HB 1229CS

CHAMBER ACTION




1The Civil Justice Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to homeowners' and condominium
7associations; amending s. 468.431, F.S.; providing and
8revising definitions; amending s. 468.4315, F.S.; revising
9qualifications of members of the Regulatory Council of
10Community Association Managers; providing that two members
11must be members of community associations; amending s.
12468.432, F.S.; requiring application to and licensure by
13the Department of Business and Professional Regulation of
14certain community association management firms or other
15like entities; providing for expiration and renewal of
16such license; providing and revising requirements for
17licensure; amending s. 468.435, F.S.; providing a fee for
18management firm licensure; amending s. 468.436, F.S.;
19providing that certain disciplinary actions against
20community association managers or management firms may be
21taken upon a finding by the Division of Florida Land
22Sales, Condominiums, and Mobile Homes or the department;
23adding an additional ground for disciplinary action;
24amending s. 718.110, F.S.; providing that alteration of
25parking spaces to accommodate persons with severe mobility
26disabilities does not constitute a material alteration or
27modification of the appurtenances to condominium units;
28amending s. 718.111, F.S.; restricting a condominium
29association from waiving an audit for more than 2
30consecutive years; requiring reasonable provisions to be
31made to provide parking spaces for persons with severe
32mobility disabilities; amending s. 718.112, F.S.; removing
33a provision allowing a condominium association to only
34respond once every 30 days to unit owner inquiries;
35providing that limited proxy votes may not be used for
36votes taken to waive or reduce reserves under certain
37circumstances; revising the terms of office and reelection
38of the members of a condominium association board;
39providing that certain coowners may not serve on the
40board; removing provisions that allowed a condominium
41association to establish different voting and election
42procedures in its bylaws under certain circumstances;
43requiring condominium associations, by a certain date, to
44adjust replacement reserve assessments annually; providing
45that the adjustment requirement applies to certain
46association budgets; providing that reserve funds may be
47used for nonscheduled purposes under certain catastrophic
48circumstances; amending s. 718.113, F.S.; providing for
49additional hurricane protection measures under certain
50circumstances; amending s. 718.303, F.S.; providing notice
51and response requirements to certain alleged violations;
52providing that action may not proceed without further
53notice when a fine is levied; amending s. 718.50151, F.S.;
54authorizing the division director to appoint a designee to
55serve ex officio on the Advisory Council on Condominiums;
56amending s. 719.104, F.S.; restricting a cooperative
57association from waiving an audit for more than 2
58consecutive years; amending s. 719.1055, F.S.; providing
59that restrictions on the rental of cooperative units
60applies only to certain unit owners; providing an
61effective date.
62
63Be It Enacted by the Legislature of the State of Florida:
64
65     Section 1.  Subsections (3), (4), and (5) of section
66468.431, Florida Statutes, are renumbered as subsections (4),
67(5), and (6), respectively, present subsection (3) is amended,
68and a new subsection (3) is added to said section, to read:
69     468.431  Definitions.--
70     (3)  "Community association management firm" means a
71corporation, limited liability company, partnership, trust,
72association, sole proprietorship, or other like organization
73engaging in the business of community association management to
74provide any of the services described in subsection (2).
75     (4)(3)  "Community association manager" means a natural
76person who is licensed pursuant to this part to perform
77community association management services.
78     Section 2.  Paragraph (a) of subsection (1) of section
79468.4315, Florida Statutes, is amended to read:
80     468.4315  Regulatory Council of Community Association
81Managers.--
82     (1)  The Regulatory Council of Community Association
83Managers is created within the department and shall consist of
84seven members appointed by the Governor and confirmed by the
85Senate.
86     (a)  Five members of the council shall be licensed
87community association managers, one of whom may shall be a
88community association manager employed by a timeshare managing
89entity as described in ss. 468.438 and 721.13, who have held an
90active license for 5 years. The remaining two council members
91shall be members of community associations, as defined in
92chapter 718, chapter 719, or chapter 720, and residents of this
93state and must not be or ever have been connected with the
94business of community association management.
95     Section 3.  Section 468.432, Florida Statutes, is amended
96to read:
97     468.432  Licensure of community association managers;
98community association management firms; exceptions.--
99     (1)  A person shall not manage or hold herself or himself
100out to the public as being able to manage a community
101association in this state unless she or he is licensed by the
102department in accordance with the provisions of this part.
