Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. CS for SB 880
       
       
       
       
       
       
                                Barcode 397448                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/21/2009           .                                
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       The Committee on Judiciary (Fasano) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (13) of section 718.110, Florida
    6  Statutes, is amended to read:
    7         718.110 Amendment of declaration; correction of error or
    8  omission in declaration by circuit court.—
    9         (13) Any amendment prohibiting restricting unit owners from
   10  renting their units or altering the number of times unit owners
   11  are entitled to rent their units during a specified period
   12  owners’ rights relating to the rental of units applies only to
   13  unit owners who consent to the amendment and unit owners who
   14  acquire title to purchase their units after the effective date
   15  of that amendment.
   16         Section 2. Subsections (12) and (13) of section 718.111,
   17  Florida Statutes, are amended to read:
   18         718.111 The association.—
   19         (12) OFFICIAL RECORDS.—
   20         (a) From the inception of the association, the association
   21  shall maintain each of the following items, when applicable,
   22  which shall constitute the official records of the association:
   23         1. A copy of the plans, permits, warranties, and other
   24  items provided by the developer pursuant to s. 718.301(4).
   25         2. A photocopy of the recorded declaration of condominium
   26  of each condominium operated by the association and of each
   27  amendment to each declaration.
   28         3. A photocopy of the recorded bylaws of the association
   29  and of each amendment to the bylaws.
   30         4. A certified copy of the articles of incorporation of the
   31  association, or other documents creating the association, and of
   32  each amendment thereto.
   33         5. A copy of the current rules of the association.
   34         6. A book or books which contain the minutes of all
   35  meetings of the association, of the board of administration, and
   36  of unit owners, which minutes shall be retained for a period of
   37  not less than 7 years.
   38         7. A current roster of all unit owners and their mailing
   39  addresses, unit identifications, voting certifications, and, if
   40  known, telephone numbers. The association shall also maintain
   41  the electronic mailing addresses and the numbers designated by
   42  unit owners for receiving notice sent by electronic transmission
   43  of those unit owners consenting to receive notice by electronic
   44  transmission. The electronic mailing addresses and numbers
   45  provided by unit owners to receive notice by electronic
   46  transmission shall be removed from association records when
   47  consent to receive notice by electronic transmission is revoked.
   48  However, the association is not liable for an erroneous
   49  disclosure of the electronic mail address or the number for
   50  receiving electronic transmission of notices.
   51         8. All current insurance policies of the association and
   52  condominiums operated by the association.
   53         9. A current copy of any management agreement, lease, or
   54  other contract to which the association is a party or under
   55  which the association or the unit owners have an obligation or
   56  responsibility.
   57         10. Bills of sale or transfer for all property owned by the
   58  association.
   59         11. Accounting records for the association and separate
   60  accounting records for each condominium which the association
   61  operates. All accounting records shall be maintained for a
   62  period of not less than 7 years. Any person who knowingly or
   63  intentionally defaces or destroys accounting records required to
   64  be created and maintained by this chapter during the period for
   65  which such records are required to be maintained pursuant to
   66  this chapter, or who knowingly or intentionally fails to create
   67  or maintain accounting records required to be maintained by this
   68  chapter, with the intent of causing harm to the association or
   69  one or more of its members, is personally subject to a civil
   70  penalty pursuant to s. 718.501(1)(d). The accounting records
   71  shall include, but are not limited to:
   72         a. Accurate, itemized, and detailed records of all receipts
   73  and expenditures.
   74         b. A current account and a monthly, bimonthly, or quarterly
   75  statement of the account for each unit designating the name of
   76  the unit owner, the due date and amount of each assessment, the
   77  amount paid upon the account, and the balance due.
   78         c. All audits, reviews, accounting statements, and
   79  financial reports of the association or condominium.
   80         d. All contracts for work to be performed. Bids for work to
   81  be performed shall also be considered official records and shall
   82  be maintained by the association.
   83         12. Ballots, sign-in sheets, voting proxies, and all other
   84  papers relating to voting by unit owners, which shall be
   85  maintained for a period of 1 year from the date of the election,
   86  vote, or meeting to which the document relates, notwithstanding
   87  paragraph (b).
   88         13. All rental records, when the association is acting as
   89  agent for the rental of condominium units.
   90         14. A copy of the current question and answer sheet as
   91  described by s. 718.504.
   92         15. All other records of the association not specifically
   93  included in the foregoing which are related to the operation of
   94  the association.
   95         16. A copy of the inspection report as provided for in s.
   96  718.301(4)(p).
   97         (b) The official records of the association shall be
   98  maintained within the state for at least 7 years. The records of
   99  the association shall be made available to a unit owner within
  100  45 miles of the condominium property or within the county in
  101  which the condominium property is located within 5 working days
  102  after receipt of written request by the board or its designee.
  103  However, such distance requirement does not apply to an
  104  association governing a timeshare condominium. This paragraph
  105  may be complied with by having a copy of the official records of
  106  the association available for inspection or copying on the
  107  condominium property or association property, or the association
  108  may offer the option of making the records of the association
  109  available to a unit owner either electronically via the Internet
  110  or by allowing the records to be viewed in electronic format on
  111  a computer screen and printed upon request. The association is
  112  not responsible for the use or misuse of the information
  113  provided pursuant to the compliance requirements of this chapter
  114  unless the association has an affirmative duty not to disclose
  115  such information pursuant to this chapter.
  116         (c) The official records of the association are open to
  117  inspection by any association member or the authorized
  118  representative of such member at all reasonable times. The right
  119  to inspect the records includes the right to make or obtain
  120  copies, at the reasonable expense, if any, of the association
  121  member. The association may adopt reasonable rules regarding the
  122  frequency, time, location, notice, and manner of record
  123  inspections and copying. The failure of an association to
  124  provide the records within 10 working days after receipt of a
  125  written request shall create a rebuttable presumption that the
  126  association willfully failed to comply with this paragraph. A
  127  unit owner who is denied access to official records is entitled
  128  to the actual damages or minimum damages for the association’s
  129  willful failure to comply with this paragraph. The minimum
  130  damages shall be $50 per calendar day up to 10 days, the
  131  calculation to begin on the 11th working day after receipt of
  132  the written request. The failure to permit inspection of the
  133  association records as provided herein entitles any person
  134  prevailing in an enforcement action to recover reasonable
  135  attorney’s fees from the person in control of the records who,
  136  directly or indirectly, knowingly denied access to the records
  137  for inspection. Any person who knowingly or intentionally
  138  defaces or destroys accounting records that are required by this
  139  chapter to be created and maintained during the period for which
  140  such records are required to be maintained pursuant to this
  141  chapter, or who knowingly or intentionally fails to create or
  142  maintain accounting records that are required to be maintained
  143  by this chapter, with the intent of causing harm to the
  144  association or one or more of its members, is personally subject
  145  to a civil penalty pursuant to s. 718.501(1)(d). The association
  146  shall maintain an adequate number of copies of the declaration,
  147  articles of incorporation, bylaws, and rules, and all amendments
  148  to each of the foregoing, as well as the question and answer
  149  sheet provided for in s. 718.504 and year-end financial
  150  information required in this section, on the condominium
  151  property to ensure their availability to unit owners and
  152  prospective purchasers, and may charge its actual costs for
  153  preparing and furnishing these documents to those requesting the
  154  documents same. Notwithstanding the provisions of this
  155  paragraph, the following records shall not be accessible to unit
  156  owners:
  157         1. Any record protected by the lawyer-client privilege as
  158  described in s. 90.502; and any record protected by the work
  159  product privilege, including any record prepared by an
  160  association attorney or prepared at the attorney’s express
  161  direction; which reflects a mental impression, conclusion,
  162  litigation strategy, or legal theory of the attorney or the
  163  association, and which was prepared exclusively for civil or
  164  criminal litigation or for adversarial administrative
  165  proceedings, or which was prepared in anticipation of imminent
  166  civil or criminal litigation or imminent adversarial
  167  administrative proceedings until the conclusion of the
  168  litigation or adversarial administrative proceedings.
  169         2. Information obtained by an association in connection
  170  with the approval of the lease, sale, or other transfer of a
  171  unit.
  172         3.Disciplinary, health, insurance, and personnel records
  173  of the association’s employees.
  174         4.3. Medical records of unit owners.
  175         5.4. Social security numbers, driver’s license numbers,
  176  credit card numbers, e-mail addresses, and other personal
  177  identifying information of any person, excluding the person’s
  178  name, unit designation, mailing address, property address, and
  179  other contact information.
  180         6.Any electronic security measure that is used by the
  181  association to safeguard data, including passwords.
  182         7.The data generated by software used by the association
  183  which allows manipulation of data. Such data is part of the
  184  official records of the association, even if the owner owns a
  185  copy of the same software used by the association, but the
  186  underlying software and operating system are not part of the
  187  official records of the association.
