Amendment
Bill No. CS/HB 1249
Amendment No. 600723
CHAMBER ACTION
Senate House
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1Representative Bogdanoff offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5     Section 1.  Subsection (11) of section 718.111, Florida
6Statutes, is amended to read:
7     718.111  The association.--
8     (11)  INSURANCE.--In order to protect the safety, health,
9and welfare of the people of the State of Florida and to ensure
10consistency in the provision of insurance coverage to
11condominiums and their unit owners, this subsection applies
12paragraphs (a), (b), and (c) are deemed to apply to every
13residential condominium in the state, regardless of the date of
14its declaration of condominium. It is the intent of the
15Legislature to encourage lower or stable insurance premiums for
16associations described in this subsection section.
17     (a)  Adequate hazard insurance, regardless of any
18requirement in the declaration of condominium for coverage by
19the association for full insurable value, replacement cost, or
20similar coverage, shall be based upon the replacement cost of
21the property to be insured as determined by an independent
22insurance appraisal or update of a prior appraisal. The full
23insurable value shall be determined at least once every 36
24months.
25     1.  An association or group of associations may provide
26adequate hazard insurance through a self-insurance fund that
27complies with the requirements of ss. 624.460-624.488.
28     2.  The association may also provide adequate hazard
29insurance coverage individually or for a group of no fewer than
30three communities created and operating under this chapter,
31chapter 719, chapter 720, or chapter 721 by obtaining and
32maintaining for such communities insurance coverage sufficient
33to cover an amount equal to the probable maximum loss for the
34communities for a 250-year windstorm event. Such probable
35maximum loss must be determined through the use of a competent
36model that has been accepted by the Florida Commission on
37Hurricane Loss Projection Methodology. No policy or program
38providing such coverage shall be issued or renewed after July 1,
392008, unless it has been reviewed and approved by the Office of
40Insurance Regulation.  The review and approval shall include
41approval of the policy and related forms pursuant to ss. 627.410
42and 627.411, approval of the rates pursuant to s. 627.062, a
43determination that the loss model approved by the Commission was
44accurately and appropriately applied to the insured structures
45to determine the 250-year probable maximum loss, and a
46determination that complete and  accurate disclosure of all
47material provisions is provided to condominium unit owners prior
48to execution of the agreement by a condominium association.
49     3.  When determining the adequate amount of hazard
50insurance coverage, the association may consider deductibles as
51determined by this subsection.
52     (b)  If an association is a developer-controlled
53association, the association shall exercise its best efforts to
54obtain and maintain insurance as described in paragraph (a).
55Failure to obtain and maintain adequate hazard insurance during
56any period of developer control constitutes a breach of
57fiduciary responsibility by the developer-appointed members of
58the board of directors of the association, unless the members
59can show that despite such failure, they have made their best
60efforts to maintain the required coverage.
61     (c)  Policies may include deductibles as determined by the
62board.
63     1.  The deductibles shall be consistent with industry
64standards and prevailing practice for communities of similar
65size and age, and having similar construction and facilities in
66the locale where the condominium property is situated.
67     2.  The deductibles may be based upon available funds,
68including reserve accounts, or predetermined assessment
69authority at the time the insurance is obtained.
70     3.  The board shall establish the amount of deductibles
71based upon the level of available funds and predetermined
72assessment authority at a meeting of the board. Such meeting
73shall be open to all unit owners in the manner set forth in s.
74718.112(2)(e). The notice of such meeting must state the
75proposed deductible and the available funds and the assessment
76authority relied upon by the board and estimate any potential
77assessment amount against each unit, if any. The meeting
78described in this paragraph may be held in conjunction with a
79meeting to consider the proposed budget or an amendment thereto.
80     (d)  An association controlled by unit owners operating as
81a residential condominium shall use its best efforts to obtain
82and maintain adequate insurance to protect the association, the
83association property, the common elements, and the condominium
84property that is required to be insured by the association
85pursuant to this subsection.
86     (e)  The declaration of condominium as originally recorded,
87or as amended pursuant to procedures provided therein, may
88provide that condominium property consisting of freestanding
89buildings comprised of no more than one building in or on such
90unit need not be insured by the association if the declaration
91requires the unit owner to obtain adequate insurance for the
92condominium property. An association may also obtain and
93maintain liability insurance for directors and officers,
94insurance for the benefit of association employees, and flood
95insurance for common elements, association property, and units.
96     (f)  Every hazard insurance policy issued or renewed on or
97after January 1, 2009, for the purpose of protecting the
98condominium shall provide primary coverage for:
99     1.  All portions of the condominium property as originally
100installed or replacement of like kind and quality, in accordance
101with the original plans and specifications.
102     2.  All alterations or additions made to the condominium
103property or association property pursuant to s. 718.113(2).
104     3.  The coverage shall exclude all personal property within
105the unit or limited common elements, and floor, wall, and
106ceiling coverings, electrical fixtures, appliances, water
107heaters, water filters, built-in cabinets and countertops, and
108window treatments, including curtains, drapes, blinds, hardware,
109and similar window treatment components, or replacements of any
110of the foregoing.
111     (g)  Every hazard insurance policy issued or renewed on or
112after January 1, 2009, to an individual unit owner must contain
113a provision stating that the coverage afforded by such policy is
114excess coverage over the amount recoverable under any other
115policy covering the same property. Such policies must include
116special assessment coverage of no less than $2,000 per
117occurrence. An insurance policy issued to an individual unit
118owner providing such coverage does not provide rights of
119subrogation against the condominium association operating the
120condominium in which such individual's unit is located.
121     1.  All improvements or additions to the condominium
122property that benefit fewer than all unit owners shall be
123insured by the unit owner or owners having the use thereof, or
124may be insured by the association at the cost and expense of the
125unit owners having the use thereof.
126     2.  The association shall require each owner to provide
127evidence of a currently effective policy of hazard and liability
128insurance upon request, but not more than once per year. Upon
129the failure of an owner to provide a certificate of insurance
130issued by an insurer approved to write such insurance in this
131state within 30 days after the date on which a written request
132is delivered, the association may purchase a policy of insurance
133on behalf of an owner. The cost of such a policy, together with
134reconstruction costs undertaken by the association but which are
135the responsibility of the unit owner, may be collected in the
136manner provided for the collection of assessments in s. 718.116.
137     3.  All reconstruction work after a casualty loss shall be
138undertaken by the association except as otherwise authorized in
139this section. A unit owner may undertake reconstruction work on
140portions of the unit with the prior written consent of the board
141of administration. However, such work may be conditioned upon
142the approval of the repair methods, the qualifications of the
143proposed contractor, or the contract that is used for that
144purpose. A unit owner shall obtain all required governmental
145permits and approvals prior to commencing reconstruction.
146     4.  Unit owners are responsible for the cost of
147reconstruction of any portions of the condominium property for
148which the unit owner is required to carry casualty insurance,
149and any such reconstruction work undertaken by the association
150shall be chargeable to the unit owner and enforceable as an
151assessment pursuant to s. 718.116. The association must be an
152additional named insured and loss payee on all casualty
153insurance policies issued to unit owners in the condominium
154operated by the association.
155     5.  A multicondominium association may elect, by a majority
156vote of the collective members of the condominiums operated by
157the association, to operate such condominiums as a single
158condominium for purposes of insurance matters, including, but
159not limited to, the purchase of the hazard insurance required by
160this section and the apportionment of deductibles and damages in
161excess of coverage. The election to aggregate the treatment of
162insurance premiums, deductibles, and excess damages constitutes
163an amendment to the declaration of all condominiums operated by
164the association, and the costs of insurance shall be stated in
165the association budget. The amendments shall be recorded as
166required by s. 718.110.
167     (h)  The association shall maintain insurance or fidelity
168bonding of all persons who control or disburse funds of the
169association. The insurance policy or fidelity bond must cover
170the maximum funds that will be in the custody of the association
171or its management agent at any one time. As used in this
172paragraph, the term "persons who control or disburse funds of
173the association" includes, but is not limited to, those
174individuals authorized to sign checks on behalf of the
175association, and the president, secretary, and treasurer of the
176association. The association shall bear the cost of any such
177bonding.
178     (i)  The association may amend the declaration of
179condominium without regard to any requirement for approval by
180mortgagees of amendments affecting insurance requirements for
181the purpose of conforming the declaration of condominium to the
182coverage requirements of this subsection.
183     (j)  Any portion of the condominium property required to be
184insured by the association against casualty loss pursuant to
185paragraph (f) which is damaged by casualty shall be
186reconstructed, repaired, or replaced as necessary by the
187association as a common expense. All hazard insurance
188deductibles, uninsured losses, and other damages in excess of
189hazard insurance coverage under the hazard insurance policies
190maintained by the association are a common expense of the
191condominium, except that:
192     1.  A unit owner is responsible for the costs of repair or
193replacement of any portion of the condominium property not paid
194by insurance proceeds, if such damage is caused by intentional
195conduct, negligence, or failure to comply with the terms of the
196declaration or the rules of the association by a unit owner, the
197members of his or her family, unit occupants, tenants, guests,
198or invitees, without compromise of the subrogation rights of any
199insurer as set forth in paragraph (g).
200     2.  The provisions of subparagraph 1. regarding the
201financial responsibility of a unit owner for the costs of
202repairing or replacing other portions of the condominium
203property also applies to the costs of repair or replacement of
204personal property of other unit owners or the association, as
205well as other property, whether real or personal, which the unit
206owners are required to insure under paragraph (g).
207     3.  To the extent the cost of repair or reconstruction for
208which the unit owner is responsible under this paragraph is
209reimbursed to the association by insurance proceeds, and, to the
210extent the association has collected the cost of such repair or
211reconstruction from the unit owner, the association shall
212reimburse the unit owner without the waiver of any rights of
213subrogation.
214     4.  The association is not obligated to pay for repair or
215reconstruction or repairs of casualty losses as a common expense
216if the casualty losses were known or should have been known to a
217unit owner and were not reported to the association until after
218the insurance claim of the association for that casualty was
219settled or resolved with finality, or denied on the basis that
220it was untimely filed.
221     (k)  An association may, upon the approval of a majority of
222the total voting interests in the association, opt out of the
223provisions of paragraph (j) for the allocation of repair or
224reconstruction expenses and allocate repair or reconstruction
225expenses in the manner provided in the declaration as originally
226recorded or as amended. Such vote may be approved by the voting
227interests of the association without regard to any mortgagee
228consent requirements.
229     (l)  In a multicondominium association that has not
230consolidated its financial operations under s. 718.111(6), any
231condominium operated by the association may opt out of the
232provisions of paragraph (j) with the approval of a majority of
233the total voting interests in that condominium. Such vote may be
234approved by the voting interests without regard to any mortgagee
235consent requirements.
236     (m)  Any association or condominium voting to opt out of
237the guidelines for repair or reconstruction expenses as
238described in paragraph (j) must record a notice setting forth
239the date of the opt-out vote and the page of the official
240records book on which the declaration is recorded. The decision
241to opt out is effective upon the date of recording of the notice
242in the public records by the association. An association that
243has voted to opt out of paragraph (j) may reverse that decision
244by the same vote required in paragraphs (k) and (l), and notice
245thereof shall be recorded in the official records.
246     (n)  The association is not obligated to pay for any
247reconstruction or repair expenses due to casualty loss to any
248improvements installed by a current or former owner of the unit
249or by the developer if the improvement benefits only the unit
250for which it was installed and is not part of the standard
251improvements installed by the developer on all units as part of
252original construction, whether or not such improvement is
253located within the unit. This paragraph does not relieve any
254party of its obligations regarding recovery due under any
255insurance implemented specifically for any such improvements.
256     (o)  The provisions of this subsection shall not apply to
257timeshare condominium associations.  Insurance for timeshare
258condominium associations shall be maintained pursuant to s.
259721.165.
260Therefore, the Legislature requires a report to be prepared by
261the Office of Insurance Regulation of the Department of
262Financial Services for publication 18 months from the effective
263date of this act, evaluating premium increases or decreases for
264associations, unit owner premium increases or decreases,
265recommended changes to better define common areas, or any other
266information the Office of Insurance Regulation deems
267appropriate.
268     (a)  A unit-owner controlled association operating a
269residential condominium shall use its best efforts to obtain and
270maintain adequate insurance to protect the association, the
271association property, the common elements, and the condominium
272property required to be insured by the association pursuant to
273paragraph (b). If the association is developer controlled, the
274association shall exercise due diligence to obtain and maintain
275such insurance. Failure to obtain and maintain adequate
276insurance during any period of developer control shall
277constitute a breach of fiduciary responsibility by the
278developer-appointed members of the board of directors of the
279association, unless said members can show that despite such
280failure, they have exercised due diligence. The declaration of
281condominium as originally recorded, or amended pursuant to
282procedures provided therein, may require that condominium
283property consisting of freestanding buildings where there is no
284more than one building in or on such unit need not be insured by
285the association if the declaration requires the unit owner to
286obtain adequate insurance for the condominium property. An
287association may also obtain and maintain liability insurance for
288directors and officers, insurance for the benefit of association
289employees, and flood insurance for common elements, association
290property, and units. Adequate insurance, regardless of any
291requirement in the declaration of condominium for coverage by
292the association for "full insurable value," "replacement cost,"
293or the like, may include reasonable deductibles as determined by
294the board based upon available funds or predetermined assessment
295authority at the time that the insurance is obtained.
296     1.  Windstorm insurance coverage for a group of no fewer
297than three communities created and operating under this chapter,
298chapter 719, chapter 720, or chapter 721 may be obtained and
299maintained for the communities if the insurance coverage is
300sufficient to cover an amount equal to the probable maximum loss
301for the communities for a 250-year windstorm event. Such
302probable maximum loss must be determined through the use of a
303competent model that has been accepted by the Florida Commission
304on Hurricane Loss Projection Methodology. Such insurance
305coverage is deemed adequate windstorm insurance for the purposes
306of this section.
307     2.  An association or group of associations may self-insure
308against claims against the association, the association
309property, and the condominium property required to be insured by
310an association, upon compliance with the applicable provisions
311of ss. 624.460-624.488, which shall be considered adequate
312insurance for the purposes of this section. A copy of each
313policy of insurance in effect shall be made available for
314inspection by unit owners at reasonable times.
315     (b)  Every hazard insurance policy issued or renewed on or
316after January 1, 2004, to protect the condominium shall provide
317primary coverage for:
318     1.  All portions of the condominium property located
319outside the units;
320     2.  The condominium property located inside the units as
321such property was initially installed, or replacements thereof
322of like kind and quality and in accordance with the original
323plans and specifications or, if the original plans and
324specifications are not available, as they existed at the time
325the unit was initially conveyed; and
326     3.  All portions of the condominium property for which the
327declaration of condominium requires coverage by the association.
328
329Anything to the contrary notwithstanding, the terms "condominium
330property," "building," "improvements," "insurable improvements,"
331"common elements," "association property," or any other term
332found in the declaration of condominium which defines the scope
333of property or casualty insurance that a condominium association
334must obtain shall exclude all floor, wall, and ceiling
335coverings, electrical fixtures, appliances, air conditioner or
336heating equipment, water heaters, water filters, built-in
337cabinets and countertops, and window treatments, including
338curtains, drapes, blinds, hardware, and similar window treatment
339components, or replacements of any of the foregoing which are
340located within the boundaries of a unit and serve only one unit
341and all air conditioning compressors that service only an
342individual unit, whether or not located within the unit
343boundaries. The foregoing is intended to establish the property
344or casualty insuring responsibilities of the association and
345those of the individual unit owner and do not serve to broaden
346or extend the perils of coverage afforded by any insurance
347contract provided to the individual unit owner. Beginning
348January 1, 2004, the association shall have the authority to
349amend the declaration of condominium, without regard to any
350requirement for mortgagee approval of amendments affecting
351insurance requirements, to conform the declaration of
352condominium to the coverage requirements of this section.
353     (c)  Every hazard insurance policy issued or renewed on or
354after January 1, 2004, to an individual unit owner shall provide
355that the coverage afforded by such policy is excess over the
356amount recoverable under any other policy covering the same
357property. Each insurance policy issued to an individual unit
358owner providing such coverage shall be without rights of
359subrogation against the condominium association that operates
360the condominium in which such unit owner's unit is located. All
361real or personal property located within the boundaries of the
362unit owner's unit which is excluded from the coverage to be
363provided by the association as set forth in paragraph (b) shall
364be insured by the individual unit owner.
365     (d)  The association shall obtain and maintain adequate
366insurance or fidelity bonding of all persons who control or
367disburse funds of the association. The insurance policy or
368fidelity bond must cover the maximum funds that will be in the
369custody of the association or its management agent at any one
370time. As used in this paragraph, the term "persons who control
371or disburse funds of the association" includes, but is not
372limited to, those individuals authorized to sign checks and the
373president, secretary, and treasurer of the association. The
374association shall bear the cost of bonding.
375     Section 2.  Paragraph (a) of subsection (1) of section
376718.115, Florida Statutes, is amended to read:
377     718.115  Common expenses and common surplus.--
378     (1)(a)  Common expenses include the expenses of the
379operation, maintenance, repair, replacement, or protection of
380the common elements and association property, costs of carrying
381out the powers and duties of the association, and any other
382expense, whether or not included in the foregoing, designated as
383common expense by this chapter, the declaration, the documents
384creating the association, or the bylaws. Common expenses also
385include reasonable transportation services, insurance for
386directors and officers, road maintenance and operation expenses,
387in-house communications, and security services, which are
388reasonably related to the general benefit of the unit owners
389even if such expenses do not attach to the common elements or
390property of the condominium. However, such common expenses must
391either have been services or items provided on or after the date
392control of the association is transferred from the developer to
393the unit owners or must be services or items provided for in the
394condominium documents or bylaws. Unless the manner of payment or
395allocation of expenses is otherwise addressed in the declaration
396of condominium, the expenses of any items or services required
397by any federal, state, or local governmental entity to be
398installed, maintained, or supplied to the condominium property
399by the association, including, but not limited to, fire safety
400equipment or water and sewer service where a master meter serves
401the condominium, shall be common expenses whether or not such
402items or services are specifically identified as common expenses
403in the declaration of condominium, articles of incorporation, or
404bylaws of the association.
