HB 0957

CS

CHAMBER ACTION

1	The State Administration Appropriations Committee recommends the
2	following:
3
4	Council/Committee Substitute
5	Remove the entire bill and insert:
6	A bill to be entitled
7	An act relating to community associations; creating s.
8	712.11, F.S.; authorizing certain associations to revive
9	lapsed covenants; amending s. 718.114, F.S.; providing
10	that certain leaseholds, memberships, or other possessory
11	or use interests shall be considered a material alteration
12	or substantial addition to certain real property; amending
13	s. 720.302, F.S.; revising application; amending s.
14	720.303, F.S.; authorizing associations to charge
15	specified fees for providing certain information to
16	prospective purchasers or lienholders; limiting liability
17	for providing such information; revising what must be
18	included in an association's annual budget; providing for
19	reserve accounts for capital expenditures and deferred
20	maintenance; revising certain time requirements relating
21	to annual reports of associations; amending s. 720.306,
22	F.S.; providing that certain mergers or consolidations do
23	not alter specified voting interests; amending s. 720.307,
24	F.S.; providing additional documents that the developer
25	must deliver at the time the association members elect the
26	board of directors; amending s. 720.308, F.S.; providing
27	that a guarantee of common expenses shall be effective
28	under certain circumstances; requiring the guarantee to
29	meet certain requirements; authorizing the guarantee to
30	provide certain requirements; requiring the stated dollar
31	amount of the guarantee to be an exact dollar amount for
32	each parcel identified in the declaration; providing
33	payments required from the guarantor to be determined in a
34	certain manner; providing a formula to determine the
35	guarantor's total financial obligation to the association;
36	providing that certain expenses incurred in the production
37	of certain revenues shall not be included in the operating
38	expenses; amending s. 720.402, F.S., relating to
39	publication of false or misleading information; clarifying
40	that the section does not limit common-law rights;
41	providing an effective date.
42
43	Be It Enacted by the Legislature of the State of Florida:
44
45	Section 1.  Section 712.11, Florida Statutes, is created to
46	read:
47	712.11  Covenant revitalization.--A homeowners' association
48	that is not subject to chapter 720 may use the procedures in ss.
49	720.403-720.407 to revive covenants that have lapsed pursuant to
50	this chapter.
51	Section 2.  Section 718.114, Florida Statutes, is amended
52	to read:
53	718.114  Association powers.--An association has the power
54	to enter into agreements, to acquire leaseholds, memberships,
55	and other possessory or use interests in lands or facilities
56	such as country clubs, golf courses, marinas, and other
57	recreational facilities. It has this power whether or not the
58	lands or facilities are contiguous to the lands of the
59	condominium, if they are intended to provide enjoyment,
60	recreation, or other use or benefit to the unit owners. All of
61	these leaseholds, memberships, and other possessory or use
62	interests existing or created at the time of recording the
63	declaration must be stated and fully described in the
64	declaration. Subsequent to the recording of the declaration,
65	agreements acquiring these leaseholds, memberships, or other
66	possessory or use interests not entered into within 12 months
67	following the recording of the declaration shall be considered a
68	material alteration or substantial addition to the real property
69	that is association property, and the association may not
70	acquire or enter into agreements acquiring these leaseholds,
71	memberships, or other possessory or use interests except as
72	authorized by the declaration as provided in s. 718.113. The
73	declaration may provide that the rental, membership fees,
74	operations, replacements, and other expenses are common expenses
75	and may impose covenants and restrictions concerning their use
76	and may contain other provisions not inconsistent with this
77	chapter. A condominium association may conduct bingo games as
78	provided in s. 849.0931.
79	Section 3.  Subsections (3) and (5) of section 720.302,
80	Florida Statutes, are amended to read:
81	720.302  Purposes, scope, and application.--
82	(3)  Except as specifically provided in this chapter, this
83	chapter does not apply to:
84	(a)  A community that is composed of property primarily
85	intended for commercial, industrial, or other nonresidential
86	use; or
87	(b)  The commercial or industrial parcels in a community
88	that contains both residential parcels and parcels intended for
89	commercial or industrial use.
90	(5)  Unless expressly stated to the contrary, corporations
91	not for profit that operate residential homeowners' associations
92	in this state shall be governed by and subject to chapter 617
93	and this chapter or chapter 607 if incorporated under that
94	chapter. This subsection is intended to clarify existing law.