  188         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  189  the fiscal year, or annually on a date provided in the bylaws,
  190  the association shall prepare and complete, or contract for the
  191  preparation and completion of, a financial report for the
  192  preceding fiscal year. Within 21 days after the final financial
  193  report is completed by the association or received from the
  194  third party, but not later than 120 days after the end of the
  195  fiscal year or other date as provided in the bylaws, the
  196  association shall mail to each unit owner at the address last
  197  furnished to the association by the unit owner, or hand deliver
  198  to each unit owner, a copy of the financial report or a notice
  199  that a copy of the financial report will be mailed or hand
  200  delivered to the unit owner, without charge, upon receipt of a
  201  written request from the unit owner. The division shall adopt
  202  rules setting forth uniform accounting principles and standards
  203  to be used by all associations and shall adopt rules addressing
  204  financial reporting requirements for multicondominium
  205  associations. The rules shall include, but not be limited to,
  206  standards for presenting a summary of association reserves,
  207  including, but not limited to, a good faith estimate disclosing
  208  the annual amount of reserve funds that would be necessary for
  209  the association to fully fund reserves for each reserve item
  210  based on the straight-line accounting method. This disclosure is
  211  not applicable to reserves funded via the pooling method uniform
  212  accounting principles and standards for stating the disclosure
  213  of at least a summary of the reserves, including information as
  214  to whether such reserves are being funded at a level sufficient
  215  to prevent the need for a special assessment and, if not, the
  216  amount of assessments necessary to bring the reserves up to the
  217  level necessary to avoid a special assessment. The person
  218  preparing the financial reports shall be entitled to rely on an
  219  inspection report prepared for or provided to the association to
  220  meet the fiscal and fiduciary standards of this chapter. In
  221  adopting such rules, the division shall consider the number of
  222  members and annual revenues of an association. Financial reports
  223  shall be prepared as follows:
  224         (a) An association that meets the criteria of this
  225  paragraph shall prepare or cause to be prepared a complete set
  226  of financial statements in accordance with generally accepted
  227  accounting principles. The financial statements shall be based
  228  upon the association’s total annual revenues, as follows:
  229         1. An association with total annual revenues of $100,000 or
  230  more, but less than $200,000, shall prepare compiled financial
  231  statements.
  232         2. An association with total annual revenues of at least
  233  $200,000, but less than $400,000, shall prepare reviewed
  234  financial statements.
  235         3. An association with total annual revenues of $400,000 or
  236  more shall prepare audited financial statements.
  237         (b)1. An association with total annual revenues of less
  238  than $100,000 shall prepare a report of cash receipts and
  239  expenditures.
  240         2. An association that which operates fewer less than 50
  241  units, regardless of the association’s annual revenues, shall
  242  prepare a report of cash receipts and expenditures in lieu of
  243  financial statements required by paragraph (a).
  244         3. A report of cash receipts and disbursements must
  245  disclose the amount of receipts by accounts and receipt
  246  classifications and the amount of expenses by accounts and
  247  expense classifications, including, but not limited to, the
  248  following, as applicable: costs for security, professional and
  249  management fees and expenses, taxes, costs for recreation
  250  facilities, expenses for refuse collection and utility services,
  251  expenses for lawn care, costs for building maintenance and
  252  repair, insurance costs, administration and salary expenses, and
  253  reserves accumulated and expended for capital expenditures,
  254  deferred maintenance, and any other category for which the
  255  association maintains reserves.
  256         (c) An association may prepare or cause to be prepared,
  257  without a meeting of or approval by the unit owners:
  258         1. Compiled, reviewed, or audited financial statements, if
  259  the association is required to prepare a report of cash receipts
  260  and expenditures;
  261         2. Reviewed or audited financial statements, if the
  262  association is required to prepare compiled financial
  263  statements; or
  264         3. Audited financial statements if the association is
  265  required to prepare reviewed financial statements.
  266         (d) If approved by a majority of the voting interests
  267  present at a properly called meeting of the association, an
  268  association may prepare or cause to be prepared:
  269         1. A report of cash receipts and expenditures in lieu of a
  270  compiled, reviewed, or audited financial statement;
  271         2. A report of cash receipts and expenditures or a compiled
  272  financial statement in lieu of a reviewed or audited financial
  273  statement; or
  274         3. A report of cash receipts and expenditures, a compiled
  275  financial statement, or a reviewed financial statement in lieu
  276  of an audited financial statement.
  277  
  278  Such meeting and approval must occur before prior to the end of
  279  the fiscal year and is effective only for the fiscal year in
  280  which the vote is taken, except that the approval also may be
  281  effective for the following fiscal year. With respect to an
  282  association to which the developer has not turned over control
  283  of the association, all unit owners, including the developer,
  284  may vote on issues related to the preparation of financial
  285  reports for the first 2 fiscal years of the association’s
  286  operation, beginning with the fiscal year in which the
  287  declaration is recorded. Thereafter, all unit owners except the
  288  developer may vote on such issues until control is turned over
  289  to the association by the developer. Any audit or review
  290  prepared under this section shall be paid for by the developer
  291  if done prior to turnover of control of the association. An
  292  association may not waive the financial reporting requirements
  293  of this section for more than 3 consecutive years.
  294         Section 3. Paragraphs (n) and (o) of subsection (2) of
  295  section 718.112, Florida Statutes, are amended to read:
  296         718.112 Bylaws.—
  297         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  298  following and, if they do not do so, shall be deemed to include
  299  the following:
  300         (n) Director or officer delinquencies.—A director or
  301  officer more than 90 days delinquent in the payment of any fee,
  302  fine, regular assessment, or special assessment assessments
  303  shall be deemed to have abandoned the office, creating a vacancy
  304  in the office to be filled according to law.
  305         (o) Director or officer offenses.—A director or officer
  306  charged by information or indictment with a felony theft or
  307  embezzlement offense involving the association’s funds or
  308  property shall be removed from office, creating a vacancy in the
  309  office to be filled according to law. While such director or
  310  officer has such criminal charge pending, he or she may not be
  311  appointed or elected to a position as a director or officer.
  312  However, should the charges be resolved without a finding of
  313  guilt, the director or officer shall be reinstated for the
  314  remainder of his or her term of office, if any.
  315         Section 4. Paragraph (d) of subsection (1) of section
  316  718.115, Florida Statutes, is amended to read:
  317         718.115 Common expenses and common surplus.—
  318         (1)
  319         (d) If so provided in the declaration, the cost of
  320  communications services as defined in chapter 202, information
  321  services, or Internet services a master antenna television
  322  system or duly franchised cable television service obtained
  323  pursuant to a bulk contract shall be deemed a common expense. If
  324  the declaration does not provide for the cost of communications
  325  services as defined in chapter 202, information services, or
  326  Internet services a master antenna television system or duly
  327  franchised cable television service obtained under a bulk
  328  contract as a common expense, the board may enter into such a
  329  contract, and the cost of the service will be a common expense
  330  but allocated on a per-unit basis rather than a percentage basis
  331  if the declaration provides for other than an equal sharing of
  332  common expenses, and any contract entered into before July 1,
  333  1998, in which the cost of the service is not equally divided
  334  among all unit owners, may be changed by vote of a majority of
  335  the voting interests present at a regular or special meeting of
  336  the association, to allocate the cost equally among all units.
  337  The contract shall be for a term of not less than 2 years.
  338         1. Any contract made by the board after the effective date
  339  hereof for communications services as defined in chapter 202,
  340  information services, or Internet services a community antenna
  341  system or duly franchised cable television service may be
  342  canceled by a majority of the voting interests present at the
  343  next regular or special meeting of the association. Any member
  344  may make a motion to cancel the said contract, but if no motion
  345  is made or if such motion fails to obtain the required majority
  346  at the next regular or special meeting, whichever occurs is
  347  sooner, following the making of the contract, then such contract
  348  shall be deemed ratified for the term therein expressed.
  349         2. Any such contract shall provide, and shall be deemed to
  350  provide if not expressly set forth, that any hearing-impaired or
  351  legally blind unit owner who does not occupy the unit with a
  352  non-hearing-impaired or sighted person, or any unit owner
  353  receiving supplemental security income under Title XVI of the
  354  Social Security Act or food stamps as administered by the
  355  Department of Children and Family Services pursuant to s.
  356  414.31, may discontinue the cable or video service without
  357  incurring disconnect fees, penalties, or subsequent service
  358  charges, and, as to such units, the owners shall not be required
  359  to pay any common expenses charge related to such service. If
  360  fewer less than all members of an association share the expenses
  361  of cable or video service television, the expense shall be
  362  shared equally by all participating unit owners. The association
  363  may use the provisions of s. 718.116 to enforce payment of the
  364  shares of such costs by the unit owners receiving cable or video
  365  service television.
  366         Section 5. Paragraph (b) of subsection (5) of section
  367  718.116, Florida Statutes, is amended, and subsection (11) is
  368  added to that section, to read:
  369         718.116 Assessments; liability; lien and priority;
  370  interest; collection.—
  371         (5)
  372         (b) To be valid, a claim of lien must state the description
  373  of the condominium parcel, the name of the record owner, the
  374  name and address of the association, the amount due, and the due
  375  dates. It must be executed and acknowledged by an officer or
  376  authorized agent of the association. No such lien shall be
  377  effective longer than 1 year after the claim of lien was
  378  recorded unless, within that time, an action to enforce the lien
  379  is commenced. The 1-year period shall automatically be extended
  380  for any length of time during which the association is prevented
  381  from filing a foreclosure action by an automatic stay resulting
  382  from a bankruptcy petition filed by the parcel owner or any
  383  other person claiming an interest in the parcel. The claim of
  384  lien shall secure all unpaid assessments which are due and which
  385  may accrue subsequent to the recording of the claim of lien and
  386  before prior to the entry of a certificate of title, as well as
  387  interest and all reasonable costs and attorney’s fees incurred
  388  by the association incident to the collection process. Costs to
  389  the unit owner secured by the association’s claim of lien with
  390  regard to collection letters or any other collection efforts by
  391  management companies or licensed managers as to any delinquent
  392  installment of an assessment may not exceed $75 unless the
  393  management company prepares any letter or estoppel certificate
  394  required by this chapter and charges a reasonable fee related to
  395  the preparation of such letter or estoppel certificate. Upon
  396  payment in full, the person making the payment is entitled to a
  397  satisfaction of the lien.
  398  
  399  After notice of contest of lien has been recorded, the clerk of
  400  the circuit court shall mail a copy of the recorded notice to
  401  the association by certified mail, return receipt requested, at
  402  the address shown in the claim of lien or most recent amendment
  403  to it and shall certify to the service on the face of the
  404  notice. Service is complete upon mailing. After service, the
  405  association has 90 days in which to file an action to enforce
  406  the lien; and, if the action is not filed within the 90-day
  407  period, the lien is void. However, the 90-day period shall be
  408  extended for any length of time that the association is
  409  prevented from filing its action because of an automatic stay
  410  resulting from the filing of a bankruptcy petition by the unit
  411  owner or by any other person claiming an interest in the parcel.
  412         (11)If the unit is occupied by a tenant and the unit owner
  413  is delinquent in the payment of regular assessments, the
  414  association may demand that the tenant pay to the association
  415  the future regular assessments related to the condominium unit.
  416  The demand is continuing in nature, and upon demand, the tenant
  417  shall continue to pay the regular assessments to the association
  418  until the association releases the tenant or the tenant
  419  discontinues tenancy in the unit. The association shall mail
  420  written notice to the unit owner of the association’s demand
  421  that the tenant pay regular assessments to the association. The
  422  tenant is not liable for increases in the amount of the regular
  423  assessment due unless the tenant was reasonably notified of the
  424  increase before the day on which the rent is due. The liability
  425  of the tenant may not exceed the amount due from the tenant to
  426  the tenant’s landlord. The tenant’s landlord shall provide the
  427  tenant a credit against rents due to the unit owner in the
  428  amount of assessments paid to the association under this
  429  section. The association shall, upon request, provide the tenant
  430  with written receipts for payments made. The association may
  431  issue notices under s. 83.56 and may sue for eviction under ss.
  432  83.59-83.625 as if the association were a landlord under part II
  433  of chapter 83 if the tenant fails to pay an assessment. However,
  434  the association is not otherwise considered a landlord under
  435  chapter 83 and specifically has no duties under s. 83.51. The
  436  tenant does not, by virtue of payment of assessments, have any
  437  of the rights of a unit owner to vote in any election or to
  438  examine the books and records of the association. A court may
  439  supersede the effect of this subsection by appointing a
  440  receiver.
  441         Section 6. Section 718.303, Florida Statutes, is amended to
  442  read:
  443         718.303 Obligations of owners and occupants; waiver; levy
  444  of fines, suspension of use or voting rights, and other
  445  nonexclusive remedies in law or equity fine against unit by an
  446  association.—
  447         (1) Each unit owner, each tenant and other invitee, and
  448  each association shall be governed by, and shall comply with the
  449  provisions of, this chapter, the declaration, the documents
  450  creating the association, and the association bylaws and the
  451  provisions thereof shall be deemed expressly incorporated into
  452  any lease of a unit. Actions for damages or for injunctive
  453  relief, or both, for failure to comply with these provisions may
  454  be brought by the association or by a unit owner against:
  455         (a) The association.
  456         (b) A unit owner.
  457         (c) Directors designated by the developer, for actions
  458  taken by them prior to the time control of the association is
  459  assumed by unit owners other than the developer.
  460         (d) Any director who willfully and knowingly fails to
  461  comply with these provisions.
  462         (e) Any tenant leasing a unit, and any other invitee
  463  occupying a unit.
  464  
  465  The prevailing party in any such action or in any action in
  466  which the purchaser claims a right of voidability based upon
  467  contractual provisions as required in s. 718.503(1)(a) is
  468  entitled to recover reasonable attorney’s fees. A unit owner
  469  prevailing in an action between the association and the unit
  470  owner under this section, in addition to recovering his or her
  471  reasonable attorney’s fees, may recover additional amounts as
  472  determined by the court to be necessary to reimburse the unit
  473  owner for his or her share of assessments levied by the
  474  association to fund its expenses of the litigation. This relief
  475  does not exclude other remedies provided by law. Actions arising
  476  under this subsection shall not be deemed to be actions for
  477  specific performance.
  478         (2) A provision of this chapter may not be waived if the
  479  waiver would adversely affect the rights of a unit owner or the
  480  purpose of the provision, except that unit owners or members of
  481  a board of administration may waive notice of specific meetings
  482  in writing if provided by the bylaws. Any instruction given in
  483  writing by a unit owner or purchaser to an escrow agent may be
  484  relied upon by an escrow agent, whether or not such instruction
  485  and the payment of funds thereunder might constitute a waiver of
  486  any provision of this chapter.
  487         (3) If a unit owner is delinquent for more than 90 days in
  488  the payment of a regular or special assessment or if the
  489  declaration or bylaws so provide, the association may suspend,
  490  for a reasonable time, the right of a unit owner or a unit’s
  491  occupant, licensee, or invitee to use common elements, common
  492  facilities, or any other association property. This subsection
  493  does not apply to limited common elements intended to be used
  494  only by that unit, common elements that must be used to access
  495  the unit, utility services provided to the unit, parking spaces,
  496  or elevators. The association may also levy reasonable fines
  497  against a unit for the failure of the owner of the unit, or its
  498  occupant, licensee, or invitee, to comply with any provision of
  499  the declaration, the association bylaws, or reasonable rules of
  500  the association. No fine will become a lien against a unit. A No
  501  fine may not exceed $100 per violation. However, a fine may be
  502  levied on the basis of each day of a continuing violation, with
  503  a single notice and opportunity for hearing, provided that no
  504  such fine shall in the aggregate exceed $1,000. A No fine may
  505  not be levied and a suspension may not be imposed unless the
  506  association first gives except after giving reasonable notice
  507  and opportunity for a hearing to the unit owner and, if
  508  applicable, its occupant, licensee, or invitee. The hearing must
  509  be held before a committee of other unit owners who are neither
  510  board members nor persons residing in a board member’s
  511  household. If the committee does not agree with the fine or
  512  suspension, the fine or suspension may not be levied or imposed.
  513  The provisions of this subsection do not apply to unoccupied
  514  units.
  515         (4)The notice and hearing requirements of subsection (3)
  516  do not apply to the imposition of suspensions or fines against a
  517  unit owner or a unit’s occupant, licensee, or invitee because of
  518  the failure to pay any amounts due the association. If such a
  519  fine or suspension is imposed, the association must levy the
  520  fine or impose a reasonable suspension at a properly noticed
  521  board meeting, and after the imposition of such fine or
  522  suspension, the association must notify the unit owner and, if
  523  applicable, the unit’s occupant, licensee, or invitee by mail or
  524  hand delivery.
  525         (5)If the declaration or bylaws so provide, an association
  526  may also suspend the voting rights of a member due to nonpayment
  527  of assessments, fines, or other charges payable to the
  528  association which are delinquent in excess of 90 days.
  529         Section 7. Subsection (16) of section 718.103, Florida
  530  Statutes, is amended to read:
  531         718.103 Definitions.—As used in this chapter, the term:
  532         (16) “Developer” means a person who creates a condominium
  533  or offers condominium parcels for sale or lease in the ordinary
  534  course of business, but does not include:
  535         (a) An owner or lessee of a condominium or cooperative unit
  536  who has acquired the unit for his or her own occupancy;, nor
  537  does it include
  538         (b) A cooperative association which creates a condominium
  539  by conversion of an existing residential cooperative after
  540  control of the association has been transferred to the unit
  541  owners if, following the conversion, the unit owners will be the
  542  same persons who were unit owners of the cooperative and no
  543  units are offered for sale or lease to the public as part of the
  544  plan of conversion;.
  545         (c)A bulk assignee or bulk buyer as defined in s. 718.703;
  546  or
  547         (d) A state, county, or municipal entity is not a developer
  548  for any purposes under this act when it is acting as a lessor
  549  and not otherwise named as a developer in the declaration of
  550  condominium association.
  551         Section 8. Subsection (1) of section 718.301, Florida
  552  Statutes, is amended to read:
  553         718.301 Transfer of association control; claims of defect
  554  by association.—
  555         (1) When unit owners other than the developer own 15
  556  percent or more of the units in a condominium that will be
  557  operated ultimately by an association, the unit owners other
  558  than the developer shall be entitled to elect no less than one
  559  third of the members of the board of administration of the
  560  association. Unit owners other than the developer are entitled
  561  to elect not less than a majority of the members of the board of
  562  administration of an association:
  563         (a) Three years after 50 percent of the units that will be
  564  operated ultimately by the association have been conveyed to
  565  purchasers;
  566         (b) Three months after 90 percent of the units that will be
  567  operated ultimately by the association have been conveyed to
  568  purchasers;
  569         (c) When all the units that will be operated ultimately by
  570  the association have been completed, some of them have been
  571  conveyed to purchasers, and none of the others are being offered
  572  for sale by the developer in the ordinary course of business;
  573         (d) When some of the units have been conveyed to purchasers
  574  and none of the others are being constructed or offered for sale
  575  by the developer in the ordinary course of business;
  576         (e) When the developer files a petition seeking protection
  577  in bankruptcy;
  578         (f) When a receiver for the developer is appointed by a
  579  circuit court and is not discharged within 30 days after such
  580  appointment, unless the court determines within 30 days after
  581  appointment of the receiver that transfer of control would be
  582  detrimental to the association or its members; or
  583         (g) Seven years after recordation of the declaration of
  584  condominium; or, in the case of an association which may
  585  ultimately operate more than one condominium, 7 years after
  586  recordation of the declaration for the first condominium it
  587  operates; or, in the case of an association operating a phase
  588  condominium created pursuant to s. 718.403, 7 years after
  589  recordation of the declaration creating the initial phase,
  590  whichever occurs first. The developer is entitled to elect at
  591  least one member of the board of administration of an
  592  association as long as the developer holds for sale in the
  593  ordinary course of business at least 5 percent, in condominiums
  594  with fewer than 500 units, and 2 percent, in condominiums with
  595  more than 500 units, of the units in a condominium operated by
  596  the association. Following the time the developer relinquishes
  597  control of the association, the developer may exercise the right
  598  to vote any developer-owned units in the same manner as any
  599  other unit owner except for purposes of reacquiring control of
  600  the association or selecting the majority members of the board
  601  of administration.
  602         Section 9. Part VII of chapter 718, Florida Statutes,
  603  consisting of sections 718.701, 718.702, 718.703, 718.704,
  604  718.705, 718.706, 718.707, and 718.708, is created to read:
  605         718.701Short title.—This part may be cited as the
  606  “Distressed Condominium Relief Act.”
