HB 1373

1
A bill to be entitled
2An act relating to community associations; amending s.
3190.048, F.S.; providing disclosure requirements for
4certain contracts for the initial sale of a parcel of real
5property and each contract for the initial sale of a
6residential unit; amending s. 718.104, F.S.; revising
7required contents of a condominium declaration; amending
8s. 718.110, F.S.; requiring notice of proposed amendments
9to be provided to unit owners; amending s. 718.111, F.S.;
10providing requirements for condominium associations to
11access units for specified purposes; requiring official
12records of the association to be made available at certain
13locations; providing that certain records shall not be
14accessible to unit owners; removing the requirement that
15the association's annual financial report be provided only
16to unit owners providing a written request for the report;
17restricting a condominium association from waiving a
18financial report for more than 2 years; providing duties
19for condominium boards of administration in the event of
20certain casualties; providing that certain assessments may
21be made against unit owners under certain conditions;
22amending s. 718.112, F.S.; authorizing the board or
23membership to determine the composition of the board of
24administration under certain circumstances; requiring
25members of the board of administration to be unit owners,
26absent provisions indicating board member requirements;
27requiring the board to respond to certain inquiries by
28certified mail, return receipt requested; removing a
29provision allowing a condominium association to only
30respond once every 30 days to unit owner inquiries;
31providing board of administration and unit owners' meeting
32requirements; providing that no action shall be taken or
33resolution made without an open meeting of the board;
34requiring the board to address agenda items proposed by a
35petition of 20 percent of the unit owners; revising notice
36procedures; revising the terms of office and reelection of
37the members of a condominium association board; providing
38that certain persons providing notice of a meeting must
39provide an affidavit affirming that the notices were
40delivered; authorizing the association's representative to
41provide certain notices; removing a provision allowing an
42association to print or duplicate certain information
43sheets on both sides of the paper; providing for the
44securing of ballots; revising procedures relating to the
45filling of a vacancy on the board; removing a provision
46allowing an association to provide for different voting
47and election procedures in its bylaws; providing unit
48owners with the right to have items placed on the agenda
49of the annual meeting and voted upon under certain
50conditions; requiring the association to prepare an annual
51budget of estimated revenues and expenses; requiring the
52budget to include reserve accounts for certain purposes;
53requiring certain ballot statements to contain certain
54statements; requiring a vote to provide for no reserves or
55percentage of reserves to be made at certain times;
56authorizing the association to use reserve funds for
57nonscheduled purposes under certain conditions;
58prohibiting the board from applying for or accepting
59certain loans or lines of credit; requiring common
60expenses to be paid by the developer during a specified
61time; requiring that assessments be made against units on
62a quarter-annual or more frequent basis; providing that
63certain provisions shall not preclude the right of an
64association to accelerate assessments of certain owners
65delinquent in payment of common expenses; providing that
66accelerated assessments shall be due and payable after the
67claim of lien is filed; revising assessment requirements;
68revising procedures relating to the recall of a board
69member; deleting the requirement that the bylaws include
70an element for mandatory nonbinding arbitration; amending
71s. 718.113, F.S.; requiring boards of administration to
72adopt or restate hurricane shutter specifications yearly
73at the annual meeting; authorizing the board to install
74hurricane protection that complies with the applicable
75building code; requiring the board to have the condominium
76buildings periodically inspected for structural and
77electrical soundness by a professional engineer or
78professional architect registered in the state; requiring
79the inspector to provide a report to the association;
80prohibiting the board from impairing certain
81constitutional rights of unit owners; prohibiting the
82board from prohibiting the display of certain religiously
83mandated objects on the front-door area of a unit;
84amending s. 718.115, F.S.; providing that a bulk contract
85for basic service may be deemed a common expense; creating
86s. 718.1123, F.S.; requiring any complaint of abuse filed
87with the Division of Florida Land Sales, Condominiums,
88Homeowners' Associations, and Mobile Homes to be
89immediately investigated by the division; requiring the
90division to institute enforcement proceedings under
91certain circumstances; defining the term "abuse"; creating
92s. 718.1224, F.S.; prohibiting certain lawsuits arising
93from unit owners' appearances and presentations before a
94governmental entity; providing a definition; providing for
95award of damages and attorney's fees; amending s.
96718.1255, F.S.; requiring the division to promptly refer
97certain cases to mediation; amending s. 718.302, F.S.;
98conforming provisions; amending s. 718.3025, F.S.;
99providing requirements for certain contracts between a
100party contracting to provide maintenance or management
101services and an association; amending s. 718.3026, F.S.;
102providing that certain contracts between a service
103provider and an association shall not be for a term in
104excess of 3 years and shall not contain an automatic
105renewal clause; requiring that certain contracts for
106construction have approval from an attorney hired by the
107association; amending s. 718.303, F.S.; requiring hearings
108to levy fines to be held before a committee of unit owners
109who are not members of the board; requiring that persons
110subject to certain actions be notified of their violations
111in a certain manner; providing a timeframe in which a
112person must respond; authorizing the budget to include
113reserve accounts for capital expenditures and deferred
114maintenance; providing a formula for calculating the
115amount to be reserved; authorizing the association to
116adjust replacement reserve assessments annually;
117authorizing the developer to vote to waive the reserves or
118reduce the funding of reserves for a certain period;
119revising provisions relating to financial reporting;
120revising time periods in which the association must
121complete its reporting; amending s. 718.501, F.S.;
122requiring the division to prepare and disseminate a
123prospectus and other information for use by owners,
124purchasers, lessees, and developers of residential
125condominiums; providing that the board member training
126provided by the division shall be provided in conjunction
127with recommendations by the ombudsman; providing powers
128and duties of the division with respect to association
129violations; requiring associations to provide certain
130notice and to participate in certain educational training;
131providing a fine for failure to comply; requiring certain
132fees deposited by the division to be allocated and
133transferred to the Office of the Condominium Ombudsman;
134amending s. 718.5011, F.S.; restricting location of the
135Office of the Condominium Ombudsman; providing that the
136ombudsman shall exercise his or her policymaking and other
137functions independently of the Department of Business and
138Professional Regulation and without approval or control of
139the department; requiring the department to render
140administrative support for certain matters; requiring that
141revenues collected by the department for the Office of the
142Condominium Ombudsman be deposited in a separate fund or
143account under specified conditions; removing provisions
144prohibiting the ombudsman and staff from engaging in any
145other profession, serving as a representative or employee
146of any political party, or receiving remuneration for
147activities on behalf of political candidates; removing
148provisions prohibiting the ombudsman and staff from
149seeking public office unless resigned from the Office of
150the Condominium Ombudsman; amending s. 718.5012, F.S.;
151removing requirements that the ombudsman develop certain
152policies and procedures; providing additional powers and
153duties of the ombudsman; providing that the division shall
154process the ombudsman's recommendations and petitions in
155an expedited manner and defer to his or her findings;
156authorizing the ombudsman to order meetings between
157certain parties; authorizing the ombudsman to make
158recommendations to the division to pursue enforcement
159action in circuit court on behalf of a class of unit
160owners, lessees, or purchasers for certain purposes;
161authorizing the ombudsman to order that any aspect of an
162association election be conducted by an election monitor;
163authorizing the ombudsman to order an association to
164implement certain remedies; authorizing the ombudsman to
165order certain persons to cease and desist from unlawful
166practices; amending s. 718.504, F.S.; revising and
167providing information to be contained in the condominium
168prospectus or offering circular; amending s. 719.1055,
169F.S.; providing application of amendments restricting
170cooperative owners' rights relating to the rental of
171units; amending s. 720.301, F.S.; revising and providing
172definitions; amending s. 720.302, F.S.; revising the
173purpose, scope, and application of the chapter; providing
174legislative findings and intent; requiring the office to
175establish a process for collecting an annual fee for
176association members; requiring governing documents
177transferred from the developer to parcel owners to be
178approved by a two-thirds vote; amending s. 720.303, F.S.;
179revising powers and duties of homeowners' associations;
180prohibiting officers and directors from taking any action
181inconsistent with the declaration of covenants; revising
182requirements authorizing the association to participate in
183litigation; creating liability for officers and directors
184under certain circumstances; providing criteria for
185setback limits; revising procedures relating to board
186meetings; providing for notice of board meetings and the
187agenda; revising voting procedures; requiring board
188director votes to be recorded in the minutes; requiring
189the association to maintain certain documents; revising
190procedures relating to the inspection and copying of
191records; authorizing a fee; revising procedures used in
192preparing the association's annual financial report;
193prohibiting developers in control of a homeowners'
194association from commingling association funds with funds
195of a corporation for profit created by the developer;
196revising board director recall procedures, including
197voting procedures of such recalls; amending s. 720.304,
198F.S.; authorizing homeowners to display certain flags;
199providing criteria for the display of signs in certain
200areas; prohibiting associations from abridging the
201constitutional rights of homeowners relating to use of
202common areas; providing penalties; amending s. 720.305,
203F.S.; revising remedies at law or in equity against
204certain association officers or directors; amending s.
205720.3055, F.S.; removing a requirement that governing
206documents be in writing; providing that certain contracts
207are subject to competitive bid; amending s. 720.306, F.S.;
208deleting provisions relating to quorum at a meeting of
209members; revising provisions relating to the voting on an
210amendment of governing documents; requiring amendments to
211be submitted in their entirety; providing a timeframe for
212registered covenants and restrictions to be in a certain
213form; removing authority of governing documents to provide
214for the election of directors, to provide for special
215meetings, and to require notice of the annual meeting;
216requiring an annual meeting notice to include an agenda;
217providing members with the right to speak about any item
218on the agenda; authorizing members to speak at least once
219on each agenda item for a specified time; authorizing vote
220by limited proxy; providing guidelines for elections;
221requiring members to be provided with certain information
222regarding the elections; providing voting requirements;
223authorizing directors to fill vacancies; authorizing a
224specified amount of voting interests to petition the
225division to appoint an election monitor; providing
226eligibility requirements for candidates; authorizing any
227parcel owner to electronically record any meeting of the
228board or members; providing that the directors may adopt
229certain rules governing such recording but may not
230restrict an owner's right to record the meeting; amending
231s. 720.307, F.S., relating to transition of association
232control in a community; revising criteria with respect to
233election of members to the board of directors; requiring
234certain developers and owners to convey title to all
235common areas prior to turnover; revising requirements for
236turnover of documents; requiring certain information to be
237included in the records and for the records to be prepared
238in a specified manner; revising application to include
239certain associations; creating s. 720.3071, F.S.;
240requiring training of homeowners' association board
241members; amending s. 720.3075, F.S.; prohibiting
242association documents at the time of transition from
243preventing associations from functioning; prohibiting
244association documents at the time of transition from
245restricting an association's ability to amend association
246documents; prohibiting associations from restricting the
247use of hurricane shutters in certain circumstances;
248providing guidelines for the use of hurricane shutters;
249authorizing associations to enforce certain hurricane
250shutter restrictions; amending s. 720.3086, F.S.;
251requiring the annual financial report to be mailed to
252certain parcel owners; providing for the exclusive use of
253certain properties; amending s. 720.401, F.S.; requiring
254certain documents to be provided to prospective
255purchasers; revising information to be contained in a
256disclosure summary; creating s. 720.501, F.S.; providing
257powers and duties of the Division of Florida Land Sales,
258Condominiums, Homeowners' Associations, and Mobile Homes;
259authorizing the division to conduct certain
260investigations; authorizing certain officers and employees
261to administer oaths or affirmations and to subpoena
262witnesses and compel their attendance; authorizing the
263division to issue certain orders; authorizing the division
264to bring certain actions in circuit court; authorizing the
265division to impose civil penalties; authorizing the
266division to prepare and disseminate a prospectus;
267requiring the division to provide associations with
268certain documents; requiring the division to provide
269training programs for association board members and lot
270owners; requiring the division to develop a mediation
271certification program; requiring homeowners' associations
272to pay an annual fee to the division; creating s. 720.505,
273F.S.; creating the Advisory Council on Mandated
274Properties; providing for appointments by the President of
275the Senate, the Speaker of the House of Representatives,
276and the Governor; providing limited compensation and other
277terms of service; specifying functions; amending s.
27820.165, F.S.; redesignating the Division of Florida Land
279Sales, Condominiums, and Mobile Homes as the Division of
280Florida Land Sales, Condominiums, Homeowners'
281Associations, and Mobile Homes; amending ss. 73.073,
282190.009, 190.0485, 192.037, 213.053, 215.20, 326.002,
283326.006, 380.0651, 455.116, 475.455, 498.005, 498.019,
284498.047, 498.049, 509.512, 559.935, 718.103, 718.105,
285718.502, 718.504, 718.508, 718.509, 718.608, 719.103,
286719.1255, 719.501, 719.502, 719.504, 719.508, 719.608,
287721.05, 721.07, 721.08, 721.26, 721.28, 721.301, 723.003,
288723.006, 723.009, and 723.0611, F.S.; conforming
289provisions; requiring condominium developers to pay
290monthly maintenance fees on unsold condominium units that
291are rented; providing an effective date.
292
293Be It Enacted by the Legislature of the State of Florida:
294
295     Section 1.  Subsection (2) of section 20.165, Florida
296Statutes, is amended to read:
297     20.165  Department of Business and Professional
298Regulation.--There is created a Department of Business and
299Professional Regulation.
300     (2)  The following divisions of the Department of Business
301and Professional Regulation are established:
302     (a)  Division of Administration.
303     (b)  Division of Alcoholic Beverages and Tobacco.
304     (c)  Division of Certified Public Accounting.
305     1.  The director of the division shall be appointed by the
306secretary of the department, subject to approval by a majority
307of the Board of Accountancy.
308     2.  The offices of the division shall be located in
309Gainesville.
310     (d)  Division of Florida Land Sales, Condominiums,
311Homeowners' Associations, and Mobile Homes.
312     (e)  Division of Hotels and Restaurants.
313     (f)  Division of Mandated Properties.
314     (g)(f)  Division of Pari-mutuel Wagering.
315     (h)(g)  Division of Professions.
316     (i)(h)  Division of Real Estate.
317     1.  The director of the division shall be appointed by the
318secretary of the department, subject to approval by a majority
319of the Florida Real Estate Commission.
320     2.  The offices of the division shall be located in
321Orlando.
322     (j)(i)  Division of Regulation.
323     (k)(j)  Division of Technology, Licensure, and Testing.
324     Section 2.  Subsection (2) of section 73.073, Florida
325Statutes, is amended to read:
326     73.073  Eminent domain procedure with respect to
327condominium common elements.--
328     (2)  With respect to the exercise of eminent domain or a
329negotiated sale for the purchase or taking of a portion of the
330common elements of a condominium, the condemning authority shall
331have the responsibility of contacting the condominium
332association and acquiring the most recent rolls indicating the
333names of the unit owners or contacting the appropriate taxing
334authority to obtain the names of the owners of record on the tax
335rolls. Notification shall thereupon be sent by certified mail,
336return receipt requested, to the unit owners of record of the
337condominium units by the condemning authority indicating the
338intent to purchase or take the required property and requesting
339a response from the unit owner. The condemning authority shall
340be responsible for the expense of sending notification pursuant
341to this section. Such notice shall, at a minimum, include:
342     (a)  The name and address of the condemning authority.
343     (b)  A written or visual description of the property.
344     (c)  The public purpose for which the property is needed.
345     (d)  The appraisal value of the property.
346     (e)  A clear, concise statement relating to the unit
347owner's right to object to the taking or appraisal value and the
348procedures and effects of exercising that right.
349     (f)  A clear, concise statement relating to the power of
350the association to convey the property on behalf of the unit
351owners if no objection to the taking or appraisal value is
352raised, and the effects of this alternative on the unit owner.
353
354The Division of Florida Land Sales, Condominiums, Homeowners'
355Associations, and Mobile Homes of the Department of Business and
356Professional Regulation may adopt, by rule, a standard form for
357such notice and may require the notice to include any additional
358relevant information.
359     Section 3.  Subsection (2) of section 190.009, Florida
360Statutes, is amended to read:
361     190.009  Disclosure of public financing.--
362     (2)  The Division of Florida Land Sales, Condominiums,
363Homeowners' Associations, and Mobile Homes of the Department of
364Business and Professional Regulation shall ensure that
365disclosures made by developers pursuant to chapter 498 meet the
366requirements of subsection (1).
367     Section 4.  Section 190.048, Florida Statutes, is amended
368to read:
369     190.048  Sale of real estate within a district; required
370disclosure to purchaser.--
371     (1)(a)  Subsequent to the establishment of a district under
372this chapter, each contract for the initial sale of a parcel of
373real property and each contract for the initial sale of a
374residential unit within the district shall include as a separate
375addendum to the contract, immediately prior to the space
376reserved in the contract for the signature of the purchaser, the
377following disclosure statement in boldfaced and conspicuous type
378which is larger than the type in the remaining text of the
379contract: "THE   (Name of District)   COMMUNITY DEVELOPMENT
380DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES
381AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS
382PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF
383CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE
384SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES
385AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL
386GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND
387ASSESSMENTS PROVIDED FOR BY LAW."
388     (b)  The disclosure statement in paragraph (a) shall also
389fully disclose all covenants and restrictions to which the
390property is subject. This addendum shall disclose any existing
391agreement between a developer and other party that obligates the
392purchaser of the unit to additional taxes, assessments, or fees
393within 10 years following the sale of the unit. Such disclosure
394shall provide a reasonable estimate of the first 3 years for
395each tax, assessment, or fee. Such disclosure shall be provided
396to the purchaser within 10 days after the execution of the sales
397contract; otherwise, the contract may be voided at the election
398of the purchaser and any deposits shall be returned in full.
399However, such disclosure may be provided to the purchaser later
400than 10 days after the execution of the sales contract if the
401closing date has been extended by an additional 10 days.
402     (2)(a)  Failure to provide the disclosure statement as
403required in subsection (1) within 10 days shall constitute a
404rebuttable presumption of willful noncompliance with subsection
405(1) and shall result in a fine of $2,500 for each violation, up
406to a maximum of $10,000, payable to the prospective buyer, and
407shall include reasonable attorney's fees and collection costs,
408due 30 days after the execution or voiding of the sales
409contract.
410     (b)  The developer and sales agent shall submit an annual
411report to the Department of Community Affairs that certifies
412compliance with this section and payment of any related fines
413and criminal penalties for such noncompliance as may be passed
414by the Legislature. Failure by the developer or sales agent to
415provide an annual report shall result in a $50,000 fine payable
416to the department.
417     Section 5.  Section 190.0485, Florida Statutes, is amended
418to read:
419     190.0485  Notice of establishment.--Within 30 days after
420the effective date of a rule or ordinance establishing a
421community development district under this act, the district
422shall cause to be recorded in the property records in the county
423in which it is located a "Notice of Establishment of the
424__________ Community Development District." The notice shall, at
425a minimum, include the legal description of the district and a
426copy of the disclosure statement specified in s. 190.048(1)(a).
427     Section 6.  Paragraph (e) of subsection (6) of section
428192.037, Florida Statutes, is amended to read:
429     192.037  Fee timeshare real property; taxes and
430assessments; escrow.--
431     (6)
432     (e)  On or before May 1 of each year, a statement of
433receipts and disbursements of the escrow account must be filed
434with the Division of Florida Land Sales, Condominiums,
435Homeowners' Associations, and Mobile Homes of the Department of
436Business and Professional Regulation, which may enforce this
437paragraph pursuant to s. 721.26. This statement must
438appropriately show the amount of principal and interest in such
439account.
440     Section 7.  Paragraph (i) of subsection (8) of section
441213.053, Florida Statutes, is amended to read:
442     213.053  Confidentiality and information sharing.--
443     (8)  Notwithstanding any other provision of this section,
444the department may provide:
445     (i)  Information relative to chapters 212 and 326 to the
446Division of Florida Land Sales, Condominiums, Homeowners'
447Associations, and Mobile Homes of the Department of Business and
448Professional Regulation in the conduct of its official duties.
449
450Disclosure of information under this subsection shall be
451pursuant to a written agreement between the executive director
452and the agency. Such agencies, governmental or nongovernmental,
453shall be bound by the same requirements of confidentiality as
454the Department of Revenue. Breach of confidentiality is a
455misdemeanor of the first degree, punishable as provided by s.
456775.082 or s. 775.083.
457     Section 8.  Paragraph (d) of subsection (4) of section
458215.20, Florida Statutes, is amended to read:
459     215.20  Certain income and certain trust funds to
460contribute to the General Revenue Fund.--
461     (4)  The income of a revenue nature deposited in the
462following described trust funds, by whatever name designated, is
463that from which the appropriations authorized by subsection (3)
464shall be made:
465     (d)  Within the Department of Business and Professional
466Regulation:
467     1.  The Administrative Trust Fund.
468     2.  The Alcoholic Beverage and Tobacco Trust Fund.
469     3.  The Cigarette Tax Collection Trust Fund.
470     4.  The Division of Florida Land Sales, Condominiums,
471Homeowners' Associations, and Mobile Homes Trust Fund.
472     5.  The Hotel and Restaurant Trust Fund, with the exception
473of those fees collected for the purpose of funding of the
474hospitality education program as stated in s. 509.302.
475     6.  The Professional Regulation Trust Fund.
476     7.  The trust funds administered by the Division of Pari-
477mutuel Wagering.
478
479The enumeration of the foregoing moneys or trust funds shall not
480prohibit the applicability thereto of s. 215.24 should the
481Governor determine that for the reasons mentioned in s. 215.24
482the money or trust funds should be exempt herefrom, as it is the
483purpose of this law to exempt income from its force and effect
484when, by the operation of this law, federal matching funds or
485contributions or private grants to any trust fund would be lost
486to the state.
487     Section 9.  Subsection (2) of section 326.002, Florida
488Statutes, is amended to read:
489     326.002  Definitions.--As used in ss. 326.001-326.006, the
490term:
491     (2)  "Division" means the Division of Florida Land Sales,
492Condominiums, Homeowners' Associations, and Mobile Homes of the
493Department of Business and Professional Regulation.
494     Section 10.  Paragraph (d) of subsection (2) and subsection
495(3) of section 326.006, Florida Statutes, are amended to read:
496     326.006  Powers and duties of division.--
497     (2)  The division has the power to enforce and ensure
498compliance with the provisions of this chapter and rules adopted
499under this chapter relating to the sale and ownership of yachts
500and ships. In performing its duties, the division has the
501following powers and duties:
502     (d)  Notwithstanding any remedies available to a yacht or
503ship purchaser, if the division has reasonable cause to believe
504that a violation of any provision of this chapter or rule
505adopted under this chapter has occurred, the division may
506institute enforcement proceedings in its own name against any
507broker or salesperson or any of his or her assignees or agents,
508or against any unlicensed person or any of his or her assignees
509or agents, as follows:
510     1.  The division may permit a person whose conduct or
511actions are under investigation to waive formal proceedings and
512enter into a consent proceeding whereby orders, rules, or
513letters of censure or warning, whether formal or informal, may
514be entered against the person.
515     2.  The division may issue an order requiring the broker or
516salesperson or any of his or her assignees or agents, or
517requiring any unlicensed person or any of his or her assignees
518or agents, to cease and desist from the unlawful practice and
519take such affirmative action as in the judgment of the division
520will carry out the purposes of this chapter.
521     3.  The division may bring an action in circuit court on
522behalf of a class of yacht or ship purchasers for declaratory
523relief, injunctive relief, or restitution.
524     4.  The division may impose a civil penalty against a
525broker or salesperson or any of his or her assignees or agents,
526or against an unlicensed person or any of his or her assignees
527or agents, for any violation of this chapter or a rule adopted
528under this chapter. A penalty may be imposed for each day of
529continuing violation, but in no event may the penalty for any
530offense exceed $10,000. All amounts collected must be deposited
531with the Chief Financial Officer to the credit of the Division
532of Florida Land Sales, Condominiums, Homeowners' Associations,
533and Mobile Homes Trust Fund. If a broker, salesperson, or
534unlicensed person working for a broker, fails to pay the civil
535penalty, the division shall thereupon issue an order suspending
536the broker's license until such time as the civil penalty is
537paid or may pursue enforcement of the penalty in a court of
538competent jurisdiction. The order imposing the civil penalty or
539the order of suspension may not become effective until 20 days
540after the date of such order. Any action commenced by the
541division must be brought in the county in which the division has
542its executive offices or in the county where the violation
543occurred.
544     (3)  All fees must be deposited in the Division of Florida
545Land Sales, Condominiums, Homeowners' Associations, and Mobile
546Homes Trust Fund as provided by law.
547     Section 11.  Paragraph (a) of subsection (4) of section
548380.0651, Florida Statutes, is amended to read:
549     380.0651  Statewide guidelines and standards.--
550     (4)  Two or more developments, represented by their owners
551or developers to be separate developments, shall be aggregated
552and treated as a single development under this chapter when they
553are determined to be part of a unified plan of development and
554are physically proximate to one other.
555     (a)  The criteria of two of the following subparagraphs
556must be met in order for the state land planning agency to
557determine that there is a unified plan of development:
558     1.a.  The same person has retained or shared control of the
559developments;
560     b.  The same person has ownership or a significant legal or
561equitable interest in the developments; or
562     c.  There is common management of the developments
563controlling the form of physical development or disposition of
564parcels of the development.
565     2.  There is a reasonable closeness in time between the
566completion of 80 percent or less of one development and the
567submission to a governmental agency of a master plan or series
568of plans or drawings for the other development which is
569indicative of a common development effort.
570     3.  A master plan or series of plans or drawings exists
571covering the developments sought to be aggregated which have
572been submitted to a local general-purpose government, water
573management district, the Florida Department of Environmental
574Protection, or the Division of Florida Land Sales, Condominiums,
575Homeowners' Associations, and Mobile Homes for authorization to
576commence development. The existence or implementation of a
577utility's master utility plan required by the Public Service
578Commission or general-purpose local government or a master
579drainage plan shall not be the sole determinant of the existence
580of a master plan.
581     4.  The voluntary sharing of infrastructure that is
582indicative of a common development effort or is designated
583specifically to accommodate the developments sought to be
584aggregated, except that which was implemented because it was
585required by a local general-purpose government; water management
586district; the Department of Environmental Protection; the
587Division of Florida Land Sales, Condominiums, Homeowners'
588Associations, and Mobile Homes; or the Public Service
589Commission.
590     5.  There is a common advertising scheme or promotional
591plan in effect for the developments sought to be aggregated.
592     Section 12.  Subsection (5) of section 455.116, Florida
593Statutes, is amended to read:
594     455.116  Regulation trust funds.--The following trust funds
595shall be placed in the department:
596     (5)  Division of Florida Land Sales, Condominiums,
597Homeowners' Associations, and Mobile Homes Trust Fund.
598     Section 13.  Section 475.455, Florida Statutes, is amended
599to read:
600     475.455  Exchange of disciplinary information.--The
601commission shall inform the Division of Florida Land Sales,
602Condominiums, Homeowners' Associations, and Mobile Homes of the
603Department of Business and Professional Regulation of any
604disciplinary action the commission has taken against any of its
605licensees. The division shall inform the commission of any
606disciplinary action the division has taken against any broker or
607sales associate registered with the division.
608     Section 14.  Subsection (5) of section 498.005, Florida
609Statutes, is amended to read:
610     498.005  Definitions.--As used in this chapter, unless the
611context otherwise requires, the term:
612     (5)  "Division" means the Division of Florida Land Sales,
613Condominiums, Homeowners' Associations, and Mobile Homes of the
614Department of Business and Professional Regulation.
615     Section 15.  Section 498.019, Florida Statutes, is amended
616to read:
617     498.019  Division of Florida Land Sales, Condominiums,
618Homeowners' Associations, and Mobile Homes Trust Fund.--
619     (1)  There is created within the State Treasury the
620Division of Florida Land Sales, Condominiums, Homeowners'
621Associations, and Mobile Homes Trust Fund to be used for the
622administration and operation of this chapter and chapters 718,
623719, 721, and 723 by the division.
624     (2)  All moneys collected by the division from fees, fines,
625or penalties or from costs awarded to the division by a court
626shall be paid into the Division of Florida Land Sales,
627Condominiums, Homeowners' Associations, and Mobile Homes Trust
628Fund. The Legislature shall appropriate funds from this trust
629fund sufficient to carry out the provisions of this chapter and
630the provisions of law with respect to each category of business
631covered by this trust fund. The division shall maintain separate
632revenue accounts in the trust fund for each of the businesses
633regulated by the division. The division shall provide for the
634proportionate allocation among the accounts of expenses incurred
635by the division in the performance of its duties with respect to
636each of these businesses. As part of its normal budgetary
637process, the division shall prepare an annual report of revenue
638and allocated expenses related to the operation of each of these
639businesses which may be used to determine fees charged by the
640division. This subsection shall operate pursuant to the
641provisions of s. 215.20.
642     Section 16.  Paragraph (a) of subsection (8) of section
643498.047, Florida Statutes, is amended to read:
644     498.047  Investigations.--
645     (8)(a)  Information held by the Division of Florida Land
646Sales, Condominiums, Homeowners' Associations, and Mobile Homes
647relative to an investigation pursuant to this chapter, including
648any consumer complaint, is confidential and exempt from s.
649119.07(1) and s. 24(a), Art. I of the State Constitution, until
65010 days after a notice to show cause has been filed by the
651division, or, in the case in which no notice to show cause is
652filed, the investigation is completed or ceases to be active.
653For purposes of this section, an investigation shall be
654considered "active" so long as the division or any law
655enforcement or administrative agency or regulatory organization
656is proceeding with reasonable dispatch and has a reasonable good
657faith belief that the investigation may lead to the filing of an
658administrative, civil, or criminal proceeding or to the denial
659or conditional grant of a license or registration. However, in
660response to a specific inquiry about the registration status of
661a registered or unregistered subdivider, the division may
662disclose the existence and the status of an active
663investigation. This subsection shall not be construed to
664prohibit disclosure of information which is required by law to
665be filed with the division and which, but for the investigation,
666would be subject to s. 119.07(1).
667     Section 17.  Subsection (5) of section 498.049, Florida
668Statutes, is amended to read:
669     498.049  Suspension; revocation; civil penalties.--
670     (5)  Each person who materially participates in any offer
671or disposition of any interest in subdivided lands in violation
672of this chapter or relevant rules involving fraud, deception,
673false pretenses, misrepresentation, or false advertising or the
674disposition, concealment, or diversion of any funds or assets of
675any person which adversely affects the interests of a purchaser
676of any interest in subdivided lands, and who directly or
677indirectly controls a subdivider or is a general partner,
678officer, director, agent, or employee of a subdivider shall also
679be liable under this subsection jointly and severally with and
680to the same extent as the subdivider, unless that person did not
681know, and in the exercise of reasonable care could not have
682known, of the existence of the facts creating the alleged
683liability. Among these persons a right of contribution shall
684exist, except that a creditor of a subdivider shall not be
685jointly and severally liable unless the creditor has assumed
686managerial or fiduciary responsibility in a manner related to
687the basis for the liability of the subdivider under this
688subsection. Civil penalties shall be limited to $10,000 for each
689offense, and all amounts collected shall be deposited with the
690Chief Financial Officer to the credit of the Division of Florida
691Land Sales, Condominiums, Homeowners' Associations, and Mobile
692Homes Trust Fund. No order requiring the payment of a civil
693penalty shall become effective until 20 days after the date of
694the order, unless otherwise agreed in writing by the person on
695whom the penalty is imposed.
696     Section 18.  Section 509.512, Florida Statutes, is amended
697to read:
698     509.512  Timeshare plan developer and exchange company
699exemption.--Sections 509.501-509.511 do not apply to a developer
700of a timeshare plan or an exchange company approved by the
701Division of Florida Land Sales, Condominiums, Homeowners'
702Associations, and Mobile Homes pursuant to chapter 721, but only
703to the extent that the developer or exchange company engages in
704conduct regulated under chapter 721.
705     Section 19.  Paragraph (h) of subsection (1) of section
706559.935, Florida Statutes, is amended to read:
707     559.935  Exemptions.--
708     (1)  This part does not apply to:
709     (h)  A developer of a timeshare plan or an exchange company
710approved by the Division of Florida Land Sales, Condominiums,
711Homeowners' Associations, and Mobile Homes pursuant to chapter
712721, but only to the extent that the developer or exchange
713company engages in conduct regulated under chapter 721; or
714     Section 20.  Subsection (17) of section 718.103, Florida
715Statutes, is amended to read:
716     718.103  Definitions.--As used in this chapter, the term:
717     (17)  "Division" means the Division of Florida Land Sales,
718Condominiums, Homeowners' Associations, and Mobile Homes of the
719Department of Business and Professional Regulation.
720     Section 21.  Paragraph (f) of subsection (4) of section
721718.104, Florida Statutes, is amended to read:
722     718.104  Creation of condominiums; contents of
723declaration.--Every condominium created in this state shall be
724created pursuant to this chapter.
725     (4)  The declaration must contain or provide for the
726following matters:
727     (f)  The undivided share of ownership of the common
728elements and common surplus of the condominium that is
729appurtenant to each unit stated as a percentage or a fraction of
730the whole. In the declaration of condominium for residential
731condominiums created after April 1, 2007 1992, the ownership
732share of the common elements assigned to each residential unit
733shall be based either upon the total square footage of each
734residential unit in uniform relationship to the total square
735footage of each other residential unit in the condominium or on
736an equal fractional basis.
737     Section 22.  Paragraph (c) of subsection (4) of section
738718.105, Florida Statutes, is amended to read:
739     718.105  Recording of declaration.--
740     (4)
741     (c)  If the sum of money held by the clerk has not been
742paid to the developer or association as provided in paragraph
743(b) by 3 years after the date the declaration was originally
744recorded, the clerk in his or her discretion may notify, in
745writing, the registered agent of the association that the sum is
746still available and the purpose for which it was deposited. If
747the association does not record the certificate within 90 days
748after the clerk has given the notice, the clerk may disburse the
749money to the developer. If the developer cannot be located, the
750clerk shall disburse the money to the Division of Florida Land
751Sales, Condominiums, Homeowners' Associations, and Mobile Homes
752for deposit in the Division of Florida Land Sales, Condominiums,
753Homeowners' Associations, and Mobile Homes Trust Fund.
754     Section 23.  Paragraph (d) is added to subsection (1) of
755section 718.110, Florida Statutes, to read:
756     718.110  Amendment of declaration; correction of error or
757omission in declaration by circuit court.--
758     (1)
759     (d)  Notice of a proposed amendment to the declaration
760shall be sent to the unit owner by certified mail.
761     Section 24.  Subsection (5), paragraph (b) of subsection
762(7), paragraphs (b) and (c) of subsection (12), and subsection
763(13) of section 718.111, Florida Statutes, are amended, and
764subsection (15) is added to that section, to read:
765     718.111  The association.--
766     (5)  RIGHT OF ACCESS TO UNITS.--The association has the
767irrevocable right of access to each unit during reasonable
768hours, when necessary for the maintenance, repair, or
769replacement of any common elements or of any portion of a unit
770to be maintained by the association pursuant to the declaration
771or as necessary to prevent damage to the common elements or to a
772unit or units. Except in cases of emergency, the association
773must give the unit owner 24 hours' advance written notice of
774intent to access the unit and such access must include two
775persons, one of whom must be a member of the board of
776administration.
777     (7)  TITLE TO PROPERTY.--
778     (b)  Subject to the provisions of s. 718.112(2)(l)(m), the
779association, through its board, has the limited power to convey
780a portion of the common elements to a condemning authority for
781the purposes of providing utility easements, right-of-way
782expansion, or other public purposes, whether negotiated or as a
783result of eminent domain proceedings.