95	Section 4.  Subsections (5), (6), and (7) of section
96	720.303, Florida Statutes, are amended to read:
97	720.303  Association powers and duties; meetings of board;
98	official records; budgets; financial reporting; association
99	funds; recalls.--
100	(5)  INSPECTION AND COPYING OF RECORDS.--The official
101	records shall be maintained within the state and must be open to
102	inspection and available for photocopying by members or their
103	authorized agents at reasonable times and places within 10
104	business days after receipt of a written request for access.
105	This subsection may be complied with by having a copy of the
106	official records available for inspection or copying in the
107	community. If the association has a photocopy machine available
108	where the records are maintained, it must provide parcel owners
109	with copies on request during the inspection if the entire
110	request is limited to no more than 25 pages.
111	(a)  The failure of an association to provide access to the
112	records within 10 business days after receipt of a written
113	request creates a rebuttable presumption that the association
114	willfully failed to comply with this subsection.
115	(b)  A member who is denied access to official records is
116	entitled to the actual damages or minimum damages for the
117	association's willful failure to comply with this subsection.
118	The minimum damages are to be $50 per calendar day up to 10
119	days, the calculation to begin on the 11th business day after
120	receipt of the written request.
121	(c)  The association may adopt reasonable written rules
122	governing the frequency, time, location, notice, records to be
123	inspected, and manner of inspections, but may not impose a
124	requirement that a parcel owner demonstrate any proper purpose
125	for the inspection, state any reason for the inspection, or
126	limit a parcel owner's right to inspect records to less than one
127	8-hour business day per month. The association may impose fees
128	to cover the costs of providing copies of the official records,
129	including, without limitation, the costs of copying. The
130	association may charge up to 50 cents per page for copies made
131	on the association's photocopier. If the association does not
132	have a photocopy machine available where the records are kept,
133	or if the records requested to be copied exceed 25 pages in
134	length, the association may have copies made by an outside
135	vendor and may charge the actual cost of copying. The
136	association shall maintain an adequate number of copies of the
137	recorded governing documents, to ensure their availability to
138	members and prospective members. Notwithstanding the provisions
139	of this paragraph, the following records shall not be accessible
140	to members or parcel owners:
141	1.  Any record protected by the lawyer-client privilege as
142	described in s. 90.502 and any record protected by the work-
143	product privilege, including, but not limited to, any record
144	prepared by an association attorney or prepared at the
145	attorney's express direction which reflects a mental impression,
146	conclusion, litigation strategy, or legal theory of the attorney
147	or the association and was prepared exclusively for civil or
148	criminal litigation or for adversarial administrative
149	proceedings or which was prepared in anticipation of imminent
150	civil or criminal litigation or imminent adversarial
151	administrative proceedings until the conclusion of the
152	litigation or adversarial administrative proceedings.
153	2.  Information obtained by an association in connection
154	with the approval of the lease, sale, or other transfer of a
155	parcel.
156	3.  Disciplinary, health, insurance, and personnel records
157	of the association's employees.
158	4.  Medical records of parcel owners or community
159	residents.
160	(d)  The association is not required to give a prospective
161	purchaser or lienholder information about the subdivision or the
162	association other than that required to be disclosed under this
163	chapter. It may charge the prospective purchaser, lienholder, or
164	current parcel owner or member a reasonable fee not to exceed
165	$150 to provide such information, other than information
166	required by law, plus the reasonable cost of photocopying and
167	attorney's fees incurred by the association in connection with
168	the response.
169	(e)  An association is not liable for providing such
170	information in good faith pursuant to a written request if the
171	person providing the information includes a written statement in
172	substantially the following form: "The responses herein are made
173	in good faith and to the best of my ability as to their
174	accuracy."
175	(6)  BUDGETS.--
176	(a)  The association shall prepare an annual budget that
177	sets out the annual operating expenses. The budget must reflect
178	the estimated revenues and expenses for that year and the
179	estimated surplus or deficit as of the end of the current year.
180	The budget must set out separately all fees or charges paid for
181	by the association for recreational amenities, whether owned by
182	the association, the developer, or another person. The
183	association shall provide each member with a copy of the annual
184	budget or a written notice that a copy of the budget is
185	available upon request at no charge to the member. The copy must
186	be provided to the member within the time limits set forth in
187	subsection (5).
