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<div class="yiv0158173483MsoNormal"><span style="background-color: transparent;"> Please find the emails setting forth the positions of RPPTL being argued this week before the Florida legislature. RPPTL via the RPPTL lobbyist is supporting amendments to SB 622 and HB 473 as set forth below.</span><br>
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<div class="yiv0158173483MsoNormal">Please share your opinions on this issue with the entire CLC.</div>
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<div class="yiv0158173483MsoNormal">Sincerely,</div>
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<div class="yiv0158173483MsoNormal">Barry Kalmanson</div>
<div class="yiv0158173483MsoNormal">500 N. Maitland Avenue</div>
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<div class="yiv0158173483MsoNormal">Maitland, Fl. 32751</div>
<div class="yiv0158173483MsoNormal">407-645-4500 x 215</div>
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<div class="yiv0158173483MsoNormal"><a rel="nofollow noopener noreferrer" target="_blank" href="http://www.barrykalmanson.com/">WWW.BARRYKALMANSON.COM</a> </div>
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<div class="yiv0158173483MsoNormal"><b>From:</b> Warren Husband <<a rel="nofollow noopener noreferrer" ymailto="mailto:whh@MHDFirm.com" target="_blank" href="mailto:whh@MHDFirm.com">whh@MHDFirm.com</a>> <br>
<b>Sent:</b> Monday, February 22, 2021 1:19 PM<br>
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<b>Cc:</b> French Brown (<a rel="nofollow noopener noreferrer" ymailto="mailto:FBrown@deanmead.com" target="_blank" href="mailto:FBrown@deanmead.com">FBrown@deanmead.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:FBrown@deanmead.com" target="_blank" href="mailto:FBrown@deanmead.com">FBrown@deanmead.com</a>>; Carol Bowen (<a rel="nofollow noopener noreferrer" ymailto="mailto:cbowen@abceastflorida.com" target="_blank" href="mailto:cbowen@abceastflorida.com">cbowen@abceastflorida.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:cbowen@abceastflorida.com" target="_blank" href="mailto:cbowen@abceastflorida.com">cbowen@abceastflorida.com</a>>; Kari Hebrank (<a rel="nofollow noopener noreferrer" ymailto="mailto:KHebrank@carltonfields.com" target="_blank" href="mailto:KHebrank@carltonfields.com">KHebrank@carltonfields.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:KHebrank@carltonfields.com" target="_blank" href="mailto:KHebrank@carltonfields.com">KHebrank@carltonfields.com</a>>; Rusty Payton (<a rel="nofollow noopener noreferrer" ymailto="mailto:rpayton@fhba.com" target="_blank" href="mailto:rpayton@fhba.com">rpayton@fhba.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:rpayton@fhba.com" target="_blank" href="mailto:rpayton@fhba.com">rpayton@fhba.com</a>><br>
<b>Subject:</b> RE: Construction Liens and Bonds - CS/SB 622 and HB 473 (Status Update)</div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;color:#1F497D;">Sure. For example, if you are the owner or lender, you do not have a contract with the subs, subs-subs, or suppliers (same for the general contractor with respect to the sub-subs and suppliers), so you might want the lien waivers obtained from each of these potential lienors during the course of construction to warrant the following to the owner, lender, and/or general contractor:</span></div>
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<ol style="margin-top:0in;" start="1" type="1"><li class="yiv0158173483MsoListParagraphCxSpFirst" style="color:#1F497D;margin-left:0in;"><span style="font-size:12.0pt;">Warrant that the work performed or material supplied under the lien waiver is in accordance with the lienor’s contract.</span></li></ol>
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<ol style="margin-top:0in;" start="2" type="1"><li class="yiv0158173483MsoListParagraphCxSpMiddle" style="color:#1F497D;margin-left:0in;"><span style="font-size:12.0pt;">Warrant that the work performed or material supplied under the lien waiver is in accordance with the Florida Building Code (and any required product approvals under the Code).</span></li></ol>
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<ol style="margin-top:0in;" start="3" type="1"><li class="yiv0158173483MsoListParagraphCxSpMiddle" style="color:#1F497D;margin-left:0in;"><span style="font-size:12.0pt;">Warrant that the work under the lien waiver was performed in a workmanlike manner (for a sub or sub-sub).</span></li></ol>