405     Section 3.  Subsection (8) of section 718.116, Florida
406Statutes, is amended to read:
407     718.116  Assessments; liability; lien and priority;
408interest; collection.--
409     (8)  Within 15 days after receiving a written request
410therefor from a unit owner or his or her designee purchaser, or  
411a unit mortgagee or his or her designee, the association shall
412provide a certificate signed by an officer or agent of the
413association stating all assessments and other moneys owed to the
414association by the unit owner with respect to the condominium
415parcel.
416     (a)  Any person other than the owner who relies upon such
417certificate shall be protected thereby.
418     (b)  A summary proceeding pursuant to s. 51.011 may be
419brought to compel compliance with this subsection, and in any
420such action the prevailing party is entitled to recover
421reasonable attorney's fees.
422     (c)  Notwithstanding any limitation on transfer fees
423contained in s. 718.112(2)(i), the association or its authorized
424agent may charge a reasonable fee for the preparation of the
425certificate. The amount of the fee must be included on the
426certificate.
427     (d)  The authority to charge a fee for the certificate
428shall be established by a written resolution adopted by the
429board or provided by a written management, bookkeeping, or
430maintenance contract and is payable upon the preparation of the
431certificate. If the certificate is requested in conjunction with
432the sale or mortgage of a unit but the closing does not occur
433and no later than 30 days after the closing date for which the
434certificate was sought the preparer receives a written request,
435accompanied by reasonable documentation, that the sale did not
436occur from a payer that is not the unit owner, the fee shall be
437refunded to that payer within 30 days after receipt of the
438request. The refund is the obligation of the unit owner, and the
439association may collect it from that owner in the same manner as
440an assessment as provided in this section.
441     Section 4.  Paragraph (c) of subsection (17) of section
442718.117, Florida Statutes, is amended to read:
443     718.117  Termination of condominium.--
444     (17)  DISTRIBUTION.--
445     (c)  The proceeds from any sale of condominium property or
446association property and any remaining condominium property or
447association property, common surplus, and other assets shall be
448distributed in the following priority:
449     1.  To pay the reasonable termination trustee's fees and
450costs and accounting fees and costs.
451     2.  To lienholders of liens recorded prior to the recording
452of the declaration.
453     3.  To purchase-money lienholders on units to the extent
454necessary to satisfy their liens; however, the distribution may
455not exceed a unit owner's share of the proceeds.
456     4.  To lienholders of liens of the association which have
457been consented to under s. 718.121(1).
458     5.  To creditors of the association, as their interests
459appear.
460     6.  To unit owners, the proceeds of any sale of condominium
461property subject to satisfaction of liens on each unit in their
462order of priority, in shares specified in the plan of
463termination, unless objected to by a unit owner or lienor as
464provided in paragraph (b).
465     7.  To unit owners, the remaining condominium property,
466subject to satisfaction of liens on each unit in their order of
467priority, in shares specified in the plan of termination, unless
468objected to by a unit owner or a lienor as provided in paragraph
469(b).
470     8.  To unit owners, the proceeds of any sale of association
471property, the remaining association property, common surplus,
472and other assets of the association, subject to satisfaction of
473liens on each unit in their order of priority, in shares
474specified in the plan of termination, unless objected to by a
475unit owner or a lienor as provided in paragraph (b).
476     Section 5.  Section 720.30851, Florida Statutes, is created
477to read:
478     720.30851  Estoppel certificates.--Within 15 days after the
479date on which a request for an estoppel certificate is received
480from a parcel owner or mortgagee, or his or her designee, the
481association shall provide a certificate signed by an officer or
482authorized agent of the association stating all assessments and
483other moneys owed to the association by the parcel owner or
484mortgagee with respect to the parcel. An association may charge
485a fee for the preparation of such certificate, and the amount of
486such fee must be stated on the certificate.
487     (1)  Any person other than a parcel owner who relies upon a
488certificate receives the benefits and protection thereof.
489     (2)  A summary proceeding pursuant to s. 51.011 may be
490brought to compel compliance with this section, and the
491prevailing party is entitled to recover reasonable attorney's
492fees.
493     (3)  The authority to charge a fee for a certificate
494required by this section shall be established by written
495resolution adopted by the board or provided by written
496management, bookkeeping, or maintenance contract. The fee is
497payable upon the preparation of the certificate, and, if the
498certificate is requested in conjunction with the sale or
499mortgage of a unit and the closing does not occur, the fee shall
500be refunded promptly upon written notice from the person
501requesting the certificate stating that the sale or mortgage did
502not occur. Any such refund is the obligation of the unit owner
503and is collectible in the same manner as an assessment as
504provided in this section.
505     Section 6.  Paragraphs (d) and (j) of subsection (2) of
506section 20.165, Florida Statutes, are amended to read:
507     20.165  Department of Business and Professional
508Regulation.--There is created a Department of Business and
509Professional Regulation.
510     (2)  The following divisions of the Department of Business
511and Professional Regulation are established:
512     (d)  Division of Florida Land Sales, Condominiums,
513Timeshares, and Mobile Homes.
514     (j)  Division of Technology, Licensure, and Testing.
515     Section 7.  Subsection (2) of section 73.073, Florida
516Statutes, is amended to read:
517     73.073  Eminent domain procedure with respect to
518condominium common elements.--
519     (2)  With respect to the exercise of eminent domain or a
520negotiated sale for the purchase or taking of a portion of the
521common elements of a condominium, the condemning authority shall
522have the responsibility of contacting the condominium
523association and acquiring the most recent rolls indicating the
524names of the unit owners or contacting the appropriate taxing
525authority to obtain the names of the owners of record on the tax
526rolls. Notification shall thereupon be sent by certified mail,
527return receipt requested, to the unit owners of record of the
528condominium units by the condemning authority indicating the
529intent to purchase or take the required property and requesting
530a response from the unit owner. The condemning authority shall
531be responsible for the expense of sending notification pursuant
532to this section. Such notice shall, at a minimum, include:
533     (a)  The name and address of the condemning authority.
534     (b)  A written or visual description of the property.
535     (c)  The public purpose for which the property is needed.
536     (d)  The appraisal value of the property.
537     (e)  A clear, concise statement relating to the unit
538owner's right to object to the taking or appraisal value and the
539procedures and effects of exercising that right.
540     (f)  A clear, concise statement relating to the power of
541the association to convey the property on behalf of the unit
542owners if no objection to the taking or appraisal value is
543raised, and the effects of this alternative on the unit owner.
544
545The Division of Florida Land Sales, Condominiums, Timeshares,
546and Mobile Homes of the Department of Business and Professional
547Regulation may adopt, by rule, a standard form for such notice
548and may require the notice to include any additional relevant
549information.
550     Section 8.  Subsections (2) and (3) of section 190.009,
551Florida Statutes, are amended to read:
552     190.009  Disclosure of public financing.--
553     (2)  The Division of Florida Land Sales, Condominiums, and
554Mobile Homes of the Department of Business and Professional
555Regulation shall ensure that disclosures made by developers
556pursuant to chapter 498 meet the requirements of subsection (1).
557     (2)(3)  The Department of Community Affairs shall keep a
558current list of districts and their disclosures pursuant to this
559act and shall make such studies and reports and take such
560actions as it deems necessary.
561     Section 9.  Paragraph (e) of subsection (6) of section
562192.037, Florida Statutes, is amended to read:
563     192.037  Fee timeshare real property; taxes and
564assessments; escrow.--
565     (6)
566     (e)  On or before May 1 of each year, a statement of
567receipts and disbursements of the escrow account must be filed
568with the Division of Florida Land Sales, Condominiums,
569Timeshares, and Mobile Homes of the Department of Business and
570Professional Regulation, which may enforce this paragraph
571pursuant to s. 721.26. This statement must appropriately show
572the amount of principal and interest in such account.
573     Section 10.  Paragraph (i) of subsection (8) of section
574213.053, Florida Statutes, is amended to read:
575     213.053  Confidentiality and information sharing.--
576     (8)  Notwithstanding any other provision of this section,
577the department may provide:
578     (i)  Information relative to chapters 212 and 326 to the
579Division of Florida Land Sales, Condominiums, Timeshares, and
580Mobile Homes of the Department of Business and Professional
581Regulation in the conduct of its official duties.
582
583Disclosure of information under this subsection shall be
584pursuant to a written agreement between the executive director
585and the agency. Such agencies, governmental or nongovernmental,
586shall be bound by the same requirements of confidentiality as
587the Department of Revenue. Breach of confidentiality is a
588misdemeanor of the first degree, punishable as provided by s.
589775.082 or s. 775.083.
590     Section 11.  Paragraph (d) of subsection (4) of section
591215.20, Florida Statutes, is amended to read:
592     215.20  Certain income and certain trust funds to
593contribute to the General Revenue Fund.--
594     (4)  The income of a revenue nature deposited in the
595following described trust funds, by whatever name designated, is
596that from which the appropriations authorized by subsection (3)
597shall be made:
598     (d)  Within the Department of Business and Professional
599Regulation:
600     1.  The Administrative Trust Fund.
601     2.  The Alcoholic Beverage and Tobacco Trust Fund.
602     3.  The Cigarette Tax Collection Trust Fund.
603     4.  The Division of Florida Land Sales, Condominiums,
604Timeshares, and Mobile Homes Trust Fund.
605     5.  The Hotel and Restaurant Trust Fund, with the exception
606of those fees collected for the purpose of funding of the
607hospitality education program as stated in s. 509.302.
608     6.  The Professional Regulation Trust Fund.
609     7.  The trust funds administered by the Division of Pari-
610mutuel Wagering.
611
612The enumeration of the foregoing moneys or trust funds shall not
613prohibit the applicability thereto of s. 215.24 should the
614Governor determine that for the reasons mentioned in s. 215.24
615the money or trust funds should be exempt herefrom, as it is the
616purpose of this law to exempt income from its force and effect
617when, by the operation of this law, federal matching funds or
618contributions or private grants to any trust fund would be lost
619to the state.
620     Section 12.  Subsection (2) of section 326.002, Florida
621Statutes, is amended to read:
622     326.002  Definitions.--As used in ss. 326.001-326.006, the
623term:
624     (2)  "Division" means the Division of Florida Land Sales,
625Condominiums, Timeshares, and Mobile Homes of the Department of
626Business and Professional Regulation.
627     Section 13.  Paragraph (d) of subsection (2) and subsection
628(3) of section 326.006, Florida Statutes, are amended to read:
629     326.006  Powers and duties of division.--
630     (2)  The division has the power to enforce and ensure
631compliance with the provisions of this chapter and rules adopted
632under this chapter relating to the sale and ownership of yachts
633and ships. In performing its duties, the division has the
634following powers and duties:
635     (d)  Notwithstanding any remedies available to a yacht or
636ship purchaser, if the division has reasonable cause to believe
637that a violation of any provision of this chapter or rule
638adopted under this chapter has occurred, the division may
639institute enforcement proceedings in its own name against any
640broker or salesperson or any of his or her assignees or agents,
641or against any unlicensed person or any of his or her assignees
642or agents, as follows:
643     1.  The division may permit a person whose conduct or
644actions are under investigation to waive formal proceedings and
645enter into a consent proceeding whereby orders, rules, or
646letters of censure or warning, whether formal or informal, may
647be entered against the person.
648     2.  The division may issue an order requiring the broker or
649salesperson or any of his or her assignees or agents, or
650requiring any unlicensed person or any of his or her assignees
651or agents, to cease and desist from the unlawful practice and
652take such affirmative action as in the judgment of the division
653will carry out the purposes of this chapter.
654     3.  The division may bring an action in circuit court on
655behalf of a class of yacht or ship purchasers for declaratory
656relief, injunctive relief, or restitution.
657     4.  The division may impose a civil penalty against a
658broker or salesperson or any of his or her assignees or agents,
659or against an unlicensed person or any of his or her assignees
660or agents, for any violation of this chapter or a rule adopted
661under this chapter. A penalty may be imposed for each day of
662continuing violation, but in no event may the penalty for any
663offense exceed $10,000. All amounts collected must be deposited
664with the Chief Financial Officer to the credit of the Division
665of Florida Land Sales, Condominiums, Timeshares, and Mobile
666Homes Trust Fund. If a broker, salesperson, or unlicensed person
667working for a broker, fails to pay the civil penalty, the
668division shall thereupon issue an order suspending the broker's
669license until such time as the civil penalty is paid or may
670pursue enforcement of the penalty in a court of competent
671jurisdiction. The order imposing the civil penalty or the order
672of suspension may not become effective until 20 days after the
673date of such order. Any action commenced by the division must be
674brought in the county in which the division has its executive
675offices or in the county where the violation occurred.
676     (3)  All fees must be deposited in the Division of Florida
677Land Sales, Condominiums, Timeshares, and Mobile Homes Trust
678Fund as provided by law.
679     Section 14.  Subsection (18) of section 380.05, Florida
680Statutes, is amended to read:
681     380.05  Areas of critical state concern.--
682     (18)  Neither the designation of an area of critical state
683concern nor the adoption of any regulations for such an area
684shall in any way limit or modify the rights of any person to
685complete any development that was has been authorized by
686registration of a subdivision pursuant to former chapter 498 or
687former chapter 478, by recordation pursuant to local subdivision
688plat law, or by a building permit or other authorization to
689commence development on which there has been reliance and a
690change of position, and which registration or recordation was
691accomplished, or which permit or authorization was issued, prior
692to the approval under subsection (6), or the adoption under
693subsection (8), of land development regulations for the area of
694critical state concern. If a developer has by his or her actions
695in reliance on prior regulations obtained vested or other legal
696rights that in law would have prevented a local government from
697changing those regulations in a way adverse to the developer's
698interests, nothing in this chapter authorizes any governmental
699agency to abridge those rights.
700     Section 15.  Subsection (20) of section 380.06, Florida
701Statutes, is amended to read:
702     380.06  Developments of regional impact.--
703     (20)  VESTED RIGHTS.--Nothing in this section shall limit
704or modify the rights of any person to complete any development
705that was has been authorized by registration of a subdivision
706pursuant to former chapter 498, by recordation pursuant to local
707subdivision plat law, or by a building permit or other
708authorization to commence development on which there has been
709reliance and a change of position and which registration or
710recordation was accomplished, or which permit or authorization
711was issued, prior to July 1, 1973. If a developer has, by his or
712her actions in reliance on prior regulations, obtained vested or
713other legal rights that in law would have prevented a local
714government from changing those regulations in a way adverse to
715the developer's interests, nothing in this chapter authorizes
716any governmental agency to abridge those rights.
717     (a)  For the purpose of determining the vesting of rights
718under this subsection, approval pursuant to local subdivision
719plat law, ordinances, or regulations of a subdivision plat by
720formal vote of a county or municipal governmental body having
721jurisdiction after August 1, 1967, and prior to July 1, 1973, is
722sufficient to vest all property rights for the purposes of this
723subsection; and no action in reliance on, or change of position
724concerning, such local governmental approval is required for
725vesting to take place. Anyone claiming vested rights under this
726paragraph must so notify the department in writing by January 1,
7271986. Such notification shall include information adequate to
728document the rights established by this subsection. When such
729notification requirements are met, in order for the vested
730rights authorized pursuant to this paragraph to remain valid
731after June 30, 1990, development of the vested plan must be
732commenced prior to that date upon the property that the state
733land planning agency has determined to have acquired vested
734rights following the notification or in a binding letter of
735interpretation. When the notification requirements have not been
736met, the vested rights authorized by this paragraph shall expire
737June 30, 1986, unless development commenced prior to that date.
738     (b)  For the purpose of this act, the conveyance of, or the
739agreement to convey, property to the county, state, or local
740government as a prerequisite to zoning change approval shall be
741construed as an act of reliance to vest rights as determined
742under this subsection, provided such zoning change is actually
743granted by such government.
744     Section 16.  Paragraph (a) of subsection (4) of section
745380.0651, Florida Statutes, is amended to read:
746     380.0651  Statewide guidelines and standards.--
747     (4)  Two or more developments, represented by their owners
748or developers to be separate developments, shall be aggregated
749and treated as a single development under this chapter when they
750are determined to be part of a unified plan of development and
751are physically proximate to one other.
752     (a)  The criteria of two of the following subparagraphs
753must be met in order for the state land planning agency to
754determine that there is a unified plan of development:
755     1.a.  The same person has retained or shared control of the
756developments;
757     b.  The same person has ownership or a significant legal or
758equitable interest in the developments; or
759     c.  There is common management of the developments
760controlling the form of physical development or disposition of
761parcels of the development.
762     2.  There is a reasonable closeness in time between the
763completion of 80 percent or less of one development and the
764submission to a governmental agency of a master plan or series
765of plans or drawings for the other development which is
766indicative of a common development effort.
767     3.  A master plan or series of plans or drawings exists
768covering the developments sought to be aggregated which have
769been submitted to a local general-purpose government, water
770management district, the Florida Department of Environmental
771Protection, or the Division of Florida Land Sales, Condominiums,
772Timeshares, and Mobile Homes for authorization to commence
773development. The existence or implementation of a utility's
774master utility plan required by the Public Service Commission or
775general-purpose local government or a master drainage plan shall
776not be the sole determinant of the existence of a master plan.
777     4.  The voluntary sharing of infrastructure that is
778indicative of a common development effort or is designated
779specifically to accommodate the developments sought to be
780aggregated, except that which was implemented because it was
781required by a local general-purpose government; water management
782district; the Department of Environmental Protection; the
783Division of Florida Land Sales, Condominiums, Timeshares, and
784Mobile Homes; or the Public Service Commission.
785     5.  There is a common advertising scheme or promotional
786plan in effect for the developments sought to be aggregated.
