Agenda 02/13/2018 Item #9A02/13/2018
EXECUTIVE SUMMARY
Recommendation to adopt an ordinance making it unlawful to knowingly hire an unlicensed
contractor.
OBJECTIVE: To protect both licensed contractors and the public by creating a disincentive to hire
unlicensed contractors.
CONSIDERATIONS: Section 125.01 Florida Statutes, provides that the legislative and governing body
of a county may adopt ordinances and resolutions necessary for the exercise of its powers and prescribe
fines and penalties for the violation of ordinances in accordance with the law.
Hiring unlicensed contractors not only is a form of unfair competition against licensed contractors who
have spent time and money to comply with all state and local requirements, including training, it also
exposes the public to the potential of significant harm if incompetent, irresponsible or dishonest
contractors are hired to perform the skilled work.
I am not aware of any state or county rule or regulation which creates any meaningful consequence to
those who knowingly hire an unlicensed contractor. The intent of this proposed ordinance is to make the
knowing hire of an unlicensed contractor a County code violation, which could then be enforced in the
same manner as any other code violation, including the ability to fine the violator. Hopefully this will
result in the decreased use of unlicensed contractors in unincorporated Collier County. The proposed
ordinance provides as follows:
SECTION ONE: Application, Enforcement and Penalties.
1. It shall be unlawful for any person or entity to hire or contract with a person or entity to perform
work for which a certification of competency, license or permit is required, by any ordinance of
Collier County or other applicable law, and the person or entity knew, at the time of the hiring or
contracting, or discovered during the course of the work being performed and allowed the person
or entity to continue performing the work, that the person or entity performing the work did not
hold a certificate of competency, license or permit to perform the work.
2. All violations of this Ordinance may be processed according to the Collier County Consolidated
Code Enforcement Ordinance (Ord. No. 2010-04, as amended) and per provisions of Chapter
162, pts. I or II, Florida Statutes, as may be applicable. A law enforcement official or code
enforcement officer is specifically authorized to issue a citation for each violation of this
Ordinance.
At its January 9, 2018 regular meeting (Agenda Item 16-H-1), the Board of County Commissioners
directed the County Attorney to advertise the proposed ordinance for future consideration.
FISCAL IMPACT: The cost to advertise the proposed ordinance was $211.23.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
GROWTH MANAGEMENT IMPACT: None
RECOMMENDATION: That the Board of County Commissioners adopts the attached ordinance
9.A
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02/13/2018
making it unlawful to knowingly hire an unlicensed contractor.
PREPARED BY: William L. McDaniel, Jr.
Commissioner, District 5
AGENDA DATE: January 23, 2018
ATTACHMENT(S)
1. Proposed Ordinance - Unlicensed Contractors (PDF)
2. Legal Ad - Agenda ID 4515 (PDF)
3. Unlawful Licensing - Presentation (PPTX)
9.A
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02/13/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 9.A
Doc ID: 4809
Item Summary: ***This item to be heard at 9:15 a.m. This item continued from the January 23,
2018 BCC Meeting *** Recommendation to adopt an ordinance making it unlawful to knowingly hire an
unlicensed contractor.
Meeting Date: 02/13/2018
Prepared by:
Title: Manager - Technical Systems Operations – Administrative Services Department
Name: Michael Cox
02/06/2018 9:00 PM
Submitted by:
Title: – Board of County Commissioners
Name: Bill McDaniel
02/06/2018 9:00 PM
Approved By:
Review:
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/07/2018 7:32 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/07/2018 8:04 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 02/07/2018 8:07 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 02/07/2018 11:55 AM
Board of County Commissioners MaryJo Brock Meeting Pending 02/13/2018 9:00 AM
9.A
Packet Pg. 31
9.A.1
Packet Pg. 32 Attachment: Proposed Ordinance - Unlicensed Contractors (4809 : Unlicensed Contractors Ordinance)
9.A.1
Packet Pg. 33 Attachment: Proposed Ordinance - Unlicensed Contractors (4809 : Unlicensed Contractors Ordinance)
9.A.1
Packet Pg. 34 Attachment: Proposed Ordinance - Unlicensed Contractors (4809 : Unlicensed Contractors Ordinance)
9.A.2
Packet Pg. 35 Attachment: Legal Ad - Agenda ID 4515 (4809 : Unlicensed Contractors Ordinance)
1
www.colliercountyfl.gov
Growth Management Department
Contractor Licensing Section
License Efficiently, Regulate Fairly
Growth Management
Development Services
9.A.3
Packet Pg. 36 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Overview
±Contractor
±Unlicensed Contractor
±Who Requires a License
±Processing Unlicensed Contractors
±Penalties
±County’s role with proposed Ordinance
2
Growth Management
Development Services
9.A.3
Packet Pg. 37 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Contractor
±A qualified person who, for compensation,
undertakes, or submits a bid to do any or all of
the following: construct, repair, alter, remodel,
add to, demolish, subtract from, or improve any
building or structure, including related
improvements to real estate. (CC Ord 2006-46
sec 1.6.1)
²General Contractor
²Building Contractor
²Residential Contractor
3
Growth Management
Development Services
9.A.3
Packet Pg. 38 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Subcontractors
±A qualified person who specializes in a
construction trade and is typically hired by a
contractor. (CC Ord. 2006-46 sec. 1.6.2)
4
Growth Management
Development Services
16 Subcontractor Licenses
²Sheet Metal
²Roofing
²Mechanical
²Plumbing
²Electrical
²Class A, B, C Air-
conditioning
²Commercial Pool/Spa
²Residential Pool/Spa
²Electrical or Plumbing
Journeyman
9.A.3
Packet Pg. 39 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Specialty Contractor
±A specialty contractor is the qualified person
who assumes responsibility for the direction and
performance of construction work requiring
special skills to perform or complete specialized
work. (CC Ord 2006-46 sec 1.6.3)
5
Growth Management
Development Services
²Aluminum
²Fence
²Alarm System
²Floor Covering
²Cabinet
²Glass and Glazing
²Concrete Forming
²Paving
²Excavation
²Sign
48 Specialty Licenses
9.A.3
Packet Pg. 40 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Unlicensed Contractor
±A person who has not been issued a current and
valid Collier County Certificate of Competency or
applicable State Certified License.
