HB 1593

CS

CHAMBER ACTION

1	The Civil Justice Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to community associations; directing the
7	Advisory Council on Condominiums to hold public hearings
8	and prepare and present a report to the Legislature
9	regarding certain issues relating to the powers of
10	condominium associations during catastrophic windstorm
11	events and the recovery and rebuilding following such
12	events; amending s. 720.305, F.S.; providing that a fine
13	levied by a homeowners' association against a homeowner
14	shall not become a lien against a parcel unless it is
15	imposed for violations of use restrictions on the land;
16	amending s. 720.311, F.S.; providing that the failure of a
17	party to make payment of fees and costs or appear for a
18	mediation session or arbitration proceeding acts as an
19	impasse in the proceeding and entitles the other party to
20	proceed in court and to receive and enforce an award of
21	costs and fees associated with the mediation or
22	arbitration; deleting the training hours required for
23	certification of mediators and arbitrators; providing that
24	qualifications for certification as a mediator or
25	arbitrator will be established by the Florida Supreme
26	Court; deleting a provision requiring the initial costs of
27	educating homeowners and other parties about homeowners'
28	associations and the use of alternative dispute resolution
29	techniques to be paid from moneys and filing fees
30	generated by the arbitration of recall and election
31	disputes and by the mediation of those disputes; amending
32	s. 718.112, F.S.; extending a period in which condominium
33	common areas do not have to be retrofitted with sprinkler
34	systems; creating s. 712.11, F.S.; providing for the
35	revival of certain declarations that have been
36	extinguished; providing an effective date.
37
38	Be It Enacted by the Legislature of the State of Florida:
39
40	Section 1.  The Advisory Council on Condominiums is
41	directed to hold public hearings, study available options and
42	proposals, and prepare a report to the Legislature, including
43	recommended legislation, dealing with the protection and
44	preservation of condominium property at the time of anticipated
45	catastrophic windstorm events and the recovery and rebuilding
46	following such events. Recommendations should consider the
47	communication options with condominium owners in times of
48	anticipated and declared emergencies, financial planning for
49	protecting and rebuilding condominium property following such
50	events, and the powers and responsibilities of unit owners and
51	the board of directors of the condominium association before,
52	during, and after such occurrences.
53	Section 2.  Subsection (2) of section 720.305, Florida
54	Statutes, is amended to read:
55	720.305  Obligations of members; remedies at law or in
56	equity; levy of fines and suspension of use rights; failure to
57	fill sufficient number of vacancies on board of directors to
58	constitute a quorum; appointment of receiver upon petition of
59	any member.--
60	(2)  If the governing documents so provide, an association
61	may suspend, for a reasonable period of time, the rights of a
62	member or a member's tenants, guests, or invitees, or both, to
63	use common areas and facilities and may levy reasonable fines,
64	not to exceed $100 per violation, against any member or any
65	tenant, guest, or invitee. A fine may be levied on the basis of
66	each day of a continuing violation, with a single notice and
67	opportunity for hearing, except that no such fine shall exceed
68	$1,000 in the aggregate unless otherwise provided in the
69	governing documents. A fine shall not become a lien against a
70	parcel unless it is imposed for violations of use restrictions
71	on the land. In any action to recover a fine, the prevailing
72	party is entitled to collect its reasonable attorney's fees and
73	costs from the nonprevailing party as determined by the court.
74	(a)  A fine or suspension may not be imposed without notice
75	of at least 14 days to the person sought to be fined or
76	suspended and an opportunity for a hearing before a committee of
77	at least three members appointed by the board who are not
78	officers, directors, or employees of the association, or the
79	spouse, parent, child, brother, or sister of an officer,
80	director, or employee. If the committee, by majority vote, does
81	not approve a proposed fine or suspension, it may not be
82	imposed.
83	(b)  The requirements of this subsection do not apply to
84	the imposition of suspensions or fines upon any member because
85	of the failure of the member to pay assessments or other charges
86	when due if such action is authorized by the governing
87	documents.
88	(c)  Suspension of common-area-use rights shall not impair
89	the right of an owner or tenant of a parcel to have vehicular
90	and pedestrian ingress to and egress from the parcel, including,
91	but not limited to, the right to park.
92	Section 3.  Paragraphs (b) and (c) of subsection (2) and
93	subsection (3) of section 720.311, Florida Statutes, are amended
94	to read:
95	720.311  Dispute resolution.--
96	(2)
97	(b)  If mediation as described in paragraph (a) is not
98	successful in resolving all issues between the parties, the
99	parties may file the unresolved dispute in a court of competent
100	jurisdiction or elect to enter into binding or nonbinding
101	arbitration pursuant to the procedures set forth in s. 718.1255
102	and rules adopted by the division, with the arbitration
103	proceeding to be conducted by a department arbitrator or by a
104	private arbitrator certified by the department. If all parties
105	do not agree to arbitration proceedings following an
106	unsuccessful mediation, any party may file the dispute in court.
107	A final order resulting from nonbinding arbitration is final and
108	enforceable in the courts if a complaint for trial de novo is
109	not filed in a court of competent jurisdiction within 30 days
110	after entry of the order. The failure of any party to make
111	payment of fees and costs within the time established by
112	department rule or to appear for a scheduled mediation session
113	or arbitration proceeding shall operate as an impasse in the
114	proceeding between the parties, entitling the other party to
115	proceed in court and to receive and enforce an award of costs
116	and fees associated with the mediation or arbitration.
117	(c)  The department shall develop a certification and
118	training program for private mediators and private arbitrators