787     Section 17.  Paragraph (c) of subsection (4) of section
788381.0065, Florida Statutes, is amended to read:
789     381.0065  Onsite sewage treatment and disposal systems;
790regulation.--
791     (4)  PERMITS; INSTALLATION; AND CONDITIONS.--A person may
792not construct, repair, modify, abandon, or operate an onsite
793sewage treatment and disposal system without first obtaining a
794permit approved by the department. The department may issue
795permits to carry out this section, but shall not make the
796issuance of such permits contingent upon prior approval by the
797Department of Environmental Protection, except that the issuance
798of a permit for work seaward of the coastal construction control
799line established under s. 161.053 shall be contingent upon
800receipt of any required coastal construction control line permit
801from the Department of Environmental Protection. A construction
802permit is valid for 18 months from the issuance date and may be
803extended by the department for one 90-day period under rules
804adopted by the department. A repair permit is valid for 90 days
805from the date of issuance. An operating permit must be obtained
806prior to the use of any aerobic treatment unit or if the
807establishment generates commercial waste. Buildings or
808establishments that use an aerobic treatment unit or generate
809commercial waste shall be inspected by the department at least
810annually to assure compliance with the terms of the operating
811permit. The operating permit for a commercial wastewater system
812is valid for 1 year from the date of issuance and must be
813renewed annually. The operating permit for an aerobic treatment
814unit is valid for 2 years from the date of issuance and must be
815renewed every 2 years. If all information pertaining to the
816siting, location, and installation conditions or repair of an
817onsite sewage treatment and disposal system remains the same, a
818construction or repair permit for the onsite sewage treatment
819and disposal system may be transferred to another person, if the
820transferee files, within 60 days after the transfer of
821ownership, an amended application providing all corrected
822information and proof of ownership of the property. There is no
823fee associated with the processing of this supplemental
824information. A person may not contract to construct, modify,
825alter, repair, service, abandon, or maintain any portion of an
826onsite sewage treatment and disposal system without being
827registered under part III of chapter 489. A property owner who
828personally performs construction, maintenance, or repairs to a
829system serving his or her own owner-occupied single-family
830residence is exempt from registration requirements for
831performing such construction, maintenance, or repairs on that
832residence, but is subject to all permitting requirements. A
833municipality or political subdivision of the state may not issue
834a building or plumbing permit for any building that requires the
835use of an onsite sewage treatment and disposal system unless the
836owner or builder has received a construction permit for such
837system from the department. A building or structure may not be
838occupied and a municipality, political subdivision, or any state
839or federal agency may not authorize occupancy until the
840department approves the final installation of the onsite sewage
841treatment and disposal system. A municipality or political
842subdivision of the state may not approve any change in occupancy
843or tenancy of a building that uses an onsite sewage treatment
844and disposal system until the department has reviewed the use of
845the system with the proposed change, approved the change, and
846amended the operating permit.
847     (c)  Notwithstanding the provisions of paragraphs (a) and
848(b), for subdivisions platted of record on or before October 1,
8491991, when a developer or other appropriate entity has
850previously made or makes provisions, including financial
851assurances or other commitments, acceptable to the Department of
852Health, that a central water system will be installed by a
853regulated public utility based on a density formula, private
854potable wells may be used with onsite sewage treatment and
855disposal systems until the agreed-upon densities are reached.
856The department may consider assurances filed with the Department
857of Business and Professional Regulation under chapter 498 in
858determining the adequacy of the financial assurance required by
859this paragraph. In a subdivision regulated by this paragraph,
860the average daily sewage flow may not exceed 2,500 gallons per
861acre per day. This section does not affect the validity of
862existing prior agreements. After October 1, 1991, the exception
863provided under this paragraph is not available to a developer or
864other appropriate entity.
865     Section 18.  Subsections (8) through (12) of section
866450.33, Florida Statutes, are amended to read:
867     450.33  Duties of farm labor contractor.--Every farm labor
868contractor must:
869     (8)  File, within such time as the department may
870prescribe, a set of his or her fingerprints.
871     (8)(9)  Produce evidence to the department that each
872vehicle he or she uses for the transportation of employees
873complies with the requirements and specifications established in
874chapter 316, s. 316.622, or Pub. L. No. 93-518 as amended by
875Pub. L. No. 97-470 meeting Department of Transportation
876requirements or, in lieu thereof, bears a valid inspection
877sticker showing that the vehicle has passed the inspection in
878the state in which the vehicle is registered.
879     (9)(10)  Comply with all applicable statutes, rules, and
880regulations of the United States and of the State of Florida for
881the protection or benefit of labor, including, but not limited
882to, those providing for wages, hours, fair labor standards,
883social security, workers' compensation, unemployment
884compensation, child labor, and transportation.
885     (10)(11)  Maintain accurate daily field records for each
886employee actually paid by the farm labor contractor reflecting
887the hours worked for the farm labor contractor and, if paid by
888unit, the number of units harvested and the amount paid per
889unit.
890     (11)(12)  Clearly display on each vehicle used to transport
891migrant or seasonal farm workers a display sticker issued by the
892department, which states that the vehicle is authorized by the
893department to transport farm workers and the expiration date of
894the authorization.
895     Section 19.  Subsection (10) is added to section 455.203,
896Florida Statutes, to read:
897     455.203  Department; powers and duties.--The department,
898for the boards under its jurisdiction, shall:
899     (10)  Have authority to:
900     (a)  Close and terminate deficient license application
901files 2 years after the board or the department notifies the
902applicant of the deficiency; and
903     (b)  Approve applications for professional licenses that
904meet all statutory and rule requirements for licensure.
905     Section 20.  Subsection (5) of section 455.116, Florida
906Statutes, is amended to read:
907     455.116  Regulation trust funds.--The following trust funds
908shall be placed in the department:
909     (5)  Division of Florida Land Sales, Condominiums,
910Timeshares, and Mobile Homes Trust Fund.
911     Section 21.  Subsection (1) of section 455.217, Florida
912Statutes, is amended to read:
913     455.217  Examinations.--This section shall be read in
914conjunction with the appropriate practice act associated with
915each regulated profession under this chapter.
916     (1)  The Division of Technology, Licensure, and Testing of
917the Department of Business and Professional Regulation shall
918provide, contract, or approve services for the development,
919preparation, administration, scoring, score reporting, and
920evaluation of all examinations. The division shall seek the
921advice of the appropriate board in providing such services.
922     (a)  The department, acting in conjunction with the
923Division of Technology, Licensure, and Testing and the Division
924of Real Estate, as appropriate, shall ensure that examinations
925adequately and reliably measure an applicant's ability to
926practice the profession regulated by the department. After an
927examination developed or approved by the department has been
928administered, the board or department may reject any question
929which does not reliably measure the general areas of competency
930specified in the rules of the board or department, when there is
931no board. The department shall use professional testing services
932for the development, preparation, and evaluation of
933examinations, when such services are available and approved by
934the board.
935     (b)  For each examination developed by the department or
936contracted vendor, to the extent not otherwise specified by
937statute, the board or the department when there is no board,
938shall by rule specify the general areas of competency to be
939covered by the examination, the relative weight to be assigned
940in grading each area tested, the score necessary to achieve a
941passing grade, and the fees, where applicable, to cover the
942actual cost for any purchase, development, and administration of
943the required examination. However, statutory fee caps in each
944practice act shall apply. This subsection does not apply to
945national examinations approved and administered pursuant to
946paragraph (d).
947     (c)  If a practical examination is deemed to be necessary,
948rules shall specify the criteria by which examiners are to be
949selected, the grading criteria to be used by the examiner, the
950relative weight to be assigned in grading each criterion, and
951the score necessary to achieve a passing grade. When a mandatory
952standardization exercise for a practical examination is required
953by law, the board may conduct such exercise. Therefore, board
954members may serve as examiners at a practical examination with
955the consent of the board.
956     (d)  A board, or the department when there is no board, may
957approve by rule the use of any national examination which the
958department has certified as meeting requirements of national
959examinations and generally accepted testing standards pursuant
960to department rules. Providers of examinations, which may be
961either profit or nonprofit entities, seeking certification by
962the department shall pay the actual costs incurred by the
963department in making a determination regarding the
964certification. The department shall use any national examination
965which is available, certified by the department, and approved by
966the board. The name and number of a candidate may be provided to
967a national contractor for the limited purpose of preparing the
968grade tape and information to be returned to the board or
969department or, to the extent otherwise specified by rule, the
970candidate may apply directly to the vendor of the national
971examination. The department may delegate to the board the duty
972to provide and administer the examination. Any national
973examination approved by a board, or the department when there is
974no board, prior to October 1, 1997, is deemed certified under
975this paragraph. Any licensing or certification examination that
976is not developed or administered by the department in-house or
977provided as a national examination shall be competitively bid.
978     (e)  The department shall adopt rules regarding the
979security and monitoring of examinations. In order to maintain
980the security of examinations, the department may employ the
981procedures set forth in s. 455.228 to seek fines and injunctive
982relief against an examinee who violates the provisions of s.
983455.2175 or the rules adopted pursuant to this paragraph. The
984department, or any agent thereof, may, for the purposes of
985investigation, confiscate any written, photographic, or
986recording material or device in the possession of the examinee
987at the examination site which the department deems necessary to
988enforce such provisions or rules.
989     (f)  If the professional board with jurisdiction over an
990examination concurs, the department may, for a fee, share with
991any other state's licensing authority an examination developed
992by or for the department unless prohibited by a contract entered
993into by the department for development or purchase of the
994examination. The department, with the concurrence of the
995appropriate board, shall establish guidelines that ensure
996security of a shared exam and shall require that any other
997state's licensing authority comply with those guidelines. Those
998guidelines shall be approved by the appropriate professional
999board. All fees paid by the user shall be applied to the
1000department's examination and development program for professions
1001regulated by this chapter. All fees paid by the user for
1002professions not regulated by this chapter shall be applied to
1003offset the fees for the development and administration of that
1004profession's examination. If both a written and a practical
1005examination are given, an applicant shall be required to retake
1006only the portion of the examination for which he or she failed
1007to achieve a passing grade, if he or she successfully passes
1008that portion within a reasonable time of his or her passing the
1009other portion.
1010     Section 22.  Subsection (6) is added to section 455.2273,
1011Florida Statutes, to read:
1012     455.2273  Disciplinary guidelines.--
1013     (6)  Notwithstanding s. 455.017, this section applies to
1014disciplinary guidelines adopted by all boards or divisions
1015within the department.
1016     Section 23.  Effective July 1, 2010, paragraph (d) of
1017subsection (1) and paragraph (d) of subsection (2) of section
1018468.841, Florida Statutes, are amended to read:
1019     468.841  Exemptions.--
1020     (1)  The following persons are not required to comply with
1021any provisions of this part relating to mold assessment:
1022     (d)  Persons or business organizations acting within the
1023scope of the respective licenses required under chapter 471,
1024part I of chapter 481, chapter 482, or chapter 489, or part XV
1025of this chapter, are acting on behalf of an insurer under part
1026VI of chapter 626, or are persons in the manufactured housing
1027industry who are licensed under chapter 320, except when any
1028such persons or business organizations hold themselves out for
1029hire to the public as a "certified mold assessor remediator,"
1030"registered mold assessor remediator," "licensed mold assessor
1031remediator," "mold assessor remediator," "professional mold
1032assessor remediator," or any combination thereof stating or
1033implying licensure under this part.
1034     (2)  The following persons are not required to comply with
1035any provisions of this part relating to mold remediation:
1036     (d)  Persons or business organizations that are acting
1037within the scope of the respective licenses required under
1038chapter 471, part I of chapter 481, chapter 482, or chapter 489,
1039or part XV of this chapter, are acting on behalf of an insurer
1040under part VI of chapter 626, or are persons in the manufactured
1041housing industry who are licensed under chapter 320, except when
1042any such persons or business organizations hold themselves out
1043for hire to the public as a "certified mold remediator
1044assessor," "registered mold remediator assessor," "licensed mold
1045remediator assessor," "mold remediator assessor," "professional
1046mold remediator assessor," or any combination thereof stating or
1047implying licensure under this part.
1048     Section 24.  Paragraph (b) of subsection (2) of section
1049475.17, Florida Statutes, is amended to read:
1050     475.17  Qualifications for practice.--
1051     (2)
1052     (b)  A person may not be licensed as a real estate broker
1053unless, in addition to the other requirements of law, the person
1054has held:
1055     1.  An active real estate sales associate's license for at
1056least 24 12 months during the preceding 5 years in the office of
1057one or more real estate brokers licensed in this state or any
1058other state, territory, or jurisdiction of the United States or
1059in any foreign national jurisdiction;
1060     2.  A current and valid real estate sales associate's
1061license for at least 24 12 months during the preceding 5 years
1062in the employ of a governmental agency for a salary and
1063performing the duties authorized in this part for real estate
1064licensees; or
1065     3.  A current and valid real estate broker's license for at
1066least 24 12 months during the preceding 5 years in any other
1067state, territory, or jurisdiction of the United States or in any
1068foreign national jurisdiction.
1069
1070This paragraph does not apply to a person employed as a real
1071estate investigator by the Division of Real Estate, provided the
1072person has been employed as a real estate investigator for at
1073least 24 months. The person must be currently employed as a real
1074estate investigator to sit for the real estate broker's
1075examination and have held a valid and current sales associate's
1076license for at least 12 months.
1077     Section 25.  Subsection (9) of section 475.451, Florida
1078Statutes, is amended to read:
1079     475.451  Schools teaching real estate practice.--
1080     (9)(a)  Each school permitholder of a proprietary real
1081estate school, each chief administrative person of such an
1082institution, or each course sponsor shall deliver to the
1083department, in a format acceptable to the department, a copy of
1084the classroom course roster of courses that require satisfactory
1085completion of an examination no later than 30 days beyond the
1086end of the calendar month in which the course was completed.
1087     (b)  The course roster shall consist of the institution or
1088school name and permit number, if applicable, the instructor's
1089name and permit number, if applicable, course title, beginning
1090and ending dates of the course, number of course hours, course
1091location, if applicable, each student's full name and license
1092number, if applicable, each student's mailing address, and the
1093numerical grade each student achieved. The course roster shall
1094also include the signature of the school permitholder, the chief
1095administrative person, or the course sponsor.
1096     Section 26.  Section 475.455, Florida Statutes, is amended
1097to read:
1098     475.455  Exchange of disciplinary information.--The
1099commission shall inform the Division of Florida Land Sales,
1100Condominiums, Timeshares, and Mobile Homes of the Department of
1101Business and Professional Regulation of any disciplinary action
1102the commission has taken against any of its licensees. The
1103division shall inform the commission of any disciplinary action
1104the division has taken against any broker or sales associate
1105registered with the division.
1106     Section 27.  Subsection (6) of section 489.105, Florida
1107Statutes, is amended to read:
1108     489.105  Definitions.--As used in this part:
1109     (6)  "Contracting" means, except as exempted in this part,
1110engaging in business as a contractor and includes, but is not
1111limited to, performance of any of the acts as set forth in
1112subsection (3) which define types of contractors. The attempted
1113sale of contracting services and the negotiation or bid for a
1114contract on these services also constitutes contracting. If the
1115services offered require licensure or agent qualification, the
1116offering, negotiation for a bid, or attempted sale of these
1117services requires the corresponding licensure. However, the term
1118"contracting" shall not extend to an individual, partnership,
1119corporation, trust, or other legal entity that offers to sell or
1120sells completed residences on property on which the individual
1121or business entity has any legal or equitable interest, or to
1122the individual or business entity that offers to sell or sells
1123manufactured or factory-built buildings that will be completed
1124on site on property on which either party to a contract has any
1125legal or equitable interest, if the services of a qualified
1126contractor certified or registered pursuant to the requirements
1127of this chapter have been or will be retained for the purpose of
1128constructing or completing such residences.
1129     Section 28.  Section 489.511, Florida Statutes, is amended
1130to read:
1131     489.511  Certification; application; examinations;
1132endorsement.--
1133     (1)(a)  Any person who is at least 18 years of age may take
1134the certification examination.
1135     (b)  Any person desiring to be certified as a contractor
1136shall apply to the department in writing and must meet the
1137following criteria: to take the certification examination.
1138     (2)(a)  A person shall be entitled to take the
1139certification examination for the purpose of determining whether
1140he or she is qualified to engage in contracting throughout the
1141state as a contractor if the person:
1142     1.  Is at least 18 years of age;
1143     1.2.  Be Is of good moral character;
1144     2.  Pass the certification examination, achieving a passing
1145grade as established by board rule; and
1146     3.  Meet Meets eligibility requirements according to one of
1147the following criteria:
1148     a.  Has, within the 6 years immediately preceding the
1149filing of the application, at least 3 years' proven management
1150experience in the trade or education equivalent thereto, or a
1151combination thereof, but not more than one-half of such
1152experience may be educational equivalent;
1153     b.  Has, within the 8 years immediately preceding the
1154filing of the application, at least 4 years' experience as a
1155supervisor or contractor in the trade for which he or she is
1156making application;
1157     c.  Has, within the 12 years immediately preceding the
1158filing of the application, at least 6 years of comprehensive
1159training, technical education, or supervisory experience
1160associated with an electrical or alarm system contracting
1161business, or at least 6 years of technical experience in
1162electrical or alarm system work with the Armed Forces or a
1163governmental entity;
1164     d.  Has, within the 12 years immediately preceding the
1165filing of the application, been licensed for 3 years as a
1166professional engineer who is qualified by education, training,
1167or experience to practice electrical engineering; or
1168     e.  Has any combination of qualifications under sub-
1169subparagraphs a.-c. totaling 6 years of experience.
1170     (c)(b)  For purposes of this subsection, "supervisor" means
1171a person having the experience gained while having the general
1172duty of overseeing the technical duties of the trade, provided
1173that such experience is gained by a person who is able to
1174perform the technical duties of the trade without supervision.
1175     (d)(c)  For purposes of this subsection, at least 40
1176percent of the work experience for an alarm system contractor I
1177must be in the types of fire alarm systems typically used in a
1178commercial setting.
1179     (2)(3)  The board may determine by rule the number of times
1180per year the applicant may take the examination and after three
1181unsuccessful attempts may On or after October 1, 1998, every
1182applicant who is qualified shall be allowed to take the
1183examination three times, notwithstanding the number of times the
1184applicant has previously failed the examination. If an applicant
1185fails the examination three times after October 1, 1998, the
1186board shall require the applicant to complete additional
1187college-level or technical education courses in the areas of
1188deficiency, as determined by the board, as a condition of future
1189eligibility to take the examination. The applicant must also
1190submit a new application that meets all certification
1191requirements at the time of its submission and must pay all
1192appropriate fees.
1193     (3)(4)(a)  "Good moral character" means a personal history
1194of honesty, fairness, and respect for the rights of others and
1195for laws of this state and nation.
1196     (b)  The board may determine that an individual applying
1197for certification is ineligible to take the examination for
1198failure to satisfy the requirement of good moral character only
1199if:
1200     1.  There is a substantial connection between the lack of
1201good moral character of the individual and the professional
1202responsibilities of a certified contractor; and
1203     2.  The finding by the board of lack of good moral
1204character is supported by clear and convincing evidence.
1205     (c)  When an individual is found to be unqualified for
1206certification examination because of a lack of good moral
1207character, the board shall furnish such individual a statement
1208containing the findings of the board, a complete record of the
1209evidence upon which the determination was based, and a notice of
1210the rights of the individual to a rehearing and appeal.
