Senate Bill sb0348e1

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  1                      A bill to be entitled

  2         An act relating to the Department of Business

  3         and Professional Regulation; amending ss.

  4         326.001, 326.002, 326.003, 326.004, 326.006,

  5         F.S.; transferring the regulation of yacht and

  6         ship brokers and salespersons from the Division

  7         of Florida Land Sales, Condominiums, and Mobile

  8         Homes to the Division of Professions; revising

  9         provisions relating to criminal history checks

10         and administrative and civil penalties;

11         requiring that all funds collected pursuant to

12         such regulation be deposited into the

13         Professional Regulation Trust Fund; revising

14         references; amending s. 399.061, F.S.; revising

15         provisions relating to the inspection of

16         elevators; amending s. 455.213, F.S.; providing

17         for the content of licensure and renewal

18         documents; providing for the electronic

19         submission of information to the department;

20         providing that all legal obligations must be

21         met before the issuance or renewal of a

22         license; amending s. 455.224, F.S.; authorizing

23         any division of the department to issue

24         citations in the enforcement of its regulatory

25         provisions in accordance with the provisions

26         established for such purposes for the

27         regulation of professions;  amending s.

28         718.1255, F.S., relating to alternative dispute

29         resolution procedures; providing for the

30         expedited handling of any allegation of an

31         irregularity in the election of any director of


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  1         the board of administration of a condominium;

  2         amending s. 702.09, F.S.; revising the

  3         definitions of the terms "mortgage" and

  4         "foreclosure proceedings"; amending s. 718.104,

  5         F.S., revising language with respect to

  6         declarations for the creation of a condominium;

  7         amending s. 718.106, F.S.; revising language

  8         with respect to appurtenances that pass with a

  9         condominium unit; amending s. 718.110, F.S.;

10         revising language with respect to amendments to

11         a declaration of condominium; amending s.

12         718.111, F.S.; revising language with respect

13         to the association; amending s. 718.112, F.S.;

14         revising language with respect to bylaws;

15         amending s. 718.113, F.S.; revising language

16         with respect to material alterations of common

17         elements or association real property operated

18         by a multicondominium association; amending s.

19         718.115, F.S.; revising language with respect

20         to common expenses; amending s. 718.405, F.S.;

21         revising language with respect to

22         multicondominiums and multicondominium

23         associations; amending s. 718.503, F.S.,

24         relating to disclosure requirements for the

25         sale of certain condominiums; removing the

26         requirement that question and answer sheets be

27         part of the closing documents; amending s.

28         718.504, F.S.; revising language with respect

29         to the prospectus or offering circular;

30         amending s. 468.452, F.S.; revising a

31         definition; amending s. 468.453, F.S.; revising


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  1         licensure requirements; providing for service

  2         of process on nonresident agents; providing for

  3         temporary licenses; amending s. 468.454, F.S.;

  4         revising contract requirements; providing for

  5         cancellation of contracts; amending s. 468.456,

  6         F.S.; providing for increased administrative

  7         fines; amending s. 468.45615, F.S.; providing

  8         additional criminal penalties for certain acts;

  9         amending s. 468.4562, F.S.; revising provisions

10         relating to civil remedies available to

11         colleges and universities for violations of

12         athlete agent regulations; amending s.

13         468.4565, F.S.; revising business record

14         requirements; repealing s. 468.4563, F.S.,

15         relating to authority to require continuing

16         education by athlete agents; repealing s.

17         468.4564, relating to license display

18         requirements; providing effective dates.

19  

20  Be It Enacted by the Legislature of the State of Florida:

21  

22         Section 1.  Section 326.001, Florida Statutes, is

23  amended to read:

24         326.001  Short title.--This chapter Sections

25  326.001-326.006 may be cited as the "Yacht and Ship Brokers'

26  Act."

27         Section 2.  Section 326.002, Florida Statutes, is

28  amended to read:

29         326.002  Definitions.--As used in this chapter ss.

30  326.001-326.006, the term:

31  


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  1         (1)  "Broker" means a person who, for or in expectation

  2  of compensation: sells, offers, or negotiates to sell; buys,

  3  offers, or negotiates to buy; solicits or obtains listings of;

  4  or negotiates the purchase, sale, or exchange of, yachts for

  5  other persons.

  6         (2)  "Department" "Division" means the Division of

  7  Florida Land Sales, Condominiums, and Mobile Homes of the

  8  Department of Business and Professional Regulation.

  9         (3)  "Salesperson" means a person who, for or in

10  expectation of compensation, is employed by a broker to

11  perform any acts of a broker.

12         (4)  "Yacht" means any vessel which is propelled by

13  sail or machinery in the water which exceeds 32 feet in

14  length, and which weighs less than 300 gross tons.

15         (5)  "Person" means an individual, partnership, firm,

16  corporation, association, or other entity.

17         Section 3.  Section 326.003, Florida Statutes, is

18  amended to read:

19         326.003  Administration.--The department division

20  shall:

21         (1)  Administer ss. 326.001-326.006 and collect fees

22  sufficient to administer this chapter ss. 326.001-326.006.

23         (2)  Adopt rules pursuant to ss. 120.536(1) and 120.54

24  necessary to administer this chapter implement ss.

25  326.001-326.006 and to classify brokers and salespersons and

26  regulate their activities.

27         (3)  Enforce the provisions of this chapter ss.

28  326.001-326.006 against any person who operates as a broker or

29  salesperson without a license.

30         Section 4.  Section 326.004, Florida Statutes, is

31  amended to read:


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  1         326.004  Licensing.--

  2         (1)  A person may not act as a broker or salesperson

  3  unless licensed under the Yacht and Ship Brokers' Act.  The

  4  department division shall adopt rules establishing a procedure

  5  for the biennial renewal of licenses.

  6         (2)  A broker may not engage in business as a broker

  7  under a fictitious name unless his or her license is issued in

  8  such name.

  9         (3)  A license is not required for:

10         (a)  A person who sells his or her own yacht.

11         (b)  An attorney at law for services rendered in his or

12  her professional capacity.

13         (c)  A receiver, trustee, or other person acting under

14  a court order.

15         (d)  A transaction involving the sale of a new yacht.

16         (e)  A transaction involving the foreclosure of a

17  security interest in a yacht.

18         (4)  Any person who purchases a used yacht for resale

19  must transfer title to such yacht into his or her name and

20  maintain the title or bill of sale in his or her possession to

21  be exempt from licensure.

22         (5)  The department division by rule shall establish

23  fees for application, initial licensing, biennial renewal, and

24  reinstatement of licenses in an amount not to exceed $500.

25  The fees must be set in an amount that is adequate to

26  proportionately fund the expenses of the department division

27  in this chapter ss. 326.001-326.006.

28         (6)  The department division may deny a license or

29  license renewal to any applicant who does not:

30         (a)  Furnish proof satisfactory to the department

31  division that he or she is of good moral character.


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  1         (b)  Certify that he or she has never been convicted of

  2  a felony.

  3         (c)  Post the bond required by the Yacht and Ship

  4  Brokers' Act.

  5         (d)  Demonstrate that he or she is a resident of this

  6  state or that he or she conducts business in this state.

  7         (e)  Furnish a full set of fingerprints taken within

  8  the 6 months immediately preceding the submission of the

  9  application.

10         (f)  Have a current license and has operated as a

11  broker or salesperson without a license.

12         (7)(a)  Before any license may be issued to a yacht or

13  ship broker, he or she must deliver to the department division

14  a good and sufficient surety bond or irrevocable letter of

15  credit, executed by the broker as principal, in the sum of

16  $25,000.

17         (b)  Surety bonds and irrevocable letters of credit

18  must be in a form to be approved by the department division

19  and must be conditioned upon the broker complying with the

20  terms of any written contract made by such broker in

21  connection with the sale or exchange of any yacht or ship and

22  not violating any of the provisions of the Yacht and Ship

23  Brokers' Act in the conduct of the business for which he or

24  she is licensed.  The bonds and letters of credit must be

25  delivered to the department division and in favor of any

26  person in a transaction who suffers any loss as a result of

27  any violation of the conditions in this chapter ss.

28  326.001-326.006.  When the department division determines that

29  a person has incurred a loss as a result of a violation of the

30  Yacht and Ship Brokers' Act, it shall notify the person in

31  writing of the existence of the bond or letter of credit. The


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  1  bonds and letters of credit must cover the license period, and

  2  a new bond or letter of credit or a proper continuation

  3  certificate must be delivered to the department division at

  4  the beginning of each license period.  However, the aggregate

  5  liability of the surety in any one year may not exceed the sum

  6  of the bond or, in the case of a letter of credit, the

  7  aggregate liability of the issuing bank may not exceed the sum

  8  of the credit.

  9         (c)  Surety bonds must be executed by a surety company

10  authorized to do business in the state as surety, and

11  irrevocable letters of credit must be issued by a bank

12  authorized to do business in the state as a bank.

13         (d)  Irrevocable letters of credit must be engaged by a

14  bank as an agreement to honor demands for payment as specified

15  in this section.

16  

17  The security for a broker must remain on deposit for a period

18  of 1 year after he or she ceases to be a broker.

19         (8)  A person may not be licensed as a broker unless he

20  or she has been a salesperson for at least 2 consecutive

21  years, and may not be licensed as a broker after October 1,

22  1990, unless he or she has been licensed as a salesperson for

23  at least 2 consecutive years.