784     (12)  OFFICIAL RECORDS.--
785     (b)  The official records of the association shall be
786maintained within the state. The records of the association
787shall be made available to a unit owner, at a location within 30
788miles' driving distance of the condominium property, within 5
789working days after receipt of written request by the board or
790its designee. This paragraph may be complied with by having a
791copy of the official records of the association available for
792inspection or copying on the condominium property or association
793property.
794     (c)  The official records of the association are open to
795inspection by any association member or the authorized
796representative of such member at all reasonable times. The right
797to inspect the records includes the right to make or obtain
798copies, at the reasonable expense, if any, of the association
799member. The association may adopt reasonable rules regarding the
800frequency, time, location, notice, and manner of record
801inspections and copying. The failure of an association to
802provide the records within 10 working days after receipt of a
803written request shall create a rebuttable presumption that the
804association willfully failed to comply with this paragraph. A
805unit owner who is denied access to official records is entitled
806to the actual damages or minimum damages for the association's
807willful failure to comply with this paragraph. The minimum
808damages shall be $50 per calendar day up to 10 days, the
809calculation to begin on the 11th working day after receipt of
810the written request. The failure to permit inspection of the
811association records as provided herein entitles any person
812prevailing in an enforcement action to recover reasonable
813attorney's fees from the person in control of the records who,
814directly or indirectly, knowingly denied access to the records
815for inspection. The association shall maintain an adequate
816number of copies of the declaration, articles of incorporation,
817bylaws, and rules, and all amendments to each of the foregoing,
818as well as the question and answer sheet provided for in s.
819718.504 and year-end financial information required in this
820section on the condominium property to ensure their availability
821to unit owners and prospective purchasers, and may charge its
822actual costs for preparing and furnishing these documents to
823those requesting the same. Notwithstanding the provisions of
824this paragraph, the following records shall not be accessible to
825unit owners:
826     1.  Any record protected by the lawyer-client privilege as
827described in s. 90.502; and any record protected by the work-
828product privilege, including any record prepared by an
829association attorney or prepared at the attorney's express
830direction; which reflects a mental impression, conclusion,
831litigation strategy, or legal theory of the attorney or the
832association, and which was prepared exclusively for civil or
833criminal litigation or for adversarial administrative
834proceedings, or which was prepared in anticipation of imminent
835civil or criminal litigation or imminent adversarial
836administrative proceedings until the conclusion of the
837litigation or adversarial administrative proceedings.
838     2.  Information obtained by an association in connection
839with the approval of the lease, sale, or other transfer of a
840unit.
841     3.  Medical records of unit owners.
842     4.  Social security numbers, driver's license numbers,
843credit card numbers, and other personal identifying information
844of unit owners, occupants, or tenants.
845     (13)  FINANCIAL REPORTING.--Within 90 days after the end of
846the fiscal year, or annually on a date provided in the bylaws,
847the association shall prepare and complete, or contract for the
848preparation and completion of, a financial report for the
849preceding fiscal year. Within 21 days after the final financial
850report is completed by the association or received from the
851third party, but not later than 120 days after the end of the
852fiscal year or other date as provided in the bylaws, the
853association shall mail to each unit owner at the address last
854furnished to the association by the unit owner, or hand deliver
855to each unit owner, a copy of the financial report or a notice
856that a copy of the financial report will be mailed or hand
857delivered to the unit owner, without charge, upon receipt of a
858written request from the unit owner. The division shall adopt
859rules setting forth uniform accounting principles and standards
860to be used by all associations and shall adopt rules addressing
861financial reporting requirements for multicondominium
862associations. In adopting such rules, the division shall
863consider the number of members and annual revenues of an
864association. Financial reports shall be prepared as follows:
865     (a)  An association that meets the criteria of this
866paragraph shall prepare or cause to be prepared a complete set
867of financial statements in accordance with generally accepted
868accounting principles. The financial statements shall be based
869upon the association's total annual revenues, as follows:
870     1.  An association with total annual revenues of $100,000
871or more, but less than $200,000, shall prepare compiled
872financial statements.
873     2.  An association with total annual revenues of at least
874$200,000, but less than $400,000, shall prepare reviewed
875financial statements.
876     3.  An association with total annual revenues of $400,000
877or more shall prepare audited financial statements.
878     (b)1.  An association with total annual revenues of less
879than $100,000 shall prepare a report of cash receipts and
880expenditures.
881     2.  An association which operates less than 50 units,
882regardless of the association's annual revenues, shall prepare a
883report of cash receipts and expenditures in lieu of financial
884statements required by paragraph (a).
885     3.  A report of cash receipts and disbursements must
886disclose the amount of receipts by accounts and receipt
887classifications and the amount of expenses by accounts and
888expense classifications, including, but not limited to, the
889following, as applicable: costs for security, professional and
890management fees and expenses, taxes, costs for recreation
891facilities, expenses for refuse collection and utility services,
892expenses for lawn care, costs for building maintenance and
893repair, insurance costs, administration and salary expenses, and
894reserves accumulated and expended for capital expenditures,
895deferred maintenance, and any other category for which the
896association maintains reserves.
897     (c)  An association may prepare or cause to be prepared,
898without a meeting of or approval by the unit owners:
899     1.  Compiled, reviewed, or audited financial statements, if
900the association is required to prepare a report of cash receipts
901and expenditures;
902     2.  Reviewed or audited financial statements, if the
903association is required to prepare compiled financial
904statements; or
905     3.  Audited financial statements if the association is
906required to prepare reviewed financial statements.
907     (d)  If approved by a majority of the voting interests
908present at a properly called meeting of the association, an
909association may prepare or cause to be prepared:
910     1.  A report of cash receipts and expenditures in lieu of a
911compiled, reviewed, or audited financial statement;
912     2.  A report of cash receipts and expenditures or a
913compiled financial statement in lieu of a reviewed or audited
914financial statement; or
915     3.  A report of cash receipts and expenditures, a compiled
916financial statement, or a reviewed financial statement in lieu
917of an audited financial statement.
918
919Such meeting and approval must occur prior to the end of the
920fiscal year and is effective only for the fiscal year in which
921the vote is taken. With respect to an association to which the
922developer has not turned over control of the association, all
923unit owners, including the developer, may vote on issues related
924to the preparation of financial reports for the first 2 fiscal
925years of the association's operation, beginning with the fiscal
926year in which the declaration is recorded. Thereafter, all unit
927owners except the developer may vote on such issues until
928control is turned over to the association by the developer. An
929association or board of administration may not waive the
930financial reporting requirements of this section for more than 2
931years.
932     (15)  RECONSTRUCTION AFTER CASUALTY.--
933     (a)  In the event the condominium property and units are
934damaged after a casualty, the board of administration shall
935obtain reliable and detailed estimates of the cost necessary to
936repair and replace the damaged property to substantially the
937same condition existing immediately prior to the casualty and
938substantially in accordance with the original plans and
939specifications of the condominium as soon as possible and not
940later than 60 days after the casualty. If the damage to the
941condominium property exceeds 50 percent of the property's value,
942the condominium may be terminated unless 75 percent of the unit
943owners agree to reconstruction and repair within 90 days after
944the casualty.
945     (b)  The board of administration shall engage the services
946of a registered architect and knowledgeable construction
947specialists to prepare any necessary plans and specifications
948and shall receive and approve bids for reconstruction, execute
949all necessary contracts for restoration, and arrange for
950disbursement of construction funds, the approval of work, and
951all other matters pertaining to the repairs and reconstruction
952required.
953     (c)  If the proceeds of the hazard insurance policy
954maintained by the association pursuant to paragraph (11)(b) are
955insufficient to pay the estimated costs of reconstruction or at
956any time during reconstruction and repair, assessments shall be
957made against all unit owners according to their share of the
958common elements and expenses as set forth in the declaration of
959condominium.
960     (d)  Assessments shall be made against unit owners for
961damage to their units according to the cost of reconstruction or
962repair of their respective units. The assessments shall be
963levied and collected as all other assessments are provided for
964in this chapter.
965     Section 25.  Subsection (2) of section 718.112, Florida
966Statutes, is amended to read:
967     718.112  Bylaws.--
968     (2)  REQUIRED PROVISIONS.--The bylaws of the association
969shall provide for the following and, if they do not do so, shall
970be deemed to include the following:
971     (a)  Administration.--
972     1.  The form of administration of the association shall be
973described indicating the title of the officers and board of
974administration and specifying the powers, duties, manner of
975selection and removal, and compensation, if any, of officers and
976boards. In the absence of such a provision or determination by
977the board or membership, the board of administration shall be
978composed of five members who are unit owners, except in the case
979of a condominium which has five or fewer units, in which case in
980a not-for-profit corporation the board shall consist of not
981fewer than three members who are unit owners. In the absence of
982provisions to the contrary in the bylaws, the board of
983administration shall have a president, a secretary, and a
984treasurer, who shall perform the duties of such officers
985customarily performed by officers of corporations. Unless
986prohibited in the bylaws, the board of administration may
987appoint other officers and grant them the duties it deems
988appropriate. Unless otherwise provided in the bylaws, the
989officers shall serve without compensation and at the pleasure of
990the board of administration. Unless otherwise provided in the
991bylaws, the members of the board shall serve without
992compensation.
993     2.  When a unit owner files a written inquiry by certified
994mail with the board of administration, the board shall respond
995in writing by certified mail, return receipt requested, to the
996unit owner within 30 days after of receipt of the inquiry. The
997board's response shall either give a substantive response to the
998inquirer, notify the inquirer that a legal opinion has been
999requested, or notify the inquirer that advice has been requested
1000from the division. If the board requests advice from the
1001division, the board shall, within 10 days after of its receipt
1002of the advice, provide in writing by certified mail a
1003substantive response to the inquirer. If a legal opinion is
1004requested, the board shall, within 60 days after the receipt of
1005the inquiry, provide in writing by certified mail a substantive
1006response to the inquiry. The failure to provide a substantive
1007response to the inquiry as provided herein precludes the board
1008from recovering attorney's fees and costs in any subsequent
1009litigation, administrative proceeding, or arbitration arising
1010out of the inquiry. The association may through its board of
1011administration adopt reasonable rules and regulations regarding
1012the frequency and manner of responding to unit owner inquiries,
1013one of which may be that the association is only obligated to
1014respond to one written inquiry per unit in any given 30-day
1015period. In such a case, any additional inquiry or inquiries must
1016be responded to in the subsequent 30-day period, or periods, as
1017applicable.
1018     (b)  Quorum; voting requirements; proxies.--
1019     1.  Unless a lower number is provided in the bylaws, the
1020percentage of voting interests required to constitute a quorum
1021at a meeting of the members shall be a majority of the voting
1022interests. Unless otherwise provided in this chapter or in the
1023declaration, articles of incorporation, or bylaws, and except as
1024provided in subparagraph (d)3., decisions shall be made by
1025owners of a majority of the voting interests represented at a
1026meeting at which a quorum is present.
1027     2.  Except as specifically otherwise provided herein, after
1028January 1, 1992, unit owners may not vote by general proxy, but
1029may vote by limited proxies substantially conforming to a
1030limited proxy form adopted by the division. Limited proxies and
1031general proxies may be used to establish a quorum. Limited
1032proxies shall be used for votes taken to waive or reduce
1033reserves in accordance with subparagraph (f)2.; for votes taken
1034to waive the financial reporting requirements of s. 718.111(13);
1035for votes taken to amend the declaration pursuant to s. 718.110;
1036for votes taken to amend the articles of incorporation or bylaws
1037pursuant to this section; and for any other matter for which
1038this chapter requires or permits a vote of the unit owners.
1039Except as provided in paragraph (d), after January 1, 1992, No
1040proxy, limited or general, shall be used in the election of
1041board members. General proxies may be used for other matters for
1042which limited proxies are not required, and may also be used in
1043voting for nonsubstantive changes to items for which a limited
1044proxy is required and given. Notwithstanding the provisions of
1045this subparagraph, unit owners may vote in person at unit owner
1046meetings. Nothing contained herein shall limit the use of
1047general proxies or require the use of limited proxies for any
1048agenda item or election at any meeting of a timeshare
1049condominium association.
1050     3.  Any proxy given shall be effective only for the
1051specific meeting for which originally given and any lawfully
1052adjourned meetings thereof. In no event shall any proxy be valid
1053for a period longer than 90 days after the date of the first
1054meeting for which it was given. Every proxy is revocable at any
1055time at the pleasure of the unit owner executing it.
1056     4.  A member of the board of administration or a committee
1057may submit in writing his or her agreement or disagreement with
1058any action taken at a meeting that the member did not attend.
1059This agreement or disagreement may not be used as a vote for or
1060against the action taken and may not be used for the purposes of
1061creating a quorum.
1062     5.  When any of the board or committee members meet by
1063telephone conference, those board or committee members attending
1064by telephone conference may be counted toward obtaining a quorum
1065and may vote by telephone. A telephone speaker must be used so
1066that the conversation of those board or committee members
1067attending by telephone may be heard by the board or committee
1068members attending in person as well as by any unit owners
1069present at a meeting.
1070     (c)  Board of administration meetings.--Meetings of the
1071board of administration at which a quorum of the members is
1072present shall be open to all unit owners. No action shall be
1073taken or resolution made without an open meeting of the board of
1074administration. The board of administration shall address agenda
1075items proposed by a petition of 20 percent of the unit owners.
1076Unless otherwise provided in the bylaws, boards of
1077administration shall use rules of parliamentary procedure in
1078conducting all association meetings and business. A unit owner's
1079facsimile signature shall constitute the unit owner's original
1080signature in any matter under this chapter that requires the
1081unit owner's signature. Correspondence from the board of
1082administration to unit owners shall be accomplished by the same
1083delivery method used by the unit owner except as otherwise
1084provided in this paragraph. Any unit owner may tape record or
1085videotape meetings of the board of administration. The right to
1086attend such meetings includes the right to speak at such
1087meetings with reference to all designated agenda items. The
1088division shall adopt reasonable rules governing the tape
1089recording and videotaping of the meeting. The association may
1090adopt written reasonable rules governing the frequency,
1091duration, and manner of unit owner statements. Adequate notice
1092of all meetings, which notice shall specifically incorporate an
1093identification of agenda items, shall be posted conspicuously on
1094the condominium property at least 48 continuous hours preceding
1095the meeting except in an emergency. Any item not included on the
1096notice may be taken up on an emergency basis by at least a
1097majority plus one of the members of the board or by a petition
1098of 20 percent of the unit owners. Such emergency action shall be
1099noticed and ratified at the next regular meeting of the board.
1100However, written notice of any meeting at which nonemergency
1101special assessments, or at which amendment to rules regarding
1102unit use, will be considered shall be mailed, delivered, or
1103electronically transmitted to the unit owners and posted
1104conspicuously on the condominium property not less than 14 days
1105prior to the meeting. Evidence of compliance with this 14-day
1106notice shall be made by an affidavit executed by the person
1107providing the notice and filed among the official records of the
1108association. Upon notice to the unit owners, the board shall by
1109duly adopted rule designate a specific location on the
1110condominium property or association property upon which all
1111notices of board meetings shall be posted. If there is no
1112condominium property or association property upon which notices
1113can be posted, notices of board meetings shall be mailed,
1114delivered, or electronically transmitted at least 14 days before
1115the meeting to the owner of each unit. In lieu of or in addition
1116to the physical posting of notice of any meeting of the board of
1117administration on the condominium property, the association may,
1118by reasonable rule, adopt a procedure for conspicuously posting
1119and repeatedly broadcasting the notice and the agenda on a
1120closed-circuit cable television system serving the condominium
1121association. However, if broadcast notice is used in lieu of a
1122notice posted physically on the condominium property, the notice
1123and agenda must be broadcast at least four times every broadcast
1124hour of each day that a posted notice is otherwise required
1125under this section. When broadcast notice is provided, the
1126notice and agenda must be broadcast in a manner and for a
1127sufficient continuous length of time so as to allow an average
1128reader to observe the notice and read and comprehend the entire
1129content of the notice and the agenda. Notice of any meeting in
1130which regular or special assessments against unit owners are to
1131be considered for any reason shall specifically state contain a
1132statement that assessments will be considered and the nature,
1133cost, and breakdown of any such assessments. Meetings of a
1134committee to take final action on behalf of the board or make
1135recommendations to the board regarding the association budget
1136are subject to the provisions of this paragraph. Meetings of a
1137committee that does not take final action on behalf of the board
1138or make recommendations to the board regarding the association
1139budget are subject to the provisions of this section, unless
1140those meetings are exempted from this section by the bylaws of
1141the association. Notwithstanding any other law, the requirement
1142that board meetings and committee meetings be open to the unit
1143owners is inapplicable to meetings between the board or a
1144committee and the association's attorney, with respect to
1145proposed or pending litigation, when the meeting is held for the
1146purpose of seeking or rendering legal advice.
1147     (d)  Unit owner meetings.--
1148     1.  There shall be an annual meeting of the unit owners.
1149Unless the bylaws provide otherwise, a vacancy on the board
1150caused by the expiration of a director's term shall be filled by
1151electing a new board member, and the election shall be by secret
1152ballot; however, if the number of vacancies equals or exceeds
1153the number of candidates, no election is required. If there is
1154no provision in the bylaws for terms of the members of the
1155board, the terms of all members of the board shall expire upon
1156the election of their successors at the annual meeting. Any unit
1157owner desiring to be a candidate for board membership shall
1158comply with subparagraph 3. The only prohibition against
1159eligibility for board membership shall be for a person who has
1160been convicted of any felony by any court of record in the
1161United States and who has not had his or her right to vote
1162restored pursuant to law in the jurisdiction of his or her
1163residence is not eligible for board membership. The validity of
1164an action by the board is not affected if it is later determined
1165that a member of the board is ineligible for board membership
1166due to having been convicted of a felony.
1167     2.  The bylaws shall provide the method of calling meetings
1168of unit owners, including annual meetings. Written notice, which
1169notice must include an agenda, shall be mailed, hand delivered,
1170or electronically transmitted to each unit owner at least 14
1171days prior to the annual meeting and shall be posted in a
1172conspicuous place on the condominium property at least 14
1173continuous days preceding the annual meeting. Upon notice to the
1174unit owners, the board shall by duly adopted rule designate a
1175specific location on the condominium property or association
1176property upon which all notices of unit owner meetings shall be
1177posted; however, if there is no condominium property or
1178association property upon which notices can be posted, this
1179requirement does not apply. In lieu of or in addition to the
1180physical posting of notice of any meeting of the unit owners on
1181the condominium property, the association may, by reasonable
1182rule, adopt a procedure for conspicuously posting and repeatedly
1183broadcasting the notice and the agenda on a closed-circuit cable
1184television system serving the condominium association. However,
1185if broadcast notice is used in lieu of a notice posted
1186physically on the condominium property, the notice and agenda
1187must be broadcast at least four times every broadcast hour of
1188each day that a posted notice is otherwise required under this
1189section. When broadcast notice is provided, the notice and
1190agenda must be broadcast in a manner and for a sufficient
1191continuous length of time so as to allow an average reader to
1192observe the notice and read and comprehend the entire content of
1193the notice and the agenda. Unless a unit owner waives in writing
1194the right to receive notice of the annual meeting, such notice
1195shall be hand delivered, mailed, or electronically transmitted
1196to each unit owner. Notice for meetings and notice for all other
1197purposes shall be mailed to each unit owner at the address last
1198furnished to the association by the unit owner, or hand
1199delivered to each unit owner. However, if a unit is owned by
1200more than one person, the association shall provide notice, for
1201meetings and all other purposes, to that one address which the
1202developer initially identifies for that purpose and thereafter
1203as one or more of the owners of the unit shall so advise the
1204association in writing, or if no address is given or the owners
1205of the unit do not agree, to the address provided on the deed of
1206record. An officer of the association, or the manager or other
1207person providing the first notice of the association meeting,
1208and the second notice as provided for in subparagraph 3., shall
1209provide an affidavit or United States Postal Service certificate
1210of mailing, to be included in the official records of the
1211association affirming that the notices were notice was mailed or
1212hand delivered, in accordance with this provision.
1213     3.  The members of the board shall be elected by written
1214ballot or voting machine. Proxies shall in no event be used in
1215electing the board, either in general elections or elections to
1216fill vacancies caused by recall, resignation, or otherwise,
1217unless otherwise provided in this chapter. Not less than 60 days
1218before a scheduled election, the association or its
1219representative shall mail, deliver, or electronically transmit,
1220whether by separate association mailing or included in another
1221association mailing, delivery, or transmission, including
1222regularly published newsletters, to each unit owner entitled to
1223a vote, a first notice of the date of the election. Any unit
1224owner or other eligible person desiring to be a candidate for
1225the board must give written notice to the association or its
1226representative not less than 40 days before a scheduled
1227election. Together with the written notice and agenda as set
1228forth in subparagraph 2., the association or its representative
1229shall mail, deliver, or electronically transmit a second notice
1230of the election to all unit owners entitled to vote therein,
1231together with a ballot which shall list all candidates. Upon
1232request of a candidate, the association or its representative
1233shall include an information sheet, no larger than 81/2 inches
1234by 11 inches, which must be furnished by the candidate not less
1235than 35 days before the election, to be included with the
1236mailing, delivery, or transmission of the ballot, with the costs
1237of mailing, delivery, or electronic transmission and copying to
1238be borne by the association. The association or its
1239representative is not liable for the contents of the information
1240sheets prepared by the candidates. In order to reduce costs, the
1241association may print or duplicate the information sheets on
1242both sides of the paper. The division shall by rule establish
1243voting procedures consistent with the provisions contained
1244herein, including rules establishing procedures for giving
1245notice by electronic transmission and rules providing for the
1246secrecy of ballots. All ballot envelopes must be placed in a
1247locked or sealed ballot drop box immediately upon receipt, and
1248the box shall not be opened in advance of the election meeting.
1249Elections shall be decided by a plurality of those ballots cast.
1250There shall be no quorum requirement; however, at least 20
1251percent of the eligible voters must cast a ballot in order to
1252have a valid election of members of the board. No unit owner
1253shall permit any other person to vote his or her ballot, and any
1254such ballots improperly cast shall be deemed invalid, provided
1255any unit owner who violates this provision may be fined by the
1256association in accordance with s. 718.303. A unit owner who
1257needs assistance in casting the ballot for the reasons stated in
1258s. 101.051 may obtain assistance in casting the ballot. The
1259regular election shall occur on the date of the annual meeting.
1260The provisions of this subparagraph shall not apply to timeshare
1261condominium associations. Notwithstanding the provisions of this
1262subparagraph, an election is not required unless more candidates
1263file notices of intent to run or are nominated than board
1264vacancies exist.
1265     4.  Any approval by unit owners called for by this chapter
1266or the applicable declaration or bylaws, including, but not
1267limited to, the approval requirement in s. 718.111(8), shall be
1268made at a duly noticed meeting of unit owners and shall be
1269subject to all requirements of this chapter or the applicable
1270condominium documents relating to unit owner decisionmaking,
1271except that unit owners may take action by written agreement,
1272without meetings, on matters for which action by written
1273agreement without meetings is expressly allowed by the
1274applicable bylaws or declaration or any statute that provides
1275for such action.
1276     5.  Unit owners may waive notice of specific meetings if
1277allowed by the applicable bylaws or declaration or any statute.
1278If authorized by the bylaws, notice of meetings of the board of
1279administration, unit owner meetings, except unit owner meetings
1280called to recall board members under paragraph (j), and
1281committee meetings may be given by electronic transmission to
1282unit owners who consent to receive notice by electronic
1283transmission.
1284     6.  Unit owners shall have the right to participate in
1285meetings of unit owners with reference to all designated agenda
1286items. However, the association may adopt reasonable rules
1287governing the frequency, duration, and manner of unit owner
1288participation.
1289     7.  Any unit owner may tape record or videotape a meeting
1290of the unit owners subject to reasonable rules adopted by the
1291division.
1292     8.  Unless otherwise provided in the bylaws, any vacancy
1293occurring on the board before the expiration of a term may be
1294filled by the affirmative vote of the majority of the remaining
1295directors, even if the remaining directors constitute less than
1296a quorum, or by the sole remaining director. In the alternative,
1297a board may hold an election to fill the vacancy, in which case
1298the election procedures must conform to the requirements of
1299subparagraph 3. unless the association has opted out of the
1300statutory election process, in which case the bylaws of the
1301association control. Unless otherwise provided in the bylaws, a
1302board member appointed or elected under this section shall fill
1303the vacancy for the unexpired term of the seat being filled.
1304Filling vacancies created by recall is governed by paragraph (j)
1305and rules adopted by the division.
1306     9.  Unit owners shall have the right to have items placed
1307on the agenda of the annual meeting and voted upon if a written
1308request is made to the board of administration by 20 percent or
1309more of all voting interests at least 90 days before the date of
1310the annual meeting.
1311
1312Notwithstanding subparagraphs (b)2. and (d)3., an association
1313may, by the affirmative vote of a majority of the total voting
1314interests, provide for different voting and election procedures
1315in its bylaws, which vote may be by a proxy specifically
1316delineating the different voting and election procedures. The
1317different voting and election procedures may provide for
1318elections to be conducted by limited or general proxy.
1319     (e)  Budget meeting.--
1320     1.  Any meeting at which a proposed annual budget of an
1321association will be considered by the board or unit owners shall
1322be open to all unit owners. At least 14 days prior to such a
1323meeting, the board shall hand deliver to each unit owner, mail
1324to each unit owner at the address last furnished to the
1325association by the unit owner, or electronically transmit to the
1326location furnished by the unit owner for that purpose a notice
1327of such meeting and a copy of the proposed annual budget. An
1328officer or manager of the association, or other person providing
1329notice of such meeting, shall execute an affidavit evidencing
1330compliance with such notice requirement, and such affidavit
1331shall be filed among the official records of the association.
1332     2.a.  If a board adopts in any fiscal year an annual budget
1333which requires assessments against unit owners which exceed 115
1334percent of assessments for the preceding fiscal year, the board
1335shall conduct a special meeting of the unit owners to consider a
1336substitute budget if the board receives, within 21 days after
1337adoption of the annual budget, a written request for a special
1338meeting from at least 10 percent of all voting interests. The
1339special meeting shall be conducted within 60 days after adoption
1340of the annual budget. At least 14 days prior to such special
1341meeting, the board shall hand deliver to each unit owner, or
1342mail to each unit owner at the address last furnished to the
1343association, a notice of the meeting. An officer or manager of
1344the association, or other person providing notice of such
1345meeting shall execute an affidavit evidencing compliance with
1346this notice requirement, and such affidavit shall be filed among
1347the official records of the association. Unit owners may
1348consider and adopt a substitute budget at the special meeting. A
1349substitute budget is adopted if approved by a majority of all
1350voting interests unless the bylaws require adoption by a greater
1351percentage of voting interests. If there is not a quorum at the
1352special meeting or a substitute budget is not adopted, the
1353annual budget previously adopted by the board shall take effect
1354as scheduled.
1355     b.  Any determination of whether assessments exceed 115
1356percent of assessments for the prior fiscal year shall exclude
1357any authorized provision for reasonable reserves for repair or
1358replacement of the condominium property, anticipated expenses of
1359the association which the board does not expect to be incurred
1360on a regular or annual basis, or assessments for betterments to
1361the condominium property.
1362     c.  If the developer controls the board, assessments shall
1363not exceed 115 percent of assessments for the prior fiscal year
1364unless approved by a majority of all voting interests.
1365     (f)  Annual budget.--
1366     1.  The association shall prepare an annual budget of
1367estimated revenues and expenses. The adopted budget of the prior
1368fiscal year shall remain in effect until the association has
1369adopted a new budget for the current fiscal year. The proposed
1370annual budget of estimated revenues and common expenses shall be
1371detailed and shall show the amounts budgeted by accounts and
1372expense classifications, including, if applicable, but not
1373limited to, those expenses listed in s. 718.504(21). A
1374multicondominium association shall adopt a separate budget of
1375common expenses for each condominium the association operates
1376and shall adopt a separate budget of common expenses for the
1377association. In addition, if the association maintains limited
1378common elements with the cost to be shared only by those
1379entitled to use the limited common elements as provided for in
1380s. 718.113(1), the budget or a schedule attached thereto shall
1381show amounts budgeted therefor. If, after turnover of control of
1382the association to the unit owners, any of the expenses listed
1383in s. 718.504(21) are not applicable, they need not be listed.
1384     2.  In addition to annual operating expenses, the budget
1385shall include reserve accounts for capital expenditures and
1386deferred maintenance. These accounts shall include, but are not
1387limited to, structural repairs, roof replacement, building
1388painting, and pavement resurfacing, regardless of the amount of
1389deferred maintenance expense or replacement cost, and for any
1390other item for which the deferred maintenance expense or
1391replacement cost exceeds $10,000. The amount to be reserved
1392shall be computed by means of a formula which is based upon
1393estimated remaining useful life and estimated replacement cost
1394or deferred maintenance expense of each reserve item. The
1395association may adjust replacement reserve assessments annually
1396to take into account any changes in estimates or extension of
1397the useful life of a reserve item caused by deferred
1398maintenance. This subsection does not apply to an adopted budget
1399in which the members of an association have determined, by a
1400majority vote at a duly called meeting of the association, to
1401provide no reserves or less reserves than required by this
1402subsection. However, prior to turnover of control of an
1403association by a developer to unit owners other than a developer
1404pursuant to s. 718.301, the developer may vote to waive the
1405reserves or reduce the funding of reserves for the first 2
1406fiscal years of the association's operation, beginning with the
1407fiscal year in which the initial declaration is recorded, after
1408which time reserves may be waived or reduced only upon the vote
1409of a majority of all nondeveloper voting interests voting in
1410person or by limited proxy at a duly called meeting of the
1411association. If a meeting of the unit owners has been called to
1412determine whether to waive or reduce the funding of reserves,
1413and no such result is achieved or a quorum is not attained, the
1414reserves as included in the budget shall go into effect. After
1415the turnover, the developer may vote its voting interest to
1416waive or reduce the funding of reserves.
1417     3.  Reserve funds and any interest accruing thereon shall
1418remain in the reserve account or accounts, and shall be used
1419only for authorized reserve expenditures unless their use for
1420other purposes is approved in advance by a majority vote at a
1421duly called meeting of the association. Prior to turnover of
1422control of an association by a developer to unit owners other
1423than the developer pursuant to s. 718.301, the developer-
1424controlled association shall not vote to use reserves for
1425purposes other than that for which they were intended without
1426the approval of a majority of all nondeveloper voting interests,
1427voting in person or by limited proxy at a duly called meeting of
1428the association.
1429     4.  The only voting interests which are eligible to vote on
1430questions that involve waiving or reducing the funding of
1431reserves, or using existing reserve funds for purposes other
1432than purposes for which the reserves were intended, are the
1433voting interests of the units subject to assessment to fund the
1434reserves in question. The face of all ballots that involve
1435questions relating to waiving or reducing the funding of
1436reserves, or using existing reserve funds for purposes other
1437than purposes for which the reserves were intended, shall
1438contain the following statement in capitalized, bold letters in
1439a font size larger than any other used on the face of the
1440ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
1441ALTERNATE USES OF EXISTING RESERVES, MAY RESULT IN UNIT OWNER
1442LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS
1443REGARDING THOSE RESERVE ITEMS.
1444     5.  A vote to provide for no reserves or a percentage of
1445reserves shall be made at the annual meeting of the unit owners
1446called under paragraph (d). The division shall adopt the form
1447for the ballot for no reserves and a percentage of reserves.
1448     6.  Notwithstanding subparagraph 3., the association after
1449turnover of control of the association may, in case of a
1450catastrophic event, use reserve funds for nonscheduled purposes
1451to mitigate further damage to units or common elements or to
1452make the condominium accessible for repairs.
1453     7.  Except in cases of emergency, or unless otherwise
1454provided for in the bylaws or approved by a vote of a majority
1455of the unit owners in advance, the board of administration may
1456not apply for or accept a loan or line of credit in an amount
1457that exceeds 10 percent of the association's annual budget for
1458the current year.
1459     (g)  Assessments.--After the declaration has been recorded,
1460and until such time as the association has been created, all
1461common expenses shall be paid by the developer. Assessments
1462shall be levied in an amount determined by the adopted budget or
1463an authorized special assessment. The manner of collecting from
1464the unit owners their shares of the common expenses shall be
1465stated in the bylaws. Assessments shall be made against units on
1466a quarter-annual, or more frequent, basis not less frequently
1467than quarterly in an amount which is not less than that required
1468to provide funds in advance for payment of all of the
1469anticipated current operating expenses and for all of the unpaid
1470operating expenses previously incurred. Nothing in this
1471paragraph shall preclude the right of an association to
1472accelerate assessments of an owner delinquent in payment of
1473common expenses against whom a lien has been filed. Accelerated
1474assessments shall be due and payable after on the date the claim
1475of lien is filed. Such accelerated assessments shall include the
1476amounts due for the remainder of the budget year in which the
1477claim of lien was filed.
1478     (h)  Amendment of bylaws.--
1479     1.  The method by which the bylaws may be amended
1480consistent with the provisions of this chapter shall be stated.
1481If the bylaws fail to provide a method of amendment, the bylaws
1482may be amended if the amendment is approved by the owners of not
1483less than two-thirds of the voting interests.
1484     2.  No bylaw shall be revised or amended by reference to
1485its title or number only. Proposals to amend existing bylaws
1486shall contain the full text of the bylaws to be amended; new
1487words shall be inserted in the text underlined, and words to be
1488deleted shall be lined through with hyphens. However, if the
1489proposed change is so extensive that this procedure would
1490hinder, rather than assist, the understanding of the proposed
1491amendment, it is not necessary to use underlining and hyphens as
1492indicators of words added or deleted, but, instead, a notation
1493must be inserted immediately preceding the proposed amendment in
1494substantially the following language: "Substantial rewording of
1495bylaw. See bylaw _____ for present text."
1496     3.  Nonmaterial errors or omissions in the bylaw process
1497will not invalidate an otherwise properly promulgated amendment.
1498     (i)  Transfer fees.--No charge shall be made by the
1499association or any body thereof in connection with the sale,
1500mortgage, lease, sublease, or other transfer of a unit unless
1501the association is required to approve such transfer and a fee
1502for such approval is provided for in the declaration, articles,
1503or bylaws. Any such fee may be preset, but in no event may such
1504fee exceed $100 per applicant other than husband/wife or
1505parent/dependent child, which are considered one applicant.
1506However, if the lease or sublease is a renewal of a lease or
1507sublease with the same lessee or sublessee, no charge shall be
1508made. The foregoing notwithstanding, an association may, if the
1509authority to do so appears in the declaration or bylaws, require
1510that a prospective lessee place a security deposit, in an amount
1511not to exceed the equivalent of 1 month's rent, into an escrow
1512account maintained by the association. The security deposit
1513shall protect against damages to the common elements or
1514association property. Payment of interest, claims against the
1515deposit, refunds, and disputes under this paragraph shall be
1516handled in the same fashion as provided in part II of chapter
151783.
1518     (j)  Recall of board members.--Subject to the provisions of
1519s. 718.301, any member of the board of administration may be
1520recalled and removed from office with or without cause by the
1521vote or agreement in writing by a majority of all the voting
1522interests. A special meeting of the unit owners to recall a
1523member or members of the board of administration may be called
1524by 10 percent of the voting interests giving notice of the
1525meeting as required for a meeting of unit owners, and the notice
1526shall state the purpose of the meeting. Electronic transmission
1527may not be used as a method of giving notice of a meeting called
1528in whole or in part for this purpose.