103However, nothing in this part prohibits any person licensed in
104this state under any other law or court rule from engaging in
105the profession for which she or he is licensed.
106     (1)  As of January 1, 2006, a community association
107management firm or other like organization shall not engage in
108or hold itself out to the public as being able to engage in the
109business of community association management in this state
110unless it is licensed by the department as a community
111association management firm in accordance with the provisions of
112this part.
113     (2)  A community association management firm or other like
114organization desiring to be licensed as a community association
115management firm shall apply to the department on a form approved
116by the department accompanied by the application and licensure
117fees required by s. 468.435(1)(a) and (g). Each community
118association management firm applying for licensure under this
119subsection must be actively registered and authorized to do
120business in this state.
121     (3)  On its application each applicant shall designate a
122licensed community association manager who shall be required to
123respond to all inquires from and investigations by the
124department or division.
125     (4)  Each licensed community association management firm
126shall notify the department within 30 days of any change of
127information contained in the application upon which licensure is
128based.
129     (5)  A community association management firm license shall
130expire September 30 of even-numbered years and shall be renewed
131every 2 years. An application for renewal shall be accompanied
132by the renewal fee required by s. 468.435(1)(d).
133     (6)  The department shall license each applicant who the
134department certifies as meeting the requirements of this
135section.
136     (7)  If the license of at least one active community
137association management member who is a natural person is not in
138force, the license of the community association management firm
139or other like organization is canceled automatically during that
140time.
141     (8)  Any community association management firm or other
142like organization agrees by being licensed that it will employ
143only licensed persons in the direct provision of community
144association management services as defined in s. 468.431(2).
145     (2)  Nothing in this part prohibits a corporation,
146partnership, trust, association, or other like organization from
147engaging in the business of community association management
148without being licensed if it employs licensed natural persons in
149the direct provision of community association management
150services. Such corporation, partnership, trust, association, or
151other organization shall also file with the department a
152statement on a form approved by the department that it submits
153itself to the rules of the council and the department and the
154provisions of this part which the department deems applicable.
155     Section 4.  Paragraph (g) is added to subsection (1) of
156section 468.435, Florida Statutes, to read:
157     468.435  Fees; establishment; disposition.--
158     (1)  The council shall, by rule, establish fees for the
159described purposes and within the ranges specified in this
160section:
161     (g)  Management firm license fee: not more than $250.
162     Section 5.  Section 468.436, Florida Statutes, is amended
163to read:
164     468.436  Disciplinary proceedings.--
165     (1)  Upon a finding by the Division of Florida Land Sales,
166Condominiums, and Mobile Homes or the department, the following
167acts constitute grounds for which the disciplinary actions in
168subsection (3) may be taken:
169     (a)  Violation of any provision of s. 455.227(1).
170     (b)1.  Violation of any provision of this part.
171     2.  Violation of any lawful order or rule rendered or
172adopted by the department or the council.
173     3.  Being convicted of or pleading nolo contendere to a
174felony in any court in the United States.
175     4.  Obtaining a license or certification or any other
176order, ruling, or authorization by means of fraud,
177misrepresentation, or concealment of material facts.
178     5.  Committing acts of gross misconduct or gross negligence
179in connection with the profession.
180     6.  Contracting on behalf of an association with any entity
181in which the licensee has a financial interest that is not
182disclosed.
183     (2)  The council shall specify by rule the acts or
184omissions that constitute a violation of subsection (1).
185     (3)  When the Division of Florida Land Sales, Condominiums,
186and Mobile Homes or the department finds any community
187association manager or management firm guilty of any of the
188grounds set forth in subsection (1), the department it may enter
189an order imposing one or more of the following penalties:
190     (a)  Denial of an application for licensure.
191     (b)  Revocation or suspension of a license.
192     (c)  Imposition of an administrative fine not to exceed
193$5,000 for each count or separate offense.
194     (d)  Issuance of a reprimand.
195     (e)  Placement of the community association manager or firm
196on probation for a period of time and subject to such conditions
197as the department specifies.
198     (f)  Restriction of the authorized scope of practice by the
199community association manager or firm.
200     (4)  The department shall reissue the license of a
201disciplined community association manager or firm upon
202certification by the department that the disciplined person or
203firm has complied with all of the terms and conditions set forth
204in the final order.