±It is unlawful for any person, firm, partnership,
corporation or other legal entity to:
²Engage in any construction contracting business.
²Advertise or represent himself/herself or a business
organization as available to engage in any
construction contracting business.
²Act in the capacity of a contractor or subcontractor for
any of the trades listed within CC Ord 2006-46
6
Growth Management
Development Services
9.A.3
Packet Pg. 41 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Addressing Unlicensed Contractors
±Stop-Work Orders
²If it should become known that a construction project is
being undertaken by uncertified or nonexempt person,
the Contractor Licensing Element of the Growth
Management Department shall place a stop-work order
on the portion of that project until such time as a
certified contractor assumes supervision of the
construction project. (CC Ord 2006-46 sec 1.7)
±Disciplinary Proceedings
²Include a notice of violation issued to the unlicensed
contractor. (CC Ord 2006-46 sec 4.3)
7
Growth Management
Development Services
9.A.3
Packet Pg. 42 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Penalties (F.S. 489)
8
±Penalties for each uncontested violation
²One thousand ($1,000.00) dollars for the first uncontested
violation
²Two thousand ($2,000.00) dollars for the second uncontested
violation by the same individual or entity
²Third uncontested violation, matter reffered to the State
Attorney's Office
±Violator engaging in the business or acting in the
capacity of a contractor without being duly registered or
certified
²If the violator submits a completed application within forty -five
(45) days of the date of issuance of the Citation for the violation
²Penalty reduced from $1,000.00 to $300.00
Growth Management
Development Services
9.A.3
Packet Pg. 43 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Florida Statute 455
±It is illegal to knowingly hire an unlicensed contractor
(Division 1 Contractors -Contractor or Subcontractor).
²If discovered by the State of Florida that a consumer
knowingly hires an unlicensed contractor, they could
face fines up to $5,000.
²If a licensed contractor knowingly hires an unlicensed
subcontractor, that contractors license to do business
may be suspended or revoked.
±Unlicensed contractors are not responsible for any
damages or worker injuries that may occur during the
project inasmuch as unlicensed contractors often lack
general liability and workers’ compensation insurance.
9
Growth Management
Development Services
9.A.3
Packet Pg. 44 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Compliance Hierarchy
10
Hiring
unlicensed
Division 1
Contractors is
regulated by
F.S. 455
Growth Management
Development Services
Hiring
unlicensed
Specialty
Contractors
regulated by
Local Code
Subcontractors
•Sheet Metal
•Roofing
•Mechanical (HVAC)
•Swimming Pool
•Plumber
•Electrician
Home
Owners
Specialty Contractors
•Aluminum
•Fence
•Alarm System
•Floor Covering
•Cabinet
•Glass and Glazing
•Concrete
Forming
•Paving
•Excavation
•Sign
Contractors
•General
•Building
•Residential
Included
In New
Ordinance
9.A.3
Packet Pg. 45 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)
Growth Management
Development Services 11
Proposed Ordinance
±Would make it illegal to knowingly hire an
unlicensed specialty contractors.
±If determined by Collier County that a consumer
knowingly hired an unlicensed contractor, they
would be issued a notice of violation.
²Appeals would be heard by the Code Enforcement Special
Magistrate
±Licensed Contractors who knowingly hire a
unlicensed contractor shall be issued a notice of
violation.
²Appeals would be heard by the Contractors Licensing
Board. (Current practice)
9.A.3
Packet Pg. 46 Attachment: Unlawful Licensing - Presentation (4809 : Unlicensed Contractors Ordinance)