61G4-15.006: Financial Responsibility, Definition, Grounds for Denial
PURPOSE AND EFFECT: The Board proposes the rule amendment for the consideration of minimum credit as a component for determining financial responsibility and stability.
SUMMARY: The rule amendment is for the consideration of minimum credit as a component for determining financial responsibility and stability.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 489.115(5), (6) FS.
LAW IMPLEMENTED: 489.115(5), (6) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: G. W. Harrell, Executive Director, Construction Industry Licensing Board, 1940 North Monroe Street, Tallahassee, Florida 32399-0750
THE FULL TEXT OF THE PROPOSED RULE IS:
61G4-15.006 Financial Responsibility
, Definition, and Financial Stability, Grounds for Denial. (1) For purposes of this rule, the phrase "financial responsibility" is defined as the ability to safeguard that the public will not sustain economic loss resulting from the contractor's inability to pay his lawful contractual obligations. (a) Failure to submit any of the items required by Rule 61G4-15.005, F.A.C. (b) The existence, within the past five years preceding the application, of an unsatisfied court judgment rendered against the applicant based upon the failure of the applicant to pay its just obligations to parties with whom the applicant conducted business as a contractor. (c) An unfavorable credit report or history as indicated by any of the documents submitted. (d) A determination by the Board that the applicant lacks the financial stability necessary to assure compliance with the standard set forth in subsection (1) of this rule. As guidelines for the determination of financial stability the Board shall consider the applicant's responses to the questions set forth in subsection 61G4-15.005(4), F.A.C., and the applicant's financial statement submitted pursuant to subsection 61G4-15.005(2), F.A.C. (3) The applicant's history of bankruptcy is included in the statutory definition of financial responsibility and shall be considered by the Board; however, the fact that an applicant has been or is a debtor in bankruptcy shall not be the sole basis of the Board's determination to deny the issuance of a license or a request for change of status to the applicant.
(2) The financial responsibility ground s on which the Board shall refuse to qualify an applicant is shall include:
Failure to provide proof of a current credit report, as defined in Rule 61G4-12.011, F.A.C., score of 600 or higher.
(2) The financial stability grounds on which the Board shall refuse to qualify an applicant are:
(a) Failure to provide a financial stability bond payable at the direction of the Board in the amount of:
1. $20,000 for Division I applicants,
2. $10,000 for Division II applicants.
(b) Fifty percent of the financial stability bond requirement may be met by completion of a 14 hour financial responsibility course approved by the Board.
(3) An applicant may meet both the financial responsibility and financial stability requirements by providing a current consumer credit report, as defined in Rule 61G4-12.011, F.A.C, score derived of 660 or higher.
Specific Authority 489.115(5), (6) FS. Law Implemented 489.115(5), (6) FS. History–New 1-6-80, Amended 5-4-80, Formerly 21E-15.06, 21E-15.006, Amended 10-31-96, 11-13-97, ________.