24         (9)  An applicant for a salesperson's license or its

25  renewal must deposit with the department division a bond or

26  equivalent securities in the sum of $10,000 subject to the

27  conditions in subsection (7).

28         (10)  Upon a final judgment being rendered against a

29  yacht broker or salesperson for a violation of this chapter

30  ss. 326.001-326.006 which results in any action being

31  commenced on the bond or letter of credit, the department


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  1  division may require the filing of a new bond or letter of

  2  credit and immediately on the recovery in any action on such

  3  bond or letter of credit, the broker or salesperson involved

  4  must file a new bond or letter of credit.  His or her failure

  5  to do so within 10 days constitutes grounds for the suspension

  6  or revocation of his or her license.

  7         (11)  Any person injured by the fraud, deceit, or

  8  willful negligence of any broker or salesperson or by the

  9  failure of any broker or salesperson to comply with the Yacht

10  and Ship Brokers' Act or other law may file an action for

11  damages upon the respective bonds against the principals and

12  the surety.

13         (12)  If a surety notifies the department division that

14  it is no longer the surety for a licensee, the department

15  division shall notify the licensee of such withdrawal by

16  certified mail, return receipt requested, addressed to the

17  licensee's principal office.  Upon the termination of such

18  surety the licensee's license is automatically suspended until

19  he or she files a new bond with the department division.

20         (13)  Each broker must maintain a principal place of

21  business in this state and may establish branch offices in the

22  state.  A separate license must be maintained for each branch

23  office.  The department division shall establish by rule a fee

24  not to exceed $100 for each branch office license.

25         (14)(a)  Each license must be prominently displayed in

26  the office of the broker.

27         (b)  Each salesperson's license must remain in the

28  possession of the employing broker until canceled or until the

29  salesperson leaves such employment. Immediately upon a

30  salesperson's withdrawal from the employment of a broker, the

31  


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  1  broker must return the salesperson's license to the department

  2  division for cancellation.

  3         (15)  The department division shall provide by rule for

  4  the issuance of a temporary 90-day license to an applicant

  5  while the Florida Department of Law Enforcement and the

  6  Federal Bureau of Investigation conduct conducts a national

  7  criminal history analysis of the applicant by means of

  8  fingerprint identification.

  9         Section 5.  Section 326.006, Florida Statutes, is

10  amended to read:

11         326.006  Powers and duties of department division.--

12         (1)  Proceedings under the Yacht and Ship Brokers' Act

13  shall be conducted pursuant to chapter 120.

14         (2)  The department may division has the power to

15  enforce and ensure compliance with the provisions of this

16  chapter and rules adopted under this chapter relating to the

17  sale and ownership of yachts and ships.  In performing its

18  duties, the department division has the following powers and

19  duties:

20         (a)  The department division may make necessary public

21  or private investigations within or outside this state to

22  determine whether any person has violated this chapter or any

23  rule or order issued under this chapter, to aid in the

24  enforcement of this chapter, or to aid in the adoption of

25  rules or forms under this chapter.

26         (b)  The department division may require or permit any

27  person to file a statement in writing, under oath or

28  otherwise, as the department division determines, as to the

29  facts and circumstances concerning a matter to be

30  investigated.

31  


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  1         (c)  For the purpose of any investigation under this

  2  chapter, the secretary of the department division director or

  3  any officer or employee designated by the secretary division

  4  director may administer oaths or affirmations, subpoena

  5  witnesses and compel their attendance, take evidence, and

  6  require the production of any matter that is relevant to the

  7  investigation, including the existence, description, nature,

  8  custody, condition, and location of any books, documents, or

  9  other tangible things and the identity and location of persons

10  having knowledge of relevant facts or any other matter

11  reasonably calculated to lead to the discovery of material

12  evidence.  Upon the failure by a person to obey a subpoena or

13  to answer questions propounded by the department investigating

14  officer and upon reasonable notice to all persons affected

15  thereby, the department division may apply to the circuit

16  court for an order compelling compliance, may impose a civil

17  penalty, and may suspend or revoke the licensee's license.

18         (d)  Notwithstanding any remedies available to a yacht

19  or ship purchaser, if the department division has reasonable

20  cause to believe that a violation of any provision of this

21  chapter or rule adopted under this chapter has occurred, the

22  department division may institute enforcement proceedings in

23  its own name against any broker or salesperson or any of his

24  or her assignees or agents, or against any unlicensed person

25  or any of his or her assignees or agents, as follows:

26         1.  The department division may permit a person whose

27  conduct or actions are under investigation to waive formal

28  proceedings and enter into a consent proceeding whereby

29  orders, rules, or letters of censure or warning, whether

30  formal or informal, may be entered against the person.

31  


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  1         2.  The department division may issue an order

  2  requiring the broker or salesperson or any of his or her

  3  assignees or agents, or requiring any unlicensed person or any

  4  of his or her assignees or agents, to cease and desist from

  5  the unlawful practice and take such affirmative action as in

  6  the judgment of the department division will carry out the

  7  purposes of this chapter.

  8         3.  The department division may bring an action in

  9  circuit court on behalf of a class of yacht or ship purchasers

10  for declaratory relief, injunctive relief, or restitution.

11         4.  The department division may impose a civil penalty

12  against a broker or salesperson or any of his or her assignees

13  or agents, or against an unlicensed person or any of his or

14  her assignees or agents, for any violation of this chapter or

15  a rule adopted under this chapter.  A penalty may be imposed

16  for each day of continuing violation, but in no event may the

17  penalty for any offense exceed $10,000.  All amounts collected

18  must be deposited with the Treasurer to the credit of the

19  Professional Regulation Division of Florida Land Sales,

20  Condominiums, and Mobile Homes Trust Fund.  If a broker,

21  salesperson, or unlicensed person working for a broker, fails

22  to pay the civil penalty, the department division shall

23  thereupon issue an order suspending the broker's license until

24  such time as the civil penalty is paid or may pursue

25  enforcement of the penalty in a court of competent

26  jurisdiction. The order imposing the civil penalty or the

27  order of suspension may not become effective until 20 days

28  after the date of such order. Any action commenced by the

29  department division must be brought in the county in which the

30  department division has its executive offices or in the county

31  where the violation occurred.


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  1         (e)  The department division may suspend or revoke the

  2  license of a broker or salesperson who:

  3         1.  Makes a substantial and intentional

  4  misrepresentation, with respect to a transaction involving a

  5  yacht, upon which any person has relied.

  6         2.  Makes a false warranty, with respect to a

  7  transaction involving a yacht, of a character likely to

  8  influence, persuade, or induce any person with whom business

  9  is transacted.

10         3.  Engages in continued misrepresentation or makes

11  false warranties with respect to transactions involving a

12  yacht, whether or not relied upon by another person.

13         4.  Acts for both the buyer and seller in a transaction

14  involving a yacht without the knowledge and written consent of

15  both parties.

16         5.  Commingles the money or other property of his or

17  her principal with his or her own.

18         6.  Commits fraud or dishonest acts in the conduct of

19  any transaction involving a yacht.

20         7.  Allows an unlicensed person to use his or her name

21  to evade the provisions of the Yacht and Ship Brokers' Act.

22         8.  Violates any law governing the transactions

23  involving a yacht, including any provision relating to the

24  collection  or payment of sales or use taxes.

25         9.  Engages in acts that are evidence of a lack of good

26  moral character.

27         10.  Is convicted of a felony.

28         (f)  The department division may suspend or revoke the

29  license of a broker or salesperson who has:

30         1.  Procured a license for himself or herself or

31  another by fraud, misrepresentation, falsification, or deceit.


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  1         2.  Been found guilty of a felony or a crime of moral

  2  turpitude.

  3         3.  Had a license or registration revoked, suspended,

  4  or sanctioned in another state.

  5         (3)  All fees must be deposited in the Professional

  6  Regulation Division of Florida Land Sales, Condominiums, and

  7  Mobile Homes Trust Fund as provided by law.

  8         Section 6.  The regulation of yacht and ship brokers

  9  and salespersons is reassigned within the Department of

10  Business and Professional Regulation from the Division of

11  Florida Land Sales, Condominiums, and Mobile Homes to the

12  Division of Professions. All funds collected by the department

13  pursuant to the regulation of yacht and ship brokers and

14  salespersons and all funds in the account created within the

15  Florida Land Sales, Condominiums, and Mobile Homes Trust Fund

16  for such regulation shall be deposited in an account created

17  within the Professional Regulation Trust Fund for the same

18  purpose.

19         Section 7.  Effective upon this act becoming a law,

20  section 399.061, Florida Statutes, is amended to read:

21         399.061  Inspections; correction of deficiencies.--

22         (1)(a)  All elevators or other conveyances subject to

23  this chapter must be annually inspected by a certified

24  elevator inspector through a third-party inspection service,

25  or by a municipality or county under contract with the

26  division pursuant to s. 399.13.  If the elevator or other

27  conveyance is by a third-party inspection service certified as

28  a qualified elevator inspector or maintained pursuant to a

29  service maintenance contract continuously in force, it shall

30  be inspected at least once every two years by a certified

31  elevator inspector not employed by or otherwise associated


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  1  with the maintenance company; however, if the elevator is not

  2  an escalator or a dumbwaiter and the elevator serves only two

  3  adjacent floors and is covered by a service maintenance

  4  contract, no inspection shall be required so long as the

  5  service contract remains in effect.  A statement verifying the

  6  existence, performance, and cancellation of each service

  7  maintenance contract must be filed annually with the division

  8  as prescribed by rule. All elevators covered by a service

  9  maintenance contract shall be inspected by a

10  certificate-of-competency holder at least once every 2 years;

11  however, if the elevator is not an escalator or a dumbwaiter

12  and the elevator serves only two adjacent floors and is

13  covered by a service maintenance contract, no inspection shall

14  be required so long as the service contract remains in effect.