205     Section 6.  Subsection (4) of section 718.110, Florida
206Statutes, is amended to read:
207     718.110  Amendment of declaration; correction of error or
208omission in declaration by circuit court.--
209     (4)  Unless otherwise provided in the declaration as
210originally recorded, no amendment may change the configuration
211or size of any unit in any material fashion, materially alter or
212modify the appurtenances to the unit, or change the proportion
213or percentage by which the unit owner shares the common expenses
214of the condominium and owns the common surplus of the
215condominium unless the record owner of the unit and all record
216owners of liens on the unit join in the execution of the
217amendment and unless all the record owners of all other units in
218the same condominium approve the amendment. The acquisition of
219property by the association and material alterations or
220substantial additions to such property or the common elements by
221the association in accordance with s. 718.111(7) or (15) or s.
222718.113, and amendments providing for the transfer of use rights
223in limited common elements pursuant to s. 718.106(2)(b) shall
224not be deemed to constitute a material alteration or
225modification of the appurtenances to the units. A declaration
226recorded after April 1, 1992, may not require the approval of
227less than a majority of total voting interests of the
228condominium for amendments under this subsection, unless
229otherwise required by a governmental entity.
230     Section 7.  Paragraph (d) of subsection (13) of section
231718.111, Florida Statutes, is amended, and subsection (15) is
232added to said section, to read:
233     718.111  The association.--
234     (13)  FINANCIAL REPORTING.--Within 90 days after the end of
235the fiscal year, or annually on a date provided in the bylaws,
236the association shall prepare and complete, or contract for the
237preparation and completion of, a financial report for the
238preceding fiscal year. Within 21 days after the final financial
239report is completed by the association or received from the
240third party, but not later than 120 days after the end of the
241fiscal year or other date as provided in the bylaws, the
242association shall mail to each unit owner at the address last
243furnished to the association by the unit owner, or hand deliver
244to each unit owner, a copy of the financial report or a notice
245that a copy of the financial report will be mailed or hand
246delivered to the unit owner, without charge, upon receipt of a
247written request from the unit owner. The division shall adopt
248rules setting forth uniform accounting principles and standards
249to be used by all associations and shall adopt rules addressing
250financial reporting requirements for multicondominium
251associations. In adopting such rules, the division shall
252consider the number of members and annual revenues of an
253association. Financial reports shall be prepared as follows:
254     (d)1.  If approved by a majority of the voting interests
255present at a properly called meeting of the association, an
256association may prepare or cause to be prepared:
257     a.1.  A report of cash receipts and expenditures in lieu of
258a compiled, reviewed, or audited financial statement;
259     b.2.  A report of cash receipts and expenditures or a
260compiled financial statement in lieu of a reviewed or audited
261financial statement; or
262     c.3.  A report of cash receipts and expenditures, a
263compiled financial statement, or a reviewed financial statement
264in lieu of an audited financial statement.
265     2.  In no event shall an association waive its requirement
266for an audit, if applicable, for more than 2 consecutive years.
267
268Such meeting and approval must occur prior to the end of the
269fiscal year and is effective only for the fiscal year in which
270the vote is taken. With respect to an association to which the
271developer has not turned over control of the association, all
272unit owners, including the developer, may vote on issues related
273to the preparation of financial reports for the first 2 fiscal
274years of the association's operation, beginning with the fiscal
275year in which the declaration is recorded. Thereafter, all unit
276owners except the developer may vote on such issues until
277control is turned over to the association by the developer.
278     (15)  PARKING SPACES FOR PERSONS WHO HAVE SEVERE MOBILITY
279DISABILITIES.--Because parking in condominium associations
280generally is not configured to provide vehicular ingress and
281egress for persons who have severe mobility disabilities
282requiring the use of a vehicle with a lift or ramp, it is
283determined to be in the best interest of all residents of the
284state that these persons not be precluded from housing choices
285that are desirable to them where alterations may be made to
286accommodate this disability. The association shall make
287reasonable provisions for a mobility-disabled person to transfer
288the use rights to a limited common element parking place that
289does not accommodate the person's vehicle for a common area
290parking space that will accommodate his or her vehicle. If
291alterations to the parking areas are required to bring the
292parking space into compliance with s. 553.5041, the alterations
293shall be at the expense of the person requesting the
294accommodation, and the cost of returning the parking area to its
295previous condition shall also be paid by the person requesting
296the accommodation.
