HB 1227

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	718.110, F.S.; requiring notice of a proposed amendment to
4	the declaration to be sent to the unit owner by certified
5	mail; amending s. 718.111, F.S.; restricting a condominium
6	association from waiving a financial report for more than
7	2 consecutive years; providing duties for condominium
8	boards of administration in the event of certain
9	casualties; providing that certain assessments may be made
10	against unit owners under certain conditions; providing
11	condominium association guidelines for the designation of
12	disabled parking spaces; amending s. 718.112, F.S.;
13	authorizing the board or membership to determine the
14	composition of the board of administration under certain
15	circumstances; requiring the board to respond to certain
16	inquiries by certified mail, return receipt requested;
17	removing a provision allowing a condominium association to
18	only respond once every 30 days to unit owner inquiries;
19	providing that no action shall be taken or resolution made
20	without an open meeting of the board; requiring the board
21	to address agenda items proposed by a petition of 20
22	percent of the unit owners; revising notice procedures;
23	revising the terms of office and reelection of the members
24	of a condominium association board; providing that certain
25	persons providing notice of a meeting must provide an
26	affidavit affirming that the notices were delivered;
27	authorizing the association's representative to provide
28	certain notices; removing a provision allowing an
29	association to print or duplicate certain information
30	sheets on both sides of the paper; revising procedures
31	relating to the filling of a vacancy on the board;
32	removing a provision allowing an association to provide
33	for different voting and election procedures in its
34	bylaws; authorizing unit owners the right to have items
35	placed on the agenda of the annual meeting and to be voted
36	upon under certain conditions; requiring a vote to provide
37	for no reserves or percentage of reserves to be made at
38	certain times; authorizing the association to use reserve
39	funds for nonscheduled purposes under certain conditions;
40	requiring that assessments be made against units on a
41	quarter-annual or more frequent basis; providing that
42	certain provisions shall not preclude the right of an
43	association to accelerate assessments of certain owners
44	delinquent in payment of common expenses; providing that
45	accelerated assessments shall be due and payable after the
46	claim of lien is filed; amending s. 718.113, F.S.;
47	requiring boards of administration to adopt or restate
48	hurricane shutter specifications yearly at the annual
49	meeting; authorizing the board to install hurricane
50	protection that complies with the applicable building
51	code; requiring the board to have the condominium
52	buildings periodically inspected for structural and
53	electrical soundness by a professional engineer or
54	professional architect registered in the state; requiring
55	the inspector to provide a report to the association;
56	amending s. 718.115, F.S.; providing that a bulk contract
57	for basic service may be deemed a common expense; amending
58	s. 718.116, F.S.; removing provisions limiting the
59	liability of a first mortgagee or its successor or
60	assignees who acquire title to a unit by foreclosure or by
61	deed; revising the order in which payments received by the
62	association must be applied; restricting certain liens
63	from being filed on a condominium parcel until 30 days
64	after service of a notice of intent to file the lien;
65	requiring that itemized expenses and a payment schedule be
66	included in certain special assessments; providing that
67	funds collected pursuant to a special assessment shall not
68	be commingled with any other association funds; creating
69	s. 718.1223, F.S.; requiring any complaint of abuse filed
70	with the Division of Florida Land Sales, Condominiums, and
71	Mobile Homes shall immediately be investigated by the
72	division; requiring the division to institute enforcement
73	proceedings under certain circumstances; defining the term
74	"abuse" for purposes of the section; creating s. 718.1224,
75	F.S.; prohibiting certain lawsuits arising from unit
76	owners' appearances and presentations before a
77	governmental entity; providing a definition; amending s.
78	718.1255, F.S.; requiring the division to promptly refer
79	certain cases to mediation; providing that an arbitrator
80	may refer a dispute to mediation at any time; amending s.
81	718.302, F.S.; conforming provisions; amending s.
82	718.3026, F.S.; providing that certain contracts between a
83	service provider and an association shall not be for a
84	term in excess of 3 years and shall not contain an
85	automatic renewal clause; requiring that certain contracts
86	for construction must have the approval of an attorney
87	hired by the association; amending s. 718.303, F.S.;
88	requiring that persons subject to certain actions be
89	notified of their violation in a certain manner; providing
90	a timeframe in which the person must respond; amending s.
91	718.501, F.S.; requiring the division to prepare and
92	disseminate a prospectus and other information for use by
93	owners, purchasers, lessees, and developers of residential
94	condominiums; providing that the board member training
95	provided by the division shall be provided in conjunction
96	with recommendations by the ombudsman; amending s.
97	718.5011, F.S.; restricting location of the Office of the
98	Condominium Ombudsman; providing that the ombudsman shall
99	exercise his or her policymaking and other functions
100	independently of the Department of Business and
101	Professional Regulation and without approval or control of
102	the department; requiring the department to render
103	administrative support for certain matters; requiring that
104	revenues collected by the department for the Office of the
105	Condominium Ombudsman be deposited in a separate fund or
106	account; amending s. 718.5012, F.S.; providing that the
107	division shall process the ombudsman's recommendations and
108	petitions in an expedited manner and defer to his or her
109	findings; providing the ombudsman with the power to order
110	meetings between certain parties; authorizing the
111	ombudsman to make recommendations to the division to
112	pursue enforcement action in circuit court on behalf of a
113	class of unit owners, lessees, or purchasers; authorizing
114	the ombudsman to order that any aspect of an association
115	election be conducted by an election monitor; authorizing
116	the ombudsman to order an association to implement certain
117	remedies; authorizing the ombudsman to order certain
118	persons to cease and desist from unlawful practices;
119	repealing s. 718.50151, F.S., to abolish the Advisory
120	Council on Condominiums and its functions; amending s.
121	719.1055, F.S.; providing that amendments restricting
122	cooperative owners' rights relating to the rental of units
123	apply only to certain unit owners; creating s. 720.4016,
124	F.S.; creating the Advisory Council on Mandated Properties
125	to be located within the division; providing membership;
126	providing that members of the council shall serve without
127	compensation but are entitled to receive per diem and
128	travel expenses; providing that vacancies shall be filled
129	in the same manner as original appointments; providing an
130	effective date.
131
132	Be It Enacted by the Legislature of the State of Florida:
133
134	Section 1.  Paragraph (d) is added to subsection (1) of
135	section 718.110, Florida Statutes, to read:
136	718.110  Amendment of declaration; correction of error or
137	omission in declaration by circuit court.--
138	(1)
139	(d)  Notice of a proposed amendment to the declaration
140	shall be sent to the unit owner by certified mail.
141	Section 2.  Paragraph (d) of subsection (13) of section
142	718.111, Florida Statutes, is amended, and subsections (15) and
143	(16) are added to that section, to read:
144	718.111  The association.--
145	(13)  FINANCIAL REPORTING.--Within 90 days after the end of
146	the fiscal year, or annually on a date provided in the bylaws,
147	the association shall prepare and complete, or contract for the
148	preparation and completion of, a financial report for the
149	preceding fiscal year. Within 21 days after the final financial
150	report is completed by the association or received from the
151	third party, but not later than 120 days after the end of the
152	fiscal year or other date as provided in the bylaws, the
153	association shall mail to each unit owner at the address last
154	furnished to the association by the unit owner, or hand deliver
155	to each unit owner, a copy of the financial report or a notice
156	that a copy of the financial report will be mailed or hand
157	delivered to the unit owner, without charge, upon receipt of a
158	written request from the unit owner. The division shall adopt
159	rules setting forth uniform accounting principles and standards
160	to be used by all associations and shall adopt rules addressing
161	financial reporting requirements for multicondominium
162	associations. In adopting such rules, the division shall
163	consider the number of members and annual revenues of an
164	association. Financial reports shall be prepared as follows:
165	(d)  If approved by a majority of the voting interests
166	present at a properly called meeting of the association, an
167	association may prepare or cause to be prepared:
168	1.  A report of cash receipts and expenditures in lieu of a
169	compiled, reviewed, or audited financial statement;
170	2.  A report of cash receipts and expenditures or a
171	compiled financial statement in lieu of a reviewed or audited
172	financial statement; or
173	3.  A report of cash receipts and expenditures, a compiled
174	financial statement, or a reviewed financial statement in lieu
175	of an audited financial statement.