1211     (4)(5)  The board shall, by rule, designate those types of
1212specialty electrical or alarm system contractors who may be
1213certified under this part. The limit of the scope of work and
1214responsibility of a certified specialty contractor shall be
1215established by board rule. A certified specialty contractor
1216category exists as an optional statewide licensing category.
1217Qualification for certification in a specialty category created
1218by rule shall be the same as set forth in paragraph (1)(b)
1219(2)(a). The existence of a specialty category created by rule
1220does not itself create any licensing requirement; however,
1221neither does its optional nature remove any licensure
1222requirement established elsewhere in this part.
1223     (5)(6)  The board shall certify as qualified for
1224certification by endorsement any individual applying for
1225certification who:
1226     (a)  Meets the requirements for certification as set forth
1227in this section; has passed a national, regional, state, or
1228United States territorial licensing examination that is
1229substantially equivalent to the examination required by this
1230part; and has satisfied the requirements set forth in s.
1231489.521; or
1232     (b)  Holds a valid license to practice electrical or alarm
1233system contracting issued by another state or territory of the
1234United States, if the criteria for issuance of such license was
1235substantially equivalent to the certification criteria that
1236existed in this state at the time the certificate was issued.
1237     (6)(7)  Upon the issuance of a certificate, any previously
1238issued registered licenses for the classification in which the
1239certification is issued are rendered void.
1240     Section 29.  Paragraph (b) of subsection (1) of section
1241489.515, Florida Statutes, is amended to read:
1242     489.515  Issuance of certificates; registrations.--
1243     (1)
1244     (b)  The board shall certify as qualified for certification
1245any person who satisfies the requirements of s. 489.511, who
1246successfully passes the certification examination administered
1247by the department, achieving a passing grade as established by
1248board rule, and who submits satisfactory evidence that he or she
1249has obtained both workers' compensation insurance or an
1250acceptable exemption certificate issued by the department and
1251public liability and property damage insurance for the health,
1252safety, and welfare of the public in amounts determined by rule
1253of the board, and furnishes evidence of financial
1254responsibility, credit, and business reputation of either
1255himself or herself or the business organization he or she
1256desires to qualify.
1257     Section 30.  Section 494.008, Florida Statutes, is amended
1258to read:
1259     494.008  Mortgages offered by land developers licensed
1260pursuant to the Florida Uniform Land Sales Practices Law;
1261requirements; prohibitions.--No mortgage loan which has a face
1262amount of $35,000 or less and is secured by vacant land
1263registered under the Florida Uniform Land Sales Practices Law,
1264chapter 498, shall be sold to a mortgagee, except a financial
1265institution, by any person unless all of the following
1266requirements are met:
1267     (1)  Each mortgage securing a note or other obligation sold
1268or offered for sale shall be eligible for a recordation as a
1269first mortgage.
1270     (2)  Each mortgage negotiated pursuant to this section must
1271include a mortgagee's title insurance policy or an opinion of
1272title, from an attorney who is licensed to practice law in this
1273state, on each parcel of land which is described in the
1274mortgage. The policy or opinion shall reflect that there are no
1275other mortgages on the property. A notice stating the priority
1276of the mortgage shall be placed on the face of each mortgage in
1277an amount over $35,000 issued pursuant to this section.
1278     (3)  Contracts to purchase a mortgage loan shall contain,
1279immediately above the purchaser's signature line, the statement
1280in 10-point boldfaced type: "This mortgage is secured by vacant
1281land subject to development at a future time." This statement
1282shall also be typed or printed in 10-point type on the face of
1283the note and mortgage sold.
1284     (4)  The most recent assessment for tax purposes made by
1285the county property appraiser of each parcel of land described
1286in the mortgage shall be furnished to each mortgagee.
1287     (5)  The mortgage broker shall record or cause to be
1288recorded all mortgages or other similar documents prior to
1289delivery of the note and mortgage to the mortgagee.
1290     (6)  All funds received by the mortgage broker pursuant to
1291this section shall promptly be deposited in the broker's trust
1292account where they shall remain until the note and mortgage are
1293fully executed and recorded.
1294     (7)  Willful failure to comply with any of the above
1295provisions shall subject the person to the penalties of s.
1296494.05.
1297     Section 31.  Section 498.009, Florida Statutes, is
1298renumbered as section 718.50152, Florida Statutes.
1299     Section 32.  Section 498.011, Florida Statutes, is
1300renumbered as section 718.50153, Florida Statutes, and amended
1301to read:
1302     718.50153 498.011  Payment of per diem, mileage, and other
1303expenses to division employees.--The amount of per diem and
1304mileage and expense money paid to employees shall be as provided
1305in s. 112.061, except that the division shall establish by rule
1306the standards for reimbursement of actual verified expenses
1307incurred in connection with an on-site review inspection or
1308investigation of subdivided lands.
1309     Section 33.  Section 498.013, Florida Statutes, is
1310renumbered as section 718.50154, Florida Statutes.
1311     Section 34.  Section 498.057, Florida Statutes, is
1312renumbered as section 718.50155, Florida Statutes, and amended,
1313to read:
1314     718.50155 498.057  Service of process.--
1315     (1)  In addition to the methods of service provided for in
1316the Florida Rules of Civil Procedure and the Florida Statutes,
1317service may be made and by delivering a copy of the process to
1318the director of the division, which shall be binding upon the
1319defendant or respondent if:
1320     (a)  The division plaintiff, which is acting as the
1321petitioner or plaintiff may be the division, immediately sends a
1322copy of the process and of the pleading by certified mail to the
1323defendant or respondent at his or her last known address;, and
1324     (b)  The division plaintiff files an affidavit of
1325compliance with this section on or before the return date of the
1326process or within the time set by the court.
1327     (2)  If any person, including any nonresident of this
1328state, allegedly engages in conduct prohibited by this chapter,
1329or any rule or order of the division, and has not filed a
1330consent to service of process, and personal jurisdiction over
1331him or her cannot otherwise be obtained in this state, the
1332director shall be authorized to receive service of process in
1333any noncriminal proceeding against that person or his or her
1334successor which grows out of the conduct and which is brought by
1335the division under this chapter or any rule or order of the
1336division. The process shall have the same force and validity as
1337if personally served. Notice shall be given as provided in
1338subsection (1).
1339     Section 35.  Sections 498.001, 498.003, 498.005, 498.007,
1340498.017, 498.021, 498.022, 498.023, 498.024, 498.025, 498.027,
1341498.028, 498.029, 498.031, 498.033, 498.035, 498.037, 498.039,
1342498.041, 498.047, 498.049, 498.051, 498.053, 498.059, 498.061,
1343and 498.063, Florida Statutes, are repealed.
1344     Section 36.  Section 509.512, Florida Statutes, is amended
1345to read:
1346     509.512  Timeshare plan developer and exchange company
1347exemption.--Sections 509.501-509.511 do not apply to a developer
1348of a timeshare plan or an exchange company approved by the
1349Division of Florida Land Sales, Condominiums, Timeshares, and
1350Mobile Homes pursuant to chapter 721, but only to the extent
1351that the developer or exchange company engages in conduct
1352regulated under chapter 721.
1353     Section 37.  Subsection (2) of section 517.301, Florida
1354Statutes, is amended to read:
1355     517.301  Fraudulent transactions; falsification or
1356concealment of facts.--
1357     (2)  For purposes of ss. 517.311 and 517.312 and this
1358section, the term "investment" means any commitment of money or
1359property principally induced by a representation that an
1360economic benefit may be derived from such commitment, except
1361that the term "investment" does not include a commitment of
1362money or property for:
1363     (a)  The purchase of a business opportunity, business
1364enterprise, or real property through a person licensed under
1365chapter 475 or registered under former chapter 498; or
1366     (b)  The purchase of tangible personal property through a
1367person not engaged in telephone solicitation, where said
1368property is offered and sold in accordance with the following
1369conditions:
1370     1.  There are no specific representations or guarantees
1371made by the offeror or seller as to the economic benefit to be
1372derived from the purchase;
1373     2.  The tangible property is delivered to the purchaser
1374within 30 days after sale, except that such 30-day period may be
1375extended by the office if market conditions so warrant; and
1376     3.  The seller has offered the purchaser a full refund
1377policy in writing, exercisable by the purchaser within 10 days
1378of the date of delivery of such tangible personal property,
1379except that the amount of such refund may not in no event shall
1380exceed the bid price in effect at the time the property is
1381returned to the seller. If the applicable sellers' market is
1382closed at the time the property is returned to the seller for a
1383refund, the amount of such refund shall be based on the bid
1384price for such property at the next opening of such market.
1385     Section 38.  Subsection (4) of section 548.0065, Florida
1386Statutes, is amended to read:
1387     548.0065  Amateur matches; sanctioning and supervision;
1388health and safety standards; compliance checks; continuation,
1389suspension, and revocation of sanctioning approval.--
1390     (4)  Any member of the commission or the executive director
1391of the commission may suspend the approval of an amateur
1392sanctioning organization for failure to supervise amateur
1393matches or to enforce the approved health and safety standards
1394required under this chapter, provided that the suspension
1395complies with the procedures for summary suspensions in s.
1396120.60(6). At any amateur boxing, or kickboxing, or mixed
1397martial arts contest, any member of the commission or a
1398representative of the commission may immediately suspend one or
1399more matches in an event whenever it appears that the match or
1400matches violate the health and safety standards established by
1401rule as required by this chapter. A law enforcement officer may
1402assist any member of the commission or a representative of the
1403commission to enforce an order to stop a contest if called upon
1404to do so by a member of the commission or a representative of
1405the commission.
1406     Section 39.  Subsections (2), (3), and (4) of section
1407548.008, Florida Statutes, are amended to read:
1408     548.008  Prohibited competitions.--
1409     (2)  No amateur mixed martial arts match may be held in
1410this state.
1411     (2)(3)  No professional match may be held in this state
1412unless it meets the requirements for holding the match as
1413provided in this chapter and the rules adopted by the
1414commission.
1415     (3)(4)(a)  Any person participating in a match prohibited
1416under this section, knowing the match to be prohibited, commits
1417a misdemeanor of the second degree, punishable as provided in s.
1418775.082 or s. 775.083.
1419     (b)  Any person holding, promoting, or sponsoring a match
1420prohibited under this section commits a felony of the third
1421degree, punishable as provided in s. 775.082, s. 775.083, or s.
1422775.084.
1423     Section 40.  Subsection (1) of section 548.041, Florida
1424Statutes, is amended to read:
1425     548.041  Age, condition, and suspension of participants.--
1426     (1)  A person may shall not be licensed as a participant,
1427and the license of a any participant shall be suspended or
1428revoked, if such person:
1429     (a)  Is under the age of 18;
1430     (b)  Has participated in a match in this state which was
1431not sanctioned by the commission or by a Native American
1432commission properly constituted under federal law; or
1433     (c)  Does not meet certain health and medical examination
1434conditions as required by rule of the commission;.
1435     (d)  Has not competed in a minimum number of amateur boxing
1436events as determined by commission rule prior to licensure; or
1437     (e)  Has not participated in a minimum number of amateur
1438mixed martial arts events as determined by commission rule prior
1439to licensure.
1440     Section 41.  Subsection (1) of section 559.935, Florida
1441Statutes, is amended to read:
1442     559.935  Exemptions.--
1443     (1)  This part does not apply to:
1444     (a)  A bona fide employee of a seller of travel who is
1445engaged solely in the business of her or his employer;
1446     (b)  Any direct common carrier of passengers or property
1447regulated by an agency of the Federal Government or employees of
1448such carrier when engaged solely in the transportation business
1449of the carrier as identified in the carrier's certificate;
1450     (c)  An intrastate common carrier of passengers or property
1451selling only transportation as defined in the applicable state
1452or local registration or certification, or employees of such
1453carrier when engaged solely in the transportation business of
1454the carrier;
1455     (d)  Hotels, motels, or other places of public
1456accommodation selling public accommodations, or employees of
1457such hotels, motels, or other places of public accommodation,
1458when engaged solely in making arrangements for lodging,
1459accommodations, or sightseeing tours within the state, or taking
1460reservations for the traveler with times, dates, locations, and
1461accommodations certain at the time the reservations are made,
1462provided that hotels and motels registered with the Department
1463of Business and Professional Regulation pursuant to chapter 509
1464are excluded from the provisions of this chapter;
1465     (e)  Persons involved solely in the rental, leasing, or
1466sale of residential property;
1467     (f)  Persons involved solely in the rental, leasing, or
1468sale of transportation vehicles;
1469     (g)  Persons who make travel arrangements for themselves;
1470for their employees or agents; for distributors, franchisees, or
1471dealers of the persons' products or services; for entities which
1472are financially related to the persons; or for the employees or
1473agents of the distributor, franchisee, or dealer or financially
1474related entity;
1475     (h)  A developer of a timeshare plan or an exchange company
1476approved by the Division of Florida Land Sales, Condominiums,
1477Timeshares, and Mobile Homes pursuant to chapter 721, but only
1478to the extent that the developer or exchange company engages in
1479conduct regulated under chapter 721; or
1480     (i)  Persons or entities engaged solely in offering diving
1481services, including classes and sales or rentals of equipment,
1482when engaged in making any prearranged travel-related or
1483tourist-related services in conjunction with a primarily dive-
1484related event.
1485     Section 42.  Subsection (17) of section 718.103, Florida
1486Statutes, is amended to read:
1487     718.103  Definitions.--As used in this chapter, the term:
1488     (17)  "Division" means the Division of Florida Land Sales,
1489Condominiums, Timeshares, and Mobile Homes of the Department of
1490Business and Professional Regulation.
1491     Section 43.  Paragraph (c) of subsection (4) of section
1492718.105, Florida Statutes, is amended to read:
1493     718.105  Recording of declaration.--
1494     (4)
1495     (c)  If the sum of money held by the clerk has not been
1496paid to the developer or association as provided in paragraph
1497(b) within by 3 years after the date the declaration was
1498originally recorded, the clerk in his or her discretion may
1499notify, in writing, the registered agent of the association that
1500the sum is still available and the purpose for which it was
1501deposited. If the association does not record the certificate
1502within 90 days after the clerk has given the notice, the clerk
1503may disburse the money to the developer. If the developer cannot
1504be located, the clerk shall disburse the money to the Division
1505of Florida Land Sales, Condominiums, Timeshares, and Mobile
1506Homes for deposit in the Division of Florida Land Sales,
1507Condominiums, Timeshares, and Mobile Homes Trust Fund.
1508     Section 44.  Subsection (4) of section 718.1255, Florida
1509Statutes, is amended to read:
1510     718.1255  Alternative dispute resolution; voluntary
1511mediation; mandatory nonbinding arbitration; legislative
1512findings.--
1513     (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
1514DISPUTES.--The Division of Florida Land Sales, Condominiums,
1515Timeshares, and Mobile Homes of the Department of Business and
1516Professional Regulation shall employ full-time attorneys to act
1517as arbitrators to conduct the arbitration hearings provided by
1518this chapter. The division may also certify attorneys who are
1519not employed by the division to act as arbitrators to conduct
1520the arbitration hearings provided by this section. No person may
1521be employed by the department as a full-time arbitrator unless
1522he or she is a member in good standing of The Florida Bar. The
1523department shall adopt promulgate rules of procedure to govern
1524such arbitration hearings including mediation incident thereto.
1525The decision of an arbitrator shall be final; however, such a
1526decision shall not be deemed final agency action. Nothing in
1527this provision shall be construed to foreclose parties from
1528proceeding in a trial de novo unless the parties have agreed
1529that the arbitration is binding. If such judicial proceedings
1530are initiated, the final decision of the arbitrator shall be
1531admissible in evidence in the trial de novo.
1532     (a)  Prior to the institution of court litigation, a party
1533to a dispute shall petition the division for nonbinding
1534arbitration. The petition must be accompanied by a filing fee in
1535the amount of $50. Filing fees collected under this section must
1536be used to defray the expenses of the alternative dispute
1537resolution program.
1538     (b)  The petition must recite, and have attached thereto,
1539supporting proof that the petitioner gave the respondents:
1540     1.  Advance written notice of the specific nature of the
1541dispute;
1542     2.  A demand for relief, and a reasonable opportunity to
1543comply or to provide the relief; and
1544     3.  Notice of the intention to file an arbitration petition
1545or other legal action in the absence of a resolution of the
1546dispute.
1547
1548Failure to include the allegations or proof of compliance with
1549these prerequisites requires dismissal of the petition without
1550prejudice.
1551     (c)  Upon receipt, the petition shall be promptly reviewed
1552by the division to determine the existence of a dispute and
1553compliance with the requirements of paragraphs (a) and (b). If
1554emergency relief is required and is not available through
1555arbitration, a motion to stay the arbitration may be filed. The
1556motion must be accompanied by a verified petition alleging facts
1557that, if proven, would support entry of a temporary injunction,
1558and if an appropriate motion and supporting papers are filed,
1559the division may abate the arbitration pending a court hearing
1560and disposition of a motion for temporary injunction.
1561     (d)  Upon determination by the division that a dispute
1562exists and that the petition substantially meets the
1563requirements of paragraphs (a) and (b) and any other applicable
1564rules, a copy of the petition shall forthwith be served by the
1565division upon all respondents.
1566     (e)  Either Before or after the filing of the respondents'
1567answer to the petition, any party may request that the
1568arbitrator refer the case to mediation under this section and
1569any rules adopted by the division. Upon receipt of a request for
1570mediation, the division shall promptly contact the parties to
1571determine if there is agreement that mediation would be
1572appropriate. If all parties agree, the dispute must be referred
1573to mediation. Notwithstanding a lack of an agreement by all
1574parties, the arbitrator may refer a dispute to mediation at any
1575time.