119	which shall emphasize experience and expertise in the area of
120	the operation of community associations. A mediator or
121	arbitrator shall be certified by the department only if he or
122	she has met the qualifications for a mediator established for
123	circuit court mediators has attended at least 20 hours of
124	training in mediation or arbitration, as appropriate, and only
125	if the applicant has mediated or arbitrated at least 10 disputes
126	involving community associations within 5 years prior to the
127	date of the application, or has mediated or arbitrated 10
128	disputes in any area within 5 years prior to the date of
129	application and has completed 20 hours of training in community
130	association disputes. In order to be certified by the
131	department, any mediator must also be certified by the Florida
132	Supreme Court. The department may conduct the training and
133	certification program within the department or may contract with
134	an outside vendor to perform the training or certification. The
135	expenses of operating the training and certification and
136	training program shall be paid by the moneys and filing fees
137	generated by the arbitration of recall and election disputes and
138	by the mediation of those disputes referred to in this
139	subsection and by the training fees.
140	(3)  The department shall develop an education program to
141	assist homeowners, associations, board members, and managers in
142	understanding and increasing awareness of the operation of
143	homeowners' associations pursuant to this chapter and in
144	understanding the use of alternative dispute resolution
145	techniques in resolving disputes between parcel owners and
146	associations or between owners. Such education program may
147	include the development of pamphlets and other written
148	instructional guides, the holding of classes and meetings by
149	department employees or outside vendors, as the department
150	determines, and the creation and maintenance of a website
151	containing instructional materials. The expenses of operating
152	the education program shall be initially paid by the moneys and
153	filing fees generated by the arbitration of recall and election
154	disputes and by the mediation of those disputes referred to in
155	this subsection.
156	Section 4.  Paragraph (l) of subsection (2) of section
157	718.112, Florida Statutes, is amended to read:
158	718.112  Bylaws.--
159	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
160	following and, if they do not do so, shall be deemed to include
161	the following:
162	(l)  Certificate of compliance.--There shall be a provision
163	that a certificate of compliance from a licensed electrical
164	contractor or electrician may be accepted by the association's
165	board as evidence of compliance of the condominium units with
166	the applicable fire and life safety code. Notwithstanding the
167	provisions of chapter 633 or of any other code, statute,
168	ordinance, administrative rule, or regulation, or any
169	interpretation of the foregoing, an association, condominium, or
170	unit owner is not obligated to retrofit the common elements or
171	units of a residential condominium with a fire sprinkler system
172	or other engineered lifesafety system in a building that has
173	been certified for occupancy by the applicable governmental
174	entity, if the unit owners have voted to forego such
175	retrofitting and engineered lifesafety system by the affirmative
176	vote of two-thirds of all voting interests in the affected
177	condominium. However, a condominium association may not vote to
178	forego the retrofitting with a fire sprinkler system of common
179	areas in a high-rise building. For purposes of this subsection,
180	the term "high-rise building" means a building that is greater
181	than 75 feet in height where the building height is measured
182	from the lowest level of fire department access to the floor of
183	the highest occupiable story. For purposes of this subsection,
184	the term "common areas" means any enclosed hallway, corridor,
185	lobby, stairwell, or entryway. In no event shall the local
186	authority having jurisdiction require completion of retrofitting
187	of common areas with a sprinkler system before the end of 2020
188	2014.
189	1.  A vote to forego retrofitting may be obtained by
190	limited proxy or by a ballot personally cast at a duly called
191	membership meeting, or by execution of a written consent by the
192	member, and shall be effective upon the recording of a
193	certificate attesting to such vote in the public records of the
194	county where the condominium is located. The association shall
195	mail, hand deliver, or electronically transmit to each unit
196	owner written notice at least 14 days prior to such membership
197	meeting in which the vote to forego retrofitting of the required
198	fire sprinkler system is to take place. Within 30 days after the
199	association's opt-out vote, notice of the results of the opt-out
200	vote shall be mailed, hand delivered, or electronically
201	transmitted to all unit owners. Evidence of compliance with this
202	30-day notice shall be made by an affidavit executed by the
203	person providing the notice and filed among the official records
204	of the association. After such notice is provided to each owner,
205	a copy of such notice shall be provided by the current owner to
206	a new owner prior to closing and shall be provided by a unit
207	owner to a renter prior to signing a lease.
208	2.  As part of the information collected annually from
209	condominiums, the division shall require condominium
210	associations to report the membership vote and recording of a
211	certificate under this subsection and, if retrofitting has been
212	undertaken, the per-unit cost of such work. The division shall
213	annually report to the Division of State Fire Marshal of the
214	Department of Financial Services the number of condominiums that
215	have elected to forego retrofitting.
216	Section 5.  Section 712.11, Florida Statutes, is created to
217	read:
218	712.11  Covenants and restrictions.--A homeowners'
219	association that is not otherwise subject to chapter 720 may use
220	the procedures provided in ss. 720.403-720.407 to revive a
221	declaration of covenants and restrictions that has been
222	extinguished by this chapter entitled Marketable Record Titles
223	to Real Property.
224	Section 6.  This act shall take effect upon becoming a law.

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