  607         718.702Legislative intent.—
  608         (1)The Legislature acknowledges the massive downturn in
  609  the condominium market which has transpired throughout the state
  610  and the impact of such downturn on developers, lenders, unit
  611  owners, and condominium associations. Numerous condominium
  612  projects have either failed or are in the process of failing,
  613  whereby the condominium has a small percentage of third-party
  614  unit owners as compared to the unsold inventory of units. As a
  615  result of the inability to find purchasers for this inventory of
  616  units, which results in part from the devaluing of real estate
  617  in this state, developers are unable to satisfy the requirements
  618  of their lenders, leading to defaults on mortgages.
  619  Consequently, lenders are faced with the task of finding a
  620  solution to the problem in order to be paid for their
  621  investments.
  622         (2)The Legislature recognizes that all of the factors
  623  listed in this section lead to condominiums becoming distressed,
  624  resulting in detriment to the unit owners and the condominium
  625  association on account of the resulting shortage of assessment
  626  moneys available to support the financial requirements for
  627  proper maintenance of the condominium. Such shortage and the
  628  resulting lack of proper maintenance further erodes property
  629  values. The Legislature finds that individuals and entities
  630  within Florida and in other states have expressed interest in
  631  purchasing unsold inventory in one or more condominium projects,
  632  but are reticent to do so because of accompanying liabilities
  633  inherited from the original developer, which are by definition
  634  imputed to the successor purchaser, including a foreclosing
  635  mortgagee. This results in the potential purchaser having
  636  unknown and unquantifiable risks, and potential successor
  637  purchasers are unwilling to accept such risks. The result is
  638  that condominium projects stagnate, leaving all parties involved
  639  at an impasse without the ability to find a solution.
  640         (3)The Legislature finds and declares that it is the
  641  public policy of this state to protect the interests of
  642  developers, lenders, unit owners, and condominium associations
  643  with regard to distressed condominiums, and that there is a need
  644  for relief from certain provisions of the Florida Condominium
  645  Act geared toward enabling economic opportunities within these
  646  condominiums for successor purchasers, including foreclosing
  647  mortgagees. Such relief would benefit existing unit owners and
  648  condominium associations. The Legislature further finds and
  649  declares that this situation cannot be open-ended without
  650  potentially prejudicing the rights of unit owners and
  651  condominium associations, and thereby declares that the
  652  provisions of this part shall be used by purchasers of
  653  condominium inventory for a specific and defined period.
  654         718.703Definitions.—As used in this part, the term:
  655         (1)“Bulk assignee” means a person who:
  656         (a)Acquires more than seven condominium parcels as set
  657  forth in s. 718.707; and
  658         (b)Receives an assignment of some or all of the rights of
  659  the developer as are set forth in the declaration of condominium
  660  or in this chapter by a written instrument recorded as an
  661  exhibit to the deed or as a separate instrument in the public
  662  records of the county in which the condominium is located.
  663         (2)“Bulk buyer” means a person who acquires more than
  664  seven condominium parcels as set forth in s. 718.707 but who
  665  does not receive an assignment of any developer rights other
  666  than the right to conduct sales, leasing, and marketing
  667  activities within the condominium.
  668         718.704Assignment and assumption of developer rights by
  669  bulk assignee; bulk buyer.—
  670         (1)A bulk assignee shall be deemed to have assumed and is
  671  liable for all duties and responsibilities of the developer
  672  under the declaration and this chapter, except:
  673         (a)Warranties of the developer under s. 718.203(1) or s.
  674  718.618, except for design, construction, development, or repair
  675  work performed by or on behalf of such bulk assignee;
  676         (b)The obligation to:
  677         1.Fund converter reserves under s. 718.618 for a unit that
  678  was not acquired by the bulk assignee; or
  679         2.Provide converter warranties on any portion of the
  680  condominium property except as may be expressly provided by the
  681  bulk assignee in the contract for purchase and sale executed
  682  with a purchaser and pertaining to any design, construction,
  683  development, or repair work performed by or on behalf of the
  684  bulk assignee;
  685         (c)The requirement to provide the association with a
  686  cumulative audit of the association’s finances from the date of
  687  formation of the condominium association as required by s.
  688  718.301. However, the bulk assignee shall provide an audit for
  689  the period for which the bulk assignee elects a majority of the
  690  members of the board of administration;
  691         (d)Any liability arising out of or in connection with
  692  actions taken by the board of administration or the developer
  693  appointed directors before the bulk assignee elects a majority
  694  of the members of the board of administration; and
  695         (e)Any liability for or arising out of the developer’s
  696  failure to fund previous assessments or to resolve budgetary
  697  deficits in relation to a developer’s right to guarantee
  698  assessments, except as otherwise provided in subsection (2).
  699  
  700  Further, the bulk assignee is responsible for delivering
  701  documents and materials in accordance with s. 718.705(3). A bulk
  702  assignee may expressly assume some or all of the obligations of
  703  the developer described in paragraphs (a)-(e).
  704         (2)A bulk assignee receiving the assignment of the rights
  705  of the developer to guarantee the level of assessments and fund
  706  budgetary deficits pursuant to s. 718.116 shall be deemed to
  707  have assumed and is liable for all obligations of the developer
  708  with respect to such guarantee, including any applicable funding
  709  of reserves to the extent required by law, for as long as the
  710  guarantee remains in effect. A bulk assignee not receiving an
  711  assignment of the right of the developer to guarantee the level
  712  of assessments and fund budgetary deficits pursuant to s.
  713  718.116 or a bulk buyer is not deemed to have assumed and is not
  714  liable for the obligations of the developer with respect to such
  715  guarantee, but is responsible for payment of assessments in the
  716  same manner as all other owners of condominium parcels.
  717         (3)A bulk buyer is liable for the duties and
  718  responsibilities of the developer under the declaration and this
  719  chapter only to the extent provided in this part, together with
  720  any other duties or responsibilities of the developer expressly
  721  assumed in writing by the bulk buyer.
  722         (4)An acquirer of condominium parcels is not considered a
  723  bulk assignee or a bulk buyer if the transfer to such acquirer
  724  was made with the intent to hinder, delay, or defraud any
  725  purchaser, unit owner, or the association, or if the acquirer is
  726  a person who would constitute an insider under s. 726.102(7).
  727         (5)An assignment of developer rights to a bulk assignee
  728  may be made by the developer, a previous bulk assignee, or a
  729  court of competent jurisdiction acting on behalf of the
  730  developer or the previous bulk assignee. At any particular time,
  731  there may be no more than one bulk assignee within a
  732  condominium, but there may be more than one bulk buyer. If more
  733  than one acquirer of condominium parcels receives an assignment
  734  of developer rights from the same person, the bulk assignee is
  735  the acquirer whose instrument of assignment is recorded first in
  736  applicable public records.
  737         718.705Board of administration; transfer of control.—
  738         (1)For purposes of determining the timing for transfer of
  739  control of the board of administration of the association to
  740  unit owners other than the developer under s. 718.301(1)(a) and
  741  (b), if a bulk assignee is entitled to elect a majority of the
  742  members of the board, a condominium parcel acquired by the bulk
  743  assignee shall not be deemed to be conveyed to a purchaser, or
  744  to be owned by an owner other than the developer, until such
  745  condominium parcel is conveyed to an owner who is not a bulk
  746  assignee.
  747         (2)Unless control of the board of administration of the
  748  association has already been relinquished pursuant to s.
  749  718.301(1), the bulk assignee is obligated to relinquish control
  750  of the association in accordance with s. 718.301 and this part.
  751         (3)When a bulk assignee relinquishes control of the board
  752  of administration as set forth in s. 718.301, the bulk assignee
  753  shall deliver all of those items required by s. 718.301(4).
  754  However, the bulk assignee is not required to deliver items and
  755  documents not in the possession of the bulk assignee during the
  756  period during which the bulk assignee was the owner of
  757  condominium parcels. In conjunction with acquisition of
  758  condominium parcels, a bulk assignee shall undertake a good
  759  faith effort to obtain the documents and materials required to
  760  be provided to the association pursuant to s. 718.301(4). To the
  761  extent the bulk assignee is not able to obtain all of such
  762  documents and materials, the bulk assignee shall certify in
  763  writing to the association the names or descriptions of the
  764  documents and materials that were not obtainable by the bulk
  765  assignee. Delivery of the certificate relieves the bulk assignee
  766  of responsibility for the delivery of the documents and
  767  materials referenced in the certificate as otherwise required
  768  under ss. 718.112 and 718.301 and this part. The responsibility
  769  of the bulk assignee for the audit required by s. 718.301(4)
  770  shall commence as of the date on which the bulk assignee elected
  771  a majority of the members of the board of administration.
  772         (4)If a conflict arises between the provisions or
  773  application of this section and s. 718.301, this section shall
  774  prevail.
  775         (5)Failure of a bulk assignee or bulk buyer to comply with
  776  all the requirements contained in this part shall result in the
  777  loss of any and all protections or exemptions provided under
  778  this part.
  779         718.706Specific provisions pertaining to offering of units
  780  by a bulk assignee or bulk buyer.—
  781         (1)Before offering any units for sale or for lease for a
  782  term exceeding 5 years, a bulk assignee or a bulk buyer shall
  783  file the following documents with the division and provide such
  784  documents to a prospective purchaser:
  785         (a)An updated prospectus or offering circular, or a
  786  supplement to the prospectus or offering circular, filed by the
  787  creating developer prepared in accordance with s. 718.504, which
  788  shall include the form of contract for purchase and sale in
  789  compliance with s. 718.503(2);
  790         (b)An updated Frequently Asked Questions and Answers
  791  sheet;
  792         (c)The executed escrow agreement if required under s.
  793  718.202; and
  794         (d)The financial information required by s. 718.111(13).
