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Leon County
Board of County Commissioners Cover Sheet for Agenda #14 March 8, 2022 |
| To: | Honorable Chairman and Members of the Board |
| From: | Vincent S. Long, County Administrator |
| Title: | Annual Fiscal Year 2021 Leon County Contractors Licensing Board Report |
| Review and Approval: | Vincent S. Long, County Administrator |
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Department/Division Review and Approval: |
Alan Rosenzweig, Deputy County Administrator Ken Morris, Assistant County Administrator Barry Wilcox, Director, Development Support & Environmental Management |
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Lead Staff/ Project Team: |
Scott Brockmeier, Chief Development Resources Officer Emma Smith, Director, Code Compliance Services Jessica Lowe, Code Compliance Supervisor |
Statement of Issue:
This item seeks Board acceptance of the Annual FY 2021 Leon County Contractors Licensing Board Report and seeks Board direction to consider sunsetting the Contractors Licensing Board at a future public hearing.
Fiscal Impact:
This item has no fiscal impact. Should the Board proceed to sunset the Leon County Contractors Licensing Board and local licensing program at a future public hearing, there will be a minimal fiscal impact to the County. In FY 2021, the County collected $4,911 in licensing revenues, down 43.7% in the last five years.
Staff Recommendation:
Option #1: Accept the Annual FY 2021 Contractors Licensing Board Report.
Option #2: Direct staff to draft changes to amend the Code of Laws Chapter 5, Building Code and Chapter 10, Land Development Code, to sunset the Leon County Contractors Licensing Board, and schedule for Board consideration for approval via the public hearing process.
Report and Discussion
Background:
This item seeks Board acceptance of the Annual FY 2021 Leon County Contractors Licensing Board Report (Attachment #1) and seeks Board direction to sunset the Contractors Licensing Board at a future public hearing.
The Leon County Contractors Licensing Board (CLB) is empowered by Ordinance to enforce Chapter 5, Article III of the Leon County Code of Laws, as well as Chapter 489, Florida Statutes, to regulate contractor licensing pursuant to general law and has the authority to take disciplinary actions. The CLB’s responsibilities include review and approval of applications for licensing and review of complaints filed against licensed contractors operating in Leon County. The CLB consists of seven members appointed by the Board for three-year terms. The CLB is scheduled to meet on the first Thursday of each month, if needed, and is supported by Development Support & Environmental Management (DSEM) staff. At the hearings, the CLB is represented by counsel from the County Attorney’s Office.
Each year staff prepares an agenda item to keep the Board apprised of CLB activities through the presentation of an annual report. These annual reports show a steady decline in CLB activity associated with contractor licensing and regulation. Moreover, no construction industry complaints have been filed with the County since 2017 requiring the CLB to convene. A contractor that is licensed by the state is not required to fulfill the competency requirements of a local jurisdiction. Of the 1,392 contractors listed as active in Leon County 1,382 (99.3%) of them are licensed through the State.
Recent state legislation furthers the trend of shifting greater responsibility for the regulation of contractors and issuance of specialty licenses to the State. Effective July 1, 2023, Leon County’s existing local specialty contractor licenses will be preempted to the State. Several jurisdictions cited in the analysis have already initiated action to ensure compliance with the new state law and the transition of specialty licensing to the State by eliminating their local contractor licensing boards. Other jurisdictions, including Alachua County and the City of Tallahassee do not utilize local contractor licensing boards or issue local licenses. Due to the preemption of specialty licenses and regulation of contractors by the State, the following analysis recommends the Board to sunset the CLB and local licensing program at a future public hearing.
Analysis:
The County maintained 1,446 active contractor files for FY 2021 including State Certified Contractors, Leon County Registered Contractors, and Specialty Contractors. A breakdown of all active contractors is included as Attachment #2.
Examination Analysis:
During FY 2021, one CLB meeting was held on October 1, 2020. No licensing applications were received. The CLB approved two requests for reciprocity. Reciprocity may be granted by the CLB to contractors who have been licensed in another jurisdiction within the State of Florida who meet the minimum certification requirements set forth in Article III, Div. 4 of Ch. 5, Leon County Building Code.
Complaint Action:
The CLB processes all complaints against contractors that fall within its statutory authority, regardless if the alleged violation occurs within the city limits or the unincorporated areas. During FY 2021, no complaints were filed with the CLB. In fact, no complaints have been filed with the CLB since FY 2017. The State’s Florida Construction Industry Licensing Board (FCILB), however, has received a total of 311 construction industry-related complaints within Leon County in the last four years.
In recent years the role of contractor licensing and investigation of consumer complaints has shifted to the State of Florida’s Department of Business and Professional Regulation (DBPR). DBPR has expanded its role in these areas which has resulted in less activity among local licensing boards. Since the County has not received a complaint in the last four years, it has limited the need to convene meetings of the CLB. Later in this agenda item, the analysis provides a recommendation to sunset the CLB.
Licensing Revenue:
Table #1 provides a comparison of the Contractors Licensing Board revenue for the last five fiscal years. Fees paid are allocated to the Building Plan Review and Inspection Division’s special revenue fund (commonly referred to as the building fund).