176
177	Such meeting and approval must occur prior to the end of the
178	fiscal year and is effective only for the fiscal year in which
179	the vote is taken. With respect to an association to which the
180	developer has not turned over control of the association, all
181	unit owners, including the developer, may vote on issues related
182	to the preparation of financial reports for the first 2 fiscal
183	years of the association's operation, beginning with the fiscal
184	year in which the declaration is recorded. Thereafter, all unit
185	owners except the developer may vote on such issues until
186	control is turned over to the association by the developer.
187	Under no circumstances may an association or board of
188	administration waive the financial reporting requirements of
189	this section for more than 2 consecutive years.
190	(15)  RECONSTRUCTION AFTER CASUALTY.--
191	(a)  In the event of a casualty whereby the condominium
192	property and units are damaged, the board of administration
193	shall obtain reliable and detailed estimates of the cost
194	necessary to repair and replace the damaged property to
195	substantially the same condition existing immediately prior to
196	the casualty and substantially in accordance with the original
197	plans and specifications of the condominium as soon as possible
198	and not later than 60 days after the casualty. If the damage to
199	the condominium property exceeds 50 percent of the property's
200	value, the condominium may be terminated unless, within 90 days
201	after the casualty, 75 percent of the unit owners agree to
202	reconstruction and repair.
203	(b)  The board of administration shall engage the services
204	of a registered architect and knowledgeable construction
205	specialists to prepare any necessary plans and specifications
206	and shall receive and approve bids for reconstruction, shall
207	execute all necessary contracts for restoration, and shall
208	arrange for disbursement of construction funds, the approval of
209	work, and all other matters pertaining to the repairs and
210	reconstruction required.
211	(c)  At any time during reconstruction and repair, or if
212	the proceeds of the hazard insurance policy maintained by the
213	association pursuant to paragraph (11)(b) are insufficient to
214	pay the estimated costs of reconstruction, assessments shall be
215	made against all unit owners according to their share of the
216	common elements and expenses as set forth in the declaration of
217	condominium.
218	(d)  Assessments shall be made against unit owners for
219	damage to their units according to the cost of reconstruction or
220	repair of their respective units. The assessments shall be
221	levied and collected as all other assessments are provided for
222	in this chapter.
223	(16)  GUEST DISABLED PARKING SPACES.--Where guest disabled
224	parking is provided, the guest disabled parking spaces shall be
225	configured and signed pursuant to s. 553.5041. The association
226	may increase the number of guest disabled parking spaces, if
227	needed. Residents with disabilities shall not park in a disabled
228	guest space unless their assigned parking space is in use
229	illegally. Resident disabled parking shall be assigned by the
230	board of directors from the spaces made available by the
231	association pursuant to state and federal fair housing law. When
232	a resident has two vehicles, one equipped with a lift, the
233	association shall assign a second space that satisfies the needs
234	of the vehicle and lift operation if additional parking space is
235	available and unassigned.
236	Section 3.  Paragraphs (a), (b), (c), (d), (f), and (g) of
237	subsection (2) of section 718.112, Florida Statutes, are amended
238	to read:
239	718.112  Bylaws.--
240	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
241	following and, if they do not do so, shall be deemed to include
242	the following:
243	(a)  Administration.--
244	1.  The form of administration of the association shall be
245	described indicating the title of the officers and board of
246	administration and specifying the powers, duties, manner of
247	selection and removal, and compensation, if any, of officers and
248	boards. In the absence of such a provision, or determination by
249	the board or membership, the board of administration shall be
250	composed of five members, except in the case of a condominium
251	which has five or fewer units, in which case in a not-for-profit
252	corporation the board shall consist of not fewer than three
253	members. In the absence of provisions to the contrary in the
254	bylaws, the board of administration shall have a president, a
255	secretary, and a treasurer, who shall perform the duties of such
256	officers customarily performed by officers of corporations.
257	Unless prohibited in the bylaws, the board of administration may
258	appoint other officers and grant them the duties it deems
259	appropriate. Unless otherwise provided in the bylaws, the
260	officers shall serve without compensation and at the pleasure of
261	the board of administration. Unless otherwise provided in the
262	bylaws, the members of the board shall serve without
263	compensation.
264	2.  When a unit owner files a written inquiry by certified
265	mail with the board of administration, the board shall respond
266	in writing by certified mail, return receipt requested, to the
267	unit owner within 30 days of receipt of the inquiry. The board's
268	response shall either give a substantive response to the
269	inquirer, notify the inquirer that a legal opinion has been
270	requested, or notify the inquirer that advice has been requested
271	from the division. If the board requests advice from the
272	division, the board shall, within 10 days of its receipt of the
273	advice, provide in writing a substantive response to the
274	inquirer. If a legal opinion is requested, the board shall,
275	within 60 days after the receipt of the inquiry, provide in
276	writing a substantive response to the inquiry. The failure to
277	provide a substantive response to the inquiry as provided herein
278	precludes the board from recovering attorney's fees and costs in
279	any subsequent litigation, administrative proceeding, or
280	arbitration arising out of the inquiry. The association may
281	through its board of administration adopt reasonable rules and
282	regulations regarding the frequency and manner of responding to
283	unit owner inquiries, one of which may be that the association
284	is only obligated to respond to one written inquiry per unit in
285	any given 30-day period. In such a case, any additional inquiry
286	or inquiries must be responded to in the subsequent 30-day
287	period, or periods, as applicable.
288	(b)  Quorum; voting requirements; proxies.--
289	1.  Unless a lower number is provided in the bylaws, the
290	percentage of voting interests required to constitute a quorum
291	at a meeting of the members shall be a majority of the voting
292	interests. Unless otherwise provided in this chapter or in the
293	declaration, articles of incorporation, or bylaws, and except as
294	provided in subparagraph (d)3., decisions shall be made by
295	owners of a majority of the voting interests represented at a
296	meeting at which a quorum is present.
297	2.  Except as specifically otherwise provided herein, after
298	January 1, 1992, unit owners may not vote by general proxy, but
299	may vote by limited proxies substantially conforming to a
300	limited proxy form adopted by the division. Limited proxies and
301	general proxies may be used to establish a quorum. Limited
302	proxies shall be used for votes taken to waive or reduce
303	reserves in accordance with subparagraph (f)2.; for votes taken
304	to waive the financial reporting requirements of s. 718.111(13);
305	for votes taken to amend the declaration pursuant to s. 718.110;
306	for votes taken to amend the articles of incorporation or bylaws
307	pursuant to this section; and for any other matter for which
308	this chapter requires or permits a vote of the unit owners.
309	Except as provided in paragraph (d), after January 1, 1992, No
310	proxy, limited or general, shall be used in the election of
311	board members. General proxies may be used for other matters for
312	which limited proxies are not required, and may also be used in
313	voting for nonsubstantive changes to items for which a limited
314	proxy is required and given. Notwithstanding the provisions of
315	this subparagraph, unit owners may vote in person at unit owner
316	meetings. Nothing contained herein shall limit the use of
317	general proxies or require the use of limited proxies for any
318	agenda item or election at any meeting of a timeshare
319	condominium association.
320	3.  Any proxy given shall be effective only for the
321	specific meeting for which originally given and any lawfully
322	adjourned meetings thereof. In no event shall any proxy be valid
323	for a period longer than 90 days after the date of the first
324	meeting for which it was given. Every proxy is revocable at any
325	time at the pleasure of the unit owner executing it.
326	4.  A member of the board of administration or a committee
327	may submit in writing his or her agreement or disagreement with
328	any action taken at a meeting that the member did not attend.
329	This agreement or disagreement may not be used as a vote for or
330	against the action taken and may not be used for the purposes of
331	creating a quorum.
332	5.  When any of the board or committee members meet by
333	telephone conference, those board or committee members attending
334	by telephone conference may be counted toward obtaining a quorum
335	and may vote by telephone. A telephone speaker must be used so
336	that the conversation of those board or committee members
337	attending by telephone may be heard by the board or committee
338	members attending in person as well as by any unit owners
339	present at a meeting.
340	(c)  Board of administration meetings.--Meetings of the
341	board of administration at which a quorum of the members is
342	present shall be open to all unit owners. No action shall be
343	taken or resolution made without an open meeting of the board of
344	administration. The board of administration shall address agenda
345	items proposed by a petition of 20 percent of the unit owners.