188	(b)  In addition to annual operating expenses, the budget
189	may include reserve accounts for capital expenditures and
190	deferred maintenance for which the association is responsible to
191	the extent that the governing documents do not limit increases
192	in assessments, including reserves. If the budget of the
193	association includes reserve accounts, such reserves shall be
194	determined, maintained, and waived in the manner provided in
195	this subsection. Once an association provides for reserve
196	accounts in the budget, the association shall thereafter
197	determine, maintain, and waive reserves in compliance with the
198	provisions of this subsection.
199	(c)  If the budget of the association does not provide for
200	reserve accounts governed by this subsection and is responsible
201	for the repair and maintenance of capital improvements that may
202	result in a special assessment, each financial report for the
203	preceding fiscal year required by subsection (7) shall contain
204	the following statement in conspicuous type: THE BUDGET OF THE
205	ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL
206	EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL
207	ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
208	PURSUANT TO THE PROVISIONS OF SECTION 720.303(6), FLORIDA
209	STATUTES, UPON THE APPROVAL OF NOT LESS THAN A MAJORITY OF THE
210	TOTAL VOTING INTERESTS OF THE ASSOCIATION.
211	(d)  An association shall be deemed to have provided for
212	reserve accounts when reserve accounts have been initially
213	established by the developer or when the membership of the
214	association affirmatively elects to provide for reserves. If
215	reserve accounts are not initially provided for by the
216	developer, the membership of the association may elect to do so
217	upon the affirmative approval of not less than a majority of the
218	total voting interests of the association. Such approval may be
219	attained by vote of the members at a duly called meeting of the
220	membership or upon a written consent executed by not less than a
221	majority of the total voting interests in the community. The
222	approval action of the membership shall state that reserve
223	accounts shall be provided for in the budget and shall designate
224	the components for which the reserve accounts are to be
225	established. Upon approval by the membership, the board of
226	directors shall provide for the required reserve accounts to be
227	included in the budget in the next fiscal year following the
228	approval and in each year thereafter. Once established as
229	provided in this paragraph, the reserve accounts shall be funded
230	or maintained or shall have their funding waived in the manner
231	provided in paragraph (f).
232	(e)  The amount to be reserved in any account established
233	shall be computed by means of a formula that is based upon
234	estimated remaining useful life and estimated replacement cost
235	or deferred maintenance expense of each reserve item. The
236	association may adjust replacement reserve assessments annually
237	to take into account any changes in estimates of cost or useful
238	life of a reserve item.
239	(f)  Once a reserve account is established, the membership
240	of the association, upon a majority vote at a meeting at which a
241	quorum is present, may provide for no reserves or less reserves
242	than required by this section. If a meeting of the unit owners
243	has been called to determine whether to waive or reduce the
244	funding of reserves and no such result is achieved or a quorum
245	is not attained, the reserves as included in the budget shall go
246	into effect. After the turnover of control of an association by
247	a developer to parcel owners, the developer may vote its voting
248	interest to waive or reduce the funding of reserves. Any vote
249	taken pursuant to this paragraph to waive or reduce reserves
250	shall be applicable only to one budget year.
251	(g)  Funding formulas for reserves authorized by this
252	subsection shall be based on either a separate analysis of each
253	of the required assets or a pooled analysis of two or more of
254	the required assets.
255	1.  If the association maintains separate reserve accounts
256	for each of the required assets, the amount of the contribution
257	to each reserve account shall be the sum of the following two
258	calculations:
259	a.  The total amount necessary, if any, to bring a negative
260	component balance to zero.
261	b.  The total estimated deferred maintenance expense or
262	estimated replacement cost of the reserve component less the
263	estimated balance of the reserve component as of the beginning
264	of the period for which the budget will be in effect. The
265	remainder, if greater than zero, shall be divided by the
266	estimated remaining useful life of the component. The formula
267	may be adjusted each year for changes in estimates and deferred
268	maintenance performed during the year and may consider factors
269	such as inflation and earnings on invested funds.
