary barriers for individuals pursuing their professional aspirations.” The biggest practical impact on Florida’s contractors will be new reciprocity provisions within the statute and a reduction in certain continuing education requirements.

While more details are provided below, here is a short summary of the key changes Chapter 455, Florida Statutes, and Chapter 489, Florida Statutes.

Though these changes went into effect on July 1, 2020, it may take some time for the DBPR and other construction industry boards to implement them or for the changes to be noted on their websites. If you want to view the entire statute, please click here. You can also read a summary of the entire bill by the Florida Governor’s office by clicking here. And feel free to reach out to me directly if you have any questions. Full details of the changes are below!

General Changes for Contractors

Florida’s contractors, like many professions are governed by the Florida Division of Business and Professional Regulations. Two sections of the general licensing statute, Chapter 455, Florida Statutes, were modified and will impact contractors.

First, As part of the Act, the DBPR is required to create or require any boards operating underneath it to enter into reciprocal licensing agreements with similar entities in other states. In essence, this means that the DBPR or related board can enter into reciprocity agreements with other states, or can determine another state’s licensing requirements or examinations to be substantially equivalent or more stringent to those in this state and allow reciprocity. Any states that Florida considers reciprocal will be posted online.

Further, the DBPR will not be able to suspend or revoke a license of any person who is in default on or delinquent in the payment of his or her student loans solely on the basis of such default or delinquency.

Specific Changes to Building Contractor Licensing

In addition to the general changes above, the Act made three changes to Chapter 489, Florida Statutes, the statute that specifically governs building and trade contractors in Florida.

  1. Previously, any work or operation of a casual, minor, or inconsequential nature, where the total contract was $1,000.00 or less, did not require a license under Chapter 489, Florida Statutes , to perform. As of July 1, 2020, that limit was increased to $2,500.00. But, a person cannot split work into multiple contracts of less than $2,500.00 to perform a larger or major operation in order to evade the licensing requirements of Chapter 489, Florida Statutes.
  2. The time and type of examination that must be passed to become certain types of licensed contractors has changed. First, if an applicant has received a baccalaureate degree in building construction from an accredited 4-year college, or a related degree as approved by the board by rule, and has a 3.0 grade point average or higher, such applicant is only required to take and pass the business and finance portion of the exam. Second, various contractors no longer have to wait until they have a minimum number of years of experience to take certain exams, nor do they have to move through certain licenses in a progression. Once a contract has a license, they will generally be able to take the exam for another license at any time and can receive the new license once they meet the experience requirements. In essence this changes the prior requirement that a contractor have a certain amount of experience before taking another licensing exam. This change specifically applies to the following licenses.
  3. The contractor’s licensing board can now certify as qualified for certification by endorsement anyone who has held a valid, current license to practice contracting issued by another state or territory of the United States for at least 10 years before the date of application and is applying for the same or similar license in this state, subject to insurance, financial responsibility, and ethical qualifications. The board may consider an applicant’s technical competence to ensure the applicant is able to meet the requirements of this state’s codes and standards for wind mitigation and water intrusion. The board may also consider whether such applicable has had a license to practice contracting revoked, suspended, or otherwise acted against by the licensing authority of another state, territory, or country. Such application must be made either when the license in another state or territory is active or within 2 years after such license was last active. Division I contractors and roofing contractors must complete a 2 hour course on the Florida building code which includes information on wind mitigation and techniques. The required courses may be completed online.

Specific Changes to Electrical Contractor Licensing

The Act also made comparable changes to the portion of Chapter 489, Florida Statutes, that governs electrical contractors, as follows:

  1. The electrical contractor’s licensing board can now certify as qualified for certification by endorsement anyone who has held a valid current license to practice electrical or alarm system contracting issued by another stated or territory of the United States for at least 10 years before the date of application and is applying for the same or similar license in this state, subject to other qualifications. Such application must be made either when the license in another state or territory is active or within 2 years after such license was last active. Electrical contractors and alarm system contractors must complete a 2-hour course on the Florida Building Code. The required course may be completed online
  2. Electrical and alarm system contractor continuing education requirements are modified as follows:

*Since this post was originally written, some new information has been provided by the Construction Industry Licensing Board — you can click here to view that.