346	Any unit owner may tape record or videotape meetings of the
347	board of administration. The right to attend such meetings
348	includes the right to speak at such meetings with reference to
349	all designated agenda items. The division shall adopt reasonable
350	rules governing the tape recording and videotaping of the
351	meeting. The association may adopt written reasonable rules
352	governing the frequency, duration, and manner of unit owner
353	statements. Adequate notice of all meetings, which notice shall
354	specifically incorporate an identification of agenda items,
355	shall be posted conspicuously on the condominium property at
356	least 48 continuous hours preceding the meeting except in an
357	emergency. Any item not included on the notice may be taken up
358	on an emergency basis by at least a majority plus one of the
359	members of the board or by a petition of 20 percent of the unit
360	owners. Such emergency action shall be noticed and ratified at
361	the next regular meeting of the board. However, written notice
362	of any meeting at which nonemergency special assessments, or at
363	which amendment to rules regarding unit use, will be considered
364	shall be mailed, delivered, or electronically transmitted to the
365	unit owners and posted conspicuously on the condominium property
366	not less than 14 days prior to the meeting. Evidence of
367	compliance with this 14-day notice shall be made by an affidavit
368	executed by the person providing the notice and filed among the
369	official records of the association. Upon notice to the unit
370	owners, the board shall by duly adopted rule designate a
371	specific location on the condominium property or association
372	property upon which all notices of board meetings shall be
373	posted. If there is no condominium property or association
374	property upon which notices can be posted, notices of board
375	meetings shall be mailed, delivered, or electronically
376	transmitted at least 14 days before the meeting to the owner of
377	each unit. In lieu of or in addition to the physical posting of
378	notice of any meeting of the board of administration on the
379	condominium property, the association may, by reasonable rule,
380	adopt a procedure for conspicuously posting and repeatedly
381	broadcasting the notice and the agenda on a closed-circuit cable
382	television system serving the condominium association. However,
383	if broadcast notice is used in lieu of a notice posted
384	physically on the condominium property, the notice and agenda
385	must be broadcast at least four times every broadcast hour of
386	each day that a posted notice is otherwise required under this
387	section. When broadcast notice is provided, the notice and
388	agenda must be broadcast in a manner and for a sufficient
389	continuous length of time so as to allow an average reader to
390	observe the notice and read and comprehend the entire content of
391	the notice and the agenda. Notice of any meeting in which
392	regular or special assessments against unit owners are to be
393	considered for any reason shall specifically contain a statement
394	that assessments will be considered and the nature, cost, and
395	breakdown of any such assessments. Meetings of a committee to
396	take final action on behalf of the board or make recommendations
397	to the board regarding the association budget are subject to the
398	provisions of this paragraph. Meetings of a committee that does
399	not take final action on behalf of the board or make
400	recommendations to the board regarding the association budget
401	are subject to the provisions of this section, unless those
402	meetings are exempted from this section by the bylaws of the
403	association. Notwithstanding any other law, the requirement that
404	board meetings and committee meetings be open to the unit owners
405	is inapplicable to meetings between the board or a committee and
406	the association's attorney, with respect to proposed or pending
407	litigation, when the meeting is held for the purpose of seeking
408	or rendering legal advice.
409	(d)  Unit owner meetings.--
410	1.  There shall be an annual meeting of the unit owners.
411	Unless the bylaws provide otherwise, a vacancy on the board
412	caused by the expiration of a director's term shall be filled by
413	electing a new board member, and the election shall be by secret
414	ballot; however, if the number of vacancies equals or exceeds
415	the number of candidates, no election is required. If there is
416	no provision in the bylaws for terms of the members of the
417	board, the terms of all members of the board shall expire upon
418	the election of their successors at the annual meeting. A unit
419	owner may not serve on the board as a director for more than two
420	terms or longer than 4 years. A member may not serve as an
421	officer of the corporation for more that one term. Coowners of a
422	unit may not serve as members of the board of administration
423	during the same fiscal year. Any unit owner desiring to be a
424	candidate for board membership shall comply with subparagraph 3.
425	A person who has been convicted of any felony by any court of
426	record in the United States and who has not had his or her right
427	to vote restored pursuant to law in the jurisdiction of his or
428	her residence is not eligible for board membership. The validity
429	of an action by the board is not affected if it is later
430	determined that a member of the board is ineligible for board
431	membership due to having been convicted of a felony.
432	2.  The bylaws shall provide the method of calling meetings
433	of unit owners, including annual meetings. Written notice, which
434	notice must include an agenda, shall be mailed, hand delivered,
435	or electronically transmitted to each unit owner at least 14
436	days prior to the annual meeting and shall be posted in a
437	conspicuous place on the condominium property at least 14
438	continuous days preceding the annual meeting. Upon notice to the
439	unit owners, the board shall by duly adopted rule designate a
440	specific location on the condominium property or association
441	property upon which all notices of unit owner meetings shall be
442	posted; however, if there is no condominium property or
443	association property upon which notices can be posted, this
444	requirement does not apply. In lieu of or in addition to the
445	physical posting of notice of any meeting of the unit owners on
446	the condominium property, the association may, by reasonable
447	rule, adopt a procedure for conspicuously posting and repeatedly
448	broadcasting the notice and the agenda on a closed-circuit cable
449	television system serving the condominium association. However,
450	if broadcast notice is used in lieu of a notice posted
451	physically on the condominium property, the notice and agenda
452	must be broadcast at least four times every broadcast hour of
453	each day that a posted notice is otherwise required under this
454	section. When broadcast notice is provided, the notice and
455	agenda must be broadcast in a manner and for a sufficient
456	continuous length of time so as to allow an average reader to
457	observe the notice and read and comprehend the entire content of
458	the notice and the agenda. Unless a unit owner waives in writing
459	the right to receive notice of the annual meeting, such notice
460	shall be hand delivered, mailed, or electronically transmitted
461	to each unit owner. Notice for meetings and notice for all other
462	purposes shall be mailed to each unit owner at the address last
463	furnished to the association by the unit owner, or hand
464	delivered to each unit owner. However, if a unit is owned by
465	more than one person, the association shall provide notice, for
466	meetings and all other purposes, to that one address which the
467	developer initially identifies for that purpose and thereafter
468	as one or more of the owners of the unit shall so advise the
469	association in writing, or if no address is given or the owners
470	of the unit do not agree, to the address provided on the deed of
471	record. An officer of the association, or the manager or other
472	person providing the first notice of the association meeting,
473	and the second notice as set forth in subparagraph 3., shall
474	provide an affidavit or United States Postal Service certificate
475	of mailing, to be included in the official records of the
476	association affirming that the first and second notices were
477	notice was mailed or hand delivered, in accordance with this
478	provision.
479	3.  The members of the board shall be elected by written
480	ballot or voting machine. Proxies shall in no event be used in
481	electing the board, either in general elections or elections to
482	fill vacancies caused by recall, resignation, or otherwise,
483	unless otherwise provided in this chapter. Not less than 60 days
484	before a scheduled election, the association or its
485	representative shall mail, deliver, or electronically transmit,
486	whether by separate association mailing or included in another
487	association mailing, delivery, or transmission, including
488	regularly published newsletters, to each unit owner entitled to
489	a vote, a first notice of the date of the election. Any unit
490	owner or other eligible person desiring to be a candidate for
491	the board must give written notice to the association or its
492	representative not less than 40 days before a scheduled
493	election. Together with the written notice and agenda as set
494	forth in subparagraph 2., the association or its representative
495	shall mail, deliver, or electronically transmit a second notice
496	of the election to all unit owners entitled to vote therein,
497	together with a ballot which shall list all candidates. Upon
498	request of a candidate, the association or its representative
499	shall include an information sheet, no larger than 81/2 inches
500	by 11 inches, which must be furnished by the candidate not less
501	than 35 days before the election, to be included with the
502	mailing, delivery, or transmission of the ballot, with the costs
503	of mailing, delivery, or electronic transmission and copying to
504	be borne by the association. The association is not liable for
505	the contents of the information sheets prepared by the
506	candidates. In order to reduce costs, the association may print
507	or duplicate the information sheets on both sides of the paper.