1529     1.  If the recall is approved by a majority of all voting
1530interests by a vote at a meeting, the recall will be effective
1531as provided herein. The board shall duly notice and hold a board
1532meeting within 5 full business days of the adjournment of the
1533unit owner meeting to recall one or more board members. At the
1534meeting, the board shall either certify the recall, in which
1535case such member or members shall be recalled effective
1536immediately, and the member or members recalled shall turn over
1537to the board within 5 full business days any and all records and
1538property of the association in their possession, or shall
1539proceed as set forth in subparagraph 3.
1540     2.  Beginning January 1, 2008, if the proposed recall is by
1541an agreement in writing by a majority of all voting interests,
1542the agreement in writing or a copy thereof shall be served on
1543the association and the ombudsman appointed pursuant to s.
1544718.5011, together with a current copy of the unit owner roster,
1545by certified mail or by personal service, Monday through Friday,
1546excluding legal holidays, between the hours of 8:00 a.m. and
15475:00 p.m., in the manner authorized by chapter 48 and the
1548Florida Rules of Civil Procedure. The board of administration or
1549any board member named in the agreement may submit rebuttal
1550argument and supporting evidence to the ombudsman within 5
1551business days from the date of service of the agreement. The
1552ombudsman shall certify or not certify the recall within 10
1553business days after receipt of the written agreement and the
1554current unit owner roster. If the ombudsman determines to The
1555board of administration shall duly notice and hold a meeting of
1556the board within 5 full business days after receipt of the
1557agreement in writing. At the meeting, the board shall either
1558certify the written agreement to recall a member or members of
1559the board, the in which case such member or members shall be
1560recalled effective immediately and shall turn over to the board
1561within 5 full business days any and all records and property of
1562the association in their possession, or proceed as described in
1563subparagraph 3.
1564     3.  If the ombudsman board determines not to certify the
1565written agreement to recall a member or members of the board, or
1566does not certify the recall by a vote at a meeting, the
1567ombudsman board shall, within 5 full business days after the
1568decision, notify the member or members of the board and the
1569board president of the reasons for not certifying the agreement,
1570and the unit owners shall be afforded an additional period of 5
1571business days to correct the defect or deficiency. The board or
1572members named in the agreement shall have 5 business days to
1573submit rebuttal argument and supporting evidence, and the
1574ombudsman shall have 5 business days thereafter to render a
1575decision. If the ombudsman certifies the corrected or amended
1576written recall agreement to recall a member or members of the
1577board, such member or members shall be recalled effective
1578immediately and shall turn over to the board within 5 full
1579business days any and all records and property of the
1580association in their possession. If the ombudsman does not
1581certify the recall as to any or all board members, the board
1582member or members not certified by the corrected or amended
1583written recall agreement shall remain in office for the
1584remainder of their unexpired terms or until properly recalled or
1585resignation otherwise occurs meeting, file with the division a
1586petition for arbitration pursuant to the procedures in s.
1587718.1255. For the purposes of this section, the unit owners who
1588voted at the meeting or who executed the agreement in writing
1589shall constitute one party under the petition for arbitration.
1590If the arbitrator certifies the recall as to any member or
1591members of the board, the recall will be effective upon mailing
1592of the final order of arbitration to the association. If the
1593association fails to comply with the order of the arbitrator,
1594the division may take action pursuant to s. 718.501. Any member
1595or members so recalled shall deliver to the board any and all
1596records of the association in their possession within 5 full
1597business days of the effective date of the recall.
1598     4.  If the board fails to duly notice and hold a board
1599meeting within 5 full business days of service of an agreement
1600in writing or within 5 full business days of the adjournment of
1601the unit owner recall meeting, the recall shall be deemed
1602effective and the board members so recalled shall immediately
1603turn over to the board any and all records and property of the
1604association.
1605     4.5.  If a vacancy occurs on the board as a result of a
1606recall and less than a majority of the board members are
1607removed, the vacancy may be filled by the affirmative vote of a
1608majority of the remaining directors, notwithstanding any
1609provision to the contrary contained in this subsection. If
1610vacancies occur on the board as a result of a recall and a
1611majority or more of the board members are removed, the vacancies
1612shall be filled in accordance with procedural rules to be
1613adopted by the division, which rules need not be consistent with
1614this subsection. The rules must provide procedures governing the
1615conduct of the recall election as well as the operation of the
1616association during the period after a recall but prior to the
1617recall election.
1618     (k)  Arbitration.--There shall be a provision for mandatory
1619nonbinding arbitration as provided for in s. 718.1255.
1620     (k)(l)  Certificate of compliance.--There shall be a
1621provision that a certificate of compliance from a licensed
1622electrical contractor or electrician may be accepted by the
1623association's board as evidence of compliance of the condominium
1624units with the applicable fire and life safety code.
1625Notwithstanding the provisions of chapter 633 or of any other
1626code, statute, ordinance, administrative rule, or regulation, or
1627any interpretation of the foregoing, an association,
1628condominium, or unit owner is not obligated to retrofit the
1629common elements or units of a residential condominium with a
1630fire sprinkler system or other engineered lifesafety system in a
1631building that has been certified for occupancy by the applicable
1632governmental entity, if the unit owners have voted to forego
1633such retrofitting and engineered lifesafety system by the
1634affirmative vote of two-thirds of all voting interests in the
1635affected condominium. However, a condominium association may not
1636vote to forego the retrofitting with a fire sprinkler system of
1637common areas in a high-rise building. For purposes of this
1638subsection, the term "high-rise building" means a building that
1639is greater than 75 feet in height where the building height is
1640measured from the lowest level of fire department access to the
1641floor of the highest occupiable story. For purposes of this
1642subsection, the term "common areas" means any enclosed hallway,
1643corridor, lobby, stairwell, or entryway. In no event shall the
1644local authority having jurisdiction require completion of
1645retrofitting of common areas with a sprinkler system before the
1646end of 2014.
1647     1.  A vote to forego retrofitting may be obtained by
1648limited proxy or by a ballot personally cast at a duly called
1649membership meeting, or by execution of a written consent by the
1650member, and shall be effective upon the recording of a
1651certificate attesting to such vote in the public records of the
1652county where the condominium is located. The association shall
1653mail, hand deliver, or electronically transmit to each unit
1654owner written notice at least 14 days prior to such membership
1655meeting in which the vote to forego retrofitting of the required
1656fire sprinkler system is to take place. Within 30 days after the
1657association's opt-out vote, notice of the results of the opt-out
1658vote shall be mailed, hand delivered, or electronically
1659transmitted to all unit owners. Evidence of compliance with this
166030-day notice shall be made by an affidavit executed by the
1661person providing the notice and filed among the official records
1662of the association. After such notice is provided to each owner,
1663a copy of such notice shall be provided by the current owner to
1664a new owner prior to closing and shall be provided by a unit
1665owner to a renter prior to signing a lease.
1666     2.  As part of the information collected annually from
1667condominiums, the division shall require condominium
1668associations to report the membership vote and recording of a
1669certificate under this subsection and, if retrofitting has been
1670undertaken, the per-unit cost of such work. The division shall
1671annually report to the Division of State Fire Marshal of the
1672Department of Financial Services the number of condominiums that
1673have elected to forego retrofitting.
1674     (l)(m)  Common elements; limited power to convey.--
1675     1.  With respect to condominiums created on or after
1676October 1, 1994, the bylaws shall include a provision granting
1677the association a limited power to convey a portion of the
1678common elements to a condemning authority for the purpose of
1679providing utility easements, right-of-way expansion, or other
1680public purposes, whether negotiated or as a result of eminent
1681domain proceedings.
1682     2.  In any case where the bylaws are silent as to the
1683association's power to convey common elements as described in
1684subparagraph 1., the bylaws shall be deemed to include the
1685provision described in subparagraph 1.
1686     Section 26.  Section 718.113, Florida Statutes, is amended
1687to read:
1688     718.113  Maintenance; limitation upon improvement; display
1689of flag; display of religious decorations; hurricane shutters.--
1690     (1)  Maintenance of the common elements is the
1691responsibility of the association. The declaration may provide
1692that certain limited common elements shall be maintained by
1693those entitled to use the limited common elements or that the
1694association shall provide the maintenance, either as a common
1695expense or with the cost shared only by those entitled to use
1696the limited common elements. If the maintenance is to be by the
1697association at the expense of only those entitled to use the
1698limited common elements, the declaration shall describe in
1699detail the method of apportioning such costs among those
1700entitled to use the limited common elements, and the association
1701may use the provisions of s. 718.116 to enforce payment of the
1702shares of such costs by the unit owners entitled to use the
1703limited common elements.
1704     (2)(a)  Except as otherwise provided in this section, there
1705shall be no material alteration or substantial additions to the
1706common elements or to real property which is association
1707property, except in a manner provided in the declaration as
1708originally recorded or as amended under the procedures provided
1709therein. If the declaration as originally recorded or as amended
1710under the procedures provided therein does not specify the
1711procedure for approval of material alterations or substantial
1712additions, 75 percent of the total voting interests of the
1713association must approve the alterations or additions.
1714     (b)  There shall not be any material alteration of, or
1715substantial addition to, the common elements of any condominium
1716operated by a multicondominium association unless approved in
1717the manner provided in the declaration of the affected
1718condominium or condominiums as originally recorded or as amended
1719under the procedures provided therein. If a declaration as
1720originally recorded or as amended under the procedures provided
1721therein does not specify a procedure for approving such an
1722alteration or addition, the approval of 75 percent of the total
1723voting interests of each affected condominium is required. This
1724subsection does not prohibit a provision in any declaration,
1725articles of incorporation, or bylaws as originally recorded or
1726as amended under the procedures provided therein requiring the
1727approval of unit owners in any condominium operated by the same
1728association or requiring board approval before a material
1729alteration or substantial addition to the common elements is
1730permitted. This paragraph is intended to clarify existing law
1731and applies to associations existing on the effective date of
1732this act.
1733     (c)  There shall not be any material alteration or
1734substantial addition made to association real property operated
1735by a multicondominium association, except as provided in the
1736declaration, articles of incorporation, or bylaws as originally
1737recorded or as amended under the procedures provided therein. If
1738the declaration, articles of incorporation, or bylaws as
1739originally recorded or as amended under the procedures provided
1740therein do not specify the procedure for approving an alteration
1741or addition to association real property, the approval of 75
1742percent of the total voting interests of the association is
1743required. This paragraph is intended to clarify existing law and
1744applies to associations existing on the effective date of this
1745act.
1746     (3)  A unit owner shall not do anything within his or her
1747unit or on the common elements which would adversely affect the
1748safety or soundness of the common elements or any portion of the
1749association property or condominium property which is to be
1750maintained by the association.
1751     (4)  Any unit owner may display one portable, removable
1752United States flag in a respectful way and, on Armed Forces Day,
1753Memorial Day, Flag Day, Independence Day, and Veterans Day, may
1754display in a respectful way portable, removable official flags,
1755not larger than 41/2 feet by 6 feet, that represent the United
1756States Army, Navy, Air Force, Marine Corps, or Coast Guard,
1757regardless of any declaration rules or requirements dealing with
1758flags or decorations.
1759     (5)  Each board of administration shall, at each annual
1760meeting, adopt or restate hurricane shutter specifications for
1761each building within each condominium operated by the
1762association which shall include color, style, and other factors
1763deemed relevant by the board. All specifications adopted or
1764restated by the board shall comply with the applicable building
1765code. Notwithstanding any provision to the contrary in the
1766condominium documents, if approval is required by the documents,
1767a board shall not refuse to approve the installation or
1768replacement of hurricane shutters conforming to the
1769specifications adopted by the board. The board may, subject to
1770the provisions of s. 718.3026, and the approval of a majority of
1771voting interests of the condominium, install hurricane shutters
1772and may maintain, repair, or replace such approved hurricane
1773shutters or hurricane protection that complies with the
1774applicable building code, whether on or within common elements,
1775limited common elements, units, or association property.
1776However, where laminated glass or window film architecturally
1777designed to function as hurricane protection which complies with
1778the applicable building code has been installed, the board may
1779not install hurricane shutters. The board may operate shutters
1780installed pursuant to this subsection without permission of the
1781unit owners only where such operation is necessary to preserve
1782and protect the condominium property and association property.
1783The installation, replacement, operation, repair, and
1784maintenance of such shutters in accordance with the procedures
1785set forth herein shall not be deemed a material alteration to
1786the common elements or association property within the meaning
1787of this section.
1788     (6)  Every 5 years, the board of administration shall have
1789the condominium buildings inspected by a professional engineer
1790or professional architect registered in the state for the
1791purpose of determining that the building is structurally and
1792electrically safe. The engineer or architect shall provide a
1793report indicating the manner and type of inspection forming the
1794basis for the report and description of any matters identified
1795as requiring remedial action. The report shall become an
1796official record of the association to be provided to the members
1797upon request pursuant to s. 718.111(12).
1798     (7)  The board of administration may not adopt any rule or
1799regulation impairing any rights guaranteed by the First
1800Amendment to the Constitution of the United States or s. 3, Art.
1801I of the Florida Constitution, including, but not limited to,
1802the free exercise of religion, nor may any rules or regulations
1803conflict with the provisions of this chapter or the condominium
1804instruments. A rule or regulation may not prohibit any
1805reasonable accommodation for religious practices, including the
1806attachment of religiously mandated objects to the front-door
1807area of a condominium unit.
1808     Section 27.  Paragraph (d) of subsection (1) of section
1809718.115, Florida Statutes, is amended to read:
1810     718.115  Common expenses and common surplus.--
1811     (1)
1812     (d)  If so provided in the declaration, the cost of a
1813master antenna television system or duly franchised cable
1814television service obtained pursuant to a bulk contract for
1815basic service shall be deemed a common expense. If the
1816declaration does not provide for the cost of a master antenna
1817television system or duly franchised basic cable television
1818service obtained under a bulk contract as a common expense, the
1819board may enter into such a contract, and the cost of the
1820service will be a common expense but allocated on a per-unit
1821basis rather than a percentage basis if the declaration provides
1822for other than an equal sharing of common expenses, and any
1823contract entered into before July 1, 1998, in which the cost of
1824the service is not equally divided among all unit owners, may be
1825changed by vote of a majority of the voting interests present at
1826a regular or special meeting of the association, to allocate the
1827cost equally among all units. The contract shall be for a term
1828of not less than 2 years.
1829     1.  Any contract made by the board after the effective date
1830hereof for a community antenna system or duly franchised basic
1831cable television service may be canceled by a majority of the
1832voting interests present at the next regular or special meeting
1833of the association. Any member may make a motion to cancel said
1834contract, but if no motion is made or if such motion fails to
1835obtain the required majority at the next regular or special
1836meeting, whichever is sooner, following the making of the
1837contract, then such contract shall be deemed ratified for the
1838term therein expressed.
1839     2.  Any such contract shall provide, and shall be deemed to
1840provide if not expressly set forth, that any hearing-impaired or
1841legally blind unit owner who does not occupy the unit with a
1842non-hearing-impaired or sighted person, or any unit owner
1843receiving supplemental security income under Title XVI of the
1844Social Security Act or food stamps as administered by the
1845Department of Children and Family Services pursuant to s.
1846414.31, may discontinue the service without incurring disconnect
1847fees, penalties, or subsequent service charges, and, as to such
1848units, the owners shall not be required to pay any common
1849expenses charge related to such service. If less than all
1850members of an association share the expenses of cable
1851television, the expense shall be shared equally by all
1852participating unit owners. The association may use the
1853provisions of s. 718.116 to enforce payment of the shares of
1854such costs by the unit owners receiving cable television.
1855     Section 28.  Section 718.1123, Florida Statutes, is created
1856to read:
1857     718.1123  Protection against abuse.--
1858     (1)  In order to protect the safety, health, and welfare of
1859the people of this state, especially the infirm and elderly, and
1860to ensure the protection of condominium owners, any complaint of
1861abuse filed with the Division of Florida Land Sales,
1862Condominiums, Homeowners' Associations, and Mobile Homes shall
1863immediately be investigated by the division. When the division
1864has reasonable cause to believe that abuse has occurred against
1865any unit owner, the division shall institute enforcement
1866proceedings pursuant to its power and duties as set forth in s.
1867718.501.
1868     (2)  For purposes of this section, the term "abuse" means
1869any willful act or threat by a member of the board of directors
1870of a condominium association or any member of a committee or
1871subcommittee appointed by the board of directors, or any
1872employee, volunteer, or agent purporting to act on behalf of the
1873board of directors, or any officer, director, employee, or agent
1874of any management company acting on behalf of a condominium
1875association who denies or is likely to deny a condominium unit
1876owner or dweller any of the rights and protections afforded to
1877them under applicable state and federal laws, administrative
1878rules, and the governing documents of their condominium
1879association.
1880     Section 29.  Section 718.1224, Florida Statutes, is created
1881to read:
1882     718.1224  Prohibition against SLAPP suits.--
1883     (1)  It is the intent of the Legislature to protect the
1884right of condominium unit owners to exercise their rights to
1885instruct their representatives and petition for redress of
1886grievances before the various governmental entities of this
1887state as protected by the First Amendment to the United States
1888Constitution and s. 5, Art. I of the State Constitution. The
1889Legislature recognizes that strategic lawsuits against public
1890participation, or "SLAPP" suits as they are typically referred
1891to, have occurred when association members are sued by
1892individuals, business entities, or governmental entities arising
1893out of a condominium unit owner's appearance and presentation
1894before a governmental entity on matters related to the
1895condominium association. However, it is the public policy of
1896this state that governmental entities, business organizations,
1897and individuals not to engage in SLAPP suits, because such
1898actions are inconsistent with the right of condominium unit
1899owners to participate in the state's institutions of government.
1900Therefore, the Legislature finds and declares that prohibiting
1901such lawsuits by governmental entities, business entities, and
1902individuals against condominium unit owners who address matters
1903concerning their condominium association will preserve this
1904fundamental state policy, preserve the constitutional rights of
1905condominium unit owners, and ensure the continuation of
1906representative government in this state. It is the intent of the
1907Legislature that such lawsuits be expeditiously disposed of by
1908the courts. As used in this subsection, the term "governmental
1909entity" means the state, including the executive, legislative,
1910and judicial branches of government, the independent
1911establishments of the state, counties, municipalities,
1912districts, authorities, boards, or commissions, or any agencies
1913of these branches which are subject to chapter 286.
1914     (2)  A governmental entity, business organization, or
1915individual in this state may not file or cause to be filed
1916through its employees or agents any lawsuit, cause of action,
1917claim, cross-claim, or counterclaim against a condominium unit
1918owner without merit and solely because such condominium unit
1919owner has exercised the right to instruct his or her
1920representatives or the right to petition for redress of
1921grievances before the various governmental entities of this
1922state, as protected by the First Amendment to the United States
1923Constitution and s. 5, Art. I of the State Constitution.
1924     (3)  A condominium unit owner sued by a governmental
1925entity, business organization, or individual in violation of
1926this section has a right to an expeditious resolution of a claim
1927that the suit is in violation of this section. A condominium
1928unit owner may petition the court for an order dismissing the
1929action or granting final judgment in favor of that condominium
1930unit owner. The petitioner may file a motion for summary
1931judgment, together with supplemental affidavits, seeking a
1932determination that the governmental entity's, business
1933organization's, or individual's lawsuit has been brought in
1934violation of this section. The governmental entity, business
1935organization, or individual shall thereafter file its response
1936and any supplemental affidavits. As soon as practicable, the
1937court shall set a hearing on the petitioner's motion, which
1938shall be held at the earliest possible time after the filing of
1939the governmental entity's, business organization's or
1940individual's response. The court may award the condominium unit
1941owner sued by the governmental entity, business organization, or
1942individual actual damages arising from the governmental
1943entity's, individual's, or business organization's violation of
1944this section. A court may treble the damages awarded to a
1945prevailing condominium unit owner and shall state the basis for
1946the treble damages award in its judgment. The court shall award
1947the prevailing party reasonable attorney's fees and costs
1948incurred in connection with a claim that an action was filed in
1949violation of this section.
1950     (4)  Condominium associations may not expend association
1951funds in prosecuting a SLAPP suit against a condominium unit
1952owner.
1953     Section 30.  Subsection (4) of section 718.1255, Florida
1954Statutes, is amended to read:
1955     718.1255  Alternative dispute resolution; voluntary
1956mediation; mandatory nonbinding arbitration; legislative
1957findings.--
1958     (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
1959DISPUTES.--The Division of Florida Land Sales, Condominiums,
1960Homeowners' Associations, and Mobile Homes of the Department of
1961Business and Professional Regulation shall employ full-time
1962attorneys to act as arbitrators to conduct the arbitration
1963hearings provided by this chapter. The division may also certify
1964attorneys who are not employed by the division to act as
1965arbitrators to conduct the arbitration hearings provided by this
1966section. No person may be employed by the department as a full-
1967time arbitrator unless he or she is a member in good standing of
1968The Florida Bar. The department shall promulgate rules of
1969procedure to govern such arbitration hearings including
1970mediation incident thereto. The decision of an arbitrator shall
1971be final; however, such a decision shall not be deemed final
1972agency action. Nothing in this provision shall be construed to
1973foreclose parties from proceeding in a trial de novo unless the
1974parties have agreed that the arbitration is binding. If such
1975judicial proceedings are initiated, the final decision of the
1976arbitrator shall be admissible in evidence in the trial de novo.
1977     (a)  Prior to the institution of court litigation, a party
1978to a dispute shall petition the division for nonbinding
1979arbitration. The petition must be accompanied by a filing fee in
1980the amount of $50. Filing fees collected under this section must
1981be used to defray the expenses of the alternative dispute
1982resolution program.
1983     (b)  The petition must recite, and have attached thereto,
1984supporting proof that the petitioner gave the respondents:
1985     1.  Advance written notice of the specific nature of the
1986dispute;
1987     2.  A demand for relief, and a reasonable opportunity to
1988comply or to provide the relief; and
1989     3.  Notice of the intention to file an arbitration petition
1990or other legal action in the absence of a resolution of the
1991dispute.
1992
1993Failure to include the allegations or proof of compliance with
1994these prerequisites requires dismissal of the petition without
1995prejudice.
1996     (c)  Upon receipt, the petition shall be promptly reviewed
1997by the division to determine the existence of a dispute and
1998compliance with the requirements of paragraphs (a) and (b). If
1999emergency relief is required and is not available through
2000arbitration, a motion to stay the arbitration may be filed. The
2001motion must be accompanied by a verified petition alleging facts
2002that, if proven, would support entry of a temporary injunction,
2003and if an appropriate motion and supporting papers are filed,
2004the division may abate the arbitration pending a court hearing
2005and disposition of a motion for temporary injunction.
2006     (d)  Upon determination by the division that a dispute
2007exists and that the petition substantially meets the
2008requirements of paragraphs (a) and (b) and any other applicable
2009rules, a copy of the petition shall forthwith be served by the
2010division upon all respondents.
2011     (e)  Either before or after the filing of the respondents'
2012answer to the petition, any party may request that the
2013arbitrator refer the case to mediation under this section and
2014any rules adopted by the division. Upon receipt of a request for
2015mediation, the division shall promptly refer the case contact
2016the parties to determine if there is agreement that mediation
2017would be appropriate. If all parties agree, the dispute must be
2018referred to mediation. Notwithstanding a lack of an agreement by
2019all parties, The arbitrator may refer a dispute to mediation at
2020any time.
2021     (f)  Upon referral of a case to mediation, the parties must
2022select a mutually acceptable mediator. To assist in the
2023selection, the arbitrator shall provide the parties with a list
2024of both volunteer and paid mediators that have been certified by
2025the division under s. 718.501. If the parties are unable to
2026agree on a mediator within the time allowed by the arbitrator,
2027the arbitrator shall appoint a mediator from the list of
2028certified mediators. If a case is referred to mediation, the
2029parties shall attend a mediation conference, as scheduled by the
2030parties and the mediator. If any party fails to attend a duly
2031noticed mediation conference, without the permission or approval
2032of the arbitrator or mediator, the arbitrator must impose
2033sanctions against the party, including the striking of any
2034pleadings filed, the entry of an order of dismissal or default
2035if appropriate, and the award of costs and attorneys' fees
2036incurred by the other parties. Unless otherwise agreed to by the
2037parties or as provided by order of the arbitrator, a party is
2038deemed to have appeared at a mediation conference by the
2039physical presence of the party or its representative having full
2040authority to settle without further consultation, provided that
2041an association may comply by having one or more representatives
2042present with full authority to negotiate a settlement and
2043recommend that the board of administration ratify and approve
2044such a settlement within 5 days from the date of the mediation
2045conference. The parties shall share equally the expense of
2046mediation, unless they agree otherwise.
2047     (g)  The purpose of mediation as provided for by this
2048section is to present the parties with an opportunity to resolve
2049the underlying dispute in good faith, and with a minimum
2050expenditure of time and resources.
2051     (h)  Mediation proceedings must generally be conducted in
2052accordance with the Florida Rules of Civil Procedure, and these
2053proceedings are privileged and confidential to the same extent
2054as court-ordered mediation. Persons who are not parties to the
2055dispute are not allowed to attend the mediation conference
2056without the consent of all parties, with the exception of
2057counsel for the parties and corporate representatives designated
2058to appear for a party. If the mediator declares an impasse after
2059a mediation conference has been held, the arbitration proceeding
2060terminates, unless all parties agree in writing to continue the
2061arbitration proceeding, in which case the arbitrator's decision
2062shall be either binding or nonbinding, as agreed upon by the
2063parties; in the arbitration proceeding, the arbitrator shall not
2064consider any evidence relating to the unsuccessful mediation
2065except in a proceeding to impose sanctions for failure to appear
2066at the mediation conference. If the parties do not agree to
2067continue arbitration, the arbitrator shall enter an order of
2068dismissal, and either party may institute a suit in a court of
2069competent jurisdiction. The parties may seek to recover any
2070costs and attorneys' fees incurred in connection with
2071arbitration and mediation proceedings under this section as part
2072of the costs and fees that may be recovered by the prevailing
2073party in any subsequent litigation.
2074     (i)  Arbitration shall be conducted according to rules
2075promulgated by the division. The filing of a petition for
2076arbitration shall toll the applicable statute of limitations.
2077     (j)  At the request of any party to the arbitration, such
2078arbitrator shall issue subpoenas for the attendance of witnesses
2079and the production of books, records, documents, and other
2080evidence and any party on whose behalf a subpoena is issued may
2081apply to the court for orders compelling such attendance and
2082production. Subpoenas shall be served and shall be enforceable
2083in the manner provided by the Florida Rules of Civil Procedure.
2084Discovery may, in the discretion of the arbitrator, be permitted
2085in the manner provided by the Florida Rules of Civil Procedure.
2086Rules adopted by the division may authorize any reasonable
2087sanctions except contempt for a violation of the arbitration
2088procedural rules of the division or for the failure of a party
2089to comply with a reasonable nonfinal order issued by an
2090arbitrator which is not under judicial review.
2091     (k)  The arbitration decision shall be presented to the
2092parties in writing. An arbitration decision is final in those
2093disputes in which the parties have agreed to be bound. An
2094arbitration decision is also final if a complaint for a trial de
2095novo is not filed in a court of competent jurisdiction in which
2096the condominium is located within 30 days. The right to file for
2097a trial de novo entitles the parties to file a complaint in the
2098appropriate trial court for a judicial resolution of the
2099dispute. The prevailing party in an arbitration proceeding shall
2100be awarded the costs of the arbitration and reasonable
2101attorney's fees in an amount determined by the arbitrator. Such
2102an award shall include the costs and reasonable attorney's fees
2103incurred in the arbitration proceeding as well as the costs and
2104reasonable attorney's fees incurred in preparing for and
2105attending any scheduled mediation.
2106     (l)  The party who files a complaint for a trial de novo
2107shall be assessed the other party's arbitration costs, court
2108costs, and other reasonable costs, including attorney's fees,
2109investigation expenses, and expenses for expert or other
2110testimony or evidence incurred after the arbitration hearing if
2111the judgment upon the trial de novo is not more favorable than
2112the arbitration decision. If the judgment is more favorable, the
2113party who filed a complaint for trial de novo shall be awarded
2114reasonable court costs and attorney's fees.
2115     (m)  Any party to an arbitration proceeding may enforce an
2116arbitration award by filing a petition in a court of competent
2117jurisdiction in which the condominium is located. A petition may
2118not be granted unless the time for appeal by the filing of a
2119complaint for trial de novo has expired. If a complaint for a
2120trial de novo has been filed, a petition may not be granted with
2121respect to an arbitration award that has been stayed. If the
2122petition for enforcement is granted, the petitioner shall
2123recover reasonable attorney's fees and costs incurred in
2124enforcing the arbitration award. A mediation settlement may also
2125be enforced through the county or circuit court, as applicable,
2126and any costs and fees incurred in the enforcement of a
2127settlement agreement reached at mediation must be awarded to the
2128prevailing party in any enforcement action.
2129     Section 31.  Subsection (1) of section 718.302, Florida
2130Statutes, is amended to read:
2131     718.302  Agreements entered into by the association.--
2132     (1)  Any grant or reservation made by a declaration, lease,
2133or other document, and any contract made by an association prior
2134to assumption of control of the association by unit owners other
2135than the developer, that provides for services, products,
2136operation, maintenance, or management of a condominium
2137association or property serving the unit owners of a condominium
2138shall be fair and reasonable, and such grant, reservation, or
2139contract may be canceled by unit owners other than the
2140developer:
2141     (a)  If the association operates only one condominium and
2142the unit owners other than the developer have assumed control of
2143the association, or if unit owners other than the developer own
2144not less than 75 percent of the voting interests in the
2145condominium, the cancellation shall be by concurrence of the
2146owners of not less than 75 percent of the voting interests other
2147than the voting interests owned by the developer. If a grant,
2148reservation, or contract is so canceled and the unit owners
2149other than the developer have not assumed control of the
2150association, the association shall make a new contract or
2151otherwise provide for maintenance, management, or operation in
2152lieu of the canceled obligation, at the direction of the owners
2153of not less than a majority of the voting interests in the
2154condominium other than the voting interests owned by the
2155developer.
2156     (b)  If the association operates more than one condominium
2157and the unit owners other than the developer have not assumed
2158control of the association, and if unit owners other than the
2159developer own at least 75 percent of the voting interests in a
2160condominium operated by the association, any grant, reservation,
2161or contract for maintenance, management, or operation of
2162buildings containing the units in that condominium or of
2163improvements used only by unit owners of that condominium may be
2164canceled by concurrence of the owners of at least 75 percent of
2165the voting interests in the condominium other than the voting
2166interests owned by the developer. No grant, reservation, or
2167contract for maintenance, management, or operation of
2168recreational areas or any other property serving more than one
2169condominium, and operated by more than one association, may be
2170canceled except pursuant to paragraph (d).
2171     (c)  If the association operates more than one condominium
2172and the unit owners other than the developer have assumed
2173control of the association, the cancellation shall be by
2174concurrence of the owners of not less than 75 percent of the
2175total number of voting interests in all condominiums operated by
2176the association other than the voting interests owned by the
2177developer.
2178     (d)  If the owners of units in a condominium have the right
2179to use property in common with owners of units in other
2180condominiums and those condominiums are operated by more than
2181one association, no grant, reservation, or contract for
2182maintenance, management, or operation of the property serving
2183more than one condominium may be canceled until unit owners
2184other than the developer have assumed control of all of the
2185associations operating the condominiums that are to be served by
2186the recreational area or other property, after which
2187cancellation may be effected by concurrence of the owners of not
2188less than 75 percent of the total number of voting interests in
2189those condominiums other than voting interests owned by the
2190developer.
2191     Section 32.  Paragraphs (f) and (g) are added to subsection
2192(1) of section 718.3025, Florida Statutes, to read:
2193     718.3025  Agreements for operation, maintenance, or
2194management of condominiums; specific requirements.--
2195     (1)  No written contract between a party contracting to
2196provide maintenance or management services and an association
2197which contract provides for operation, maintenance, or
2198management of a condominium association or property serving the
2199unit owners of a condominium shall be valid or enforceable
2200unless the contract:
2201     (f)  Requires that all obligations under the contract be
2202completed within a 1-year period.
2203     (g)  Contains a provision expressly prohibiting automatic
2204renewal of the contract.
2205     Section 33.  Paragraph (a) of subsection (2) of section
2206718.3026, Florida Statutes, is amended to read:
2207     718.3026  Contracts for products and services; in writing;
2208bids; exceptions.--Associations with less than 100 units may opt
2209out of the provisions of this section if two-thirds of the unit
2210owners vote to do so, which opt-out may be accomplished by a
2211proxy specifically setting forth the exception from this
2212section.
2213     (2)(a)1.  Notwithstanding the foregoing, contracts with
2214employees of the association, and contracts for attorney,
2215accountant, architect, community association manager, timeshare
2216management firm, engineering, and landscape architect services
2217are not subject to the provisions of this section.
2218     2.  A contract executed before January 1, 1992, and any
2219renewal thereof, is not subject to the competitive bid
2220requirements of this section. If a contract was awarded under
2221the competitive bid procedures of this section, any renewal of
2222that contract is not subject to such competitive bid
2223requirements if the contract contains a provision that allows
2224the board to cancel the contract on 30 days' notice. Materials,
2225equipment, or services provided to a condominium under a local
2226government franchise agreement by a franchise holder are not
2227subject to the competitive bid requirements of this section. A
2228contract with a manager, if made by a competitive bid, may be
2229made for up to 3 years. A condominium whose declaration or
2230bylaws provides for competitive bidding for services may operate
2231under the provisions of that declaration or bylaws in lieu of
2232this section if those provisions are not less stringent than the
2233requirements of this section.
2234     3.  A contract by and between a service provider and an
2235association shall not be for a term in excess of 3 years and
2236shall not contain an automatic renewal clause.
2237     4.  A contract for construction or repair of the property
2238that exceeds 10 percent of the total annual budget of the
2239association, including reserves, should have the approval of an
2240attorney hired by the association.
2241     Section 34.  Subsection (3) of section 718.303, Florida
2242Statutes, is amended and subsection (4) is added to that
2243section, to read:
2244     718.303  Obligations of owners; waiver; levy of fine
2245against unit by association.--
2246     (3)  If the declaration or bylaws so provide, the
2247association may levy reasonable fines against a unit for the
2248failure of the owner of the unit, or its occupant, licensee, or
2249invitee, to comply with any provision of the declaration, the
2250association bylaws, or reasonable rules of the association. No
2251fine will become a lien against a unit. No fine may exceed $100
2252per violation. However, a fine may be levied on the basis of
2253each day of a continuing violation, with a single notice and
2254opportunity for hearing, provided that no such fine shall in the
2255aggregate exceed $1,000. No fine may be levied except after
2256giving reasonable notice and opportunity for a hearing to the
2257unit owner and, if applicable, its licensee or invitee. The
2258hearing must be held before a committee of other unit owners who
2259are not members of the board of administration of the
2260association. If the committee does not agree with the fine, the
2261fine may not be levied. The provisions of this subsection do not
2262apply to unoccupied units.
2263     (4)  Anyone subject to an action under this section shall
2264be notified of the violation by certified mail, return receipt
2265requested, and, except in the case of eminent danger to person
2266or property, have 30 days in which to respond in writing. If no
2267response is provided and the violation continues or is repeated,
2268the association may proceed under subsections (1) and (2)
2269without further notice except as provided in subsection (3).