297     Section 8.  Paragraphs (a), (b), (d), and (f) of subsection
298(2) of section 718.112, Florida Statutes, are amended to read:
299     718.112  Bylaws.--
300     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
301following and, if they do not do so, shall be deemed to include
302the following:
303     (a)  Administration.--
304     1.  The form of administration of the association shall be
305described indicating the title of the officers and board of
306administration and specifying the powers, duties, manner of
307selection and removal, and compensation, if any, of officers and
308boards. In the absence of such a provision, the board of
309administration shall be composed of five members, except in the
310case of a condominium which has five or fewer units, in which
311case in a not-for-profit corporation the board shall consist of
312not fewer than three members. In the absence of provisions to
313the contrary in the bylaws, the board of administration shall
314have a president, a secretary, and a treasurer, who shall
315perform the duties of such officers customarily performed by
316officers of corporations. Unless prohibited in the bylaws, the
317board of administration may appoint other officers and grant
318them the duties it deems appropriate. Unless otherwise provided
319in the bylaws, the officers shall serve without compensation and
320at the pleasure of the board of administration. Unless otherwise
321provided in the bylaws, the members of the board shall serve
322without compensation.
323     2.  When a unit owner files a written inquiry by certified
324mail with the board of administration, the board shall respond
325in writing to the unit owner within 30 days of receipt of the
326inquiry. The board's response shall either give a substantive
327response to the inquirer, notify the inquirer that a legal
328opinion has been requested, or notify the inquirer that advice
329has been requested from the division. If the board requests
330advice from the division, the board shall, within 10 days of its
331receipt of the advice, provide in writing a substantive response
332to the inquirer. If a legal opinion is requested, the board
333shall, within 60 days after the receipt of the inquiry, provide
334in writing a substantive response to the inquiry. The failure to
335provide a substantive response to the inquiry as provided herein
336precludes the board from recovering attorney's fees and costs in
337any subsequent litigation, administrative proceeding, or
338arbitration arising out of the inquiry. The association may
339through its board of administration adopt reasonable rules and
340regulations regarding the frequency and manner of responding to
341unit owner inquiries, one of which may be that the association
342is only obligated to respond to one written inquiry per unit in
343any given 30-day period. In such a case, any additional inquiry
344or inquiries must be responded to in the subsequent 30-day
345period, or periods, as applicable.
346     (b)  Quorum; voting requirements; proxies.--
347     1.  Unless a lower number is provided in the bylaws, the
348percentage of voting interests required to constitute a quorum
349at a meeting of the members shall be a majority of the voting
350interests. Unless otherwise provided in this chapter or in the
351declaration, articles of incorporation, or bylaws, and except as
352provided in subparagraph (d)3., decisions shall be made by
353owners of a majority of the voting interests represented at a
354meeting at which a quorum is present.
355     2.  Except as specifically otherwise provided herein, after
356January 1, 1992, unit owners may not vote by general proxy, but
357may vote by limited proxies substantially conforming to a
358limited proxy form adopted by the division. Limited proxies and
359general proxies may be used to establish a quorum. Limited
360proxies shall be used for votes taken to waive or reduce
361reserves in accordance with subparagraph (f)2.; for votes taken
362to waive the financial reporting requirements of s. 718.111(13);
363for votes taken to amend the declaration pursuant to s. 718.110;
364for votes taken to amend the articles of incorporation or bylaws
365pursuant to this section; and for any other matter for which
366this chapter requires or permits a vote of the unit owners.
367Except as provided in paragraph (d), after January 1, 1992, no
368proxy, limited or general, shall be used in the election of
369board members. General proxies may be used for other matters for
370which limited proxies are not required, and may also be used in
371voting for nonsubstantive changes to items for which a limited
372proxy is required and given. Notwithstanding the provisions of
373this subparagraph, unit owners may vote in person at unit owner
374meetings. Nothing contained herein shall limit the use of
375general proxies or require the use of limited proxies for any
376agenda item or election at any meeting of a timeshare
377condominium association.