15         (b)  The division may inspect an elevator whenever

16  necessary to ensure its safe operation or when a third-party

17  inspection service is not available for routine inspection.

18         (2)  The division may shall employ state elevator

19  inspectors to conduct the inspections as required by

20  subsection (1) and may charge an inspection fee for each

21  inspection sufficient to cover the costs of that inspection,

22  as provided by rule. Each state elevator inspector shall hold

23  a certificate of competency issued by the division.

24         (3)  Whenever the division determines from the results

25  of any inspection that, in the interest of the public safety,

26  an elevator is in an unsafe condition, the division may seal

27  the elevator or order the discontinuance of the use of the

28  elevator until the division determines by inspection that such

29  elevator has been satisfactorily repaired or replaced so that

30  the elevator may be operated in a safe manner.

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  1         (4)  When the division determines that an elevator is

  2  in violation of this chapter, the division may issue an order

  3  to the elevator owner requiring correction of the violation.

  4         Section 8.  Effective July 1, 2001, subsection (1) of

  5  section 455.213, Florida Statutes, is amended, and subsections

  6  (11) and (12) are added to that section, to read:

  7         455.213  General licensing provisions.--

  8         (1)  Any person desiring to be licensed shall apply to

  9  the department in writing. The application for licensure shall

10  be made on a form prepared and furnished by the department and

11  include the applicant's social security number.

12  Notwithstanding any other provision of law, the department is

13  the sole authority for determining the content of any

14  documents to be submitted for initial licensure and licensure

15  renewal.  Such documents may contain information including, as

16  appropriate demographics, education, work history, personal

17  background, criminal history, finances, business information,

18  complaints, inspections, investigations, discipline, bonding,

19  signature notarization, photographs, performance periods,

20  reciprocity, local government approvals, supporting

21  documentation, periodic reporting requirements, fingerprint

22  requirements, continuing education requirements, and ongoing

23  education monitoring. The application shall be supplemented as

24  needed to reflect any material change in any circumstance or

25  condition stated in the application which takes place between

26  the initial filing of the application and the final grant or

27  denial of the license and which might affect the decision of

28  the department. In order to further the economic development

29  goals of the state, and notwithstanding any law to the

30  contrary, the department may enter into an agreement with the

31  county tax collector for the purpose of appointing the county


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  1  tax collector as the department's agent to accept applications

  2  for licenses and applications for renewals of licenses. The

  3  agreement must specify the time within which the tax collector

  4  must forward any applications and accompanying application

  5  fees to the department. In cases where a person applies or

  6  schedules directly with a national examination organization or

  7  examination vendor to take an examination required for

  8  licensure, any organization- or vendor-related fees associated

  9  with the examination may be paid directly to the organization

10  or vendor.

11         (11)  Any submission required to be in writing may be

12  made by electronic means.

13         (12)  The department may not issue or renew a license

14  to any person who is not in compliance with all provisions of

15  a final order of a board or the department until that person

16  is in compliance with all terms and conditions of the final

17  order.  The department may not issue or renew a license to any

18  person who is not in compliance with all legal obligations

19  under this chapter or the relevant practice act, including,

20  but not limited to, the obligation to pay all fees and

21  assessments that are owed and to complete all continuing

22  education requirements. This subsection applies to all

23  divisions within the department.

24         Section 9.  Section 455.224, Florida Statutes, is

25  amended to read:

26         455.224  Authority to issue citations.--

27         (1)  Notwithstanding s. 455.225, the board or the

28  department shall adopt rules to permit the issuance of

29  citations. The citation shall be issued to the subject and

30  shall contain the subject's name and address, the subject's

31  license number if applicable, a brief factual statement, the


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  1  sections of the law allegedly violated, and the penalty

  2  imposed. The citation must clearly state that the subject may

  3  choose, in lieu of accepting the citation, to follow the

  4  procedure under s. 455.225. If the subject disputes the matter

  5  in the citation, the procedures set forth in s. 455.225 must

  6  be followed. However, if the subject does not dispute the

  7  matter in the citation with the department within 30 days

  8  after the citation is served, the citation becomes a final

  9  order and constitutes discipline. The penalty shall be a fine

10  or other conditions as established by rule.

11         (2)  The board, or the department when there is no

12  board, shall adopt rules designating violations for which a

13  citation may be issued.  Such rules shall designate as

14  citation violations those violations for which there is no

15  substantial threat to the public health, safety, and welfare.

16         (3)  The department shall be entitled to recover the

17  costs of investigation, in addition to any penalty provided

18  according to board or department rule, as part of the penalty

19  levied pursuant to the citation.

20         (4)  A citation must be issued within 6 months after

21  the filing of the complaint that is the basis for the

22  citation.

23         (5)  Service of a citation may be made by personal

24  service or certified mail, restricted delivery, to the subject

25  at the subject's last known address.

26         (6)  Within its jurisdiction, the department has

27  exclusive authority to, and shall adopt rules to, designate

28  those violations for which the licensee is subject to the

29  issuance of a citation and designate the penalties for those

30  violations if any board fails to incorporate this section into

31  rules by January 1, 1992. A board created on or after January


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    CS for SB 348                                  First Engrossed



  1  1, 1992, has 6 months in which to enact rules designating

  2  violations and penalties appropriate for citation offenses.

  3  Failure to enact such rules gives the department exclusive

  4  authority to adopt rules as required for implementing this

  5  section. A board has continuous authority to amend its rules

  6  adopted pursuant to this section.

  7         (7)  Notwithstanding s. 455.017, any division within

  8  the department may establish a citation program pursuant to

  9  the provisions of this section in the enforcement of its

10  regulatory provisions. Any citation issued by a division

11  pursuant to this section must clearly state that the subject

12  may choose, in lieu of accepting the citation, to follow the

13  existing procedures established by law. If the subject does

14  not dispute the matter in the citation with the division

15  within 30 days after the citation is served, the citation

16  becomes a final order and constitutes discipline. The penalty

17  shall be a fine or other conditions as established by rule of

18  the appropriate division.

19         Section 10.  Subsection (5) is added to section

20  718.1255, Florida Statutes, to read:

21         718.1255  Alternative dispute resolution; voluntary

22  mediation; mandatory nonbinding arbitration; disputes

23  involving election irregularities; legislative findings.--

24         (1)  DEFINITIONS.--As used in this section, the term

25  "dispute" means any disagreement between two or more parties

26  that involves:

27         (a)  The authority of the board of directors, under

28  this chapter or association document to:

29         1.  Require any owner to take any action, or not to

30  take any action, involving that owner's unit or the

31  appurtenances thereto.


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  1         2.  Alter or add to a common area or element.

  2         (b)  The failure of a governing body, when required by

  3  this chapter or an association document, to:

  4         1.  Properly conduct elections.

  5         2.  Give adequate notice of meetings or other actions.

  6         3.  Properly conduct meetings.

  7         4.  Allow inspection of books and records.

  8  

  9  "Dispute" does not include any disagreement that primarily

10  involves: title to any unit or common element; the

11  interpretation or enforcement of any warranty; the levy of a

12  fee or assessment, or the collection of an assessment levied

13  against a party; the eviction or other removal of a tenant

14  from a unit; alleged breaches of fiduciary duty by one or more

15  directors; or claims for damages to a unit based upon the

16  alleged failure of the association to maintain the common

17  elements or condominium property.

18         (2)  VOLUNTARY MEDIATION.--Voluntary mediation through

19  Citizen Dispute Settlement Centers as provided for in s.

20  44.201 is encouraged.

21         (3)  LEGISLATIVE FINDINGS.--

22         (a)  The Legislature finds that unit owners are

23  frequently at a disadvantage when litigating against an

24  association. Specifically, a condominium association, with its

25  statutory assessment authority, is often more able to bear the

26  costs and expenses of litigation than the unit owner who must

27  rely on his or her own financial resources to satisfy the

28  costs of litigation against the association.

29         (b)  The Legislature finds that the courts are becoming

30  overcrowded with condominium and other disputes, and further

31  finds that alternative dispute resolution has been making


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    CS for SB 348                                  First Engrossed



  1  progress in reducing court dockets and trials and in offering

  2  a more efficient, cost-effective option to court litigation.

  3  However, the Legislature also finds that alternative dispute

  4  resolution should not be used as a mechanism to encourage the

  5  filing of frivolous or nuisance suits.

  6         (c)  There exists a need to develop a flexible means of

  7  alternative dispute resolution that directs disputes to the

  8  most efficient means of resolution.

  9         (d)  The high cost and significant delay of circuit

10  court litigation faced by unit owners in the state can be

11  alleviated by requiring nonbinding arbitration and mediation

12  in appropriate cases, thereby reducing delay and attorney's

13  fees while preserving the right of either party to have its

14  case heard by a jury, if applicable, in a court of law.