Table #1 – Contractors Licensing Board Revenue
|
Type of Fee Collected |
FY 16-17 |
FY17-18 |
FY18-19 |
FY19-20 |
FY20-21 |
|
Excavation Contractors’ License Applications |
$1,561 |
$1,829 |
$684 |
$1,294 |
$0.00 |
|
Permit File Maintenance Fee |
$2,083 |
$1,637 |
$2,604 |
$1,414 |
$1,116 |
|
License Renewal Fees |
$5,074 |
$6,087 |
$4,762 |
$4,911 |
$3,795 |
|
Total |
$8,718 |
$9,553 |
$8,050 |
$7,619 |
$4,911 |
Table #1 shows a decline in licensing revenues over the last five years which is attributed to contractors being able to obtain licenses at the state level through DBPR. For example, State Certified Contractors are licensed through the State and can work anywhere in Florida, while Registered Contractors can only work in the county or municipality where they have fulfilled local competency requirements. In addition, a contractor that is licensed by the State as a certified contractor is not required to fulfill the competency requirements of a local jurisdiction. Of the 1,392 contractors listed as active in Leon County 1,382 (99.3%) of them are licensed through the State.
Local vs. State Licensing
According to DBPR and pursuant to general law, a certified contractor is an individual that passed the state licensing exam and received certification. Licensed contractors certified through the State can work anywhere within Florida.
A registered contractor is only licensed to contract work within a local jurisdiction. A registered contactor has not completed a state exam but must apply for licensure through the State after approval by the local jurisdiction. Like a certified contractor, the State requires registered contractors to provide proof of insurance, fingerprinting, and meet financial stability requirements. Registered contractors that want to work in a different jurisdiction are required to obtain registration through that local jurisdiction. There are 10 locally registered contractors and 1,382 state certified contractors active in Leon County.
Local Specialty Contractors
A specialty contractor is one whose scope of work is limited to a particular subphase of construction (e.g. siding, windows, and doors). Similar to a registered contractor, specialty contractors can register within a local jurisdiction and perform work in that jurisdiction in which they have received a license. Leon County only maintains four different types of specialty contractor licenses: excavation; aluminum structures; vinyl siding; and garage doors. Due to recent legislation, these local specialty contractor licenses will be preempted to the State effective July 1, 2023.
Recent Legislation
The Florida Legislature adopted HB 735 during the 2021 legislative session which preempts most local specialty construction licensing to the State. Locally issued specialty licenses preempted to the State expire on July 1, 2023. The bill provides that the preemption applies to licensing that is outside the scope of state contractor licensing provisions. According to HB 735, local governments will be specifically prohibited from requiring and enforcing a license for a person whose job scope does not substantially correspond to that of a contractor or journeyman type licensed by the State (the FCILB within DBPR). The new law will primarily impact the licensing of most local specialty contractors but still authorizes local governments to maintain journeyman licenses in the plumbing, pipe fitting, mechanical and HVAC trades, as well as the electrical and alarm system trades. As previously noted, of the 1,392 contractors listed as active in Leon County 1,382 (99.3%) of them are already licensed through the State and only 10 are locally registered. Leon County has never issued journeyman licenses.
An example of a specialty trade license that will be preempted to the State under the new law includes individuals in the siding, windows and door trades. Individuals performing this type of work will be required to obtain a license at the state level. All locally licensed contractors will be preempted to the State and will need to obtain a state certified license to work in Leon County.
Other Jurisdictions
Staff contacted several jurisdictions throughout the state. A number of jurisdictions have already initiated action to ensure compliance with the new state law and the transition of local licensing to the State. For example, Lee and Osceola Counties are sunsetting their Contractor Licensing Boards. Hillsborough, Lee, Monroe, Osceola, and Pinellas County have already begun the process of phasing out all locally issued specialty contractor licenses. Osceola and Hillsborough Counties have noted that they will no longer be renewing local registered contractor licenses (e.g. general contractor, building contractor, residential contractor, etc.) and that it is in the best interest of registered contractors to begin the process of obtaining state certification through DBPR.
Alachua County has not utilized a local Contractors Licensing Board or issue local licenses. Contractors that wish to do work in Alachua County must be licensed through the State. Contractor complaints and the reporting of unlicensed activity in Alachua County is reported directly to DBPR.
Several counties including Collier, Miami-Dade, and Sarasota Counties plan to operate and enforce local licenses as usual, until such time the deadline nears for compliance on July 1, 2023 . These jurisdictions appear to have no immediate plans to take action in response to HB 735.
The City of Tallahassee does not issue contractor licenses at the local level. The City of Tallahassee Contractor Licensing Board was sunset in 2001 and since then, individuals filing a permit are required to have a current state certified contractor license. The City of Tallahassee will accept permits from a contractor that is registered to work in Leon County. Since many of the contractors that file permits with the City of Tallahassee also file with Leon County, it is no surprise that most contractors doing business with Leon County are already licensed with the State. Of the 1,392 contractors listed as active in Leon County 1,382 (99.3%) of them are licensed through the State.
Conclusion:
Due to the preemption of local specialty licenses, DBPR’s predominant role in the regulation of contractors, and the decreased number of CLB meetings in recent years, staff is seeking direction from the Board to review options to sunset the CLB and all local licenses. The sunsetting of the CLB will require related code amendments to Ch. 5, Building Code and Ch. 10, Land Development Code, for final action via the public hearing process.
Options:
Recommendation:
Options #1 and #2
Attachments: