CODING: Words stricken are deletions; words underlined are additions.


H

Senator Dudley moved the following amendment:



                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    

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11  Senator Dudley moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 718.103, Florida Statutes, is

18  amended to read:

19         718.103  Definitions.--As used in this chapter, the

20  term:

21         (1)  "Assessment" means a share of the funds which are

22  required for the payment of common expenses, which from time

23  to time is assessed against the unit owner.

24         (2)  "Association" means, in addition to those entities

25  responsible for the operation of common elements owned in

26  undivided shares by unit owners, any entity which operates or

27  maintains other real property in which condominium unit owners

28  have use rights, where unit owner membership in the entity is

29  composed exclusively of condominium unit owners or their

30  elected or appointed representatives, and where membership in

31  the entity is a required condition of unit ownership.

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1         (3)  "Association property" means that property, real

 2  and personal, which is owned or leased by, or is dedicated by

 3  a recorded plat to, the association for the use and benefit of

 4  its members.

 5         (4)  "Board of administration" means the board of

 6  directors or other representative body which is responsible

 7  for administration of the association.

 8         (5)  "Buyer" means a person who purchases a

 9  condominium. The term "purchaser" may be used interchangeably

10  with the term "buyer."

11         (6)(5)  "Bylaws" means the bylaws of the association as

12  they exist from time to time.

13         (7)(6)  "Committee" means a group of board members,

14  unit owners, or board members and unit owners appointed by the

15  board or a member of the board to make recommendations to the

16  board regarding the association budget or take action on

17  behalf of the board.

18         (8)(7)  "Common elements" means the portions of the

19  condominium property which are not included in the units.

20         (9)(8)  "Common expenses" means all expenses and

21  assessments which are properly incurred by the association for

22  the condominium.

23         (10)(9)  "Common surplus" means the excess of all

24  receipts of the association collected on behalf of a

25  condominium (including, but not limited to, assessments,

26  rents, profits, and revenues on account of the common

27  elements) over the common expenses.

28         (11)(10)  "Condominium" means that form of ownership of

29  real property which is created pursuant to the provisions of

30  this chapter, which is comprised of units that may be owned by

31  one or more persons, and in which there is, appurtenant to

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  each unit, an undivided share in common elements.

 2         (12)(11)  "Condominium parcel" means a unit, together

 3  with the undivided share in the common elements which is

 4  appurtenant to the unit.

 5         (13)(12)  "Condominium property" means the lands,

 6  leaseholds, and personal property that are subjected to

 7  condominium ownership, whether or not contiguous, and all

 8  improvements thereon and all easements and rights appurtenant

 9  thereto intended for use in connection with the condominium.

10         (14)(13)  "Conspicuous type" means type in capital

11  letters no smaller than the largest type, exclusive of

12  headings, on the page on which it appears and, in all cases,

13  at least 10-point type.  Where conspicuous type is required,

14  it must be separated on all sides from other type and print.

15  Conspicuous type may be used in contracts for purchase or

16  public offering statements only where required by law.

17         (15)(14)  "Declaration" or "declaration of condominium"

18  means the instrument or instruments by which a condominium is

19  created, as they are from time to time amended.

20         (16)(15)  "Developer" means a person who creates a

21  condominium or offers condominium parcels for sale or lease in

22  the ordinary course of business, but does not include an owner

23  or lessee of a condominium or cooperative unit who has

24  acquired the unit for his or her own occupancy, nor does it

25  include a cooperative association which creates a condominium

26  by conversion of an existing residential cooperative after

27  control of the association has been transferred to the unit

28  owners if, following the conversion, the unit owners will be

29  the same persons who were unit owners of the cooperative and

30  no units are offered for sale or lease to the public as part

31  of the plan of conversion.

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1         (17)  "Division" means the Division of Florida Land

 2  Sales, Condominiums, and Mobile Homes of the Department of

 3  Business and Professional Regulation.

 4         (18)(16)  "Land" means, unless otherwise defined in the

 5  declaration as hereinafter provided, the surface of a legally

 6  described parcel of real property and includes, unless

 7  otherwise specified in the declaration and whether separate

 8  from or including such surface, airspace lying above and

 9  subterranean space lying below such surface.  However, if so

10  defined in the declaration, the term "land" may mean all or

11  any portion of the airspace or subterranean space between two

12  legally identifiable elevations and may exclude the surface of

13  a parcel of real property and may mean any combination of the

14  foregoing, whether or not contiguous.

15         (19)(17)  "Limited common elements" means those common

16  elements which are reserved for the use of a certain

17  condominium unit or units to the exclusion of other units, as

18  specified in the declaration of condominium.

19         (20)(18)  "Operation" or "operation of the condominium"

20  includes the administration and management of the condominium

21  property.

22         (21)(19)  "Rental agreement" means any written

23  agreement, or oral agreement if for less duration than 1 year,

24  providing for use and occupancy of premises.

25         (22)(20)  "Residential condominium" means a condominium

26  consisting of condominium units, any of which are intended for

27  use as a private temporary or permanent residence, except that

28  a condominium is not a residential condominium if the use for

29  which the units are intended is primarily commercial or

30  industrial and not more than three units are intended to be

31  used for private residence, and are intended to be used as

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  housing for maintenance, managerial, janitorial, or other

 2  operational staff of the condominium. With respect to a

 3  condominium that is not a timeshare condominium, a residential

 4  unit includes a unit intended as a private temporary or

 5  permanent residence as well as a unit not intended for

 6  commercial or industrial use. With respect to a timeshare

 7  condominium, the timeshare instrument as defined in s.

 8  721.05(28) shall govern the intended use of each unit in the

 9  condominium. If a condominium is a residential condominium but

10  contains units intended to be used for commercial or

11  industrial purposes, then, with respect to those units which

12  are not intended for or used as private residences, the

13  condominium is not a residential condominium.  A condominium

14  which contains both commercial and residential units is a

15  mixed-use condominium subject to the requirements of s.

16  718.404.

17         (23)(21)  "Special assessment" means any assessment

18  levied against unit owners other than the assessment required

19  by a budget adopted annually.

20         (24)(22)  "Timeshare estate" means any interest in a

21  unit under which the exclusive right of use, possession, or

22  occupancy of the unit circulates among the various purchasers

23  of a timeshare plan pursuant to chapter 721 on a recurring

24  basis for a period of time.

25         (25)(23)  "Timeshare unit" means a unit in which

26  timeshare estates have been created.

27         (26)(24)  "Unit" means a part of the condominium

28  property which is subject to exclusive ownership.  A unit may

29  be in improvements, land, or land and improvements together,

30  as specified in the declaration.

31         (27)(25)  "Unit owner" or "owner of a unit" means a

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  record owner of legal title to a condominium parcel.

 2         (28)(26)  "Voting certificate" means a document which

 3  designates one of the record title owners, or the corporate,

 4  partnership, or entity representative, who is authorized to

 5  vote on behalf of a condominium unit that is owned by more

 6  than one owner or by any entity.

 7         (29)(27)  "Voting interest" means the voting rights

 8  distributed to the association members pursuant to s.

 9  718.104(4)(i).

10         Section 2.  Subsections (6) and (11), paragraph (c) of

11  subsection (12), and subsection (15) of section 718.111,

12  Florida Statutes, are amended to read:

13         718.111  The association.--

14         (6)  OPERATION OF PHASE CONDOMINIUMS CREATED PRIOR TO

15  1977.--Notwithstanding any provision of this chapter, an

16  association may operate two or more residential condominiums

17  in which the initial condominium declaration was recorded

18  prior to January 1, 1977, a phase project initially created

19  pursuant to former s. 711.64 and may continue to so operate

20  such condominiums project as though it were a single

21  condominium for purposes of financial matters, including

22  budgets, assessments, accounting, recordkeeping, and similar

23  matters, if provision is made for such consolidated operation

24  in the applicable declarations of each such condominium as

25  initially recorded or in the bylaws as initially adopted. An

26  association for such condominiums may also provide for

27  consolidated financial operation as described in this section

28  either by amending its declaration pursuant to s.

29  718.110(1)(a) or by amending its bylaws and having the

30  amendment approved by not less than two-thirds of the total

31  voting interests. Notwithstanding any provision in this

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  chapter, common expenses for residential condominiums in such

 2  a project being operated by a single association may be

 3  assessed against all unit owners in such project pursuant to

 4  the proportions or percentages established therefor in the

 5  declarations as initially recorded or in the bylaws as

 6  initially adopted, subject, however, to the limitations of ss.

 7  718.116 and 718.302.

 8         (11)  INSURANCE.--

 9         (a)  A unit-owner controlled The association shall use

10  its best efforts to obtain and maintain adequate insurance to

11  protect the association, the association property, the common

12  elements, and the condominium property required to be insured

13  by the association pursuant to paragraph (b). If the

14  association is developer-controlled, the association shall

15  exercise due diligence to obtain and maintain such insurance.

16  Failure to obtain and maintain adequate insurance during any

17  period of developer control shall constitute a breach of

18  fiduciary responsibility by the developer appointed members of

19  the board of directors of the association, unless said members

20  can show that despite such failure, they have exercised due

21  diligence. An The association may also obtain and maintain

22  liability insurance for directors and officers, insurance for

23  the benefit of association employees, and flood insurance for

24  common elements, association property, and units.  An

25  association or group of associations may self-insure against

26  claims against the association, the association property, and

27  the condominium property required to be insured by an

28  association, upon compliance with ss. 624.460-624.488.  A copy

29  of each policy of insurance in effect shall be made available

30  for inspection by unit owners at reasonable times.

31         (b)  Every hazard policy which is issued to protect a

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  condominium building shall provide that the word "building"

 2  wherever used in the policy include, but not necessarily be

 3  limited to, fixtures, installations, or additions comprising

 4  that part of the building within the unfinished interior

 5  surfaces of the perimeter walls, floors, and ceilings of the

 6  individual units initially installed, or replacements thereof

 7  of like kind or quality, in accordance with the original plans

 8  and specifications, or as they existed at the time the unit

 9  was initially conveyed if the original plans and

10  specifications are not available.  However, unless prior to

11  October 1, 1986, the association is required by the

12  declaration to provide coverage therefor, the word "building"

13  does not include unit floor coverings, wall coverings, or

14  ceiling coverings, and, as to contracts entered into after

15  July 1, 1992, does not include the following equipment if it

16  is located within a unit and the unit owner is required to

17  repair or replace such equipment: electrical fixtures,

18  appliances, air conditioner or heating equipment, water

19  heaters, or built-in cabinets.  With respect to the coverage

20  provided for by this paragraph, the unit owners shall be

21  considered additional insureds under the policy.

22         (c)  Every insurance policy issued to an individual

23  unit owner shall provide that the coverage afforded by such

24  policy is excess over the amount recoverable under any other

25  policy covering the same property without rights of

26  subrogation against the association.

27         (d)  The association shall obtain and maintain adequate

28  insurance or fidelity bonding of all persons who control or

29  disburse funds of the association. The insurance policy or

30  fidelity bond must cover the maximum funds that will be in the

31  custody of the association or its management agent at any one

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  time. As used in this paragraph, the term "persons who control

 2  or disburse funds of the association" includes, but is not

 3  limited to, those individuals authorized to sign checks and

 4  the president, secretary, and treasurer of the association.

 5  The association shall bear the cost of bonding.

 6         (12)  OFFICIAL RECORDS.--

 7         (c)  The official records of the association are open

 8  to inspection by any association member or the authorized

 9  representative of such member at all reasonable times.  The

10  right to inspect the records includes the right to make or

11  obtain copies, at the reasonable expense, if any, of the

12  association member.  The association may adopt reasonable

13  rules regarding the frequency, time, location, notice, and

14  manner of record inspections and copying.  The failure of an

15  association to provide the records within 10 working days

16  after receipt of a written request shall create a rebuttable

17  presumption that the association willfully failed to comply

18  with this paragraph.  A unit owner who is denied access to

19  official records is entitled to the actual damages or minimum

20  damages for the association's willful failure to comply with

21  this paragraph.  The minimum damages shall be $50 per calendar

22  day up to 10 days, the calculation to begin on the 11th

23  working day after receipt of the written request.  The failure

24  to permit inspection of the association records as provided

25  herein entitles any person prevailing in an enforcement action

26  to recover reasonable attorney's fees from the person in

27  control of the records who, directly or indirectly, knowingly

28  denied access to the records for inspection.  The association

29  shall maintain an adequate number of copies of the

30  declaration, articles of incorporation, bylaws, and rules, and

31  all amendments to each of the foregoing, as well as the

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  question and answer sheet provided for in s. 718.504 and

 2  year-end financial information required in this section on the

 3  condominium property to ensure their availability to unit

 4  owners and prospective purchasers, and may charge its actual

 5  costs for preparing and furnishing these documents to those

 6  requesting the same.  Notwithstanding the provisions of this

 7  paragraph, the following records shall not be accessible to

 8  unit owners:

 9         1.  A record which was prepared by an association

10  attorney or prepared at the attorney's express direction,

11  which reflects a mental impression, conclusion, litigation

12  strategy, or legal theory of the attorney or the association,

13  and which was prepared exclusively for civil or criminal

14  litigation or for adversarial administrative proceedings, or

15  which was prepared in anticipation of imminent civil or

16  criminal litigation or imminent adversarial administrative

17  proceedings until the conclusion of the litigation or

18  adversarial administrative proceedings.

19         2.  Information obtained by an association in

20  connection with the approval of the lease, sale, or other

21  transfer of a unit.

22         3.  Medical records of unit owners.

23         (15)  COMMINGLING.--All funds shall be maintained

24  separately in the association's name.  Reserve and operating

25  funds of the association shall not be commingled unless

26  combined for investment purposes. This subsection is not meant

27  to prohibit prudent investment of association funds even if

28  combined with operating or other reserve funds of the same

29  association, but such funds must be accounted for separately,

30  and the combined account balance may not, at any time, be less

31  than the amount identified as reserve funds in the combined

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  account. No manager or business entity required to be licensed

 2  or registered under s. 468.432, and no agent, employee,

 3  officer, or director of a condominium association shall

 4  commingle any association funds with his or her funds or with

 5  the funds of any other condominium association or community

 6  association as defined in s. 468.431.

 7         Section 3.  Subsection (2) of section 718.112, Florida

 8  Statutes, is amended to read:

 9         718.112  Bylaws.--

10         (2)  REQUIRED PROVISIONS.--The bylaws shall provide for

11  the following and, if they do not do so, shall be deemed to

12  include the following:

13         (a)  Administration.--

14         1.  The form of administration of the association shall

15  be described indicating the title of the officers and board of

16  administration and specifying the powers, duties, manner of

17  selection and removal, and compensation, if any, of officers

18  and boards. In the absence of such a provision, the board of

19  administration shall be composed of five members, except in

20  the case of a condominium which has five or fewer units, in

21  which case in a not-for-profit corporation the board shall

22  consist of not fewer than three members. In the absence of

23  provisions to the contrary in the bylaws, the board of

24  administration shall have a president, a secretary, and a

25  treasurer, who shall perform the duties of such officers

26  customarily performed by officers of corporations. Unless

27  prohibited in the bylaws, the board of administration may

28  appoint other officers and grant them the duties it deems

29  appropriate. Unless otherwise provided in the bylaws, the

30  officers shall serve without compensation and at the pleasure

31  of the board of administration. Unless otherwise provided in

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  the bylaws, the members of the board shall serve without

 2  compensation.

 3         2.  When a unit owner files a written inquiry by

 4  certified mail with the board of administration, the board

 5  shall respond in writing to the unit owner within 30 days of

 6  receipt of the inquiry.  The board's response shall either

 7  give a substantive response to the inquirer, notify the

 8  inquirer that a legal opinion has been requested, or notify

 9  the inquirer that advice has been requested from the division.

10  If the board requests advice from the division, the board

11  shall, within 10 days of its receipt of the advice, provide in

12  writing a substantive response to the inquirer. If a legal

13  opinion is requested, the board shall, within 60 days after

14  the receipt of the inquiry, provide in writing a substantive

15  response to the inquiry.  The failure to provide a substantive

16  response to the inquiry as provided herein precludes the board

17  from recovering attorney's fees and costs in any subsequent

18  litigation, administrative proceeding, or arbitration arising

19  out of the inquiry. The association may through its board of

20  administration adopt reasonable rules and regulations

21  regarding the frequency and manner of responding to unit owner

22  inquiries, one of which may be that the association is only

23  obligated to respond to one written inquiry per unit in any

24  given 30-day period.  In such a case, any additional inquiry

25  or inquiries must be responded to in the subsequent 30-day

26  period, or periods, as applicable.

27         (b)  Quorum; voting requirements; proxies.--

28         1.  Unless a lower number is provided in the bylaws,

29  the percentage of voting interests required to constitute a

30  quorum at a meeting of the members shall be a majority of the

31  voting interests. Unless otherwise provided in this chapter or

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  in the declaration, articles of incorporation, or bylaws, and

 2  except as provided in subparagraph (d)3., decisions shall be

 3  made by owners of a majority of the voting interests

 4  represented at a meeting at which a quorum is present.

 5         2.  Except as specifically otherwise provided herein,

 6  after January 1, 1992, unit owners may not vote by general

 7  proxy, but may vote by limited proxies substantially

 8  conforming to a limited proxy form adopted by the division.

 9  Limited proxies and general proxies may be used to establish a

10  quorum.  Limited proxies shall be used for votes taken to

11  waive or reduce reserves in accordance with subparagraph

12  (f)2.; for votes taken to waive financial statement

13  requirements as provided by s. 718.111(14); for votes taken to

14  amend the declaration pursuant to s. 718.110; for votes taken

15  to amend the articles of incorporation or bylaws pursuant to

16  this section; and for any other matter for which this chapter

17  requires or permits a vote of the unit owners.  Except as

18  provided in paragraph (d), after January 1, 1992, no proxy,

19  limited or general, shall be used in the election of board

20  members. General proxies may be used for other matters for

21  which limited proxies are not required, and may also be used

22  in voting for nonsubstantive changes to items for which a

23  limited proxy is required and given. Notwithstanding the

24  provisions of this subparagraph, unit owners may vote in

25  person at unit owner meetings.  Nothing contained herein shall

26  limit the use of general proxies or require the use of limited

27  proxies for any agenda item or election at any meeting of a

28  timeshare condominium association.

29         3.  Any proxy given shall be effective only for the

30  specific meeting for which originally given and any lawfully

31  adjourned meetings thereof.  In no event shall any proxy be

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  valid for a period longer than 90 days after the date of the

 2  first meeting for which it was given.  Every proxy is

 3  revocable at any time at the pleasure of the unit owner

 4  executing it.

 5         (c)  Board of administration meetings.--Meetings of the

 6  board of administration at which a quorum of the members is

 7  present shall be open to all unit owners.  Any unit owner may

 8  tape record or videotape meetings of the board of

 9  administration.  The right to attend such meetings includes

10  the right to speak at such meetings with reference to all

11  designated agenda items.  The division shall adopt reasonable

12  rules governing the tape recording and videotaping of the

13  meeting.  The association may adopt reasonable rules governing

14  the frequency, duration, and manner of unit owner statements.

15  Adequate notice of all meetings, which notice shall

16  specifically incorporate an identification of agenda items,

17  shall be posted conspicuously on the condominium property at

18  least 48 continuous hours preceding the meeting except in an

19  emergency.  Any item not included on the notice may be taken

20  up on an emergency basis by at least a majority plus one of

21  the members of the board. Such emergency action shall be

22  noticed and ratified at the next regular meeting of the board.

23  However, written notice of any meeting at which nonemergency

24  special assessments, or at which amendment to rules regarding

25  unit use, will be considered shall be mailed or delivered to

26  the unit owners and posted conspicuously on the condominium

27  property not less than 14 days prior to the meeting. Evidence

28  of compliance with this 14-day notice shall be made by an

29  affidavit executed by the person providing the notice and

30  filed among the official records of the association.  Upon

31  notice to the unit owners, the board shall by duly adopted

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  rule designate a specific location on the condominium property

 2  or association property upon which all notices of board

 3  meetings shall be posted. If there is no condominium property

 4  or association property upon which notices can be posted,

 5  notices of board meetings shall be mailed or delivered at

 6  least 14 days before the meeting to the owner of each unit.

 7  Notice of any meeting in which regular assessments against

 8  unit owners are to be considered for any reason shall

 9  specifically contain a statement that assessments will be

10  considered and the nature of any such assessments. Meetings of

11  a committee to take final action on behalf of the board or

12  make recommendations to the board regarding the association

13  budget are subject to the provisions of this paragraph.

14  Meetings of a committee that does not take final action on

15  behalf of the board or make recommendations to the board

16  regarding the association budget are subject to the provisions

17  of this section, unless those meetings are exempted from this

18  section by the bylaws of the association.  Notwithstanding any

19  other law, the requirement that board meetings and committee

20  meetings be open to the unit owners is inapplicable to

21  meetings between the board or a committee and the

22  association's attorney, with respect to proposed or pending

23  litigation, when the meeting is held for the purpose of

24  seeking or rendering legal advice.

25         (d)  Unit owner meetings.--

26         1.  There shall be an annual meeting of the unit

27  owners. Unless the bylaws provide otherwise, a vacancy on the

28  board of administration caused by the expiration of a

29  director's term shall be filled by electing a new board

30  member, and the election shall be by secret closed ballot;

31  however, if the number of vacancies equals or exceeds the

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  number of candidates there is only one candidate for election

 2  to fill the vacancy, no election is required. If there is no

 3  provision in the bylaws for terms of the members of the board

 4  of administration, the terms of all members of the board of

 5  administration shall expire upon the election of their

 6  successors at the annual meeting. Any unit owner desiring to

 7  be a candidate for board membership shall comply with

 8  subparagraph 3. In order to be eligible for board membership a

 9  person must meet the requirements set forth in the

10  declaration. A person who has been convicted of any felony by

11  any court of record in the United States and who has not had

12  his or her right to vote restored pursuant to law in the

13  jurisdiction of his or her residence is not eligible for board

14  membership. The validity of an action by the board is not

15  affected if it is later determined that a member of the board

16  is ineligible for board membership due to having been

17  convicted of a felony.

18         2.  The bylaws shall provide the method of calling

19  meetings of unit owners, including annual meetings. Written

20  notice, which notice must include an agenda, shall be mailed

21  or delivered to each unit owner at least 14 days prior to the

22  annual meeting and shall be posted in a conspicuous place on

23  the condominium property at least 14 continuous days preceding

24  the annual meeting. Upon notice to the unit owners, the board

25  shall by duly adopted rule designate a specific location on

26  the condominium property or association property upon which

27  all notices of unit owner meetings shall be posted; however,

28  if there is no condominium property or association property

29  upon which notices can be posted, this requirement does not

30  apply. Unless a unit owner waives in writing the right to

31  receive notice of the annual meeting by mail, the notice of

                                  16
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  the annual meeting shall be sent by mail to each unit owner.

 2  Where a unit is owned by more than one person, the association

 3  shall provide notice, for meetings and all other purposes, to

 4  that one address which the developer initially identifies for

 5  that purpose and thereafter as one or more of the owners of

 6  the unit shall so advise the association in writing, or if no

 7  address is given or the owners of the unit do not agree, to

 8  the address provided on the deed of record. An officer of the

 9  association, or the manager or other person providing notice

10  of the association meeting, shall provide an affidavit or

11  United States Postal Service certificate of mailing, to be

12  included in the official records of the association affirming

13  that the notice was mailed or hand delivered, in accordance

14  with this provision, to each unit owner at the address last

15  furnished to the association.

16         3.  After January 1, 1992, The members of the board of

17  administration shall be elected by written ballot or voting

18  machine. Proxies shall in no event be used in electing the

19  board of administration, either in general elections or

20  elections to fill vacancies caused by recall, resignation, or

21  otherwise, unless otherwise provided in this chapter. Not less

22  than 60 days before a scheduled election, the association

23  shall mail or deliver, whether by separate association mailing

24  or included in another association mailing or delivery

25  including regularly published newsletters, to each unit owner

26  entitled to a vote, a first notice of the date of the

27  election. Any unit owner or other eligible person desiring to

28  be a candidate for the board of administration must give

29  written notice to the association not less than 40 days before

30  a scheduled election.  Together with the written notice and

31  agenda as set forth in subparagraph 2., the association shall

                                  17
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  mail or deliver a second notice of the election to all unit

 2  owners entitled to vote therein, together with a ballot which

 3  shall list all candidates. Upon request of a candidate, the

 4  association shall include an information sheet, no larger than

 5  8 1/2  inches by 11 inches, which must be furnished by the

 6  candidate not less than 35 days before the election, to be

 7  included with the mailing of the ballot, with the costs of

 8  mailing or delivery and copying to be borne by the

 9  association. However, the association has no liability for the

10  contents of the information sheets prepared by the candidates.

11  In order to reduce costs, the association may print or

12  duplicate the information sheets on both sides of the paper.

13  The division shall by rule establish voting procedures

14  consistent with the provisions contained herein, including

15  rules providing for the secrecy of ballots.  Elections shall

16  be decided by a plurality of those ballots cast. There shall

17  be no quorum requirement; however, at least 20 percent of the

18  eligible voters must cast a ballot in order to have a valid

19  election of members of the board of administration. No unit

20  owner shall permit any other person to vote his or her ballot,

21  and any such ballots improperly cast shall be deemed invalid.

22  A unit owner who needs assistance in casting the ballot for

23  the reasons stated in s. 101.051 may obtain assistance in

24  casting the ballot. Any unit owner violating this provision

25  may be fined by the association in accordance with s. 718.303.

26  The regular election shall occur on the date of the annual

27  meeting. The provisions of this subparagraph shall not apply

28  to timeshare condominium associations. Notwithstanding the

29  provisions of this subparagraph, an election and balloting are

30  not required unless more candidates file notices of intent to

31  run or are nominated than vacancies exist on the board.

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1         4.  Any approval by unit owners called for by this

 2  chapter or the applicable declaration or bylaws, including,

 3  but not limited to, the approval requirement in s. 718.111(8),

 4  shall be made at a duly noticed meeting of unit owners and

 5  shall be subject to all requirements of this chapter or the

 6  applicable condominium documents relating to unit owner

 7  decisionmaking, except that unit owners may take action by

 8  written agreement, without meetings, on matters for which

 9  action by written agreement without meetings is expressly

10  allowed by the applicable bylaws or declaration or any statute

11  that which provides for such action.

12         5.  Unit owners may waive notice of specific meetings

13  if allowed by the applicable bylaws or declaration or any

14  statute.

15         6.  Unit owners shall have the right to participate in

16  meetings of unit owners with reference to all designated

17  agenda items. However, the association may adopt reasonable

18  rules governing the frequency, duration, and manner of unit

19  owner participation.

20         7.  Any unit owner may tape record or videotape a

21  meeting of the unit owners subject to reasonable rules adopted

22  by the division.

23         8.  Unless otherwise provided in the bylaws, any

24  vacancy occurring on the board before the expiration of a term

25  may be filled by the affirmative vote of the majority of the

26  remaining directors, even if the remaining directors

27  constitute less than a quorum, or by the sole remaining

28  director. In the alternative, a board may hold an election to

29  fill the vacancy, in which case the election procedures must

30  conform to the requirements of subparagraph 3. unless the

31  association has opted out of the statutory election process,

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  in which case the bylaws of the association control. Unless

 2  otherwise provided in the bylaws, a board member appointed or

 3  elected under this section shall fill the vacancy for the

 4  unexpired term of the seat being filled. Filling vacancies

 5  created by recall is governed by paragraph (j) and rules

 6  adopted by the division.

 7

 8  Notwithstanding subparagraphs (b)2. and (d)3., an association

 9  may, by the affirmative vote of a majority of the total voting

10  interests, provide for different voting and election

11  procedures in its bylaws, which vote may be by a proxy

12  specifically delineating the different voting and election

13  procedures. The different voting and election procedures may

14  provide for elections to be conducted by limited or general

15  proxy.

16         (e)  Budget meeting.--The board of administration shall

17  mail or hand deliver to each unit owner, or mail to each unit

18  owner at the address last furnished to the association, a

19  meeting notice and copies of the proposed annual budget of

20  common expenses not less than 14 days prior to the meeting of

21  the unit owners or the board of administration at which the

22  budget will be considered. Evidence of compliance with this

23  14-day notice must be made by an affidavit executed by an

24  officer of the association or the manager or other person

25  providing notice of the meeting and filed among the official

26  records of the association.  The meeting must be open to the

27  unit owners.  If an adopted budget requires assessments

28  against the unit owners in any fiscal or calendar year which

29  exceed 115 percent of the assessments for the preceding year,

30  the board, upon written application of 10 percent of the

31  voting interests to the board, shall call a special meeting of

                                  20
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  the unit owners within 30 days upon not less than 10 days'

 2  written notice to each unit owner.  At the special meeting,

 3  unit owners shall consider and enact a budget.  Unless the

 4  bylaws require a larger vote, the adoption of the budget

 5  requires a vote of not less than a majority vote of all the

 6  voting interests. The board of administration may propose a

 7  budget to the unit owners at a meeting of members or in

 8  writing, and if the budget or proposed budget is approved by

 9  the unit owners at the meeting or by a majority of all the

10  voting interests in writing, the budget is adopted. If a

11  meeting of the unit owners has been called and a quorum is not

12  attained or a substitute budget is not adopted by the unit

13  owners, the budget adopted by the board of directors goes into

14  effect as scheduled.  In determining whether assessments

15  exceed 115 percent of similar assessments in prior years, any

16  authorized provisions for reasonable reserves for repair or

17  replacement of the condominium property, anticipated expenses

18  by the condominium association which are not anticipated to be

19  incurred on a regular or annual basis, or assessments for

20  betterments to the condominium property must be excluded from

21  the computation.  However, as long as the developer is in

22  control of the board of administration, the board may not

23  impose an assessment for any year greater than 115 percent of

24  the prior fiscal or calendar year's assessment without

25  approval of a majority of all the voting interests.

26         (f)  Annual budget.--

27         1.  The proposed annual budget of common expenses shall

28  be detailed and shall show the amounts budgeted by accounts

29  and expense classifications, including, if applicable, but not

30  limited to, those expenses listed in s. 718.504(20). In

31  addition, if the association maintains limited common elements

                                  21
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  with the cost to be shared only by those entitled to use the

 2  limited common elements as provided for in s. 718.113(1), the

 3  budget or a schedule attached thereto shall show amounts

 4  budgeted therefor. If, after turnover of control of the

 5  association to the unit owners, any of the expenses listed in

 6  s. 718.504(20) are not applicable, they need not be listed.

 7         2.  In addition to annual operating expenses, the

 8  budget shall include reserve accounts for capital expenditures

 9  and deferred maintenance. These accounts shall include, but

10  are not limited to, roof replacement, building painting, and

11  pavement resurfacing, regardless of the amount of deferred

12  maintenance expense or replacement cost, and for any other

13  item for which the deferred maintenance expense or replacement

14  cost exceeds $10,000. The amount to be reserved shall be

15  computed by means of a formula which is based upon estimated

16  remaining useful life and estimated replacement cost or

17  deferred maintenance expense of each reserve item.  The

18  association may adjust replacement reserve assessments

19  annually to take into account any changes in estimates or

20  extension of the useful life of a reserve item caused by

21  deferred maintenance. This subsection does not apply to

22  budgets in which the members of an association have, by a

23  majority vote at a duly called meeting of the association, and

24  voting determined for a fiscal year to provide no reserves or

25  reserves less adequate than required by this subsection.

26  However, prior to turnover of control of an association by a

27  developer to unit owners other than a developer pursuant to s.

28  718.301, the developer may vote to waive the reserves or

29  reduce the funding of reserves for the first 2 years of the

30  operation of the association, after which time reserves may

31  only be waived or reduced only upon the vote of a majority of

                                  22
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  all nondeveloper voting interests voting in person or by

 2  limited proxy at a duly called meeting of the association. If

 3  a meeting of the unit owners has been called to determine to

 4  provide no reserves or reserves less adequate than required,

 5  and such result is not attained or a quorum is not attained,

 6  the reserves as included in the budget shall go into effect.

 7         3.  Reserve funds and any interest accruing thereon

 8  shall remain in the reserve account or accounts, and shall be

 9  used only for authorized reserve expenditures unless their use

10  for other purposes is approved in advance by a vote of the

11  majority vote of the voting interests voting in person or by

12  limited proxy at a duly called meeting of the association.

13  Prior to turnover of control of an association by a developer

14  to unit owners other than the developer pursuant to s.

15  718.301, the developer-controlled association shall not vote

16  to use reserves for purposes other than that for which they

17  were intended without the approval of a majority of all

18  nondeveloper voting interests, voting in person or by limited

19  proxy at a duly called meeting of the association.

20         (g)  Assessments.--The manner of collecting from the

21  unit owners their shares of the common expenses shall be

22  stated in the bylaws. Assessments shall be made against units

23  not less frequently than quarterly in an amount which is not

24  less than that required to provide funds in advance for

25  payment of all of the anticipated current operating expenses

26  and for all of the unpaid operating expenses previously

27  incurred.  Nothing in this paragraph shall preclude the right

28  of an association to accelerate assessments of an owner

29  delinquent in payment of common expenses. Accelerated

30  assessments shall be due and payable on the date the claim of

31  lien is filed. Such accelerated assessments shall include the

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  amounts due for the remainder of the budget year in which the

 2  claim of lien was filed.

 3         (h)  Amendment of bylaws.--

 4         1.  The method by which the bylaws may be amended

 5  consistent with the provisions of this chapter shall be

 6  stated.  If the bylaws fail to provide a method of amendment,

 7  the bylaws may be amended if the amendment is approved by the

 8  owners of not less than two-thirds of the voting interests.

 9         2.  No bylaw shall be revised or amended by reference

10  to its title or number only.  Proposals to amend existing

11  bylaws shall contain the full text of the bylaws to be

12  amended; new words shall be inserted in the text underlined,

13  and words to be deleted shall be lined through with hyphens.

14  However, if the proposed change is so extensive that this

15  procedure would hinder, rather than assist, the understanding

16  of the proposed amendment, it is not necessary to use

17  underlining and hyphens as indicators of words added or

18  deleted, but, instead, a notation must be inserted immediately

19  preceding the proposed amendment in substantially the

20  following language: "Substantial rewording of bylaw.  See

21  bylaw .... for present text."

22         3.  Nonmaterial errors or omissions in the bylaw

23  process will not invalidate an otherwise properly promulgated

24  amendment.

25         (i)  Transfer fees.--No charge shall be made by the

26  association or any body thereof in connection with the sale,

27  mortgage, lease, sublease, or other transfer of a unit unless

28  the association is required to approve such transfer and a fee

29  for such approval is provided for in the declaration,

30  articles, or bylaws. Any such fee may be preset, but in no

31  event may such fee exceed $100 per applicant other than

                                  24
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  husband/wife or parent/dependent child, which are considered

 2  one applicant.  However, if the lease or sublease is a renewal

 3  of a lease or sublease with the same lessee or sublessee, no

 4  charge shall be made.  The foregoing notwithstanding, an

 5  association may, if the authority to do so appears in the

 6  declaration or bylaws, require that a prospective lessee place

 7  a security deposit, in an amount not to exceed the equivalent

 8  of 1 month's rent, into an escrow account maintained by the

 9  association.  The security deposit shall protect against

10  damages to the common elements or association property.

11  Payment of interest, claims against the deposit, refunds, and

12  disputes under this paragraph shall be handled in the same

13  fashion as provided in part II of chapter 83.

14         (j)  Fidelity bonds.--The association shall obtain and

15  maintain adequate fidelity bonding of all persons who control

16  or disburse funds of the association.  As used in this

17  section, the term "persons who control or disburse funds of

18  the association" means those individuals authorized to sign

19  checks, and the president, secretary, and treasurer of the

20  association.  If an association's annual gross receipts do not

21  exceed $100,000, the bond shall be in the principal sum of not

22  less than $10,000 for each such person.  If an association's

23  annual gross receipts exceed $100,000, but do not exceed

24  $300,000, the bond shall be in the principal sum of $30,000

25  for each such person.  If an association's annual gross

26  receipts exceed $300,000, the bond shall be in the principal

27  sum of not less than $50,000 for each such person.  The

28  association shall bear the cost of bonding.

29         (j)(k)  Recall of board members.--Subject to the

30  provisions of s. 718.301, any member of the board of

31  administration may be recalled and removed from office with or

                                  25
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  without cause by the vote or agreement in writing by a

 2  majority of all the voting interests. A special meeting of the

 3  unit owners to recall a member or members of the board of

 4  administration may be called by 10 percent of the voting

 5  interests giving notice of the meeting as required for a

 6  meeting of unit owners, and the notice shall state the purpose

 7  of the meeting.

 8         1.  If the recall is approved by a majority of all

 9  voting interests by a vote at a meeting, the recall will be

10  effective as provided herein. The board shall duly notice and

11  hold a board meeting within 5 full business days of the

12  adjournment of the unit owner meeting to recall one or more

13  board members. At the meeting, the board shall either certify

14  the recall, in which case such member or members shall be

15  recalled effective immediately and shall turn over to the

16  board within 5 full business days any and all records and

17  property of the association in their possession, or shall

18  proceed as set forth in subparagraph 3.

19         2.  If the proposed recall is by an agreement in

20  writing by a majority of all voting interests, the agreement

21  in writing or a copy thereof shall be served on the

22  association by certified mail or by personal service in the

23  manner authorized by chapter 48 and the Florida Rules of Civil

24  Procedure. The board of administration shall duly notice and

25  hold a meeting of the board within 5 full business days after

26  receipt of the agreement in writing. At the meeting, the board

27  shall either certify the written agreement to recall a member

28  or members of the board, in which case such member or members

29  shall be recalled effective immediately and shall turn over to

30  the board within 5 full business days any and all records and

31  property of the association in their possession, or proceed as

                                  26
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  described in subparagraph 3.

 2         3.  If the board determines not to certify the written

 3  agreement to recall a member or members of the board, or does

 4  not certify the recall by a vote at a meeting, the board

 5  shall, within 5 full business days after the meeting, file

 6  with the division a petition for arbitration pursuant to the

 7  procedures in s. 718.1255. For the purposes of this section,

 8  the unit owners who voted at the meeting or who executed the

 9  agreement in writing shall constitute one party under the

10  petition for arbitration. If the arbitrator certifies the

11  recall as to any member or members of the board, the recall

12  will be effective upon mailing of the final order of

13  arbitration to the association. If the association fails to

14  comply with the order of the arbitrator, the division may take

15  action pursuant to s. 718.501. Any member or members so

16  recalled shall deliver to the board any and all records of the

17  association in their possession within 5 full business days of

18  the effective date of the recall.

19         4.  If the board fails to duly notice and hold a board

20  meeting within 5 full business days of service of an agreement

21  in writing or within 5 full business days of the adjournment

22  of the unit owner recall meeting, the recall shall be deemed

23  effective and the board members so recalled shall immediately

24  turn over to the board any and all records and property of the

25  association.

26         5.  If a vacancy occurs on the board as a result of a

27  recall and less than a majority of the board members are

28  removed, the vacancy may be filled by the affirmative vote of

29  a majority of the remaining directors, notwithstanding any

30  provision to the contrary contained in this subsection. If

31  vacancies occur on the board as a result of a recall and a

                                  27
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  majority or more of the board members are removed, the

 2  vacancies shall be filled in accordance with procedural rules

 3  to be adopted by the division, which rules need not be

 4  consistent with this subsection. The rules must provide

 5  procedures governing the conduct of the recall election as

 6  well as the operation of the association during the period

 7  after a recall but prior to the recall election.

 8         (k)(l)  Arbitration.--There shall be a provision for

 9  mandatory nonbinding arbitration as provided for in s.

10  718.1255.

11         (l)(m)  Certificate of compliance.--There shall be a

12  provision that a certificate of compliance from a licensed

13  electrical contractor or electrician may be accepted by the

14  association's board as evidence of compliance of the

15  condominium units to the applicable fire and life safety code.

16         (m)(n)  Common elements; limited power to convey.--

17         1.  With respect to condominiums created on or after

18  October 1, 1994, the bylaws shall include a provision granting

19  the association a limited power to convey a portion of the

20  common elements to a condemning authority for the purpose of

21  providing utility easements, right-of-way expansion, or other

22  public purposes, whether negotiated or as a result of eminent

23  domain proceedings.

24         2.  In any case where the bylaws are silent as to the

25  association's power to convey common elements as described in

26  subparagraph 1., the bylaws shall be deemed to include the

27  provision described in subparagraph 1.

28         Section 4.  Paragraph (b) of subsection (1) of section

29  718.115, Florida Statutes, is amended to read:

30         718.115  Common expenses and common surplus.--

31         (1)

                                  28
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1         (b)  If so provided in the declaration, the cost of a

 2  master antenna television system or duly franchised cable

 3  television service obtained pursuant to a bulk contract shall

 4  be deemed a common expense. If the declaration does not

 5  provide for the cost of a master antenna television system or

 6  duly franchised cable television service obtained under a bulk

 7  contract as a common expense, the board of administration may

 8  enter into such a contract and the cost of the service will be

 9  a common expense but allocated on a per-unit basis rather than

10  a percentage basis if the declaration provides for other than

11  an equal sharing of common expenses and any contract entered

12  into before July 1, 1998, in which the cost of the service is

13  not equally divided among all unit owners, may be changed by

14  vote of a majority of the voting interests present at a

15  regular or special meeting of the association, to allocate the

16  cost equally among all units., and if not, such cost shall be

17  considered common expense if it is designated as such in a

18  written contract between the board of administration and the

19  company providing the master television antenna system or the

20  cable television service. The contract shall be for a term of

21  not less than 2 years.

22         1.  Any contract made by the board after the effective

23  date hereof for a community antenna system or duly franchised

24  cable television service may be canceled by a majority of the

25  voting interests present at the next regular or special

26  meeting of the association.  Any member may make a motion to

27  cancel said contract, but if no motion is made or if such

28  motion fails to obtain the required majority at the next

29  regular or special meeting, whichever is sooner, following the

30  making of the contract, then such contract shall be deemed

31  ratified for the term therein expressed.

                                  29
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1         2.  Any such contract shall provide, and shall be

 2  deemed to provide if not expressly set forth, that any hearing

 3  impaired or legally blind unit owner who does not occupy the

 4  unit with a non-hearing-impaired nonhearing impaired or

 5  sighted person may discontinue the service without incurring

 6  disconnect fees, penalties, or subsequent service charges, and

 7  as to such units, the owners shall not be required to pay any

 8  common expenses charge related to such service. If less than

 9  all members of an association share the expenses of cable

10  television, the expense shall be shared equally by all

11  participating unit owners. The association may use the

12  provisions of s. 718.116 to enforce payment of the shares of

13  such costs by the unit owners receiving cable television.

14         Section 5.  Subsection (2) of section 718.503, Florida

15  Statutes, is amended to read:

16         718.503  Developer disclosure prior to sale;

17  nondeveloper unit owner disclosure prior to sale;

18  voidability.--

19         (2)  NONDEVELOPER DISCLOSURE.--

20         (a)  Each unit owner who is not a developer as defined

21  by this chapter shall comply with the provisions of this

22  subsection prior to the sale of his or her unit.  Each

23  prospective purchaser who has entered into a contract for the

24  purchase of a condominium unit is entitled, at the seller's

25  expense, to a current copy of the declaration of condominium,

26  articles of incorporation of the association, bylaws, and

27  rules of the association, as well as a copy of the question

28  and answer sheet provided for by s. 718.504 and a copy of the

29  financial information required by s. 718.111.

30         (b)  If a person licensed under part I of chapter 475

31  provides to or otherwise obtains for a prospective purchaser

                                  30
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  the documents described in this subsection, the person is not

 2  liable for any error or inaccuracy contained in the documents.

 3         (c)  Each contract entered into after July 1, 1992, for

 4  the resale of a residential unit shall contain in conspicuous

 5  type either:

 6         1.  A clause which states:  THE BUYER HEREBY

 7  ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF

 8  THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF

 9  THE ASSOCIATION, BYLAWS, RULES OF THE ASSOCIATION, A COPY OF

10  THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND THE

11  QUESTION AND ANSWER SHEET MORE THAN 3 DAYS, EXCLUDING

12  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF

13  THIS CONTRACT; or

14         2.  A clause which states:  THIS AGREEMENT IS VOIDABLE

15  BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION

16  TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND

17  LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT

18  BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE

19  DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS,

20  AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT

21  YEAR-END FINANCIAL INFORMATION AND QUESTION AND ANSWER SHEET

22  IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF THESE

23  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT.  BUYER MAY EXTEND

24  THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS,

25  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE

26  BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,

27  BYLAWS, RULES, AND QUESTION AND ANSWER SHEET IF REQUESTED IN

28  WRITING.  BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE

29  AT CLOSING.

30

31  A contract that does not conform to the requirements of this

                                  31
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  paragraph is voidable at the option of the purchaser prior to

 2  closing.

 3         Section 6.  Section 718.504, Florida Statutes, is

 4  amended to read:

 5         718.504  Prospectus or offering circular.--Every

 6  developer of a residential condominium which contains more

 7  than 20 residential units, or which is part of a group of

 8  residential condominiums which will be served by property to

 9  be used in common by unit owners of more than 20 residential

10  units, shall prepare a prospectus or offering circular and

11  file it with the Division of Florida Land Sales, Condominiums,

12  and Mobile Homes prior to entering into an enforceable

13  contract of purchase and sale of any unit or lease of a unit

14  for more than 5 years and shall furnish a copy of the

15  prospectus or offering circular to each buyer.  In addition to

16  the prospectus or offering circular, each buyer shall be

17  furnished a separate page entitled "Frequently Asked Questions

18  and Answers," which shall be in accordance with a format

19  approved by the division and a copy of the financial

20  information required by s. 718.111.  This page shall, in

21  readable language, inform prospective purchasers regarding

22  their voting rights and unit use restrictions, including

23  restrictions on the leasing of a unit; shall indicate whether

24  and in what amount the unit owners or the association is

25  obligated to pay rent or land use fees for recreational or

26  other commonly used facilities; shall contain a statement

27  identifying that amount of assessment which, pursuant to the

28  budget, would be levied upon each unit type, exclusive of any

29  special assessments, and which shall further identify the

30  basis upon which assessments are levied, whether monthly,

31  quarterly, or otherwise; shall state and identify any court

                                  32
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  cases in which the association is currently a party of record

 2  in which the association may face liability in excess of

 3  $100,000; and which shall further state whether membership in

 4  a recreational facilities association is mandatory, and if so,

 5  shall identify the fees currently charged per unit type.  The

 6  division shall by rule require such other disclosure as in its

 7  judgment will assist prospective purchasers. The prospectus or

 8  offering circular may include more than one condominium,

 9  although not all such units are being offered for sale as of

10  the date of the prospectus or offering circular.  The

11  prospectus or offering circular must contain the following

12  information:

13         (1)  The front cover or the first page must contain

14  only:

15         (a)  The name of the condominium.

16         (b)  The following statements in conspicuous type:

17         1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS

18  IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM

19  UNIT.

20         2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

21  NATURE.  A PROSPECTIVE PURCHASER SHOULD REFER TO ALL

22  REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND

23  SALES MATERIALS.

24         3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS

25  CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER

26  TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR

27  CORRECT REPRESENTATIONS.

28         (2)  Summary:  The next page must contain all

29  statements required to be in conspicuous type in the

30  prospectus or offering circular.

31         (3)  A separate index of the contents and exhibits of

                                  33
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  the prospectus.

 2         (4)  Beginning on the first page of the text (not

 3  including the summary and index), a description of the

 4  condominium, including, but not limited to, the following

 5  information:

 6         (a)  Its name and location.

 7         (b)  A description of the condominium property,

 8  including, without limitation:

 9         1.  The number of buildings, the number of units in

10  each building, the number of bathrooms and bedrooms in each

11  unit, and the total number of units, if the condominium is not

12  a phase condominium, or the maximum number of buildings that

13  may be contained within the condominium, the minimum and

14  maximum numbers of units in each building, the minimum and

15  maximum numbers of bathrooms and bedrooms that may be

16  contained in each unit, and the maximum number of units that

17  may be contained within the condominium, if the condominium is

18  a phase condominium.

19         2.  The page in the condominium documents where a copy

20  of the plot plan and survey of the condominium is located.

21         3.  The estimated latest date of completion of

22  constructing, finishing, and equipping.  In lieu of a date,

23  the description shall include a statement that the estimated

24  date of completion of the condominium is in the purchase

25  agreement and a reference to the article or paragraph

26  containing that information.

27         (c)  The maximum number of units that will use

28  facilities in common with the condominium.  If the maximum

29  number of units will vary, a description of the basis for

30  variation and the minimum amount of dollars per unit to be

31  spent for additional recreational facilities or enlargement of

                                  34
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  such facilities.  If the addition or enlargement of facilities

 2  will result in a material increase of a unit owner's

 3  maintenance expense or rental expense, if any, the maximum

 4  increase and limitations thereon shall be stated.

 5         (5)(a)  A statement in conspicuous type describing

 6  whether the condominium is created and being sold as fee

 7  simple interests or as leasehold interests. If the condominium

 8  is created or being sold on a leasehold, the location of the

 9  lease in the disclosure materials shall be stated.

10         (b)  If timeshare estates are or may be created with

11  respect to any unit in the condominium, a statement in

12  conspicuous type stating that timeshare estates are created

13  and being sold in units in the condominium.

14         (6)  A description of the recreational and other

15  commonly used facilities that will be used only by unit owners

16  of the condominium, including, but not limited to, the

17  following:

18         (a)  Each room and its intended purposes, location,

19  approximate floor area, and capacity in numbers of people.

20         (b)  Each swimming pool, as to its general location,

21  approximate size and depths, approximate deck size and

22  capacity, and whether heated.

23         (c)  Additional facilities, as to the number of each

24  facility, its approximate location, approximate size, and

25  approximate capacity.

26         (d)  A general description of the items of personal

27  property and the approximate number of each item of personal

28  property that the developer is committing to furnish for each

29  room or other facility or, in the alternative, a

30  representation as to the minimum amount of expenditure that

31  will be made to purchase the personal property for the

                                  35
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  facility.

 2         (e)  The estimated date when each room or other

 3  facility will be available for use by the unit owners.

 4         (f)1.  An identification of each room or other facility

 5  to be used by unit owners that will not be owned by the unit

 6  owners or the association;

 7         2.  A reference to the location in the disclosure

 8  materials of the lease or other agreements providing for the

 9  use of those facilities; and

10         3.  A description of the terms of the lease or other

11  agreements, including the length of the term; the rent

12  payable, directly or indirectly, by each unit owner, and the

13  total rent payable to the lessor, stated in monthly and annual

14  amounts for the entire term of the lease; and a description of

15  any option to purchase the property leased under any such

16  lease, including the time the option may be exercised, the

17  purchase price or how it is to be determined, the manner of

18  payment, and whether the option may be exercised for a unit

19  owner's share or only as to the entire leased property.

20         (g)  A statement as to whether the developer may

21  provide additional facilities not described above; their

22  general locations and types; improvements or changes that may

23  be made; the approximate dollar amount to be expended; and the

24  maximum additional common expense or cost to the individual

25  unit owners that may be charged during the first annual period

26  of operation of the modified or added facilities.

27

28  Descriptions as to locations, areas, capacities, numbers,

29  volumes, or sizes may be stated as approximations or minimums.

30         (7)  A description of the recreational and other

31  facilities that will be used in common with other

                                  36
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  condominiums, community associations, or planned developments

 2  which require the payment of the maintenance and expenses of

 3  such facilities, either directly or indirectly, by the unit

 4  owners.  The description shall include, but not be limited to,

 5  the following:

 6         (a)  Each building and facility committed to be built.

 7         (b)  Facilities not committed to be built except under

 8  certain conditions, and a statement of those conditions or

 9  contingencies.

10         (c)  As to each facility committed to be built, or

11  which will be committed to be built upon the happening of one

12  of the conditions in paragraph (b), a statement of whether it

13  will be owned by the unit owners having the use thereof or by

14  an association or other entity which will be controlled by

15  them, or others, and the location in the exhibits of the lease

16  or other document providing for use of those facilities.

17         (d)  The year in which each facility will be available

18  for use by the unit owners or, in the alternative, the maximum

19  number of unit owners in the project at the time each of all

20  of the facilities is committed to be completed.

21         (e)  A general description of the items of personal

22  property, and the approximate number of each item of personal

23  property, that the developer is committing to furnish for each

24  room or other facility or, in the alternative, a

25  representation as to the minimum amount of expenditure that

26  will be made to purchase the personal property for the

27  facility.

28         (f)  If there are leases, a description thereof,

29  including the length of the term, the rent payable, and a

30  description of any option to purchase.

31

                                  37
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  Descriptions shall include location, areas, capacities,

 2  numbers, volumes, or sizes and may be stated as approximations

 3  or minimums.

 4         (8)  Recreation lease or associated club membership:

 5         (a)  If any recreational facilities or other facilities

 6  offered by the developer and available to, or to be used by,

 7  unit owners are to be leased or have club membership

 8  associated, the following statement in conspicuous type shall

 9  be included:  THERE IS A RECREATIONAL FACILITIES LEASE

10  ASSOCIATED WITH THIS CONDOMINIUM; or, THERE IS A CLUB

11  MEMBERSHIP ASSOCIATED WITH THIS CONDOMINIUM.  There shall be a

12  reference to the location in the disclosure materials where

13  the recreation lease or club membership is described in

14  detail.

15         (b)  If it is mandatory that unit owners pay a fee,

16  rent, dues, or other charges under a recreational facilities

17  lease or club membership for the use of facilities, there

18  shall be in conspicuous type the applicable statement:

19         1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS

20  MANDATORY FOR UNIT OWNERS; or

21         2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF

22  OWNERSHIP, TO BE LESSEES UNDER THE RECREATIONAL FACILITIES

23  LEASE; or

24         3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE

25  COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,

26  REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES

27  LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or

28         4.  A similar statement of the nature of the

29  organization or the manner in which the use rights are

30  created, and that unit owners are required to pay.

31

                                  38
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  Immediately following the applicable statement, the location

 2  in the disclosure materials where the development is described

 3  in detail shall be stated.

 4         (c)  If the developer, or any other person other than

 5  the unit owners and other persons having use rights in the

 6  facilities, reserves, or is entitled to receive, any rent,

 7  fee, or other payment for the use of the facilities, then

 8  there shall be the following statement in conspicuous type:

 9  THE UNIT OWNERS OR THE ASSOCIATION(S) MUST PAY RENT OR LAND

10  USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES.

11  Immediately following this statement, the location in the

12  disclosure materials where the rent or land use fees are

13  described in detail shall be stated.

14         (d)  If, in any recreation format, whether leasehold,

15  club, or other, any person other than the association has the

16  right to a lien on the units to secure the payment of

17  assessments, rent, or other exactions, there shall appear a

18  statement in conspicuous type in substantially the following

19  form:

20         1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

21  SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE

22  RECREATION LEASE.  THE UNIT OWNER'S FAILURE TO MAKE THESE

23  PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or

24         2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

25  SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING

26  DUE FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE

27  RECREATIONAL OR COMMONLY USED FACILITIES.  THE UNIT OWNER'S

28  FAILURE TO MAKE THESE PAYMENTS MAY RESULT IN FORECLOSURE OF

29  THE LIEN.

30

31  Immediately following the applicable statement, the location

                                  39
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  in the disclosure materials where the lien or lien right is

 2  described in detail shall be stated.

 3         (9)  If the developer or any other person has the right

 4  to increase or add to the recreational facilities at any time

 5  after the establishment of the condominium whose unit owners

 6  have use rights therein, without the consent of the unit

 7  owners or associations being required, there shall appear a

 8  statement in conspicuous type in substantially the following

 9  form:  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED

10  WITHOUT CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S).

11  Immediately following this statement, the location in the

12  disclosure materials where such reserved rights are described

13  shall be stated.

14         (10)  A statement of whether the developer's plan

15  includes a program of leasing units rather than selling them,

16  or leasing units and selling them subject to such leases.  If

17  so, there shall be a description of the plan, including the

18  number and identification of the units and the provisions and

19  term of the proposed leases, and a statement in boldfaced type

20  that:  THE UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.

21         (11)  The arrangements for management of the

22  association and maintenance and operation of the condominium

23  property and of other property that will serve the unit owners

24  of the condominium property, and a description of the

25  management contract and all other contracts for these purposes

26  having a term in excess of 1 year, including the following:

27         (a)  The names of contracting parties.

28         (b)  The term of the contract.

29         (c)  The nature of the services included.

30         (d)  The compensation, stated on a monthly and annual

31  basis, and provisions for increases in the compensation.

                                  40
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1         (e)  A reference to the volumes and pages of the

 2  condominium documents and of the exhibits containing copies of

 3  such contracts.

 4

 5  Copies of all described contracts shall be attached as

 6  exhibits.  If there is a contract for the management of the

 7  condominium property, then a statement in conspicuous type in

 8  substantially the following form shall appear, identifying the

 9  proposed or existing contract manager:  THERE IS (IS TO BE) A

10  CONTRACT FOR THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH

11  (NAME OF THE CONTRACT MANAGER).  Immediately following this

12  statement, the location in the disclosure materials of the

13  contract for management of the condominium property shall be

14  stated.

15         (12)  If the developer or any other person or persons

16  other than the unit owners has the right to retain control of

17  the board of administration of the association for a period of

18  time which can exceed 1 year after the closing of the sale of

19  a majority of the units in that condominium to persons other

20  than successors or alternate developers, then a statement in

21  conspicuous type in substantially the following form shall be

22  included:  THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO

23  RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE

24  UNITS HAVE BEEN SOLD. Immediately following this statement,

25  the location in the disclosure materials where this right to

26  control is described in detail shall be stated.

27         (13)  If there are any restrictions upon the sale,

28  transfer, conveyance, or leasing of a unit, then a statement

29  in conspicuous type in substantially the following form shall

30  be included:  THE SALE, LEASE, OR TRANSFER OF UNITS IS

31  RESTRICTED OR CONTROLLED.  Immediately following this

                                  41
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  statement, the location in the disclosure materials where the

 2  restriction, limitation, or control on the sale, lease, or

 3  transfer of units is described in detail shall be stated.

 4         (14)  If the condominium is part of a phase project,

 5  the following information shall be stated:

 6         (a)  A statement in conspicuous type in substantially

 7  the following form:  THIS IS A PHASE CONDOMINIUM.  ADDITIONAL

 8  LAND AND UNITS MAY BE ADDED TO THIS CONDOMINIUM.  Immediately

 9  following this statement, the location in the disclosure

10  materials where the phasing is described shall be stated.

11         (b)  A summary of the provisions of the declaration

12  which provide for the phasing.

13         (c)  A statement as to whether or not residential

14  buildings and units which are added to the condominium may be

15  substantially different from the residential buildings and

16  units originally in the condominium.  If the added residential

17  buildings and units may be substantially different, there

18  shall be a general description of the extent to which such

19  added residential buildings and units may differ, and a

20  statement in conspicuous type in substantially the following

21  form shall be included: BUILDINGS AND UNITS WHICH ARE ADDED TO

22  THE CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER

23  BUILDINGS AND UNITS IN THE CONDOMINIUM.  Immediately following

24  this statement, the location in the disclosure materials where

25  the extent to which added residential buildings and units may

26  substantially differ is described shall be stated.

27         (d)  A statement of the maximum number of buildings

28  containing units, the maximum and minimum numbers of units in

29  each building, the maximum number of units, and the minimum

30  and maximum square footage of the units that may be contained

31  within each parcel of land which may be added to the

                                  42
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  condominium.

 2         (15)  If the condominium is created by conversion of

 3  existing improvements, the following information shall be

 4  stated:

 5         (a)  The information required by s. 718.616.

 6         (b)  A caveat that there are no express warranties

 7  unless they are stated in writing by the developer.

 8         (16)  A summary of the restrictions, if any, to be

 9  imposed on units concerning the use of any of the condominium

10  property, including statements as to whether there are

11  restrictions upon children and pets, and reference to the

12  volumes and pages of the condominium documents where such

13  restrictions are found, or if such restrictions are contained

14  elsewhere, then a copy of the documents containing the

15  restrictions shall be attached as an exhibit.

16         (17)  If there is any land that is offered by the

17  developer for use by the unit owners and that is neither owned

18  by them nor leased to them, the association, or any entity

19  controlled by unit owners and other persons having the use

20  rights to such land, a statement shall be made as to how such

21  land will serve the condominium.  If any part of such land

22  will serve the condominium, the statement shall describe the

23  land and the nature and term of service, and the declaration

24  or other instrument creating such servitude shall be included

25  as an exhibit.

26         (18)  The manner in which utility and other services,

27  including, but not limited to, sewage and waste disposal,

28  water supply, and storm drainage, will be provided and the

29  person or entity furnishing them.

30         (19)  An explanation of the manner in which the

31  apportionment of common expenses and ownership of the common

                                  43
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  elements has been determined.

 2         (20)  An estimated operating budget for the condominium

 3  and the association, and a schedule of the unit owner's

 4  expenses shall be attached as an exhibit and shall contain the

 5  following information:

 6         (a)  The estimated monthly and annual expenses of the

 7  condominium and the association that are collected from unit

 8  owners by assessments.

 9         (b)  The estimated monthly and annual expenses of each

10  unit owner for a unit, other than common expenses paid by all

11  unit owners, payable by the unit owner to persons or entities

12  other than the association, as well as to the association,

13  including fees assessed pursuant to s. 718.113(1) for

14  maintenance of limited common elements where such costs are

15  shared only by those entitled to use the limited common

16  element, and the total estimated monthly and annual expense.

17  There may be excluded from this estimate expenses which are

18  not provided for or contemplated by the condominium documents,

19  including, but not limited to, the costs of private telephone;

20  maintenance of the interior of condominium units, which is not

21  the obligation of the association; maid or janitorial services

22  privately contracted for by the unit owners; utility bills

23  billed directly to each unit owner for utility services to his

24  or her unit; insurance premiums other than those incurred for

25  policies obtained by the condominium; and similar personal

26  expenses of the unit owner. A unit owner's estimated payments

27  for assessments shall also be stated in the estimated amounts

28  for the times when they will be due.

29         (c)  The estimated items of expenses of the condominium

30  and the association, except as excluded under paragraph (b),

31  including, but not limited to, the following items, which

                                  44
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 3321

    Amendment No.    





 1  shall be stated either as an association expense collectible

 2  by assessments or as unit owners' expenses payable to persons

 3  other than the association:

 4         1.  Expenses for the association and condominium:

 5         a.  Administration of the association.

 6         b.  Management fees.

 7         c.  Maintenance.

 8         d.  Rent for recreational and other commonly used

 9  facilities.

10         e.  Taxes upon association property.

11         f.  Taxes upon leased areas.

12         g.  Insurance.

13         h.  Security provisions.

14         i.  Other expenses.

15         j.  Operating capital.

16         k.  Reserves.

17         l.  Fees payable to the division.

18         2.  Expenses for a unit owner:

19         a.  Rent for the unit, if subject to a lease.

20         b.  Rent payable by the unit owner directly to the

21  lessor or agent under any recreational lease or lease for the

22  use of commonly used facilities, which use and payment is a

23  mandatory condition of ownership and is not included in the

24  common expense or assessments for common maintenance paid by

25  the unit owners to the association.

26         (d)  The estimated amounts shall be stated for a period

27  of at least 12 months and may distinguish between the period

28  prior to the time unit owners other than the developer elect a

29  majority of the board of administration and the period after

30  that date.

31         (21)  A schedule of estimated closing expenses to be

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 1  paid by a buyer or lessee of a unit and a statement of whether

 2  title opinion or title insurance policy is available to the

 3  buyer and, if so, at whose expense.

 4         (22)  The identity of the developer and the chief

 5  operating officer or principal directing the creation and sale

 6  of the condominium and a statement of its and his or her

 7  experience in this field.

 8         (23)  Copies of the following, to the extent they are

 9  applicable, shall be included as exhibits:

10         (a)  The declaration of condominium, or the proposed

11  declaration if the declaration has not been recorded.

12         (b)  The articles of incorporation creating the

13  association.

14         (c)  The bylaws of the association.

15         (d)  The ground lease or other underlying lease of the

16  condominium.

17         (e)  The management agreement and all maintenance and

18  other contracts for management of the association and

19  operation of the condominium and facilities used by the unit

20  owners having a service term in excess of 1 year.

21         (f)  The estimated operating budget for the condominium

22  and the required schedule of unit owners' expenses.

23         (g)  A copy of the floor plan of the unit and the plot

24  plan showing the location of the residential buildings and the

25  recreation and other common areas.

26         (h)  The lease of recreational and other facilities

27  that will be used only by unit owners of the subject

28  condominium.

29         (i)  The lease of facilities used by owners and others.

30         (j)  The form of unit lease, if the offer is of a

31  leasehold.

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 1         (k)  A declaration of servitude of properties serving

 2  the condominium but not owned by unit owners or leased to them

 3  or the association.

 4         (l)  The statement of condition of the existing

 5  building or buildings, if the offering is of units in an

 6  operation being converted to condominium ownership.

 7         (m)  The statement of inspection for termite damage and

 8  treatment of the existing improvements, if the condominium is

 9  a conversion.

10         (n)  The form of agreement for sale or lease of units.

11         (o)  A copy of the agreement for escrow of payments

12  made to the developer prior to closing.

13         (p)  A copy of the documents containing any

14  restrictions on use of the property required by subsection

15  (16).

16         (24)  Any prospectus or offering circular complying,

17  prior to the effective date of this act, with the provisions

18  of former ss. 711.69 and 711.802 may continue to be used

19  without amendment or may be amended to comply with the

20  provisions of this chapter.

21         (25)  A brief narrative description of the location and

22  effect of all existing and intended easements located or to be

23  located on the condominium property other than those described

24  in the declaration.

25         (26)  If the developer is required by state or local

26  authorities to obtain acceptance or approval of any dock or

27  marina facilities intended to serve the condominium, a copy of

28  any such acceptance or approval acquired by the time of filing

29  with the division under s. 718.502(1) or a statement that such

30  acceptance or approval has not been acquired or received.

31         (27)  Evidence demonstrating that the developer has an

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                                                  SENATE AMENDMENT

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 1  ownership, leasehold, or contractual interest in the land upon

 2  which the condominium is to be developed.

 3         Section 7.  Paragraph (a) of subsection (9) of section

 4  718.116, Florida Statutes, is amended to read:

 5         718.116  Assessments; liability; lien and priority;

 6  interest; collection.--

 7         (9)(a)  No unit owner may be excused from the payment

 8  of his or her share of the common expense of a condominium

 9  unless all unit owners are likewise proportionately excused

10  from payment, except as provided in subsection (1) and in the

11  following cases:

12         1.  If the declaration so provides, a developer or

13  other person who owns condominium units offered for sale may

14  be excused from the payment of the share of the common

15  expenses and assessments related to those units for a stated

16  period of time subsequent to the recording of the declaration

17  of condominium.  The period must terminate no later than the

18  first day of the fourth calendar month following the month in

19  which the closing of the purchase and sale of the first

20  condominium unit occurs.  However, the developer must pay

21  those the portion of common expenses incurred during that

22  period which exceed the amount assessed against other unit

23  owners. Notwithstanding this limitation, if a

24  developer-controlled association has maintained all insurance

25  coverages required by s. 718.111(11)(a), the common expenses

26  incurred during the foregoing period resulting from a natural

27  disaster or an act of God, which are not covered by insurance

28  proceeds from the insurance maintained by the association, may

29  be assigned against all unit owners owning units on the date

30  of such natural disaster or act of God, and their successors

31  and assigns, including the developer with respect to units

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                                                  SENATE AMENDMENT

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 1  owned by the developer.  In the event of such an assessment,

 2  all units shall be assessed in accordance with their ownership

 3  interest in the common elements as required by s. 718.115(2).

 4         2.  A developer or other person who owns condominium

 5  units or who has an obligation to pay condominium expenses may

 6  be excused from the payment of his or her share of the common

 7  expense which would have been assessed against those units

 8  during the period of time that he or she has guaranteed to

 9  each purchaser in the purchase contract, declaration, or

10  prospectus, or by agreement between the developer and a

11  majority of the unit owners other than the developer, that the

12  assessment for common expenses of the condominium imposed upon

13  the unit owners would not increase over a stated dollar amount

14  and has obligated himself or herself to pay any amount of

15  common expenses incurred during that period and not produced

16  by the assessments at the guaranteed level receivable from

17  other unit owners. Notwithstanding this limitation, if a

18  developer-controlled association has maintained all insurance

19  coverages required by s. 718.111(11)(a), the common expenses

20  incurred during the guarantee period resulting from a natural

21  disaster or an act of God, which are not covered by insurance

22  proceeds from the insurance maintained by the association, may

23  be assessed against all unit owners owning units on the date

24  of such natural disaster or act of God, and their successors

25  and assigns, including the developer with respect to units

26  owned by the developer. In the event of such an assessment,

27  all units shall be assessed in accordance with their ownership

28  interest in the common elements as required by s. 718.115(2).

29  The guarantee may provide that after an initial stated period,

30  the developer has an option or options to extend the guarantee

31  for one or more additional stated periods.

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                                                  SENATE AMENDMENT

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 1         Section 8.  Section 719.103, Florida Statutes, is

 2  amended to read:

 3         719.103  Definitions.--As used in this chapter:

 4         (1)  "Assessment" means a share of the funds required

 5  for the payment of common expenses, which from time to time is

 6  assessed against the unit owner.

 7         (2)  "Association" means the corporation for profit or

 8  not for profit that owns the record interest in the

 9  cooperative property or a leasehold of the property of a

10  cooperative and that is responsible for the operation of the

11  cooperative.

12         (3)  "Board of administration" means the board of

13  directors or other representative body responsible for

14  administration of the association.

15         (4)  "Buyer" means a person who purchases a

16  cooperative. The term "purchaser" may be used interchangeably

17  with the term "buyer."

18         (5)(4)  "Bylaws" means the bylaws of the association

19  existing from time to time.

20         (6)(5)  "Committee" means a group of board members,

21  unit owners, or board members and unit owners appointed by the

22  board or a member of the board to make recommendations to the

23  board regarding the association budget or take action on

24  behalf of the board.

25         (7)(6)  "Common areas" means the portions of the

26  cooperative property not included in the units.

27         (8)  "Common areas" includes within its meaning the

28  following:

29         (a)  The cooperative property which is not included

30  within the units.

31         (b)  Easements through units for conduits, ducts,

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                                                  SENATE AMENDMENT

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 1  plumbing, wiring, and other facilities for the furnishing of

 2  utility services to units and the common areas.

 3         (c)  An easement of support in every portion of a unit

 4  which contributes to the support of a building.

 5         (d)  The property and installations required for the

 6  furnishing of utilities and other services to more than one

 7  unit or to the common areas.

 8         (e)  Any other part of the cooperative property

 9  designated in the cooperative documents as common areas.

10         (9)(7)  "Common expenses" means all expenses and

11  assessments properly incurred by the association for the

12  cooperative.

13         (10)(8)  "Common surplus" means the excess of all

14  receipts of the association--including, but not limited to,

15  assessments, rents, profits, and revenues on account of the

16  common areas--over the amount of common expenses.

17         (11)  "Conspicuous type" means type in capital letters

18  no smaller than the largest type on the page on which it

19  appears.

20         (12)(9)  "Cooperative" means that form of ownership of

21  real property wherein legal title is vested in a corporation

22  or other entity and the beneficial use is evidenced by an

23  ownership interest in the association and a lease or other

24  muniment of title or possession granted by the association as

25  the owner of all the cooperative property.

26         (13)(10)  "Cooperative documents" means:

27         (a)  The documents that create a cooperative,

28  including, but not limited to, articles of incorporation of

29  the association, bylaws, and the ground lease or other

30  underlying lease, if any.

31         (b)  The document evidencing a unit owner's membership

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                                                  SENATE AMENDMENT

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 1  or share in the association.

 2         (c)  The document recognizing a unit owner's title or

 3  right of possession to his or her unit.

 4         (14)(11)  "Cooperative parcel" means the shares or

 5  other evidence of ownership in a cooperative representing an

 6  undivided share in the assets of the association, together

 7  with the lease or other muniment of title or possession.

 8         (15)(12)  "Cooperative property" means the lands,

 9  leaseholds, and personal property owned by a cooperative

10  association.

11         (16)(13)  "Developer" means a person who creates a

12  cooperative or who offers cooperative parcels for sale or

13  lease in the ordinary course of business, but does not include

14  the owner or lessee of a unit who has acquired or leased the

15  unit for his or her own occupancy, nor does it include a

16  condominium association which creates a cooperative by

17  conversion of an existing residential condominium after

18  control of the association has been transferred to the unit

19  owners if, following the conversion, the unit owners will be

20  the same persons.

21         (17)  "Division" means the Division of Florida Land

22  Sales, Condominiums and Mobile Homes of the Department of

23  Business and Professional Regulation.

24         (18)  "Limited common areas" means those common areas

25  which are reserved for the use of a certain cooperative unit

26  or units to the exclusion of other units, as specified in the

27  cooperative documents.

28         (19)(14)  "Operation" or "operation of the cooperative"

29  includes the administration and management of the cooperative

30  property.

31         (20)  "Rental agreement" means any written agreement,

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                                                  SENATE AMENDMENT

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 1  or oral agreement if for less duration than 1 year, providing

 2  for use and occupancy of premises.

 3         (21)  "Residential cooperative" means a cooperative

 4  consisting of cooperative units, any of which are intended for

 5  use as a private residence. A cooperative is not a residential

 6  cooperative if the use of the units is intended as primarily

 7  commercial or industrial and not more than three units are

 8  intended to be used for private residence, domicile, or

 9  homestead, or if the units are intended to be used as housing

10  for maintenance, managerial, janitorial, or other operational

11  staff of the cooperative. If a cooperative is a residential

12  cooperative under this definition, but has units intended to

13  be commercial or industrial, then the cooperative is a

14  residential cooperative with respect to those units intended

15  for use as a private residence, domicile, or homestead, but

16  not a residential cooperative with respect to those units

17  intended for use commercially or industrially.

18         (22)(15)  "Unit" means a part of the cooperative

19  property which is subject to exclusive use and possession.  A

20  unit may be improvements, land, or land and improvements

21  together, as specified in the cooperative documents.

22         (23)(16)  "Unit owner" or "owner of a unit" means the

23  person holding a share in the cooperative association and a

24  lease or other muniment of title or possession of a unit that

25  is granted by the association as the owner of the cooperative

26  property.

27         (17)  "Residential cooperative" means a cooperative

28  consisting of cooperative units, any of which are intended for

29  use as a private residence.  A cooperative is not a

30  residential cooperative if the use of the units is intended as

31  primarily commercial or industrial and not more than three

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                                                  SENATE AMENDMENT

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 1  units are intended to be used for private residence, domicile,

 2  or homestead, or if the units are intended to be used as

 3  housing for maintenance, managerial, janitorial, or other

 4  operational staff of the cooperative.  If a cooperative is a

 5  residential cooperative under this definition, but has units

 6  intended to be commercial or industrial, then the cooperative

 7  is a residential cooperative with respect to those units

 8  intended for use as a private residence, domicile, or

 9  homestead, but not a residential cooperative with respect to

10  those units intended for use commercially or industrially.

11         (18)  "Rental agreement" means any written agreement,

12  or oral agreement if for less duration than 1 year, providing

13  for use and occupancy of premises.

14         (19)  "Conspicuous type" means type in capital letters

15  no smaller than the largest type on the page on which it

16  appears.

17         (20)  "Limited common areas" means those common areas

18  which are reserved for the use of a certain cooperative unit

19  or units to the exclusion of other units, as specified in the

20  cooperative documents.

21         (21)  "Common areas" includes within its meaning the

22  following:

23         (a)  The cooperative property which is not included

24  within the units.

25         (b)  Easements through units for conduits, ducts,

26  plumbing, wiring, and other facilities for the furnishing of

27  utility services to units and the common areas.

28         (c)  An easement of support in every portion of a unit

29  which contributes to the support of a building.

30         (d)  The property and installations required for the

31  furnishing of utilities and other services to more than one

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                                                  SENATE AMENDMENT

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 1  unit or to the common areas.

 2         (e)  Any other part of the cooperative property

 3  designated in the cooperative documents as common areas.

 4         Section 9.  Section 719.1035, Florida Statutes, is

 5  amended to read:

 6         719.1035  Creation of cooperatives.--The date when

 7  cooperative existence shall commence is upon commencement of

 8  corporate existence of the cooperative association as provided

 9  in s. 607.0203.  The cooperative documents must be recorded in

10  the county in which the cooperative is located before property

11  may be conveyed or transferred to the cooperative.  All

12  persons who have any record interest in any mortgage

13  encumbering the interest in the land being submitted to

14  cooperative ownership must either join in the execution of the

15  cooperative documents or execute, with the requirements for

16  deed, and record, a consent to the cooperative documents or an

17  agreement subordinating their mortgage interest to the

18  cooperative documents. Upon creation of a cooperative, the

19  developer or association shall file the recording information

20  with the division within 30 working days on a form prescribed

21  by the division.

22         Section 10.  Subsection (10) is added to section

23  719.104, Florida Statutes, to read:

24         719.104  Cooperatives; access to units; records;

25  financial reports; assessments; purchase of leases.--

26         (10)  NOTIFICATION OF DIVISION.--When the board of

27  directors intends to dissolve or merge the cooperative

28  association, the board shall so notify the division before

29  taking any action to dissolve or merge the cooperative

30  association.

31         Section 11.  Paragraphs (b) and (c) of subsection (1)

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                                                  SENATE AMENDMENT

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 1  of section 719.106, Florida Statutes, are amended to read:

 2         719.106  Bylaws; cooperative ownership.--

 3         (1)  MANDATORY PROVISIONS.--The bylaws or other

 4  cooperative documents shall provide for the following, and if

 5  they do not, they shall be deemed to include the following:

 6         (b)  Quorum; voting requirements; proxies.--

 7         1.  Unless otherwise provided in the bylaws, the

 8  percentage of voting interests required to constitute a quorum

 9  at a meeting of the members shall be a majority of voting

10  interests, and decisions shall be made by owners of a majority

11  of the voting interests. Unless otherwise provided in this

12  chapter, or in the articles of incorporation, bylaws, or other

13  cooperative documents, and except as provided in subparagraph

14  (d)1., decisions shall be made by owners of a majority of the

15  voting interests represented at a meeting at which a quorum is

16  present.

17         2.  Except as specifically otherwise provided herein,

18  after January 1, 1992, unit owners may not vote by general

19  proxy, but may vote by limited proxies substantially

20  conforming to a limited proxy form adopted by the division.

21  Limited proxies and general proxies may be used to establish a

22  quorum.  Limited proxies shall be used for votes taken to

23  waive or reduce reserves in accordance with subparagraph

24  (j)2., for votes taken to amend the articles of incorporation

25  or bylaws pursuant to this section, and for any other matter

26  for which this chapter requires or permits a vote of the unit

27  owners.  Except as provided in paragraph (d), after January 1,

28  1992, no proxy, limited or general, shall be used in the

29  election of board members. General proxies may be used for

30  other matters for which limited proxies are not required, and

31  may also be used in voting for nonsubstantive changes to items

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                                                  SENATE AMENDMENT

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 1  for which a limited proxy is required and given.

 2  Notwithstanding the provisions of this section, unit owners

 3  may vote in person at unit owner meetings. Nothing contained

 4  herein shall limit the use of general proxies or require the

 5  use of limited proxies or require the use of limited proxies

 6  for any agenda item or election at any meeting of a timeshare

 7  cooperative.

 8         3.  Any proxy given shall be effective only for the

 9  specific meeting for which originally given and any lawfully

10  adjourned meetings thereof.  In no event shall any proxy be

11  valid for a period longer than 90 days after the date of the

12  first meeting for which it was given.  Every proxy shall be

13  revocable at any time at the pleasure of the unit owner

14  executing it.

15         4.  A member of the board of administration or a

16  committee may submit in writing his or her agreement or

17  disagreement with any action taken at a meeting that the

18  member did not attend. This agreement or disagreement may not

19  be used as a vote for or against the action taken and may not

20  be used for the purposes of creating a quorum.

21         5.  When some or all of the board or committee members

22  meet by telephone conference, those board or committee members

23  attending by telephone conference may be counted toward

24  obtaining a quorum and may vote by telephone.  A telephone

25  speaker shall be utilized so that the conversation of those

26  board or committee members attending by telephone may be heard

27  by the board or committee members attending in person, as well

28  as by unit owners present at a meeting.

29         (c)  Board of administration meetings.--Meetings of the

30  board of administration at which a quorum of the members is

31  present shall be open to all unit owners.  Any unit owner may

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                                                  SENATE AMENDMENT

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 1  tape record or videotape meetings of the board of

 2  administration.  The right to attend such meetings includes

 3  the right to speak at such meetings with reference to all

 4  designated agenda items.  The division shall adopt reasonable

 5  rules governing the tape recording and videotaping of the

 6  meeting.  The association may adopt reasonable written rules

 7  governing the frequency, duration, and manner of unit owner

 8  statements. Adequate notice of all meetings shall be posted in

 9  a conspicuous place upon the cooperative property at least 48

10  continuous hours preceding the meeting, except in an

11  emergency.  Any item not included on the notice may be taken

12  up on an emergency basis by at least a majority plus one of

13  the members of the board. Such emergency action shall be

14  noticed and ratified at the next regular meeting of the board.

15  However, written notice of any meeting at which nonemergency

16  special assessments, or at which amendment to rules regarding

17  unit use, will be considered shall be mailed or delivered to

18  the unit owners and posted conspicuously on the cooperative

19  property not less than 14 days prior to the meeting. Evidence

20  of compliance with this 14-day notice shall be made by an

21  affidavit executed by the person providing the notice and

22  filed among the official records of the association.  Upon

23  notice to the unit owners, the board shall by duly adopted

24  rule designate a specific location on the cooperative property

25  upon which all notices of board meetings shall be posted.

26  Notice of any meeting in which regular assessments against

27  unit owners are to be considered for any reason shall

28  specifically contain a statement that assessments will be

29  considered and the nature of any such assessments. Meetings of

30  a committee to take final action on behalf of the board or to

31  make recommendations to the board regarding the association

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                                                  SENATE AMENDMENT

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 1  budget are subject to the provisions of this paragraph.

 2  Meetings of a committee that does not take final action on

 3  behalf of the board or make recommendations to the board

 4  regarding the association budget are subject to the provisions

 5  of this section, unless those meetings are exempted from this

 6  section by the bylaws of the association. Notwithstanding any

 7  other law to the contrary, the requirement that board meetings

 8  and committee meetings be open to the unit owners is

 9  inapplicable to meetings between the board or a committee and

10  the association's attorney, with respect to proposed or

11  pending litigation, when the meeting is held for the purpose

12  of seeking or rendering legal advice.

13         Section 12.  Subsection (6) is added to section

14  719.301, Florida Statutes, to read:

15         719.301  Transfer of association control.--

16         (6)  The division may adopt rules administering the

17  provisions of this section.

18         Section 13.  Subsection (7) is added to section

19  719.403, Florida Statutes, to read:

20         719.403  Phase cooperatives.--

21         (7)  Upon recording the cooperative documents or

22  amendments adding phases pursuant to this section, the

23  developer or association shall file the recording information

24  with the division within 30 working days on a form prescribed

25  by the division.

26         Section 14.  Subsection (1) of section 719.502, Florida

27  Statutes, is amended to read:

28         719.502  Filing prior to sale or lease.--

29         (1)(a)  A developer of a residential cooperative shall

30  file with the division one copy of each of the documents and

31  items required to be furnished to a buyer or lessee by ss.

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 1  719.503 and 719.504, if applicable.  Until the developer has

 2  so filed, a contract for sale or lease of a unit for more than

 3  5 years shall be voidable by the purchaser or lessee prior to

 4  the closing of his or her purchase or lease of a unit. A

 5  developer shall not close on any contract for sale or contract

 6  for a lease period of more than 5 years until the developer

 7  prepares and files with the division documents complying with

 8  the requirements of this chapter and the rules promulgated by

 9  the division and until the division notifies the developer

10  that the filing is proper. A developer shall not close on any

11  contract for sale or contract for a lease period of more than

12  5 years, as further provided in s. 719.503(1)(b), until the

13  developer prepares and delivers all documents required by s.

14  719.503(1)(b) to the prospective buyer.

15         (b)  The division may by rule develop filing, review,

16  and examination requirements and the relevant timetables

17  necessary to ensure compliance with the notice and disclosure

18  requirements of this section.

19         Section 15.  Paragraph (b) of subsection (1) of section

20  719.503, Florida Statutes, is amended to read:

21         719.503  Disclosure prior to sale.--

22         (1)  DEVELOPER DISCLOSURE.--

23         (b)  Copies of documents to be furnished to prospective

24  buyer or lessee.--Until such time as the developer has

25  furnished the documents listed below to a person who has

26  entered into a contract to purchase a unit or lease it for

27  more than 5 years, the contract may be voided by that person,

28  entitling the person to a refund of any deposit together with

29  interest thereon as provided in s. 719.202.  The contract may

30  be terminated by written notice from the proposed buyer or

31  lessee delivered to the developer within 15 days after the

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                                                  SENATE AMENDMENT

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 1  buyer or lessee receives all of the documents required by this

 2  section. The developer shall not close for 15 days following

 3  the execution of the agreement and delivery of the documents

 4  to the buyer as evidenced by a receipt for documents signed by

 5  the buyer unless the buyer is informed in the 15-day

 6  voidability period and agrees to close prior to the expiration

 7  of the 15 days. The developer shall retain in his or her

 8  records a separate signed agreement as proof of the buyer's

 9  agreement to close prior to the expiration of said voidability

10  period. Said proof shall be retained for a period of 5 years

11  after the date of the closing transaction. The documents to be

12  delivered to the prospective buyer are the prospectus or

13  disclosure statement with all exhibits, if the development is

14  subject to the provisions of s. 719.504, or, if not, then

15  copies of the following which are applicable:

16         1.  The question and answer sheet described in s.

17  719.504, and cooperative documents, or the proposed

18  cooperative documents if the documents have not been recorded,

19  which shall include the certificate of a surveyor

20  approximately representing the locations required by s.

21  719.104.

22         2.  The documents creating the association.

23         3.  The bylaws.

24         4.  The ground lease or other underlying lease of the

25  cooperative.

26         5.  The management contract, maintenance contract, and

27  other contracts for management of the association and

28  operation of the cooperative and facilities used by the unit

29  owners having a service term in excess of 1 year, and any

30  management contracts that are renewable.

31         6.  The estimated operating budget for the cooperative

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 1  and a schedule of expenses for each type of unit, including

 2  fees assessed to a shareholder who has exclusive use of

 3  limited common areas, where such costs are shared only by

 4  those entitled to use such limited common areas.

 5         7.  The lease of recreational and other facilities that

 6  will be used only by unit owners of the subject cooperative.

 7         8.  The lease of recreational and other common areas

 8  that will be used by unit owners in common with unit owners of

 9  other cooperatives.

10         9.  The form of unit lease if the offer is of a

11  leasehold.

12         10.  Any declaration of servitude of properties serving

13  the cooperative but not owned by unit owners or leased to them

14  or the association.

15         11.  If the development is to be built in phases or if

16  the association is to manage more than one cooperative, a

17  description of the plan of phase development or the

18  arrangements for the association to manage two or more

19  cooperatives.

20         12.  If the cooperative is a conversion of existing

21  improvements, the statements and disclosure required by s.

22  719.616.

23         13.  The form of agreement for sale or lease of units.

24         14.  A copy of the floor plan of the unit and the plot

25  plan showing the location of the residential buildings and the

26  recreation and other common areas.

27         15.  A copy of all covenants and restrictions which

28  will affect the use of the property and which are not

29  contained in the foregoing.

30         16.  If the developer is required by state or local

31  authorities to obtain acceptance or approval of any dock or

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 1  marina facilities intended to serve the cooperative, a copy of

 2  any such acceptance or approval acquired by the time of filing

 3  with the division pursuant to s. 719.502(1) or a statement

 4  that such acceptance or approval has not been acquired or

 5  received.

 6         17.  Evidence demonstrating that the developer has an

 7  ownership, leasehold, or contractual interest in the land upon

 8  which the cooperative is to be developed.

 9         Section 16.  Section 719.621, Florida Statutes, is

10  created to read:

11         719.621  Rulemaking authority.--The division may adopt

12  rules to administer and ensure compliance with a developer's

13  obligations with respect to cooperative conversions concerning

14  the filing and noticing of intended conversions, rental

15  agreement extensions, rights of first refusal, and disclosures

16  and post-purchase protections.

17         Section 17.  Subsection (28) of section 721.05, Florida

18  Statutes, is amended to read:

19         721.05  Definitions.--As used in this chapter, the

20  term:

21         (28)  "Timeshare estate" means a right to occupy a

22  timeshare unit, coupled with a freehold estate or an estate

23  for years with a future interest in a timeshare property or a

24  specified portion thereof.  The term shall also mean an

25  interest in a condominium unit pursuant to s. 718.103 s.

26  718.103(22).

27         Section 18.  Subsection (1) of section 721.97, Florida

28  Statutes, as created by CS for CS for SB 626 (1998) is amended

29  to read:

30         (1)  The Governor may appoint commissioners of deeds to

31  take acknowledgments, proofs of execution, or oaths in any

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 1  foreign country. The term of office is 4 years. Commissioners

 2  of deeds shall have authority to take acknowledgments, proofs

 3  of execution, and oaths in connection with the execution of

 4  any deed, mortgage, deed of trust, contract, power of

 5  attorney, or any other writing to be used or recorded in

 6  connection with a timeshare estate, timeshare license, any

 7  property subject to a timeshare plan, or the operation of a

 8  timeshare plan located within this state; provided such

 9  instrument or writing is executed outside the United States.

10  Such acknowledgments, proofs of execution, and oaths must be

11  taken or made in the manner directed by the laws of this

12  state, including but not limited to s. 117.05(4), (5)(a) and

13  (6), Florida Statutes (1997) and certified by a commissioner

14  of deeds. The certification must be endorsed on or annexed to

15  the instrument or writing aforesaid and has the same effect as

16  if made or taken by a notary public licensed in this state.

17         Section 19.  The amendment to section 721.97(1),

18  Florida Statutes, made by section 18 of this act shall take

19  effect only if CS for HB 1125 (1998) becomes law, and shall

20  operate retroactively to the effective date of CS for CS for

21  SB 626 (1998).

22         Section 20.  This act shall take effect upon becoming a

23  law.

24

25

26  ================ T I T L E   A M E N D M E N T ===============

27  And the title is amended as follows:

28         Delete everything before the enacting clause

29

30  and insert:

31                      A bill to be entitled

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 1         An act relating to condominiums and

 2         cooperatives; amending s. 718.103, F.S.;

 3         defining the terms "buyer" and "division";

 4         amending s. 718.111, F.S.; providing for the

 5         operation of certain condominiums created prior

 6         to 1977 as single associations; permitting

 7         consolidated financial operation; requiring a

 8         developer-controlled association to exercise

 9         due diligence to obtain and maintain insurance;

10         providing that failure to obtain and maintain

11         adequate insurance shall constitute a breach of

12         fiduciary responsibility by the

13         developer-appointed members of the board of

14         directors; requiring adequate insurance or

15         fidelity bonding to cover funds in the custody

16         of an association; providing for financial

17         reporting requirements; providing for the

18         commingling of reserve and operating funds;

19         amending s. 718.112, F.S.; providing

20         requirements for eligibility to be a candidate

21         for the board; providing for the validity of

22         certain actions by the board; amending

23         procedures for elections; amending procedures

24         for recall of board members; amending

25         procedures for mailing of notices; amending

26         procedures for annual budgets; deleting

27         fidelity bonding requirements; amending s.

28         718.115, F.S.; providing procedures that

29         allocate cable television services as a common

30         expense; amending ss. 718.503, 718.504, F.S.;

31         requiring disclosure of financial information;

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 1         amending s. 718.116, F.S.; providing for unit

 2         owners and the developer to be assessed in

 3         accordance with their ownership interest in

 4         losses resulting from a natural disaster or an

 5         act of God; amending s. 719.103, F.S.; defining

 6         the terms "buyer" and "division"; amending s.

 7         719.1035, F.S.; requiring filing of

 8         information; amending s. 719.104, F.S.;

 9         requiring notification; amending s. 719.106,

10         F.S.; providing requirements relating to

11         association meetings; amending s. 719.301,

12         F.S.; providing rulemaking authority; amending

13         s. 719.403, F.S.; requiring filing of

14         information; amending s. 719.502, F.S.;

15         providing conditions precedent to closing on a

16         contract for sale or specified contracts for

17         lease; providing rulemaking authority; amending

18         s. 719.503, F.S.; providing conditions for

19         closing within the 15-day voidability period;

20         creating s. 719.621, F.S.; providing rulemaking

21         authority; amending s. 721.05, F.S.; conforming

22         a cross-reference; amending s. 721.97, F.S. as

23         created by CS for CS for SB 626 (1998);

24         providing a 1997 statutory reference; providing

25         for contingent retroactive application;

26         providing an effective date.

27

28

29

30

31

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