15         (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF

16  DISPUTES.--The Division of Florida Land Sales, Condominiums,

17  and Mobile Homes of the Department of Business and

18  Professional Regulation shall employ full-time attorneys to

19  act as arbitrators to conduct the arbitration hearings

20  provided by this chapter. The division may also certify

21  attorneys who are not employed by the division to act as

22  arbitrators to conduct the arbitration hearings provided by

23  this section. No person may be employed by the department as a

24  full-time arbitrator unless he or she is a member in good

25  standing of The Florida Bar. The department shall promulgate

26  rules of procedure to govern such arbitration hearings

27  including mediation incident thereto.  The decision of an

28  arbitrator shall be final; however, such a decision shall not

29  be deemed final agency action. Nothing in this provision shall

30  be construed to foreclose parties from proceeding in a trial

31  de novo unless the parties have agreed that the arbitration is


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  1  binding. If such judicial proceedings are initiated, the final

  2  decision of the arbitrator shall be admissible in evidence in

  3  the trial de novo.

  4         (a)  Prior to the institution of court litigation, a

  5  party to a dispute shall petition the division for nonbinding

  6  arbitration.  The petition must be accompanied by a filing fee

  7  in the amount of $50.  Filing fees collected under this

  8  section must be used to defray the expenses of the alternative

  9  dispute resolution program.

10         (b)  The petition must recite, and have attached

11  thereto, supporting proof that the petitioner gave the

12  respondents:

13         1.  Advance written notice of the specific nature of

14  the dispute;

15         2.  A demand for relief, and a reasonable opportunity

16  to comply or to provide the relief; and

17         3.  Notice of the intention to file an arbitration

18  petition or other legal action in the absence of a resolution

19  of the dispute.

20  

21  Failure to include the allegations or proof of compliance with

22  these prerequisites requires dismissal of the petition without

23  prejudice.

24         (c)  Upon receipt, the petition shall be promptly

25  reviewed by the division to determine the existence of a

26  dispute and compliance with the requirements of paragraphs (a)

27  and (b).  If emergency relief is required and is not available

28  through arbitration, a motion to stay the arbitration may be

29  filed.  The motion must be accompanied by a verified petition

30  alleging facts that, if proven, would support entry of a

31  temporary injunction, and if an appropriate motion and


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  1  supporting papers are filed, the division may abate the

  2  arbitration pending a court hearing and disposition of a

  3  motion for temporary injunction.

  4         (d)  Upon determination by the division that a dispute

  5  exists and that the petition substantially meets the

  6  requirements of paragraphs (a) and (b) and any other

  7  applicable rules, a copy of the petition shall forthwith be

  8  served by the division upon all respondents.

  9         (e)  Either before or after the filing of the

10  respondents' answer to the petition, any party may request

11  that the arbitrator refer the case to mediation under this

12  section and any rules adopted by the division.  Upon receipt

13  of a request for mediation, the division shall promptly

14  contact the parties to determine if there is agreement that

15  mediation would be appropriate.  If all parties agree, the

16  dispute must be referred to mediation. Notwithstanding a lack

17  of an agreement by all parties, the arbitrator may refer a

18  dispute to mediation at any time.

19         (f)  Upon referral of a case to mediation, the parties

20  must select a mutually acceptable mediator.  To assist in the

21  selection, the arbitrator shall provide the parties with a

22  list of both volunteer and paid mediators that have been

23  certified by the division under s. 718.501.  If the parties

24  are unable to agree on a mediator within the time allowed by

25  the arbitrator, the arbitrator shall appoint a mediator from

26  the list of certified mediators.  If a case is referred to

27  mediation, the parties shall attend a mediation conference, as

28  scheduled by the parties and the mediator.  If any party fails

29  to attend a duly noticed mediation conference, without the

30  permission or approval of the arbitrator or mediator, the

31  arbitrator must impose sanctions against the party, including


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    CS for SB 348                                  First Engrossed



  1  the striking of any pleadings filed, the entry of an order of

  2  dismissal or default if appropriate, and the award of costs

  3  and attorneys' fees incurred by the other parties. Unless

  4  otherwise agreed to by the parties or as provided by order of

  5  the arbitrator, a party is deemed to have appeared at a

  6  mediation conference by the physical presence of the party or

  7  its representative having full authority to settle without

  8  further consultation, provided that an association may comply

  9  by having one or more representatives present with full

10  authority to negotiate a settlement and recommend that the

11  board of administration ratify and approve such a settlement

12  within 5 days from the date of the mediation conference. The

13  parties shall share equally the expense of mediation, unless

14  they agree otherwise.

15         (g)  The purpose of mediation as provided for by this

16  section is to present the parties with an opportunity to

17  resolve the underlying dispute in good faith, and with a

18  minimum expenditure of time and resources.

19         (h)  Mediation proceedings must generally be conducted

20  in accordance with the Florida Rules of Civil Procedure, and

21  these proceedings are privileged and confidential to the same

22  extent as court-ordered mediation. Persons who are not parties

23  to the dispute are not allowed to attend the mediation

24  conference without the consent of all parties, with the

25  exception of counsel for the parties and corporate

26  representatives designated to appear for a party.  If the

27  mediator declares an impasse after a mediation conference has

28  been held, the arbitration proceeding terminates, unless all

29  parties agree in writing to continue the arbitration

30  proceeding, in which case the arbitrator's decision shall be

31  either binding or nonbinding, as agreed upon by the parties;


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    CS for SB 348                                  First Engrossed



  1  in the arbitration proceeding, the arbitrator shall not

  2  consider any evidence relating to the unsuccessful mediation

  3  except in a proceeding to impose sanctions for failure to

  4  appear at the mediation conference. If the parties do not

  5  agree to continue arbitration, the arbitrator shall enter an

  6  order of dismissal, and either party may institute a suit in a

  7  court of competent jurisdiction.  The parties may seek to

  8  recover any costs and attorneys' fees incurred in connection

  9  with arbitration and mediation proceedings under this section

10  as part of the costs and fees that may be recovered by the

11  prevailing party in any subsequent litigation.

12         (i)  Arbitration shall be conducted according to rules

13  promulgated by the division. The filing of a petition for

14  arbitration shall toll the applicable statute of limitations.

15         (j)  At the request of any party to the arbitration,

16  such arbitrator shall issue subpoenas for the attendance of

17  witnesses and the production of books, records, documents, and

18  other evidence and any party on whose behalf a subpoena is

19  issued may apply to the court for orders compelling such

20  attendance and production. Subpoenas shall be served and shall

21  be enforceable in the manner provided by the Florida Rules of

22  Civil Procedure. Discovery may, in the discretion of the

23  arbitrator, be permitted in the manner provided by the Florida

24  Rules of Civil Procedure. Rules adopted by the division may

25  authorize any reasonable sanctions except contempt for a

26  violation of the arbitration procedural rules of the division

27  or for the failure of a party to comply with a reasonable

28  nonfinal order issued by an arbitrator which is not under

29  judicial review.

30         (k)  The arbitration decision shall be presented to the

31  parties in writing. An arbitration decision is final in those


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    CS for SB 348                                  First Engrossed



  1  disputes in which the parties have agreed to be bound.  An

  2  arbitration decision is also final if a complaint for a trial

  3  de novo is not filed in a court of competent jurisdiction in

  4  which the condominium is located within 30 days. The right to

  5  file for a trial de novo entitles the parties to file a

  6  complaint in the appropriate trial court for a judicial

  7  resolution of the dispute. The prevailing party in an

  8  arbitration proceeding shall be awarded the costs of the

  9  arbitration and reasonable attorney's fees in an amount

10  determined by the arbitrator. Such an award shall include the

11  costs and reasonable attorney's fees incurred in the

12  arbitration proceeding as well as the costs and reasonable

13  attorney's fees incurred in preparing for and attending any

14  scheduled mediation.

15         (l)  The party who files a complaint for a trial de

16  novo shall be assessed the other party's arbitration costs,

17  court costs, and other reasonable costs, including attorney's

18  fees, investigation expenses, and expenses for expert or other

19  testimony or evidence incurred after the arbitration hearing

20  if the judgment upon the trial de novo is not more favorable

21  than the arbitration decision. If the judgment is more

22  favorable, the party who filed a complaint for trial de novo

23  shall be awarded reasonable court costs and attorney's fees.

24         (m)  Any party to an arbitration proceeding may enforce

25  an arbitration award by filing a petition in a court of

26  competent jurisdiction in which the condominium is located. A

27  petition may not be granted unless the time for appeal by the

28  filing of a complaint for trial de novo has expired. If a

29  complaint for a trial de novo has been filed, a petition may

30  not be granted with respect to an arbitration award that has

31  been stayed. If the petition for enforcement is granted, the


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    CS for SB 348                                  First Engrossed



  1  petitioner shall recover reasonable attorney's fees and costs

  2  incurred in enforcing the arbitration award.  A mediation

  3  settlement may also be enforced through the county or circuit

  4  court, as applicable, and any costs and fees incurred in the

  5  enforcement of a settlement agreement reached at mediation

  6  must be awarded to the prevailing party in any enforcement

  7  action.

  8         (5)  DISPUTES INVOLVING ELECTION IRREGULARITIES.--Every

  9  arbitration petition received by the division and required to

10  be filed under this section challenging the legality of the

11  election of any director of the board of administration shall

12  be handled on an expedited basis in the manner provided by

13  division rules for recall arbitration disputes.

