Gov. Ron DeSantis signed sweeping farm bill legislation that includes new criminal penalties for licensed contractors who fail to pay subcontractors and suppliers in a timely manner. Senate Bill 290, which takes effect July 1, makes it a crime for contractors to withhold payment to subcontractors within 45 days after receiving payment for their work or according to contract terms. The provision was included as part of Florida’s fourth farm bill in as many years, signed during a ceremony in Sebring.
According to Florida Agriculture Commissioner Wilton Simpson, the contractor accountability measures are designed to protect small businesses and suppliers who rely on timely payments to keep projects moving. “We do continue the momentum for preserving land and rural communities, particularly with respect to agriculture,” DeSantis said during the signing ceremony. “We have not wanted to see the state of Florida just turn into a big concrete jungle.” The new law addresses a persistent problem that has resulted in liens being placed against homeowners when contractors fail to pay their subcontractors.
Under the new statute, contractors could face either a first-degree misdemeanor or a third-degree felony if the services are valued at $20,000 or more. The law creates specific definitions for subcontractors and suppliers that align with Florida’s construction defect statute. A subcontractor is defined as a contractor performing labor and supplying material on behalf of another contractor for construction or remodeling of real property, while a supplier provides only materials, equipment, or supplies for such projects.
The legislation comes after high-profile cases involving contractor fraud in Florida, including Spencer Calvert, who owned Pineapple Corporation and was charged after investigators said he failed to pay subcontractors. According to investigators, Calvert owed subcontractors over $1.38 million for work performed, causing more than $900,000 in liens to be filed against alleged victims. Before SB 290 was approved, state law only put vendors in default on contracts with state agencies on a suspended vendor list, preventing them from being awarded future state contracts.
The new provision expands the suspended vendor list to include contractors who fail to pay subcontractors or suppliers in a timely manner. Licensed contractors who knowingly or willfully violate the payment requirements will be subject to disciplinary proceedings under existing contractor licensing statutes. The law includes an exception for situations where there is a bona fide dispute regarding the amount due for services, labor, or materials.
Beyond contractor accountability, SB 290 blocks counties and cities from banning or restricting gas-powered farm and landscape equipment, including tools like gas leaf blowers and lawn equipment. “If you want to use different stuff, fine. It’s a free country, but I like the gas power better,” DeSantis said during the ceremony. “I just think it’s more reliable and if that’s what you believe, then you should be able to continue to do that.” The governor framed local government restrictions on such equipment as overreach that should not determine what farmers and landscapers can use.
The farm bill also creates a new pathway for some state-owned conservation lands acquired on or after Jan. 1, 2024, to be evaluated for agricultural purposes and potentially deemed surplus for agricultural use with rural-lands-protection easements retained. The law excludes state forests, state parks, wildlife management areas and lands inside the Comprehensive Everglades Restoration Plan from that process. During House debate, Rep. Lindsay Cross, D-St. Petersburg, argued the proposal lacked sufficient guardrails and warned some lands were purchased for wildlife protection and water quality purposes.
“Floridians, when we have a purchase of land…there were specific reasons why those lands were purchased,” Cross said during the legislative debate. The conservation land provision has been one of the bill’s biggest flash points among environmental advocates and some Democratic lawmakers. Supporters say the contractor payment changes will reduce payment delays that can stall projects and ensure taxpayers aren’t funding contractors who don’t meet their obligations down the payment chain.
The new contractor payment requirements take effect July 1, marking the latest effort by Florida lawmakers to address construction industry payment disputes that have plagued homeowners and small businesses across the state.