2270     Section 35.  Section 718.501, Florida Statutes, is amended
2271to read:
2272     718.501  Powers and duties of Division of Florida Land
2273Sales, Condominiums, Homeowners' Associations, and Mobile
2274Homes.--
2275     (1)  The Division of Florida Land Sales, Condominiums,
2276Homeowners' Associations, and Mobile Homes of the Department of
2277Business and Professional Regulation, referred to as the
2278"division" in this part, in addition to other powers and duties
2279prescribed by chapter 498, has the power to enforce and ensure
2280compliance with the provisions of this chapter and rules
2281promulgated pursuant hereto relating to the development,
2282construction, sale, lease, ownership, operation, and management
2283of residential condominium units. In performing its duties, the
2284division has the following powers and duties:
2285     (a)  The division may make necessary public or private
2286investigations within or outside this state to determine whether
2287any person has violated this chapter or any rule or order
2288hereunder, to aid in the enforcement of this chapter, or to aid
2289in the adoption of rules or forms hereunder.
2290     (b)  The division may require or permit any person to file
2291a statement in writing, under oath or otherwise, as the division
2292determines, as to the facts and circumstances concerning a
2293matter to be investigated.
2294     (c)  For the purpose of any investigation under this
2295chapter, the division director or any officer or employee
2296designated by the division director may administer oaths or
2297affirmations, subpoena witnesses and compel their attendance,
2298take evidence, and require the production of any matter which is
2299relevant to the investigation, including the existence,
2300description, nature, custody, condition, and location of any
2301books, documents, or other tangible things and the identity and
2302location of persons having knowledge of relevant facts or any
2303other matter reasonably calculated to lead to the discovery of
2304material evidence. Upon the failure by a person to obey a
2305subpoena or to answer questions propounded by the investigating
2306officer and upon reasonable notice to all persons affected
2307thereby, the division may apply to the circuit court for an
2308order compelling compliance.
2309     (d)  Notwithstanding any remedies available to unit owners
2310and associations, if the division has reasonable cause to
2311believe that a violation of any provision of this chapter or
2312rule promulgated pursuant hereto has occurred, the division may
2313institute enforcement proceedings in its own name against any
2314developer, association, officer, or member of the board of
2315administration, or its assignees or agents, as follows:
2316     1.  The division may permit a person whose conduct or
2317actions may be under investigation to waive formal proceedings
2318and enter into a consent proceeding whereby orders, rules, or
2319letters of censure or warning, whether formal or informal, may
2320be entered against the person.
2321     2.  The division may issue an order requiring the
2322developer, association, officer, or member of the board of
2323administration, or its assignees or agents, to cease and desist
2324from the unlawful practice and take such affirmative action as
2325in the judgment of the division will carry out the purposes of
2326this chapter. Such affirmative action may include, but is not
2327limited to, an order requiring a developer to pay moneys
2328determined to be owed to a condominium association.
2329     3.  The division may bring an action in circuit court on
2330behalf of a class of unit owners, lessees, or purchasers for
2331declaratory relief, injunctive relief, or restitution.
2332     4.  The division may impose a civil penalty against a
2333developer or association, or its assignee or agent, for any
2334violation of this chapter or a rule promulgated pursuant hereto.
2335The division may impose a civil penalty individually against any
2336officer or board member who willfully and knowingly violates a
2337provision of this chapter, a rule adopted pursuant hereto, or a
2338final order of the division. The term "willfully and knowingly"
2339means that the division informed the officer or board member
2340that his or her action or intended action violates this chapter,
2341a rule adopted under this chapter, or a final order of the
2342division and that the officer or board member refused to comply
2343with the requirements of this chapter, a rule adopted under this
2344chapter, or a final order of the division. The division, prior
2345to initiating formal agency action under chapter 120, shall
2346afford the officer or board member an opportunity to voluntarily
2347comply with this chapter, a rule adopted under this chapter, or
2348a final order of the division. An officer or board member who
2349complies within 10 days is not subject to a civil penalty. A
2350penalty may be imposed on the basis of each day of continuing
2351violation, but in no event shall the penalty for any offense
2352exceed $5,000. By January 1, 1998, the division shall adopt, by
2353rule, penalty guidelines applicable to possible violations or to
2354categories of violations of this chapter or rules adopted by the
2355division. The guidelines must specify a meaningful range of
2356civil penalties for each such violation of the statute and rules
2357and must be based upon the harm caused by the violation, the
2358repetition of the violation, and upon such other factors deemed
2359relevant by the division. For example, the division may consider
2360whether the violations were committed by a developer or owner-
2361controlled association, the size of the association, and other
2362factors. The guidelines must designate the possible mitigating
2363or aggravating circumstances that justify a departure from the
2364range of penalties provided by the rules. It is the legislative
2365intent that minor violations be distinguished from those which
2366endanger the health, safety, or welfare of the condominium
2367residents or other persons and that such guidelines provide
2368reasonable and meaningful notice to the public of likely
2369penalties that may be imposed for proscribed conduct. This
2370subsection does not limit the ability of the division to
2371informally dispose of administrative actions or complaints by
2372stipulation, agreed settlement, or consent order. All amounts
2373collected shall be deposited with the Chief Financial Officer to
2374the credit of the Division of Florida Land Sales, Condominiums,
2375Homeowners' Associations, and Mobile Homes Trust Fund. If a
2376developer fails to pay the civil penalty, the division shall
2377thereupon issue an order directing that such developer cease and
2378desist from further operation until such time as the civil
2379penalty is paid or may pursue enforcement of the penalty in a
2380court of competent jurisdiction. If an association fails to pay
2381the civil penalty, the division shall thereupon pursue
2382enforcement in a court of competent jurisdiction, and the order
2383imposing the civil penalty or the cease and desist order will
2384not become effective until 20 days after the date of such order.
2385Any action commenced by the division shall be brought in the
2386county in which the division has its executive offices or in the
2387county where the violation occurred.
2388     (e)  The division shall is authorized to prepare and
2389disseminate a prospectus and other information to assist
2390prospective owners, purchasers, lessees, and developers of
2391residential condominiums in assessing the rights, privileges,
2392and duties pertaining thereto.
2393     (f)  The division has authority to adopt rules pursuant to
2394ss. 120.536(1) and 120.54 to implement and enforce the
2395provisions of this chapter.
2396     (g)  The division shall establish procedures for providing
2397notice to an association when the division is considering the
2398issuance of a declaratory statement with respect to the
2399declaration of condominium or any related document governing in
2400such condominium community.
2401     (h)  The division shall furnish each association which pays
2402the fees required by paragraph (2)(a) a copy of this act,
2403subsequent changes to this act on an annual basis, an amended
2404version of this act as it becomes available from the Secretary
2405of State's office on a biennial basis, and the rules promulgated
2406pursuant thereto on an annual basis.
2407     (i)  The division shall annually provide each association
2408with a summary of declaratory statements and formal legal
2409opinions relating to the operations of condominiums which were
2410rendered by the division during the previous year.
2411     (j)  The division shall provide training programs for
2412condominium association board members and unit owners in
2413conjunction with the recommendations of the ombudsman, at the
2414associations' expense.
2415     (k)  The division shall maintain a toll-free telephone
2416number accessible to condominium unit owners.
2417     (l)  The division shall develop a program to certify both
2418volunteer and paid mediators to provide mediation of condominium
2419disputes. The division shall provide, upon request, a list of
2420such mediators to any association, unit owner, or other
2421participant in arbitration proceedings under s. 718.1255
2422requesting a copy of the list. The division shall include on the
2423list of volunteer mediators only the names of persons who have
2424received at least 20 hours of training in mediation techniques
2425or who have mediated at least 20 disputes. In order to become
2426initially certified by the division, paid mediators must be
2427certified by the Supreme Court to mediate court cases in either
2428county or circuit courts. However, the division may adopt, by
2429rule, additional factors for the certification of paid
2430mediators, which factors must be related to experience,
2431education, or background. Any person initially certified as a
2432paid mediator by the division must, in order to continue to be
2433certified, comply with the factors or requirements imposed by
2434rules adopted by the division.
2435     (m)  When a complaint is made, the division shall conduct
2436its inquiry with due regard to the interests of the affected
2437parties. Within 30 days after receipt of a complaint, the
2438division shall acknowledge the complaint in writing and notify
2439the complainant whether the complaint is within the jurisdiction
2440of the division and whether additional information is needed by
2441the division from the complainant. The division shall conduct
2442its investigation and shall, within 90 days after receipt of the
2443original complaint or of timely requested additional
2444information, take action upon the complaint. However, the
2445failure to complete the investigation within 90 days does not
2446prevent the division from continuing the investigation,
2447accepting or considering evidence obtained or received after 90
2448days, or taking administrative action if reasonable cause exists
2449to believe that a violation of this chapter or a rule of the
2450division has occurred. If an investigation is not completed
2451within the time limits established in this paragraph, the
2452division shall, on a monthly basis, notify the complainant in
2453writing of the status of the investigation. When reporting its
2454action to the complainant, the division shall inform the
2455complainant of any right to a hearing pursuant to ss. 120.569
2456and 120.57.
2457     (n)  Upon a finding that any association has committed a
2458violation within the jurisdiction of the division, the division
2459shall require the association to:
2460     1.  Mail and post a notice to all unit owners setting forth
2461the facts and findings relative to any and all violations, as
2462well as a description of the corrective action required.
2463     2.  Participate in a mandatory educational training program
2464that shall be directly related to the violation, taught by a
2465division-approved provider, and completed within 90 days from
2466the date of notification of the finding to the board members.
2467
2468Failure of the association to comply with this paragraph shall
2469result in a civil penalty to the association in the amount of
2470$500 for each week the notice is not mailed and posted or the
2471educational training is not completed.
2472     (2)(a)  Effective January 1, 1992, each condominium
2473association which operates more than two units shall pay to the
2474division an annual fee in the amount of $4 for each residential
2475unit in condominiums operated by the association. If the fee is
2476not paid by March 1, then the association shall be assessed a
2477penalty of 10 percent of the amount due, and the association
2478will not have standing to maintain or defend any action in the
2479courts of this state until the amount due, plus any penalty, is
2480paid.
2481     (b)  All fees shall be deposited in the Division of Florida
2482Land Sales, Condominiums, Homeowners' Associations, and Mobile
2483Homes Trust Fund as provided by law. One-fifth of all fees
2484deposited by the division shall be allocated and transferred to
2485the Office of the Condominium Ombudsman.
2486     Section 36.  Section 718.5011, Florida Statutes, is amended
2487to read:
2488     718.5011  Ombudsman; appointment; administration.--
2489     (1)  There is created an Office of the Condominium
2490Ombudsman, to be located, solely for administrative purposes,
2491within the Division of Florida Land Sales, Condominiums,
2492Homeowners' Associations, and Mobile Homes. The ombudsman shall
2493exercise his or her policymaking and other functions delegated
2494by this chapter independently of the Department of Business and
2495Professional Regulation and without approval or control of the
2496department. The department shall render administrative support
2497to the Office of the Condominium Ombudsman in matters pertaining
2498to budget, personnel, office space, equipment, and supplies. All
2499revenues collected for the office by the department shall be
2500deposited in a separate fund or account from which the
2501department may not use or divert the revenues. The functions of
2502the office shall be funded by the Division of Florida Land
2503Sales, Condominiums, Homeowners' Associations, and Mobile Homes
2504Trust Fund. The ombudsman shall be a bureau chief of the
2505division, and the office shall be set within the division in the
2506same manner as any other bureau is staffed and funded.
2507     (2)  The Governor shall appoint the ombudsman. The
2508ombudsman must be an attorney admitted to practice before the
2509Florida Supreme Court and shall serve at the pleasure of the
2510Governor. A vacancy in the office shall be filled in the same
2511manner as the original appointment. An officer or full-time
2512employee of the ombudsman's office may not actively engage in
2513any other business or profession; serve as the representative of
2514any political party, executive committee, or other governing
2515body of a political party; serve as an executive, officer, or
2516employee of a political party; receive remuneration for
2517activities on behalf of any candidate for public office; or
2518engage in soliciting votes or other activities on behalf of a
2519candidate for public office. The ombudsman or any employee of
2520his or her office may not become a candidate for election to
2521public office unless he or she first resigns from his or her
2522office or employment.
2523     Section 37.  Section 718.5012, Florida Statutes, is amended
2524to read:
2525     718.5012  Ombudsman; powers and duties.--
2526     (1)  The ombudsman shall have the powers that are necessary
2527to carry out the duties of his or her office, including the
2528following specific powers:
2529     (a)(1)  To have access to and use of all files and records
2530of the division.
2531     (b)(2)  To employ professional and clerical staff as
2532necessary for the efficient operation of the office.
2533     (c)(3)  To prepare and issue reports and recommendations to
2534the Governor, the department, the division, the Advisory Council
2535on Condominiums, the President of the Senate, and the Speaker of
2536the House of Representatives on any matter or subject within the
2537jurisdiction of the division. The ombudsman shall make
2538recommendations he or she deems appropriate for legislation
2539relative to division procedures, rules, jurisdiction, personnel,
2540and functions.
2541     (d)(4)  To act as liaison between the division, unit
2542owners, boards of directors, board members, community
2543association managers, and other affected parties. The ombudsman
2544shall develop policies and procedures to assist unit owners,
2545boards of directors, board members, community association
2546managers, and other affected parties to understand their rights
2547and responsibilities as set forth in this chapter and the
2548condominium documents governing their respective association.
2549The ombudsman shall coordinate and assist in the preparation and
2550adoption of educational and reference material, and shall
2551endeavor to coordinate with private or volunteer providers of
2552these services, so that the availability of these resources is
2553made known to the largest possible audience.
2554     (e)(5)  To monitor and review procedures and disputes
2555concerning condominium elections or meetings, including, but not
2556limited to, recommending that the division pursue enforcement
2557action in any manner where there is reasonable cause to believe
2558that election misconduct has occurred. The division shall
2559process the ombudsman's recommendations and petitions in an
2560expedited manner and defer to his or her findings. For the
2561purpose of fulfilling his or her duties under this chapter, the
2562ombudsman may administer oaths or affirmations, subpoena
2563witnesses and compel their attendance, take evidence, and
2564require the production of any matter that is relevant to the
2565inquiry, including the existence, description, nature, custody,
2566condition, and location of any books, documents, or other
2567tangible things and the identity and location of persons having
2568knowledge of relevant facts or any other matter reasonably
2569calculated to lead to the discovery of material evidence. Upon
2570the failure by a person to obey a subpoena or to answer
2571questions asked by the ombudsman and upon reasonable notice to
2572all persons affected thereby, the ombudsman may apply to the
2573circuit court for an order compelling compliance.
2574     (f)(6)  To make recommendations to the division for changes
2575in rules and procedures for the filing, investigation, and
2576resolution of complaints filed by unit owners, associations, and
2577managers.
2578     (g)(7)  To provide resources to assist members of boards of
2579directors and officers of associations to carry out their powers
2580and duties consistent with this chapter, division rules, and the
2581condominium documents governing the association.
2582     (h)(8)  To order, encourage, and facilitate voluntary
2583meetings with and between unit owners, boards of directors,
2584board members, community association managers, and other
2585affected parties when the meetings may assist in resolving a
2586dispute within a community association before a person submits a
2587dispute for a formal or administrative remedy. It is the intent
2588of the Legislature that the ombudsman act as a neutral resource
2589for both the rights and responsibilities of unit owners,
2590associations, and board members.
2591     (i)  To make recommendations to the division to pursue
2592enforcement action in circuit court on behalf of a class of unit
2593owners, lessees, or purchasers for declaratory relief,
2594injunctive relief, or restitution against any developer,
2595association, officer, or member of the board of administration,
2596or its assignees or agents, where there is reasonable cause to
2597believe misconduct has occurred. The division shall process the
2598ombudsman's recommendations and petitions in an expedited manner
2599and defer to his or her findings.
2600     (j)  To certify recall of board member proceedings pursuant
2601to s. 718.112(2)(j).
2602     (2)(9)  Fifteen percent of the total voting interests in a
2603condominium association, or six unit owners, whichever is
2604greater, may petition the ombudsman to appoint an election
2605monitor to attend the annual meeting of the unit owners and
2606conduct the election of directors. The ombudsman upon petition
2607may order any aspect of the election process as set forth in s.
2608718.112(2)(d)3. to be conducted by the election monitor. No
2609association or person may reject an election monitor appointed
2610by the ombudsman or interfere with an election monitor in the
2611performance of his or her duties. The ombudsman may order an
2612association to implement a known division remedy for a
2613procedural violation of s. 718.112(2)(d)3. prior to and during a
2614monitored election. The ombudsman shall appoint a division
2615employee, a person or persons specializing in condominium
2616election monitoring, or an attorney licensed to practice in this
2617state as the election monitor. All costs associated with the
2618election monitoring process shall be paid by the association.
2619The division shall adopt a rule establishing procedures for the
2620appointment of election monitors and the scope and extent of the
2621monitor's role in the election process.
2622     (3)  Any unit owner or association acting in good faith on
2623the advice or opinion of the office of the ombudsman shall be
2624immune from any penalties or actions.
2625     (4)  If the ombudsman has reasonable cause to believe that
2626a violation of any provision of this chapter or rule adopted
2627under this chapter has occurred, the ombudsman may issue an
2628order requiring any developer, association, officer, or member
2629of the board of administration, or its assignees or agents, to
2630cease and desist from the unlawful practice and to take such
2631affirmative action that will carry out the purposes of this
2632chapter.
2633     Section 38.  Paragraph (a) of subsection (2) of section
2634718.502, Florida Statutes, is amended to read:
2635     718.502  Filing prior to sale or lease.--
2636     (2)(a)  Prior to filing as required by subsection (1), and
2637prior to acquiring an ownership, leasehold, or contractual
2638interest in the land upon which the condominium is to be
2639developed, a developer shall not offer a contract for purchase
2640of a unit or lease of a unit for more than 5 years. However, the
2641developer may accept deposits for reservations upon the approval
2642of a fully executed escrow agreement and reservation agreement
2643form properly filed with the Division of Florida Land Sales,
2644Condominiums, Homeowners' Associations, and Mobile Homes. Each
2645filing of a proposed reservation program shall be accompanied by
2646a filing fee of $250. Reservations shall not be taken on a
2647proposed condominium unless the developer has an ownership,
2648leasehold, or contractual interest in the land upon which the
2649condominium is to be developed. The division shall notify the
2650developer within 20 days of receipt of the reservation filing of
2651any deficiencies contained therein. Such notification shall not
2652preclude the determination of reservation filing deficiencies at
2653a later date, nor shall it relieve the developer of any
2654responsibility under the law. The escrow agreement and the
2655reservation agreement form shall include a statement of the
2656right of the prospective purchaser to an immediate unqualified
2657refund of the reservation deposit moneys upon written request to
2658the escrow agent by the prospective purchaser or the developer.
2659     Section 39.  Section 718.504, Florida Statutes, is amended
2660to read:
2661     718.504  Prospectus or offering circular.--Every developer
2662of a residential condominium which contains more than 20
2663residential units, or which is part of a group of residential
2664condominiums which will be served by property to be used in
2665common by unit owners of more than 20 residential units, shall
2666prepare a prospectus or offering circular and file it with the
2667Division of Florida Land Sales, Condominiums, Homeowners'
2668Associations, and Mobile Homes prior to entering into an
2669enforceable contract of purchase and sale of any unit or lease
2670of a unit for more than 5 years and shall furnish a copy of the
2671prospectus or offering circular to each buyer. In addition to
2672the prospectus or offering circular, each buyer shall be
2673furnished a separate page entitled "Frequently Asked Questions
2674and Answers," which shall be in accordance with a format
2675approved by the division and a copy of the financial information
2676required by s. 718.111. This page shall, in readable language,
2677inform prospective purchasers regarding their voting rights and
2678unit use restrictions, including restrictions on the leasing of
2679a unit; shall indicate whether and in what amount the unit
2680owners or the association is obligated to pay rent or land use
2681fees for recreational or other commonly used facilities; shall
2682contain a statement identifying that amount of assessment which,
2683pursuant to the budget, would be levied upon each unit type,
2684exclusive of any special assessments, and which shall further
2685identify the basis upon which assessments are levied, whether
2686monthly, quarterly, or otherwise; shall state and identify any
2687court cases in which the association is currently a party of
2688record in which the association may face liability in excess of
2689$100,000; and which shall further state whether membership in a
2690recreational facilities association is mandatory, and if so,
2691shall identify the fees currently charged per unit type. The
2692division shall by rule require such other disclosure as in its
2693judgment will assist prospective purchasers. The prospectus or
2694offering circular may include more than one condominium,
2695although not all such units are being offered for sale as of the
2696date of the prospectus or offering circular. The prospectus or
2697offering circular must contain the following information:
2698     (1)  The front cover or the first page must contain only:
2699     (a)  The name of the condominium.
2700     (b)  The following statements in conspicuous type:
2701     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
2702MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
2703     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
2704NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
2705ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
2706MATERIALS.
2707     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
2708STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
2709PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
2710REPRESENTATIONS.
2711     (2)  Summary: The next page must contain all statements
2712required to be in conspicuous type in the prospectus or offering
2713circular.
2714     (3)  A separate index of the contents and exhibits of the
2715prospectus.
2716     (4)  Beginning on the first page of the text (not including
2717the summary and index), a description of the condominium,
2718including, but not limited to, the following information:
2719     (a)  Its name and location.
2720     (b)  A description of the condominium property, including,
2721without limitation:
2722     1.  The number of buildings, the number of units in each
2723building, the number of bathrooms and bedrooms in each unit, and
2724the total number of units, if the condominium is not a phase
2725condominium, or the maximum number of buildings that may be
2726contained within the condominium, the minimum and maximum
2727numbers of units in each building, the minimum and maximum
2728numbers of bathrooms and bedrooms that may be contained in each
2729unit, and the maximum number of units that may be contained
2730within the condominium, if the condominium is a phase
2731condominium.
2732     2.  The page in the condominium documents where a copy of
2733the plot plan and survey of the condominium is located.
2734     3.  The estimated latest date of completion of
2735constructing, finishing, and equipping. In lieu of a date, the
2736description shall include a statement that the estimated date of
2737completion of the condominium is in the purchase agreement and a
2738reference to the article or paragraph containing that
2739information.
2740     (c)  The maximum number of units that will use facilities
2741in common with the condominium. If the maximum number of units
2742will vary, a description of the basis for variation and the
2743minimum amount of dollars per unit to be spent for additional
2744recreational facilities or enlargement of such facilities. If
2745the addition or enlargement of facilities will result in a
2746material increase of a unit owner's maintenance expense or
2747rental expense, if any, the maximum increase and limitations
2748thereon shall be stated.
2749     (5)(a)  A statement in conspicuous type describing whether
2750the condominium is created and being sold as fee simple
2751interests or as leasehold interests. If the condominium is
2752created or being sold on a leasehold, the location of the lease
2753in the disclosure materials shall be stated.
2754     (b)  If timeshare estates are or may be created with
2755respect to any unit in the condominium, a statement in
2756conspicuous type stating that timeshare estates are created and
2757being sold in units in the condominium.
2758     (6)  A description of the recreational and other commonly
2759used facilities that will be used only by unit owners of the
2760condominium, including, but not limited to, the following:
2761     (a)  Each room and its intended purposes, location,
2762approximate floor area, and capacity in numbers of people.
2763     (b)  Each swimming pool, as to its general location,
2764approximate size and depths, approximate deck size and capacity,
2765and whether heated.
2766     (c)  Additional facilities, as to the number of each
2767facility, its approximate location, approximate size, and
2768approximate capacity.
2769     (d)  A general description of the items of personal
2770property and the approximate number of each item of personal
2771property that the developer is committing to furnish for each
2772room or other facility or, in the alternative, a representation
2773as to the minimum amount of expenditure that will be made to
2774purchase the personal property for the facility.
2775     (e)  The estimated date when each room or other facility
2776will be available for use by the unit owners.
2777     (f)1.  An identification of each room or other facility to
2778be used by unit owners that will not be owned by the unit owners
2779or the association;
2780     2.  A reference to the location in the disclosure materials
2781of the lease or other agreements providing for the use of those
2782facilities; and
2783     3.  A description of the terms of the lease or other
2784agreements, including the length of the term; the rent payable,
2785directly or indirectly, by each unit owner, and the total rent
2786payable to the lessor, stated in monthly and annual amounts for
2787the entire term of the lease; and a description of any option to
2788purchase the property leased under any such lease, including the
2789time the option may be exercised, the purchase price or how it
2790is to be determined, the manner of payment, and whether the
2791option may be exercised for a unit owner's share or only as to
2792the entire leased property.
2793     (g)  A statement as to whether the developer may provide
2794additional facilities not described above; their general
2795locations and types; improvements or changes that may be made;
2796the approximate dollar amount to be expended; and the maximum
2797additional common expense or cost to the individual unit owners
2798that may be charged during the first annual period of operation
2799of the modified or added facilities.
2800
2801Descriptions as to locations, areas, capacities, numbers,
2802volumes, or sizes may be stated as approximations or minimums.
2803     (7)  A description of the recreational and other facilities
2804that will be used in common with other condominiums, community
2805associations, or planned developments which require the payment
2806of the maintenance and expenses of such facilities, either
2807directly or indirectly, by the unit owners. The description
2808shall include, but not be limited to, the following:
2809     (a)  Each building and facility committed to be built.
2810     (b)  Facilities not committed to be built except under
2811certain conditions, and a statement of those conditions or
2812contingencies.
2813     (c)  As to each facility committed to be built, or which
2814will be committed to be built upon the happening of one of the
2815conditions in paragraph (b), a statement of whether it will be
2816owned by the unit owners having the use thereof or by an
2817association or other entity which will be controlled by them, or
2818others, and the location in the exhibits of the lease or other
2819document providing for use of those facilities.
2820     (d)  The year in which each facility will be available for
2821use by the unit owners or, in the alternative, the maximum
2822number of unit owners in the project at the time each of all of
2823the facilities is committed to be completed.
2824     (e)  A general description of the items of personal
2825property, and the approximate number of each item of personal
2826property, that the developer is committing to furnish for each
2827room or other facility or, in the alternative, a representation
2828as to the minimum amount of expenditure that will be made to
2829purchase the personal property for the facility.
2830     (f)  If there are leases, a description thereof, including
2831the length of the term, the rent payable, and a description of
2832any option to purchase.
2833
2834Descriptions shall include location, areas, capacities, numbers,
2835volumes, or sizes and may be stated as approximations or
2836minimums.
2837     (8)  Recreation lease or associated club membership:
2838     (a)  If any recreational facilities or other facilities
2839offered by the developer and available to, or to be used by,
2840unit owners are to be leased or have club membership associated,
2841the following statement in conspicuous type shall be included:
2842THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
2843CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
2844CONDOMINIUM. There shall be a reference to the location in the
2845disclosure materials where the recreation lease or club
2846membership is described in detail.
2847     (b)  If it is mandatory that unit owners pay a fee, rent,
2848dues, or other charges under a recreational facilities lease or
2849club membership for the use of facilities, there shall be in
2850conspicuous type the applicable statement:
2851     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
2852MANDATORY FOR UNIT OWNERS; or
2853     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
2854TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
2855     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
2856COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
2857REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
2858LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
2859     4.  A similar statement of the nature of the organization
2860or the manner in which the use rights are created, and that unit
2861owners are required to pay.
2862
2863Immediately following the applicable statement, the location in
2864the disclosure materials where the development is described in
2865detail shall be stated.
2866     (c)  If the developer, or any other person other than the
2867unit owners and other persons having use rights in the
2868facilities, reserves, or is entitled to receive, any rent, fee,
2869or other payment for the use of the facilities, then there shall
2870be the following statement in conspicuous type: THE UNIT OWNERS
2871OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
2872RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
2873following this statement, the location in the disclosure
2874materials where the rent or land use fees are described in
2875detail shall be stated.
2876     (d)  If, in any recreation format, whether leasehold, club,
2877or other, any person other than the association has the right to
2878a lien on the units to secure the payment of assessments, rent,
2879or other exactions, there shall appear a statement in
2880conspicuous type in substantially the following form:
2881     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2882SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
2883RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
2884PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
2885     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2886SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
2887FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
2888OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE
2889THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
2890
2891Immediately following the applicable statement, the location in
2892the disclosure materials where the lien or lien right is
2893described in detail shall be stated.
2894     (9)  If the developer or any other person has the right to
2895increase or add to the recreational facilities at any time after
2896the establishment of the condominium whose unit owners have use
2897rights therein, without the consent of the unit owners or
2898associations being required, there shall appear a statement in
2899conspicuous type in substantially the following form:
2900RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
2901OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
2902statement, the location in the disclosure materials where such
2903reserved rights are described shall be stated.
2904     (10)  A statement of whether the developer's plan includes
2905a program of leasing units rather than selling them, or leasing
2906units and selling them subject to such leases. If so, there
2907shall be a description of the plan, including the number and
2908identification of the units and the provisions and term of the
2909proposed leases, and a statement in boldfaced type that: THE
2910UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
2911     (11)  The arrangements for management of the association
2912and maintenance and operation of the condominium property and of
2913other property that will serve the unit owners of the
2914condominium property, and a description of the management
2915contract and all other contracts for these purposes having a
2916term in excess of 1 year, including the following:
2917     (a)  The names of contracting parties.
2918     (b)  The term of the contract.
2919     (c)  The nature of the services included.
2920     (d)  The compensation, stated on a monthly and annual
2921basis, and provisions for increases in the compensation.
2922     (e)  A reference to the volumes and pages of the
2923condominium documents and of the exhibits containing copies of
2924such contracts.
2925
2926Copies of all described contracts shall be attached as exhibits.
2927If there is a contract for the management of the condominium
2928property, then a statement in conspicuous type in substantially
2929the following form shall appear, identifying the proposed or
2930existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
2931THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
2932CONTRACT MANAGER). Immediately following this statement, the
2933location in the disclosure materials of the contract for
2934management of the condominium property shall be stated.
2935     (12)  If the developer or any other person or persons other
2936than the unit owners has the right to retain control of the
2937board of administration of the association for a period of time
2938which can exceed 1 year after the closing of the sale of a
2939majority of the units in that condominium to persons other than
2940successors or alternate developers, then a statement in
2941conspicuous type in substantially the following form shall be
2942included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
2943RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
2944HAVE BEEN SOLD. Immediately following this statement, the
2945location in the disclosure materials where this right to control
2946is described in detail shall be stated.
2947     (13)  If there are any restrictions upon the sale,
2948transfer, conveyance, or leasing of a unit, then a statement in
2949conspicuous type in substantially the following form shall be
2950included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
2951CONTROLLED. Immediately following this statement, the location
2952in the disclosure materials where the restriction, limitation,
2953or control on the sale, lease, or transfer of units is described
2954in detail shall be stated.
2955     (14)  If the condominium is part of a phase project, the
2956following information shall be stated:
2957     (a)  A statement in conspicuous type in substantially the
2958following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
2959UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
2960this statement, the location in the disclosure materials where
2961the phasing is described shall be stated.
2962     (b)  A summary of the provisions of the declaration which
2963provide for the phasing.
2964     (c)  A statement as to whether or not residential buildings
2965and units which are added to the condominium may be
2966substantially different from the residential buildings and units
2967originally in the condominium. If the added residential
2968buildings and units may be substantially different, there shall
2969be a general description of the extent to which such added
2970residential buildings and units may differ, and a statement in
2971conspicuous type in substantially the following form shall be
2972included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
2973MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
2974UNITS IN THE CONDOMINIUM. Immediately following this statement,
2975the location in the disclosure materials where the extent to
2976which added residential buildings and units may substantially
2977differ is described shall be stated.
2978     (d)  A statement of the maximum number of buildings
2979containing units, the maximum and minimum numbers of units in
2980each building, the maximum number of units, and the minimum and
2981maximum square footage of the units that may be contained within
2982each parcel of land which may be added to the condominium.
2983     (15)  If a condominium created on or after July 1, 2000, is
2984or may become part of a multicondominium, the following
2985information must be provided:
2986     (a)  A statement in conspicuous type in substantially the
2987following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
2988MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
2989(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
2990this statement, the location in the prospectus or offering
2991circular and its exhibits where the multicondominium aspects of
2992the offering are described must be stated.
2993     (b)  A summary of the provisions in the declaration,
2994articles of incorporation, and bylaws which establish and
2995provide for the operation of the multicondominium, including a
2996statement as to whether unit owners in the condominium will have
2997the right to use recreational or other facilities located or
2998planned to be located in other condominiums operated by the same
2999association, and the manner of sharing the common expenses
3000related to such facilities.
3001     (c)  A statement of the minimum and maximum number of
3002condominiums, and the minimum and maximum number of units in
3003each of those condominiums, which will or may be operated by the
3004association, and the latest date by which the exact number will
3005be finally determined.
3006     (d)  A statement as to whether any of the condominiums in
3007the multicondominium may include units intended to be used for
3008nonresidential purposes and the purpose or purposes permitted
3009for such use.
3010     (e)  A general description of the location and approximate
3011acreage of any land on which any additional condominiums to be
3012operated by the association may be located.
3013     (16)  If the condominium is created by conversion of
3014existing improvements, the following information shall be
3015stated:
3016     (a)  The information required by s. 718.616.
3017     (b)  A caveat that there are no express warranties unless
3018they are stated in writing by the developer.
3019     (17)  A summary of the restrictions, if any, to be imposed
3020on units concerning the use of any of the condominium property,
3021including statements as to whether there are restrictions upon
3022children and pets, and reference to the volumes and pages of the
3023condominium documents where such restrictions are found, or if
3024such restrictions are contained elsewhere, then a copy of the
3025documents containing the restrictions shall be attached as an
3026exhibit.
3027     (18)  If there is any land that is offered by the developer
3028for use by the unit owners and that is neither owned by them nor
3029leased to them, the association, or any entity controlled by
3030unit owners and other persons having the use rights to such
3031land, a statement shall be made as to how such land will serve
3032the condominium. If any part of such land will serve the
3033condominium, the statement shall describe the land and the
3034nature and term of service, and the declaration or other
3035instrument creating such servitude shall be included as an
3036exhibit.
3037     (19)  The manner in which utility and other services,
3038including, but not limited to, sewage and waste disposal, water
3039supply, and storm drainage, will be provided and the person or
3040entity furnishing them.
3041     (20)  An explanation of the manner in which the
3042apportionment of common expenses and ownership of the common
3043elements has been determined.
3044     (21)  An estimated operating budget for the condominium and
3045the association, prepared in good faith, and a schedule of the
3046unit owner's expenses shall be attached as an exhibit and shall
3047contain the following information:
3048     (a)  The estimated monthly and annual revenues and expenses
3049of the condominium and the association that are earned by the
3050association or collected from unit owners by assessments.
3051     (b)  The estimated monthly and annual expenses of each unit
3052owner for a unit, other than common expenses paid by all unit
3053owners, payable by the unit owner to persons or entities other
3054than the association, as well as to the association, including
3055fees assessed pursuant to s. 718.113(1) for maintenance of
3056limited common elements where such costs are shared only by
3057those entitled to use the limited common element, and the total
3058estimated monthly and annual expense. There may be excluded from
3059this estimate expenses which are not provided for or
3060contemplated by the condominium documents, including, but not
3061limited to, the costs of private telephone; maintenance of the
3062interior of condominium units, which is not the obligation of
3063the association; maid or janitorial services privately
3064contracted for by the unit owners; utility bills billed directly
3065to each unit owner for utility services to his or her unit;
3066insurance premiums other than those incurred for policies
3067obtained by the condominium; and similar personal expenses of
3068the unit owner. A unit owner's estimated payments for
3069assessments shall also be stated in the estimated amounts for
3070the times when they will be due.
