Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2062
Barcode 402878
CHAMBER ACTION
Senate House
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11 The Committee on Regulated Industries (Aronberg) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 On page 1, line 26, through
16 page 4, line 25, delete those lines
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18 and insert:
19 Section 1. Section 718.1265, Florida Statutes, is
20 created to read:
21 718.1265 Association emergency powers.--
22 (1) To the extent allowed by law and unless
23 specifically prohibited by the declaration, the articles, or
24 the bylaws of an association, the association may, in response
25 to a state of emergency declared in accordance with s.
26 252.36(2) or a mandatory evacuation order issued by civil or
27 law enforcement authorities for the locale in which the
28 condominium is located, exercise the power to:
29 (a) Conduct board meetings and membership meetings
30 with notice given as is practicable. Such notice may be given
31 in any practicable manner, including publication, radio, U.S.
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 Mail, the Internet, public service announcements, conspicuous
2 posting on the condominium property, or some other means the
3 board deems reasonable under the circumstances. Notice of
4 board decisions also may be communicated as provided in this
5 paragraph;
6 (b) Cancel and reschedule any association meeting;
7 (c) Name as assistant officers persons who are not
8 directors, which assistant officers shall have the same
9 authority as the executive officers to whom they are assistant
10 during the state of emergency, to accommodate the incapacity
11 or unavailability of any officer of the association;
12 (d) Relocate the association's principal office or
13 designate alternative principal offices;
14 (e) Enter into agreements with local counties or
15 municipalities to assist with debris removal.
16 (2) Consistent with the standards of s. 617.0830, the
17 association may:
18 (a) Implement a disaster plan, including, but not
19 limited to, shutting down or off elevators, electricity,
20 water, sewer, security systems, or air conditioners;
21 (b) Declare any portion of the condominium property
22 unavailable for entry or occupancy by unit owners, family
23 members, tenants, guests, agents, or invitees in order to
24 protect the health, safety, or welfare of such persons;
25 (c) Order the evacuation of the condominium property
26 in the event of a mandatory evacuation order in the locale in
27 which the condominium is located. If any unit owner or other
28 occupant of a condominium fails or refuses to evacuate the
29 condominium property upon such an order, the association is
30 immune from liability for injury to persons or property
31 arising from such a refusal;
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2062
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1 (d) Determine whether the condominium property can be
2 safely inhabited or occupied. However, such determination is
3 not conclusive as to any determination of habitability
4 pursuant to the declaration.
5 (3) To the extent allowed by law and unless
6 specifically prohibited by the declaration, the articles, or
7 the bylaws of an association, and consistent with the
8 provisions of s. 617.0830, the association may, in response to
9 damage caused by an event for which a state of emergency is
10 declared in accordance with s. 252.36(2) in the locale in
11 which the condominium is located, exercise the power to:
12 (a) Mitigate further damage, including taking action
13 to prevent or mitigate the spread of fungus, including but not
14 limited to mold, or mildew, by removing and disposing of wet
15 drywall, insulation, carpet, cabinetry, or other fixtures,
16 even if the unit owner is obligated by the declaration or law
17 to insure or replace those fixtures and to remove personal
18 property from a unit;
19 (b) Contract, on behalf of unit owners and with unit
20 owners being responsible for reimbursing the association, for
21 items or services for which the owners are otherwise
22 responsible, but which may be necessary to prevent further
23 damage. Without limitation, such items or services may include
24 the drying of units, boarding of broken windows or doors, and
25 replacement of damaged air conditioners or air handlers to
26 provide climate control in the units or other portions of the
27 property;
28 (c) Levy special assessments; or
29 (d) Borrow money and pledge association assets as
30 collateral to fund emergency repairs and carry out the duties
31 of the association when operating funds are insufficient,
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2062
Barcode 402878
1 without unit owner approval. This paragraph does not limit the
2 general authority of the association to borrow money, which
3 may be exercised by the board pursuant to the declaration,
4 articles, or bylaws.
5 (4) Use of the special powers of the association
6 authorized under this section is limited to those times and
7 circumstances in which such use is reasonably necessary to
8 protect the health, safety, and welfare of the association,
9 the unit owners, their family members, tenants, guests,
10 agents, or invitees and reasonably necessary to mitigate
11 further damage and make emergency repairs.
12 Section 2. Paragraphs (f) and (l) of subsection (2) of
13 section 718.112, Florida Statutes, are amended to read:
14 718.112 Bylaws.--
15 (2) REQUIRED PROVISIONS.--The bylaws shall provide for
16 the following and, if they do not do so, shall be deemed to
17 include the following:
18 (f) Annual budget.--
19 1. The proposed annual budget of common expenses shall
20 be detailed and shall show the amounts budgeted by accounts
21 and expense classifications, including, if applicable, but not
22 limited to, those expenses listed in s. 718.504(21). A
23 multicondominium association shall adopt a separate budget of
24 common expenses for each condominium the association operates
25 and shall adopt a separate budget of common expenses for the
26 association. In addition, if the association maintains limited
27 common elements with the cost to be shared only by those
28 entitled to use the limited common elements as provided for in
29 s. 718.113(1), the budget or a schedule attached thereto shall
30 show amounts budgeted therefor. If, after turnover of control
31 of the association to the unit owners, any of the expenses
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2062
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1 listed in s. 718.504(21) are not applicable, they need not be
2 listed.