270	2.  If the association maintains a pooled account of two or
271	more of the required reserve assets, the amount of the
272	contribution to the pooled reserve account as disclosed in the
273	proposed budget shall be not less than that required to ensure
274	that the balance on hand at the beginning of the period for
275	which the budget will go into effect plus the projected annual
276	cash inflows over the remaining estimated useful lives of all of
277	the assets that make up the reserve pool are equal to or greater
278	than the projected annual cash outflows over the remaining
279	estimated useful life of all of the assets that make up the
280	reserve pool, based on the current reserve analysis. The
281	projected annual cash inflows may include estimated earnings
282	from investment of principal. The reserve funding formula shall
283	not include any type of balloon payments.
284	(h)  Reserve funds and any interest accruing thereon shall
285	remain in the reserve account or accounts and shall be used only
286	for authorized reserve expenditures unless their use for other
287	purposes is approved in advance by a majority vote at a meeting
288	at which a quorum is present. Prior to turnover of control of an
289	association by a developer to parcel owners, the developer-
290	controlled association shall not vote to use reserves for
291	purposes other than that for which they were intended without
292	the approval of a majority of all nondeveloper voting interests
293	voting in person or by limited proxy at a duly called meeting of
294	the association.
295	(7)  FINANCIAL REPORTING.--Within 90 days after the end of
296	the fiscal year, or annually on the date provided in the bylaws,
297	the association shall prepare and complete, or contract for the
298	preparation and completion of, a an annual financial report for
299	the preceding fiscal year. Within 21 60 days after the final
300	financial report is completed by the association or received
301	from the third party, but not later than 120 days after the end
302	of the fiscal year or other date as provided in the bylaws,
303	close of the fiscal year. the association shall, within the time
304	limits set forth in subsection (5), provide each member with a
305	copy of the annual financial report or a written notice that a
306	copy of the financial report is available upon request at no
307	charge to the member. Financial reports shall be prepared as
308	follows:
309	(a)  An association that meets the criteria of this
310	paragraph shall prepare or cause to be prepared a complete set
311	of financial statements in accordance with generally accepted
312	accounting principles as adopted by the Florida Board of
313	Accountancy. The financial statements shall be based upon the
314	association's total annual revenues, as follows:
315	1.  An association with total annual revenues of $100,000
316	or more, but less than $200,000, shall prepare compiled
317	financial statements.
318	2.  An association with total annual revenues of at least
319	$200,000, but less than $400,000, shall prepare reviewed
320	financial statements.
321	3.  An association with total annual revenues of $400,000
322	or more shall prepare audited financial statements.
323	(b)1.  An association with total annual revenues of less
324	than $100,000 shall prepare a report of cash receipts and
325	expenditures.
326	2.  An association in a community of fewer than 50 parcels,
327	regardless of the association's annual revenues, may prepare a
328	report of cash receipts and expenditures in lieu of financial
329	statements required by paragraph (a) unless the governing
330	documents provide otherwise.
331	3.  A report of cash receipts and disbursement must
332	disclose the amount of receipts by accounts and receipt
333	classifications and the amount of expenses by accounts and
334	expense classifications, including, but not limited to, the
335	following, as applicable: costs for security, professional, and
336	management fees and expenses; taxes; costs for recreation
337	facilities; expenses for refuse collection and utility services;
338	expenses for lawn care; costs for building maintenance and
339	repair; insurance costs; administration and salary expenses; and
340	reserves if maintained by the association.
341	(c)  If 20 percent of the parcel owners petition the board
342	for a level of financial reporting higher than that required by
343	this section, the association shall duly notice and hold a
344	meeting of members within 30 days of receipt of the petition for
345	the purpose of voting on raising the level of reporting for that
346	fiscal year. Upon approval of a majority of the total voting
347	interests of the parcel owners, the association shall prepare or
348	cause to be prepared, shall amend the budget or adopt a special
349	assessment to pay for the financial report regardless of any
350	provision to the contrary in the governing documents, and shall
351	provide within 90 days of the meeting or the end of the fiscal
352	year, whichever occurs later:
353	1.  Compiled, reviewed, or audited financial statements, if
354	the association is otherwise required to prepare a report of
355	cash receipts and expenditures;
356	2.  Reviewed or audited financial statements, if the
357	association is otherwise required to prepare compiled financial
358	statements; or
359	3.  Audited financial statements if the association is
360	otherwise required to prepare reviewed financial statements.