508	The division shall by rule establish voting procedures
509	consistent with the provisions contained herein, including rules
510	establishing procedures for giving notice by electronic
511	transmission and rules providing for the secrecy of ballots.
512	Elections shall be decided by a plurality of those ballots cast.
513	There shall be no quorum requirement; however, at least 20
514	percent of the eligible voters must cast a ballot in order to
515	have a valid election of members of the board. No unit owner
516	shall permit any other person to vote his or her ballot, and any
517	such ballots improperly cast shall be deemed invalid, provided
518	any unit owner who violates this provision may be fined by the
519	association in accordance with s. 718.303. A unit owner who
520	needs assistance in casting the ballot for the reasons stated in
521	s. 101.051 may obtain assistance in casting the ballot. The
522	regular election shall occur on the date of the annual meeting.
523	The provisions of this subparagraph shall not apply to timeshare
524	condominium associations. Notwithstanding the provisions of this
525	subparagraph, an election is not required unless more candidates
526	file notices of intent to run or are nominated than board
527	vacancies exist.
528	4.  Any approval by unit owners called for by this chapter
529	or the applicable declaration or bylaws, including, but not
530	limited to, the approval requirement in s. 718.111(8), shall be
531	made at a duly noticed meeting of unit owners and shall be
532	subject to all requirements of this chapter or the applicable
533	condominium documents relating to unit owner decisionmaking,
534	except that unit owners may take action by written agreement,
535	without meetings, on matters for which action by written
536	agreement without meetings is expressly allowed by the
537	applicable bylaws or declaration or any statute that provides
538	for such action.
539	5.  Unit owners may waive notice of specific meetings if
540	allowed by the applicable bylaws or declaration or any statute.
541	If authorized by the bylaws, notice of meetings of the board of
542	administration, unit owner meetings, except unit owner meetings
543	called to recall board members under paragraph (j), and
544	committee meetings may be given by electronic transmission to
545	unit owners who consent to receive notice by electronic
546	transmission.
547	6.  Unit owners shall have the right to participate in
548	meetings of unit owners with reference to all designated agenda
549	items. However, the association may adopt reasonable rules
550	governing the frequency, duration, and manner of unit owner
551	participation.
552	7.  Any unit owner may tape record or videotape a meeting
553	of the unit owners subject to reasonable rules adopted by the
554	division.
555	8.  Unless otherwise provided in the bylaws, any vacancy
556	occurring on the board before the expiration of a term may be
557	filled by the affirmative vote of the majority of the remaining
558	directors, even if the remaining directors constitute less than
559	a quorum, or by the sole remaining director. In the alternative,
560	a board may hold an election to fill the vacancy, in which case
561	the election procedures must conform to the requirements of
562	subparagraph 3. unless the association has opted out of the
563	statutory election process, in which case the bylaws of the
564	association control. Unless otherwise provided in the bylaws, a
565	board member appointed or elected under this section shall fill
566	the vacancy for the unexpired term of the seat being filled.
567	Filling vacancies created by recall is governed by paragraph (j)
568	and rules adopted by the division.
569
570	Notwithstanding subparagraphs (b)2. and (d)3., an association
571	may, by the affirmative vote of a majority of the total voting
572	interests, provide for different voting and election procedures
573	in its bylaws, which vote may be by a proxy specifically
574	delineating the different voting and election procedures. The
575	different voting and election procedures may provide for
576	elections to be conducted by limited or general proxy.
577	9.  Unit owners have the right to have items placed on the
578	agenda of the annual meeting and to be voted upon if a written
579	request is made to the board of administration by 20 percent or
580	more of all voting interests at least 90 days before the date of
581	the annual meeting.
582	(f)  Annual budget.--
583	1.  The proposed annual budget of common expenses shall be
584	detailed and shall show the amounts budgeted by accounts and
585	expense classifications, including, if applicable, but not
586	limited to, those expenses listed in s. 718.504(21). A
587	multicondominium association shall adopt a separate budget of
588	common expenses for each condominium the association operates
589	and shall adopt a separate budget of common expenses for the
590	association. In addition, if the association maintains limited
591	common elements with the cost to be shared only by those
592	entitled to use the limited common elements as provided for in
593	s. 718.113(1), the budget or a schedule attached thereto shall
594	show amounts budgeted therefor. If, after turnover of control of
595	the association to the unit owners, any of the expenses listed
596	in s. 718.504(21) are not applicable, they need not be listed.
597	2.  In addition to annual operating expenses, the budget
598	shall include reserve accounts for capital expenditures and
599	deferred maintenance. These accounts shall include, but are not
600	limited to, roof replacement, building painting, and pavement
601	resurfacing, regardless of the amount of deferred maintenance
602	expense or replacement cost, and for any other item for which
603	the deferred maintenance expense or replacement cost exceeds
604	$10,000. The amount to be reserved shall be computed by means of
605	a formula which is based upon estimated remaining useful life
606	and estimated replacement cost or deferred maintenance expense
607	of each reserve item. The association may adjust replacement
608	reserve assessments annually to take into account any changes in
609	estimates or extension of the useful life of a reserve item
610	caused by deferred maintenance. This subsection does not apply
611	to an adopted budget in which the members of an association have
612	determined, by a majority vote at a duly called meeting of the
613	association, to provide no reserves or less reserves than
614	required by this subsection. However, prior to turnover of
615	control of an association by a developer to unit owners other
616	than a developer pursuant to s. 718.301, the developer may vote
617	to waive the reserves or reduce the funding of reserves for the
618	first 2 fiscal years of the association's operation, beginning
619	with the fiscal year in which the initial declaration is
620	recorded, after which time reserves may be waived or reduced
621	only upon the vote of a majority of all nondeveloper voting
622	interests voting in person or by limited proxy at a duly called
623	meeting of the association. If a meeting of the unit owners has
624	been called to determine whether to waive or reduce the funding
625	of reserves, and no such result is achieved or a quorum is not
626	attained, the reserves as included in the budget shall go into
627	effect. After the turnover, the developer may vote its voting
628	interest to waive or reduce the funding of reserves.
629	3.  Reserve funds and any interest accruing thereon shall
630	remain in the reserve account or accounts, and shall be used
631	only for authorized reserve expenditures unless their use for
632	other purposes is approved in advance by a majority vote at a
633	duly called meeting of the association. Prior to turnover of
634	control of an association by a developer to unit owners other
635	than the developer pursuant to s. 718.301, the developer-
636	controlled association shall not vote to use reserves for
637	purposes other than that for which they were intended without
638	the approval of a majority of all nondeveloper voting interests,
639	voting in person or by limited proxy at a duly called meeting of
640	the association.
641	4.  The only voting interests which are eligible to vote on
642	questions that involve waiving or reducing the funding of
643	reserves, or using existing reserve funds for purposes other
644	than purposes for which the reserves were intended, are the
645	voting interests of the units subject to assessment to fund the
646	reserves in question.
647	5.  A vote to provide for no reserves or percentage of
648	reserves shall be made at the annual meeting of the unit owners
649	called under paragraph (d). The division shall adopt the form
650	for the ballot for no reserves or percentage of reserves.
651	6.  Notwithstanding the provisions of subparagraph 3., the
652	association after turnover of control of the association may, in
653	case of a catastrophic event, use reserve funds for nonscheduled
654	purposes to mitigate further damage to units or common elements
655	or to make the condominium accessible for repairs.
656	(g)  Assessments.--The manner of collecting from the unit
657	owners their shares of the common expenses shall be stated in
658	the bylaws. Assessments shall be made against units on a
659	quarter-annual, or more frequent, basis not less frequently than
660	quarterly in an amount which is not less than that required to
661	provide funds in advance for payment of all of the anticipated
662	current operating expenses and for all of the unpaid operating
663	expenses previously incurred. Nothing in this paragraph shall
664	preclude the right of an association to accelerate assessments
665	of an owner delinquent in payment of common expenses against
666	whom a lien has been filed. Accelerated assessments shall be due
667	and payable after on the date the claim of lien is filed. Such
668	accelerated assessments shall include the amounts due for the
669	remainder of the budget year in which the claim of lien was
670	filed.