  795  However, if a financial information report does not exist for
  796  the fiscal year before acquisition of title by the bulk assignee
  797  or bulk buyer, or accounting records cannot be obtained in good
  798  faith by the bulk assignee or the bulk buyer which would permit
  799  preparation of the required financial information report, the
  800  bulk assignee or bulk buyer is excused from the requirement of
  801  this paragraph. However, the bulk assignee or bulk buyer must
  802  include in the purchase contract the following statement in
  803  conspicuous type:
  804         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
  805         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR
  806         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE
  807         CREATED BY THE SELLER AS A RESULT OF INSUFFICIENT
  808         ACCOUNTING RECORDS OF THE ASSOCIATION.
  809         (2)Before offering any units for sale or for lease for a
  810  term exceeding 5 years, a bulk assignee shall file with the
  811  division and provide to a prospective purchaser a disclosure
  812  statement that must include, but is not limited to:
  813         (a)A description to the purchaser of any rights of the
  814  developer which have been assigned to the bulk assignee;
  815         (b)The following statement in conspicuous type:
  816         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
  817         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
  818         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
  819         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
  820         OF SELLER; and
  821         (c)If the condominium is a conversion subject to part VI,
  822  the following statement in conspicuous type:
  823         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
  824         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
  825         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
  826         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
  827         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
  828         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
  829         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
  830         PERFORMED BY OR ON BEHALF OF THE SELLER.
  831         (3)In addition to the requirements set forth in subsection
  832  (1), a bulk assignee or bulk buyer must comply with the
  833  nondeveloper disclosure requirements set forth in s. 718.503(2)
  834  before offering any units for sale or for lease for a term
  835  exceeding 5 years.
  836         (4)A bulk assignee, while it is in control of the board of
  837  administration of the association, may not authorize, on behalf
  838  of the association:
  839         (a)The waiver of reserves or the reduction of funding of
  840  the reserves in accordance with s. 718.112(2)(f)2., unless
  841  approved by a majority of the voting interests not controlled by
  842  the developer, bulk assignee, and bulk buyer; or
  843         (b)The use of reserve expenditures for other purposes in
  844  accordance with s. 718.112(2)(f)3., unless approved by a
  845  majority of the voting interests not controlled by the
  846  developer, bulk assignee, and bulk buyer.
  847         (5)A bulk assignee, while it is in control of the board of
  848  administration of the association, shall comply with the
  849  requirements imposed upon developers to transfer control of the
  850  association to the unit owners in accordance with s. 718.301.
  851         (6)A bulk assignee or a bulk buyer shall comply with all
  852  the requirements of s. 718.302 regarding any contracts entered
  853  into by the association during the period the bulk assignee or
  854  bulk buyer maintains control of the board of administration.
  855  Unit owners shall be afforded all the protections contained in
  856  s. 718.302 regarding agreements entered into by the association
  857  before unit owners other than the developer, bulk assignee, or
  858  bulk buyer elected a majority of the board of administration.
  859         (7)A bulk buyer shall comply with the requirements
  860  contained in the declaration regarding any transfer of a unit,
  861  including sales, leases, and subleases. A bulk buyer is not
  862  entitled to any exemptions afforded a developer or successor
  863  developer under this chapter regarding any transfer of a unit,
  864  including sales, leases, or subleases.
  865         718.707Time limitation for classification as bulk assignee
  866  or bulk buyer.—A person acquiring condominium parcels may not be
  867  classified as a bulk assignee or bulk buyer unless the
  868  condominium parcels were acquired before July 1, 2011. The date
  869  of such acquisition shall be determined by the date of recording
  870  of a deed or other instrument of conveyance for such parcels in
  871  the public records of the county in which the condominium is
  872  located, or by the date of issuance of a certificate of title in
  873  a foreclosure proceeding with respect to such condominium
  874  parcels.
  875         718.708Liability of developers and others.—An assignment
  876  of developer rights to a bulk assignee or bulk buyer does not
  877  release the developer from any liabilities under the declaration
  878  or this chapter. This part does not limit the liability of the
  879  developer for claims brought by unit owners, bulk assignees, or
  880  bulk buyers for violations of this chapter by the developer,
  881  unless specifically excluded in this part. Nothing contained
  882  within this part waives, releases, compromises, or limits the
  883  liability of contractors, subcontractors, materialmen,
  884  manufacturers, architects, engineers, or any participant in the
  885  design or construction of a condominium for any claim brought by
  886  an association, unit owners, bulk assignees, or bulk buyers
  887  arising from the design of the condominium, construction
  888  defects, misrepresentations associated with condominium
  889  property, or violations of this chapter, unless specifically
  890  excluded in this part.
  891         Section 10. Subsections (3) and (4) of section 719.108,
  892  Florida Statutes, are amended, and subsection (10) is added to
  893  that section, to read:
  894         719.108 Rents and assessments; liability; lien and
  895  priority; interest; collection; cooperative ownership.—
  896         (3) Rents and assessments, and installments on them, not
  897  paid when due bear interest at the rate provided in the
  898  cooperative documents from the date due until paid. This rate
  899  may not exceed the rate allowed by law, and, if no rate is
  900  provided in the cooperative documents, then interest shall
  901  accrue at 18 percent per annum. Also, if the cooperative
  902  documents or bylaws so provide, the association may charge an
  903  administrative late fee in addition to such interest, in an
  904  amount not to exceed the greater of $25 or 5 percent of each
  905  installment of the assessment for each delinquent installment
  906  that the payment is late. Costs to the unit owner secured by the
  907  association’s claim of lien with regard to collection letters or
  908  any other collection efforts by management companies or licensed
  909  managers as to any delinquent installment of an assessment may
  910  not exceed $75 unless the management company prepares any letter
  911  or estoppel certificate required by this chapter and charges a
  912  reasonable fee related to the preparation of such letter or
  913  estoppel certificate. Any payment received by an association
  914  shall be applied first to any interest accrued by the
  915  association, then to any administrative late fee, then to any
  916  costs and reasonable attorney’s fees incurred in collection,
  917  then to any reasonable costs for collection services for which
  918  the association has contracted, and then to the delinquent
  919  assessment. The foregoing shall be applicable notwithstanding
  920  any restrictive endorsement, designation, or instruction placed
  921  on or accompanying a payment. A late fee is not subject to
  922  chapter 687 or s. 719.303(3).
  923         (4) The association shall have a lien on each cooperative
  924  parcel for any unpaid rents and assessments, plus interest, any
  925  authorized administrative late fees, and any reasonable costs
  926  for collection services for which the association has contracted
  927  against the unit owner of the cooperative parcel. If authorized
  928  by the cooperative documents, said lien shall also secure
  929  reasonable attorney’s fees incurred by the association incident
  930  to the collection of the rents and assessments or enforcement of
  931  such lien. The lien is effective from and after the recording of
  932  a claim of lien in the public records in the county in which the
  933  cooperative parcel is located which states the description of
  934  the cooperative parcel, the name of the unit owner, the amount
  935  due, and the due dates. The lien shall expire if a claim of lien
  936  is not filed within 1 year after the date the assessment was
  937  due, and no such lien shall continue for a longer period than 1
  938  year after the claim of lien has been recorded unless, within
  939  that time, an action to enforce the lien is commenced in a court
  940  of competent jurisdiction. Except as otherwise provided in this
  941  chapter, a lien may not be filed by the association against a
  942  cooperative parcel until 30 days after the date on which a
  943  notice of intent to file a lien has been delivered to the owner
  944  by registered or certified mail, return receipt requested, and
  945  by first-class United States mail to the owner at his or her
  946  last address in the records of the association, if the address
  947  is within the United States, and delivered to the owner at the
  948  address of the unit if the owner’s address as reflected in the
  949  records of the association is not the unit address. If the
  950  address in the records is outside the United States, notice
  951  shall be sent to that address and to the unit address by first
  952  class United States mail. Delivery of the notice shall be deemed
  953  given upon mailing as required by this subsection. No lien may
  954  be filed by the association against a cooperative parcel until
  955  30 days after the date on which a notice of intent to file a
  956  lien has been served on the unit owner of the cooperative parcel
  957  by certified mail or by personal service in the manner
  958  authorized by chapter 48 and the Florida Rules of Civil
  959  Procedure.
  960         (10)If the share is occupied by a tenant and the share
  961  owner is delinquent in the payment of regular assessments, the
  962  association may demand that the tenant pay to the association
  963  the future regular assessments related to the condominium share.
  964  The demand is continuing in nature, and upon demand, the tenant
  965  shall continue to pay the regular assessments to the association
  966  until the association releases the tenant or the tenant
  967  discontinues tenancy in the share. The association shall mail
  968  written notice to the share owner of the association’s demand
  969  that the tenant pay regular assessments to the association. The
  970  tenant is not liable for increases in the amount of the regular
  971  assessment due unless the tenant was reasonably notified of the
  972  increase before the day on which the rent is due. The liability
  973  of the tenant may not exceed the amount due from the tenant to
  974  the tenants’ landlord. The tenant’s landlord shall provide the
  975  tenant a credit against rents due to the unit owner in the
  976  amount of assessments paid to the association under this
  977  section. The association shall, upon request, provide the tenant
  978  with written receipts for payments made. The association may
  979  issue notices under s. 83.56 and may sue for eviction under ss.
  980  83.59-83.625 as if the association were a landlord under part II
  981  of chapter 83 if the tenant fails to pay an assessment. However,
  982  the association is not otherwise considered a landlord under
  983  chapter 83 and specifically has no duties under s. 83.51. The
  984  tenant does not, by virtue of payment of assessments, have any
  985  of the rights of a share owner to vote in any election or to
  986  examine the books and records of the association. A court may
  987  supersede the effect of this subsection by appointing a
  988  receiver.
