What is it? And What Should You Do?
The construction industry in Florida is going through one of its biggest regulatory shifts in decades. With the passage of HB 735 in 2021 (later amended by HB 1383 and SB 1142 in 2023), Florida has moved to phase out most local contractor licensing and centralize authority under the Florida Department of Business and Professional Regulation (DBPR) and the Construction Industry Licensing Board (CILB).
For contractors who have operated under county or municipal licensing systems for years, these changes represent both challenges and opportunities. Many local licenses will sunset by June 30, 2025, with state preemption taking full effect on July 1, 2025.
In this post, we’ll cover:
- Why the law changed
- What licenses are affected
- What counties and cities can and cannot do after 2025
- What contractors need to do to stay compliant
- How Contractor Licensing Inc. can help with the transition
Why Did Florida Change the Law?
The Florida Legislature passed this law in response to widespread inconsistency across counties and cities. Before 2021, there was no single standard for licensing many types of contractors.
- Some counties required licenses for trades like painting, flooring, cabinetry, or handyman services.
- Other counties didn’t regulate these trades at all, leading to confusion and uneven requirements for contractors who worked across multiple jurisdictions.
- Contractors often found themselves needing both a state license and multiple local licenses to operate legally in neighboring counties.
The new rule seeks to streamline this process, eliminate duplicative local licensing, and create statewide uniformity for most contractor categories.
The Transition Timeline
Here’s the most important timeline contractors need to know:
- January 1, 2021: Counties and municipalities were prohibited from creating new local license categories.
- Until June 30, 2025: Local contractor licenses that existed before Jan. 1, 2021 may remain in place. Renewals during this period are typically prorated so they do not extend beyond June 30, 2025.
- July 1, 2025: Most local contractor licenses expire or become invalid. At this point, contractors must hold the appropriate state license if their work falls under a category regulated by DBPR/CILB.
What Local Governments Can No Longer Do
After July 1, 2025, counties and cities cannot:
- Require a local license for work already covered by a state license category.
- Create or expand local license scopes that go beyond the state’s definitions.
- Continue local licensing programs that were not already in place before Jan. 1, 2021.
This means that if you are a contractor performing work in a category like General, Building, Residential, Electrical, Mechanical, HVAC, Plumbing, or Roofing, your license must come from the state — not your county or city.
What Local Governments May Still Regulate
While licensing authority is moving to the state, local governments still maintain important powers. Counties and municipalities may continue to require:
- Local business tax receipts
- Permits for projects
- Inspections
- Enforcement of building codes and jobsite compliance
Additionally, local governments may still regulate certain specialty scopes of work — but only if those scopes substantially correspond to categories defined by the CILB. This includes some narrower categories like marine contracting, glass & glazing, underground utilities, or structural specialties.
What Contractors Should Do to Stay Compliant
If you are currently relying on a local license, you need to begin planning your transition now. Here are the key steps:
1. Map Your Scope to a State Category
Identify which state license applies to your work. Examples include:
- General Contractor (CGC) – broad authority to build and repair most types of structures
- Building Contractor (CBC) – authority for commercial and residential structures up to 3 stories
- Residential Contractor (CRC) – authority for one-family to three-family dwellings
- Electrical Contractor (EC) – required for all electrical work statewide
- Plumbing, Mechanical, Air Conditioning (A/B), and Roofing Contractors – required for their respective trades
If you are uncertain where your trade fits, Contractor Licensing Inc. can review your business activities and recommend the correct license category.
2. Upgrade or Convert Before July 1, 2025
If you currently hold a local-only license, do not wait until the last minute. The state application process can take 90 to 120 days (or longer) depending on review times and whether you need to sit for an exam.
By starting early, you ensure that your business won’t face downtime or penalties for operating without the proper license.
4. Stay Compliant Locally
Remember: even though licensing authority is shifting to the state, counties and cities will still require permits, inspections, and business tax receipts. Make sure your business continues to meet these local requirements.
Common Questions Contractors Ask
Q: I only have a county license. Do I need a state license now?
Yes. If your trade falls under a state category (general, building, residential, electrical, plumbing, HVAC, mechanical, roofing, etc.), you must transition to a state license before July 1, 2025.
Q: What about trades like painting, flooring, or cabinetry?
Local governments can no longer require local licenses for trades outside state categories. However, permits and inspections may still apply.
Q: What happens if I don’t upgrade before July 1, 2025?
You risk being unable to legally operate, being fined, or losing jobs that require a valid license.
Q: Can Contractor Licensing Inc. help with the application?
Yes. We specialize in preparing complete, compliant state license applications — including qualifier setup, FRO designation, financial responsibility forms, and bond issuance.
How Contractor Licensing Inc. Helps
At Contractor Licensing Inc., we’ve helped thousands of contractors across Florida navigate licensing requirements. Here’s what we offer:
- License category evaluation – We analyze your scope of work and match you to the correct license type.
- Application preparation – We complete the state forms, gather supporting documents, and submit your package to the DBPR.
- Qualifier and FRO setup – If your company needs a Financially Responsible Officer, we prepare the application and issue the required $100,000 bond.
- Bonding and insurance – Through our partner Artisan Insurance Inc., we offer fast, affordable bond and insurance solutions.
- Ongoing compliance support – We track deadlines and requirements so you stay ahead of changes.
Act Now Before the Deadline
With the sunset of local licenses just months away, it’s critical to act now. Don’t wait until June 2025 when thousands of contractors will be scrambling to apply.
👉 Get started today:
Fill out our Licensing Services Form and one of our specialists will reach out to guide you through the process.https://contractorlicensingform.fillout.com/t/gbFSJiSoEyus
Get Help With Florida Contractor Licensing »
Leave a Reply
Your email is safe with us.