671	Section 4.  Subsection (5) of section 718.113, Florida
672	Statutes, is amended, and subsection (6) is added to that
673	section, to read:
674	718.113  Maintenance; limitation upon improvement; display
675	of flag; hurricane shutters.--
676	(5)  Each board of administration shall adopt or, yearly at
677	the annual meeting, restate hurricane shutter specifications for
678	each building within each condominium operated by the
679	association which shall include color, style, and other factors
680	deemed relevant by the board. All specifications adopted by the
681	board shall comply with the applicable building code.
682	Notwithstanding any provision to the contrary in the condominium
683	documents, if approval is required by the documents, a board
684	shall not refuse to approve the installation or replacement of
685	hurricane shutters conforming to the specifications adopted by
686	the board. The board may, subject to the provisions of s.
687	718.3026, and the approval of a majority of voting interests of
688	the condominium, install hurricane shutters or hurricane
689	protection that complies with the applicable building code and
690	may maintain, repair, or replace such approved hurricane
691	shutters, whether on or within common elements, limited common
692	elements, units, or association property. However, where
693	laminated glass or window film architecturally designed to
694	function as hurricane protection which complies with the
695	applicable building code has been installed, the board may not
696	install hurricane shutters. The board may operate shutters
697	installed pursuant to this subsection without permission of the
698	unit owners only where such operation is necessary to preserve
699	and protect the condominium property and association property.
700	The installation, replacement, operation, repair, and
701	maintenance of such shutters in accordance with the procedures
702	set forth herein shall not be deemed a material alteration to
703	the common elements or association property within the meaning
704	of this section.
705	(6)  Every 5 years the board of administration shall have
706	the condominium buildings inspected by a professional engineer
707	or professional architect registered in the state for the
708	purpose of determining that the building is structurally and
709	electrically safe. The engineer or architect shall render a
710	report that shall indicate the manner and type of inspection
711	forming the basis for the report and description of any matters
712	identified as requiring remedial action. The report shall become
713	an official record of the association to be provided to the
714	members upon request pursuant to section 718.111(12).
715	Section 5.  Paragraph (d) of subsection (1) of section
716	718.115, Florida Statutes, is amended to read:
717	718.115  Common expenses and common surplus.--
718	(1)
719	(d)  If so provided in the declaration, the cost of a
720	master antenna television system or duly franchised cable
721	television service obtained pursuant to a bulk contract for
722	basic service shall be deemed a common expense. If the
723	declaration does not provide for the cost of a master antenna
724	television system or duly franchised basic cable television
725	service obtained under a basic bulk contract as a common
726	expense, the board may enter into such a contract, and the cost
727	of the service will be a common expense but allocated on a per-
728	unit basis rather than a percentage basis if the declaration
729	provides for other than an equal sharing of common expenses, and
730	any contract entered into before July 1, 1998, in which the cost
731	of the service is not equally divided among all unit owners, may
732	be changed by vote of a majority of the voting interests present
733	at a regular or special meeting of the association, to allocate
734	the cost equally among all units. The contract shall be for a
735	term of not less than 2 years.
736	1.  Any contract made by the board after the effective date
737	hereof for a community antenna system or duly franchised basic
738	cable television service may be canceled by a majority of the
739	voting interests present at the next regular or special meeting
740	of the association. Any member may make a motion to cancel said
741	contract, but if no motion is made or if such motion fails to
742	obtain the required majority at the next regular or special
743	meeting, whichever is sooner, following the making of the
744	contract, then such contract shall be deemed ratified for the
745	term therein expressed.
746	2.  Any such contract shall provide, and shall be deemed to
747	provide if not expressly set forth, that any hearing-impaired or
748	legally blind unit owner who does not occupy the unit with a
749	non-hearing-impaired or sighted person, or any unit owner
750	receiving supplemental security income under Title XVI of the
751	Social Security Act or food stamps as administered by the
752	Department of Children and Family Services pursuant to s.
753	414.31, may discontinue the service without incurring disconnect
754	fees, penalties, or subsequent service charges, and, as to such
755	units, the owners shall not be required to pay any common
756	expenses charge related to such service. If less than all
757	members of an association share the expenses of cable
758	television, the expense shall be shared equally by all
759	participating unit owners. The association may use the
760	provisions of s. 718.116 to enforce payment of the shares of
761	such costs by the unit owners receiving cable television.
762	Section 6.  Subsections (1) and (3), paragraph (a) of
763	subsection (5), and subsection (10) of section 718.116, Florida
764	Statutes, are amended to read:
765	718.116  Assessments; liability; lien and priority;
766	interest; collection.--
767	(1)(a)  A unit owner, regardless of how his or her title
768	has been acquired, including by purchase at a foreclosure sale
769	or by deed in lieu of foreclosure, is liable for all assessments
770	which come due while he or she is the unit owner. Additionally,
771	a unit owner is jointly and severally liable with the previous
772	owner for all unpaid assessments that came due up to the time of
773	transfer of title. This liability is without prejudice to any
774	right the owner may have to recover from the previous owner the
775	amounts paid by the owner.
776	(b)  The liability of a first mortgagee or its successor or
777	assignees who acquire title to a unit by foreclosure or by deed
778	in lieu of foreclosure for the unpaid assessments that became
779	due prior to the mortgagee's acquisition of title is limited to
780	the lesser of:
781	1.  The unit's unpaid common expenses and regular periodic
782	assessments which accrued or came due during the 6 months
783	immediately preceding the acquisition of title and for which
784	payment in full has not been received by the association; or
785	2.  One percent of the original mortgage debt. The
786	provisions of this paragraph apply only if the first mortgagee
787	joined the association as a defendant in the foreclosure action.
788	Joinder of the association is not required if, on the date the
789	complaint is filed, the association was dissolved or did not
790	maintain an office or agent for service of process at a location
791	which was known to or reasonably discoverable by the mortgagee.
792	(b)(c)  The person acquiring title shall pay the amount
793	owed to the association within 30 days after transfer of title.
794	Failure to pay the full amount when due shall entitle the
795	association to record a claim of lien against the parcel and
796	proceed in the same manner as provided in this section for the
797	collection of unpaid assessments.
798	(c)(d)  With respect to each timeshare unit, each owner of
799	a timeshare estate therein is jointly and severally liable for
800	the payment of all assessments and other charges levied against
801	or with respect to that unit pursuant to the declaration or
802	bylaws, except to the extent that the declaration or bylaws may
803	provide to the contrary.
804	(d)(e)  Notwithstanding the provisions of paragraph (b), A
805	first mortgagee or its successor or assignees who acquire title
806	to a condominium unit as a result of the foreclosure of the
807	mortgage or by deed in lieu of foreclosure of the mortgage shall
808	be exempt from liability for all unpaid assessments attributable
809	to the parcel or chargeable to the previous owner which came due
810	prior to acquisition of title if the first mortgage was recorded
811	prior to April 1, 1992. If, however, the first mortgage was
812	recorded on or after April 1, 1992, or on the date the mortgage
813	was recorded, the declaration included language incorporating by
814	reference future amendments to this chapter, the provisions of
815	paragraph (b) shall apply.
816	(e)(f)  The provisions of this subsection are intended to
817	clarify existing law, and shall not be available in any case
818	where the unpaid assessments sought to be recovered by the
819	association are secured by a lien recorded prior to the
820	recording of the mortgage. Notwithstanding the provisions of
821	chapter 48, the association shall be a proper party to intervene
822	in any foreclosure proceeding to seek equitable relief.
823	(f)(g)  For purposes of this subsection, the term
824	"successor or assignee" as used with respect to a first
825	mortgagee includes only a subsequent holder of the first
826	mortgage.
827	(3)  Assessments and installments on them which are not
828	paid when due bear interest at the rate provided in the
829	declaration, from the due date until paid. This rate may not
830	exceed the rate allowed by law, and, if no rate is provided in
831	the declaration, interest shall accrue at the rate of 18 percent
832	per year. Also, if the declaration or bylaws so provide, the
833	association may charge an administrative late fee in addition to
834	such interest, in an amount not to exceed the greater of $25 or
835	5 percent of each installment of the assessment for each
836	delinquent installment that the payment is late. Any payment
837	received by an association shall be applied first to any
838	interest accrued by the association, then to any administrative
839	late fee, then to the delinquent assessment, and then to any
840	costs and reasonable attorney's fees incurred in collection, and
841	then to the delinquent assessment. The foregoing shall be
842	applicable notwithstanding any restrictive endorsement,
843	designation, or instruction placed on or accompanying a payment.