  989         Section 11. Paragraph (b) of subsection (2) of section
  990  720.304, Florida Statutes, is amended to read:
  991         720.304 Right of owners to peaceably assemble; display of
  992  flag; SLAPP suits prohibited.—
  993         (2)
  994         (b) Any homeowner may erect a freestanding flagpole no more
  995  than 20 feet high on any portion of the homeowner’s real
  996  property, regardless of any covenants, restrictions, bylaws,
  997  rules, or requirements of the association, if the flagpole does
  998  not obstruct sightlines at intersections and is not erected
  999  within or upon an easement. The homeowner may further display in
 1000  a respectful manner from that flagpole, regardless of any
 1001  covenants, restrictions, bylaws, rules, or requirements of the
 1002  association, one official United States flag, not larger than 4
 1003  1/2 feet by 6 feet, and may additionally display one official
 1004  flag of the State of Florida or the United States Army, Navy,
 1005  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
 1006  additional flag must be equal in size to or smaller than the
 1007  United States flag. The flagpole and display are subject to all
 1008  building codes, zoning setbacks, and other applicable
 1009  governmental regulations, including, but not limited to, noise
 1010  and lighting ordinances in the county or municipality in which
 1011  the flag pole is erected.
 1012         Section 12. Subsection (2) of section 720.305, Florida
 1013  Statutes, is amended to read:
 1014         720.305 Obligations of members; remedies at law or in
 1015  equity; levy of fines and suspension of use rights.—
 1016         (2) If a member is delinquent for more than 90 days in the
 1017  payment of a regular or special assessment or if the governing
 1018  documents so provide, an association may suspend, for a
 1019  reasonable period of time, the rights of a member or a member’s
 1020  tenants, guests, or invitees, or both, to use common areas and
 1021  facilities and may levy reasonable fines of up to, not to exceed
 1022  $100 per violation, against any member or any tenant, guest, or
 1023  invitee. A fine may be levied on the basis of each day of a
 1024  continuing violation, with a single notice and opportunity for
 1025  hearing, except that a no such fine may not shall exceed $1,000
 1026  in the aggregate unless otherwise provided in the governing
 1027  documents. A fine of less than $1,000 may shall not become a
 1028  lien against a parcel. In any action to recover a fine, the
 1029  prevailing party is entitled to collect its reasonable
 1030  attorney’s fees and costs from the nonprevailing party as
 1031  determined by the court. The provisions regarding the
 1032  suspension-of-use rights do not apply to the portion of common
 1033  areas that must be used to provide access to the parcel or
 1034  utility services provided to the parcel.
 1035         (a) A fine or suspension may not be imposed without notice
 1036  of at least 14 days to the person sought to be fined or
 1037  suspended and an opportunity for a hearing before a committee of
 1038  at least three members appointed by the board who are not
 1039  officers, directors, or employees of the association, or the
 1040  spouse, parent, child, brother, or sister of an officer,
 1041  director, or employee. If the committee, by majority vote, does
 1042  not approve a proposed fine or suspension, it may not be
 1043  imposed.
 1044         (b) The requirements of this subsection do not apply to the
 1045  imposition of suspensions or fines upon any member because of
 1046  the failure of the member to pay assessments or other charges
 1047  when due if such action is authorized by the governing
 1048  documents. If such a fine or suspension is imposed, the
 1049  association must levy the fine or impose a reasonable suspension
 1050  at a properly noticed board meeting, and after the imposition of
 1051  such fine or suspension, the association must notify the owner
 1052  and, if applicable, the unit’s occupant, licensee, or invitee by
 1053  mail or hand delivery.
 1054         (c) Suspension of common-area-use rights shall not impair
 1055  the right of an owner or tenant of a parcel to have vehicular
 1056  and pedestrian ingress to and egress from the parcel, including,
 1057  but not limited to, the right to park.
 1058         Section 13. Subsection (8) is added to section 720.3085,
 1059  Florida Statutes, to read:
 1060         720.3085 Payment for assessments; lien claims.—
 1061         (8)If the parcel is occupied by a tenant and the parcel
 1062  owner is delinquent in the payment of regular assessments, the
 1063  association may demand that the tenant pay to the association
 1064  the future regular assessments related to the parcel. The demand
 1065  is continuing in nature, and upon demand, the tenant shall
 1066  continue to pay the regular assessments to the association until
 1067  the association releases the tenant or the tenant discontinues
 1068  tenancy in the parcel. The association shall mail written notice
 1069  to the parcel owner of the association’s demand that the tenant
 1070  pay regular assessments to the association. The tenant is not
 1071  liable for increases in the amount of the regular assessment due
 1072  unless the tenant was reasonably notified of the increase before
 1073  the day on which the rent is due. The tenant shall be given a
 1074  credit against rents due to the parcel owner in the amount of
 1075  assessments paid to the association. The association shall, upon
 1076  request, provide the tenant with written receipts for payments
 1077  made. The association may issue notices under s. 83.56 and may
 1078  sue for eviction under ss. 83.59-83.625 as if the association
 1079  were a landlord under part II of chapter 83 if the tenant fails
 1080  to pay an assessment. However, the association is not otherwise
 1081  considered a landlord under chapter 83 and specifically has no
 1082  duties under s. 83.51. The tenant does not, by virtue of payment
 1083  of assessments, have any of the rights of a parcel owner to vote
 1084  in any election or to examine the books and records of the
 1085  association. A court may supersede the effect of this subsection
 1086  by appointing a receiver.
 1087         Section 14. Subsection (6) is added to section 720.31,
 1088  Florida Statutes, to read:
 1089         720.31 Recreational leaseholds; right to acquire;
 1090  escalation clauses.—
 1091         (6)An association may enter into agreements to acquire
 1092  leaseholds, memberships, and other possessory or use interests
 1093  in lands or facilities such as country clubs, golf courses,
 1094  marinas, and other recreational facilities. An association may
 1095  enter into such agreements regardless of whether the lands or
 1096  facilities are contiguous to the lands of the community or
 1097  whether such lands or facilities are intended to provide
 1098  enjoyment, recreation, or other use or benefit to the owners.
 1099  All leaseholds, memberships, and other possessory or use
 1100  interests existing or created at the time of recording the
 1101  declaration must be stated and fully described in the
 1102  declaration. Subsequent to the recording of the declaration,
 1103  agreements acquiring leaseholds, memberships, or other
 1104  possessory or use interests not entered into within 12 months
 1105  following the recording of the declaration may be entered into
 1106  only if authorized by the declaration for material alterations
 1107  or substantial additions to the common areas or association
 1108  property. If the declaration is silent, any such transaction
 1109  requires the approval of 75 percent of the total voting
 1110  interests of the association. The declaration may provide that
 1111  the rental, membership fees, operations, replacements, or other
 1112  expenses are common expenses; impose covenants and restrictions
 1113  concerning their use; and contain other provisions not
 1114  inconsistent with this subsection. An association exercising its
 1115  rights under this subsection may join with other associations
 1116  that are part of the same development or with a master
 1117  association responsible for the enforcement of shared covenants,
 1118  conditions, and restrictions in carrying out the intent of this
 1119  subsection.
 1120         Section 15. Subsection (17) of section 721.05, Florida
 1121  Statutes, is amended to read:
 1122         721.05 Definitions.—As used in this chapter, the term:
 1123         (17) “Facility” means any permanent amenity, including any
 1124  structure, furnishing, fixture, equipment, service, improvement,
 1125  or real or personal property, improved or unimproved, other than
 1126  an accommodation of the timeshare plan, which is made available
 1127  to the purchasers of a timeshare plan. The term does not include
 1128  an incidental benefit as defined in this section.
 1129         Section 16. Subsection (2) of section 553.509, Florida
 1130  Statutes, is repealed.
 1131         Section 17. Paragraph (b) of subsection (2), paragraphs (a)
 1132  and (c) of subsection (5), and paragraphs (b), (c), (d), (f),
 1133  and (g) of subsection (6) of section 720.303, Florida Statutes,
 1134  are amended, and subsection (12) is added to that section, to
 1135  read:
 1136         720.303 Association powers and duties; meetings of board;
 1137  official records; budgets; financial reporting; association
 1138  funds; recalls.—
 1139         (2) BOARD MEETINGS.—
 1140         (b) Members have the right to attend all meetings of the
 1141  board and to speak on any matter placed on the agenda by
 1142  petition of the voting interests for at least 3 minutes. The
 1143  association may adopt written reasonable rules expanding the
 1144  right of members to speak and governing the frequency, duration,
 1145  and other manner of member statements, which rules must be
 1146  consistent with this paragraph and may include a sign-up sheet
 1147  for members wishing to speak. Notwithstanding any other law, the
 1148  requirement that board meetings and committee meetings be open
 1149  to the members is inapplicable to meetings between the board or
 1150  a committee and the association’s attorney to discuss proposed
 1151  or pending litigation, or with respect to meetings of the board
 1152  held for the purpose of discussing personnel matters are not
 1153  required to be open to the members.
 1154         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 1155  shall be maintained within the state and must be open to
 1156  inspection and available for photocopying by members or their
 1157  authorized agents at reasonable times and places within 10
 1158  business days after receipt of a written request for access.
 1159  This subsection may be complied with by having a copy of the
 1160  official records available for inspection or copying in the
 1161  community. If the association has a photocopy machine available
 1162  where the records are maintained, it must provide parcel owners
 1163  with copies on request during the inspection if the entire
 1164  request is limited to no more than 25 pages.
 1165         (a) The failure of an association to provide access to the
 1166  records within 10 business days after receipt of a written
 1167  request submitted by certified mail, return receipt requested,
 1168  creates a rebuttable presumption that the association willfully
 1169  failed to comply with this subsection.
 1170         (c) The association may adopt reasonable written rules
 1171  governing the frequency, time, location, notice, records to be
 1172  inspected, and manner of inspections, but may not require impose
 1173  a requirement that a parcel owner to demonstrate any proper
 1174  purpose for the inspection, state any reason for the inspection,
 1175  or limit a parcel owner’s right to inspect records to less than
 1176  one 8-hour business day per month. The association may impose
 1177  fees to cover the costs of providing copies of the official
 1178  records, including, without limitation, the costs of copying.