3071     (c)  The estimated items of expenses of the condominium and
3072the association, except as excluded under paragraph (b),
3073including, but not limited to, the following items, which shall
3074be stated either as an association expense collectible by
3075assessments or as unit owners' expenses payable to persons other
3076than the association:
3077     1.  Expenses for the association and condominium:
3078     a.  Administration of the association.
3079     b.  Management fees.
3080     c.  Maintenance.
3081     d.  Rent for recreational and other commonly used
3082facilities.
3083     e.  Taxes upon association property.
3084     f.  Taxes upon leased areas.
3085     g.  Insurance.
3086     h.  Security provisions.
3087     i.  Other expenses.
3088     j.  Operating capital.
3089     k.  Reserves.
3090     l.  Fees payable to the division.
3091     2.  Expenses for a unit owner:
3092     a.  Rent for the unit, if subject to a lease.
3093     b.  Rent payable by the unit owner directly to the lessor
3094or agent under any recreational lease or lease for the use of
3095commonly used facilities, which use and payment is a mandatory
3096condition of ownership and is not included in the common expense
3097or assessments for common maintenance paid by the unit owners to
3098the association.
3099     (d)  The estimated amounts shall be stated for a period of
3100at least 12 months and may distinguish between the period prior
3101to the time unit owners other than the developer elect a
3102majority of the board of administration and the period after
3103that date.
3104     (22)  A schedule of estimated closing expenses to be paid
3105by a buyer or lessee of a unit and a statement of whether title
3106opinion or title insurance policy is available to the buyer and,
3107if so, at whose expense.
3108     (23)  The identity of the developer and the chief operating
3109officer or principal directing the creation and sale of the
3110condominium and a statement of its and his or her experience in
3111this field.
3112     (24)  Copies of the following, to the extent they are
3113applicable, shall be included as exhibits:
3114     (a)  The declaration of condominium, or the proposed
3115declaration if the declaration has not been recorded.
3116     (b)  The articles of incorporation creating the
3117association.
3118     (c)  The bylaws of the association.
3119     (d)  The ground lease or other underlying lease of the
3120condominium.
3121     (e)  The management agreement and all maintenance and other
3122contracts for management of the association and operation of the
3123condominium and facilities used by the unit owners having a
3124service term in excess of 1 year.
3125     (f)  The estimated operating budget for the condominium and
3126the required schedule of unit owners' expenses.
3127     (g)  A copy of the floor plan of the unit and the plot plan
3128showing the location of the residential buildings and the
3129recreation and other common areas.
3130     (h)  The lease of recreational and other facilities that
3131will be used only by unit owners of the subject condominium.
3132     (i)  The lease of facilities used by owners and others.
3133     (j)  The form of unit lease, if the offer is of a
3134leasehold.
3135     (k)  A declaration of servitude of properties serving the
3136condominium but not owned by unit owners or leased to them or
3137the association.
3138     (l)  The statement of condition of the existing building or
3139buildings, if the offering is of units in an operation being
3140converted to condominium ownership.
3141     (m)  The statement of inspection for termite damage and
3142treatment of the existing improvements, if the condominium is a
3143conversion.
3144     (n)  The form of agreement for sale or lease of units.
3145     (o)  A copy of the agreement for escrow of payments made to
3146the developer prior to closing.
3147     (p)  A copy of the documents containing any restrictions on
3148use of the property required by subsection (17).
3149     (25)  Any prospectus or offering circular complying, prior
3150to the effective date of this act, with the provisions of former
3151ss. 711.69 and 711.802 may continue to be used without amendment
3152or may be amended to comply with the provisions of this chapter.
3153     (26)  A brief narrative description of the location and
3154effect of all existing and intended easements located or to be
3155located on the condominium property other than those described
3156in the declaration.
3157     (27)  If the developer is required by state or local
3158authorities to obtain acceptance or approval of any dock or
3159marina facilities intended to serve the condominium, a copy of
3160any such acceptance or approval acquired by the time of filing
3161with the division under s. 718.502(1) or a statement that such
3162acceptance or approval has not been acquired or received.
3163     (28)  Evidence demonstrating that the developer has an
3164ownership, leasehold, or contractual interest in the land upon
3165which the condominium is to be developed.
3166     Section 40.  Section 718.508, Florida Statutes, is amended
3167to read:
3168     718.508  Regulation by Division of Hotels and
3169Restaurants.--In addition to the authority, regulation, or
3170control exercised by the Division of Florida Land Sales,
3171Condominiums, Homeowners' Associations, and Mobile Homes
3172pursuant to this act with respect to condominiums, buildings
3173included in a condominium property shall be subject to the
3174authority, regulation, or control of the Division of Hotels and
3175Restaurants of the Department of Business and Professional
3176Regulation, to the extent provided for in chapter 399.
3177     Section 41.  Section 718.509, Florida Statutes, is amended
3178to read:
3179     718.509  Division of Florida Land Sales, Condominiums,
3180Homeowners' Associations, and Mobile Homes Trust Fund.--All
3181funds collected by the division and any amount paid for a fee or
3182penalty under this chapter shall be deposited in the State
3183Treasury to the credit of the Division of Florida Land Sales,
3184Condominiums, Homeowners' Associations, and Mobile Homes Trust
3185Fund created by s. 498.019.
3186     Section 42.  Paragraph (a) of subsection (2) of section
3187718.608, Florida Statutes, is amended to read:
3188     718.608  Notice of intended conversion; time of delivery;
3189content.--
3190     (2)(a)  Each notice of intended conversion shall be dated
3191and in writing. The notice shall contain the following
3192statement, with the phrases of the following statement which
3193appear in upper case printed in conspicuous type:
3194
3195     These apartments are being converted to condominium by  
3196(name of developer)  , the developer.
3197     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
3198YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
3199AGREEMENT AS FOLLOWS:
3200     a.  If you have continuously been a resident of these
3201apartments during the last 180 days and your rental agreement
3202expires during the next 270 days, you may extend your rental
3203agreement for up to 270 days after the date of this notice.
3204     b.  If you have not been a continuous resident of these
3205apartments for the last 180 days and your rental agreement
3206expires during the next 180 days, you may extend your rental
3207agreement for up to 180 days after the date of this notice.
3208     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
3209MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
3210DATE OF THIS NOTICE.
3211     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
3212you may extend your rental agreement for up to 45 days after the
3213date of this notice while you decide whether to extend your
3214rental agreement as explained above. To do so, you must notify
3215the developer in writing. You will then have the full 45 days to
3216decide whether to extend your rental agreement as explained
3217above.
3218     3.  During the extension of your rental agreement you will
3219be charged the same rent that you are now paying.
3220     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
3221OF THE RENTAL AGREEMENT AS FOLLOWS:
3222     a.  If your rental agreement began or was extended or
3223renewed after May 1, 1980, and your rental agreement, including
3224extensions and renewals, has an unexpired term of 180 days or
3225less, you may cancel your rental agreement upon 30 days' written
3226notice and move. Also, upon 30 days' written notice, you may
3227cancel any extension of the rental agreement.
3228     b.  If your rental agreement was not begun or was not
3229extended or renewed after May 1, 1980, you may not cancel the
3230rental agreement without the consent of the developer. If your
3231rental agreement, including extensions and renewals, has an
3232unexpired term of 180 days or less, you may, however, upon 30
3233days' written notice cancel any extension of the rental
3234agreement.
3235     5.  All notices must be given in writing and sent by mail,
3236return receipt requested, or delivered in person to the
3237developer at this address:   (name and address of developer)  .
3238     6.  If you have continuously been a resident of these
3239apartments during the last 180 days:
3240     a.  You have the right to purchase your apartment and will
3241have 45 days to decide whether to purchase. If you do not buy
3242the unit at that price and the unit is later offered at a lower
3243price, you will have the opportunity to buy the unit at the
3244lower price. However, in all events your right to purchase the
3245unit ends when the rental agreement or any extension of the
3246rental agreement ends or when you waive this right in writing.
3247     b.  Within 90 days you will be provided purchase
3248information relating to your apartment, including the price of
3249your unit and the condition of the building. If you do not
3250receive this information within 90 days, your rental agreement
3251and any extension will be extended 1 day for each day over 90
3252days until you are given the purchase information. If you do not
3253want this rental agreement extension, you must notify the
3254developer in writing.
3255     7.  If you have any questions regarding this conversion or
3256the Condominium Act, you may contact the developer or the state
3257agency which regulates condominiums: The Division of Florida
3258Land Sales, Condominiums, Homeowners' Associations, and Mobile
3259Homes,   (Tallahassee address and telephone number of division)
3260 .
3261     Section 43.  Subsection (17) of section 719.103, Florida
3262Statutes, is amended to read:
3263     719.103  Definitions.--As used in this chapter:
3264     (17)  "Division" means the Division of Florida Land Sales,
3265Condominiums, Homeowners' Associations, and Mobile Homes of the
3266Department of Business and Professional Regulation.
3267     Section 44.  Subsection (7) is added to section 719.1055,
3268Florida Statutes, to read:
3269     719.1055  Amendment of cooperative documents; alteration
3270and acquisition of property.--
3271     (7)  Any amendment restricting cooperative owners' rights
3272relating to the rental of units applies only to unit owners who
3273consent to the amendment and unit owners who purchase their
3274units after the effective date of that amendment.
3275     Section 45.  Section 719.1255, Florida Statutes, is amended
3276to read:
3277     719.1255  Alternative resolution of disputes.--The Division
3278of Florida Land Sales, Condominiums, Homeowners' Associations,
3279and Mobile Homes of the Department of Business and Professional
3280Regulation shall provide for alternative dispute resolution in
3281accordance with s. 718.1255.
3282     Section 46.  Section 719.501, Florida Statutes, is amended
3283to read:
3284     719.501  Powers and duties of Division of Florida Land
3285Sales, Condominiums, Homeowners' Associations, and Mobile
3286Homes.--
3287     (1)  The Division of Florida Land Sales, Condominiums,
3288Homeowners' Associations, and Mobile Homes of the Department of
3289Business and Professional Regulation, referred to as the
3290"division" in this part, in addition to other powers and duties
3291prescribed by chapter 498, has the power to enforce and ensure
3292compliance with the provisions of this chapter and rules
3293promulgated pursuant hereto relating to the development,
3294construction, sale, lease, ownership, operation, and management
3295of residential cooperative units. In performing its duties, the
3296division shall have the following powers and duties:
3297     (a)  The division may make necessary public or private
3298investigations within or outside this state to determine whether
3299any person has violated this chapter or any rule or order
3300hereunder, to aid in the enforcement of this chapter, or to aid
3301in the adoption of rules or forms hereunder.
3302     (b)  The division may require or permit any person to file
3303a statement in writing, under oath or otherwise, as the division
3304determines, as to the facts and circumstances concerning a
3305matter to be investigated.
3306     (c)  For the purpose of any investigation under this
3307chapter, the division director or any officer or employee
3308designated by the division director may administer oaths or
3309affirmations, subpoena witnesses and compel their attendance,
3310take evidence, and require the production of any matter which is
3311relevant to the investigation, including the existence,
3312description, nature, custody, condition, and location of any
3313books, documents, or other tangible things and the identity and
3314location of persons having knowledge of relevant facts or any
3315other matter reasonably calculated to lead to the discovery of
3316material evidence. Upon failure by a person to obey a subpoena
3317or to answer questions propounded by the investigating officer
3318and upon reasonable notice to all persons affected thereby, the
3319division may apply to the circuit court for an order compelling
3320compliance.
3321     (d)  Notwithstanding any remedies available to unit owners
3322and associations, if the division has reasonable cause to
3323believe that a violation of any provision of this chapter or
3324rule promulgated pursuant hereto has occurred, the division may
3325institute enforcement proceedings in its own name against a
3326developer, association, officer, or member of the board, or its
3327assignees or agents, as follows:
3328     1.  The division may permit a person whose conduct or
3329actions may be under investigation to waive formal proceedings
3330and enter into a consent proceeding whereby orders, rules, or
3331letters of censure or warning, whether formal or informal, may
3332be entered against the person.
3333     2.  The division may issue an order requiring the
3334developer, association, officer, or member of the board, or its
3335assignees or agents, to cease and desist from the unlawful
3336practice and take such affirmative action as in the judgment of
3337the division will carry out the purposes of this chapter. Such
3338affirmative action may include, but is not limited to, an order
3339requiring a developer to pay moneys determined to be owed to a
3340condominium association.
3341     3.  The division may bring an action in circuit court on
3342behalf of a class of unit owners, lessees, or purchasers for
3343declaratory relief, injunctive relief, or restitution.
3344     4.  The division may impose a civil penalty against a
3345developer or association, or its assignees or agents, for any
3346violation of this chapter or a rule promulgated pursuant hereto.
3347The division may impose a civil penalty individually against any
3348officer or board member who willfully and knowingly violates a
3349provision of this chapter, a rule adopted pursuant to this
3350chapter, or a final order of the division. The term "willfully
3351and knowingly" means that the division informed the officer or
3352board member that his or her action or intended action violates
3353this chapter, a rule adopted under this chapter, or a final
3354order of the division, and that the officer or board member
3355refused to comply with the requirements of this chapter, a rule
3356adopted under this chapter, or a final order of the division.
3357The division, prior to initiating formal agency action under
3358chapter 120, shall afford the officer or board member an
3359opportunity to voluntarily comply with this chapter, a rule
3360adopted under this chapter, or a final order of the division. An
3361officer or board member who complies within 10 days is not
3362subject to a civil penalty. A penalty may be imposed on the
3363basis of each day of continuing violation, but in no event shall
3364the penalty for any offense exceed $5,000. By January 1, 1998,
3365the division shall adopt, by rule, penalty guidelines applicable
3366to possible violations or to categories of violations of this
3367chapter or rules adopted by the division. The guidelines must
3368specify a meaningful range of civil penalties for each such
3369violation of the statute and rules and must be based upon the
3370harm caused by the violation, the repetition of the violation,
3371and upon such other factors deemed relevant by the division. For
3372example, the division may consider whether the violations were
3373committed by a developer or owner-controlled association, the
3374size of the association, and other factors. The guidelines must
3375designate the possible mitigating or aggravating circumstances
3376that justify a departure from the range of penalties provided by
3377the rules. It is the legislative intent that minor violations be
3378distinguished from those which endanger the health, safety, or
3379welfare of the cooperative residents or other persons and that
3380such guidelines provide reasonable and meaningful notice to the
3381public of likely penalties that may be imposed for proscribed
3382conduct. This subsection does not limit the ability of the
3383division to informally dispose of administrative actions or
3384complaints by stipulation, agreed settlement, or consent order.
3385All amounts collected shall be deposited with the Chief
3386Financial Officer to the credit of the Division of Florida Land
3387Sales, Condominiums, Homeowners' Associations, and Mobile Homes
3388Trust Fund. If a developer fails to pay the civil penalty, the
3389division shall thereupon issue an order directing that such
3390developer cease and desist from further operation until such
3391time as the civil penalty is paid or may pursue enforcement of
3392the penalty in a court of competent jurisdiction. If an
3393association fails to pay the civil penalty, the division shall
3394thereupon pursue enforcement in a court of competent
3395jurisdiction, and the order imposing the civil penalty or the
3396cease and desist order shall not become effective until 20 days
3397after the date of such order. Any action commenced by the
3398division shall be brought in the county in which the division
3399has its executive offices or in the county where the violation
3400occurred.
3401     (e)  The division is authorized to prepare and disseminate
3402a prospectus and other information to assist prospective owners,
3403purchasers, lessees, and developers of residential cooperatives
3404in assessing the rights, privileges, and duties pertaining
3405thereto.
3406     (f)  The division has authority to adopt rules pursuant to
3407ss. 120.536(1) and 120.54 to implement and enforce the
3408provisions of this chapter.
3409     (g)  The division shall establish procedures for providing
3410notice to an association when the division is considering the
3411issuance of a declaratory statement with respect to the
3412cooperative documents governing such cooperative community.
3413     (h)  The division shall furnish each association which pays
3414the fees required by paragraph (2)(a) a copy of this act,
3415subsequent changes to this act on an annual basis, an amended
3416version of this act as it becomes available from the Secretary
3417of State's office on a biennial basis, and the rules promulgated
3418pursuant thereto on an annual basis.
3419     (i)  The division shall annually provide each association
3420with a summary of declaratory statements and formal legal
3421opinions relating to the operations of cooperatives which were
3422rendered by the division during the previous year.
3423     (j)  The division shall adopt uniform accounting
3424principles, policies, and standards to be used by all
3425associations in the preparation and presentation of all
3426financial statements required by this chapter. The principles,
3427policies, and standards shall take into consideration the size
3428of the association and the total revenue collected by the
3429association.
3430     (k)  The division shall provide training programs for
3431cooperative association board members and unit owners.
3432     (l)  The division shall maintain a toll-free telephone
3433number accessible to cooperative unit owners.
3434     (m)  When a complaint is made to the division, the division
3435shall conduct its inquiry with reasonable dispatch and with due
3436regard to the interests of the affected parties. Within 30 days
3437after receipt of a complaint, the division shall acknowledge the
3438complaint in writing and notify the complainant whether the
3439complaint is within the jurisdiction of the division and whether
3440additional information is needed by the division from the
3441complainant. The division shall conduct its investigation and
3442shall, within 90 days after receipt of the original complaint or
3443timely requested additional information, take action upon the
3444complaint. However, the failure to complete the investigation
3445within 90 days does not prevent the division from continuing the
3446investigation, accepting or considering evidence obtained or
3447received after 90 days, or taking administrative action if
3448reasonable cause exists to believe that a violation of this
3449chapter or a rule of the division has occurred. If an
3450investigation is not completed within the time limits
3451established in this paragraph, the division shall, on a monthly
3452basis, notify the complainant in writing of the status of the
3453investigation. When reporting its action to the complainant, the
3454division shall inform the complainant of any right to a hearing
3455pursuant to ss. 120.569 and 120.57.
3456     (n)  The division shall develop a program to certify both
3457volunteer and paid mediators to provide mediation of cooperative
3458disputes. The division shall provide, upon request, a list of
3459such mediators to any association, unit owner, or other
3460participant in arbitration proceedings under s. 718.1255
3461requesting a copy of the list. The division shall include on the
3462list of voluntary mediators only persons who have received at
3463least 20 hours of training in mediation techniques or have
3464mediated at least 20 disputes. In order to become initially
3465certified by the division, paid mediators must be certified by
3466the Supreme Court to mediate court cases in either county or
3467circuit courts. However, the division may adopt, by rule,
3468additional factors for the certification of paid mediators,
3469which factors must be related to experience, education, or
3470background. Any person initially certified as a paid mediator by
3471the division must, in order to continue to be certified, comply
3472with the factors or requirements imposed by rules adopted by the
3473division.
3474     (2)(a)  Each cooperative association shall pay to the
3475division, on or before January 1 of each year, an annual fee in
3476the amount of $4 for each residential unit in cooperatives
3477operated by the association. If the fee is not paid by March 1,
3478then the association shall be assessed a penalty of 10 percent
3479of the amount due, and the association shall not have the
3480standing to maintain or defend any action in the courts of this
3481state until the amount due is paid.
3482     (b)  All fees shall be deposited in the Division of Florida
3483Land Sales, Condominiums, Homeowners' Associations, and Mobile
3484Homes Trust Fund as provided by law.
3485     Section 47.  Paragraph (a) of subsection (2) of section
3486719.502, Florida Statutes, is amended to read:
3487     719.502  Filing prior to sale or lease.--
3488     (2)(a)  Prior to filing as required by subsection (1), and
3489prior to acquiring an ownership, leasehold, or contractual
3490interest in the land upon which the cooperative is to be
3491developed, a developer shall not offer a contract for purchase
3492or lease of a unit for more than 5 years. However, the developer
3493may accept deposits for reservations upon the approval of a
3494fully executed escrow agreement and reservation agreement form
3495properly filed with the Division of Florida Land Sales,
3496Condominiums, Homeowners' Associations, and Mobile Homes. Each
3497filing of a proposed reservation program shall be accompanied by
3498a filing fee of $250. Reservations shall not be taken on a
3499proposed cooperative unless the developer has an ownership,
3500leasehold, or contractual interest in the land upon which the
3501cooperative is to be developed. The division shall notify the
3502developer within 20 days of receipt of the reservation filing of
3503any deficiencies contained therein. Such notification shall not
3504preclude the determination of reservation filing deficiencies at
3505a later date, nor shall it relieve the developer of any
3506responsibility under the law. The escrow agreement and the
3507reservation agreement form shall include a statement of the
3508right of the prospective purchaser to an immediate unqualified
3509refund of the reservation deposit moneys upon written request to
3510the escrow agent by the prospective purchaser or the developer.
3511     Section 48.  Section 719.504, Florida Statutes, is amended
3512to read:
3513     719.504  Prospectus or offering circular.--Every developer
3514of a residential cooperative which contains more than 20
3515residential units, or which is part of a group of residential
3516cooperatives which will be served by property to be used in
3517common by unit owners of more than 20 residential units, shall
3518prepare a prospectus or offering circular and file it with the
3519Division of Florida Land Sales, Condominiums, Homeowners'
3520Associations, and Mobile Homes prior to entering into an
3521enforceable contract of purchase and sale of any unit or lease
3522of a unit for more than 5 years and shall furnish a copy of the
3523prospectus or offering circular to each buyer. In addition to
3524the prospectus or offering circular, each buyer shall be
3525furnished a separate page entitled "Frequently Asked Questions
3526and Answers," which must be in accordance with a format approved
3527by the division. This page must, in readable language: inform
3528prospective purchasers regarding their voting rights and unit
3529use restrictions, including restrictions on the leasing of a
3530unit; indicate whether and in what amount the unit owners or the
3531association is obligated to pay rent or land use fees for
3532recreational or other commonly used facilities; contain a
3533statement identifying that amount of assessment which, pursuant
3534to the budget, would be levied upon each unit type, exclusive of
3535any special assessments, and which identifies the basis upon
3536which assessments are levied, whether monthly, quarterly, or
3537otherwise; state and identify any court cases in which the
3538association is currently a party of record in which the
3539association may face liability in excess of $100,000; and state
3540whether membership in a recreational facilities association is
3541mandatory and, if so, identify the fees currently charged per
3542unit type. The division shall by rule require such other
3543disclosure as in its judgment will assist prospective
3544purchasers. The prospectus or offering circular may include more
3545than one cooperative, although not all such units are being
3546offered for sale as of the date of the prospectus or offering
3547circular. The prospectus or offering circular must contain the
3548following information:
3549     (1)  The front cover or the first page must contain only:
3550     (a)  The name of the cooperative.
3551     (b)  The following statements in conspicuous type:
3552     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
3553MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT.
3554     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
3555NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
3556ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
3557MATERIALS.
3558     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
3559STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
3560PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
3561REPRESENTATIONS.
3562     (2)  Summary: The next page must contain all statements
3563required to be in conspicuous type in the prospectus or offering
3564circular.
3565     (3)  A separate index of the contents and exhibits of the
3566prospectus.
3567     (4)  Beginning on the first page of the text (not including
3568the summary and index), a description of the cooperative,
3569including, but not limited to, the following information:
3570     (a)  Its name and location.
3571     (b)  A description of the cooperative property, including,
3572without limitation:
3573     1.  The number of buildings, the number of units in each
3574building, the number of bathrooms and bedrooms in each unit, and
3575the total number of units, if the cooperative is not a phase
3576cooperative; or, if the cooperative is a phase cooperative, the
3577maximum number of buildings that may be contained within the
3578cooperative, the minimum and maximum number of units in each
3579building, the minimum and maximum number of bathrooms and
3580bedrooms that may be contained in each unit, and the maximum
3581number of units that may be contained within the cooperative.
3582     2.  The page in the cooperative documents where a copy of
3583the survey and plot plan of the cooperative is located.
3584     3.  The estimated latest date of completion of
3585constructing, finishing, and equipping. In lieu of a date, a
3586statement that the estimated date of completion of the
3587cooperative is in the purchase agreement and a reference to the
3588article or paragraph containing that information.
3589     (c)  The maximum number of units that will use facilities
3590in common with the cooperative. If the maximum number of units
3591will vary, a description of the basis for variation and the
3592minimum amount of dollars per unit to be spent for additional
3593recreational facilities or enlargement of such facilities. If
3594the addition or enlargement of facilities will result in a
3595material increase of a unit owner's maintenance expense or
3596rental expense, if any, the maximum increase and limitations
3597thereon shall be stated.
3598     (5)(a)  A statement in conspicuous type describing whether
3599the cooperative is created and being sold as fee simple
3600interests or as leasehold interests. If the cooperative is
3601created or being sold on a leasehold, the location of the lease
3602in the disclosure materials shall be stated.
3603     (b)  If timeshare estates are or may be created with
3604respect to any unit in the cooperative, a statement in
3605conspicuous type stating that timeshare estates are created and
3606being sold in such specified units in the cooperative.
3607     (6)  A description of the recreational and other common
3608areas that will be used only by unit owners of the cooperative,
3609including, but not limited to, the following:
3610     (a)  Each room and its intended purposes, location,
3611approximate floor area, and capacity in numbers of people.
3612     (b)  Each swimming pool, as to its general location,
3613approximate size and depths, approximate deck size and capacity,
3614and whether heated.
3615     (c)  Additional facilities, as to the number of each
3616facility, its approximate location, approximate size, and
3617approximate capacity.
3618     (d)  A general description of the items of personal
3619property and the approximate number of each item of personal
3620property that the developer is committing to furnish for each
3621room or other facility or, in the alternative, a representation
3622as to the minimum amount of expenditure that will be made to
3623purchase the personal property for the facility.
3624     (e)  The estimated date when each room or other facility
3625will be available for use by the unit owners.
3626     (f)1.  An identification of each room or other facility to
3627be used by unit owners that will not be owned by the unit owners
3628or the association;
3629     2.  A reference to the location in the disclosure materials
3630of the lease or other agreements providing for the use of those
3631facilities; and
3632     3.  A description of the terms of the lease or other
3633agreements, including the length of the term; the rent payable,
3634directly or indirectly, by each unit owner, and the total rent
3635payable to the lessor, stated in monthly and annual amounts for
3636the entire term of the lease; and a description of any option to
3637purchase the property leased under any such lease, including the
3638time the option may be exercised, the purchase price or how it
3639is to be determined, the manner of payment, and whether the
3640option may be exercised for a unit owner's share or only as to
3641the entire leased property.
3642     (g)  A statement as to whether the developer may provide
3643additional facilities not described above, their general
3644locations and types, improvements or changes that may be made,
3645the approximate dollar amount to be expended, and the maximum
3646additional common expense or cost to the individual unit owners
3647that may be charged during the first annual period of operation
3648of the modified or added facilities.
3649
3650Descriptions as to locations, areas, capacities, numbers,
3651volumes, or sizes may be stated as approximations or minimums.
3652     (7)  A description of the recreational and other facilities
3653that will be used in common with other cooperatives, community
3654associations, or planned developments which require the payment
3655of the maintenance and expenses of such facilities, either
3656directly or indirectly, by the unit owners. The description
3657shall include, but not be limited to, the following:
3658     (a)  Each building and facility committed to be built.
3659     (b)  Facilities not committed to be built except under
3660certain conditions, and a statement of those conditions or
3661contingencies.
3662     (c)  As to each facility committed to be built, or which
3663will be committed to be built upon the happening of one of the
3664conditions in paragraph (b), a statement of whether it will be
3665owned by the unit owners having the use thereof or by an
3666association or other entity which will be controlled by them, or
3667others, and the location in the exhibits of the lease or other
3668document providing for use of those facilities.
3669     (d)  The year in which each facility will be available for
3670use by the unit owners or, in the alternative, the maximum
3671number of unit owners in the project at the time each of all of
3672the facilities is committed to be completed.
3673     (e)  A general description of the items of personal
3674property, and the approximate number of each item of personal
3675property, that the developer is committing to furnish for each
3676room or other facility or, in the alternative, a representation
3677as to the minimum amount of expenditure that will be made to
3678purchase the personal property for the facility.
3679     (f)  If there are leases, a description thereof, including
3680the length of the term, the rent payable, and a description of
3681any option to purchase.
3682
3683Descriptions shall include location, areas, capacities, numbers,
3684volumes, or sizes and may be stated as approximations or
3685minimums.
3686     (8)  Recreation lease or associated club membership:
3687     (a)  If any recreational facilities or other common areas
3688offered by the developer and available to, or to be used by,
3689unit owners are to be leased or have club membership associated,
3690the following statement in conspicuous type shall be included:
3691THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
3692COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
3693COOPERATIVE. There shall be a reference to the location in the
3694disclosure materials where the recreation lease or club
3695membership is described in detail.
3696     (b)  If it is mandatory that unit owners pay a fee, rent,
3697dues, or other charges under a recreational facilities lease or
3698club membership for the use of facilities, there shall be in
3699conspicuous type the applicable statement:
3700     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
3701MANDATORY FOR UNIT OWNERS; or
3702     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
3703TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
3704     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
3705COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
3706REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
3707LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
3708     4.  A similar statement of the nature of the organization
3709or manner in which the use rights are created, and that unit
3710owners are required to pay.
3711
3712Immediately following the applicable statement, the location in
3713the disclosure materials where the development is described in
3714detail shall be stated.
3715     (c)  If the developer, or any other person other than the
3716unit owners and other persons having use rights in the
3717facilities, reserves, or is entitled to receive, any rent, fee,
3718or other payment for the use of the facilities, then there shall
3719be the following statement in conspicuous type: THE UNIT OWNERS
3720OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
3721RECREATIONAL OR OTHER COMMON AREAS. Immediately following this
3722statement, the location in the disclosure materials where the
3723rent or land use fees are described in detail shall be stated.
3724     (d)  If, in any recreation format, whether leasehold, club,
3725or other, any person other than the association has the right to
3726a lien on the units to secure the payment of assessments, rent,
3727or other exactions, there shall appear a statement in
3728conspicuous type in substantially the following form:
3729     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
3730SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
3731RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
3732PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
3733     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
3734SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
3735FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
3736OR COMMONLY USED AREAS. THE UNIT OWNER'S FAILURE TO MAKE THESE
3737PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
3738
3739Immediately following the applicable statement, the location in
3740the disclosure materials where the lien or lien right is
3741described in detail shall be stated.
3742     (9)  If the developer or any other person has the right to
3743increase or add to the recreational facilities at any time after
3744the establishment of the cooperative whose unit owners have use
3745rights therein, without the consent of the unit owners or
3746associations being required, there shall appear a statement in
3747conspicuous type in substantially the following form:
3748RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
3749OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
3750statement, the location in the disclosure materials where such
3751reserved rights are described shall be stated.
3752     (10)  A statement of whether the developer's plan includes
3753a program of leasing units rather than selling them, or leasing
3754units and selling them subject to such leases. If so, there
3755shall be a description of the plan, including the number and
3756identification of the units and the provisions and term of the
3757proposed leases, and a statement in boldfaced type that: THE
3758UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
3759     (11)  The arrangements for management of the association
3760and maintenance and operation of the cooperative property and of
3761other property that will serve the unit owners of the
3762cooperative property, and a description of the management
3763contract and all other contracts for these purposes having a
3764term in excess of 1 year, including the following:
3765     (a)  The names of contracting parties.
3766     (b)  The term of the contract.
3767     (c)  The nature of the services included.
3768     (d)  The compensation, stated on a monthly and annual
3769basis, and provisions for increases in the compensation.
3770     (e)  A reference to the volumes and pages of the
3771cooperative documents and of the exhibits containing copies of
3772such contracts.
3773
3774Copies of all described contracts shall be attached as exhibits.
3775If there is a contract for the management of the cooperative
3776property, then a statement in conspicuous type in substantially
3777the following form shall appear, identifying the proposed or
3778existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
3779THE MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF THE
3780CONTRACT MANAGER). Immediately following this statement, the
3781location in the disclosure materials of the contract for
3782management of the cooperative property shall be stated.
3783     (12)  If the developer or any other person or persons other
3784than the unit owners has the right to retain control of the
3785board of administration of the association for a period of time
3786which can exceed 1 year after the closing of the sale of a
3787majority of the units in that cooperative to persons other than
3788successors or alternate developers, then a statement in
3789conspicuous type in substantially the following form shall be
3790included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
3791RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
3792HAVE BEEN SOLD. Immediately following this statement, the
3793location in the disclosure materials where this right to control
3794is described in detail shall be stated.
3795     (13)  If there are any restrictions upon the sale,
3796transfer, conveyance, or leasing of a unit, then a statement in
3797conspicuous type in substantially the following form shall be
3798included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
3799CONTROLLED. Immediately following this statement, the location
3800in the disclosure materials where the restriction, limitation,
3801or control on the sale, lease, or transfer of units is described
3802in detail shall be stated.
3803     (14)  If the cooperative is part of a phase project, the
3804following shall be stated:
3805     (a)  A statement in conspicuous type in substantially the
3806following form shall be included: THIS IS A PHASE COOPERATIVE.
3807ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE.
3808Immediately following this statement, the location in the
3809disclosure materials where the phasing is described shall be
3810stated.
3811     (b)  A summary of the provisions of the declaration
3812providing for the phasing.
3813     (c)  A statement as to whether or not residential buildings
3814and units which are added to the cooperative may be
3815substantially different from the residential buildings and units
3816originally in the cooperative, and, if the added residential
3817buildings and units may be substantially different, there shall
3818be a general description of the extent to which such added
3819residential buildings and units may differ, and a statement in
3820conspicuous type in substantially the following form shall be
3821included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE
3822MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
3823UNITS IN THE COOPERATIVE. Immediately following this statement,
3824the location in the disclosure materials where the extent to
3825which added residential buildings and units may substantially
3826differ is described shall be stated.
3827     (d)  A statement of the maximum number of buildings
3828containing units, the maximum and minimum number of units in
3829each building, the maximum number of units, and the minimum and
3830maximum square footage of the units that may be contained within
3831each parcel of land which may be added to the cooperative.
3832     (15)  If the cooperative is created by conversion of
3833existing improvements, the following information shall be
3834stated:
3835     (a)  The information required by s. 719.616.
3836     (b)  A caveat that there are no express warranties unless
3837they are stated in writing by the developer.
3838     (16)  A summary of the restrictions, if any, to be imposed
3839on units concerning the use of any of the cooperative property,
3840including statements as to whether there are restrictions upon
3841children and pets, and reference to the volumes and pages of the
3842cooperative documents where such restrictions are found, or if
3843such restrictions are contained elsewhere, then a copy of the
3844documents containing the restrictions shall be attached as an
3845exhibit.
3846     (17)  If there is any land that is offered by the developer
3847for use by the unit owners and that is neither owned by them nor
3848leased to them, the association, or any entity controlled by
3849unit owners and other persons having the use rights to such
3850land, a statement shall be made as to how such land will serve
3851the cooperative. If any part of such land will serve the
3852cooperative, the statement shall describe the land and the
3853nature and term of service, and the cooperative documents or
3854other instrument creating such servitude shall be included as an
3855exhibit.
3856     (18)  The manner in which utility and other services,
3857including, but not limited to, sewage and waste disposal, water
3858supply, and storm drainage, will be provided and the person or
3859entity furnishing them.
3860     (19)  An explanation of the manner in which the
3861apportionment of common expenses and ownership of the common
3862areas have been determined.