1576     (f)  Upon referral of a case to mediation, the parties must
1577select a mutually acceptable mediator. To assist in the
1578selection, the arbitrator shall provide the parties with a list
1579of both volunteer and paid mediators that have been certified by
1580the division under s. 718.501. If the parties are unable to
1581agree on a mediator within the time allowed by the arbitrator,
1582the arbitrator shall appoint a mediator from the list of
1583certified mediators. If a case is referred to mediation, the
1584parties shall attend a mediation conference, as scheduled by the
1585parties and the mediator. If any party fails to attend a duly
1586noticed mediation conference, without the permission or approval
1587of the arbitrator or mediator, the arbitrator must impose
1588sanctions against the party, including the striking of any
1589pleadings filed, the entry of an order of dismissal or default
1590if appropriate, and the award of costs and attorneys' fees
1591incurred by the other parties. Unless otherwise agreed to by the
1592parties or as provided by order of the arbitrator, a party is
1593deemed to have appeared at a mediation conference by the
1594physical presence of the party or its representative having full
1595authority to settle without further consultation, provided that
1596an association may comply by having one or more representatives
1597present with full authority to negotiate a settlement and
1598recommend that the board of administration ratify and approve
1599such a settlement within 5 days from the date of the mediation
1600conference. The parties shall share equally the expense of
1601mediation, unless they agree otherwise.
1602     (g)  The purpose of mediation as provided for by this
1603section is to present the parties with an opportunity to resolve
1604the underlying dispute in good faith, and with a minimum
1605expenditure of time and resources.
1606     (h)  Mediation proceedings must generally be conducted in
1607accordance with the Florida Rules of Civil Procedure, and these
1608proceedings are privileged and confidential to the same extent
1609as court-ordered mediation. Persons who are not parties to the
1610dispute are not allowed to attend the mediation conference
1611without the consent of all parties, with the exception of
1612counsel for the parties and corporate representatives designated
1613to appear for a party. If the mediator declares an impasse after
1614a mediation conference has been held, the arbitration proceeding
1615terminates, unless all parties agree in writing to continue the
1616arbitration proceeding, in which case the arbitrator's decision
1617shall be either binding or nonbinding, as agreed upon by the
1618parties; in the arbitration proceeding, the arbitrator shall not
1619consider any evidence relating to the unsuccessful mediation
1620except in a proceeding to impose sanctions for failure to appear
1621at the mediation conference. If the parties do not agree to
1622continue arbitration, the arbitrator shall enter an order of
1623dismissal, and either party may institute a suit in a court of
1624competent jurisdiction. The parties may seek to recover any
1625costs and attorneys' fees incurred in connection with
1626arbitration and mediation proceedings under this section as part
1627of the costs and fees that may be recovered by the prevailing
1628party in any subsequent litigation.
1629     (i)  Arbitration shall be conducted according to rules
1630adopted promulgated by the division. The filing of a petition
1631for arbitration shall toll the applicable statute of
1632limitations.
1633     (j)  At the request of any party to the arbitration, the
1634such arbitrator shall issue subpoenas for the attendance of
1635witnesses and the production of books, records, documents, and
1636other evidence and any party on whose behalf a subpoena is
1637issued may apply to the court for orders compelling such
1638attendance and production. Subpoenas shall be served and shall
1639be enforceable in the manner provided by the Florida Rules of
1640Civil Procedure. Discovery may, in the discretion of the
1641arbitrator, be permitted in the manner provided by the Florida
1642Rules of Civil Procedure. Rules adopted by the division may
1643authorize any reasonable sanctions except contempt for a
1644violation of the arbitration procedural rules of the division or
1645for the failure of a party to comply with a reasonable nonfinal
1646order issued by an arbitrator which is not under judicial
1647review.
1648     (k)  The arbitration decision shall be presented to the
1649parties in writing. An arbitration decision is final in those
1650disputes in which the parties have agreed to be bound. An
1651arbitration decision is also final if a complaint for a trial de
1652novo is not filed in a court of competent jurisdiction in which
1653the condominium is located within 30 days. The right to file for
1654a trial de novo entitles the parties to file a complaint in the
1655appropriate trial court for a judicial resolution of the
1656dispute. The prevailing party in an arbitration proceeding shall
1657be awarded the costs of the arbitration and reasonable
1658attorney's fees in an amount determined by the arbitrator. Such
1659an award shall include the costs and reasonable attorney's fees
1660incurred in the arbitration proceeding as well as the costs and
1661reasonable attorney's fees incurred in preparing for and
1662attending any scheduled mediation.
1663     (l)  The party who files a complaint for a trial de novo
1664shall be assessed the other party's arbitration costs, court
1665costs, and other reasonable costs, including attorney's fees,
1666investigation expenses, and expenses for expert or other
1667testimony or evidence incurred after the arbitration hearing if
1668the judgment upon the trial de novo is not more favorable than
1669the arbitration decision. If the judgment is more favorable, the
1670party who filed a complaint for trial de novo shall be awarded
1671reasonable court costs and attorney's fees.
1672     (m)  Any party to an arbitration proceeding may enforce an
1673arbitration award by filing a petition in a court of competent
1674jurisdiction in which the condominium is located. A petition may
1675not be granted unless the time for appeal by the filing of a
1676complaint for trial de novo has expired. If a complaint for a
1677trial de novo has been filed, a petition may not be granted with
1678respect to an arbitration award that has been stayed. If the
1679petition for enforcement is granted, the petitioner shall
1680recover reasonable attorney's fees and costs incurred in
1681enforcing the arbitration award. A mediation settlement may also
1682be enforced through the county or circuit court, as applicable,
1683and any costs and fees incurred in the enforcement of a
1684settlement agreement reached at mediation must be awarded to the
1685prevailing party in any enforcement action.
1686     Section 45.  Section 718.501, Florida Statutes, is amended
1687to read:
1688     718.501  Powers and duties of Division of Florida Land
1689Sales, Condominiums, Timeshares, and Mobile Homes.--
1690     (1)  The Division of Florida Land Sales, Condominiums,
1691Timeshares, and Mobile Homes of the Department of Business and
1692Professional Regulation, referred to as the "division" in this
1693part, in addition to other powers and duties prescribed by
1694chapter 498, has the power to enforce and ensure compliance with
1695the provisions of this chapter and rules promulgated pursuant
1696hereto relating to the development, construction, sale, lease,
1697ownership, operation, and management of residential condominium
1698units. In performing its duties, the division has the following
1699powers and duties:
1700     (a)1.  The division may make necessary public or private
1701investigations within or outside this state to determine whether
1702any person has violated this chapter or any rule or order
1703hereunder, to aid in the enforcement of this chapter, or to aid
1704in the adoption of rules or forms hereunder.
1705     2.  The division may submit any official written report,
1706worksheet, or other related paper, or a duly certified copy
1707thereof, compiled, prepared, drafted, or otherwise made by and
1708duly authenticated by a financial examiner or analyst to be
1709admitted as competent evidence in any hearing in which the
1710financial examiner or analyst is available for cross-examination
1711and attests under oath that such documents were prepared as a
1712result of an examination or inspection conducted pursuant to
1713this chapter.
1714     (b)  The division may require or permit any person to file
1715a statement in writing, under oath or otherwise, as the division
1716determines, as to the facts and circumstances concerning a
1717matter to be investigated.
1718     (c)  For the purpose of any investigation under this
1719chapter, the division director or any officer or employee
1720designated by the division director may administer oaths or
1721affirmations, subpoena witnesses and compel their attendance,
1722take evidence, and require the production of any matter which is
1723relevant to the investigation, including the existence,
1724description, nature, custody, condition, and location of any
1725books, documents, or other tangible things and the identity and
1726location of persons having knowledge of relevant facts or any
1727other matter reasonably calculated to lead to the discovery of
1728material evidence. Upon the failure by a person to obey a
1729subpoena or to answer questions propounded by the investigating
1730officer and upon reasonable notice to all persons affected
1731thereby, the division may apply to the circuit court for an
1732order compelling compliance.
1733     (d)  Notwithstanding any remedies available to unit owners
1734and associations, if the division has reasonable cause to
1735believe that a violation of any provision of this chapter or
1736related rule promulgated pursuant hereto has occurred, the
1737division may institute enforcement proceedings in its own name
1738against any developer, association, officer, or member of the
1739board of administration, or its assignees or agents, as follows:
1740     1.  The division may permit a person whose conduct or
1741actions may be under investigation to waive formal proceedings
1742and enter into a consent proceeding whereby orders, rules, or
1743letters of censure or warning, whether formal or informal, may
1744be entered against the person.
1745     2.  The division may issue an order requiring the
1746developer, association, officer, or member of the board of
1747administration, or its assignees or agents, to cease and desist
1748from the unlawful practice and take such affirmative action as
1749in the judgment of the division will carry out the purposes of
1750this chapter. Such affirmative action may include, but is not
1751limited to, an order requiring a developer to pay moneys
1752determined to be owed to a condominium association. If the
1753division finds that a developer, association, officer, or member
1754of the board of administration, or its assignees or agents, is
1755violating or is about to violate any provision of this chapter,
1756any rule adopted or order issued by the division, or any written
1757agreement entered into with the division, and presents an
1758immediate danger to the public requiring an immediate final
1759order, it may issue an emergency cease and desist order reciting
1760with particularity the facts underlying such findings. The
1761emergency cease and desist order is effective for 90 days. If
1762the division begins nonemergency cease and desist proceedings,
1763the emergency cease and desist order remains effective until the
1764conclusion of the proceedings under ss. 120.569 and 120.57.
1765     3.  The division may bring an action in circuit court on
1766behalf of a class of unit owners, lessees, or purchasers for
1767declaratory relief, injunctive relief, or restitution.
1768     4.  The division may petition the court for the appointment
1769of a receiver or conservator. If appointed, the receiver or
1770conservator may take action to implement the court order to
1771ensure the performance of the order and to remedy any breach
1772thereof. In addition to all other means provided by law for the
1773enforcement of an injunction or temporary restraining order, the
1774circuit court may impound or sequester the property of a party
1775defendant, including books, papers, documents, and related
1776records, and allow the examination and use of the property by
1777the division and a court-appointed receiver or conservator.
1778     5.  The division may apply to the circuit court for an
1779order of restitution whereby the defendant in an action brought
1780pursuant to subparagraph 4. shall be ordered to make restitution
1781of those sums shown by the division to have been obtained by the
1782defendant in violation of this chapter. Such restitution shall,
1783at the option of the court, be payable to the conservator or
1784receiver appointed pursuant to subparagraph 4. or directly to
1785the persons whose funds or assets were obtained in violation of
1786this chapter.
1787     6.4.  The division may impose a civil penalty against a
1788developer or association, or its assignee or agent, for any
1789violation of this chapter or a rule adopted under this chapter
1790promulgated pursuant hereto. The division may impose a civil
1791penalty individually against any officer or board member who
1792willfully and knowingly violates a provision of this chapter,
1793adopted a rule adopted pursuant hereto, or a final order of the
1794division. The term "willfully and knowingly" means that the
1795division informed the officer or board member that his or her
1796action or intended action violates this chapter, a rule adopted
1797under this chapter, or a final order of the division and that
1798the officer or board member refused to comply with the
1799requirements of this chapter, a rule adopted under this chapter,
1800or a final order of the division. The division, prior to
1801initiating formal agency action under chapter 120, shall afford
1802the officer or board member an opportunity to voluntarily comply
1803with this chapter, a rule adopted under this chapter, or a final
1804order of the division. An officer or board member who complies
1805within 10 days is not subject to a civil penalty. A penalty may
1806be imposed on the basis of each day of continuing violation, but
1807in no event shall the penalty for any offense exceed $5,000. By
1808January 1, 1998, the division shall adopt, by rule, penalty
1809guidelines applicable to possible violations or to categories of
1810violations of this chapter or rules adopted by the division. The
1811guidelines must specify a meaningful range of civil penalties
1812for each such violation of the statute and rules and must be
1813based upon the harm caused by the violation, the repetition of
1814the violation, and upon such other factors deemed relevant by
1815the division. For example, the division may consider whether the
1816violations were committed by a developer or owner-controlled
1817association, the size of the association, and other factors. The
1818guidelines must designate the possible mitigating or aggravating
1819circumstances that justify a departure from the range of
1820penalties provided by the rules. It is the legislative intent
1821that minor violations be distinguished from those which endanger
1822the health, safety, or welfare of the condominium residents or
1823other persons and that such guidelines provide reasonable and
1824meaningful notice to the public of likely penalties that may be
1825imposed for proscribed conduct. This subsection does not limit
1826the ability of the division to informally dispose of
1827administrative actions or complaints by stipulation, agreed
1828settlement, or consent order. All amounts collected shall be
1829deposited with the Chief Financial Officer to the credit of the
1830Division of Florida Land Sales, Condominiums, Timeshares, and
1831Mobile Homes Trust Fund. If a developer fails to pay the civil
1832penalty, the division shall thereupon issue an order directing
1833that such developer cease and desist from further operation
1834until such time as the civil penalty is paid or may pursue
1835enforcement of the penalty in a court of competent jurisdiction.
1836If an association fails to pay the civil penalty, the division
1837shall thereupon pursue enforcement in a court of competent
1838jurisdiction, and the order imposing the civil penalty or the
1839cease and desist order will not become effective until 20 days
1840after the date of such order. Any action commenced by the
1841division shall be brought in the county in which the division
1842has its executive offices or in the county where the violation
1843occurred.
1844     7.  In addition to subparagraph 6., the division may seek
1845the imposition of a civil penalty through the circuit court for
1846any violation for which the division may issue a notice to show
1847cause under paragraph (q). The civil penalty shall be at least
1848$500 but no more than $5,000 for each violation. The court may
1849also award to the prevailing party court costs and reasonable
1850attorney's fees and, if the division prevails, may also award
1851reasonable costs of investigation.
1852     (e)  The division may is authorized to prepare and
1853disseminate a prospectus and other information to assist
1854prospective owners, purchasers, lessees, and developers of
1855residential condominiums in assessing the rights, privileges,
1856and duties pertaining thereto.
1857     (f)  The division has authority to adopt rules pursuant to
1858ss. 120.536(1) and 120.54 to implement and enforce the
1859provisions of this chapter.
1860     (g)  The division shall establish procedures for providing
1861notice to an association when the division is considering the
1862issuance of a declaratory statement with respect to the
1863declaration of condominium or any related document governing in
1864such condominium community.
1865     (h)  The division shall furnish each association which pays
1866the fees required by paragraph (2)(a) a copy of this act,
1867subsequent changes to this act on an annual basis, an amended
1868version of this act as it becomes available from the Secretary
1869of State's office on a biennial basis, and the rules adopted
1870promulgated pursuant thereto on an annual basis.
1871     (i)  The division shall annually provide each association
1872with a summary of declaratory statements and formal legal
1873opinions relating to the operations of condominiums which were
1874rendered by the division during the previous year.
1875     (j)  The division shall provide training programs for
1876condominium association board members and unit owners.
1877     (k)  The division shall maintain a toll-free telephone
1878number accessible to condominium unit owners.
1879     (l)  The division shall develop a program to certify both
1880volunteer and paid mediators to provide mediation of condominium
1881disputes. The division shall provide, upon request, a list of
1882such mediators to any association, unit owner, or other
1883participant in arbitration proceedings under s. 718.1255
1884requesting a copy of the list. The division shall include on the
1885list of volunteer mediators only the names of persons who have
1886received at least 20 hours of training in mediation techniques
1887or who have mediated at least 20 disputes. In order to become
1888initially certified by the division, paid mediators must be
1889certified by the Supreme Court to mediate court cases in either
1890county or circuit courts. However, the division may adopt, by
1891rule, additional factors for the certification of paid
1892mediators, which factors must be related to experience,
1893education, or background. Any person initially certified as a
1894paid mediator by the division must, in order to continue to be
1895certified, comply with the factors or requirements imposed by
1896rules adopted by the division.
1897     (m)  When a complaint is made, the division shall conduct
1898its inquiry with due regard to the interests of the affected
1899parties. Within 30 days after receipt of a complaint, the
1900division shall acknowledge the complaint in writing and notify
1901the complainant whether the complaint is within the jurisdiction
1902of the division and whether additional information is needed by
1903the division from the complainant. The division shall conduct
1904its investigation and shall, within 90 days after receipt of the
1905original complaint or of timely requested additional
1906information, take action upon the complaint. However, the
1907failure to complete the investigation within 90 days does not
1908prevent the division from continuing the investigation,
1909accepting or considering evidence obtained or received after 90
1910days, or taking administrative action if reasonable cause exists
1911to believe that a violation of this chapter or a rule of the
1912division has occurred. If an investigation is not completed
1913within the time limits established in this paragraph, the
1914division shall, on a monthly basis, notify the complainant in
1915writing of the status of the investigation. When reporting its
1916action to the complainant, the division shall inform the
1917complainant of any right to a hearing pursuant to ss. 120.569
1918and 120.57.
1919     (n)  The division may:
1920     1.  Contract with agencies in this state or other
1921jurisdictions to perform investigative functions; or
1922     2.  Accept grants-in-aid from any source.
1923     (o)  The division shall cooperate with similar agencies in
1924other jurisdictions to establish uniform filing procedures and
1925forms, public offering statements, advertising standards, and
1926rules and common administrative practices.
1927     (p)  The division shall consider notice to a developer to
1928be complete when it is delivered to the developer's address
1929currently on file with the division.
1930     (q)  In addition to its enforcement authority, the division
1931may issue a notice to show cause, which shall provide for a
1932hearing, upon written request, in accordance with chapter 120.
1933     (2)(a)  Effective January 1, 1992, Each condominium
1934association which operates more than two units shall pay to the
1935division an annual fee in the amount of $4 for each residential
1936unit in condominiums operated by the association. If the fee is
1937not paid by March 1, then the association shall be assessed a
1938penalty of 10 percent of the amount due, and the association
1939will not have standing to maintain or defend any action in the
1940courts of this state until the amount due, plus any penalty, is
1941paid.
1942     (b)  All fees shall be deposited in the Division of Florida
1943Land Sales, Condominiums, Timeshares, and Mobile Homes Trust
1944Fund as provided by law.
1945     Section 46.  Subsection (1) of section 718.5011, Florida
1946Statutes, is amended to read:
1947     718.5011  Ombudsman; appointment; administration.--
1948     (1)  There is created an Office of the Condominium
1949Ombudsman, to be located for administrative purposes within the
1950Division of Florida Land Sales, Condominiums, Timeshares, and
1951Mobile Homes. The functions of the office shall be funded by the
1952Division of Florida Land Sales, Condominiums, Timeshares, and
1953Mobile Homes Trust Fund. The ombudsman shall be a bureau chief
1954of the division, and the office shall be set within the division
1955in the same manner as any other bureau is staffed and funded.