 1179  The association may charge up to 50 cents per page for copies
 1180  made on the association’s photocopier. If the association does
 1181  not have a photocopy machine available where the records are
 1182  kept, or if the records requested to be copied exceed 25 pages
 1183  in length, the association may have copies made by an outside
 1184  vendor or association management company personnel and may
 1185  charge the actual cost of copying, including any reasonable
 1186  costs involving personnel fees and charges at an hourly rate for
 1187  employee time to cover administrative costs to the association.
 1188  The association shall maintain an adequate number of copies of
 1189  the recorded governing documents, to ensure their availability
 1190  to members and prospective members. Notwithstanding the
 1191  provisions of this paragraph, the following records are shall
 1192  not be accessible to members or parcel owners:
 1193         1. Any record protected by the lawyer-client privilege as
 1194  described in s. 90.502 and any record protected by the work
 1195  product privilege, including, but not limited to, any record
 1196  prepared by an association attorney or prepared at the
 1197  attorney’s express direction which reflects a mental impression,
 1198  conclusion, litigation strategy, or legal theory of the attorney
 1199  or the association and which was prepared exclusively for civil
 1200  or criminal litigation or for adversarial administrative
 1201  proceedings or which was prepared in anticipation of imminent
 1202  civil or criminal litigation or imminent adversarial
 1203  administrative proceedings until the conclusion of the
 1204  litigation or adversarial administrative proceedings.
 1205         2. Information obtained by an association in connection
 1206  with the approval of the lease, sale, or other transfer of a
 1207  parcel.
 1208         3. Disciplinary, health, insurance, and personnel records,
 1209  including payroll records, of the association’s employees.
 1210         4. Medical records of parcel owners or community residents.
 1211         (6) BUDGETS.—
 1212         (b) In addition to annual operating expenses, the budget
 1213  may include reserve accounts for capital expenditures and
 1214  deferred maintenance for which the association is responsible.
 1215  If reserve accounts are not established pursuant to paragraph
 1216  (d), funding of such reserves shall be limited to the extent
 1217  that the governing documents do not limit increases in
 1218  assessments, including reserves. If the budget of the
 1219  association includes reserve accounts established pursuant to
 1220  paragraph (d), such reserves shall be determined, maintained,
 1221  and waived in the manner provided in this subsection. Once an
 1222  association provides for reserve accounts pursuant to paragraph
 1223  (d) in the budget, the association shall thereafter determine,
 1224  maintain, and waive reserves in compliance with this subsection.
 1225  The provisions of this section do not preclude the termination
 1226  of a reserve account established pursuant to this paragraph upon
 1227  approval of a majority of the voting interests of the
 1228  association. Upon such approval, the terminating reserve account
 1229  shall be removed from the budget.
 1230         (c)1. If the budget of the association does not provide for
 1231  reserve accounts pursuant to paragraph (d) governed by this
 1232  subsection and the association is responsible for the repair and
 1233  maintenance of capital improvements that may result in a special
 1234  assessment if reserves are not provided, each financial report
 1235  for the preceding fiscal year required by subsection (7) shall
 1236  contain the following statement in conspicuous type: THE BUDGET
 1237  OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
 1238  CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
 1239  SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
 1240  ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
 1241  FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
 1242  MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
 1243  VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
 1244         2.If the budget of the association does provide for
 1245  funding accounts for deferred expenditures, including, but not
 1246  limited to, funds for capital expenditures and deferred
 1247  maintenance, but such accounts are not created or established
 1248  pursuant to paragraph (d), each financial report for the
 1249  preceding fiscal year required under subsection (7) must also
 1250  contain the following statement in conspicuous type: THE BUDGET
 1251  OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
 1252  EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
 1253  DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
 1254  OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
 1255  PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
 1256  FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
 1257  RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
 1258  ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
 1259         (d) An association shall be deemed to have provided for
 1260  reserve accounts if when reserve accounts have been initially
 1261  established by the developer or if when the membership of the
 1262  association affirmatively elects to provide for reserves. If
 1263  reserve accounts are not initially provided for by the
 1264  developer, the membership of the association may elect to do so
 1265  upon the affirmative approval of not less than a majority of the
 1266  total voting interests of the association. Such approval may be
 1267  obtained attained by vote of the members at a duly called
 1268  meeting of the membership or by the upon a written consent of
 1269  executed by not less than a majority of the total voting
 1270  interests in the community. The approval action of the
 1271  membership shall state that reserve accounts shall be provided
 1272  for in the budget and shall designate the components for which
 1273  the reserve accounts are to be established. Upon approval by the
 1274  membership, the board of directors shall include provide for the
 1275  required reserve accounts for inclusion in the budget in the
 1276  next fiscal year following the approval and in each year
 1277  thereafter. Once established as provided in this subsection, the
 1278  reserve accounts shall be funded or maintained or shall have
 1279  their funding waived in the manner provided in paragraph (f).
 1280         (f) After one or more Once a reserve account or reserve
 1281  accounts are established, the membership of the association,
 1282  upon a majority vote at a meeting at which a quorum is present,
 1283  may provide for no reserves or less reserves than required by
 1284  this section. If a meeting of the unit owners has been called to
 1285  determine whether to waive or reduce the funding of reserves and
 1286  no such result is achieved or a quorum is not present, the
 1287  reserves as included in the budget shall go into effect. After
 1288  the turnover, the developer may vote its voting interest to
 1289  waive or reduce the funding of reserves. Any vote taken pursuant
 1290  to this subsection to waive or reduce reserves is shall be
 1291  applicable only to one budget year.
 1292         (g) Funding formulas for reserves authorized by this
 1293  section shall be based on either a separate analysis of each of
 1294  the required assets or a pooled analysis of two or more of the
 1295  required assets.
 1296         1. If the association maintains separate reserve accounts
 1297  for each of the required assets, the amount of the contribution
 1298  to each reserve account is shall be the sum of the following two
 1299  calculations:
 1300         a. The total amount necessary, if any, to bring a negative
 1301  component balance to zero.
 1302         b. The total estimated deferred maintenance expense or
 1303  estimated replacement cost of the reserve component less the
 1304  estimated balance of the reserve component as of the beginning
 1305  of the period for which the budget will be in effect. The
 1306  remainder, if greater than zero, shall be divided by the
 1307  estimated remaining useful life of the component.
 1308  
 1309  The formula may be adjusted each year for changes in estimates
 1310  and deferred maintenance performed during the year and may
 1311  include factors such as inflation and earnings on invested
 1312  funds.
 1313         2. If the association maintains a pooled account of two or
 1314  more of the required reserve assets, the amount of the
 1315  contribution to the pooled reserve account as disclosed on the
 1316  proposed budget may shall not be less than that required to
 1317  ensure that the balance on hand at the beginning of the period
 1318  for which the budget will go into effect plus the projected
 1319  annual cash inflows over the remaining estimated useful life of
 1320  all of the assets that make up the reserve pool are equal to or
 1321  greater than the projected annual cash outflows over the
 1322  remaining estimated useful lives of all of the assets that make
 1323  up the reserve pool, based on the current reserve analysis. The
 1324  projected annual cash inflows may include estimated earnings
 1325  from investment of principal and accounts receivable minus the
 1326  allowance for doubtful accounts. The reserve funding formula may
 1327  shall not include any type of balloon payments.
 1328         (12)COMPENSATION PROHIBITED.—A director, officer, or
 1329  committee member of the association may not directly receive any
 1330  salary or compensation from the association for the performance
 1331  of duties as a director, officer, or committee member and may
 1332  not in any other way benefit financially from service to the
 1333  association. This subsection does not preclude:
 1334         (a)Participation by such person in a financial benefit
 1335  accruing to all or a significant number of members as a result
 1336  of actions lawfully taken by the board or a committee of which
 1337  he or she is a member, including, but not limited to, routine
 1338  maintenance, repair, or replacement of community assets.
 1339         (b)Reimbursement for out-of-pocket expenses incurred by
 1340  such person on behalf of the association, subject to approval in
 1341  accordance with procedures established by the association’s
 1342  governing documents or, in the absence of such procedures, in
 1343  accordance with an approval process established by the board.
 1344         (c)Any recovery of insurance proceeds derived from a
 1345  policy of insurance maintained by the association for the
 1346  benefit of its members.
 1347         (d)Any fee or compensation authorized in the governing
 1348  documents.
 1349         (e)Any fee or compensation authorized in advance by a vote
 1350  of a majority of the voting interests voting in person or by
 1351  proxy at a meeting of the members.
 1352         (f)A developer or its representative from serving as a
 1353  director, officer, or committee member of the association and
 1354  benefitting financially from service to the association.
 1355         Section 18. Subsections (8) and (9) of section 720.306,
 1356  Florida Statutes, are amended to read:
 1357         720.306 Meetings of members; voting and election
 1358  procedures; amendments.—
 1359         (8) PROXY VOTING.—The members have the right, unless
 1360  otherwise provided in this subsection or in the governing
 1361  documents, to vote in person or by proxy.
 1362         (a) To be valid, a proxy must be dated, must state the
 1363  date, time, and place of the meeting for which it was given, and
 1364  must be signed by the authorized person who executed the proxy.
 1365  A proxy is effective only for the specific meeting for which it
 1366  was originally given, as the meeting may lawfully be adjourned
 1367  and reconvened from time to time, and automatically expires 90
 1368  days after the date of the meeting for which it was originally
 1369  given. A proxy is revocable at any time at the pleasure of the
 1370  person who executes it. If the proxy form expressly so provides,
 1371  any proxy holder may appoint, in writing, a substitute to act in
 1372  his or her place.