378     3.  Any proxy given shall be effective only for the
379specific meeting for which originally given and any lawfully
380adjourned meetings thereof. In no event shall any proxy be valid
381for a period longer than 90 days after the date of the first
382meeting for which it was given. Every proxy is revocable at any
383time at the pleasure of the unit owner executing it.
384     4.  A member of the board of administration or a committee
385may submit in writing his or her agreement or disagreement with
386any action taken at a meeting that the member did not attend.
387This agreement or disagreement may not be used as a vote for or
388against the action taken and may not be used for the purposes of
389creating a quorum.
390     5.  When any of the board or committee members meet by
391telephone conference, those board or committee members attending
392by telephone conference may be counted toward obtaining a quorum
393and may vote by telephone. A telephone speaker must be used so
394that the conversation of those board or committee members
395attending by telephone may be heard by the board or committee
396members attending in person as well as by any unit owners
397present at a meeting.
398     (d)  Unit owner meetings.--
399     1.  There shall be an annual meeting of the unit owners.
400Unless the bylaws provide otherwise, a vacancy on the board
401caused by the expiration of a director's term shall be filled by
402electing a new board member, and the election shall be by secret
403ballot; however, if the number of vacancies equals or exceeds
404the number of candidates, no election is required. If there is
405no provision in the bylaws for terms of the members of the
406board, The terms of all members of the board shall expire upon
407the election of their successors at the annual meeting. Members
408may stand for reelection. There shall be no limit to the number
409of times a board member may be reelected. Coowners of a unit may
410not serve as members of the board at the same time. Any unit
411owner desiring to be a candidate for board membership shall
412comply with subparagraph 3. A person who has been convicted of
413any felony by any court of record in the United States and who
414has not had his or her right to vote restored pursuant to law in
415the jurisdiction of his or her residence is not eligible for
416board membership. The validity of an action by the board is not
417affected if it is later determined that a member of the board is
418ineligible for board membership due to having been convicted of
419a felony.
420     2.  The bylaws shall provide the method of calling meetings
421of unit owners, including annual meetings. Written notice, which
422notice must include an agenda, shall be mailed, hand delivered,
423or electronically transmitted to each unit owner at least 14
424days prior to the annual meeting and shall be posted in a
425conspicuous place on the condominium property at least 14
426continuous days preceding the annual meeting. Upon notice to the
427unit owners, the board shall by duly adopted rule designate a
428specific location on the condominium property or association
429property upon which all notices of unit owner meetings shall be
430posted; however, if there is no condominium property or
431association property upon which notices can be posted, this
432requirement does not apply. In lieu of or in addition to the
433physical posting of notice of any meeting of the unit owners on
434the condominium property, the association may, by reasonable
435rule, adopt a procedure for conspicuously posting and repeatedly
436broadcasting the notice and the agenda on a closed-circuit cable
437television system serving the condominium association. However,
438if broadcast notice is used in lieu of a notice posted
439physically on the condominium property, the notice and agenda
440must be broadcast at least four times every broadcast hour of
441each day that a posted notice is otherwise required under this
442section. When broadcast notice is provided, the notice and
443agenda must be broadcast in a manner and for a sufficient
444continuous length of time so as to allow an average reader to
445observe the notice and read and comprehend the entire content of
446the notice and the agenda. Unless a unit owner waives in writing
447the right to receive notice of the annual meeting, such notice
448shall be hand delivered, mailed, or electronically transmitted
449to each unit owner. Notice for meetings and notice for all other
450purposes shall be mailed to each unit owner at the address last
451furnished to the association by the unit owner, or hand
452delivered to each unit owner. However, if a unit is owned by
453more than one person, the association shall provide notice, for
454meetings and all other purposes, to that one address which the
455developer initially identifies for that purpose and thereafter
456as one or more of the owners of the unit shall so advise the
457association in writing, or if no address is given or the owners
458of the unit do not agree, to the address provided on the deed of
459record. An officer of the association, or the manager or other
460person providing notice of the association meeting, shall
461provide an affidavit or United States Postal Service certificate
462of mailing, to be included in the official records of the
463association affirming that the notice was mailed or hand
464delivered, in accordance with this provision.