14         Section 11.  Section 702.09, Florida Statutes, is

15  amended to read:

16         702.09  Definitions.--For the purposes of ss. 702.07

17  and 702.08 the words "decree of foreclosure" shall include a

18  judgment or order rendered or passed in the foreclosure

19  proceedings in which the decree of foreclosure shall be

20  rescinded, vacated, and set aside; the word "mortgage" shall

21  mean any written instrument securing the payment of money or

22  advances and shall include liens to secure payment of

23  assessments arising under chapters 718, 719, and 720; the word

24  "debt" shall include promissory notes, bonds, and all other

25  written obligations given for the payment of money; the words

26  "foreclosure proceedings" shall embrace every action in the

27  circuit or county courts of this state wherein it is sought to

28  foreclose a mortgage and sell the property covered by the

29  same; and the word "property" shall mean and include both real

30  and personal property.

31  


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  1         Section 12.  Paragraph (h) of subsection (4) and

  2  subsection (5) of section 718.104, Florida Statutes, are

  3  amended to read:

  4         718.104  Creation of condominiums; contents of

  5  declaration.--Every condominium created in this state shall be

  6  created pursuant to this chapter.

  7         (4)  The declaration must contain or provide for the

  8  following matters:

  9         (h)  If a developer reserves the right, in a

10  declaration recorded on or after July 1, 2000, to create a

11  multicondominium, the declaration must state, or provide a

12  specific formula for determining, the fractional or percentage

13  shares of liability for the common expenses of the association

14  and of ownership of the common surplus of the association to

15  be allocated to the units in each condominium to be operated

16  by the association.  If a the declaration recorded on or after

17  July 1, 2000, for a condominium operated by a multicondominium

18  association, as originally recorded, fails to so provide, the

19  share of liability for the common expenses of the association

20  and of ownership of the common surplus of the association

21  allocated to each unit in each condominium operated by the

22  association shall be a fraction of the whole, the numerator of

23  which is the number "one" and the denominator of which is the

24  total number of units in all condominiums operated by the

25  association.

26         (5)  The declaration as originally recorded, or as

27  amended pursuant to the procedures provided therein, may

28  include covenants and restrictions concerning the use,

29  occupancy, and transfer of the units permitted by law with

30  reference to real property. With the exception of amendments

31  that materially modify unit appurtenances as provided in s.


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  1  718.110(4), amendments may be applied to owners of units

  2  existing as of the effective date of the amendment. This

  3  section is intended to clarify existing law and applies to

  4  associations existing on the effective date of this act.

  5  However, the rule against perpetuities shall not defeat a

  6  right given any person or entity by the declaration for the

  7  purpose of allowing unit owners to retain reasonable control

  8  over the use, occupancy, and transfer of units.

  9         Section 13.  Paragraph (b) of subsection (2) of section

10  718.106, Florida Statutes, is amended to read:

11         718.106  Condominium parcels; appurtenances; possession

12  and enjoyment.--

13         (2)  There shall pass with a unit, as appurtenances

14  thereto:

15         (b)  The exclusive right to use such portion of the

16  common elements as may be provided by the declaration,

17  including the right to transfer such right to other units or

18  unit owners to the extent authorized by the declaration as

19  originally recorded, or amendments to the declaration adopted

20  pursuant to the provisions contained therein under s.

21  718.110(2). Amendments to declarations of condominium

22  providing for the transfer of use rights with respect to

23  limited common elements are not amendments which materially

24  modify unit appurtenances as described in s. 718.110(4).

25  However, in order to be effective, the transfer of use rights

26  with respect to limited common elements must be effectuated in

27  conformity with the procedures set forth in the declaration as

28  originally recorded or as amended. Further, such transfers

29  must be evidenced by a written instrument which must be

30  executed with the formalities of a deed and recorded in the

31  land records of the county in which the condominium is located


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  1  in order to be effective. Such instrument of transfer must

  2  also specify the legal description of the unit which is

  3  transferring use rights, as well as the legal description of

  4  the unit obtaining the transfer of such rights. This section

  5  is intended to clarify existing law and applies to

  6  associations existing on the effective date of this act.

  7         Section 14.  Subsection (4) of section 718.110, Florida

  8  Statutes, is amended to read:

  9         718.110  Amendment of declaration; correction of error

10  or omission in declaration by circuit court.--

11         (4)  Unless otherwise provided in the declaration as

12  originally recorded, no amendment may change the configuration

13  or size of any unit in any material fashion, materially alter

14  or modify the appurtenances to the unit, or change the

15  proportion or percentage by which the unit owner shares the

16  common expenses of the condominium and owns the common surplus

17  of the condominium unless the record owner of the unit and all

18  record owners of liens on the unit join in the execution of

19  the amendment and unless all the record owners of all other

20  units in the same condominium approve the amendment.  The

21  acquisition of property by the association, and material

22  alterations or substantial additions to such property or the

23  common elements by the association in accordance with s.

24  718.111(7) or s. 718.113, amendments providing for the

25  transfer of use rights in limited common elements pursuant to

26  s. 718.106(2)(b), and amendments restricting or modifying the

27  right to lease condominium units shall not be deemed to

28  constitute a material alteration or modification of the

29  appurtenances to the units. With the exception of amendments

30  that materially modify unit appurtenances as provided in this

31  section, amendments may be applied to owners of units existing


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    CS for SB 348                                  First Engrossed



  1  as of the effective date of the amendment. This section is

  2  intended to clarify existing law and applies to associations

  3  existing on the effective date of this act. A declaration

  4  recorded after April 1, 1992, may not require the approval of

  5  less than a majority of total voting interests of the

  6  condominium for amendments under this subsection, unless

  7  otherwise required by a governmental entity.

  8         Section 15.  Subsection (4), paragraph (a) of

  9  subsection (7), and subsection (13) of section 718.111,

10  Florida Statutes, are amended to read:

11         718.111  The association.--

12         (4)  ASSESSMENTS; MANAGEMENT OF COMMON ELEMENTS.--The

13  association has the power to make and collect assessments and

14  to lease, maintain, repair, and replace the common elements or

15  association property; however, the association may not charge

16  a use fee against a unit owner for the use of common elements

17  or association property unless otherwise provided for in the

18  declaration of condominium or by a majority vote of the

19  association or unless the charges relate to expenses incurred

20  by an owner having exclusive use of the common elements or

21  association property.

22         (7)  TITLE TO PROPERTY.--

23         (a)  The association has the power to acquire title to

24  property or otherwise hold, convey, lease, and mortgage

25  association property for the use and benefit of its members.

26  The power to acquire personal property shall be exercised by

27  the board of administration. Except as otherwise permitted in

28  subsections (8) and (9) and in s. 718.114, no association may

29  acquire, convey, lease, or mortgage association real property

30  except in the manner provided in the declaration, and if the

31  


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    CS for SB 348                                  First Engrossed



  1  declaration does not specify the procedure, then approval of

  2  75 percent of the total voting interests shall be required.

  3         (13)  FINANCIAL REPORTING.--Within 90 days after the

  4  end of the fiscal year, or annually on a date provided in the

  5  bylaws, the association shall prepare and complete, or

  6  contract for the preparation and completion of cause to be

  7  prepared and completed by a third party, a financial report

  8  for the preceding fiscal year.  Within 21 days after the final

  9  financial report is completed by the association or received

10  by the association from the third party, but in no event later

11  than 120 days after the end of the fiscal year, or such other

12  date as is provided in the bylaws, the association shall mail

13  to each unit owner at the address last furnished to the

14  association by the unit owner, or hand deliver to each unit

15  owner, a copy of the financial report or a notice that a copy

16  of the financial report will be mailed or hand delivered to

17  the unit owner, without charge, upon receipt of a written

18  request from the unit owner.  The division shall adopt rules

19  setting forth uniform accounting principles and standards to

20  be used by all associations and shall adopt rules addressing

21  financial reporting requirements for multicondominium

22  associations.  In adopting such rules, the division shall

23  consider the number of members and annual revenues of an

24  association.  Financial reports shall be prepared as follows:

25         (a)  An association that meets the criteria of this

26  paragraph shall prepare or cause to be prepared a complete set

27  of financial statements in accordance with generally accepted

28  accounting principles.  The financial statements shall be

29  based upon the association's total annual revenues, as

30  follows:

31  


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    CS for SB 348                                  First Engrossed



  1         1.  An association with total annual revenues of

  2  $100,000 or more, but less than $200,000, shall prepare

  3  compiled financial statements.

  4         2.  An association with total annual revenues of at

  5  least $200,000, but less than $400,000, shall prepare reviewed

  6  financial statements.

  7         3.  An association with total annual revenues of

  8  $400,000 or more shall prepare audited financial statements.

  9         (b)1.  An association with total annual revenues of

10  less than $100,000 shall prepare a report of cash receipts and

11  expenditures.

12         2.  An association which operates less than 50 units,

13  regardless of the association's annual revenues, shall prepare

14  a report of cash receipts and expenditures in lieu of

15  financial statements required by paragraph (a).

16         3.  A report of cash receipts and disbursements must

17  disclose the amount of receipts by accounts and receipt

18  classifications and the amount of expenses by accounts and

19  expense classifications, including, but not limited to, the

20  following, as applicable: costs for security, professional and

21  management fees and expenses, taxes, costs for recreation

22  facilities, expenses for refuse collection and utility

23  services, expenses for lawn care, costs for building

24  maintenance and repair, insurance costs, administration and

25  salary expenses, and reserves accumulated and expended for

26  capital expenditures, deferred maintenance, and any other

27  category for which the association maintains reserves.