361	(d)  If approved by a majority of the voting interests
362	present at a properly called meeting of the association, an
363	association may prepare or cause to be prepared:
364	1.  A report of cash receipts and expenditures in lieu of a
365	compiled, reviewed, or audited financial statement;
366	2.  A report of cash receipts and expenditures or a
367	compiled financial statement in lieu of a reviewed or audited
368	financial statement; or
369	3.  A report of cash receipts and expenditures, a compiled
370	financial statement, or a reviewed financial statement in lieu
371	of an audited financial statement.
372	Section 5.  Subsection (1) of section 720.306, Florida
373	Statutes, is amended to read:
374	720.306  Meetings of members; voting and election
375	procedures; amendments.--
376	(1)  QUORUM; AMENDMENTS.--
377	(a)  Unless a lower number is provided in the bylaws, the
378	percentage of voting interests required to constitute a quorum
379	at a meeting of the members shall be 30 percent of the total
380	voting interests. Unless otherwise provided in this chapter or
381	in the articles of incorporation or bylaws, decisions that
382	require a vote of the members must be made by the concurrence of
383	at least a majority of the voting interests present, in person
384	or by proxy, at a meeting at which a quorum has been attained.
385	(b)  Unless otherwise provided in the governing documents
386	or required by law, and other than those matters set forth in
387	paragraph (c), any governing document of an association may be
388	amended by the affirmative vote of two-thirds of the voting
389	interests of the association.
390	(c)  Unless otherwise provided in the governing documents
391	as originally recorded or permitted by this chapter or chapter
392	617, an amendment may not materially and adversely alter the
393	proportionate voting interest appurtenant to a parcel or
394	increase the proportion or percentage by which a parcel shares
395	in the common expenses of the association unless the record
396	parcel owner and all record owners of liens on the parcels join
397	in the execution of the amendment. For purposes of this section,
398	a change in quorum requirements is not an alteration of voting
399	interests. The merger or consolidation of associations under a
400	plan of merger or consolidation pursuant to chapter 607 or
401	chapter 617 is not a material or adverse alteration of the
402	proportionate voting interest appurtenant to a parcel.
403	Section 6.  Paragraph (t) is added to subsection (3) of
404	section 720.307, Florida Statutes, to read:
405	720.307  Transition of association control in a
406	community.--With respect to homeowners' associations:
407	(3)  At the time the members are entitled to elect at least
408	a majority of the board of directors of the homeowners'
409	association, the developer shall, at the developer's expense,
410	within no more than 90 days deliver the following documents to
411	the board:
412	(t)  The financial records, including financial statements
413	of the association, and source documents from the incorporation
414	of the association through the date of turnover. The records
415	shall be audited by an independent certified public accountant
416	for the period from the incorporation of the association or from
417	the period covered by the last audit, if an audit has been
418	performed for each fiscal year since incorporation. All
419	financial statements shall be prepared in accordance with
420	generally accepted accounting principles and shall be audited in
421	accordance with generally accepted auditing standards, as
422	prescribed by the Florida Board of Accountancy, pursuant to
423	chapter 473. The certified public accountant performing the
424	audit shall examine to the extent necessary supporting documents
425	and records, including the cash disbursements and related paid
426	invoices, to determine if expenditures were for association
427	purposes, and the billings, cash receipts, and related records
428	to determine that the developer was charged and paid the proper
429	amounts of assessments. This paragraph applies to associations
430	with a date of incorporation after December 31, 2006.
431	Section 7.  Section 720.308, Florida Statutes, is amended
432	to read:
433	720.308  Assessments and charges.--
434	(1)  ASSESSMENTS.--For any community created after October
435	1, 1995, the governing documents must describe the manner in
436	which expenses are shared and specify the member's proportional
437	share thereof. Assessments levied pursuant to the annual budget
438	or special assessment must be in the member's proportional share
439	of expenses as described in the governing document, which share
440	may be different among classes of parcels based upon the state
441	of development thereof, levels of services received by the
442	applicable members, or other relevant factors. While the
443	developer is in control of the homeowners' association, it may
444	be excused from payment of its share of the operating expenses
445	and assessments related to its parcels for any period of time
446	for which the developer has, in the declaration, obligated
447	itself to pay any operating expenses incurred that exceed the
448	assessments receivable from other members and other income of
449	the association. This section does not apply to an association,
450	no matter when created, if the association is created in a
451	community that is included in an effective development-of-
452	regional-impact development order as of the effective date of
453	this act, together with any approved modifications thereto.