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<ol style="margin-top:0in;" start="4" type="1"><li class="yiv0158173483MsoListParagraphCxSpMiddle" style="color:#1F497D;margin-left:0in;"><span style="font-size:12.0pt;">Warrant that the materials supplied under the lien waiver were new and of good quality (for a supplier). </span></li></ol>
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<ol style="margin-top:0in;" start="5" type="1"><li class="yiv0158173483MsoListParagraphCxSpMiddle" style="color:#1F497D;margin-left:0in;"><span style="font-size:12.0pt;">Warrant that the lienor has not assigned its lien rights to another party.</span></li></ol>
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<ol style="margin-top:0in;" start="6" type="1"><li class="yiv0158173483MsoListParagraphCxSpLast" style="color:#1F497D;margin-left:0in;"><span style="font-size:12.0pt;">Warrant that the lienor is not delinquent in paying any of its subs or suppliers on the project.</span></li></ol>
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<div class="yiv0158173483MsoNormal"><span style="font-size:10.0pt;font-family:"Garamond", serif;color:#1F497D;">This transmission and its attachments, if any, may contain confidential and legally privileged information. If you are not an intended recipient, you are hereby notified that any review, distribution, duplication, or use of any of the information contained in or attached to this transmission is strictly prohibited. If you are not an intended recipient, please immediately notify us by reply e-mail and destroy the original transmission and its attachments without reading or saving in any manner. Please note that this transmission does not create an attorney-client relationship if the recipient is not already a client.</span></div>
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<div class="yiv0158173483MsoNormal"><b>From:</b> Warren Husband <<a rel="nofollow noopener noreferrer" ymailto="mailto:whh@MHDFirm.com" target="_blank" href="mailto:whh@MHDFirm.com">whh@MHDFirm.com</a>> <br>
<b>Sent:</b> Friday, February 19, 2021 9:46 AM<br>
<b>To:</b> <a rel="nofollow noopener noreferrer" ymailto="mailto:perry.keith@flsenate.gov" target="_blank" href="mailto:perry.keith@flsenate.gov">perry.keith@flsenate.gov</a>; <a rel="nofollow noopener noreferrer" ymailto="mailto:Jackie.Toledo@myfloridahouse.gov" target="_blank" href="mailto:Jackie.Toledo@myfloridahouse.gov">Jackie.Toledo@myfloridahouse.gov</a>; Ramba, Megan <<a rel="nofollow noopener noreferrer" ymailto="mailto:Ramba.Megan@flsenate.gov" target="_blank" href="mailto:Ramba.Megan@flsenate.gov">Ramba.Megan@flsenate.gov</a>>; Clemens, Clayton <<a rel="nofollow noopener noreferrer" ymailto="mailto:Clayton.Clemens@myfloridahouse.gov" target="_blank" href="mailto:Clayton.Clemens@myfloridahouse.gov">Clayton.Clemens@myfloridahouse.gov</a>><br>
<b>Cc:</b> French Brown (<a rel="nofollow noopener noreferrer" ymailto="mailto:FBrown@deanmead.com" target="_blank" href="mailto:FBrown@deanmead.com">FBrown@deanmead.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:FBrown@deanmead.com" target="_blank" href="mailto:FBrown@deanmead.com">FBrown@deanmead.com</a>>; Carol Bowen (<a rel="nofollow noopener noreferrer" ymailto="mailto:cbowen@abceastflorida.com" target="_blank" href="mailto:cbowen@abceastflorida.com">cbowen@abceastflorida.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:cbowen@abceastflorida.com" target="_blank" href="mailto:cbowen@abceastflorida.com">cbowen@abceastflorida.com</a>>; Kari Hebrank (<a rel="nofollow noopener noreferrer" ymailto="mailto:KHebrank@carltonfields.com" target="_blank" href="mailto:KHebrank@carltonfields.com">KHebrank@carltonfields.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:KHebrank@carltonfields.com" target="_blank" href="mailto:KHebrank@carltonfields.com">KHebrank@carltonfields.com</a>>; Rusty Payton (<a rel="nofollow noopener noreferrer" ymailto="mailto:rpayton@fhba.com" target="_blank" href="mailto:rpayton@fhba.com">rpayton@fhba.com</a>) <<a rel="nofollow noopener noreferrer" ymailto="mailto:rpayton@fhba.com" target="_blank" href="mailto:rpayton@fhba.com">rpayton@fhba.com</a>><br>