28         (c)  An association may prepare or cause to be

29  prepared, without a meeting of or approval by the unit owners:

30  

31  


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  1         1.  Compiled, reviewed, or audited financial

  2  statements, if the association is required to prepare a report

  3  of cash receipts and expenditures;

  4         2.  Reviewed or audited financial statements, if the

  5  association is required to prepare compiled financial

  6  statements; or

  7         3.  Audited financial statements if the association is

  8  required to prepare reviewed financial statements.

  9         (d)  If approved by a majority of the voting interests

10  present at a properly called meeting of the association, an

11  association may prepare or cause to be prepared:

12         1.  A report of cash receipts and expenditures in lieu

13  of a compiled, reviewed, or audited financial statement;

14         2.  A report of cash receipts and expenditures or a

15  compiled financial statement in lieu of a reviewed or audited

16  financial statement; or

17         3.  A report of cash receipts and expenditures, a

18  compiled financial statement, or a reviewed financial

19  statement in lieu of an audited financial statement.

20  

21  Such meeting and approval must occur prior to the end of the

22  fiscal year and is effective only for the fiscal year in which

23  the vote is taken. With respect to an association to which the

24  developer has not turned over control of the association, all

25  unit owners, including the developer, may vote on issues

26  related to the preparation of financial reports for the first

27  2 fiscal years of the association's operation, beginning with

28  the fiscal year in which the declaration is recorded.

29  Thereafter, all unit owners except the developer may vote on

30  such issues until control is turned over to the association by

31  the developer.


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  1         Section 16.  Subsection (3) of section 718.112, Florida

  2  Statutes, is amended to read:

  3         718.112  Bylaws.--

  4         (3)  OPTIONAL PROVISIONS.--The bylaws as originally

  5  recorded, or as amended pursuant to the procedure provided

  6  therein, may provide for the following:

  7         (a)  A method of adopting and amending administrative

  8  rules and regulations governing the details of the operation

  9  and use of the common elements.

10         (b)  Restrictions on and requirements for the use,

11  maintenance, and appearance of the units and the use of the

12  common elements.

13         (c)  Other provisions which are not inconsistent with

14  this chapter or with the declaration, as may be desired. This

15  subsection is intended to clarify existing law and applies to

16  associations existing on the effective date of this act.

17         Section 17.  Subsection (2) of section 718.113, Florida

18  Statutes, is amended to read:

19         718.113  Maintenance; limitation upon improvement;

20  display of flag; hurricane shutters.--

21         (2)(a)  Except as otherwise provided in this section,

22  there shall be no material alteration or substantial additions

23  to the common elements or to real property which is

24  association property, except in a manner provided in the

25  declaration as originally recorded or as amended pursuant to

26  the procedures provided therein.  If the declaration as

27  originally recorded or amended does not specify the procedure

28  for approval of material alterations or substantial additions,

29  75 percent of the total voting interests of the association

30  must approve the alterations or additions.  This paragraph is

31  


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    CS for SB 348                                  First Engrossed



  1  intended to clarify existing law and applies to associations

  2  existing on the effective date of this act.

  3         (b)  There shall not be any material alteration of, or

  4  substantial addition to, the common elements of any

  5  condominium operated by a multicondominium association unless

  6  approved in the manner provided in the declaration of the

  7  affected condominium or condominiums as originally recorded,

  8  or as amended pursuant to the procedures provided therein. If

  9  a declaration as originally recorded or amended does not

10  specify a procedure for approving such an alteration or

11  addition, the approval of 75 percent of the total voting

12  interests of each affected condominium is required. This

13  subsection does not prohibit a provision in any declaration,

14  articles of incorporation, or bylaws as originally recorded or

15  amended requiring the approval of unit owners in any

16  condominium operated by the same association or requiring

17  board approval before a material alteration or substantial

18  addition to the common elements is permitted. This paragraph

19  is intended to clarify existing law and applies to

20  associations existing on the effective date of this act.

21         (c)  There shall not be any material alteration or

22  substantial addition made to association real property

23  operated by a multicondominium association, except as provided

24  in the declaration, articles of incorporation, or bylaws as

25  said documents are originally recorded or amended pursuant to

26  the procedures provided therein. If the declaration, articles

27  of incorporation, or bylaws do not specify the procedure for

28  approving an alteration or addition to association real

29  property, the approval of 75 percent of the total voting

30  interests of the association is required. This paragraph is

31  


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    CS for SB 348                                  First Engrossed



  1  intended to clarify existing law and applies to associations

  2  existing on the effective date of this act.

  3         Section 18.  Paragraphs (b) and (c) of subsection (1)

  4  of section 718.115, Florida Statutes, are amended to read:

  5         718.115  Common expenses and common surplus.--

  6         (1)

  7         (b)  The common expenses of a condominium within a

  8  multicondominium are the common expenses directly attributable

  9  to the operation of that condominium. The common expenses of a

10  multicondominium association do not include the common

11  expenses directly attributable to the operation of any

12  specific condominium or condominiums within the

13  multicondominium. This paragraph is intended to clarify

14  existing law and applies to associations existing on the

15  effective date of this act.

16         (c)  The common expenses of a multicondominium

17  association may include categories of expenses related to the

18  property or common elements within a specific condominium in

19  the multicondominium if such property or common elements are

20  areas in which all members of the multicondominium association

21  have use rights or from which all members receive tangible

22  economic benefits. Such common expenses of the association

23  shall be identified in the declaration or bylaws of each

24  condominium within the multicondominium association. This

25  paragraph is intended to clarify existing law and applies to

26  associations existing on the effective date of this act.

27         Section 19.  Subsections (1) and (4) of section

28  718.405, Florida Statutes, are amended to read:

29         718.405  Multicondominiums; multicondominium

30  associations.--

31  


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    CS for SB 348                                  First Engrossed



  1         (1)  An association may operate more than one

  2  condominium. For multicondominiums created on or after July 1,

  3  2000, if the declaration for each condominium to be operated

  4  by that association shall provide provides for participation

  5  in a multicondominium, in conformity with this section, and

  6  disclose discloses or describe describes:

  7         (a)  The manner or formula by which the assets,

  8  liabilities, common surplus, and common expenses of the

  9  association will be apportioned among the units within the

10  condominiums operated by the association, in accordance with

11  s. 718.104(4)(g) or (h), as applicable.

12         (b)  Whether unit owners in any other condominium, or

13  any other persons, will or may have the right to use

14  recreational areas or any other facilities or amenities that

15  are common elements of the condominium, and, if so, the

16  specific formula by which the other users will share the

17  common expenses related to those facilities or amenities.

18         (c)  Recreational and other commonly used facilities or

19  amenities which the developer has committed to provide that

20  will be owned, leased by, or dedicated by a recorded plat to

21  the association but which are not included within any

22  condominium operated by the association. The developer may

23  reserve the right to add additional facilities or amenities if

24  the declaration and prospectus for each condominium to be

25  operated by the association contains the following statement

26  in conspicuous type and in substantially the following form:

27  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT

28  CONSENT OF UNIT OWNERS OR THE ASSOCIATION.

29         (d)  The voting rights of the unit owners in the

30  election of directors and in other multicondominium

31  association affairs when a vote of the owners is taken,


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    CS for SB 348                                  First Engrossed



  1  including, but not limited to, a statement as to whether each

  2  unit owner will have a right to personally cast his or her own

  3  vote in all matters voted upon.

  4         (4)  This section does not prevent or restrict the

  5  formation of a multicondominium by the merger or consolidation

  6  of two or more condominium associations. Mergers or

  7  consolidations of associations shall be accomplished in

  8  accordance with this chapter, the declarations of the

  9  condominiums being merged or consolidated, and chapter 617.

10  Section 718.110(4) does not apply to amendments to

11  declarations necessary to effect a merger or consolidation.

12  This section is intended to clarify existing law and applies

13  to associations existing on the effective date of this act.

14         Section 20.  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


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    CS for SB 348                                  First Engrossed



  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, AND A COPY

10  OF 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, AND 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, AND RULES, AND QUESTION AND ANSWER SHEET IF REQUESTED

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

29  TERMINATE AT CLOSING.

30  

31  


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    CS for SB 348                                  First Engrossed



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

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

  3  closing.

  4         Section 21.  Subsection (15) of section 718.504,

  5  Florida Statutes, is amended to read:

  6         718.504  Prospectus or offering circular.--Every

  7  developer of a residential condominium which contains more

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

  9  residential condominiums which will be served by property to

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

11  units, shall prepare a prospectus or offering circular and

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

13  and Mobile Homes prior to entering into an enforceable

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

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

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

17  the prospectus or offering circular, each buyer shall be

18  furnished a separate page entitled "Frequently Asked Questions

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

20  approved by the division and a copy of the financial

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

22  readable language, inform prospective purchasers regarding

23  their voting rights and unit use restrictions, including

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

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

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

27  other commonly used facilities; shall contain a statement

28  identifying that amount of assessment which, pursuant to the

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

30  special assessments, and which shall further identify the

31  basis upon which assessments are levied, whether monthly,


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    CS for SB 348                                  First Engrossed



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

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

  3  in which the association may face liability in excess of

  4  $100,000; and which shall further state whether membership in

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

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

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

  8  judgment will assist prospective purchasers. The prospectus or

  9  offering circular may include more than one condominium,

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

11  the date of the prospectus or offering circular.  The

12  prospectus or offering circular must contain the following

13  information:

14         (15)  If a the condominium created on or after July 1,

15  2000, is or may become part of a multicondominium, the

16  following information must be provided:

17         (a)  A statement in conspicuous type in substantially

18  the following form:  THIS CONDOMINIUM IS (MAY BE) PART OF A

19  MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL

20  (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately

21  following this statement, the location in the prospectus or

22  offering circular and its exhibits where the multicondominium

23  aspects of the offering are described must be stated.