454	(2)  GUARANTEE OF COMMON EXPENSES.--
455	(a)  Establishment of a guarantee.--If a guarantee of the
456	assessments of parcel owners is not included in the purchase
457	contracts or declaration, any agreement establishing a guarantee
458	shall be effective only upon the approval of a majority of the
459	voting interests of the members other than the developer.
460	Approval shall be expressed at a meeting of the members, voting
461	in person or by limited proxy, or by agreement in writing
462	without a meeting if provided in the bylaws. Such guarantee
463	shall meet the requirements of this section.
464	(b)  Guarantee period.--The period of time for the
465	guarantee shall be indicated by a specific beginning and ending
466	date or event.
467	1.  The ending date or event shall be the same for all of
468	the members of a homeowners' association, including members in
469	different phases of the development.
470	2.  The guarantee may provide for different intervals of
471	time during a guarantee period with different dollar amounts for
472	each such interval.
473	(c)  Guarantee extension.--The guarantee may provide that
474	after the initial stated period the developer has an option to
475	extend the guarantee for one or more additional stated periods.
476	The extension of a guarantee is limited to extending the ending
477	date or event; therefore, the developer does not have the option
478	of changing the level of assessments guaranteed.
479	(3)  MAXIMUM LEVEL OF ASSESSMENTS.--The stated dollar
480	amount of the guarantee shall be an exact dollar amount for each
481	parcel identified in the declaration. Regardless of the stated
482	dollar amount of the guarantee, assessments charged to a member
483	shall not exceed the maximum obligation of the member based on
484	the total amount of the adopted budget and the member's
485	proportionate ownership share of the common elements.
486	(4)  CASH FUNDING REQUIREMENTS DURING GUARANTEE.--The cash
487	payments required from the guarantor during the guarantee period
488	shall be determined as follows:
489	(a)  If at any time during the guarantee period the funds
490	collected from member assessments at the guaranteed level and
491	other revenues collected by the association are not sufficient
492	to provide payment, on a timely basis, of all assessments,
493	including the full funding of the reserves unless properly
494	waived, the guarantor shall advance sufficient cash to the
495	association at the time such payments are due.
496	(b)  Expenses incurred in the production of nonassessment
497	revenues, not in excess of the nonassessment revenues, shall not
498	be included in the assessments. If the expenses attributable to
499	nonassessment revenues exceed nonassessment revenues, only the
500	excess expenses must be funded by the guarantor. Interest earned
501	on the investment of association funds may be used to pay the
502	income tax expense incurred as a result of the investment; such
503	expense shall not be charged to the guarantor; and the net
504	investment income shall be retained by the association. Each
505	such nonassessment revenue-generating activity shall be
506	considered separately. Any portion of the parcel assessments
507	that is budgeted for designated capital contributions of the
508	association shall not be used to pay operating expenses.
509	(5)  CALCULATION OF GUARANTOR'S FINAL OBLIGATION.--The
510	guarantor's total financial obligation to the association at the
511	end of the guarantee period shall be determined on the accrual
512	basis using the following formula: the guarantor shall pay any
513	deficits that exceed the guaranteed amount, less the total
514	regular periodic assessments earned by the association from the
515	members other than the guarantor during the guarantee period,
516	regardless of whether the actual level charged was less than the
517	maximum guaranteed amount.
518	(6)  EXPENSES.--Expenses incurred in the production of
519	nonassessment revenues, not in excess of the nonassessment
520	revenues, shall not be included in the operating expenses. If
521	the expenses attributable to nonassessment revenues exceed
522	nonassessment revenues, only the excess expenses must be funded
523	by the guarantor. Interest earned on the investment of
524	association funds may be used to pay the income tax expense
525	incurred as a result of the investment; such expense shall not
526	be charged to the guarantor; and the net investment income shall
527	be retained by the association. Each such nonassessment revenue-
528	generating activity shall be considered separately. Any portion
529	of the parcel assessment that is budgeted for designated capital
530	contributions of the association shall not be used to pay
531	operating expenses.
532	Section 8.  Subsection (3) is added to section 720.402,
533	Florida Statutes, to read:
534	720.402  Publication of false and misleading information.--
535	(3)  This section does not limit any rights provided by
536	common law.
537	Section 9.  This act shall take effect July 1, 2006.

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