As part of the sweeping Florida Farm Bill he signed on Monday, Gov. Ron DeSantis approved a provision that includes new accountability measures for state contractors.
Senate Bill 290 and all its changes take effect on July 1.
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According to Florida Agriculture Commissioner Wilton Simpson, the element of the farm bill focused on contractors is designed to protect small businesses and suppliers who rely on timely payments to keep projects moving.
The News4JAX I-TEAM has done multiple reports on contractors accused of failing to pay subcontractors or suppliers, which resulted in liens being placed against homeowners.
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Notably, contractor Spencer Calvert, who owned Pineapple Corporation, was charged after investigators said he failed to pay subcontractors, causing more than $900,000 in liens to be filed against the alleged victims. According to investigators, Calvert owed subcontractors over $1.38 million for work performed for the Pineapple Corporation.
Before SB 290 was approved, state law put any vendor in default on any contract with a state agency on a “suspended vendor list,” which would keep them from being awarded future state contracts.
Now, not paying subcontractors or suppliers in a timely manner can also earn a licensed contractor a place on the “suspended vendor list.”
The new provision makes it a crime (unless there’s a bona fide dispute over what’s owed) to fail to pay subcontractors:
- Within 45 days after the contractor receives payment for the subcontractor’s work/materials, or
- According to the contract terms for the services, labor, or materials.
Contractors could face either a first-degree misdemeanor or a third-degree felony (if the services are valued at $20,000 or more).
Subcontractor and supplier are also formally defined in SB 290:
- Subcontractor: a contractor performing labor and supplying material on behalf of another contractor for construction/remodeling of real property.
- Supplier: a person who provides only materials, equipment, or supplies for construction/remodeling of real property.
- Definitions clarified: “Subcontractor” and “Supplier”
To standardize enforcement, SB 290 adds definitions aligning with Florida’s construction defect statute (s. 558.002):
- Subcontractor: a contractor performing labor and supplying material on behalf of another contractor for construction/remodeling of real property.
- Supplier: a person who provides only materials, equipment, or supplies for construction/remodeling of real property.
Why it matters
Supporters say the change is designed to protect small, locally owned subcontractors and material suppliers, reduce payment delays that can stall projects, and ensure taxpayers aren’t funding contractors who don’t meet their obligations down the payment chain.