<b>Subject:</b> Construction Liens and Bonds - CS/SB 622 and HB 473 (Status Update)</div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">Good morning, one and all. On behalf of RPPTL, AGC, ABC, and the Home Builders, we wanted to touch base with Sen. Perry, Rep. Toledo, and Melissa on where we currently stand as we try to resolve our remaining concerns with this bill.</span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">In sum, as the bill now stands in the form of CS/SB 622, there are three issues remaining from our earlier correspondence, which involve the provisions on: (a) lien waivers, (2) service address for lien documents, and (3) the conditions for filing a single claim of lien. </span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">In the attached document, we propose a compromise in which we would recede from our objections and accept the current language in the bill with respect to the last two items: service address and single claim of lien.</span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">On the lien waiver issue, we would also accept the language last proposed by the Suppliers stating that lien waivers “shall” (rather than “may”) substantially comply with the statutory form. On the Suppliers’ proposed language below that would render a waiver unenforceable if it varies from the statutory waiver form, however, we simply cannot agree that this is sound public policy.</span></div>
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<div class="yiv0158173483MsoListParagraph" style="margin-left:.3in;text-indent:.25in;"><span style="font-size:12.0pt;color:red;">(8) A lien waiver or lien release that is not substantially similar to the forms in subsections (4) and (5) is <u>not</u> enforceable in accordance with the terms of the lien waiver or lien release.</span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">As proposed, the language would render a lien waiver that includes any “extra” terms completely unenforceable, even with respect to its waiver of lien rights and even if the lienor had entered into a contract agreeing to the “extra” terms or to the use of a non-statutory waiver form.</span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">While there are positive elements in the bill that would be helpful across all segments of the construction industry, the problems created by this proposed language simply outweigh the positive elements and make it impossible for us to support the bill.</span></div>
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<div class="yiv0158173483MsoNormal"><u><span style="font-size:12.0pt;font-family:"Garamond", serif;">However</span></u><span style="font-size:12.0pt;font-family:"Garamond", serif;">, we are suggesting alternative language that we genuinely believe will accomplish the objectives of the Suppliers. As explained to us, the Suppliers do not want to be bound by the terms of lengthy and complicated waiver forms that their customers (subs and sub-subs) are pressuring them to sign in the context of those customers seeking progress payments or final payments on a job. </span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">We have no issue with that concept <b><u>unless</u></b> the Supplier has entered into a contract in which they agreed to the “extra” terms or to the use of a non-statutory waiver form. As explained in the attached document, the language we propose is as follows: </span></div>
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<div class="yiv0158173483MsoNormal" style="margin-left:.5in;text-indent:.25in;"><span style="font-size:12.0pt;font-family:"Garamond", serif;"> <span style="color:#0070C0;">(8) A lien waiver or lien release that is not substantially similar to the forms in subsections (4) and (5) is enforceable <u>only to the extent of its release or waiver of lien rights or as otherwise agreed to in the lienor’s contract</u> <s>in accordance with the terms of the lien waiver or lien release</s>.</span></span></div>
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<div class="yiv0158173483MsoNormal"><u><span style="font-size:12.0pt;font-family:"Garamond", serif;">Importantly, this language should still afford the Suppliers what they want</span></u><span style="font-size:12.0pt;font-family:"Garamond", serif;"> -- the capacity to sign all manner of waiver forms, even those with “extra” terms, without fear that those “extra” terms are enforceable, so long as the Supplier has not signed a contract agreeing to the “extra” terms or to the use of a non-statutory waiver form. </span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">We remain ready to discuss the matter further with all involved, and we continue to believe that a resolution is possible. </span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">Thanks to everyone for their efforts on this bill. </span></div>
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<div class="yiv0158173483MsoNormal"><span style="font-size:12.0pt;font-family:"Garamond", serif;">I hope everyone has a good weekend after this lengthy committee week! </span></div>
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