465     3.  The members of the board shall be elected by written
466ballot or voting machine. Proxies shall in no event be used in
467electing the board, either in general elections or elections to
468fill vacancies caused by recall, resignation, or otherwise,
469unless otherwise provided in this chapter. Not less than 60 days
470before a scheduled election, the association shall mail,
471deliver, or electronically transmit, whether by separate
472association mailing or included in another association mailing,
473delivery, or transmission, including regularly published
474newsletters, to each unit owner entitled to a vote, a first
475notice of the date of the election. Any unit owner or other
476eligible person desiring to be a candidate for the board must
477give written notice to the association not less than 40 days
478before a scheduled election. Together with the written notice
479and agenda as set forth in subparagraph 2., the association
480shall mail, deliver, or electronically transmit a second notice
481of the election to all unit owners entitled to vote therein,
482together with a ballot which shall list all candidates. Upon
483request of a candidate, the association shall include an
484information sheet, no larger than 81/2 inches by 11 inches,
485which must be furnished by the candidate not less than 35 days
486before the election, to be included with the mailing, delivery,
487or transmission of the ballot, with the costs of mailing,
488delivery, or electronic transmission and copying to be borne by
489the association. The association is not liable for the contents
490of the information sheets prepared by the candidates. In order
491to reduce costs, the association may print or duplicate the
492information sheets on both sides of the paper. The division
493shall by rule establish voting procedures consistent with the
494provisions contained herein, including rules establishing
495procedures for giving notice by electronic transmission and
496rules providing for the secrecy of ballots. Elections shall be
497decided by a plurality of those ballots cast. There shall be no
498quorum requirement; however, at least 20 percent of the eligible
499voters must cast a ballot in order to have a valid election of
500members of the board. No unit owner shall permit any other
501person to vote his or her ballot, and any such ballots
502improperly cast shall be deemed invalid, provided any unit owner
503who violates this provision may be fined by the association in
504accordance with s. 718.303. A unit owner who needs assistance in
505casting the ballot for the reasons stated in s. 101.051 may
506obtain assistance in casting the ballot. The regular election
507shall occur on the date of the annual meeting. The provisions of
508this subparagraph shall not apply to timeshare condominium
509associations. Notwithstanding the provisions of this
510subparagraph, an election is not required unless more candidates
511file notices of intent to run or are nominated than board
512vacancies exist.
513     4.  Any approval by unit owners called for by this chapter
514or the applicable declaration or bylaws, including, but not
515limited to, the approval requirement in s. 718.111(8), shall be
516made at a duly noticed meeting of unit owners and shall be
517subject to all requirements of this chapter or the applicable
518condominium documents relating to unit owner decisionmaking,
519except that unit owners may take action by written agreement,
520without meetings, on matters for which action by written
521agreement without meetings is expressly allowed by the
522applicable bylaws or declaration or any statute that provides
523for such action.
524     5.  Unit owners may waive notice of specific meetings if
525allowed by the applicable bylaws or declaration or any statute.
526If authorized by the bylaws, notice of meetings of the board of
527administration, unit owner meetings, except unit owner meetings
528called to recall board members under paragraph (j), and
529committee meetings may be given by electronic transmission to
530unit owners who consent to receive notice by electronic
531transmission.
532     6.  Unit owners shall have the right to participate in
533meetings of unit owners with reference to all designated agenda
534items. However, the association may adopt reasonable rules
535governing the frequency, duration, and manner of unit owner
536participation.
537     7.  Any unit owner may tape record or videotape a meeting
538of the unit owners subject to reasonable rules adopted by the
539division.
540     8.  Unless otherwise provided in the bylaws, any vacancy
541occurring on the board before the expiration of a term may be
542filled by the affirmative vote of the majority of the remaining
543directors, even if the remaining directors constitute less than
544a quorum, or by the sole remaining director. In the alternative,
545a board may hold an election to fill the vacancy, in which case
546the election procedures must conform to the requirements of
547subparagraph 3. unless the association has opted out of the
548statutory election process, in which case the bylaws of the
549association control. Unless otherwise provided in the bylaws, a
550board member appointed or elected under this section shall fill
551the vacancy for the unexpired term of the seat being filled.
552Filling vacancies created by recall is governed by paragraph (j)
553and rules adopted by the division.
554
555Notwithstanding subparagraphs (b)2. and (d)3., an association
556may, by the affirmative vote of a majority of the total voting
557interests, provide for different voting and election procedures
558in its bylaws, which vote may be by a proxy specifically
559delineating the different voting and election procedures. The
560different voting and election procedures may provide for
561elections to be conducted by limited or general proxy.