844	A late fee shall not be subject to the provisions in chapter 687
845	or s. 718.303(3).
846	(5)(a)  The association has a lien on each condominium
847	parcel to secure the payment of assessments. A lien may not be
848	filed on a condominium parcel until 30 days after the date of a
849	notice of intent to file a lien has been served on the owner of
850	the condominium parcel by certified mail or by personal service
851	in the manner authorized by chapter 48 and the Florida Rules of
852	Civil Procedure. Except as otherwise provided in subsection (1)
853	and as set forth below, the lien is effective from and shall
854	relate back to the recording of the original declaration of
855	condominium, or, in the case of lien on a parcel located in a
856	phase condominium, the last to occur of the recording of the
857	original declaration or amendment thereto creating the parcel.
858	However, as to first mortgages of record, the lien is effective
859	from and after recording of a claim of lien in the public
860	records of the county in which the condominium parcel is
861	located. Nothing in this subsection shall be construed to bestow
862	upon any lien, mortgage, or certified judgment of record on
863	April 1, 1992, including the lien for unpaid assessments created
864	herein, a priority which, by law, the lien, mortgage, or
865	judgment did not have before that date.
866
867	After notice of contest of lien has been recorded, the clerk of
868	the circuit court shall mail a copy of the recorded notice to
869	the association by certified mail, return receipt requested, at
870	the address shown in the claim of lien or most recent amendment
871	to it and shall certify to the service on the face of the
872	notice. Service is complete upon mailing. After service, the
873	association has 90 days in which to file an action to enforce
874	the lien; and, if the action is not filed within the 90-day
875	period, the lien is void. However, the 90-day period shall be
876	extended for any length of time that the association is
877	prevented from filing its action because of an automatic stay
878	resulting from the filing of a bankruptcy petition by the unit
879	owner or by any other person claiming an interest in the parcel.
880	(10)  The specific purpose or purposes including itemized
881	expenses of any special assessment approved in accordance with
882	the condominium documents shall be set forth in a written notice
883	of such assessment sent or delivered to each unit owner. A
884	payment schedule shall be provided with due regard to the
885	financial burden of the assessment on the unit owner. The funds
886	collected pursuant to a special assessment shall not be
887	commingled with any of the other association funds and shall be
888	used only for the specific purpose or purposes set forth in such
889	notice. However, upon completion of such specific purpose or
890	purposes, any excess funds will be considered common surplus,
891	and may, at the discretion of the board, either be returned to
892	the unit owners or applied as a credit toward future
893	assessments.
894	Section 7.  Section 718.1223, Florida Statutes, is created
895	to read:
896	718.1223  Protection against abuse.--
897	(1)  In order to protect the safety, health, and welfare of
898	the people of this state and to ensure protection of condominium
899	owners, especially the infirm, and elderly, any complaint of
900	abuse filed with the Division of Florida Land Sales,
901	Condominiums, and Mobile Homes shall immediately be investigated
902	by the division. Where the division then has reasonable cause to
903	believe that abuse has occurred against any unit owner, the
904	division shall institute enforcement proceedings pursuant to its
905	powers and duties as set forth in s. 718.501.
906	(2)  For purposes of this section, the term "abuse" means
907	any willful act or threatened act by a member of the board of
908	directors of a condominium association or any member of a
909	committee or subcommittee appointed by the board of directors,
910	any employee, volunteer, or agent purporting to act on behalf of
911	the board of directors, or any officer, director, employee, or
912	agent of any management company acting on behalf of a
913	condominium association who denies or is likely to deny a
914	condominium unit owner or dweller any of the rights and
915	protections afforded to the unit owner or dweller under
916	applicable state and federal laws, administrative rules, and the
917	governing documents of the condominium association.
918	Section 8.  Section 718.1224, Florida Statutes, is created
919	to read:
920	718.1224  Prohibition against SLAPP suits.--
921	(1)  It is the intent of the Legislature to protect the
922	right of condominium unit owners to exercise their rights to
923	instruct their representatives and petition for redress of
924	grievances before the various governmental entities of this
925	state as protected by the First Amendment to the United States
926	Constitution and s. 5, Art. I of the State Constitution. The
927	Legislature recognizes that strategic lawsuits against public
928	participation, or "SLAPP" suits as they are typically referred
929	to, have occurred when association members are sued by
930	individuals, business entities, or governmental entities arising
931	out of a condominium unit owner's appearance and presentation
932	before a governmental entity on matters related to the
933	condominium association. However, it is the public policy of
934	this state that governmental entities, business organizations,
935	and individuals not engage in SLAPP suits, because such actions
936	are inconsistent with the right of condominium unit owners to
937	participate in the state's institutions of government.
938	Therefore, the Legislature finds and declares that prohibiting
939	such lawsuits by governmental entities, business entities, and
940	individuals against condominium unit owners who address matters
941	concerning their condominium association will preserve this
942	fundamental state policy, preserve the constitutional rights of
943	condominium unit owners, and ensure the continuation of
944	representative government in this state. It is the intent of the
945	Legislature that such lawsuits be expeditiously disposed of by
946	the courts. As used in this subsection, the term "governmental
947	entity" means the state, including the executive, legislative,
948	and judicial branches of government, the independent
949	establishments of the state, counties, municipalities,
950	districts, authorities, boards, or commissions, or any agencies
951	of these branches that are subject to chapter 286.
952	(2)  No governmental entity, business organization, or
953	individual in this state shall file or cause to be filed through
954	its employees or agents, any lawsuit, cause of action, claim,
955	cross-claim, or counterclaim against a condominium unit owner
956	without merit and solely because such condominium unit owner has
957	exercised the right to instruct his or her representatives of
958	the right to petition for redress of grievances before the
959	various governmental entities of this state, as protected by the
960	First Amendment to the United States Constitution and s. 5, Art.
961	I of the State Constitution.
962	(3)  A condominium unit owner sued by a governmental
963	entity, business organization, or individual in violation of
964	this section has a right to an expeditious resolution of a claim
965	that the suit is in violation of this section. A condominium
966	unit owner may petition the court for an order dismissing the
967	action or granting final judgment in favor of that condominium
968	unit owner. The petitioner may file a motion for summary
969	judgment, together with supplemental affidavits, seeking a
970	determination that the governmental entity's, business
971	organization's, or individual's lawsuit has been brought in
972	violation of this section. The governmental entity, business
973	organization, or individual shall thereafter file its response
974	and any supplemental affidavits. As soon as practicable, the
975	court shall set a hearing on the petitioner's motion, which
976	shall be held at the earliest possible time after the filing of
977	the governmental entity's, business organization's, or
978	individual's response. The court may award the condominium unit
979	owner sued by the governmental entity, business organization, or
980	individual actual damages arising from the governmental
981	entity's, individual's, or business organization's violation of
982	this section. A court may treble the damages awarded to a
983	prevailing condominium unit owner and shall state the basis for
984	the treble damages award in its judgment. The court shall award
985	the prevailing party reasonable attorney's fees and costs
986	incurred in connection with a claim that an action was filed in
987	violation of this section.
988	(4)  Condominium associations may not expend association
989	funds in prosecuting a SLAPP suit against a condominium unit
990	owner.
991	Section 9.  Paragraphs (e) and (h) of subsection (4) of
992	section 718.1255, Florida Statutes, are amended to read:
993	718.1255  Alternative dispute resolution; voluntary
994	mediation; mandatory nonbinding arbitration; legislative
995	findings.--
996	(4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
997	DISPUTES.--The Division of Florida Land Sales, Condominiums, and
998	Mobile Homes of the Department of Business and Professional
999	Regulation shall employ full-time attorneys to act as
1000	arbitrators to conduct the arbitration hearings provided by this
1001	chapter. The division may also certify attorneys who are not
1002	employed by the division to act as arbitrators to conduct the
1003	arbitration hearings provided by this section. No person may be
1004	employed by the department as a full-time arbitrator unless he
1005	or she is a member in good standing of The Florida Bar. The
1006	department shall promulgate rules of procedure to govern such
1007	arbitration hearings including mediation incident thereto. The
1008	decision of an arbitrator shall be final; however, such a
1009	decision shall not be deemed final agency action. Nothing in
1010	this provision shall be construed to foreclose parties from
1011	proceeding in a trial de novo unless the parties have agreed
1012	that the arbitration is binding. If such judicial proceedings
1013	are initiated, the final decision of the arbitrator shall be
1014	admissible in evidence in the trial de novo.