1956     Section 47.  Paragraph (a) of subsection (2) of section
1957718.502, Florida Statutes, is amended to read:
1958     718.502  Filing prior to sale or lease.--
1959     (2)(a)  Prior to filing as required by subsection (1), and
1960prior to acquiring an ownership, leasehold, or contractual
1961interest in the land upon which the condominium is to be
1962developed, a developer shall not offer a contract for purchase
1963of a unit or lease of a unit for more than 5 years. However, the
1964developer may accept deposits for reservations upon the approval
1965of a fully executed escrow agreement and reservation agreement
1966form properly filed with the Division of Florida Land Sales,
1967Condominiums, Timeshares, and Mobile Homes. Each filing of a
1968proposed reservation program shall be accompanied by a filing
1969fee of $250. Reservations shall not be taken on a proposed
1970condominium unless the developer has an ownership, leasehold, or
1971contractual interest in the land upon which the condominium is
1972to be developed. The division shall notify the developer within
197320 days of receipt of the reservation filing of any deficiencies
1974contained therein. Such notification shall not preclude the
1975determination of reservation filing deficiencies at a later
1976date, nor shall it relieve the developer of any responsibility
1977under the law. The escrow agreement and the reservation
1978agreement form shall include a statement of the right of the
1979prospective purchaser to an immediate unqualified refund of the
1980reservation deposit moneys upon written request to the escrow
1981agent by the prospective purchaser or the developer.
1982     Section 48.  Section 718.504, Florida Statutes, is amended
1983to read:
1984     718.504  Prospectus or offering circular.--Every developer
1985of a residential condominium which contains more than 20
1986residential units, or which is part of a group of residential
1987condominiums which will be served by property to be used in
1988common by unit owners of more than 20 residential units, shall
1989prepare a prospectus or offering circular and file it with the
1990Division of Florida Land Sales, Condominiums, Timeshares, and
1991Mobile Homes prior to entering into an enforceable contract of
1992purchase and sale of any unit or lease of a unit for more than 5
1993years and shall furnish a copy of the prospectus or offering
1994circular to each buyer. In addition to the prospectus or
1995offering circular, each buyer shall be furnished a separate page
1996entitled "Frequently Asked Questions and Answers," which shall
1997be in accordance with a format approved by the division and a
1998copy of the financial information required by s. 718.111. This
1999page shall, in readable language, inform prospective purchasers
2000regarding their voting rights and unit use restrictions,
2001including restrictions on the leasing of a unit; shall indicate
2002whether and in what amount the unit owners or the association is
2003obligated to pay rent or land use fees for recreational or other
2004commonly used facilities; shall contain a statement identifying
2005that amount of assessment which, pursuant to the budget, would
2006be levied upon each unit type, exclusive of any special
2007assessments, and which shall further identify the basis upon
2008which assessments are levied, whether monthly, quarterly, or
2009otherwise; shall state and identify any court cases in which the
2010association is currently a party of record in which the
2011association may face liability in excess of $100,000; and which
2012shall further state whether membership in a recreational
2013facilities association is mandatory, and if so, shall identify
2014the fees currently charged per unit type. The division shall by
2015rule require such other disclosure as in its judgment will
2016assist prospective purchasers. The prospectus or offering
2017circular may include more than one condominium, although not all
2018such units are being offered for sale as of the date of the
2019prospectus or offering circular. The prospectus or offering
2020circular must contain the following information:
2021     (1)  The front cover or the first page must contain only:
2022     (a)  The name of the condominium.
2023     (b)  The following statements in conspicuous type:
2024     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
2025MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
2026     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
2027NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
2028ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
2029MATERIALS.
2030     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
2031STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
2032PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
2033REPRESENTATIONS.
2034     (2)  Summary: The next page must contain all statements
2035required to be in conspicuous type in the prospectus or offering
2036circular.
2037     (3)  A separate index of the contents and exhibits of the
2038prospectus.
2039     (4)  Beginning on the first page of the text (not including
2040the summary and index), a description of the condominium,
2041including, but not limited to, the following information:
2042     (a)  Its name and location.
2043     (b)  A description of the condominium property, including,
2044without limitation:
2045     1.  The number of buildings, the number of units in each
2046building, the number of bathrooms and bedrooms in each unit, and
2047the total number of units, if the condominium is not a phase
2048condominium, or the maximum number of buildings that may be
2049contained within the condominium, the minimum and maximum
2050numbers of units in each building, the minimum and maximum
2051numbers of bathrooms and bedrooms that may be contained in each
2052unit, and the maximum number of units that may be contained
2053within the condominium, if the condominium is a phase
2054condominium.
2055     2.  The page in the condominium documents where a copy of
2056the plot plan and survey of the condominium is located.
2057     3.  The estimated latest date of completion of
2058constructing, finishing, and equipping. In lieu of a date, the
2059description shall include a statement that the estimated date of
2060completion of the condominium is in the purchase agreement and a
2061reference to the article or paragraph containing that
2062information.
2063     (c)  The maximum number of units that will use facilities
2064in common with the condominium. If the maximum number of units
2065will vary, a description of the basis for variation and the
2066minimum amount of dollars per unit to be spent for additional
2067recreational facilities or enlargement of such facilities. If
2068the addition or enlargement of facilities will result in a
2069material increase of a unit owner's maintenance expense or
2070rental expense, if any, the maximum increase and limitations
2071thereon shall be stated.
2072     (5)(a)  A statement in conspicuous type describing whether
2073the condominium is created and being sold as fee simple
2074interests or as leasehold interests. If the condominium is
2075created or being sold on a leasehold, the location of the lease
2076in the disclosure materials shall be stated.
2077     (b)  If timeshare estates are or may be created with
2078respect to any unit in the condominium, a statement in
2079conspicuous type stating that timeshare estates are created and
2080being sold in units in the condominium.
2081     (6)  A description of the recreational and other commonly
2082used facilities that will be used only by unit owners of the
2083condominium, including, but not limited to, the following:
2084     (a)  Each room and its intended purposes, location,
2085approximate floor area, and capacity in numbers of people.
2086     (b)  Each swimming pool, as to its general location,
2087approximate size and depths, approximate deck size and capacity,
2088and whether heated.
2089     (c)  Additional facilities, as to the number of each
2090facility, its approximate location, approximate size, and
2091approximate capacity.
2092     (d)  A general description of the items of personal
2093property and the approximate number of each item of personal
2094property that the developer is committing to furnish for each
2095room or other facility or, in the alternative, a representation
2096as to the minimum amount of expenditure that will be made to
2097purchase the personal property for the facility.
2098     (e)  The estimated date when each room or other facility
2099will be available for use by the unit owners.
2100     (f)1.  An identification of each room or other facility to
2101be used by unit owners that will not be owned by the unit owners
2102or the association;
2103     2.  A reference to the location in the disclosure materials
2104of the lease or other agreements providing for the use of those
2105facilities; and
2106     3.  A description of the terms of the lease or other
2107agreements, including the length of the term; the rent payable,
2108directly or indirectly, by each unit owner, and the total rent
2109payable to the lessor, stated in monthly and annual amounts for
2110the entire term of the lease; and a description of any option to
2111purchase the property leased under any such lease, including the
2112time the option may be exercised, the purchase price or how it
2113is to be determined, the manner of payment, and whether the
2114option may be exercised for a unit owner's share or only as to
2115the entire leased property.
2116     (g)  A statement as to whether the developer may provide
2117additional facilities not described above; their general
2118locations and types; improvements or changes that may be made;
2119the approximate dollar amount to be expended; and the maximum
2120additional common expense or cost to the individual unit owners
2121that may be charged during the first annual period of operation
2122of the modified or added facilities.
2123
2124Descriptions as to locations, areas, capacities, numbers,
2125volumes, or sizes may be stated as approximations or minimums.
2126     (7)  A description of the recreational and other facilities
2127that will be used in common with other condominiums, community
2128associations, or planned developments which require the payment
2129of the maintenance and expenses of such facilities, either
2130directly or indirectly, by the unit owners. The description
2131shall include, but not be limited to, the following:
2132     (a)  Each building and facility committed to be built.
2133     (b)  Facilities not committed to be built except under
2134certain conditions, and a statement of those conditions or
2135contingencies.
2136     (c)  As to each facility committed to be built, or which
2137will be committed to be built upon the happening of one of the
2138conditions in paragraph (b), a statement of whether it will be
2139owned by the unit owners having the use thereof or by an
2140association or other entity which will be controlled by them, or
2141others, and the location in the exhibits of the lease or other
2142document providing for use of those facilities.
2143     (d)  The year in which each facility will be available for
2144use by the unit owners or, in the alternative, the maximum
2145number of unit owners in the project at the time each of all of
2146the facilities is committed to be completed.
2147     (e)  A general description of the items of personal
2148property, and the approximate number of each item of personal
2149property, that the developer is committing to furnish for each
2150room or other facility or, in the alternative, a representation
2151as to the minimum amount of expenditure that will be made to
2152purchase the personal property for the facility.
2153     (f)  If there are leases, a description thereof, including
2154the length of the term, the rent payable, and a description of
2155any option to purchase.
2156
2157Descriptions shall include location, areas, capacities, numbers,
2158volumes, or sizes and may be stated as approximations or
2159minimums.
2160     (8)  Recreation lease or associated club membership:
2161     (a)  If any recreational facilities or other facilities
2162offered by the developer and available to, or to be used by,
2163unit owners are to be leased or have club membership associated,
2164the following statement in conspicuous type shall be included:
2165THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
2166CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
2167CONDOMINIUM. There shall be a reference to the location in the
2168disclosure materials where the recreation lease or club
2169membership is described in detail.
2170     (b)  If it is mandatory that unit owners pay a fee, rent,
2171dues, or other charges under a recreational facilities lease or
2172club membership for the use of facilities, there shall be in
2173conspicuous type the applicable statement:
2174     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
2175MANDATORY FOR UNIT OWNERS; or
2176     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
2177TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
2178     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
2179COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
2180REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
2181LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
2182     4.  A similar statement of the nature of the organization
2183or the manner in which the use rights are created, and that unit
2184owners are required to pay.
2185
2186Immediately following the applicable statement, the location in
2187the disclosure materials where the development is described in
2188detail shall be stated.
2189     (c)  If the developer, or any other person other than the
2190unit owners and other persons having use rights in the
2191facilities, reserves, or is entitled to receive, any rent, fee,
2192or other payment for the use of the facilities, then there shall
2193be the following statement in conspicuous type: THE UNIT OWNERS
2194OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
2195RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
2196following this statement, the location in the disclosure
2197materials where the rent or land use fees are described in
2198detail shall be stated.
2199     (d)  If, in any recreation format, whether leasehold, club,
2200or other, any person other than the association has the right to
2201a lien on the units to secure the payment of assessments, rent,
2202or other exactions, there shall appear a statement in
2203conspicuous type in substantially the following form:
2204     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2205SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
2206RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
2207PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
2208     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2209SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
2210FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
2211OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE
2212THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
2213
2214Immediately following the applicable statement, the location in
2215the disclosure materials where the lien or lien right is
2216described in detail shall be stated.
2217     (9)  If the developer or any other person has the right to
2218increase or add to the recreational facilities at any time after
2219the establishment of the condominium whose unit owners have use
2220rights therein, without the consent of the unit owners or
2221associations being required, there shall appear a statement in
2222conspicuous type in substantially the following form:
2223RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
2224OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
2225statement, the location in the disclosure materials where such
2226reserved rights are described shall be stated.
2227     (10)  A statement of whether the developer's plan includes
2228a program of leasing units rather than selling them, or leasing
2229units and selling them subject to such leases. If so, there
2230shall be a description of the plan, including the number and
2231identification of the units and the provisions and term of the
2232proposed leases, and a statement in boldfaced type that: THE
2233UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
2234     (11)  The arrangements for management of the association
2235and maintenance and operation of the condominium property and of
2236other property that will serve the unit owners of the
2237condominium property, and a description of the management
2238contract and all other contracts for these purposes having a
2239term in excess of 1 year, including the following:
2240     (a)  The names of contracting parties.
2241     (b)  The term of the contract.
2242     (c)  The nature of the services included.
2243     (d)  The compensation, stated on a monthly and annual
2244basis, and provisions for increases in the compensation.
2245     (e)  A reference to the volumes and pages of the
2246condominium documents and of the exhibits containing copies of
2247such contracts.
2248
2249Copies of all described contracts shall be attached as exhibits.
2250If there is a contract for the management of the condominium
2251property, then a statement in conspicuous type in substantially
2252the following form shall appear, identifying the proposed or
2253existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
2254THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
2255CONTRACT MANAGER). Immediately following this statement, the
2256location in the disclosure materials of the contract for
2257management of the condominium property shall be stated.
2258     (12)  If the developer or any other person or persons other
2259than the unit owners has the right to retain control of the
2260board of administration of the association for a period of time
2261which can exceed 1 year after the closing of the sale of a
2262majority of the units in that condominium to persons other than
2263successors or alternate developers, then a statement in
2264conspicuous type in substantially the following form shall be
2265included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
2266RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
2267HAVE BEEN SOLD. Immediately following this statement, the
2268location in the disclosure materials where this right to control
2269is described in detail shall be stated.
2270     (13)  If there are any restrictions upon the sale,
2271transfer, conveyance, or leasing of a unit, then a statement in
2272conspicuous type in substantially the following form shall be
2273included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
2274CONTROLLED. Immediately following this statement, the location
2275in the disclosure materials where the restriction, limitation,
2276or control on the sale, lease, or transfer of units is described
2277in detail shall be stated.
2278     (14)  If the condominium is part of a phase project, the
2279following information shall be stated:
2280     (a)  A statement in conspicuous type in substantially the
2281following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
2282UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
2283this statement, the location in the disclosure materials where
2284the phasing is described shall be stated.
2285     (b)  A summary of the provisions of the declaration which
2286provide for the phasing.
2287     (c)  A statement as to whether or not residential buildings
2288and units which are added to the condominium may be
2289substantially different from the residential buildings and units
2290originally in the condominium. If the added residential
2291buildings and units may be substantially different, there shall
2292be a general description of the extent to which such added
2293residential buildings and units may differ, and a statement in
2294conspicuous type in substantially the following form shall be
2295included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
2296MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
2297UNITS IN THE CONDOMINIUM. Immediately following this statement,
2298the location in the disclosure materials where the extent to
2299which added residential buildings and units may substantially
2300differ is described shall be stated.
2301     (d)  A statement of the maximum number of buildings
2302containing units, the maximum and minimum numbers of units in
2303each building, the maximum number of units, and the minimum and
2304maximum square footage of the units that may be contained within
2305each parcel of land which may be added to the condominium.
2306     (15)  If a condominium created on or after July 1, 2000, is
2307or may become part of a multicondominium, the following
2308information must be provided:
2309     (a)  A statement in conspicuous type in substantially the
2310following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
2311MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
2312(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
2313this statement, the location in the prospectus or offering
2314circular and its exhibits where the multicondominium aspects of
2315the offering are described must be stated.
2316     (b)  A summary of the provisions in the declaration,
2317articles of incorporation, and bylaws which establish and
2318provide for the operation of the multicondominium, including a
2319statement as to whether unit owners in the condominium will have
2320the right to use recreational or other facilities located or
2321planned to be located in other condominiums operated by the same
2322association, and the manner of sharing the common expenses
2323related to such facilities.
2324     (c)  A statement of the minimum and maximum number of
2325condominiums, and the minimum and maximum number of units in
2326each of those condominiums, which will or may be operated by the
2327association, and the latest date by which the exact number will
2328be finally determined.
2329     (d)  A statement as to whether any of the condominiums in
2330the multicondominium may include units intended to be used for
2331nonresidential purposes and the purpose or purposes permitted
2332for such use.
2333     (e)  A general description of the location and approximate
2334acreage of any land on which any additional condominiums to be
2335operated by the association may be located.
2336     (16)  If the condominium is created by conversion of
2337existing improvements, the following information shall be
2338stated:
2339     (a)  The information required by s. 718.616.
2340     (b)  A caveat that there are no express warranties unless
2341they are stated in writing by the developer.
2342     (17)  A summary of the restrictions, if any, to be imposed
2343on units concerning the use of any of the condominium property,
2344including statements as to whether there are restrictions upon
2345children and pets, and reference to the volumes and pages of the
2346condominium documents where such restrictions are found, or if
2347such restrictions are contained elsewhere, then a copy of the
2348documents containing the restrictions shall be attached as an
2349exhibit.
2350     (18)  If there is any land that is offered by the developer
2351for use by the unit owners and that is neither owned by them nor
2352leased to them, the association, or any entity controlled by
2353unit owners and other persons having the use rights to such
2354land, a statement shall be made as to how such land will serve
2355the condominium. If any part of such land will serve the
2356condominium, the statement shall describe the land and the
2357nature and term of service, and the declaration or other
2358instrument creating such servitude shall be included as an
2359exhibit.
2360     (19)  The manner in which utility and other services,
2361including, but not limited to, sewage and waste disposal, water
2362supply, and storm drainage, will be provided and the person or
2363entity furnishing them.
2364     (20)  An explanation of the manner in which the
2365apportionment of common expenses and ownership of the common
2366elements has been determined.
2367     (21)  An estimated operating budget for the condominium and
2368the association, and a schedule of the unit owner's expenses
2369shall be attached as an exhibit and shall contain the following
2370information:
2371     (a)  The estimated monthly and annual expenses of the
2372condominium and the association that are collected from unit
2373owners by assessments.
2374     (b)  The estimated monthly and annual expenses of each unit
2375owner for a unit, other than common expenses paid by all unit
2376owners, payable by the unit owner to persons or entities other
2377than the association, as well as to the association, including
2378fees assessed pursuant to s. 718.113(1) for maintenance of
2379limited common elements where such costs are shared only by
2380those entitled to use the limited common element, and the total
2381estimated monthly and annual expense. There may be excluded from
2382this estimate expenses which are not provided for or
2383contemplated by the condominium documents, including, but not
2384limited to, the costs of private telephone; maintenance of the
2385interior of condominium units, which is not the obligation of
2386the association; maid or janitorial services privately
2387contracted for by the unit owners; utility bills billed directly
2388to each unit owner for utility services to his or her unit;
2389insurance premiums other than those incurred for policies
2390obtained by the condominium; and similar personal expenses of
2391the unit owner. A unit owner's estimated payments for
2392assessments shall also be stated in the estimated amounts for
2393the times when they will be due.