562     (f)  Annual budget.--
563     1.  The proposed annual budget of common expenses shall be
564detailed and shall show the amounts budgeted by accounts and
565expense classifications, including, if applicable, but not
566limited to, those expenses listed in s. 718.504(21). A
567multicondominium association shall adopt a separate budget of
568common expenses for each condominium the association operates
569and shall adopt a separate budget of common expenses for the
570association. In addition, if the association maintains limited
571common elements with the cost to be shared only by those
572entitled to use the limited common elements as provided for in
573s. 718.113(1), the budget or a schedule attached thereto shall
574show amounts budgeted therefor. If, after turnover of control of
575the association to the unit owners, any of the expenses listed
576in s. 718.504(21) are not applicable, they need not be listed.
577     2.  In addition to annual operating expenses, the budget
578shall include reserve accounts for capital expenditures and
579deferred maintenance for the improvements that have already been
580made. These accounts shall include, but are not limited to, roof
581replacement, building painting, and pavement resurfacing,
582regardless of the amount of deferred maintenance expense or
583replacement cost, and for any other item for which the deferred
584maintenance expense or replacement cost exceeds $10,000. The
585amount to be reserved shall be computed by means of a formula
586which is based upon estimated remaining useful life and
587estimated replacement cost or deferred maintenance expense of
588each reserve item. The association shall may adjust replacement
589reserve assessments annually to take into account any changes in
590estimates or extension of the useful life of a reserve item
591caused by deferred maintenance. An association not in compliance
592with this subparagraph as of January 1, 2006, shall have until
593January 1, 2011, to meet the requirements of this subparagraph.
594This subsection does not apply to an adopted budget in which the
595members of an association have determined, by a majority vote at
596a duly called meeting of the association, to provide no reserves
597or less reserves than required by this subsection. However,
598prior to turnover of control of an association by a developer to
599unit owners other than a developer pursuant to s. 718.301, the
600developer may vote to waive the reserves or reduce the funding
601of reserves for the first 2 fiscal years of the association's
602operation, beginning with the fiscal year in which the initial
603declaration is recorded, after which time reserves may be waived
604or reduced only upon the vote of a majority of all nondeveloper
605voting interests voting in person or by limited proxy at a duly
606called meeting of the association. If a meeting of the unit
607owners has been called to determine whether to waive or reduce
608the funding of reserves, and no such result is achieved or a
609quorum is not attained, the reserves as included in the budget
610shall go into effect. After the turnover, the developer may vote
611its voting interest to waive or reduce the funding of reserves.
612     3.  Reserve funds and any interest accruing thereon shall
613remain in the reserve account or accounts, and shall be used
614only for authorized reserve expenditures unless their use for
615other purposes is approved in advance by a majority vote at a
616duly called meeting of the association. Prior to turnover of
617control of an association by a developer to unit owners other
618than the developer pursuant to s. 718.301, the developer-
619controlled association shall not vote to use reserves for
620purposes other than that for which they were intended without
621the approval of a majority of all nondeveloper voting interests,
622voting in person or by limited proxy at a duly called meeting of
623the association.
624     4.  The only voting interests which are eligible to vote on
625questions that involve waiving or reducing the funding of
626reserves, or using existing reserve funds for purposes other
627than purposes for which the reserves were intended, are the
628voting interests of the units subject to assessment to fund the
629reserves in question.
630     5.  Notwithstanding the provisions of subparagraph 3., the
631association after turnover may, in case of a catastrophic event,
632use reserve funds for nonscheduled purposes to mitigate further
633damage to units or common elements or to make the condominium
634accessible for repairs.
