Thursday, February 17, 2011
An Interesting Take on Florida Governor's Rejection of Funds
As you probably know, Rick Scott rejected federal government funding for the high speed rail between Tampa and Orlando. Everton Jackson of the Tampa Bay Going Green Examiner has an interesting take from a construction perspective here.
Tuesday, February 15, 2011
Congress Seeking to Repeal 1099 Requirements for Purchases Over $600.
The health care reform bill has an obscure tax-reporting provision that slipped through the cracks. The provision will require all businesses to issue a 1099 for any vendor with whom they have purchased more than $600 in goods. As it stands, this law is set to go into effect in 2012. However, certain tax fairness groups are working to get this portion of the health care bill repealed.
Apparently, Democrats, Republicans and the White House back the repeal. The Ways and Means Committee is scheduled to mark up the proposed bill on Thursday.
Clearly, this new requirement, if it stands, would be an excessive burden on businesses - and especially small businesses.
Apparently, Democrats, Republicans and the White House back the repeal. The Ways and Means Committee is scheduled to mark up the proposed bill on Thursday.
Clearly, this new requirement, if it stands, would be an excessive burden on businesses - and especially small businesses.
Rick Scott Says Military Spending is 10% of Florida's Economy
We're going to focus on what our strengths are. We're clearly a logical place for the military to expand and for the defense industry to expand. We've got a lot of talent in the state, we like the defense industry and the military, so we're going to figure out where we have the most value.
If Scott gets his wish and is able to attract defense contractors and more military spending here in Florida, local businesses should benefit from the activity. Construction contractors that are willing to work with the government should also benefit.
Wednesday, February 9, 2011
Are You Properly Licensed?
This is an important question because, in Florida, an unlicensed contractor loses its contract and/or lien rights as a matter of law!
Most folks in the construction industry are aware that the State of Florida requires certain construction-related work be performed by a contractor holding a license for the work. Common questions that come up are whether a license is required for the work (not all construction-related work requires a license) or whether a certain license covers the type of work performed.
Construction work that requires a license ranges from the obvious (general contracting, electric, plumbing) to the not-so-obvious (pool, underground utilities). The state does not require licenses for certain types of construction-related work. For instance, handyman jobs, painting, and cabinet installation may not require a license depending on the scope of the job. The Florida Department of Business and Professional Regulation website provides some examples of the types of work that do and do not require a license.
However, there are many gray areas. Also, many local governments also require licenses for certain types of work in addition to the state license. For example, a contractor may be licensed by the state, but may also need a local license for the same work in a specific county. There are also some licenses that are required locally, that are not required by the state (Florida does not require a painting license, but the Pinellas County Construction Licensing Board does). Here is a news story about the crackdown on local unlicensed contracting in Sarasota:
The bottom line: make sure you consult the Florida Department of Business and Professional Regulation, your local construction licensing board, and/or your attorney if there is any question regarding licensing.
Most folks in the construction industry are aware that the State of Florida requires certain construction-related work be performed by a contractor holding a license for the work. Common questions that come up are whether a license is required for the work (not all construction-related work requires a license) or whether a certain license covers the type of work performed.
Construction work that requires a license ranges from the obvious (general contracting, electric, plumbing) to the not-so-obvious (pool, underground utilities). The state does not require licenses for certain types of construction-related work. For instance, handyman jobs, painting, and cabinet installation may not require a license depending on the scope of the job. The Florida Department of Business and Professional Regulation website provides some examples of the types of work that do and do not require a license.
However, there are many gray areas. Also, many local governments also require licenses for certain types of work in addition to the state license. For example, a contractor may be licensed by the state, but may also need a local license for the same work in a specific county. There are also some licenses that are required locally, that are not required by the state (Florida does not require a painting license, but the Pinellas County Construction Licensing Board does). Here is a news story about the crackdown on local unlicensed contracting in Sarasota:
The bottom line: make sure you consult the Florida Department of Business and Professional Regulation, your local construction licensing board, and/or your attorney if there is any question regarding licensing.
Monday, February 7, 2011
Certain Professionals are Now Exempt from the Red Flags Rule
In December, the President signed the Red Flag Program Clarification Act of 2010 (the "Act") into law. The Act is a response to a lawsuit filed by the American Bar Association ("ABA") in 2009. The ABA filed suit on behalf of its multitude of solo practitioners and small firms. The ABA prevailed and Congress subsequently passed the Act.
Prior to the Act, solo practicioners and law firms would have been required to comply with the Red Flags Rule. Law firms typically bill for services after performance. This type of billing would have categorized law firms as "creditors" under the Red Flags Rule.
The Act exempts lawyers, doctors, accountants, and other professional service providers from complying with the Red Flags Rule. Notably, after the ABA filed suit, so did the American Medical Association and the American Institute of Certified Public Accountants.
The lesson to be learned here: never underestimate the power of the mob. Notably, the FTC refused to exempt lawyers, doctors, etc., until those organizations filed suit on behalf of their members.
Prior to the Act, solo practicioners and law firms would have been required to comply with the Red Flags Rule. Law firms typically bill for services after performance. This type of billing would have categorized law firms as "creditors" under the Red Flags Rule.
The Act exempts lawyers, doctors, accountants, and other professional service providers from complying with the Red Flags Rule. Notably, after the ABA filed suit, so did the American Medical Association and the American Institute of Certified Public Accountants.
The lesson to be learned here: never underestimate the power of the mob. Notably, the FTC refused to exempt lawyers, doctors, etc., until those organizations filed suit on behalf of their members.
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