2394     (c)  The estimated items of expenses of the condominium and
2395the association, except as excluded under paragraph (b),
2396including, but not limited to, the following items, which shall
2397be stated either as an association expense collectible by
2398assessments or as unit owners' expenses payable to persons other
2399than the association:
2400     1.  Expenses for the association and condominium:
2401     a.  Administration of the association.
2402     b.  Management fees.
2403     c.  Maintenance.
2404     d.  Rent for recreational and other commonly used
2405facilities.
2406     e.  Taxes upon association property.
2407     f.  Taxes upon leased areas.
2408     g.  Insurance.
2409     h.  Security provisions.
2410     i.  Other expenses.
2411     j.  Operating capital.
2412     k.  Reserves.
2413     l.  Fees payable to the division.
2414     2.  Expenses for a unit owner:
2415     a.  Rent for the unit, if subject to a lease.
2416     b.  Rent payable by the unit owner directly to the lessor
2417or agent under any recreational lease or lease for the use of
2418commonly used facilities, which use and payment is a mandatory
2419condition of ownership and is not included in the common expense
2420or assessments for common maintenance paid by the unit owners to
2421the association.
2422     (d)  The following statement in conspicuous type: THE
2423BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN
2424ACCORDANCE WITH THE CONDOMINIUM ACT AND IS A GOOD FAITH ESTIMATE
2425ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON
2426FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
2427ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH
2428CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN
2429THE OFFERING.
2430     (e)  Each budget for an association prepared by a developer
2431consistent with this subsection shall be prepared in good faith
2432and shall reflect accurate estimated amounts for the required
2433items in paragraph (c) at the time of the filing of the offering
2434circular with the division, and subsequent increased amounts of
2435any item included in the association's estimated budget that are
2436beyond the control of the developer shall not be considered an
2437amendment that would give rise to rescission rights set forth in
2438s. 718.503(1)(a) or (b), nor shall such increases modify, void,
2439or otherwise affect any guarantee of the developer contained in
2440the offering circular or any purchase contract. It is the intent
2441of this paragraph to clarify existing law.
2442     (f)  The estimated amounts shall be stated for a period of
2443at least 12 months and may distinguish between the period prior
2444to the time unit owners other than the developer elect a
2445majority of the board of administration and the period after
2446that date.
2447     (22)  A schedule of estimated closing expenses to be paid
2448by a buyer or lessee of a unit and a statement of whether title
2449opinion or title insurance policy is available to the buyer and,
2450if so, at whose expense.
2451     (23)  The identity of the developer and the chief operating
2452officer or principal directing the creation and sale of the
2453condominium and a statement of its and his or her experience in
2454this field.
2455     (24)  Copies of the following, to the extent they are
2456applicable, shall be included as exhibits:
2457     (a)  The declaration of condominium, or the proposed
2458declaration if the declaration has not been recorded.
2459     (b)  The articles of incorporation creating the
2460association.
2461     (c)  The bylaws of the association.
2462     (d)  The ground lease or other underlying lease of the
2463condominium.
2464     (e)  The management agreement and all maintenance and other
2465contracts for management of the association and operation of the
2466condominium and facilities used by the unit owners having a
2467service term in excess of 1 year.
2468     (f)  The estimated operating budget for the condominium and
2469the required schedule of unit owners' expenses.
2470     (g)  A copy of the floor plan of the unit and the plot plan
2471showing the location of the residential buildings and the
2472recreation and other common areas.
2473     (h)  The lease of recreational and other facilities that
2474will be used only by unit owners of the subject condominium.
2475     (i)  The lease of facilities used by owners and others.
2476     (j)  The form of unit lease, if the offer is of a
2477leasehold.
2478     (k)  A declaration of servitude of properties serving the
2479condominium but not owned by unit owners or leased to them or
2480the association.
2481     (l)  The statement of condition of the existing building or
2482buildings, if the offering is of units in an operation being
2483converted to condominium ownership.
2484     (m)  The statement of inspection for termite damage and
2485treatment of the existing improvements, if the condominium is a
2486conversion.
2487     (n)  The form of agreement for sale or lease of units.
2488     (o)  A copy of the agreement for escrow of payments made to
2489the developer prior to closing.
2490     (p)  A copy of the documents containing any restrictions on
2491use of the property required by subsection (17).
2492     (25)  Any prospectus or offering circular complying, prior
2493to the effective date of this act, with the provisions of former
2494ss. 711.69 and 711.802 may continue to be used without amendment
2495or may be amended to comply with the provisions of this chapter.
2496     (26)  A brief narrative description of the location and
2497effect of all existing and intended easements located or to be
2498located on the condominium property other than those described
2499in the declaration.
2500     (27)  If the developer is required by state or local
2501authorities to obtain acceptance or approval of any dock or
2502marina facilities intended to serve the condominium, a copy of
2503any such acceptance or approval acquired by the time of filing
2504with the division under s. 718.502(1) or a statement that such
2505acceptance or approval has not been acquired or received.
2506     (28)  Evidence demonstrating that the developer has an
2507ownership, leasehold, or contractual interest in the land upon
2508which the condominium is to be developed.
2509     Section 49.  Section 718.508, Florida Statutes, is amended
2510to read:
2511     718.508  Regulation by Division of Hotels and
2512Restaurants.--In addition to the authority, regulation, or
2513control exercised by the Division of Florida Land Sales,
2514Condominiums, Timeshares, and Mobile Homes pursuant to this act
2515with respect to condominiums, buildings included in a
2516condominium property are shall be subject to the authority,
2517regulation, or control of the Division of Hotels and Restaurants
2518of the Department of Business and Professional Regulation, to
2519the extent provided for in chapter 399.
2520     Section 50.  Section 718.509, Florida Statutes, is amended,
2521and section 498.019, Florida Statutes, is transferred,
2522renumbered as subsections (1) and (2) of that section, and
2523amended to read:
2524     718.509  Division of Florida Land Sales, Condominiums,
2525Timeshares, and Mobile Homes Trust Fund.--All funds collected by
2526the division and any amount paid for a fee or penalty under this
2527chapter shall be deposited in the State Treasury to the credit
2528of the Division of Florida Land Sales, Condominiums, and Mobile
2529Homes Trust Fund created by s. 498.019.
2530     498.019  Division of Florida Land Sales, Condominiums, and
2531Mobile Homes Trust Fund.--
2532     (1)  There is created within the State Treasury the
2533Division of Florida Land Sales, Condominiums, Timeshares, and
2534Mobile Homes Trust Fund to be used for the administration and
2535operation of this chapter and chapters 718, 719, 721, and 723 by
2536the division.
2537     (2)  All moneys collected by the division from fees, fines,
2538or penalties or from costs awarded to the division by a court or
2539administrative final order shall be paid into the Division of
2540Florida Land Sales, Condominiums, Timeshares, and Mobile Homes
2541Trust Fund. The Legislature shall appropriate funds from this
2542trust fund sufficient to carry out the provisions of this
2543chapter and the provisions of law with respect to each category
2544of business covered by the this trust fund. The division shall
2545maintain separate revenue accounts in the trust fund for each of
2546the businesses regulated by the division. The division shall
2547provide for the proportionate allocation among the accounts of
2548expenses incurred by the division in the performance of its
2549duties with respect to each of these businesses. As part of its
2550normal budgetary process, the division shall prepare an annual
2551report of revenue and allocated expenses related to the
2552operation of each of these businesses which may be used to
2553determine fees charged by the division. This subsection shall
2554operate pursuant to the provisions of s. 215.20.
2555     Section 51.  Paragraph (a) of subsection (2) of section
2556718.608, Florida Statutes, is amended to read:
2557     718.608  Notice of intended conversion; time of delivery;
2558content.--
2559     (2)(a)  Each notice of intended conversion shall be dated
2560and in writing. The notice shall contain the following
2561statement, with the phrases of the following statement which
2562appear in upper case printed in conspicuous type:
2563
2564     These apartments are being converted to condominium by  
2565(name of developer)  , the developer.
2566     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
2567YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
2568AGREEMENT AS FOLLOWS:
2569     a.  If you have continuously been a resident of these
2570apartments during the last 180 days and your rental agreement
2571expires during the next 270 days, you may extend your rental
2572agreement for up to 270 days after the date of this notice.
2573     b.  If you have not been a continuous resident of these
2574apartments for the last 180 days and your rental agreement
2575expires during the next 180 days, you may extend your rental
2576agreement for up to 180 days after the date of this notice.
2577     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
2578MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
2579DATE OF THIS NOTICE.
2580     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
2581you may extend your rental agreement for up to 45 days after the
2582date of this notice while you decide whether to extend your
2583rental agreement as explained above. To do so, you must notify
2584the developer in writing. You will then have the full 45 days to
2585decide whether to extend your rental agreement as explained
2586above.
2587     3.  During the extension of your rental agreement you will
2588be charged the same rent that you are now paying.
2589     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
2590OF THE RENTAL AGREEMENT AS FOLLOWS:
2591     a.  If your rental agreement began or was extended or
2592renewed after May 1, 1980, and your rental agreement, including
2593extensions and renewals, has an unexpired term of 180 days or
2594less, you may cancel your rental agreement upon 30 days' written
2595notice and move. Also, upon 30 days' written notice, you may
2596cancel any extension of the rental agreement.
2597     b.  If your rental agreement was not begun or was not
2598extended or renewed after May 1, 1980, you may not cancel the
2599rental agreement without the consent of the developer. If your
2600rental agreement, including extensions and renewals, has an
2601unexpired term of 180 days or less, you may, however, upon 30
2602days' written notice cancel any extension of the rental
2603agreement.
2604     5.  All notices must be given in writing and sent by mail,
2605return receipt requested, or delivered in person to the
2606developer at this address:   (name and address of developer)  .
2607     6.  If you have continuously been a resident of these
2608apartments during the last 180 days:
2609     a.  You have the right to purchase your apartment and will
2610have 45 days to decide whether to purchase. If you do not buy
2611the unit at that price and the unit is later offered at a lower
2612price, you will have the opportunity to buy the unit at the
2613lower price. However, in all events your right to purchase the
2614unit ends when the rental agreement or any extension of the
2615rental agreement ends or when you waive this right in writing.
2616     b.  Within 90 days you will be provided purchase
2617information relating to your apartment, including the price of
2618your unit and the condition of the building. If you do not
2619receive this information within 90 days, your rental agreement
2620and any extension will be extended 1 day for each day over 90
2621days until you are given the purchase information. If you do not
2622want this rental agreement extension, you must notify the
2623developer in writing.
2624     7.  If you have any questions regarding this conversion or
2625the Condominium Act, you may contact the developer or the state
2626agency which regulates condominiums: The Division of Florida
2627Land Sales, Condominiums, Timeshares, and Mobile Homes,  
2628(Tallahassee address and telephone number of division)  .
2629     Section 52.  Subsection (17) of section 719.103, Florida
2630Statutes, is amended to read:
2631     719.103  Definitions.--As used in this chapter:
2632     (17)  "Division" means the Division of Florida Land Sales,
2633Condominiums, Timeshares, and Mobile Homes of the Department of
2634Business and Professional Regulation.
2635     Section 53.  Section 719.1255, Florida Statutes, is amended
2636to read:
2637     719.1255  Alternative resolution of disputes.--The Division
2638of Florida Land Sales, Condominiums, Timeshares, and Mobile
2639Homes of the Department of Business and Professional Regulation
2640shall provide for alternative dispute resolution in accordance
2641with s. 718.1255.
2642     Section 54.  Section 719.501, Florida Statutes, is amended
2643to read:
2644     719.501  Powers and duties of Division of Florida Land
2645Sales, Condominiums, Timeshares, and Mobile Homes.--
2646     (1)  The Division of Florida Land Sales, Condominiums,
2647Timeshares, and Mobile Homes of the Department of Business and
2648Professional Regulation, referred to as the "division" in this
2649part, in addition to other powers and duties prescribed by
2650chapter 718 498, has the power to enforce and ensure compliance
2651with the provisions of this chapter and adopted rules
2652promulgated pursuant hereto relating to the development,
2653construction, sale, lease, ownership, operation, and management
2654of residential cooperative units. In performing its duties, the
2655division shall have the following powers and duties:
2656     (a)  The division may make necessary public or private
2657investigations within or outside this state to determine whether
2658any person has violated this chapter or any rule or order
2659hereunder, to aid in the enforcement of this chapter, or to aid
2660in the adoption of rules or forms hereunder.
2661     (b)  The division may require or permit any person to file
2662a statement in writing, under oath or otherwise, as the division
2663determines, as to the facts and circumstances concerning a
2664matter to be investigated.
2665     (c)  For the purpose of any investigation under this
2666chapter, the division director or any officer or employee
2667designated by the division director may administer oaths or
2668affirmations, subpoena witnesses and compel their attendance,
2669take evidence, and require the production of any matter which is
2670relevant to the investigation, including the existence,
2671description, nature, custody, condition, and location of any
2672books, documents, or other tangible things and the identity and
2673location of persons having knowledge of relevant facts or any
2674other matter reasonably calculated to lead to the discovery of
2675material evidence. Upon failure by a person to obey a subpoena
2676or to answer questions propounded by the investigating officer
2677and upon reasonable notice to all persons affected thereby, the
2678division may apply to the circuit court for an order compelling
2679compliance.
2680     (d)  Notwithstanding any remedies available to unit owners
2681and associations, if the division has reasonable cause to
2682believe that a violation of any provision of this chapter or
2683related rule promulgated pursuant hereto has occurred, the
2684division may institute enforcement proceedings in its own name
2685against a developer, association, officer, or member of the
2686board, or its assignees or agents, as follows:
2687     1.  The division may permit a person whose conduct or
2688actions may be under investigation to waive formal proceedings
2689and enter into a consent proceeding whereby orders, rules, or
2690letters of censure or warning, whether formal or informal, may
2691be entered against the person.
2692     2.  The division may issue an order requiring the
2693developer, association, officer, or member of the board, or its
2694assignees or agents, to cease and desist from the unlawful
2695practice and take such affirmative action as in the judgment of
2696the division will carry out the purposes of this chapter. Such
2697affirmative action may include, but is not limited to, an order
2698requiring a developer to pay moneys determined to be owed to a
2699condominium association.
2700     3.  The division may bring an action in circuit court on
2701behalf of a class of unit owners, lessees, or purchasers for
2702declaratory relief, injunctive relief, or restitution.
2703     4.  The division may impose a civil penalty against a
2704developer or association, or its assignees or agents, for any
2705violation of this chapter or related a rule promulgated pursuant
2706hereto. The division may impose a civil penalty individually
2707against any officer or board member who willfully and knowingly
2708violates a provision of this chapter, a rule adopted pursuant to
2709this chapter, or a final order of the division. The term
2710"willfully and knowingly" means that the division informed the
2711officer or board member that his or her action or intended
2712action violates this chapter, a rule adopted under this chapter,
2713or a final order of the division, and that the officer or board
2714member refused to comply with the requirements of this chapter,
2715a rule adopted under this chapter, or a final order of the
2716division. The division, prior to initiating formal agency action
2717under chapter 120, shall afford the officer or board member an
2718opportunity to voluntarily comply with this chapter, a rule
2719adopted under this chapter, or a final order of the division. An
2720officer or board member who complies within 10 days is not
2721subject to a civil penalty. A penalty may be imposed on the
2722basis of each day of continuing violation, but in no event shall
2723the penalty for any offense exceed $5,000. By January 1, 1998,
2724the division shall adopt, by rule, penalty guidelines applicable
2725to possible violations or to categories of violations of this
2726chapter or rules adopted by the division. The guidelines must
2727specify a meaningful range of civil penalties for each such
2728violation of the statute and rules and must be based upon the
2729harm caused by the violation, the repetition of the violation,
2730and upon such other factors deemed relevant by the division. For
2731example, the division may consider whether the violations were
2732committed by a developer or owner-controlled association, the
2733size of the association, and other factors. The guidelines must
2734designate the possible mitigating or aggravating circumstances
2735that justify a departure from the range of penalties provided by
2736the rules. It is the legislative intent that minor violations be
2737distinguished from those which endanger the health, safety, or
2738welfare of the cooperative residents or other persons and that
2739such guidelines provide reasonable and meaningful notice to the
2740public of likely penalties that may be imposed for proscribed
2741conduct. This subsection does not limit the ability of the
2742division to informally dispose of administrative actions or
2743complaints by stipulation, agreed settlement, or consent order.
2744All amounts collected shall be deposited with the Chief
2745Financial Officer to the credit of the Division of Florida Land
2746Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund. If
2747a developer fails to pay the civil penalty, the division shall
2748thereupon issue an order directing that such developer cease and
2749desist from further operation until such time as the civil
2750penalty is paid or may pursue enforcement of the penalty in a
2751court of competent jurisdiction. If an association fails to pay
2752the civil penalty, the division shall thereupon pursue
2753enforcement in a court of competent jurisdiction, and the order
2754imposing the civil penalty or the cease and desist order shall
2755not become effective until 20 days after the date of such order.
2756Any action commenced by the division shall be brought in the
2757county in which the division has its executive offices or in the
2758county where the violation occurred.
2759     (e)  The division may is authorized to prepare and
2760disseminate a prospectus and other information to assist
2761prospective owners, purchasers, lessees, and developers of
2762residential cooperatives in assessing the rights, privileges,
2763and duties pertaining thereto.
2764     (f)  The division has authority to adopt rules pursuant to
2765ss. 120.536(1) and 120.54 to implement and enforce the
2766provisions of this chapter.
2767     (g)  The division shall establish procedures for providing
2768notice to an association when the division is considering the
2769issuance of a declaratory statement with respect to the
2770cooperative documents governing such cooperative community.
2771     (h)  The division shall furnish each association which pays
2772the fees required by paragraph (2)(a) a copy of this act,
2773subsequent changes to this act on an annual basis, an amended
2774version of this act as it becomes available from the Secretary
2775of State's office on a biennial basis, and the rules adopted
2776promulgated pursuant thereto on an annual basis.
2777     (i)  The division shall annually provide each association
2778with a summary of declaratory statements and formal legal
2779opinions relating to the operations of cooperatives which were
2780rendered by the division during the previous year.
2781     (j)  The division shall adopt uniform accounting
2782principles, policies, and standards to be used by all
2783associations in the preparation and presentation of all
2784financial statements required by this chapter. The principles,
2785policies, and standards shall take into consideration the size
2786of the association and the total revenue collected by the
2787association.
2788     (k)  The division shall provide training programs for
2789cooperative association board members and unit owners.
2790     (l)  The division shall maintain a toll-free telephone
2791number accessible to cooperative unit owners.