1015	(e)  Either before or after the filing of the respondents'
1016	answer to the petition, any party may request that the
1017	arbitrator refer the case to mediation under this section and
1018	any rules adopted by the division. Upon receipt of a request for
1019	mediation, the division shall promptly refer the case contact
1020	the parties to determine if there is agreement that mediation
1021	would be appropriate. If all parties agree, the dispute must be
1022	referred to mediation. Notwithstanding a lack of an agreement by
1023	all parties, The arbitrator may refer a dispute to mediation at
1024	any time.
1025	(h)  Mediation proceedings must generally be conducted in
1026	accordance with the Florida Rules of Civil Procedure, and these
1027	proceedings are privileged and confidential to the same extent
1028	as court-ordered mediation. Persons who are not parties to the
1029	dispute are not allowed to attend the mediation conference
1030	without the consent of all parties, with the exception of
1031	counsel for the parties and corporate representatives designated
1032	to appear for a party. If the mediator declares an impasse after
1033	a mediation conference has been held, the arbitration proceeding
1034	terminates, unless all parties agree in writing to continue the
1035	arbitration proceeding, in which case the arbitrator's decision
1036	shall be either binding or nonbinding, as agreed upon by the
1037	parties; in the arbitration proceeding, the arbitrator shall not
1038	consider any evidence relating to the unsuccessful mediation
1039	except in a proceeding to impose sanctions for failure to appear
1040	at the mediation conference. If the parties do not agree to
1041	continue arbitration, the arbitrator shall enter an order of
1042	dismissal, and either party may institute a suit in a court of
1043	competent jurisdiction. The parties may seek to recover any
1044	costs and attorneys' fees incurred in connection with
1045	arbitration and mediation proceedings under this section as part
1046	of the costs and fees that may be recovered by the prevailing
1047	party in any subsequent litigation.
1048	Section 10.  Subsection (1) of section 718.302, Florida
1049	Statutes, is amended to read:
1050	718.302  Agreements entered into by the association.--
1051	(1)  Any grant or reservation made by a declaration, lease,
1052	or other document, and any contract made by an association prior
1053	to assumption of control of the association by unit owners other
1054	than the developer, that provides for services, products,
1055	operation, maintenance, or management of a condominium
1056	association or property serving the unit owners of a condominium
1057	shall be fair and reasonable, and such grant, reservation, or
1058	contract may be canceled by unit owners other than the
1059	developer:
1060	(a)  If the association operates only one condominium and
1061	the unit owners other than the developer have assumed control of
1062	the association, or if unit owners other than the developer own
1063	not less than 75 percent of the voting interests in the
1064	condominium, the cancellation shall be by concurrence of the
1065	owners of not less than 75 percent of the voting interests other
1066	than the voting interests owned by the developer. If a grant,
1067	reservation, or contract is so canceled and the unit owners
1068	other than the developer have not assumed control of the
1069	association, the association shall make a new contract or
1070	otherwise provide for maintenance, management, or operation in
1071	lieu of the canceled obligation, at the direction of the owners
1072	of not less than a majority of the voting interests in the
1073	condominium other than the voting interests owned by the
1074	developer.
1075	(b)  If the association operates more than one condominium
1076	and the unit owners other than the developer have not assumed
1077	control of the association, and if unit owners other than the
1078	developer own at least 75 percent of the voting interests in a
1079	condominium operated by the association, any grant, reservation,
1080	or contract for maintenance, management, or operation of
1081	buildings containing the units in that condominium or of
1082	improvements used only by unit owners of that condominium may be
1083	canceled by concurrence of the owners of at least 75 percent of
1084	the voting interests in the condominium other than the voting
1085	interests owned by the developer. No grant, reservation, or
1086	contract for maintenance, management, or operation of
1087	recreational areas or any other property serving more than one
1088	condominium, and operated by more than one association, may be
1089	canceled except pursuant to paragraph (d).
1090	(c)  If the association operates more than one condominium
1091	and the unit owners other than the developer have assumed
1092	control of the association, the cancellation shall be by
1093	concurrence of the owners of not less than 75 percent of the
1094	total number of voting interests in all condominiums operated by
1095	the association other than the voting interests owned by the
1096	developer.
1097	(d)  If the owners of units in a condominium have the right
1098	to use property in common with owners of units in other
1099	condominiums and those condominiums are operated by more than
1100	one association, no grant, reservation, or contract for
1101	maintenance, management, or operation of the property serving
1102	more than one condominium may be canceled until unit owners
1103	other than the developer have assumed control of all of the
1104	associations operating the condominiums that are to be served by
1105	the recreational area or other property, after which
1106	cancellation may be effected by concurrence of the owners of not
1107	less than 75 percent of the total number of voting interests in
1108	those condominiums other than voting interests owned by the
1109	developer.
1110	Section 11.  Paragraph (a) of subsection (2) of section
1111	718.3026, Florida Statutes, is amended to read:
1112	718.3026  Contracts for products and services; in writing;
1113	bids; exceptions.--Associations with less than 100 units may opt
1114	out of the provisions of this section if two-thirds of the unit
1115	owners vote to do so, which opt-out may be accomplished by a
1116	proxy specifically setting forth the exception from this
1117	section.
1118	(2)(a)1.  Notwithstanding the foregoing, contracts with
1119	employees of the association, and contracts for attorney,
1120	accountant, architect, community association manager, timeshare
1121	management firm, engineering, and landscape architect services
1122	are not subject to the provisions of this section.
1123	2.  A contract executed before January 1, 1992, and any
1124	renewal thereof, is not subject to the competitive bid
1125	requirements of this section. If a contract was awarded under
1126	the competitive bid procedures of this section, any renewal of
1127	that contract is not subject to such competitive bid
1128	requirements if the contract contains a provision that allows
1129	the board to cancel the contract on 30 days' notice. Materials,
1130	equipment, or services provided to a condominium under a local
1131	government franchise agreement by a franchise holder are not
1132	subject to the competitive bid requirements of this section. A
1133	contract with a manager, if made by a competitive bid, may be
1134	made for up to 3 years. A condominium whose declaration or
1135	bylaws provides for competitive bidding for services may operate
1136	under the provisions of that declaration or bylaws in lieu of
1137	this section if those provisions are not less stringent than the
1138	requirements of this section.
1139	3.  A contract by and between a service provider and an
1140	association shall not be for a term in excess of 3 years and
1141	shall not contain an automatic renewal clause.
1142	4.  A contract for construction or repair of the property
1143	that exceeds 10 percent of the total annual budget of the
1144	association, including reserves, must have the approval of an
1145	attorney hired by the association.
1146	Section 12.  Subsection (4) is added to section 718.303,
1147	Florida Statutes, to read:
1148	718.303  Obligations of owners; waiver; levy of fine
1149	against unit by association.--
1150	(4)  Anyone subject to an action under this section shall
1151	be notified of the violation by certified mail, return receipt
1152	requested, and, except in the case of imminent danger to person
1153	or property, shall have 30 days in which to respond in writing.
1154	If no response is provided and the violation continues or is
1155	repeated, the association may proceed under subsections (1) and
1156	(2) without further notice except as provided in subsection (3).
1157	Section 13.  Paragraphs (e) and (j) of subsection (1) of
1158	section 718.501, Florida Statutes, are amended to read:
1159	718.501  Powers and duties of Division of Florida Land
1160	Sales, Condominiums, and Mobile Homes.--
1161	(1)  The Division of Florida Land Sales, Condominiums, and
1162	Mobile Homes of the Department of Business and Professional
1163	Regulation, referred to as the "division" in this part, in
1164	addition to other powers and duties prescribed by chapter 498,
1165	has the power to enforce and ensure compliance with the
1166	provisions of this chapter and rules promulgated pursuant hereto
1167	relating to the development, construction, sale, lease,
1168	ownership, operation, and management of residential condominium
1169	units. In performing its duties, the division has the following
1170	powers and duties:
1171	(e)  The division shall is authorized to prepare and
1172	disseminate a prospectus and other information to assist
1173	prospective owners, purchasers, lessees, and developers of
1174	residential condominiums in assessing the rights, privileges,
1175	and duties pertaining thereto.