3863     (20)  An estimated operating budget for the cooperative and
3864the association, and a schedule of the unit owner's expenses
3865shall be attached as an exhibit and shall contain the following
3866information:
3867     (a)  The estimated monthly and annual expenses of the
3868cooperative and the association that are collected from unit
3869owners by assessments.
3870     (b)  The estimated monthly and annual expenses of each unit
3871owner for a unit, other than assessments payable to the
3872association, payable by the unit owner to persons or entities
3873other than the association, and the total estimated monthly and
3874annual expense. There may be excluded from this estimate
3875expenses that are personal to unit owners, which are not
3876uniformly incurred by all unit owners, or which are not provided
3877for or contemplated by the cooperative documents, including, but
3878not limited to, the costs of private telephone; maintenance of
3879the interior of cooperative units, which is not the obligation
3880of the association; maid or janitorial services privately
3881contracted for by the unit owners; utility bills billed directly
3882to each unit owner for utility services to his or her unit;
3883insurance premiums other than those incurred for policies
3884obtained by the cooperative; and similar personal expenses of
3885the unit owner. A unit owner's estimated payments for
3886assessments shall also be stated in the estimated amounts for
3887the times when they will be due.
3888     (c)  The estimated items of expenses of the cooperative and
3889the association, except as excluded under paragraph (b),
3890including, but not limited to, the following items, which shall
3891be stated either as an association expense collectible by
3892assessments or as unit owners' expenses payable to persons other
3893than the association:
3894     1.  Expenses for the association and cooperative:
3895     a.  Administration of the association.
3896     b.  Management fees.
3897     c.  Maintenance.
3898     d.  Rent for recreational and other commonly used areas.
3899     e.  Taxes upon association property.
3900     f.  Taxes upon leased areas.
3901     g.  Insurance.
3902     h.  Security provisions.
3903     i.  Other expenses.
3904     j.  Operating capital.
3905     k.  Reserves.
3906     l.  Fee payable to the division.
3907     2.  Expenses for a unit owner:
3908     a.  Rent for the unit, if subject to a lease.
3909     b.  Rent payable by the unit owner directly to the lessor
3910or agent under any recreational lease or lease for the use of
3911commonly used areas, which use and payment are a mandatory
3912condition of ownership and are not included in the common
3913expense or assessments for common maintenance paid by the unit
3914owners to the association.
3915     (d)  The estimated amounts shall be stated for a period of
3916at least 12 months and may distinguish between the period prior
3917to the time unit owners other than the developer elect a
3918majority of the board of administration and the period after
3919that date.
3920     (21)  A schedule of estimated closing expenses to be paid
3921by a buyer or lessee of a unit and a statement of whether title
3922opinion or title insurance policy is available to the buyer and,
3923if so, at whose expense.
3924     (22)  The identity of the developer and the chief operating
3925officer or principal directing the creation and sale of the
3926cooperative and a statement of its and his or her experience in
3927this field.
3928     (23)  Copies of the following, to the extent they are
3929applicable, shall be included as exhibits:
3930     (a)  The cooperative documents, or the proposed cooperative
3931documents if the documents have not been recorded.
3932     (b)  The articles of incorporation creating the
3933association.
3934     (c)  The bylaws of the association.
3935     (d)  The ground lease or other underlying lease of the
3936cooperative.
3937     (e)  The management agreement and all maintenance and other
3938contracts for management of the association and operation of the
3939cooperative and facilities used by the unit owners having a
3940service term in excess of 1 year.
3941     (f)  The estimated operating budget for the cooperative and
3942the required schedule of unit owners' expenses.
3943     (g)  A copy of the floor plan of the unit and the plot plan
3944showing the location of the residential buildings and the
3945recreation and other common areas.
3946     (h)  The lease of recreational and other facilities that
3947will be used only by unit owners of the subject cooperative.
3948     (i)  The lease of facilities used by owners and others.
3949     (j)  The form of unit lease, if the offer is of a
3950leasehold.
3951     (k)  A declaration of servitude of properties serving the
3952cooperative but not owned by unit owners or leased to them or
3953the association.
3954     (l)  The statement of condition of the existing building or
3955buildings, if the offering is of units in an operation being
3956converted to cooperative ownership.
3957     (m)  The statement of inspection for termite damage and
3958treatment of the existing improvements, if the cooperative is a
3959conversion.
3960     (n)  The form of agreement for sale or lease of units.
3961     (o)  A copy of the agreement for escrow of payments made to
3962the developer prior to closing.
3963     (p)  A copy of the documents containing any restrictions on
3964use of the property required by subsection (16).
3965     (24)  Any prospectus or offering circular complying with
3966the provisions of former ss. 711.69 and 711.802 may continue to
3967be used without amendment, or may be amended to comply with the
3968provisions of this chapter.
3969     (25)  A brief narrative description of the location and
3970effect of all existing and intended easements located or to be
3971located on the cooperative property other than those in the
3972declaration.
3973     (26)  If the developer is required by state or local
3974authorities to obtain acceptance or approval of any dock or
3975marina facility intended to serve the cooperative, a copy of
3976such acceptance or approval acquired by the time of filing with
3977the division pursuant to s. 719.502 or a statement that such
3978acceptance has not been acquired or received.
3979     (27)  Evidence demonstrating that the developer has an
3980ownership, leasehold, or contractual interest in the land upon
3981which the cooperative is to be developed.
3982     Section 49.  Section 719.508, Florida Statutes, is amended
3983to read:
3984     719.508  Regulation by Division of Hotels and
3985Restaurants.--In addition to the authority, regulation, or
3986control exercised by the Division of Florida Land Sales,
3987Condominiums, Homeowners' Associations, and Mobile Homes
3988pursuant to this act with respect to cooperatives, buildings
3989included in a cooperative property shall be subject to the
3990authority, regulation, or control of the Division of Hotels and
3991Restaurants of the Department of Business and Professional
3992Regulation, to the extent provided for in chapters 399 and 509.
3993     Section 50.  Paragraph (a) of subsection (2) of section
3994719.608, Florida Statutes, is amended to read:
3995     719.608  Notice of intended conversion; time of delivery;
3996content.--
3997     (2)(a)  Each notice of intended conversion shall be dated
3998and in writing. The notice shall contain the following
3999statement, with the phrases of the following statement which
4000appear in upper case printed in conspicuous type:
4001
4002     These apartments are being converted to cooperative by  
4003(name of developer)  , the developer.
4004     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
4005YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
4006AGREEMENT AS FOLLOWS:
4007     a.  If you have continuously been a resident of these
4008apartments during the last 180 days and your rental agreement
4009expires during the next 270 days, you may extend your rental
4010agreement for up to 270 days after the date of this notice.
4011     b.  If you have not been a continuous resident of these
4012apartments for the last 180 days and your rental agreement
4013expires during the next 180 days, you may extend your rental
4014agreement for up to 180 days after the date of this notice.
4015     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
4016MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
4017DATE OF THIS NOTICE.
4018     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
4019you may extend your rental agreement for up to 45 days after the
4020date of this notice while you decide whether to extend your
4021rental agreement as explained above. To do so, you must notify
4022the developer in writing. You will then have the full 45 days to
4023decide whether to extend your rental agreement as explained
4024above.
4025     3.  During the extension of your rental agreement you will
4026be charged the same rent that you are now paying.
4027     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
4028OF THE RENTAL AGREEMENT AS FOLLOWS:
4029     a.  If your rental agreement began or was extended or
4030renewed after May 1, 1980, and your rental agreement, including
4031extensions and renewals, has an unexpired term of 180 days or
4032less, you may cancel your rental agreement upon 30 days' written
4033notice and move. Also, upon 30 days' written notice, you may
4034cancel any extension of the rental agreement.
4035     b.  If your rental agreement was not begun or was not
4036extended or renewed after May 1, 1980, you may not cancel the
4037rental agreement without the consent of the developer. If your
4038rental agreement, including extensions and renewals, has an
4039unexpired term of 180 days or less, you may, however, upon 30
4040days' written notice cancel any extension of the rental
4041agreement.
4042     5.  All notices must be given in writing and sent by mail,
4043return receipt requested, or delivered in person to the
4044developer at this address:   (name and address of developer)  .
4045     6.  If you have continuously been a resident of these
4046apartments during the last 180 days:
4047     a.  You have the right to purchase your apartment and will
4048have 45 days to decide whether to purchase. If you do not buy
4049the unit at that price and the unit is later offered at a lower
4050price, you will have the opportunity to buy the unit at the
4051lower price. However, in all events your right to purchase the
4052unit ends when the rental agreement or any extension of the
4053rental agreement ends or when you waive this right in writing.
4054     b.  Within 90 days you will be provided purchase
4055information relating to your apartment, including the price of
4056your unit and the condition of the building. If you do not
4057receive this information within 90 days, your rental agreement
4058and any extension will be extended 1 day for each day over 90
4059days until you are given the purchase information. If you do not
4060want this rental agreement extension, you must notify the
4061developer in writing.
4062     7.  If you have any questions regarding this conversion or
4063the Cooperative Act, you may contact the developer or the state
4064agency which regulates cooperatives: The Division of Florida
4065Land Sales, Condominiums, Homeowners' Associations, and Mobile
4066Homes,   (Tallahassee address and telephone number of division)
4067 .
4068     Section 51.  Subsections (2), (4), (7), (8), (9), and (10)
4069of section 720.301, Florida Statutes, are amended, and
4070subsection (14) is added to that section, to read:
4071     720.301  Definitions.--As used in this chapter, the term:
4072     (2)  "Common area" means all real property within a
4073community which is owned or leased by an association or
4074dedicated for use or maintenance by the association or its
4075members, including, regardless of whether title has been
4076conveyed to the association:
4077     (a)  Real property the use of which is dedicated to the
4078association or its members by a recorded plat; or
4079     (b)  Real property committed by a declaration of covenants
4080to be leased or conveyed to the association.
4081     (4)  "Declaration of covenants," or "declaration," means a
4082recorded written instrument in the nature of covenants running
4083with the land, according to the recorded plat, which subjects
4084the land comprising the community to the jurisdiction and
4085control of an association or associations in which the owners of
4086the parcels, or their association representatives, must be
4087members. Upon the execution of the sale of the first lot, a
4088declaration may not be amended without the vote of approval of
4089two-thirds majority of the owners of residential parcels that
4090have been purchased, with a tie vote resulting in a negative
4091vote. Exceptions shall be amendments identifying additional
4092phases of the community as they are constructed. These
4093amendments may not contain any other changes to the existing
4094declaration.
4095     (7)  "Division" means the Division of Florida Land Sales,
4096Condominiums, Homeowners' Associations, and Mobile Homes in the
4097Department of Business and Professional Regulation.
4098     (8)  "Governing documents" means:
4099     (a)  Each set of The recorded declaration of covenants for
4100a community, and all duly adopted and recorded amendments,
4101supplements, and recorded exhibits thereto; and
4102     (b)  The articles of incorporation and bylaws of the
4103homeowners' association, and any duly adopted amendments
4104thereto.
4105
4106When different sets of covenants exist for each recorded plat,
4107those covenants shall only apply to the plat for which they are
4108recorded and specified. The different sets of covenants may not
4109be commingled.
4110     (9)  "Homeowners' association" or "association" means a
4111Florida corporation, as authorized by chapter 720 or an
4112authorized not-for-profit corporation pursuant to chapter 617,
4113responsible for the administration operation of a community or a
4114mobile home subdivision in compliance with applicable federal,
4115state, and local laws and the governing documents of the
4116association. In addition, a homeowners' association means a
4117Florida corporation in which the voting membership is made up of
4118parcel owners or their agents, or a combination thereof, and in
4119which membership is a mandatory condition of parcel ownership,
4120and which is authorized to impose assessments that, if unpaid,
4121may become a lien on the parcel. Any homeowners' association or
4122other named association that administers a residential community
4123where membership is mandatory shall be required to comply with
4124this chapter, except if exempted. The term "homeowners'
4125association" does not include a community development district
4126or other similar special taxing district created pursuant to
4127statute.
4128     (10)  "Member" means a member of an association, and may
4129include, but is not limited to, a parcel owner or an association
4130representing parcel owners or a combination thereof, and
4131includes any person or entity obligated by the governing
4132documents to pay an assessment or amenity fee.
4133     (14)  "Homeowners' Association Advisory Council" means a
4134group of persons appointed to recommend changes in laws that
4135affect the administration of mandatory homeowners' associations.
4136     Section 52.  Subsections (1) and (2) of section 720.302,
4137Florida Statutes, are amended to read:
4138     720.302  Purposes, scope, and application.--
4139     (1)  The purposes of this chapter are to give statutory
4140recognition to corporations not for profit that administer or
4141operate residential communities in this state, to provide
4142regulations procedures for operating homeowners' associations,
4143and to protect the rights of association members without unduly
4144impairing the ability of such associations to perform their
4145functions as authorized by federal, state, and local laws and
4146the governing documents of the association.
4147     (2)  Having provided certain powers and authority to
4148homeowners' associations and deed restrictions created by
4149developers of mandated properties in residential communities,
4150the Legislature recognizes that it is necessary to provide
4151regulatory oversight to ensure compliance with federal, state,
4152and local laws. It is the intent of the Legislature to protect
4153the rights of parcel owners by ensuring that the powers and
4154authority granted to homeowners' associations and deed
4155restrictions created by developers of mandated properties in
4156residential communities conform to a system of checks and
4157balances to prevent abuses of governmental authority. The
4158Department of Business and Professional Regulation shall create
4159a Division of Mandated Properties. No later than July 1, 2008,
4160the division shall establish a process for collecting an annual
4161fee which shall not exceed $4 for each association member in
4162communities administered by the association during each of the
4163following 2 years and, thereafter, shall not exceed the Cost of
4164Living Index. Funds collected shall be deposited in the Division
4165of Florida Land Sales, Condominiums, Homeowners' Associations,
4166and Mobile Homes Trust Fund Trust Fund. Funds shall be utilized
4167by the division for, but not limited to, the review and approval
4168of deed restrictions before releasing for recording at the
4169county level by the developer or owner of the initial lots to be
4170developed; education; enforcement; investigation; and
4171prosecution of policies and procedures related to mandated
4172properties. Upon transition of authorities, duties,
4173responsibilities, and rights from the developer to the parcel
4174owners, all amendments, alterations, or modifications to the
4175governing documents must be approved by at least two-thirds of
4176the parcel owners or homeowners' association members. The
4177governing documents may not contain provisions that reduce this
4178percentage of majority approval for changes to the governing
4179documents. The ombudsman may not engage the services of industry
4180partisans with a vested interest in the administration of deed-
4181restricted communities or in the mandatory homeowners'
4182association to implement its powers, who have practiced in this
4183field within the last 3 years. Furthermore not in the best
4184interest of homeowners' associations or the individual
4185association members thereof to create or impose a bureau or
4186other agency of state government to regulate the affairs of
4187homeowners' associations. However, in accordance with s.
4188720.311, the Legislature finds that homeowners' associations and
4189their individual members will benefit from an expedited
4190alternative process for resolution of election and recall
4191disputes and presuit mediation of other disputes involving
4192covenant enforcement, disputes relating to the transition of
4193control of the association from the developer or owner to
4194members of the association, and authorizes the department to
4195hear, administer, and determine these disputes as more fully set
4196forth in this chapter. Further, the Legislature recognizes that
4197certain contract rights have been created for the benefit of
4198homeowners' associations and members thereof before the
4199effective date of this act and that ss. 720.301-720.407 are not
4200intended to impair such contract rights, as long as they are
4201accepted by a two-thirds majority of the homeowners' association
4202members, including, but not limited to, the rights of the
4203developer to complete the community as initially contemplated.
4204     Section 53.  Section 720.303, Florida Statutes, is amended
4205to read:
4206     720.303  Association powers and duties; meetings of board;
4207official records; budgets; financial reporting; association
4208funds; recalls.--
4209     (1)  POWERS AND DUTIES.--
4210     (a)  An association which operates a community as defined
4211in s. 720.301, must be incorporated in this state, operated by
4212an association that is a Florida corporation. After October 1,
42131995, the association must be incorporated and the initial
4214governing documents must be recorded in the official records of
4215the county in which the community is located. An association may
4216operate more than one community.
4217     (b)  The officers and directors of an association have a
4218fiduciary relationship of to the members who are served by the
4219association.
4220     (c)  The powers and duties of an association include those
4221set forth in this chapter and, except as expressly limited or
4222restricted in this chapter, those specifically set forth in the
4223governing documents. The officers and directors of the
4224association may not take any action that is inconsistent with
4225the declaration of covenants.
4226     (d)  After control of the association is obtained by
4227members from other than the developer, the association may
4228institute, maintain, or settle on , or appeal actions or
4229hearings in its name on behalf of the all members concerning
4230matters of common interest to the members, including, but not
4231limited to, the common areas; roof or structural components of a
4232building, or other improvements for which the association is
4233responsible; mechanical, electrical, or plumbing elements
4234serving an improvement or building for which the association is
4235responsible; representations of the developer pertaining to any
4236existing or proposed commonly used facility; and protesting ad
4237valorem taxes on commonly used facilities. The association may
4238defend actions in eminent domain or bring inverse condemnation
4239actions. Before commencing any legal action litigation against
4240any party in the name of the association involving amounts in
4241controversy in excess of $50,000 $100,000, the association must
4242obtain the affirmative approval of a majority of the members of
4243the association voting interests at a meeting of the association
4244membership at which a quorum is present has been attained.
4245     (e)  The association may enter into contracts for the
4246benefit of the members of the association, including, but not
4247limited to, contracts for maintaining, repairing, or improving
4248the common areas of the association. This subsection does not
4249limit any statutory or common-law right of any individual member
4250or class of members to bring any action without participation by
4251the association.
4252     (f)  A member does not have the authority to act for the
4253association by virtue of being a member of the association. An
4254association may have more than one class of members and may
4255issue membership certificates.
4256     (g)  In any civil or criminal action between a member and
4257the association, it shall not be a defense by the association
4258that the association's actions, although incompatible with the
4259declaration of covenants, have been uniformly applied.
4260     (h)  An association may not restrict a member's freedom of
4261association and may not limit the number of guests a member may
4262have within a 24-hour period.
4263     (i)  An association of 15 or fewer parcels parcel owners
4264may enforce only the requirements of those deed restrictions
4265established prior to the purchase of each parcel upon an
4266affected parcel owner or owners.
4267     (j)  The officers and directors of an association may be
4268personally liable for damages to a member if the actions of the
4269officers and directors demonstrate a pattern of behavior
4270intended to harass a member of the association.
4271     (k)  Any action of the association by and through the
4272officers and directors that limits the legal use of any portion
4273of a member's property that is incompatible with the declaration
4274of covenants shall entitle the member to compensation for the
4275fair market value of that portion of the member's property, the
4276use of which is being restricted.
4277     (l)  In any association with more than 50 but fewer than 75
4278parcels, for purposes of establishing setback limits, any parcel
4279of 1 acre or less shall be deemed to have one front for purposes
4280of determining the required front setback, if any. Only those
4281setbacks specifically set forth in the declaration of covenants
4282may be enforced by the association. Where the covenants are
4283silent, the applicable county or municipal setbacks shall apply.
4284     (2)  BOARD MEETINGS.--
4285     (a)  A meeting of the board of directors of an association
4286occurs whenever a quorum of the board gathers to conduct
4287association business. All meetings of the board must be open to
4288all members except for meetings between the board and its
4289attorney with respect to proposed or pending litigation where
4290the contents of the discussion would otherwise be governed by
4291the attorney-client privilege.
4292     (b)  Members have the right to attend all meetings of the
4293board and to speak on any matter placed on the agenda by
4294petition of the voting interests for at least 3 minutes. The
4295association may adopt written reasonable rules expanding the
4296right of members to speak and governing the frequency, duration,
4297and other manner of member statements, which rules must be
4298consistent with this paragraph and may include a sign-up sheet
4299for members wishing to speak. Notwithstanding any other law, the
4300requirement that board meetings and committee meetings be open
4301to the members is inapplicable to meetings between the board or
4302a committee and the association's attorney, with respect to
4303meetings of the board held for the purpose of discussing
4304personnel matters.
4305     (c)  The bylaws shall provide for giving notice to parcel
4306owners and members of all board meetings and, if they do not do
4307so, shall be deemed to provide the following:
4308     1.  Notices of all board meetings and the agendas must be
4309posted in a conspicuous place in the community at least 48 hours
4310in advance of a meeting, except in an emergency. In the
4311alternative, if notice is not posted in a conspicuous place in
4312the community, notice of each board meeting and agenda must be
4313mailed or delivered to each member at least 7 days before the
4314meeting, except in an emergency. Notwithstanding this general
4315notice requirement, for communities with more than 100 members,
4316the bylaws may provide for a reasonable alternative to posting
4317or mailing of notice for each board meeting, including
4318publication of notice, provision of a schedule of board
4319meetings, or the conspicuous posting and repeated broadcasting
4320of the notice on a closed-circuit cable television system
4321serving the homeowners' association. However, if broadcast
4322notice is used in lieu of a notice posted physically in the
4323community, the notice must be broadcast at least four times
4324every broadcast hour of each day that a posted notice is
4325otherwise required. When broadcast notice is provided, the
4326notice and agenda must be broadcast in a manner and for a
4327sufficient continuous length of time so as to allow an average
4328reader to observe the notice and read and comprehend the entire
4329content of the notice and the agenda. The bylaws or amended
4330bylaws may provide for giving notice by electronic transmission
4331in a manner authorized by law for meetings of the board of
4332directors, committee meetings requiring notice under this
4333section, and annual and special meetings of the members;
4334however, a member must consent in writing to receiving notice by
4335electronic transmission.
4336     2.  An assessment may not be levied at a board meeting
4337unless the notice of the meeting includes a statement that
4338assessments will be considered and the nature of the
4339assessments. Written notice of any meeting at which special
4340assessments will be considered or at which amendments to rules
4341regarding parcel use will be considered must be mailed,
4342delivered, or electronically transmitted to the members and
4343parcel owners and posted conspicuously on the property or
4344broadcast on closed-circuit cable television not less than 14
4345days before the meeting.
4346     3.  Directors may not vote by proxy or by secret ballot at
4347board meetings, except that secret ballots may be used in the
4348election of officers. This subsection also applies to the
4349meetings of any committee or other similar body, when a final
4350decision will be made regarding the expenditure of association
4351funds, and to any body vested with the power to approve or
4352disapprove architectural decisions with respect to a specific
4353parcel of residential property owned by a member of the
4354community.
4355     (d)  If 10 20 percent of the total voting interests
4356petition the board to address an item of business, the board
4357shall at its next regular board meeting or at a special meeting
4358of the board, but not later than 60 days after the receipt of
4359the petition, take the petitioned item up on an agenda. The
4360board shall give all members notice of the meeting at which the
4361petitioned item shall be addressed in accordance with the 14-day
4362notice requirement pursuant to subparagraph (c)2. Each member
4363shall have the right to speak for at least 3 minutes on each
4364matter placed on the agenda by petition. The board shall address
4365all items on the agenda , provided that the member signs the
4366sign-up sheet, if one is provided, or submits a written request
4367to speak prior to the meeting. Other than addressing the
4368petitioned item at the meeting, the board is not obligated to
4369take any other action requested by the petition.
4370     (e)  Detailed agendas for board meetings with specific
4371items that will be addressed shall be published and made
4372available to all members no less than 7 days prior to the date
4373of the board meeting.
4374     (3)  MINUTES.--Minutes of all meetings of the members of an
4375association and of the board of directors of an association must
4376be maintained in written form or in another form that can be
4377converted into written form within a reasonable time. A vote or
4378abstention from voting on each matter voted upon by for each
4379director present at a board meeting shall must be recorded in
4380the minutes.
4381     (4)  OFFICIAL RECORDS.--The association shall maintain each
4382of the following items, when applicable, which constitute the
4383official records of the association:
4384     (a)  Copies of any plans, specifications, permits, and
4385warranties related to improvements constructed on the common
4386areas or other property as platted and recorded that the
4387association is obligated to maintain, repair, or replace. If
4388such documents do not exist, the association shall obtain the
4389documents or forfeit the right to assess any fees to maintain
4390the common areas of property.
4391     (b)  A copy of the bylaws of the association and of each
4392amendment to the bylaws.
4393     (c)  A copy of the articles of incorporation of the
4394association and of each amendment thereto.
4395     (d)  A copy of each set of the declaration of covenants and
4396a copy of each amendment thereto.
4397     (e)  A copy of the current rules of the homeowners'
4398association.
4399     (f)  The minutes of all meetings of the board of directors
4400and of the members, which minutes must be retained for at least
44017 years.
4402     (g)  A current roster of all members and their mailing
4403addresses and parcel identifications. The association shall also
4404maintain the electronic mailing addresses and the numbers
4405designated by members for receiving notice sent by electronic
4406transmission of those members consenting to receive notice by
4407electronic transmission. The electronic mailing addresses and
4408numbers provided by unit owners to receive notice by electronic
4409transmission shall be removed from association records when
4410consent to receive notice by electronic transmission is revoked.
4411However, the association is not liable for an erroneous
4412disclosure of the electronic mail address or the number for
4413receiving electronic transmission of notices.
4414     (h)  All of the association's insurance policies or a copy
4415thereof, which policies must be retained for at least 7 years.
4416     (i)  A current copy of all contracts to which the
4417association is a party, including, without limitation, any
4418management agreement, lease, or other contract under which the
4419association has any obligation or responsibility. A contract or
4420written agreement may not be allowed to maintain property that
4421is not owned by and deeded to the association. Bids received by
4422the association for work to be performed must also be considered
4423official records and must be kept for a period of 1 year.
4424     (j)  The financial and accounting records of the
4425association, kept according to good accounting practices. All
4426financial and accounting records shall must be maintained for a
4427period of at least 7 years. The financial and accounting records
4428must include:
4429     1.  Accurate, itemized, and detailed records of all
4430receipts and expenditures.
4431     2.  A current account and a periodic statement of the
4432account for each member, designating the name and current
4433address of each member who is obligated to pay assessments, the
4434due date and amount of each assessment or other charge against
4435the member, the date and amount of each payment on the account,
4436and the balance due.
4437     3.  All tax returns, financial statements, and financial
4438reports of the association.
4439     4.  Any other records that identify, measure, record, or
4440communicate financial information.
4441     (k)  A copy of the disclosure summary described in s.
4442720.401(1).
4443     (l)  All other written records of the association not
4444specifically included in the foregoing which are related to the
4445operation of the association.
4446     (m)  All interpretations of any governing documents, as
4447provided by any legal source or attorney as long as they are not
4448part of a pending lawsuit.
4449     (n)  All architectural requests and approvals or denials,
4450which shall be maintained as long as the association exists or
4451is active.
4452     (5)  INSPECTION AND COPYING OF RECORDS.--The official
4453records shall be maintained within the county in which the
4454governing documents are recorded state and must be open to
4455inspection and available for photocopying by machine, video,
4456digital cameras, or any other methods available to members or
4457their authorized agents at reasonable times and places within 10
4458business days after receipt of a written request for access.
4459This subsection may be complied with by having a copy of the
4460official records available for inspection or copying in the
4461community. If the association has a photocopy machine available
4462where the records are maintained, it must provide parcel owners
4463with copies on request during the inspection if the entire
4464request is limited to no more than 25 pages.
4465     (a)  The failure of an association to provide access to the
4466records within 10 business days after receipt of a written
4467request creates a rebuttable presumption that the association
4468willfully failed to comply with this subsection.
4469     (b)  A member who is denied access to official records is
4470entitled to the actual damages or minimum damages for the
4471association's willful failure to comply with this subsection.
4472The minimum damages are to be $100 $50 per calendar day up to 10
4473days, the calculation to begin on the 11th business day after
4474receipt of the written request.
4475     (c)  The association may adopt reasonable written rules
4476governing the frequency, time, location, notice, records to be
4477inspected, and manner of inspections, but may not impose a
4478requirement that a parcel owner demonstrate any proper purpose
4479for the inspection, state any reason for the inspection, or
4480limit a parcel owner's right to inspect records to less than one
44818-hour business day per month. The association may only impose
4482fees to cover the actual costs of providing copies of the
4483official records, including, without limitation, the costs of
4484copying. The association may charge up to 5 50 cents per page
4485for copies made on the association's photocopier. If the
4486association does not have a photocopy machine available where
4487the records are kept, or if the records requested to be copied
4488exceed 25 pages in length, the association may have copies made
4489by an outside vendor and may charge the actual cost of copying
4490only. The association may impose a one-time fee not to exceed 1
4491cent per page and limited to a total of $5 if the parcel owner
4492provides the necessary equipment and materials for copying and
4493the labor to make the requested copies. The association shall
4494maintain an adequate number of copies of the recorded governing
4495documents, to ensure their availability to members and
4496prospective members. Notwithstanding the provisions of this
4497paragraph, the following records shall not be accessible to
4498members or parcel owners:
4499     1.  Any record protected by the lawyer-client privilege as
4500described in s. 90.502 and any record protected by the work-
4501product privilege, including, but not limited to, any record
4502prepared by an association attorney or prepared at the
4503attorney's express direction which reflects a mental impression,
4504conclusion, litigation strategy, or legal theory of the attorney
4505or the association and was prepared exclusively for civil or
4506criminal litigation or for adversarial administrative
4507proceedings or which was prepared in anticipation of imminent
4508civil or criminal litigation or imminent adversarial
4509administrative proceedings until the conclusion of the
4510litigation or adversarial administrative proceedings.
4511     2.  Information obtained by an association in connection
4512with the approval of the lease, sale, or other transfer of a
4513parcel.
4514     3.  Disciplinary, health, insurance, and personnel records
4515of the association's employees.
4516     4.  Medical records of parcel owners or community
4517residents.
4518     (6)  BUDGETS.--
4519     (a)  The association shall prepare an annual budget that
4520sets out the annual operating expenses. The budget must reflect
4521the estimated revenues and expenses for that year and the
4522estimated surplus or deficit as of the end of the current year.
4523The budget must set out separately all fees or charges paid for
4524by the association for recreational amenities, whether owned by
4525the association, the developer, or another person. The
4526association shall provide each member with a copy of the annual
4527budget or a written notice that a copy of the budget is
4528available upon request at no charge to the member. The copy must
4529be provided to the member within the time limits set forth in
4530subsection (5).
4531     (b)  In addition to annual operating expenses, the budget
4532may include reserve accounts for capital expenditures and
4533deferred maintenance for which the association is responsible to
4534the extent that the governing documents do not limit increases
4535in assessments, including reserves. If the budget of the
4536association includes reserve accounts, such reserves shall be
4537determined, maintained, and waived in the manner provided in
4538this subsection. Once an association provides for reserve
4539accounts in the budget, the association shall thereafter
4540determine, maintain, and waive reserves in compliance with the
4541provisions of this subsection.
4542     (c)  If the budget of the association does not provide for
4543reserve accounts governed by this subsection and the association
4544is responsible for the repair and maintenance of capital
4545improvements that may result in a special assessment if reserves
4546are not provided, each financial report for the preceding fiscal
4547year required by subsection (7) shall contain the following
4548statement in conspicuous type: THE BUDGET OF THE ASSOCIATION
4549DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES
4550AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
4551OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE
4552PROVISIONS OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE
4553APPROVAL OF NOT LESS THAN A MAJORITY OF THE TOTAL VOTING
4554INTERESTS OF THE ASSOCIATION.
4555     (d)  An association shall be deemed to have provided for
4556reserve accounts when reserve accounts have been initially
4557established by the developer or when the membership of the
4558association affirmatively elects to provide for reserves. If
4559reserve accounts are not initially provided for by the
4560developer, the membership of the association may elect to do so
4561upon the affirmative approval of not less than a majority of the
4562total voting interests of the association. Such approval may be
4563attained by vote of the members at a duly called meeting of the
4564membership or upon a written consent executed by not less than a
4565majority of the total voting interests in the community. The
4566approval action of the membership shall state that reserve
4567accounts shall be provided for in the budget and designate the
4568components for which the reserve accounts are to be established.
4569Upon approval by the membership, the board of directors shall
4570provide for the required reserve accounts for inclusion in the
4571budget in the next fiscal year following the approval and in
4572each year thereafter. Once established as provided in this
4573subsection, the reserve accounts shall be funded or maintained
4574or shall have their funding waived in the manner provided in
4575paragraph (f).
4576     (e)  The amount to be reserved in any account established
4577shall be computed by means of a formula that is based upon
4578estimated remaining useful life and estimated replacement cost
4579or deferred maintenance expense of each reserve item. The
4580association may adjust replacement reserve assessments annually
4581to take into account any changes in estimates of cost or useful
4582life of a reserve item.
4583     (f)  Once a reserve account or reserve accounts are
4584established, the membership of the association, upon a majority
4585vote at a meeting at which a quorum is present, may provide for
4586no reserves or less reserves than required by this section. If a
4587meeting of the unit owners is called to determine whether to
4588waive or reduce the funding of reserves and no such result is
4589achieved or a quorum is not present, the reserves as included in
4590the budget shall go into effect. After the turnover, the
4591developer may vote its voting interest to waive or reduce the
4592funding of reserves. Any vote taken pursuant to this subsection
4593to waive or reduce reserves shall be applicable only to one
4594budget year.
4595     (g)  Funding formulas for reserves authorized by this
4596section shall be based on either a separate analysis of each of
4597the required assets or a pooled analysis of two or more of the
4598required assets.
4599     1.  If the association maintains separate reserve accounts
4600for each of the required assets, the amount of the contribution
4601to each reserve account shall be the sum of the following two
4602calculations:
4603     a.  The total amount necessary, if any, to bring a negative
4604component balance to zero.
4605     b.  The total estimated deferred maintenance expense or
4606estimated replacement cost of the reserve component less the
4607estimated balance of the reserve component as of the beginning
4608of the period for which the budget will be in effect. The
4609remainder, if greater than zero, shall be divided by the
4610estimated remaining useful life of the component.
4611
4612The formula may be adjusted each year for changes in estimates
4613and deferred maintenance performed during the year and may
4614include factors such as inflation and earnings on invested
4615funds.
4616     2.  If the association maintains a pooled account of two or
4617more of the required reserve assets, the amount of the
4618contribution to the pooled reserve account as disclosed on the
4619proposed budget shall not be less than that required to ensure
4620that the balance at the beginning of the period for which the
4621budget will go into effect plus the projected annual cash
4622inflows over the remaining estimated useful life of all of the
4623assets that make up the reserve pool are equal to or greater
4624than the projected annual cash outflows over the remaining
4625estimated useful lives of all of the assets that make up the
4626reserve pool, based on the current reserve analysis. The
4627projected annual cash inflows may include estimated earnings
4628from investment of principal. The reserve funding formula shall
4629not include any type of balloon payments.
4630     (h)  Reserve funds and any interest accruing thereon shall
4631remain in the reserve account or accounts and shall be used only
4632for authorized reserve expenditures unless their use for other
4633purposes is approved in advance by a majority vote at a meeting
4634at which a quorum is present. Prior to turnover of control of an
4635association by a developer to parcel owners, the developer-
4636controlled association shall not vote to use reserves for
4637purposes other than those for which they were intended without
4638the approval of a majority of all nondeveloper voting interests
4639voting in person or by limited proxy at a duly called meeting of
4640the association.