24         (b)  A summary of the provisions in the declaration,

25  articles of incorporation, and bylaws which establish and

26  provide for the operation of the multicondominium, including a

27  statement as to whether unit owners in the condominium will

28  have the right to use recreational or other facilities located

29  or planned to be located in other condominiums operated by the

30  same association, and the manner of sharing the common

31  expenses related to such facilities.


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    CS for SB 348                                  First Engrossed



  1         (c)  A statement of the minimum and maximum number of

  2  condominiums, and the minimum and maximum number of units in

  3  each of those condominiums, which will or may be operated by

  4  the association, and the latest date by which the exact number

  5  will be finally determined.

  6         (d)  A statement as to whether any of the condominiums

  7  in the multicondominium may include units intended to be used

  8  for nonresidential purposes and the purpose or purposes

  9  permitted for such use.

10         (e)  A general description of the location and

11  approximate acreage of any land on which any additional

12  condominiums to be operated by the association may be located.

13         Section 22.  Subsection (2) of section 468.452, Florida

14  Statutes, is amended to read:

15         468.452  Definitions.--For purposes of this part, the

16  term:

17         (2)  "Athlete agent" means a person who, directly or

18  indirectly, recruits or solicits a student athlete to enter

19  into an agent contract, or who, for any type of financial

20  gain, procures, offers, promises, or attempts to obtain

21  employment or promotional fees or benefits for a student

22  athlete with a professional sports team or as a professional

23  athlete, or with any promoter who markets or attempts to

24  market the student athlete's athletic ability or athletic

25  reputation. This term includes all employees and other persons

26  acting on behalf of an athlete agent who participate in the

27  activities included under this subsection. The term does not

28  include a spouse, parent, sibling, grandparent, or guardian of

29  the student-athlete or an individual acting solely on behalf

30  of a professional sports team or professional sports

31  organization.


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    CS for SB 348                                  First Engrossed



  1         Section 23.  Section 468.453, Florida Statutes, is

  2  amended to read:

  3         468.453  Licensure required; qualifications;

  4  examination; bond; exception; license nontransferable.--

  5         (1)  Any person who practices as an athlete agent in

  6  this state must be licensed pursuant to this part.

  7         (2)  A person shall be licensed as an athlete agent if

  8  the applicant:

  9         (a)  Is at least 18 years of age.

10         (b)  Is of good moral character.

11         (c)  Passes an examination provided by the department

12  which tests the applicant's proficiency to practice as an

13  athlete agent, including, but not limited to, knowledge of the

14  laws and rules of this state relating to athlete agents, this

15  part, and chapter 455.

16         (c)(d)  Has completed the application form and remitted

17  an application fee not to exceed $500, an examination fee not

18  to exceed the actual cost for the examination plus $500, an

19  active licensure fee not to exceed $2,000, and all other

20  applicable fees provided for in this part or in chapter 455.

21         (d)(e)  Has submitted to the department a fingerprint

22  card for a criminal history records check. The fingerprint

23  card shall be forwarded to the Division of Criminal Justice

24  Information Systems within the Department of Law Enforcement

25  for purposes of processing the fingerprint card to determine

26  if the applicant has a criminal history record. The

27  fingerprint card shall also be forwarded to the Federal Bureau

28  of Investigation for purposes of processing the fingerprint

29  card to determine if the applicant has a criminal history

30  record. The information obtained by the processing of the

31  fingerprint card by the Florida Department of Law Enforcement


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    CS for SB 348                                  First Engrossed



  1  and the Federal Bureau of Investigation shall be sent to the

  2  department for the purpose of determining if the applicant is

  3  statutorily qualified for licensure.

  4         (e)(f)  Has not in any jurisdiction, within the

  5  preceding 5 years, been convicted or found guilty of or

  6  entered a plea of nolo contendere for, regardless of

  7  adjudication, a crime which relates to the applicant's

  8  practice or ability to practice as an athlete agent.

  9         (g)  Has posted with the department a $15,000 surety

10  bond issued by an insurance company authorized to do business

11  in this state.  The bond shall be in favor of the State of

12  Florida, Department of Business and Professional Regulation,

13  for the use and benefit of any student athlete or college or

14  university within Florida who or which is injured or damaged,

15  including reasonable costs and attorney's fees, as a result of

16  acts or omissions by the athlete agent pursuant to a license

17  issued under this part.  The bond shall be written in the form

18  determined by the department. The bond shall provide that the

19  athlete agent is responsible for the acts or omissions of any

20  representatives acting under the athlete agent's supervision

21  or authority. The bond shall be in effect for and cover all

22  times that the athlete agent has an active license and

23  conducts business pursuant to that license in this or any

24  other state.

25         (3)  An unlicensed individual may act as an athlete

26  agent if:

27         (a)  A student-athlete or person acting on the

28  athlete's behalf initiates communication with the individual;

29  and

30         (b)  Within 7 days after an initial act as an athlete

31  agent, the individual submits an application for licensure.


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    CS for SB 348                                  First Engrossed



  1  Members of The Florida Bar are exempt from the state laws and

  2  rules component, and the fee for such, of the examination

  3  required by this section.

  4         (4)  A license issued to an athlete agent is not

  5  transferable.

  6         (5)  By acting as an athlete agent in this state, a

  7  nonresident individual appoints the department as the

  8  individual's agent for service of process in any civil action

  9  related to the individual's acting as an athlete agent.

10         (6)  The department may issue a temporary license while

11  an application for licensure is pending. If the department

12  issues a notice of intent to deny the license application, the

13  initial temporary license expires and may not be extended

14  during any proceeding or administrative or judicial review.

15         (7)(a)  An individual who has submitted an application

16  and holds a certificate, registration, or license as an

17  athlete agent in another state may submit a copy of the

18  application and certificate, registration, or license from the

19  other state in lieu of submitting an application in the form

20  prescribed pursuant to this section. The department shall

21  accept the application and the certificate from the other

22  state as an application for registration in this state if the

23  application in the other state:

24         1.  Was submitted in the other state within 6 months

25  next preceding the submission of the application in this state

26  and the applicant certifies that the information contained in

27  the application is current;

28         2.  Contains information substantially similar to or

29  more comprehensive than that required in an application

30  submitted in this state; and

31  


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    CS for SB 348                                  First Engrossed



  1         3.  Was signed by the applicant under penalty of

  2  perjury.

  3         (b)  An applicant applying under this subsection must

  4  meet all other requirements for licensure as provided by this

  5  part.

  6         Section 24.  Section 468.454, Florida Statutes, is

  7  amended to read:

  8         468.454  Contracts.--

  9         (1)  An agent contract must be in a record, signed, or

10  otherwise authenticated by the parties.

11         (2)  An agent contract must state:

12         (a)  The amount and method of calculating the

13  consideration to be paid by the student-athlete for services

14  to be provided by the athlete agent and any other

15  consideration the agent has received or will receive from any

16  other source under the contract;

17         (b)  The name of any person not listed in the licensure

18  application who will be compensated because the

19  student-athlete signed the agent contract;

20         (c)  A description of any expenses that the

21  student-athlete agrees to reimburse;

22         (d)  A description of the services to be provided to

23  the student-athlete;

24         (e)  The duration of the contract; and

25         (f)  The date of execution.

26         (3)  An agent contract must contain, in close proximity

27  to the signature of the student-athlete, a conspicuous notice

28  in boldface type in capital letters stating:

29  

30                    WARNING TO STUDENT-ATHLETE

31                                 


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    CS for SB 348                                  First Engrossed



  1         IF YOU SIGN THE CONTRACT:

  2         1.  YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS

  3         A STUDENT-ATHLETE IN YOUR SPORT;

  4         2.  IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72

  5         HOURS AFTER ENTERING INTO THE CONTRACT, YOU AND

  6         YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC

  7         DIRECTOR; AND

  8         3.  YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS

  9         AFTER SIGNING IT. HOWEVER, CANCELLATION OF THIS

10         CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.

11  

12         (4)  An agent contract that does not conform to this

13  section is voidable by the student-athlete. If a

14  student-athlete voids an agent contract, the student-athlete

15  is not required to pay any consideration or return any

16  consideration received from the athlete agent to induce the

17  student-athlete to enter into the contract.

18         (5)  The athlete agent shall give a record of the

19  signed or authenticated agent contract to the student-athlete

20  at the time of execution.

21         (6)  Within 72 hours after entering into an agent

22  contract or before the next scheduled athletic event in which

23  the student-athlete may participate, whichever occurs first,

24  the athlete agent must give notice in a record of the

25  existence of the contract to the athletic director of the

26  educational institution at which the student-athlete is

27  enrolled or the athlete agent has reasonable grounds to

28  believe the student-athlete intends to enroll.