1176	(j)  The division shall provide training programs for
1177	condominium association board members and unit owners in
1178	conjunction with the recommendations of the ombudsman.
1179	Section 14.  Subsection (1) of section 718.5011, Florida
1180	Statutes, is amended to read:
1181	718.5011  Ombudsman; appointment; administration.--
1182	(1)  There is created an Office of the Condominium
1183	Ombudsman, to be located for administrative purposes only within
1184	the Division of Florida Land Sales, Condominiums, and Mobile
1185	Homes. The ombudsman shall exercise his or her policymaking and
1186	other functions authorized by this chapter independently of the
1187	Department of Business and Professional Regulation and without
1188	approval or control of the department. The department shall
1189	render administrative support to the office in matters
1190	pertaining to budget, personnel, office space, equipment, and
1191	supplies. All revenues collected for the office by the
1192	department shall be deposited in a separate fund or account from
1193	which the department may not use or divert the revenues. The
1194	functions of the office shall be funded by the Division of
1195	Florida Land Sales, Condominiums, and Mobile Homes Trust Fund.
1196	The ombudsman shall be a bureau chief of the division, and the
1197	office shall be set within the division in the same manner as
1198	any other bureau is staffed and funded.
1199	Section 15.  Section 718.5012, Florida Statutes, is amended
1200	to read:
1201	718.5012  Ombudsman; powers and duties.--
1202	(1)  The ombudsman shall have the powers that are necessary
1203	to carry out the duties of his or her office, including the
1204	following specific powers:
1205	(a)(1)  To have access to and use of all files and records
1206	of the division.
1207	(b)(2)  To employ professional and clerical staff as
1208	necessary for the efficient operation of the office.
1209	(c)(3)  To prepare and issue reports and recommendations to
1210	the Governor, the department, the division, the Advisory Council
1211	on Condominiums, the President of the Senate, and the Speaker of
1212	the House of Representatives on any matter or subject within the
1213	jurisdiction of the division. The ombudsman shall make
1214	recommendations he or she deems appropriate for legislation
1215	relative to division procedures, rules, jurisdiction, personnel,
1216	and functions.
1217	(d)(4)  To act as liaison between the division, unit
1218	owners, boards of directors, board members, community
1219	association managers, and other affected parties. The ombudsman
1220	shall develop policies and procedures to assist unit owners,
1221	boards of directors, board members, community association
1222	managers, and other affected parties to understand their rights
1223	and responsibilities as set forth in this chapter and the
1224	condominium documents governing their respective association.
1225	The ombudsman shall coordinate and assist in the preparation and
1226	adoption of educational and reference material, and shall
1227	endeavor to coordinate with private or volunteer providers of
1228	these services, so that the availability of these resources is
1229	made known to the largest possible audience.
1230	(e)(5)  To monitor and review procedures and disputes
1231	concerning condominium elections or meetings, including, but not
1232	limited to, recommending that the division pursue enforcement
1233	action in any manner where there is reasonable cause to believe
1234	that election misconduct has occurred. The division shall
1235	process the ombudsman's recommendations and petitions in an
1236	expedited manner and shall defer to his or her findings.
1237	(f)(6)  To make recommendations to the division for changes
1238	in rules and procedures for the filing, investigation, and
1239	resolution of complaints filed by unit owners, associations, and
1240	managers.
1241	(g)(7)  To provide resources to assist members of boards of
1242	directors and officers of associations to carry out their powers
1243	and duties consistent with this chapter, division rules, and the
1244	condominium documents governing the association.
1245	(h)(8)  To order, encourage, and facilitate voluntary
1246	meetings with and between unit owners, boards of directors,
1247	board members, community association managers, and other
1248	affected parties when the meetings may assist in resolving a
1249	dispute within a community association before a person submits a
1250	dispute for a formal or administrative remedy. It is the intent
1251	of the Legislature that the ombudsman act as a neutral resource
1252	for both the rights and responsibilities of unit owners,
1253	associations, and board members.
1254	(i)  To make recommendations to the division to pursue
1255	enforcement action in circuit court on behalf of a class of unit
1256	owners, lessees, or purchasers for declaratory relief,
1257	injunctive relief, or restitution against any developer,
1258	association, officer, or member of the board of administration
1259	or its assignees or agents when there is reasonable cause to
1260	believe misconduct has occurred. The division shall process the
1261	ombudsman's recommendations and petitions in an expedited manner
1262	and shall defer to his or her findings.
1263	(2)(9)  Fifteen percent of the total voting interests in a
1264	condominium association, or six unit owners, whichever is
1265	greater, may petition the ombudsman to appoint an election
1266	monitor to attend the annual meeting of the unit owners and
1267	conduct the election of directors. The ombudsman upon petition
1268	may order any aspect of the election process as set forth in s.
1269	718.112(2)(d)3. to be conducted by the election monitor. No
1270	association or person may reject an election monitor appointed
1271	by the ombudsman or interfere with an election monitor in the
1272	performance of his or her duties. The ombudsman may order an
1273	association to implement a known division remedy for a
1274	procedural violation of s. 718.112(2)(d)3. prior to and during a
1275	monitored election. The ombudsman shall appoint a division
1276	employee, a person or persons specializing in condominium
1277	election monitoring, or an attorney licensed to practice in this
1278	state as the election monitor. All costs associated with the
1279	election monitoring process shall be paid by the association.
1280	The division shall adopt a rule establishing procedures for the
1281	appointment of election monitors and the scope and extent of the
1282	monitor's role in the election process.
1283	(3)  Any unit owner or association acting in good faith on
1284	the advice or opinion of the office of the ombudsman shall be
1285	immune from any penalties or actions.
1286	(4)  If the ombudsman has reasonable cause to believe that
1287	a violation of any provision of this chapter or of any rule
1288	adopted hereto has occurred, the ombudsman may issue an order
1289	requiring any developer, association, officer, or member of the
1290	board of administration, or its assignees or agents, to cease
1291	and desist from the unlawful practice and to take affirmative
1292	action to carry out the purposes of this chapter.
1293	Section 16.  Section 718.50151, Florida Statutes, is
1294	repealed.
1295	Section 17.  Subsection (7) is added to section 719.1055,
1296	Florida Statutes, to read:
1297	719.1055  Amendment of cooperative documents; alteration
1298	and acquisition of property.--
1299	(7)  Any amendment restricting cooperative owners' rights
1300	relating to the rental of units applies only to unit owners who
1301	consent to the amendment and unit owners who purchase their
1302	units after the effective date of that amendment.
1303	Section 18.  Section 720.4016, Florida Statutes, is created
1304	to read:
1305	720.4016  Advisory Council on Mandated Properties.--There
1306	is created the Advisory Council on Mandated Properties. The
1307	council shall consist of seven appointed members. Two members
1308	shall be appointed by the President of the Senate, two members
1309	shall be appointed by the Speaker of the House of
1310	Representatives, and three members shall be appointed by the
1311	Governor. At least one member each appointed by the Governor, by
1312	the President, and by the Speaker shall be a homeowners' rights
1313	advocate and parcel owner. Members shall be appointed to 2-year
1314	terms; however, one of the persons initially appointed by the
1315	Governor, by the President, and by the Speaker shall be
1316	appointed to a 1-year term. A member of the division, appointed
1317	by the secretary, shall serve as an ex officio nonvoting member.
1318	The selection of council members shall be made in a manner that
1319	ensures a fair and balanced representation from the service-
1320	provider sector and consumer advocates with a substantial public
1321	record of endeavors on behalf of homeowners' rights and consumer
1322	interests. The council shall be located within the division for
1323	administrative purposes. Members of the council shall serve
1324	without compensation but are entitled to receive per diem and
1325	travel expenses pursuant to s. 112.061 while on official
1326	business. A vacancy on the advisory council shall be filled in
1327	the same manner as the original appointment.
1328	Section 19.  This act shall take effect July 1, 2006.

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