4641     (7)  FINANCIAL REPORTING.--Within 90 days after the end of
4642the fiscal year, or annually on a date provided in the bylaws,
4643the association shall prepare and complete, or contract with a
4644third party for the preparation and completion of, a financial
4645report for the preceding fiscal year. Within 21 days after the
4646final financial report is completed by the association or
4647received from the third party, but not later than 120 days after
4648the end of the fiscal year or other date as provided in the
4649bylaws, the association shall prepare an annual financial report
4650within 60 days after the close of the fiscal year. The
4651association shall, within the time limits set forth in
4652subsection (5), provide each member with a copy of the annual
4653financial report or a written notice that a copy of the
4654financial report is available upon request at no charge to the
4655member. Financial reports shall be prepared as follows:
4656     (a)  An association that meets the criteria of this
4657paragraph shall prepare or cause to be prepared a complete set
4658of financial statements in accordance with generally accepted
4659accounting principles as adopted by the Board of Accountancy.
4660The financial statements shall be based upon the association's
4661total annual revenues, as follows:
4662     1.  An association with total annual revenues of $100,000
4663or more, but less than $200,000, shall prepare compiled
4664financial statements.
4665     2.  An association with total annual revenues of at least
4666$200,000, but less than $400,000, shall prepare reviewed
4667financial statements.
4668     3.  An association with total annual revenues of $400,000
4669or more shall prepare audited financial statements.
4670     (b)1.  An association with total annual revenues of less
4671than $100,000 shall prepare a report of cash receipts and
4672expenditures.
4673     2.  An association in a community of fewer than 50 parcels,
4674regardless of the association's annual revenues, may prepare a
4675report of cash receipts and expenditures in lieu of financial
4676statements required by paragraph (a) unless the governing
4677documents provide otherwise.
4678     3.  A report of cash receipts and disbursement must
4679disclose the amount of receipts by accounts and receipt
4680classifications and the amount of expenses by accounts and
4681expense classifications, including, but not limited to, the
4682following, as applicable: costs for security, professional, and
4683management fees and expenses; taxes; costs for recreation
4684facilities; expenses for refuse collection and utility services;
4685expenses for lawn care; costs for building maintenance and
4686repair; insurance costs; administration and salary expenses; and
4687reserves if maintained by the association.
4688     (c)  If 20 percent of the parcel owners petition the board
4689for a level of financial reporting higher than that required by
4690this section, the association shall duly notice and hold a
4691meeting of members within 30 days of receipt of the petition for
4692the purpose of voting on raising the level of reporting for that
4693fiscal year. Upon approval of a majority of the total voting
4694interests of the parcel owners, the association shall prepare or
4695cause to be prepared, shall amend the budget or adopt a special
4696assessment to pay for the financial report regardless of any
4697provision to the contrary in the governing documents, and shall
4698provide within 90 days of the meeting or the end of the fiscal
4699year, whichever occurs later:
4700     1.  Compiled, reviewed, or audited financial statements, if
4701the association is otherwise required to prepare a report of
4702cash receipts and expenditures;
4703     2.  Reviewed or audited financial statements, if the
4704association is otherwise required to prepare compiled financial
4705statements; or
4706     3.  Audited financial statements if the association is
4707otherwise required to prepare reviewed financial statements.
4708     (d)  If approved by a majority of the voting interests
4709present at a properly called meeting of the association, an
4710association may prepare or cause to be prepared:
4711     1.  A report of cash receipts and expenditures in lieu of a
4712compiled, reviewed, or audited financial statement;
4713     2.  A report of cash receipts and expenditures or a
4714compiled financial statement in lieu of a reviewed or audited
4715financial statement; or
4716     3.  A report of cash receipts and expenditures, a compiled
4717financial statement, or a reviewed financial statement in lieu
4718of an audited financial statement.
4719     (8)  ASSOCIATION FUNDS; COMMINGLING.--
4720     (a)  All association funds held by a developer shall be
4721maintained separately in the association's name. Reserve and
4722operating funds of the association shall not be commingled prior
4723to turnover except the association may jointly invest reserve
4724funds; however, such jointly invested funds must be accounted
4725for separately.
4726     (b)  No developer in control of a homeowners' association
4727shall commingle any association funds with his or her funds or
4728with the funds of any other homeowners' association, or
4729community association, or corporation for profit created by the
4730developer.
4731     (c)  Association funds may not be used by a developer to
4732defend a civil or criminal action, administrative proceeding, or
4733arbitration proceeding that has been filed against the developer
4734or directors appointed to the association board by the
4735developer, even when the subject of the action or proceeding
4736concerns the operation of the developer-controlled association.
4737     (9)  APPLICABILITY.--Sections 617.1601-617.1604 do not
4738apply to a homeowners' association in which the members have the
4739inspection and copying rights set forth in this section.
4740     (10)  RECALL OF DIRECTORS.--
4741     (a)1.  Regardless of any provision to the contrary
4742contained in the governing documents, subject to the provisions
4743of s. 720.307 regarding transition of association control, any
4744member of the board of directors shall may be recalled and
4745removed from office with or without cause by a majority of the
4746total voting interests who must be the registered and recorded
4747owners.
4748     2.  When the governing documents, including the
4749declaration, articles of incorporation, or bylaws, provide that
4750only a specific class of members is entitled to elect a board
4751director or directors, only that class of members may vote to
4752recall those board directors so elected.
4753     (b)1.  Board directors may be recalled by an agreement in
4754writing or by written ballot without a membership meeting. The
4755agreement in writing or the written ballots, or a copy thereof,
4756shall be served on the association by certified mail or by
4757personal service in the manner authorized by chapter 48 and the
4758Florida Rules of Civil Procedure.
4759     2.  The board shall duly notice and hold a meeting of the
4760board within 5 full business days after receipt of the agreement
4761in writing or written ballots. At the meeting, the board shall
4762either certify the written ballots or written agreement to
4763recall a director or directors of the board, in which case such
4764director or directors shall be recalled effective immediately
4765and shall turn over to the board within 5 full business days any
4766and all records and property of the association in their
4767possession, or proceed as described in paragraph (d).
4768     3.  When it is determined by the department pursuant to
4769binding arbitration proceedings that an initial recall effort
4770was defective, written recall agreements or written ballots used
4771in the first recall effort and not found to be defective may be
4772reused in one subsequent recall effort. However, in no event is
4773a written agreement or written ballot valid for more than 120
4774days after it has been signed by the member.
4775     4.  Any rescission or revocation of a member's written
4776recall ballot or agreement must be in writing and, in order to
4777be effective, must be delivered to the association before the
4778association is served with the written recall agreements or
4779ballots.
4780     5.  The agreement in writing or ballot shall list at least
4781as many possible replacement directors as there are directors
4782subject to the recall, when at least a majority of the board is
4783sought to be recalled; the person executing the recall
4784instrument may vote for as many replacement candidates as there
4785are directors subject to the recall.
4786     (c)1.  If the declaration, articles of incorporation, or
4787bylaws specifically provide, the Members may also recall and
4788remove a board director or directors by a vote taken at a
4789special meeting of the members. If so provided in the governing
4790documents, A special meeting of the members to recall a director
4791or directors of the board of administration may be called by 10
4792percent of the voting interests giving notice of the meeting as
4793required for a meeting of members, and the notice shall state
4794the purpose of the meeting. Electronic transmission may not be
4795used as a method of giving notice of a meeting called in whole
4796or in part for this purpose.
4797     2.  The board shall duly notice and hold a board meeting
4798within 5 full business days after the adjournment of the member
4799meeting to recall one or more directors. At the meeting, the
4800board shall certify the recall, in which case such member or
4801members shall be recalled effective immediately and shall turn
4802over to the board within 5 full business days any and all
4803records and property of the association in their possession, or
4804shall proceed as set forth in subparagraph (d).
4805     (d)  If the board determines not to certify the written
4806agreement or written ballots to recall a director or directors
4807of the board or does not certify the recall by a vote at a
4808meeting, the board shall, within 5 full business days after the
4809meeting, file with the department a petition for binding
4810arbitration pursuant to the applicable procedures in ss.
4811718.112(2)(j) and 718.1255 and the rules adopted thereunder. For
4812the purposes of this section, the members who voted at the
4813meeting or who executed the agreement in writing shall
4814constitute one party under the petition for arbitration. If the
4815arbitrator certifies the recall as to any director or directors
4816of the board, the recall will be effective upon mailing of the
4817final order of arbitration to the association. The director or
4818directors so recalled shall deliver to the board any and all
4819records of the association in their possession within 5 full
4820business days after the effective date of the recall.
4821     (e)  If a vacancy occurs on the board as a result of a
4822recall and less than a majority of the board directors are
4823removed, the vacancy may be filled by the affirmative vote of a
4824majority of the remaining directors, notwithstanding any
4825provision to the contrary contained in this subsection or in the
4826association documents. If vacancies occur on the board as a
4827result of a recall and a majority or more of the board directors
4828are removed, the vacancies shall be filled by members voting in
4829favor of the recall; if removal is at a meeting, any vacancies
4830shall be filled by the members at the meeting. If the recall
4831occurred by agreement in writing or by written ballot, members
4832may vote for replacement directors in the same instrument in
4833accordance with procedural rules adopted by the division, which
4834rules need not be consistent with this subsection.
4835     (f)  If the board fails to duly notice and hold a board
4836meeting within 5 full business days after service of an
4837agreement in writing or within 5 full business days after the
4838adjournment of the member recall meeting, the recall shall be
4839deemed effective and the board directors so recalled shall
4840immediately turn over to the board all records and property of
4841the association.
4842     (g)  If a director who is removed fails to relinquish his
4843or her office or turn over records as required under this
4844section, the circuit court in the county where the association
4845maintains its principal office may, upon the petition of the
4846association, summarily order the director to relinquish his or
4847her office and turn over all association records upon
4848application of the association.
4849     (h)  The minutes of the board meeting at which the board
4850decides whether to certify the recall are an official
4851association record. The minutes must record the date and time of
4852the meeting, the decision of the board, and the vote count taken
4853on each board member subject to the recall. In addition, when
4854the board decides not to certify the recall, as to each vote
4855rejected, the minutes must identify the parcel number and the
4856specific reason for each such rejection.
4857     (i)  When the recall of more than one board director is
4858sought, the written agreement, ballot, or vote at a meeting
4859shall provide for a separate vote for each board director sought
4860to be recalled.
4861     Section 54.  Subsections (2) and (6) of section 720.304,
4862Florida Statutes, are amended, and subsection (7) is added to
4863that section, to read:
4864     720.304  Right of owners to peaceably assemble; display of
4865flag; SLAPP suits prohibited.--
4866     (2)  Any homeowner may display one stationary or portable,
4867removable United States flag or official flag of the State of
4868Florida in a respectful manner, and on Armed Forces Day,
4869Memorial Day, Flag Day, Independence Day, and Veterans Day may
4870display in a respectful manner portable, removable official
4871flags, not larger than 41/2 feet by 6 feet, which represent the
4872United States Army, Navy, Air Force, Marine Corps, or Coast
4873Guard, from a freestanding, portable, removable, or telescoping
4874flagpole not to exceed 20 feet in the front, rear, or side yard
4875regardless of any declaration rules or requirements dealing with
4876flags or decorations.
4877     (6)  Any parcel owner may display a sign of reasonable size
4878provided by a contractor for security services within 10 feet of
4879any entrance to the home. The sign shall not exceed 18 inches
4880high by 18 inches wide, and the bottom of the sign shall be no
4881higher than 24 inches from the ground elevation within the
4882permitted area of installation. Other specifications may be
4883approved by the association, but in no case shall the
4884specifications be less than authorized by this section.
4885     (7)(a)  Rules and regulations pertaining to common elements
4886shall be protected by the First Amendment to the United States
4887Constitution and s. 5, Art. I of the State Constitution, and
4888associations shall not in any way abridge or deny constitutional
4889rights and freedoms of homeowners with respect to use of such
4890common elements.
4891     (b)  All common elements, common areas, and recreational
4892facilities serving any association shall be available to unit
4893owners in the association served thereby and their invited
4894guests for the use intended for such common elements, common
4895areas, and recreational facilities. The entity or entities
4896responsible for the operation of the common elements, common
4897areas, and recreational facilities may adopt reasonable rules
4898and regulations pertaining to the use of such common elements,
4899common areas, and recreational facilities as to the manner and
4900times they are used, but not the purpose for which they are
4901used. No entity or entities shall unreasonably restrict any unit
4902owner's right to peaceably assemble or right to invite public
4903officers or candidates for public office to appear and speak in
4904common elements, common areas, and recreational facilities.
4905     (c)  Any owner prevented from exercising rights guaranteed
4906by this section may bring an action in the appropriate court of
4907the county in which the alleged infringement occurred, and, upon
4908favorable adjudication, the court shall enjoin the enforcement
4909of any provision contained in any association.
4910     Section 55.  Section 720.305, Florida Statutes, is amended
4911to read:
4912     720.305  Obligations of members; remedies at law or in
4913equity; levy of fines and suspension of use rights; failure to
4914fill sufficient number of vacancies on board of directors to
4915constitute a quorum; appointment of receiver upon petition of
4916any member.--
4917     (1)  Each member and the member's tenants, guests, and
4918invitees, and each association, are governed by, and must comply
4919with, this chapter, the governing documents of the community,
4920and the rules of the association. Actions at law or in equity,
4921or both, to redress alleged failure or refusal to comply with
4922these provisions may be brought by the association or by any
4923member against:
4924     (a)  The association;
4925     (b)  A member;
4926     (c)  Any director or officer of an association who
4927willfully and knowingly or otherwise fails to comply with these
4928provisions; and
4929     (d)  Any tenants, guests, or invitees occupying a parcel or
4930using the common areas.
4931
4932The prevailing party in any such litigation is entitled to
4933recover reasonable attorney's fees and costs. This section does
4934not deprive any person of any other available right or remedy.
4935     (2)  If the governing documents so provide, An association
4936may suspend, for a reasonable period of time, the rights of a
4937member or a member's tenants, guests, or invitees, or both, to
4938use common areas and facilities if so and may levy reasonable
4939fines, not to exceed $100 per violation, against any member or
4940any tenant, guest, or invitee. A fine may be levied on the basis
4941of each day of a continuing violation, with a single notice and
4942opportunity for hearing, except that no such fine shall exceed
4943$1,000 in the aggregate unless otherwise provided in the
4944governing documents. A fine shall not become a lien against a
4945parcel. In any action to recover a fine, the prevailing party is
4946entitled to collect its reasonable attorney's fees and costs
4947from the nonprevailing party as determined by the court.
4948     (a)  A fine or suspension may not be imposed without notice
4949of at least 14 days to the person sought to be fined or
4950suspended and an opportunity for a hearing before a committee of
4951at least three members appointed by the board who are not
4952officers, directors, or employees of the association, or the
4953spouse, parent, child, brother, or sister of an officer,
4954director, or employee. If the committee, by majority vote, does
4955not approve a proposed fine or suspension, it may not be
4956imposed.
4957     (b)  The requirements of this subsection do not apply to
4958the imposition of suspensions or fines upon any member because
4959of the failure of the member to pay assessments or other charges
4960when due if such action is authorized by the governing
4961documents.
4962     (c)  Suspension of common-area-use rights shall not impair
4963the right of an owner or tenant of a parcel to have vehicular
4964and pedestrian ingress to and egress from the parcel, including,
4965but not limited to, the right to park.
4966     (3)  If the governing documents so provide, an association
4967may suspend the voting rights of a member for the nonpayment of
4968regular annual assessments that are delinquent in excess of 90
4969days.
4970     (4)  If an association fails to fill vacancies on the board
4971of directors sufficient to constitute a quorum in accordance
4972with the bylaws, any member may apply to the circuit court that
4973has jurisdiction over the community served by the association
4974for the appointment of a receiver to manage the affairs of the
4975association. At least 30 days before applying to the circuit
4976court, the member shall mail to the association, by certified or
4977registered mail, and post, in a conspicuous place on the
4978property of the community served by the association, a notice
4979describing the intended action, giving the association 30 days
4980to fill the vacancies. If during such time the association fails
4981to fill a sufficient number of vacancies so that a quorum can be
4982assembled, the member may proceed with the petition. If a
4983receiver is appointed, the homeowners' association shall be
4984responsible for the salary of the receiver, court costs,
4985attorney's fees, and all other expenses of the receivership. The
4986receiver has all the powers and duties of a duly constituted
4987board of directors and shall serve until the association fills a
4988sufficient number of vacancies on the board so that a quorum can
4989be assembled.
4990     Section 56.  Section 720.3055, Florida Statutes, is amended
4991to read:
4992     720.3055  Contracts for products and services; in writing;
4993bids; exceptions.--
4994     (1)  All contracts as further described in this section or
4995any contract that is not to be fully performed within 1 year
4996after the making thereof for the purchase, lease, or renting of
4997materials or equipment to be used by the association in
4998accomplishing its purposes under this chapter or the governing
4999documents, and all contracts for the provision of services,
5000shall be in writing. If a contract for the purchase, lease, or
5001renting of materials or equipment, or for the provision of
5002services, requires payment by the association that exceeds 10
5003percent of the total annual budget of the association, including
5004reserves, the association must obtain competitive bids for the
5005materials, equipment, or services. Nothing contained in this
5006section shall be construed to require the association to accept
5007the lowest bid.
5008     (2)(a)1.  Notwithstanding the foregoing, Contracts with
5009employees of the association, and contracts for attorney,
5010accountant, architect, community association manager,
5011engineering, and landscape architect services are not subject to
5012the provisions of this section.
5013     2.  A contract executed before October 1, 2004, and any
5014renewal thereof, is not subject to the competitive bid
5015requirements of this section. If a contract was awarded under
5016the competitive bid procedures of this section, any renewal of
5017that contract is not subject to such competitive bid
5018requirements if the contract contains a provision that allows
5019the board to cancel the contract on 30 days' notice. Materials,
5020equipment, or services provided to an association under a local
5021government franchise agreement by a franchise holder or a
5022manager are not subject to the competitive bid requirements of
5023this section. A contract with a manager, if made by a
5024competitive bid, may be made for up to 3 years and must contain
5025a 30-day termination clause. An association whose declaration or
5026bylaws provide for competitive bidding for services may operate
5027under the provisions of that declaration or bylaws in lieu of
5028this section if those provisions are not less stringent than the
5029requirements of this section.
5030     (b)  Nothing contained in this section is intended to limit
5031the ability of an association to obtain needed products and
5032services in an emergency.
5033     (c)  This section does not apply if the business entity
5034with which the association desires to enter into a contract is
5035the only source of supply within the county serving the
5036association.
5037     (d)  Nothing contained in this section shall excuse a party
5038contracting to provide maintenance or management services from
5039compliance with s. 720.309.
5040     Section 57.  Section 720.306, Florida Statutes, is amended
5041to read:
5042     720.306  Meetings of members; voting and election
5043procedures; amendments.--
5044     (1)  QUORUM; AMENDMENTS.--
5045     (a)  Unless otherwise required by law, and other than those
5046matters set forth in paragraph (b), any governing document of an
5047association shall only be amended by the affirmative vote of
5048two-thirds of the voting interests of the association subject to
5049the following:
5050     1.  All amendments offered for official recording must be
5051submitted as contained within the covenants and restrictions in
5052their entirety.
5053     2.  Within 12 months of enactment of this subsection all
5054duly registered covenants and restrictions must be complete and
5055set forth in plain, easily understandable English. Unless a
5056lower number is provided in the bylaws, the percentage of voting
5057interests required to constitute a quorum at a meeting of the
5058members shall be 30 percent of the total voting interests.
5059Unless otherwise provided in this chapter or in the articles of
5060incorporation or bylaws, decisions that require a vote of the
5061members must be made by the concurrence of at least a majority
5062of the voting interests present, in person or by proxy, at a
5063meeting at which a quorum has been attained.
5064     (b)  Unless otherwise provided in the governing documents
5065or required by law, and other than those matters set forth in
5066paragraph (c), any governing document of an association may be
5067amended by the affirmative vote of two-thirds of the voting
5068interests of the association.
5069     (b)(c)  Unless otherwise provided in the governing
5070documents as originally recorded or permitted by this chapter or
5071chapter 617, An amendment may not materially and adversely alter
5072the proportionate voting interest appurtenant to a parcel or
5073increase the proportion or percentage by which a parcel shares
5074in the common expenses of the association unless the record
5075parcel owner and all record owners of liens on the parcels join
5076in the execution of the amendment. For purposes of this section,
5077a change in quorum requirements is not an alteration of voting
5078interests.
5079     (c)  An amendment restricting owners' rights relating to
5080the rental of homes applies only to parcel owners who consent to
5081the amendment and to parcel owners who purchase their parcels
5082after the effective date of that amendment.
5083     (2)  ANNUAL MEETING.--The association shall hold a meeting
5084of its members annually for the transaction of any and all
5085proper business at a time, date, and place stated in, or fixed
5086in accordance with, the bylaws. The election of directors, if
5087one is required to be held, must be held at, or in conjunction
5088with, the annual meeting or as provided in the governing
5089documents.
5090     (3)  SPECIAL MEETINGS.--Special meetings must be held when
5091called by the board of directors or, unless a different
5092percentage is stated in the governing documents, by at least 10
5093percent of the total voting interests of the association.
5094Business conducted at a special meeting is limited to the
5095purposes described in the notice and the agenda of the meeting.
5096     (4)  CONTENT OF NOTICE.--Unless law or the governing
5097documents require otherwise, Notice of an annual meeting need
5098not include a description of the purpose or purposes for which
5099the meeting is called. Notice of a special meeting must include
5100an agenda and a description of the purpose or purposes for which
5101the meeting is called.
5102     (5)  NOTICE OF MEETINGS.--The bylaws shall provide for
5103giving notice to members of all member meetings, and if they do
5104not do so shall be deemed to provide the following: The
5105association shall give all parcel owners and members actual
5106notice of all membership meetings, which shall be mailed,
5107delivered, or electronically transmitted to the members not less
5108than 14 days prior to the meeting. Evidence of compliance with
5109this 14-day notice shall be made by an affidavit executed by the
5110person providing the notice and filed upon execution among the
5111official records of the association. In addition to mailing,
5112delivering, or electronically transmitting the notice of any
5113meeting, the association may, by reasonable rule, adopt a
5114procedure for conspicuously posting and repeatedly broadcasting
5115the notice and the agenda on a closed-circuit cable television
5116system serving the association. When broadcast notice is
5117provided, the notice and agenda must be broadcast in a manner
5118and for a sufficient continuous length of time so as to allow an
5119average reader to observe the notice and read and comprehend the
5120entire content of the notice and the agenda.
5121     (6)  RIGHT TO SPEAK.--Members and parcel owners have the
5122right to attend all membership meetings and to speak at any
5123meeting with reference to any all items opened for discussion or
5124included on the agenda. Notwithstanding any provision to the
5125contrary in the governing documents or any rules adopted by the
5126board or by the membership, A member and a parcel owner have the
5127right to speak at least once for at least 3 minutes on each
5128agenda any item, provided that the member or parcel owner
5129submits a written request to speak prior to the meeting. The
5130association may adopt written reasonable rules governing the
5131frequency and, duration, and other manner of member and parcel
5132owner statements, which rules must be consistent with this
5133subsection.
5134     (7)  ADJOURNMENT.--Unless the bylaws require otherwise,
5135Adjournment of an annual or special meeting to a different date,
5136time, or place must be announced at that meeting before an
5137adjournment is taken, or notice must be given of the new date,
5138time, or place pursuant to s. 720.303(2). Any business that
5139might have been transacted on the original date of the meeting
5140may be transacted at the adjourned meeting. If a new record date
5141for the adjourned meeting is or must be fixed under s. 617.0707,
5142notice of the adjourned meeting must be given to persons who are
5143entitled to vote and are members as of the new record date but
5144were not members as of the previous record date.
5145     (8)  PROXY VOTING.--The members have the right, unless
5146otherwise provided in this subsection or in the governing
5147documents, to vote in person or by limited proxy. To be valid, a
5148limited proxy must be dated, must state the date, time, and
5149place of the meeting for which it was given, and must be signed
5150by the authorized person who executed the proxy. A limited proxy
5151is effective only for the specific meeting for which it was
5152originally given, as the meeting may lawfully be adjourned and
5153reconvened from time to time, and automatically expires 60 90
5154days after the date of the meeting for which it was originally
5155given. A proxy is revocable at any time at the pleasure of the
5156person who executes it. If the proxy form expressly so provides,
5157any proxy holder may appoint, in writing, a substitute to act in
5158his or her place.
5159     (9)  ELECTIONS.--
5160     (a)  Election procedures.--
5161     1.  The members of the board shall be elected by written
5162ballot or voting machine. Proxies shall in no event be used in
5163electing the board, either in general elections or elections to
5164fill vacancies caused by recall, resignation, or otherwise,
5165unless otherwise provided in this chapter. Not less than 60 days
5166before a scheduled election, the association shall mail,
5167deliver, or electronically transmit, whether by separate
5168association mailing or included in another association mailing,
5169delivery, or transmission, including regularly published
5170newsletters, to each parcel owner entitled to a vote, a first
5171notice of the date of the election. Any homeowner or other
5172eligible person desiring to be a candidate for the board must
5173give written notice to the association not less than 40 days
5174before a scheduled election. Together with the written notice
5175and agenda as set forth in this section, the association shall
5176mail, deliver, or electronically transmit a second notice of the
5177election to all parcel owners entitled to vote therein, with a
5178ballot that shall list all candidates. Upon request of a
5179candidate, the association shall include an information sheet,
5180no larger than 8 1/2 inches by 11 inches, which must be
5181furnished by the candidate not less than 35 days before the
5182election, to be included with the mailing, delivery, or
5183transmission of the ballot, with the costs of mailing, delivery,
5184or electronic transmission and copying to be borne by the
5185association. The association is not liable for the contents of
5186the information sheets prepared by the candidates. In order to
5187reduce costs, the association may print or duplicate the
5188information sheets on both sides of the paper. The division
5189shall by rule establish voting procedures consistent with the
5190provisions contained in this chapter, including rules
5191establishing procedures for giving notice by electronic
5192transmission and rules providing for the secrecy of ballots.
5193Elections shall be decided by a plurality of those ballots cast.
5194There shall be no quorum requirement; however, at least 20
5195percent of the eligible voters must cast a ballot in order to
5196have a valid election of members of the board. No parcel owner
5197shall permit any other person to vote his or her ballot, and any
5198such ballots improperly cast shall be deemed invalid, provided
5199any parcel owner who violates this provision may be fined by the
5200association in accordance with s. 720.305(2). A parcel owner
5201needing assistance in casting the ballot for the reasons stated
5202in s. 101.051 may obtain assistance in casting the ballot. The
5203regular election shall occur on the date of the annual meeting.
5204Notwithstanding the provisions of this subparagraph, an election
5205is not required unless more candidates file notices of intent to
5206run or more are nominated than board vacancies exist.
5207     2.  Unless otherwise provided in the bylaws, any vacancy
5208occurring on the board before the expiration of a term may be
5209filled by the affirmative vote of the majority of the remaining
5210directors, even if the remaining directors constitute less than
5211a quorum, or by the sole remaining director. In the alternative,
5212a board may hold an election to fill the vacancy, in which case
5213the election procedures must conform to the requirements of this
5214section unless the association has opted out of the statutory
5215election process, in which case the bylaws of the association
5216control. Unless otherwise provided in the bylaws, a board member
5217appointed or elected under this section shall fill the vacancy
5218for the unexpired term of the seat being filled. Filling
5219vacancies created by recall is governed by s. 720.303(10) and
5220rules adopted by the division.
5221     3.  Fifteen percent of the total voting interests in a
5222homeowners' association, or six parcel owners, whichever is
5223greater, may petition the division to appoint an election
5224monitor to attend the annual meeting of the homeowners and
5225conduct the election of directors. The division shall appoint a
5226division employee, a person or persons specializing in
5227homeowners' association election monitoring, or an attorney
5228licensed to practice in this state as the election monitor. All
5229costs associated with the election monitoring process shall be
5230paid by the association. The division shall adopt a rule
5231establishing procedures for the appointment of election monitors
5232and the scope and extent of the monitor's role in the election
5233process.
5234     (b)  Terms; eligibility of candidates.--
5235     1.  The terms of all members of the board shall expire at
5236the annual meeting. Members may stand for reelection.
5237     2.  Coowners of a parcel may not serve as members of the
5238board of administration at the same time.
5239     3.  After transition of control in a community, only
5240members as defined in s. 720.301(1) shall be eligible as
5241candidates for the board.
5242     4.  A person who has been convicted of any felony by any
5243court of record in the United States and who has not had his or
5244her right to vote restored pursuant to law in the jurisdiction
5245of his or her residence is not eligible for board membership.
5246The validity of an action by the board is not affected if it is
5247later determined that a member of the board is ineligible for
5248board membership due to having been convicted of a felony.
5249Elections of directors must be conducted in accordance with the
5250procedures set forth in the governing documents of the
5251association. All members of the association shall be eligible to
5252serve on the board of directors, and a member may nominate
5253himself or herself as a candidate for the board at a meeting
5254where the election is to be held. Except as otherwise provided
5255in the governing documents, boards of directors must be elected
5256by a plurality of the votes cast by eligible voters. Any
5257election dispute between a member and an association must be
5258submitted to mandatory binding arbitration with the division.
5259Such proceedings shall be conducted in the manner provided by s.
5260718.1255 and the procedural rules adopted by the division.
5261     (10)  RECORDING.--Any parcel owner may electronically tape
5262record any or videotape meetings of the board of directors and
5263meetings of the members. The board of directors of the
5264association may adopt reasonable rules governing the taping of
5265meetings of the board and the membership. However, those rules
5266may not restrict the parcel owners' rights to electronically
5267record the meeting using, but not limited to, battery-operated
5268or electrical equipment.
5269     Section 58.  Section 720.307, Florida Statutes, is amended
5270to read:
5271     720.307  Transition of association control in a
5272community.--With respect to homeowners' associations:
5273     (1)  Members other than the developer are entitled to elect
5274at least a majority of the members of the board of directors of
5275the homeowners' association when the earlier of the following
5276events occurs:
5277     (a)  Three months after 75 90 percent of the parcels in all
5278phases of the community that will ultimately be operated by the
5279homeowners' association have been conveyed to members; or
5280     (b)  Such other percentage of the parcels has been conveyed
5281to members, or such other date or event has occurred, as is set
5282forth in the governing documents in order to comply with the
5283requirements of any governmentally chartered entity with regard
5284to the mortgage financing of parcels.
5285
5286For purposes of this section, the term "members other than the
5287developer" shall not include builders, contractors, or others
5288who purchase a parcel for the purpose of constructing
5289improvements thereon for resale.
5290     (2)  The developer is entitled to elect at least one member
5291of the board of directors of the homeowners' association as long
5292as the developer holds for sale in the ordinary course of
5293business at least 5 percent of the parcels in all phases of the
5294community. After the developer relinquishes control of the
5295homeowners' association, the developer may exercise the right to
5296vote any developer-owned voting interests in the same manner as
5297any other member, except for purposes of reacquiring control of
5298the homeowners' association or selecting the majority of the
5299members of the board of directors.
5300     (3)  Prior to turnover, the developer or owner of all
5301common areas shall convey the title to all common areas to the
5302association immediately upon incorporation of the association.
5303If additional common areas are acquired prior to transition of
5304control and subject to the governing documents, title to those
5305common areas shall also be immediately transferred to the
5306association.
5307     (4)  At the time the members are entitled to elect at least
5308a majority of the board of directors of the homeowners'
5309association, the developer shall, at the developer's expense,
5310within no more than 30 90 days deliver the following documents
5311to the board:
5312     (a)  All deeds to common property owned by the association
5313or the developer.
5314     (b)  The original of the association's declarations of
5315covenants and restrictions.
5316     (c)  A certified copy of the articles of incorporation of
5317the association.
5318     (d)  A copy of the bylaws.
5319     (e)  The minute books, including all minutes.
5320     (f)  The books and records of the association.
5321     (g)  Policies, rules, and regulations, if any, which have
5322been adopted.
5323     (h)  Resignations of directors who are required to resign
5324because the developer is required to relinquish control of the
5325association.
5326     (i)  The financial records of the association from the date
5327of incorporation through the date of turnover.
5328     (j)  All association funds and control thereof.
5329     (k)  All tangible property of the association.
5330     (l)  A copy of all contracts which may be in force with the
5331association as one of the parties.
5332     (m)  A list of the names and addresses and telephone
5333numbers of all contractors, subcontractors, or others in the
5334current employ of the association.
5335     (n)  Any and all insurance policies in effect.
5336     (o)  Any permits issued to the association by governmental
5337entities.
5338     (p)  Any and all warranties in effect.
5339     (q)  A roster of current homeowners and their addresses and
5340telephone numbers and section and lot numbers.
5341     (r)  Employment and service contracts in effect.
5342     (s)  All other contracts and agreements in effect to which
5343the association is a party.
5344     (t)  The financial records, including financial statements
5345of the association, and source documents from the incorporation
5346of the association through the date of turnover. The records
5347shall be audited by an independent certified public accountant
5348for the period of the incorporation of the association or for
5349the period covered by the last audit, if an audit has been
5350performed for each fiscal year since incorporation. All
5351financial statements shall be prepared in accordance with
5352generally accepted accounting standards and shall be audited in
5353accordance with generally accepted auditing standards as
5354prescribed by the Board of Accountancy. The accountant
5355performing the review shall examine to the extent necessary
5356supporting documents and records, including the cash
5357disbursements and related paid invoices to determine whether
5358expenditures were for association purposes and the billings,
5359cash receipts, and related records to determine whether the
5360developer was charged and paid the proper amounts of
5361assessments. This paragraph applies to associations with a date
5362of incorporation after December 31, 2007.
5363     (5)(4)  This section applies to any mandatory homeowners'
5364association existing under this chapter does not apply to a
5365homeowners' association in existence on the effective date of
5366this act, or to a homeowners' association, no matter when
5367created, if such association is created in a community that is
5368included in an effective development-of-regional-impact
5369development order as of the effective date of this act, together
5370with any approved modifications thereof.
5371     Section 59.  Section 720.3071, Florida Statutes, is created
5372to read:
5373     720.3071  Board member training.--The division shall
5374provide training programs for homeowners' association board
5375members, at the associations' expense. Training shall be
5376mandatory for newly elected board members and members currently
5377serving on a board who have not previously voluntarily attended
5378training.
5379     Section 60.  Subsection (1) of section 720.3075, Florida
5380Statutes, is amended, and subsection (5) is added to that
5381section, to read:
5382     720.3075  Prohibited clauses in association documents.--
5383     (1)  It is declared that the public policy of this state
5384prohibits the inclusion or enforcement of certain types of
5385clauses in homeowners' association documents, including
5386declaration of covenants, articles of incorporation, bylaws, or
5387any other document of the association which binds members of the
5388association, which either have the effect of or provide that:
5389     (a)  A developer has the unilateral ability and right to
5390make changes to the homeowners' association documents after the
5391transition of homeowners' association control in a community
5392from the developer to the nondeveloper members, as set forth in
5393s. 720.307, has occurred.
5394     (b)  A homeowners' association is prohibited or restricted
5395from filing a lawsuit against the developer, or the homeowners'
5396association is otherwise effectively prohibited or restricted
5397from bringing a lawsuit against the developer.
5398     (c)  After the transition of homeowners' association
5399control in a community from the developer to the nondeveloper
5400members, as set forth in s. 720.307, has occurred, a developer
5401is entitled to cast votes in an amount that exceeds one vote per
5402residential lot.
5403     (d)  The homeowners' association is restricted or prevented
5404from functioning, as provided by federal, state, and local laws
5405and specifically by this chapter.
5406     (e)  The homeowners' association is prevented from amending
5407any document as allowed according to Florida statutes.