3 2. In addition to annual operating expenses, the
4 budget shall include reserve accounts for capital expenditures
5 and deferred maintenance. These accounts shall include, but
6 are not limited to, roof replacement, building painting, and
7 pavement resurfacing, regardless of the amount of deferred
8 maintenance expense or replacement cost, and for any other
9 item for which the deferred maintenance expense or replacement
10 cost exceeds $10,000. The amount to be reserved shall be
11 computed by means of a formula which is based upon estimated
12 remaining useful life and estimated replacement cost or
13 deferred maintenance expense of each reserve item. The
14 association may adjust replacement reserve assessments
15 annually to take into account any changes in estimates or
16 extension of the useful life of a reserve item caused by
17 deferred maintenance. This subsection does not apply to an
18 adopted budget in which the members of an association have
19 determined, by a majority vote at a duly called meeting of the
20 association, to provide no reserves or less reserves than
21 required by this subsection. However, prior to turnover of
22 control of an association by a developer to unit owners other
23 than a developer pursuant to s. 718.301, the developer may
24 vote to waive the reserves or reduce the funding of reserves
25 for the first 2 fiscal years of the association's operation,
26 beginning with the fiscal year in which the initial
27 declaration is recorded, after which time reserves may be
28 waived or reduced only upon the vote of a majority of all
29 nondeveloper voting interests voting in person or by limited
30 proxy at a duly called meeting of the association. If a
31 meeting of the unit owners has been called to determine
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2062
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1 whether to waive or reduce the funding of reserves, and no
2 such result is achieved or a quorum is not attained, the
3 reserves as included in the budget shall go into effect. After
4 the turnover, the developer may vote its voting interest to
5 waive or reduce the funding of reserves.
6 3. Reserve funds and any interest accruing thereon
7 shall remain in the reserve account or accounts, and shall be
8 used only for authorized reserve expenditures unless their use
9 for other purposes is approved in advance by a majority vote
10 at a duly called meeting of the association. Prior to turnover
11 of control of an association by a developer to unit owners
12 other than the developer pursuant to s. 718.301, the
13 developer-controlled association shall not vote to use
14 reserves for purposes other than that for which they were
15 intended without the approval of a majority of all
16 nondeveloper voting interests, voting in person or by limited
17 proxy at a duly called meeting of the association.
18 4. The only voting interests which are eligible to
19 vote on questions that involve waiving or reducing the funding
20 of reserves, or using existing reserve funds for purposes
21 other than purposes for which the reserves were intended, are
22 the voting interests of the units subject to assessment to
23 fund the reserves in question.
24 5. In addition to reserves required by this paragraph,
25 the association may establish a reserve category for uninsured
26 casualty losses, based upon a formula the board considers
27 appropriate.
28 (l) Certificate of compliance.--There shall be a
29 provision that a certificate of compliance from a licensed
30 electrical contractor or electrician may be accepted by the
31 association's board as evidence of compliance of the
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2062
Barcode 402878
1 condominium units with the applicable fire and life safety
2 code. Notwithstanding the provisions of chapter 633 or of any
3 other code, statute, ordinance, administrative rule, or
4 regulation, or any interpretation of the foregoing, an
5 association, condominium, or unit owner is not obligated to
6 retrofit the common elements or units of a residential
7 condominium with a fire sprinkler system or other engineered
8 lifesafety system in a building that has been certified for
9 occupancy by the applicable governmental entity, if the unit
10 owners have voted to forego such retrofitting and engineered
11 lifesafety system by the affirmative vote of two-thirds of all
12 voting interests in the affected condominium. However, a
13 condominium association may not vote to forego the
14 retrofitting with a fire sprinkler system of common areas in a
15 high-rise building. For purposes of this subsection, the term
16 "high-rise building" means a building that is greater than 75
17 feet in height where the building height is measured from the
18 lowest level of fire department access to the floor of the
19 highest occupiable story. For purposes of this subsection, the
20 term "common areas" means any enclosed hallway, corridor,
21 lobby, stairwell, or entryway. In no event shall the local
22 authority having jurisdiction require completion of
23 retrofitting of common areas with a sprinkler system before
24 the end of 2020 2014.
25 1. A vote to forego retrofitting may be obtained by
26 limited proxy or by a ballot personally cast at a duly called
27 membership meeting, or by execution of a written consent by
28 the member, and shall be effective upon the recording of a
29 certificate attesting to such vote in the public records of
30 the county where the condominium is located. The association
31 shall mail, hand deliver, or electronically transmit to each
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 unit owner written notice at least 14 days prior to such
2 membership meeting in which the vote to forego retrofitting of
3 the required fire sprinkler system is to take place. Within 30
4 days after the association's opt-out vote, notice of the
5 results of the opt-out vote shall be mailed, hand delivered,
6 or electronically transmitted to all unit owners. Evidence of
7 compliance with this 30-day notice shall be made by an
8 affidavit executed by the person providing the notice and
9 filed among the official records of the association. After
10 such notice is provided to each owner, a copy of such notice
11 shall be provided by the current owner to a new owner prior to
12 closing and shall be provided by a unit owner to a renter
13 prior to signing a lease.
14 2. As part of the information collected annually from
15 condominiums, the division shall require condominium
16 associations to report the membership vote and recording of a
17 certificate under this subsection and, if retrofitting has
18 been undertaken, the per-unit cost of such work. The division
19 shall annually report to the Division of State Fire Marshal of
20 the Department of Financial Services the number of
21 condominiums that have elected to forego retrofitting.
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24 ================ T I T L E A M E N D M E N T ===============
25 And the title is amended as follows:
26 On page 1, lines 3-9, delete those lines
27
28 and insert:
29 creating s. 718.1265, F.S.; authorizing a
30 condominium association board to exercise
31 specified emergency powers during an emergency;
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 providing limitations; amending s. 718.112,
2 F.S.; providing for a condominium association
3 to establish casualty reserve accounts;
4 extending a period in which
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