635     Section 9.  Subsection (5) of section 718.113, Florida
636Statutes, is amended to read:
637     718.113  Maintenance; limitation upon improvement; display
638of flag; hurricane shutters.--
639     (5)  Each board of administration shall adopt hurricane
640shutter specifications for each building within each condominium
641operated by the association which shall include color, style,
642and other factors deemed relevant by the board. All
643specifications adopted by the board shall comply with the
644applicable building code. Notwithstanding any provision to the
645contrary in the condominium documents, if approval is required
646by the documents, a board shall not refuse to approve the
647installation or replacement of hurricane shutters conforming to
648the specifications adopted by the board. The board may, subject
649to the provisions of s. 718.3026, and the approval of a majority
650of voting interests of the condominium, install hurricane
651shutters or hurricane protection that complies with or exceeds
652the applicable building code and may maintain, repair, or
653replace such approved hurricane shutters, whether on or within
654common elements, limited common elements, units, or association
655property. However, where laminated glass or window film
656architecturally designed to function as hurricane protection
657which complies with the applicable building code has been
658installed, the board may not install hurricane shutters. The
659board may operate shutters installed pursuant to this subsection
660without permission of the unit owners only where such operation
661is necessary to preserve and protect the condominium property
662and association property. The installation, replacement,
663operation, repair, and maintenance of such shutters in
664accordance with the procedures set forth herein shall not be
665deemed a material alteration to the common elements or
666association property within the meaning of this section.
667     Section 10.  Subsection (4) is added to section 718.303,
668Florida Statutes, to read:
669     718.303  Obligations of owners; waiver; levy of fine
670against unit by association.--
671     (4)  Anyone subject to an action under this section shall
672be notified of the violation by certified mail, return receipt
673requested, and, except in the case of imminent danger to person
674or property, shall have 30 days in which to respond in writing.
675If no response is provided and the violation continues or is
676repeated, the association may proceed without further notice
677except as provided in subsection (3).
678     Section 11.  Subsection (1) of section 718.50151, Florida
679Statutes, is amended to read:
680     718.50151  Advisory council; membership functions.--
681     (1)  There is created the Advisory Council on Condominiums.
682The council shall consist of seven appointed members. Two
683members shall be appointed by the President of the Senate, two
684members shall be appointed by the Speaker of the House of
685Representatives, and three members shall be appointed by the
686Governor. At least one member that is appointed by the Governor
687shall represent timeshare condominiums. Members shall be
688appointed to 2-year terms; however, one of the persons initially
689appointed by the Governor, by the President of the Senate, and
690by the Speaker of the House of Representatives shall be
691appointed to a 1-year term. The director of the division shall
692appoint a designee to serve as an ex officio nonvoting member.
693The Legislature intends that the persons appointed represent a
694cross-section of persons interested in condominium issues. The
695council shall be located within the division for administrative
696purposes. Members of the council shall serve without
697compensation but are entitled to receive per diem and travel
698expenses pursuant to s. 112.061 while on official business.
699     Section 12.  Paragraph (b) of subsection (4) of section
700719.104, Florida Statutes, is amended to read:
701     719.104  Cooperatives; access to units; records; financial
702reports; assessments; purchase of leases.--
703     (4)  FINANCIAL REPORT.--
704     (b)  The division shall adopt rules that may require that
705the association deliver to the unit owners, in lieu of the
706financial report required by this section, a complete set of
707financial statements for the preceding fiscal year. The
708financial statements shall be delivered within 90 days following
709the end of the previous fiscal year or annually on such other
710date as provided in the bylaws. The rules of the division may
711require that the financial statements be compiled, reviewed, or
712audited, and the rules shall take into consideration the
713criteria set forth in s. 719.501(1)(j). The requirement to have
714the financial statements compiled, reviewed, or audited does not
715apply to associations if a majority of the voting interests of
716the association present at a duly called meeting of the
717association have determined for a fiscal year to waive this
718requirement. In an association in which turnover of control by
719the developer has not occurred, the developer may vote to waive
720the audit requirement for the first 2 years of the operation of
721the association, after which time, waiver of an applicable audit
722requirement shall be by a majority of voting interests other
723than the developer. In no event shall an association waive its
724requirement for an audit, if applicable, for more than 2
725consecutive years. The meeting shall be held prior to the end of
726the fiscal year, and the waiver shall be effective for only one
727fiscal year. This subsection does not apply to a cooperative
728that consists of 50 or fewer units.
729     Section 13.  Subsection (7) is added to section 719.1055,
730Florida Statutes, to read:
731     719.1055  Amendment of cooperative documents; alteration
732and acquisition of property.--
733     (7)  Any amendment restricting cooperative unit owners'
734rights relating to the rental of units applies only to unit
735owners who consent to the amendment and unit owners who purchase
736their units after the effective date of that amendment.
737     Section 14.  This act shall take effect July 1, 2005.


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