5408
5409Such clauses are declared null and void as against the public
5410policy of this state.
5411     (5)(a)  An association may not restrict a homeowner from
5412mounting or employing shutters or other hurricane protection.
5413     (b)  Except as provided in paragraph (c), an association
5414may not restrict a homeowner from mounting or employing
5415temporary or permanent shutters or other hurricane protection
5416during any time that a hurricane warning has been declared,
5417during any time when an evacuation order has been given, or for
5418the following period after conclusion of such hurricane watch or
5419evacuation order:
5420     1.  Seven days; or
5421     2.  Fourteen days if the hurricane watch concerns a
5422category 4 storm or greater or if the evacuation order lasts
5423more than 3 days.
5424     (c)  If a local government restricts homeowners' mounting
5425or employing temporary or permanent shutters or other hurricane
5426protection, the local government may also authorize associations
5427to adopt and enforce equal or lesser restrictions.
5428     (d)  Except as provided in paragraph (c) or paragraph (e),
5429an association may not restrict a homeowner from mounting or
5430employing permanent shutters or other hurricane protection
5431     (e)  If the association otherwise properly adopts
5432restrictions governing color or form of shutters or other
5433permanent exterior window coverings, the association may adopt
5434and enforce equal or lesser restrictions that apply to permanent
5435exterior hurricane protections.
5436     (f)  An association may not restrict the time or duration
5437for shutters or other hurricane protection to be open or closed
5438during any period and may not restrict homeowners from mounting
5439or employing temporary shutters or other hurricane protection,
5440as provided in paragraph (b).
5441     Section 61.  Section 720.3086, Florida Statutes, is amended
5442to read:
5443     720.3086  Financial report; audit; penalty; exclusivity of
5444properties.--
5445     (1)  In a residential subdivision in which the owners of
5446lots or parcels must pay mandatory maintenance or amenity fees
5447to the subdivision developer or to the owners of the common
5448areas, recreational facilities, and other properties serving the
5449lots or parcels, the developer or owner of such areas,
5450facilities, or properties shall make public, within 60 days
5451following the end of each fiscal year, a complete financial
5452report of the actual, total receipts of mandatory maintenance or
5453amenity fees received by it, and an itemized listing of the
5454expenditures made by it from such fees, for that year. Such
5455report shall be made public by mailing it to each lot or parcel
5456owner in the subdivision, by publishing it in a publication
5457regularly distributed within the subdivision, or by posting it
5458in prominent locations in the subdivision. Thereafter, the
5459developer or the owner of the common areas, recreational
5460facilities, and other properties serving the lots or parcels
5461shall mail the annual financial report, upon written request
5462from a lot or parcel owner.
5463     (2)  Pursuant to this section, if the developer or the
5464owner fails to provide the lot or parcel owner with the
5465requested annual financial report within 30 days of delivery of
5466such request to the developer or owner, the circuit court
5467located in the same county as the principal office of the
5468corporation, or its registered office, if no office exists in
5469this state, summarily may order the corporation to furnish such
5470financial report, upon application of the lot or parcel owner.
5471If the court orders the corporation to furnish the financial
5472report, it shall also order the corporation to pay the lot or
5473parcel owner's costs, including reasonable attorney's fees that
5474have been incurred to obtain the order, and otherwise shall
5475enforce the lot or parcel owner's rights under this section.
5476     (3)  Lot or parcel owners shall have exclusive and vested
5477rights for the use of common areas, recreational facilities, and
5478other properties serving the lots or parcels unless they have
5479been dedicated for nonexclusive use by the lot or parcel owners.
5480Portions of governing documents that allow guests of the
5481developer or facility owner the right to use the facility are
5482hereby declared void, as those portions of governing documents
5483violate the rights to exclusive use of the facilities by the lot
5484or parcel owners and their guests.
5485     (4)  This section does not apply to amounts paid to
5486homeowner associations pursuant to chapter 617, chapter 718,
5487chapter 719, chapter 721, or chapter 723, or to amounts paid to
5488local governmental entities, including special districts.
5489     Section 62.  Section 720.401, Florida Statutes, is amended
5490to read:
5491     720.401  Prospective purchasers subject to association
5492membership requirement; disclosure required; covenants;
5493assessments; contract cancellation.--
5494     (1)(a)  A prospective parcel owner in a community must be
5495presented a disclosure summary before executing the contract for
5496sale. The disclosure summary must be in a form substantially
5497similar to the following form:
5498
5499DISCLOSURE SUMMARY
5500FOR
5501(NAME OF COMMUNITY)
5502
5503     1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
5504BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
5505     2.  THE PURCHASER HAS BEEN PROVIDED A COPY OF THE THERE
5506HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS AND THE
5507ASSOCIATION GOVERNING DOCUMENTS RELATIVE TO GOVERNING THE USE
5508AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY. AFFIRM OR DENY
5509RECEIPT OR DOCUMENTS BY CHECKING:
5510YES /box/ or NO /box/
5511     3.  YOU WILL (OR WILL NOT) BE OBLIGATED TO PAY ASSESSMENTS
5512TO THE ASSOCIATION. ASSESSMENTS ARE MAY BE SUBJECT TO PERIODIC
5513CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
5514IN ADDITION, YOU WILL (OR WILL NOT) ALSO BE OBLIGATED TO PAY ANY
5515SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL
5516ASSESSMENTS ARE MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE
5517CURRENT AMOUNT IS $_____ PER _____.
5518     4.  YOU WILL MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS
5519AND AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS TO THE
5520RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
5521ASSESSMENTS AND TAXES ARE SUBJECT TO PERIODIC CHANGE.
5522     5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
5523LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD RESULT IN A
5524LIEN AND JUDICIAL FORECLOSURE ON YOUR PROPERTY.
5525     6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
5526FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
5527OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
5528APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
5529     7.   THE DEVELOPER HAS MAY HAVE THE RIGHT TO AMEND THE
5530RESTRICTIVE COVENANTS WHILE STILL IN CONTROL OF THE HOMEOWNERS'
5531ASSOCIATION WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP
5532OR THE APPROVAL OF THE PARCEL OWNERS.
5533     8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
5534ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASERS
5535PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION
5536GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY.
5537     9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
5538CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
5539PROPERTY IS LOCATED, OR ARE NOT RECORDED IN TALLAHASSEE AND IN
5540THE COUNTY WHERE THE PROPERTY IS LOCATED. A PENALTY SHALL BE
5541IMPOSED UPON THE DEVELOPER, SELLER OR AGENT OF THE SELLER IF A
5542RECORDED COPY OF THE RESTRICTIVE COVENANTS AND THE ASSOCIATION
5543GOVERNING DOCUMENTS ARE NOT PROVIDED BEFORE CONTRACT FOR SALE
5544AND CAN BE OBTAINED FROM THE DEVELOPER.
5545     10.  THE PURCHASERS HAVE BEEN PROVIDED A COPY OF THE
5546RESTRICTIVE COVENANTS AND THE ASSOCIATION GOVERNING DOCUMENTS
5547BEFORE CONTRACT FOR SALE. AFFIRM OR DENY BY CHECKING
5548YES /box/ or NO /box/.
5549
5550DATE:PURCHASER:
5551PURCHASER:
5552
5553Full The disclosure must be supplied by the developer, or by the
5554parcel owner if the sale is by an owner that is not the
5555developer or the agent for the owner. Any contract or agreement
5556for sale shall refer to and incorporate the disclosure summary
5557and shall include, in prominent language, a statement that the
5558potential buyer should not execute the contract or agreement
5559until they have received and read the disclosure summary,
5560recorded restrictive covenants and governing documents of the
5561association, required by this section.
5562     (b)  Each contract entered into for the sale of property
5563with recorded restrictive covenants governed by mandatory
5564homeowners' associations covenants subject to disclosure
5565required by this section must contain in conspicuous type a
5566clause that states:
5567
5568IF THE DISCLOSURE SUMMARY AND FULL DISCLOSURE OF THE RECORDED
5569RESTRICTIVE COVENANTS AND GOVERNING DOCUMENTS OF THE
5570ASSOCIATION, REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAVE
5571HAS NOT BEEN PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE
5572EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY
5573BUYER BY DELIVERING TO SELLER OR SELLER'S AGENT OR
5574REPRESENTATIVE WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL
5575WITHIN 10 3 DAYS AFTER RECEIPT OF THE FULL DISCLOSURE SUMMARY OR
5576PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER
5577OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID
5578THIS CONTRACT SHALL TERMINATE AT CLOSING.
5579     (c)  A certified copy of the publicly recorded governing
5580documents must be provided to any prospective purchaser, any
5581real estate agent, financial institution, title or closing
5582company upon request.
5583     (d)  If the developer or the association willfully and
5584knowingly fails to disclose material facts that negatively
5585affect the value of the parcel purchased by an association
5586member, the individual board members or developer shall be held
5587liable under applicable federal and state civil and criminal
5588statutes.     (e)(c)  If the disclosure summary is not provided to a
5589prospective purchaser before the purchaser executes a contract
5590for the sale of property governed by covenants that are subject
5591to disclosure pursuant to this section, the purchaser may void
5592the contract by delivering to the seller or the seller's agent
5593or representative written notice canceling the contract within 3
5594days after receipt of the disclosure summary or prior to
5595closing, whichever occurs first. This right may not be waived by
5596the purchaser but terminates at closing.
5597     (2)  This section does not apply to any association
5598regulated under chapter 718, chapter 719, chapter 721, or
5599chapter 723 or to a subdivider registered under chapter 498; and
5600also does not apply if disclosure regarding the association is
5601otherwise made in connection with the requirements of chapter
5602718, chapter 719, chapter 721, or chapter 723.
5603     Section 63.  Section 720.501, Florida Statutes, is created
5604to read:
5605     720.501  Powers and Duties of Division of Florida Land
5606Sales, Condominiums, Homeowners' Associations, and Mobile
5607Homes.--
5608     (1)  The Division of Florida Land Sales, Condominiums,
5609Homeowners' Associations, and Mobile Homes of the Department of
5610Business and Professional Regulation, referred to as the
5611"division" in this part, in addition to other powers and duties
5612prescribed by chapter 498, has the power to enforce and ensure
5613compliance with the provisions of this chapter and rules
5614promulgated pursuant hereto relating to the development,
5615construction, sale, lease, ownership, operation, and management
5616of residential property. In performing its duties, the division
5617has the following powers and duties:
5618     (a)  The division may make necessary public or private
5619investigations within or outside this state to determine whether
5620any person has violated this chapter or any rule or order
5621hereunder, to aid in the enforcement of this chapter, or to aid
5622in the adoption of rules or forms hereunder.
5623     (b)  The division may require or permit any person to file
5624a statement in writing, under oath or otherwise, as the division
5625determines, as to the facts and circumstances concerning a
5626matter to be investigated.
5627     (c)  For the purpose of any investigation under this
5628chapter, the division director, or any officer or employee
5629designated by the division director may administer oaths or
5630affirmations, subpoena witnesses and compel their attendance,
5631take evidence, and require the production of any matter which is
5632relevant to the investigation, including the existence,
5633description, nature, custody, condition, and location of any
5634books, documents, or other tangible things and the identity and
5635location of persons having knowledge of relevant facts or any
5636other matter reasonably calculated to lead to the discovery of
5637material evidence. Upon the failure by a person to obey a
5638subpoena or to answer questions propounded by the investigating
5639officer and upon reasonable notice to all persons affected
5640thereby, the division may apply to the circuit court for an
5641order compelling compliance.
5642     (d)  Notwithstanding any remedies available to lot owners
5643and associations, if the division has reasonable cause to
5644believe that a violation of any provision of this chapter or
5645rule promulgated pursuant hereto has occurred, the division may
5646institute enforcement proceedings in its own name against any
5647developer, association, officer, or member of the board of
5648administration, or its assignees or agents, as follows:
5649     1.  The division may permit a person whose conduct or
5650actions may be under investigation to waive formal proceedings
5651and enter into a consent proceeding whereby orders, rules, or
5652letters of censure or warning, whether formal or informal, may
5653be entered against the person.
5654     2.  The division may issue an order requiring the
5655developer, association, officer, or member of the board of
5656administration, or its assignees or agents, to cease and desist
5657from the unlawful practice and take such affirmative action as
5658in the judgment of the division will carry out the purposes of
5659this chapter. Such affirmative action may include, but is not
5660limited to, an order requiring a developer to pay moneys
5661determined to be owed to a homeowners' association.
5662     3.  The division may bring an action in circuit court on
5663behalf of a class of lot owners, lessees, or purchasers for
5664declaratory relief, injunctive relief, or restitution.
5665     4.  The division may impose a civil penalty against a
5666developer or association, or its assignee or agent for any
5667violation of this chapter or a rule promulgated pursuant hereto.
5668The division may impose a civil penalty individually against any
5669officer or board member who willfully and knowingly violates a
5670provision of this chapter, a rule adopted pursuant hereto, or a
5671final order of the division. The term "willfully and knowingly"
5672means that the division informed the officer or board member
5673that his or her action or intended action violates this chapter,
5674a rule adopted under this chapter, or a final order of the
5675division and that the officer or board member refused to comply
5676with the requirements of this chapter, a rule adopted under this
5677chapter, or a final order of the division. The division, prior
5678to initiating formal agency action under chapter 120, shall
5679afford the officer or board member an opportunity to voluntarily
5680comply with this chapter, a rule adopted under this chapter, or
5681a final order of the division. An officer or board member who
5682complies within 10 days is not subject to a civil penalty. A
5683penalty may be imposed on the basis of each day of continuing
5684violation, but in no event shall the penalty for any offense
5685exceed $5,000. By January 1, 2007, the division shall adopt, by
5686rule, penalty guidelines applicable to possible violations or to
5687categories of violations of this chapter or rules adopted by the
5688division. The guidelines must specify a meaningful range of
5689civil penalties for each such violation of the statute and rules
5690and must be based upon the harm caused by the violation, the
5691repetition of the violation, and upon such other factors deemed
5692relevant by the division. For example, the division may consider
5693whether the violations were committed by a developer-controlled
5694or owner-controlled association, the size of the association,
5695and other factors. The guidelines must designate the possible
5696mitigating or aggravating circumstances that justify a departure
5697from the range of penalties provided by the rules. It is the
5698legislative intent that minor violations be distinguished from
5699those which endanger the health, safety, or welfare of residents
5700or other persons and that such guidelines provide reasonable and
5701meaningful notice to the public of likely penalties that may be
5702imposed for prescribed conduct. This subsection does not limit
5703the ability of the division to informally dispose of
5704administrative actions or complaints by stipulation, agreed
5705settlement, or consent order. All amounts collected shall be
5706deposited with the Chief Financial Officer to the credit of the
5707Division of Florida Land Sales, Condominiums, Homeowners'
5708Association, and Mobile Homes Trust Fund. If a developer fails
5709to pay the civil penalty, the division shall thereupon issue an
5710order directing that such developer cease and desist from
5711further operation until such time as the civil penalty is paid,
5712or may pursue enforcement of the penalty in a court of competent
5713jurisdiction. If an association fails to pay the civil penalty,
5714the division shall thereupon pursue enforcement in a court of
5715competent jurisdiction, and the order imposing the civil penalty
5716or the cease and desist order will not become effective until 20
5717days after the date of such order. Any action commenced by the
5718division shall be brought in the county in which the division
5719has its executive offices or in the county where the violation
5720occurred.
5721     (e)  The division may prepare and disseminate a prospectus
5722and other information to assist prospective owners, purchasers,
5723lessees, and developers of residential communities in assessing
5724the rights, privileges, and duties pertaining thereto.
5725     (f)  The division may adopt rules pursuant to ss.120.536(1)
5726and 120.54 to implement and enforce the provisions of this
5727chapter.
5728     (g)  The division shall establish procedures for providing
5729notice to an association when the division considers the
5730issuance of a declaratory statement with respect to the
5731declaration of restrictions or any related document governing in
5732such residential community.
5733     (h)  The division shall furnish each association which pays
5734the fees required by paragraph (2)(a) a copy of this act,
5735subsequent changes to this act on an annual basis, an amended
5736version of this act as it becomes available from the Secretary
5737of State's office and the rules promulgated pursuant thereto on
5738an annual basis.
5739     (i)  The division shall annually provide each association
5740with a summary of declaratory statements and formal legal
5741opinions relating to the operations of residential communities
5742which were rendered by the division during the previous year.
5743     (j)  The division shall provide training programs for
5744residential association board members and lot owners.
5745     (k)  The division shall maintain a toll-free telephone
5746number accessible to lot owners.
5747     (l)  The division shall develop a program to certify both
5748volunteer and paid mediators to provide mediation of disputes.
5749The division shall provide, upon request, a list of such
5750mediators to any association, lot owner, or other participant in
5751arbitration proceedings under s. 720.311 requesting a copy of
5752the list. The division shall include on the list of volunteer
5753mediators only the names of persons who have received at least
575420 hours of training in mediation techniques or who have
5755mediated at least 20 disputes. In order to become initially
5756certified by the division, paid mediators must be certified by
5757the Supreme Court to mediate court cases in either county or
5758circuit courts. However, the division may adopt, by rule,
5759additional factors for the certification of paid mediators,
5760which factors must be related to experience, education, or
5761background. Any person initially certified as a paid mediator by
5762the division must, in order to continue to be certified, comply
5763with the factors or requirements imposed by rules adopted by the
5764division.
5765     (m)  When a complaint is made, the division shall conduct
5766its inquiry with due regard to the interests of the affected
5767parties. Within 30 days after receipt of a complaint, the
5768division shall acknowledge the complaint in writing and notify
5769the complainant whether the complaint is within the jurisdiction
5770of the division and whether the division needs additional
5771information from the complainant. The division shall conduct its
5772investigation and shall take action upon the complaint within 90
5773days after receipt of the original complaint or of timely
5774requested additional information.  However, failure to complete
5775the investigation within 90 days does not prevent the division
5776from continuing the investigation, accepting or considering
5777evidence obtained or received after 90 days, or taking
5778administrative action if reasonable cause exists to believe that
5779a violation of this chapter or a rule of the division has
5780occurred. If an investigation is not completed within the time
5781limits established in this paragraph, the division shall, on a
5782monthly basis, notify the complainant in writing of the status
5783of the investigation When reporting its action to the
5784complainant, the division shall inform the complainant of any
5785right to a hearing pursuant to ss. 120.569 and 120.57.
5786     (2)  Effective January 1, 2008, each homeowners'
5787association that administers more than 10 residential homes
5788shall pay to the division an annual fee in the amount of $4 for
5789each residence in communities administered by the association.
5790If the fee is not paid by March 1, then the association shall be
5791assessed a penalty of 10 percent of the amount due, and the
5792association will not have standing to maintain or defend any
5793action in the courts of this state until the amount due, plus
5794any penalty that is paid. All fees shall be deposited in the
5795Division of Florida Land Sales, Condominiums, Homeowners'
5796Association, and Mobile Homes Trust Fund as provided by law.
5797     Section 64.  Section 720.505, Florida Statutes, is created
5798to read:
5799     720.505  Advisory council; membership functions.--
5800     (1)  There is created the Advisory Council On Mandated
5801Properties. The council shall consist of seven appointed
5802members. Two members shall be appointed by the President of the
5803Senate, two members shall be appointed by the Speaker of the
5804House of Representatives, and three members shall be appointed
5805by the Governor. At least one member that is appointed by the
5806Governor, by the Senate President and by the Speaker of the
5807House shall be a homeowners' rights advocate and parcel owner.
5808Members shall be appointed to 2-year terms; however, one of the
5809persons initially appointed by the Governor, by the President of
5810the Senate, and by the Speaker of the House of Representatives
5811shall be appointed to a 1-year term. A member of the division,
5812appointed by the Secretary, shall serve as an ex-officio
5813nonvoting member. The selection of council members shall be made
5814in a manner that ensures a fair and balanced representation from
5815the service-provider sector and consumer advocates with a
5816substantial public record of endeavors on behalf of homeowners'
5817rights and consumer interests. The council shall be located
5818within the division for administrative purposes. Members of the
5819council shall serve without compensation but are entitled to
5820receive per diem and travel expenses pursuant to s. 112.061
5821while on official business. A vacancy on the Advisory Council
5822shall be filled in the same manner as the original appointment.
5823     (2)  The functions of the advisory council shall be to:
5824     (a)  Receive, from the public, input regarding issues of
5825concern with respect to mandated communities and recommendations
5826for changes in homeowners' association laws. The issues that the
5827council shall consider include, but are not limited to, the
5828rights and responsibilities of the parcel owners in relation to
5829the rights and responsibilities of the association.
5830     (b)  Review, evaluate, and advise the division concerning
5831revisions and adoption of rules affecting homeowners'
5832associations.
5833     (c)  Recommend improvements, if needed, in the education
5834programs offered by the division.
5835     (3)  The council may elect a chair and vice chair and such
5836other officers as it may deem advisable. The council shall meet
5837at the call of its chair, at the request of a majority of its
5838membership, at the request of the division, or at such times as
5839it may prescribe. A majority of the members of the council shall
5840constitute a quorum. Council action may be taken by vote of a
5841majority of the voting members who are present at a meeting
5842where there is a quorum.
5843     Section 65.  Subsection (11) of section 721.05, Florida
5844Statutes, is amended to read:
5845     721.05  Definitions.--As used in this chapter, the term:
5846     (11)  "Division" means the Division of Florida Land Sales,
5847Condominiums, Homeowners' Associations, and Mobile Homes of the
5848Department of Business and Professional Regulation.
5849     Section 66.  Paragraph (d) of subsection (2) of section
5850721.07, Florida Statutes, is amended to read:
5851     721.07  Public offering statement.--Prior to offering any
5852timeshare plan, the developer must submit a filed public
5853offering statement to the division for approval as prescribed by
5854s. 721.03, s. 721.55, or this section. Until the division
5855approves such filing, any contract regarding the sale of that
5856timeshare plan is subject to cancellation by the purchaser
5857pursuant to s. 721.10.
5858     (2)
5859     (d)  A developer shall have the authority to deliver to
5860purchasers any purchaser public offering statement that is not
5861yet approved by the division, provided that the following shall
5862apply:
5863     1.  At the time the developer delivers an unapproved
5864purchaser public offering statement to a purchaser pursuant to
5865this paragraph, the developer shall deliver a fully completed
5866and executed copy of the purchase contract required by s. 721.06
5867that contains the following statement in conspicuous type in
5868substantially the following form which shall replace the
5869statements required by s. 721.06(1)(g):
5870
5871The developer is delivering to you a public offering statement
5872that has been filed with but not yet approved by the Division of
5873Florida Land Sales, Condominiums, Homeowners' Associations, and
5874Mobile Homes. Any revisions to the unapproved public offering
5875statement you have received must be delivered to you, but only
5876if the revisions materially alter or modify the offering in a
5877manner adverse to you. After the division approves the public
5878offering statement, you will receive notice of the approval from
5879the developer and the required revisions, if any.
5880
5881Your statutory right to cancel this transaction without any
5882penalty or obligation expires 10 calendar days after the date
5883you signed your purchase contract or the date on which you
5884receive the last of all documents required to be given to you
5885pursuant to section 721.07(6), Florida Statutes, or 10 calendar
5886days after you receive revisions required to be delivered to
5887you, if any, whichever is later. If you decide to cancel this
5888contract, you must notify the seller in writing of your intent
5889to cancel. Your notice of cancellation shall be effective upon
5890the date sent and shall be sent to   (Name of Seller)   at  
5891(Address of Seller)  . Any attempt to obtain a waiver of your
5892cancellation right is void and of no effect. While you may
5893execute all closing documents in advance, the closing, as
5894evidenced by delivery of the deed or other document, before
5895expiration of your 10-day cancellation period, is prohibited..
5896
5897     2.  After receipt of approval from the division and prior
5898to closing, if any revisions made to the documents contained in
5899the purchaser public offering statement materially alter or
5900modify the offering in a manner adverse to a purchaser, the
5901developer shall send the purchaser such revisions together with
5902a notice containing a statement in conspicuous type in
5903substantially the following form:
5904
5905The unapproved public offering statement previously delivered to
5906you, together with the enclosed revisions, has been approved by
5907the Division of Florida Land Sales, Condominiums, Homeowners'
5908Associations, and Mobile Homes. Accordingly, your cancellation
5909right expires 10 calendar days after you sign your purchase
5910contract or 10 calendar days after you receive these revisions,
5911whichever is later. If you have any questions regarding your
5912cancellation rights, you may contact the division at [insert
5913division's current address].
5914
5915     3.  After receipt of approval from the division and prior
5916to closing, if no revisions have been made to the documents
5917contained in the unapproved purchaser public offering statement,
5918or if such revisions do not materially alter or modify the
5919offering in a manner adverse to a purchaser, the developer shall
5920send the purchaser a notice containing a statement in
5921conspicuous type in substantially the following form:
5922
5923The unapproved public offering statement previously delivered to
5924you has been approved by the Division of Florida Land Sales,
5925Condominiums, Homeowners' Associations, and Mobile Homes.
5926Revisions made to the unapproved public offering statement, if
5927any, are either not required to be delivered to you or are not
5928deemed by the developer, in its opinion, to materially alter or
5929modify the offering in a manner that is adverse to you.
5930Accordingly, your cancellation right expired 10 days after you
5931signed your purchase contract. A complete copy of the approved
5932public offering statement is available through the managing
5933entity for inspection as part of the books and records of the
5934plan. If you have any questions regarding your cancellation
5935rights, you may contact the division at [insert division's
5936current address].
5937     Section 67.  Subsection (8) of section 721.08, Florida
5938Statutes, is amended to read:
5939     721.08  Escrow accounts; nondisturbance instruments;
5940alternate security arrangements; transfer of legal title.--
5941     (8)  An escrow agent holding escrowed funds pursuant to
5942this chapter that have not been claimed for a period of 5 years
5943after the date of deposit shall make at least one reasonable
5944attempt to deliver such unclaimed funds to the purchaser who
5945submitted such funds to escrow. In making such attempt, an
5946escrow agent is entitled to rely on a purchaser's last known
5947address as set forth in the books and records of the escrow
5948agent and is not required to conduct any further search for the
5949purchaser. If an escrow agent's attempt to deliver unclaimed
5950funds to any purchaser is unsuccessful, the escrow agent may
5951deliver such unclaimed funds to the division and the division
5952shall deposit such unclaimed funds in the Division of Florida
5953Land Sales, Condominiums, Homeowners' Associations, and Mobile
5954Homes Trust Fund, 30 days after giving notice in a publication
5955of general circulation in the county in which the timeshare
5956property containing the purchaser's timeshare interest is
5957located. The purchaser may claim the same at any time prior to
5958the delivery of such funds to the division. After delivery of
5959such funds to the division, the purchaser shall have no more
5960rights to the unclaimed funds. The escrow agent shall not be
5961liable for any claims from any party arising out of the escrow
5962agent's delivery of the unclaimed funds to the division pursuant
5963to this section.
5964     Section 68.  Paragraph (e) of subsection (5) of section
5965721.26, Florida Statutes, is amended to read:
5966     721.26  Regulation by division.--The division has the power
5967to enforce and ensure compliance with the provisions of this
5968chapter, except for parts III and IV, using the powers provided
5969in this chapter, as well as the powers prescribed in chapters
5970498, 718, and 719. In performing its duties, the division shall
5971have the following powers and duties:
5972     (5)  Notwithstanding any remedies available to purchasers,
5973if the division has reasonable cause to believe that a violation
5974of this chapter, or of any division rule or order promulgated or
5975issued pursuant to this chapter, has occurred, the division may
5976institute enforcement proceedings in its own name against any
5977regulated party, as such term is defined in this subsection:
5978     (e)1.  The division may impose a penalty against any
5979regulated party for a violation of this chapter or any rule
5980adopted thereunder. A penalty may be imposed on the basis of
5981each day of continuing violation, but in no event may the
5982penalty for any offense exceed $10,000. All accounts collected
5983shall be deposited with the Chief Financial Officer to the
5984credit of the Division of Florida Land Sales, Condominiums,
5985Homeowners' Associations, and Mobile Homes Trust Fund.
5986     2.a.  If a regulated party fails to pay a penalty, the
5987division shall thereupon issue an order directing that such
5988regulated party cease and desist from further operation until
5989such time as the penalty is paid; or the division may pursue
5990enforcement of the penalty in a court of competent jurisdiction.
5991     b.  If an owners' association or managing entity fails to
5992pay a civil penalty, the division may pursue enforcement in a
5993court of competent jurisdiction.
5994     Section 69.  Section 721.28, Florida Statutes, is amended
5995to read:
5996     721.28  Division of Florida Land Sales, Condominiums,
5997Homeowners' Associations, and Mobile Homes Trust Fund.--All
5998funds collected by the division and any amounts paid as fees or
5999penalties under this chapter shall be deposited in the State
6000Treasury to the credit of the Division of Florida Land Sales,
6001Condominiums, Homeowners' Associations, and Mobile Homes Trust
6002Fund created by s. 498.019.
6003     Section 70.  Paragraph (c) of subsection (1) of section
6004721.301, Florida Statutes, is amended to read:
6005     721.301  Florida Timesharing, Vacation Club, and
6006Hospitality Program.--
6007     (1)
6008     (c)  The director may designate funds from the Division of
6009Florida Land Sales, Condominiums, Homeowners' Associations, and
6010Mobile Homes Trust Fund, not to exceed $50,000 annually, to
6011support the projects and proposals undertaken pursuant to
6012paragraph (b). All state trust funds to be expended pursuant to
6013this section must be matched equally with private moneys and
6014shall comprise no more than half of the total moneys expended
6015annually.
6016     Section 71.  Subsection (1) of section 723.003, Florida
6017Statutes, is amended to read:
6018     723.003  Definitions.--As used in this chapter, the
6019following words and terms have the following meanings unless
6020clearly indicated otherwise:
6021     (1)  The term "division" means the Division of Florida Land
6022Sales, Condominiums, Homeowners' Associations, and Mobile Homes
6023of the Department of Business and Professional Regulation.
6024     Section 72.  Paragraph (e) of subsection (5) of section
6025723.006, Florida Statutes, is amended to read:
6026     723.006  Powers and duties of division.--In performing its
6027duties, the division has the following powers and duties:
6028     (5)  Notwithstanding any remedies available to mobile home
6029owners, mobile home park owners, and homeowners' associations,
6030if the division has reasonable cause to believe that a violation
6031of any provision of this chapter or any rule promulgated
6032pursuant hereto has occurred, the division may institute
6033enforcement proceedings in its own name against a developer,
6034mobile home park owner, or homeowners' association, or its
6035assignee or agent, as follows:
6036     (e)1.  The division may impose a civil penalty against a
6037mobile home park owner or homeowners' association, or its
6038assignee or agent, for any violation of this chapter, a properly
6039promulgated park rule or regulation, or a rule or regulation
6040promulgated pursuant hereto. A penalty may be imposed on the
6041basis of each separate violation and, if the violation is a
6042continuing one, for each day of continuing violation, but in no
6043event may the penalty for each separate violation or for each
6044day of continuing violation exceed $5,000. All amounts collected
6045shall be deposited with the Chief Financial Officer to the
6046credit of the Division of Florida Land Sales, Condominiums,
6047Homeowners' Associations, and Mobile Homes Trust Fund.
6048     2.  If a violator fails to pay the civil penalty, the
6049division shall thereupon issue an order directing that such
6050violator cease and desist from further violation until such time
6051as the civil penalty is paid or may pursue enforcement of the
6052penalty in a court of competent jurisdiction. If a homeowners'
6053association fails to pay the civil penalty, the division shall
6054thereupon pursue enforcement in a court of competent
6055jurisdiction, and the order imposing the civil penalty or the
6056cease and desist order shall not become effective until 20 days
6057after the date of such order. Any action commenced by the
6058division shall be brought in the county in which the division
6059has its executive offices or in which the violation occurred.
6060     Section 73.  Section 723.009, Florida Statutes, is amended
6061to read:
6062     723.009  Division of Florida Land Sales, Condominiums,
6063Homeowners' Associations, and Mobile Homes Trust Fund.--All
6064proceeds from the fees, penalties, and fines imposed pursuant to
6065this chapter shall be deposited into the Division of Florida
6066Land Sales, Condominiums, Homeowners' Associations, and Mobile
6067Homes Trust Fund created by s. 498.019. Moneys in this fund, as
6068appropriated by the Legislature pursuant to chapter 216, may be
6069used to defray the expenses incurred by the division in
6070administering the provisions of this chapter.
6071     Section 74.  Paragraph (c) of subsection (2) of section
6072723.0611, Florida Statutes, is amended to read:
6073     723.0611  Florida Mobile Home Relocation Corporation.--
6074     (2)
6075     (c)  The corporation shall, for purposes of s. 768.28, be
6076considered an agency of the state. Agents or employees of the
6077corporation, members of the board of directors of the
6078corporation, or representatives of the Division of Florida Land
6079Sales, Condominiums, Homeowners' Associations, and Mobile Homes
6080shall be considered officers, employees, or agents of the state,
6081and actions against them and the corporation shall be governed
6082by s. 768.28.
6083     Section 75.  Emotional support animals.--
6084     (1)  Every homeowner or renter in this state shall have the
6085right to own a companion animal and to have such animal live
6086with them in their home if such companion animal is deemed
6087helpful to the person's physical or psychological well-being as
6088attested to by at least two qualified health care professionals.
6089     (2)  Any municipal or county code or ordinance, or any
6090purported rule, declaration, by-law or other form of restriction
6091contrary to the right provided in subsection (1) contained in
6092any governing document of any condominium, cooperative, mobile
6093home park, homeowner, or any other common interest ownership
6094community association shall be deemed unconscionable, and thus
6095unenforceable, invalid and of no legal effect.
6096     (3)  An animal does not require specialized training or
6097skill in assisting its owner to be classified as a companion
6098animal pursuant to this section. The animal can be a cat, dog,
6099ferret, bird, gerbil, or any other commonly accepted
6100domesticated animal. However, if such training can be
6101documented, a letter from only one qualified health care
6102professional is required, as per pre-existing federal disability
6103and fair housing laws.
6104     (4)  Qualified health professionals include any physician
6105or advanced registered nurse practitioner who is licensed in
6106this state to prescribe medications for emotional or mental
6107conditions, or any mental health worker, mental health
6108counselor, psychologist, or social worker, who is licensed in
6109this state to practice counseling therapy. The letter must say
6110that the animal is necessary to ameliorate and help with life
6111functions for a condition covered under the Americans with
6112Disabilities Act. The letter does not have to give details of
6113the nature of the unit owner's disorder, in order not to invade
6114the patient's privacy per the Health Insurance Portability and
6115Accountability Act. Where the primary residence of the owner is
6116in another state, the qualified health care professional is
6117defined as a qualified health care professional licensed in
6118their home state.
6119     (5)  If it becomes necessary for an owner or renter in any
6120condominium, cooperative, mobile home park, homeowner or any
6121other common interest ownership association to enforce this
6122section in court against an association which has threatened to
6123limit his or her right to own and reside with a companion animal
6124either orally or in writing, the homeowner shall be entitled to
6125recover his or her reasonable costs and attorney's fees if the
6126homeowner is the prevailing party. This attorney's fee provision
6127is not reciprocal.
6128     Section 76.  Notwithstanding any provision to the contrary
6129contained in a declaration of condominium, condominium bylaws,
6130or other documents, a condominium developer who rents or leases
6131any unsold units in a condominium must pay all monthly
6132maintenance fees on those units to the association as if the
6133units were owned by individual owners.
6134     Section 77.  This act shall take effect July 1, 2007.


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