 1373         (b)If the governing documents permit voting by secret
 1374  ballot by members who are not in attendance at a meeting of the
 1375  members for the election of directors, such ballots shall be
 1376  placed in an inner envelope with no identifying markings and
 1377  mailed or delivered to the association in an outer envelope
 1378  bearing identifying information reflecting the name of the
 1379  member, the lot or parcel for which the vote is being cast, and
 1380  the signature of the lot or parcel owner casting that ballot. If
 1381  the eligibility of the member to vote is confirmed and no other
 1382  ballot has been submitted for that lot or parcel, the inner
 1383  envelope shall be removed from the outer envelope bearing the
 1384  identification information, placed with the ballots which were
 1385  personally cast, and opened when the ballots are counted. If
 1386  more than one ballot is submitted for a lot or parcel, the
 1387  ballots for that lot or parcel shall be disqualified. Any vote
 1388  by ballot received after the closing of the balloting may not be
 1389  considered.
 1390         (9) ELECTIONS.—Elections of directors must be conducted in
 1391  accordance with the procedures set forth in the governing
 1392  documents of the association. All members of the association are
 1393  shall be eligible to serve on the board of directors, and a
 1394  member may nominate himself or herself as a candidate for the
 1395  board at a meeting where the election is to be held or, if the
 1396  election process allows voting by absentee ballot, in advance of
 1397  the balloting. Except as otherwise provided in the governing
 1398  documents, boards of directors must be elected by a plurality of
 1399  the votes cast by eligible voters. Any election dispute between
 1400  a member and an association must be submitted to mandatory
 1401  binding arbitration with the division. Such proceedings shall be
 1402  conducted in the manner provided by s. 718.1255 and the
 1403  procedural rules adopted by the division.
 1404         Section 19. Section 720.315, Florida Statutes, is created
 1405  to read:
 1406         720.315Passage of special assessments before turnover by
 1407  developer.—Before turnover, the board of directors controlled by
 1408  the developer may not levy a special assessment unless a
 1409  majority of the parcel owners other than the developer have
 1410  approved the special assessment by a majority vote at a duly
 1411  called special meeting of the membership at which a quorum is
 1412  present.
 1413         Section 20. This act shall take effect July 1, 2009.
 1414  
 1415  
 1416  ================= T I T L E  A M E N D M E N T ================
 1417         And the title is amended as follows:
 1418         Delete everything before the enacting clause
 1419  and insert:
 1420                        A bill to be entitled                      
 1421         An act relating to community associations; amending s.
 1422         718.110, F.S.; providing for the application of
 1423         certain amendments to a declaration of condominium to
 1424         certain unit owners; amending s. 718.111, F.S.;
 1425         providing penalties for any person who knowingly or
 1426         intentionally defaces or destroys certain records of
 1427         an association with the intent to harm the association
 1428         or any of its members; providing that an association
 1429         is not responsible for the use or misuse of certain
 1430         information obtained pursuant to state law requiring
 1431         the maintenance of certain records of an association;
 1432         providing an exception; providing that,
 1433         notwithstanding the other requirements, certain
 1434         records are not accessible to unit owners; requiring
 1435         that any rules adopted for the purpose of setting
 1436         forth accounting principles or addressing financial
 1437         reporting requirements include certain provisions and
 1438         standards; amending s. 718.112, F.S.; providing that a
 1439         director or officer delinquent in the payment of fee,
 1440         fine, regular assesment, or special assessments by
 1441         more than a specified number of days is deemed to have
 1442         abandoned the office; requiring that a director
 1443         charged by information or indictment of certain
 1444         offenses involving an association’s funds or property
 1445         be removed from office; amending s. 718.115, F.S.;
 1446         requiring that certain services obtained pursuant to a
 1447         bulk contract as provided in the declaration be deemed
 1448         a common expense; requiring that such contracts
 1449         contain certain provisions; authorizing the
 1450         cancellation of certain contracts; amending s.
 1451         718.116, F.S.; limiting the amount of certain costs to
 1452         the unit owner; providing an exception; authorizing an
 1453         association to demand future regular assessments
 1454         related to the condominium unit under specified
 1455         conditions; providing that the demand is continuing in
 1456         nature; requiring that a tenant continue to pay
 1457         assessments until the occurrence of specified events;
 1458         requiring the delivery of notice of such demand;
 1459         limiting the liability of a tenant; amending s.
 1460         718.303, F.S.; authorizing an association to suspend
 1461         for a reasonable time the right of a unit owner or the
 1462         unit’s occupant, licensee, or invitee to use certain
 1463         common elements under certain circumstances; excluding
 1464         certain common elements from such authorization;
 1465         prohibiting a fine from being levied or a suspension
 1466         from being imposed unless the association meets
 1467         certain notice requirements; providing circumstances
 1468         under which such notice requirements do not apply;
 1469         providing procedures and notice requirements for
 1470         levying a fine or imposing a suspension; authorizing
 1471         an association to suspend voting rights due to
 1472         nonpayment of assessments, fines, or other charges
 1473         delinquent by a specified number of days under certain
 1474         circumstances; amending s. 718.103, F.S.; expanding
 1475         the definition of “developer” to include a bulk
 1476         assignee or bulk buyer; amending s. 718.301, F.S.;
 1477         revising conditions under which unit owners other than
 1478         the developer may elect not less than a majority of
 1479         the members of the board of administration of an
 1480         association; creating part VII of ch. 718, F.S.;
 1481         providing a short title; providing legislative
 1482         findings and intent; defining the terms “bulk
 1483         assignee” and “bulk buyer”; providing for the
 1484         assignment of developer rights by a bulk assignee;
 1485         specifying liabilities of bulk assignees and bulk
 1486         buyers; providing exceptions; providing additional
 1487         responsibilities of bulk assignees and bulk buyers;
 1488         authorizing certain entities to assign developer
 1489         rights to a bulk assignee; limiting the number of bulk
 1490         assignees at any given time; providing for the
 1491         transfer of control of a board of administration;
 1492         providing effects of such transfer on parcels acquired
 1493         by a bulk assignee; providing obligations of a bulk
 1494         assignee upon the transfer of control of a board of
 1495         administration; requiring that a bulk assignee certify
 1496         certain information in writing; providing for the
 1497         resolution of a conflict between specified provisions
 1498         of state law; providing that the failure of a bulk
 1499         assignee or bulk buyer to comply with specified
 1500         provisions of state law results in the loss of certain
 1501         protections and exemptions; requiring that a bulk
 1502         assignee or bulk buyer file certain information with
 1503         the Division of Florida Condominiums, Timeshares, and
 1504         Mobile Homes of the Department of Business and
 1505         Professional Regulation before offering any units for
 1506         sale or lease in excess of a specified term; requiring
 1507         that a copy of such information be provided to a
 1508         prospective purchaser; requiring that certain
 1509         contracts and disclosure statements contain specified
 1510         statements; requiring that a bulk assignee or bulk
 1511         buyer comply with certain disclosure requirements;
 1512         prohibiting a bulk assignee from taking certain
 1513         actions on behalf of an association while the bulk
 1514         assignee is in control of the board of administration
 1515         of the association and requiring that such bulk
 1516         assignee comply with certain requirements; requiring
 1517         that a bulk assignee or bulk buyer comply with certain
 1518         requirements regarding certain contracts; providing
 1519         unit owners with specified protections regarding
 1520         certain contracts; requiring that a bulk buyer comply
 1521         with certain requirements regarding the transfer of a
 1522         unit; prohibiting a person from being classified as a
 1523         bulk assignee or bulk buyer unless condominium parcels
 1524         were acquired before a specified date; providing for
 1525         the determination of the date of acquisition of a
 1526         parcel; providing that the assignment of developer
 1527         rights to a bulk assignee does not release a developer
 1528         from certain liabilities; preserving certain
 1529         liabilities for certain parties; amending s. 719.108,
 1530         F.S.; authorizing an association to recover charges
 1531         incurred in connection with collecting a delinquent
 1532         assessment up to a specified maximum amount; providing
 1533         a prioritized list for disbursement of payments
 1534         received by an association; providing for a lien by an
 1535         association on a condominium unit for certain fees and
 1536         costs; providing procedures and notice requirements
 1537         for the filing of a lien by an association;
 1538         authorizing an association to demand future regular
 1539         assessments related to a unit under specified
 1540         conditions; amending s. 720.304, F.S.; providing that
 1541         a flagpole and any flagpole display are subject to
 1542         certain codes and regulations; amending s. 720.305,
 1543         F.S.; authorizing the association to suspend certain
 1544         rights under certain circumstances; providing that
 1545         certain provisions regarding the suspension-of-use
 1546         rights of an association do not apply to certain
 1547         portions of common areas; providing procedures and
 1548         notice requirements for levying a fine or imposing a
 1549         suspension; amending s. 720.3085, F.S.; authorizing an
 1550         association to demand future regular assessments
 1551         related to a parcel under specified conditions;
 1552         amending s. 720.31, F.S.; authorizing an association
 1553         to enter into certain agreements; requiring that
 1554         certain items be stated and fully described in the
 1555         declaration; limiting an association’s power to enter
 1556         into such agreements after a specified period
 1557         following the recording of a declaration; requiring
 1558         that certain agreements be approved by a specified
 1559         percentage of voting interests of an association when
 1560         the declaration is silent as to the authority of an
 1561         association to enter into such agreement; authorizing
 1562         an association to join with other associations or a
 1563         master association under certain circumstances and for
 1564         specified purposes; amending s. 721.05, F.S.; limiting
 1565         the definition of “facility” to certain permanent
 1566         amenities; repealing s. 553.509(2), F.S., relating to
 1567         public elevators and emergency operation plans in
 1568         certain condominiums and multifamily dwellings;
 1569         amending s. 720.303, F.S.; revising provisions
 1570         relating to homeowners’ association board meetings,
 1571         inspection and copying of records, and reserve
 1572         accounts of budgets; prohibiting certain association
 1573         personnel from receiving a salary or compensation;
 1574         providing exceptions; amending s. 720.306, F.S.;
 1575         providing requirements for secret ballots; creating s.
 1576         720.315, F.S.; prohibiting the board of directors of a
 1577         homeowners’ association from levying a special
 1578         assessment before turnover of the association by the
 1579         developer unless certain conditions are met; providing
 1580         an effective date.