29         (7)  Within 72 hours after entering into an agent

30  contract or before the next athletic event in which the

31  student-athlete may participate, whichever occurs first, the


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    CS for SB 348                                  First Engrossed



  1  student-athlete must inform the athletic director of the

  2  educational institution at which the student-athlete is

  3  enrolled that he or she has entered into an agent contract.

  4         (8)  A student-athlete may cancel an agent contract by

  5  giving notice of the cancellation to the athlete agent in a

  6  record within 14 days after the contract is signed.

  7         (9)  A student-athlete may not waive the right to

  8  cancel an agent contract.

  9         (10)  If a student-athlete cancels an agent contract,

10  the student-athlete is not required to pay any consideration

11  or return any consideration received from the athlete agent to

12  induce the student-athlete to enter into the contract.

13         (1)  An athlete agent and a student athlete who enter

14  into an agent contract must provide written notice of the

15  contract to the athletic director or the president of the

16  college or university in which the student athlete is

17  enrolled.  The athlete agent and the student must give the

18  notice before the contracting student athlete practices or

19  participates in any intercollegiate athletic event or within

20  72 hours after entering into said contract, whichever comes

21  first. Failure of the athlete agent to provide this

22  notification is a felony of the third degree, punishable as

23  provided in ss. 775.082, 775.083, 775.084, 775.089, and

24  775.091.

25         (2)  A written contract between a student athlete and

26  an athlete agent must state the fees and percentages to be

27  paid by the student athlete to the agent and must have a

28  notice printed near the student athlete's signature containing

29  the following statement in 10-point boldfaced type:

30         "WARNING TO THE STUDENT ATHLETE:  WHEN YOU SIGN THIS

31  CONTRACT, YOU WILL LIKELY IMMEDIATELY LOSE YOUR ELIGIBILITY TO


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    CS for SB 348                                  First Engrossed



  1  COMPETE IN INTERCOLLEGIATE ATHLETICS.  TO AVOID CRIMINAL

  2  PROSECUTION YOU MUST GIVE WRITTEN NOTICE THAT YOU HAVE ENTERED

  3  INTO THIS CONTRACT TO THE ATHLETIC DIRECTOR OR PRESIDENT OF

  4  YOUR COLLEGE OR UNIVERSITY WITHIN 72 HOURS AFTER ENTERING INTO

  5  THIS CONTRACT OR PRIOR TO PARTICIPATING IN INTERCOLLEGIATE

  6  ATHLETICS, WHICHEVER COMES FIRST. FAILURE TO PROVIDE THIS

  7  NOTICE IS A CRIMINAL OFFENSE.  DO NOT SIGN THIS CONTRACT UNTIL

  8  YOU HAVE READ IT AND FILLED IN ANY BLANK SPACES.  YOU MAY

  9  CANCEL THIS CONTRACT BY NOTIFYING THE ATHLETE AGENT IN WRITING

10  OF YOUR DESIRE TO CANCEL NOT LATER THAN THE 15TH DAY AFTER THE

11  DATE YOU SIGN THIS CONTRACT. HOWEVER, EVEN IF YOU CANCEL THIS

12  CONTRACT, THE INTERCOLLEGIATE ATHLETIC ASSOCIATION OR

13  CONFERENCE TO WHICH YOUR COLLEGE OR UNIVERSITY BELONGS MAY NOT

14  RESTORE YOUR ELIGIBILITY TO PARTICIPATE IN INTERCOLLEGIATE

15  ATHLETICS."

16         (3)  An agent contract which does not meet the

17  requirements of this section is void and unenforceable.

18         (4)  Within 15 days after the date the athletic

19  director or president of the college or university of the

20  student athlete receives the notice required by this section

21  that a student athlete has entered into an athlete agent

22  contract, the student athlete shall have the right to rescind

23  the contract with the athlete agent by giving written notice

24  to the athlete agent of the student athlete's rescission of

25  the contract.  The student athlete may not under any

26  circumstances waive the student athlete's right to rescind the

27  agent contract.

28         (5)  A postdated agent contract is void and

29  unenforceable.

30         (11)(6)  An athlete agent shall not enter into an agent

31  contract that purports to or takes effect at a future time


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    CS for SB 348                                  First Engrossed



  1  after the student athlete no longer has remaining eligibility

  2  to participate in intercollegiate athletics. Such a contract

  3  is void and unenforceable.

  4         (12)(7)  An agent contract between a student athlete

  5  and a person not licensed under this part is void and

  6  unenforceable.

  7         Section 25.  Subsection (3) of section 468.456, Florida

  8  Statutes, is amended to read:

  9         468.456  Prohibited acts.--

10         (3)  When the department finds any person guilty of any

11  of the prohibited acts set forth in subsection (1), the

12  department may enter an order imposing one or more of the

13  penalties provided for in s. 455.227, and an administrative

14  fine not to exceed $25,000 for each separate offense. In

15  addition to any other penalties or disciplinary actions

16  provided for in this part, the department shall suspend or

17  revoke the license of any athlete agent licensed under this

18  part who violates paragraph (1)(f) or paragraph (1)(o) or s.

19  468.45615.

20         Section 26.  Subsection (4) is added to section

21  468.45615, Florida Statutes, to read:

22         468.45615  Provision of illegal inducements to athletes

23  prohibited; penalties; license suspension.--

24         (4)(a)  An athlete agent, with the intent to induce a

25  student-athlete to enter into an agent contract, may not:

26         1.  Give any materially false or misleading information

27  or make a materially false promise or representation;

28         2.  Furnish anything of value to a student-athlete

29  before the student-athlete enters into the agent contract; or

30         3.  Furnish anything of value to any individual other

31  than the student-athlete or another athlete agent.


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    CS for SB 348                                  First Engrossed



  1         (b)  An athlete agent may not intentionally:

  2         1.  Initiate contact with a student-athlete unless

  3  licensed under this part;

  4         2.  Refuse or fail to retain or permit inspection of

  5  the records required to be retained by s. 468.4565;

  6         3.  Provide materially false or misleading information

  7  in an application for licensure;

  8         4.  Predate or postdate an agent contract;

  9         5.  Fail to give notice of the existence of an agent

10  contract as required by s. 468.454(6); or

11         6.  Fail to notify a student-athlete before the

12  student-athlete signs or otherwise authenticates an agent

13  contract for a sport that the signing or authentication may

14  make the student-athlete ineligible to participate as a

15  student-athlete in that sport.

16         (c)  An athlete agent who violates this subsection

17  commits a felony of the second degree, punishable as provided

18  in s. 775.082, s. 775.083, or s. 775.084.

19         Section 27.  Section 468.4562, Florida Statutes, is

20  amended to read:

21         468.4562  Civil action by institution.--

22         (1)  A college or university may sue for damages, as

23  provided by this section, any person who violates this part.

24  A college or university may seek equitable relief to prevent

25  or minimize harm arising from acts or omissions which are or

26  would be a violation of this part.

27         (2)  For purposes of this section, a college or

28  university is damaged if, because of activities of the person,

29  the college or university is penalized, or is disqualified, or

30  suspended from participation in intercollegiate athletics by a

31  national association for the promotion and regulation of


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    CS for SB 348                                  First Engrossed



  1  intercollegiate athletics, or by an intercollegiate athletic

  2  conference or by reasonable self-imposed disciplinary action

  3  taken to mitigate sanctions likely to be imposed by such

  4  organization and, because of that penalty, disqualification,

  5  or suspension, or action the institution:

  6         (a)  Loses revenue from media coverage of a sports

  7  contest;

  8         (b)  Loses the right to grant an athletic scholarship;

  9         (c)  Loses the right to recruit an athlete;

10         (d)  Is prohibited from participating in postseason

11  athletic competition;

12         (e)  Forfeits an athletic contest; or

13         (f)  Otherwise suffers an adverse financial impact.

14         (3)  An institution that prevails in a suit brought

15  under this section may recover:

16         (a)  Actual damages;

17         (b)  Punitive damages;

18         (c)  Treble damages;

19         (d)  Court costs; and

20         (e)  Reasonable attorney's fees.

21         (4)  A right of action under this section does not

22  accrue until the educational institution discovers or by the

23  exercise of reasonable diligence would have discovered the

24  violation by the athlete agent or former student-athlete.

25         (5)  Any liability of the athlete agent or the former

26  student-athlete under this section is several and not joint.

27         (6)  This part does not restrict rights, remedies, or

28  defenses of any person under law or equity.

29         Section 28.  Subsection (1) of section 468.4565,

30  Florida Statutes, is amended to read:

31         468.4565  Business records requirement.--


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    CS for SB 348                                  First Engrossed



  1         (1)  An athlete agent who holds an active license and

  2  engages in business as an athlete agent shall establish and

  3  maintain complete financial and business records.  The athlete

  4  agent shall save each entry into a financial or business

  5  record for at least 5 4 years from the date of entry. These

  6  records must include, but shall not be limited to:

  7         (a)  The name and address of each individual

  8  represented by the athlete agent;

  9         (b)  Any agent contract entered into by the athlete

10  agent; and

11         (c)  Any direct costs incurred by the athlete agent in

12  the recruitment or solicitation of a student-athlete to enter

13  into an agent contract.

14         Section 29.  Sections 468.4563 and 468.4564, Florida

15  Statutes, are repealed.

16         Section 30.  Except as otherwise provided in this act,

17  this act shall take effect July 1, 2001.

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


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