2792     (m)  When a complaint is made to the division, the division
2793shall conduct its inquiry with reasonable dispatch and with due
2794regard to the interests of the affected parties. Within 30 days
2795after receipt of a complaint, the division shall acknowledge the
2796complaint in writing and notify the complainant whether the
2797complaint is within the jurisdiction of the division and whether
2798additional information is needed by the division from the
2799complainant. The division shall conduct its investigation and
2800shall, within 90 days after receipt of the original complaint or
2801timely requested additional information, take action upon the
2802complaint. However, the failure to complete the investigation
2803within 90 days does not prevent the division from continuing the
2804investigation, accepting or considering evidence obtained or
2805received after 90 days, or taking administrative action if
2806reasonable cause exists to believe that a violation of this
2807chapter or a rule of the division has occurred. If an
2808investigation is not completed within the time limits
2809established in this paragraph, the division shall, on a monthly
2810basis, notify the complainant in writing of the status of the
2811investigation. When reporting its action to the complainant, the
2812division shall inform the complainant of any right to a hearing
2813pursuant to ss. 120.569 and 120.57.
2814     (n)  The division shall develop a program to certify both
2815volunteer and paid mediators to provide mediation of cooperative
2816disputes. The division shall provide, upon request, a list of
2817such mediators to any association, unit owner, or other
2818participant in arbitration proceedings under s. 718.1255
2819requesting a copy of the list. The division shall include on the
2820list of voluntary mediators only persons who have received at
2821least 20 hours of training in mediation techniques or have
2822mediated at least 20 disputes. In order to become initially
2823certified by the division, paid mediators must be certified by
2824the Supreme Court to mediate court cases in either county or
2825circuit courts. However, the division may adopt, by rule,
2826additional factors for the certification of paid mediators,
2827which factors must be related to experience, education, or
2828background. Any person initially certified as a paid mediator by
2829the division must, in order to continue to be certified, comply
2830with the factors or requirements imposed by rules adopted by the
2831division.
2832     (2)(a)  Each cooperative association shall pay to the
2833division, on or before January 1 of each year, an annual fee in
2834the amount of $4 for each residential unit in cooperatives
2835operated by the association. If the fee is not paid by March 1,
2836then the association shall be assessed a penalty of 10 percent
2837of the amount due, and the association shall not have the
2838standing to maintain or defend any action in the courts of this
2839state until the amount due is paid.
2840     (b)  All fees shall be deposited in the Division of Florida
2841Land Sales, Condominiums, Timeshares, and Mobile Homes Trust
2842Fund as provided by law.
2843     Section 55.  Paragraph (a) of subsection (2) of section
2844719.502, Florida Statutes, is amended to read:
2845     719.502  Filing prior to sale or lease.--
2846     (2)(a)  Prior to filing as required by subsection (1), and
2847prior to acquiring an ownership, leasehold, or contractual
2848interest in the land upon which the cooperative is to be
2849developed, a developer shall not offer a contract for purchase
2850or lease of a unit for more than 5 years. However, the developer
2851may accept deposits for reservations upon the approval of a
2852fully executed escrow agreement and reservation agreement form
2853properly filed with the Division of Florida Land Sales,
2854Condominiums, Timeshares, and Mobile Homes. Each filing of a
2855proposed reservation program shall be accompanied by a filing
2856fee of $250. Reservations shall not be taken on a proposed
2857cooperative unless the developer has an ownership, leasehold, or
2858contractual interest in the land upon which the cooperative is
2859to be developed. The division shall notify the developer within
286020 days of receipt of the reservation filing of any deficiencies
2861contained therein. Such notification shall not preclude the
2862determination of reservation filing deficiencies at a later
2863date, nor shall it relieve the developer of any responsibility
2864under the law. The escrow agreement and the reservation
2865agreement form shall include a statement of the right of the
2866prospective purchaser to an immediate unqualified refund of the
2867reservation deposit moneys upon written request to the escrow
2868agent by the prospective purchaser or the developer.
2869     Section 56.  Section 719.504, Florida Statutes, is amended
2870to read:
2871     719.504  Prospectus or offering circular.--Every developer
2872of a residential cooperative which contains more than 20
2873residential units, or which is part of a group of residential
2874cooperatives which will be served by property to be used in
2875common by unit owners of more than 20 residential units, shall
2876prepare a prospectus or offering circular and file it with the
2877Division of Florida Land Sales, Condominiums, Timeshares, and
2878Mobile Homes prior to entering into an enforceable contract of
2879purchase and sale of any unit or lease of a unit for more than 5
2880years and shall furnish a copy of the prospectus or offering
2881circular to each buyer. In addition to the prospectus or
2882offering circular, each buyer shall be furnished a separate page
2883entitled "Frequently Asked Questions and Answers," which must be
2884in accordance with a format approved by the division. This page
2885must, in readable language: inform prospective purchasers
2886regarding their voting rights and unit use restrictions,
2887including restrictions on the leasing of a unit; indicate
2888whether and in what amount the unit owners or the association is
2889obligated to pay rent or land use fees for recreational or other
2890commonly used facilities; contain a statement identifying that
2891amount of assessment which, pursuant to the budget, would be
2892levied upon each unit type, exclusive of any special
2893assessments, and which identifies the basis upon which
2894assessments are levied, whether monthly, quarterly, or
2895otherwise; state and identify any court cases in which the
2896association is currently a party of record in which the
2897association may face liability in excess of $100,000; and state
2898whether membership in a recreational facilities association is
2899mandatory and, if so, identify the fees currently charged per
2900unit type. The division shall by rule require such other
2901disclosure as in its judgment will assist prospective
2902purchasers. The prospectus or offering circular may include more
2903than one cooperative, although not all such units are being
2904offered for sale as of the date of the prospectus or offering
2905circular. The prospectus or offering circular must contain the
2906following information:
2907     (1)  The front cover or the first page must contain only:
2908     (a)  The name of the cooperative.
2909     (b)  The following statements in conspicuous type:
2910     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
2911MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT.
2912     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
2913NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
2914ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
2915MATERIALS.
2916     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
2917STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
2918PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
2919REPRESENTATIONS.
2920     (2)  Summary: The next page must contain all statements
2921required to be in conspicuous type in the prospectus or offering
2922circular.
2923     (3)  A separate index of the contents and exhibits of the
2924prospectus.
2925     (4)  Beginning on the first page of the text (not including
2926the summary and index), a description of the cooperative,
2927including, but not limited to, the following information:
2928     (a)  Its name and location.
2929     (b)  A description of the cooperative property, including,
2930without limitation:
2931     1.  The number of buildings, the number of units in each
2932building, the number of bathrooms and bedrooms in each unit, and
2933the total number of units, if the cooperative is not a phase
2934cooperative; or, if the cooperative is a phase cooperative, the
2935maximum number of buildings that may be contained within the
2936cooperative, the minimum and maximum number of units in each
2937building, the minimum and maximum number of bathrooms and
2938bedrooms that may be contained in each unit, and the maximum
2939number of units that may be contained within the cooperative.
2940     2.  The page in the cooperative documents where a copy of
2941the survey and plot plan of the cooperative is located.
2942     3.  The estimated latest date of completion of
2943constructing, finishing, and equipping. In lieu of a date, a
2944statement that the estimated date of completion of the
2945cooperative is in the purchase agreement and a reference to the
2946article or paragraph containing that information.
2947     (c)  The maximum number of units that will use facilities
2948in common with the cooperative. If the maximum number of units
2949will vary, a description of the basis for variation and the
2950minimum amount of dollars per unit to be spent for additional
2951recreational facilities or enlargement of such facilities. If
2952the addition or enlargement of facilities will result in a
2953material increase of a unit owner's maintenance expense or
2954rental expense, if any, the maximum increase and limitations
2955thereon shall be stated.
2956     (5)(a)  A statement in conspicuous type describing whether
2957the cooperative is created and being sold as fee simple
2958interests or as leasehold interests. If the cooperative is
2959created or being sold on a leasehold, the location of the lease
2960in the disclosure materials shall be stated.
2961     (b)  If timeshare estates are or may be created with
2962respect to any unit in the cooperative, a statement in
2963conspicuous type stating that timeshare estates are created and
2964being sold in such specified units in the cooperative.
2965     (6)  A description of the recreational and other common
2966areas that will be used only by unit owners of the cooperative,
2967including, but not limited to, the following:
2968     (a)  Each room and its intended purposes, location,
2969approximate floor area, and capacity in numbers of people.
2970     (b)  Each swimming pool, as to its general location,
2971approximate size and depths, approximate deck size and capacity,
2972and whether heated.
2973     (c)  Additional facilities, as to the number of each
2974facility, its approximate location, approximate size, and
2975approximate capacity.
2976     (d)  A general description of the items of personal
2977property and the approximate number of each item of personal
2978property that the developer is committing to furnish for each
2979room or other facility or, in the alternative, a representation
2980as to the minimum amount of expenditure that will be made to
2981purchase the personal property for the facility.
2982     (e)  The estimated date when each room or other facility
2983will be available for use by the unit owners.
2984     (f)1.  An identification of each room or other facility to
2985be used by unit owners that will not be owned by the unit owners
2986or the association;
2987     2.  A reference to the location in the disclosure materials
2988of the lease or other agreements providing for the use of those
2989facilities; and
2990     3.  A description of the terms of the lease or other
2991agreements, including the length of the term; the rent payable,
2992directly or indirectly, by each unit owner, and the total rent
2993payable to the lessor, stated in monthly and annual amounts for
2994the entire term of the lease; and a description of any option to
2995purchase the property leased under any such lease, including the
2996time the option may be exercised, the purchase price or how it
2997is to be determined, the manner of payment, and whether the
2998option may be exercised for a unit owner's share or only as to
2999the entire leased property.
3000     (g)  A statement as to whether the developer may provide
3001additional facilities not described above, their general
3002locations and types, improvements or changes that may be made,
3003the approximate dollar amount to be expended, and the maximum
3004additional common expense or cost to the individual unit owners
3005that may be charged during the first annual period of operation
3006of the modified or added facilities.
3007
3008Descriptions as to locations, areas, capacities, numbers,
3009volumes, or sizes may be stated as approximations or minimums.
3010     (7)  A description of the recreational and other facilities
3011that will be used in common with other cooperatives, community
3012associations, or planned developments which require the payment
3013of the maintenance and expenses of such facilities, either
3014directly or indirectly, by the unit owners. The description
3015shall include, but not be limited to, the following:
3016     (a)  Each building and facility committed to be built.
3017     (b)  Facilities not committed to be built except under
3018certain conditions, and a statement of those conditions or
3019contingencies.
3020     (c)  As to each facility committed to be built, or which
3021will be committed to be built upon the happening of one of the
3022conditions in paragraph (b), a statement of whether it will be
3023owned by the unit owners having the use thereof or by an
3024association or other entity which will be controlled by them, or
3025others, and the location in the exhibits of the lease or other
3026document providing for use of those facilities.
3027     (d)  The year in which each facility will be available for
3028use by the unit owners or, in the alternative, the maximum
3029number of unit owners in the project at the time each of all of
3030the facilities is committed to be completed.
3031     (e)  A general description of the items of personal
3032property, and the approximate number of each item of personal
3033property, that the developer is committing to furnish for each
3034room or other facility or, in the alternative, a representation
3035as to the minimum amount of expenditure that will be made to
3036purchase the personal property for the facility.
3037     (f)  If there are leases, a description thereof, including
3038the length of the term, the rent payable, and a description of
3039any option to purchase.
3040
3041Descriptions shall include location, areas, capacities, numbers,
3042volumes, or sizes and may be stated as approximations or
3043minimums.
3044     (8)  Recreation lease or associated club membership:
3045     (a)  If any recreational facilities or other common areas
3046offered by the developer and available to, or to be used by,
3047unit owners are to be leased or have club membership associated,
3048the following statement in conspicuous type shall be included:
3049THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
3050COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
3051COOPERATIVE. There shall be a reference to the location in the
3052disclosure materials where the recreation lease or club
3053membership is described in detail.
3054     (b)  If it is mandatory that unit owners pay a fee, rent,
3055dues, or other charges under a recreational facilities lease or
3056club membership for the use of facilities, there shall be in
3057conspicuous type the applicable statement:
3058     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
3059MANDATORY FOR UNIT OWNERS; or
3060     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
3061TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
3062     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
3063COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
3064REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
3065LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
3066     4.  A similar statement of the nature of the organization
3067or manner in which the use rights are created, and that unit
3068owners are required to pay.
3069
3070Immediately following the applicable statement, the location in
3071the disclosure materials where the development is described in
3072detail shall be stated.
3073     (c)  If the developer, or any other person other than the
3074unit owners and other persons having use rights in the
3075facilities, reserves, or is entitled to receive, any rent, fee,
3076or other payment for the use of the facilities, then there shall
3077be the following statement in conspicuous type: THE UNIT OWNERS
3078OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
3079RECREATIONAL OR OTHER COMMON AREAS. Immediately following this
3080statement, the location in the disclosure materials where the
3081rent or land use fees are described in detail shall be stated.
3082     (d)  If, in any recreation format, whether leasehold, club,
3083or other, any person other than the association has the right to
3084a lien on the units to secure the payment of assessments, rent,
3085or other exactions, there shall appear a statement in
3086conspicuous type in substantially the following form:
3087     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
3088SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
3089RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
3090PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
3091     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
3092SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
3093FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
3094OR COMMONLY USED AREAS. THE UNIT OWNER'S FAILURE TO MAKE THESE
3095PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
3096
3097Immediately following the applicable statement, the location in
3098the disclosure materials where the lien or lien right is
3099described in detail shall be stated.
3100     (9)  If the developer or any other person has the right to
3101increase or add to the recreational facilities at any time after
3102the establishment of the cooperative whose unit owners have use
3103rights therein, without the consent of the unit owners or
3104associations being required, there shall appear a statement in
3105conspicuous type in substantially the following form:
3106RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
3107OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
3108statement, the location in the disclosure materials where such
3109reserved rights are described shall be stated.
3110     (10)  A statement of whether the developer's plan includes
3111a program of leasing units rather than selling them, or leasing
3112units and selling them subject to such leases. If so, there
3113shall be a description of the plan, including the number and
3114identification of the units and the provisions and term of the
3115proposed leases, and a statement in boldfaced type that: THE
3116UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
3117     (11)  The arrangements for management of the association
3118and maintenance and operation of the cooperative property and of
3119other property that will serve the unit owners of the
3120cooperative property, and a description of the management
3121contract and all other contracts for these purposes having a
3122term in excess of 1 year, including the following:
3123     (a)  The names of contracting parties.
3124     (b)  The term of the contract.
3125     (c)  The nature of the services included.
3126     (d)  The compensation, stated on a monthly and annual
3127basis, and provisions for increases in the compensation.
3128     (e)  A reference to the volumes and pages of the
3129cooperative documents and of the exhibits containing copies of
3130such contracts.
3131
3132Copies of all described contracts shall be attached as exhibits.
3133If there is a contract for the management of the cooperative
3134property, then a statement in conspicuous type in substantially
3135the following form shall appear, identifying the proposed or
3136existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
3137THE MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF THE
3138CONTRACT MANAGER). Immediately following this statement, the
3139location in the disclosure materials of the contract for
3140management of the cooperative property shall be stated.
3141     (12)  If the developer or any other person or persons other
3142than the unit owners has the right to retain control of the
3143board of administration of the association for a period of time
3144which can exceed 1 year after the closing of the sale of a
3145majority of the units in that cooperative to persons other than
3146successors or alternate developers, then a statement in
3147conspicuous type in substantially the following form shall be
3148included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
3149RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
3150HAVE BEEN SOLD. Immediately following this statement, the
3151location in the disclosure materials where this right to control
3152is described in detail shall be stated.
3153     (13)  If there are any restrictions upon the sale,
3154transfer, conveyance, or leasing of a unit, then a statement in
3155conspicuous type in substantially the following form shall be
3156included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
3157CONTROLLED. Immediately following this statement, the location
3158in the disclosure materials where the restriction, limitation,
3159or control on the sale, lease, or transfer of units is described
3160in detail shall be stated.
3161     (14)  If the cooperative is part of a phase project, the
3162following shall be stated:
3163     (a)  A statement in conspicuous type in substantially the
3164following form shall be included: THIS IS A PHASE COOPERATIVE.
3165ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE.
3166Immediately following this statement, the location in the
3167disclosure materials where the phasing is described shall be
3168stated.
3169     (b)  A summary of the provisions of the declaration
3170providing for the phasing.
3171     (c)  A statement as to whether or not residential buildings
3172and units which are added to the cooperative may be
3173substantially different from the residential buildings and units
3174originally in the cooperative, and, if the added residential
3175buildings and units may be substantially different, there shall
3176be a general description of the extent to which such added
3177residential buildings and units may differ, and a statement in
3178conspicuous type in substantially the following form shall be
3179included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE
3180MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
3181UNITS IN THE COOPERATIVE. Immediately following this statement,
3182the location in the disclosure materials where the extent to
3183which added residential buildings and units may substantially
3184differ is described shall be stated.
3185     (d)  A statement of the maximum number of buildings
3186containing units, the maximum and minimum number of units in
3187each building, the maximum number of units, and the minimum and
3188maximum square footage of the units that may be contained within
3189each parcel of land which may be added to the cooperative.
3190     (15)  If the cooperative is created by conversion of
3191existing improvements, the following information shall be
3192stated:
3193     (a)  The information required by s. 719.616.
3194     (b)  A caveat that there are no express warranties unless
3195they are stated in writing by the developer.
3196     (16)  A summary of the restrictions, if any, to be imposed
3197on units concerning the use of any of the cooperative property,
3198including statements as to whether there are restrictions upon
3199children and pets, and reference to the volumes and pages of the
3200cooperative documents where such restrictions are found, or if
3201such restrictions are contained elsewhere, then a copy of the
3202documents containing the restrictions shall be attached as an
3203exhibit.
3204     (17)  If there is any land that is offered by the developer
3205for use by the unit owners and that is neither owned by them nor
3206leased to them, the association, or any entity controlled by
3207unit owners and other persons having the use rights to such
3208land, a statement shall be made as to how such land will serve
3209the cooperative. If any part of such land will serve the
3210cooperative, the statement shall describe the land and the
3211nature and term of service, and the cooperative documents or
3212other instrument creating such servitude shall be included as an
3213exhibit.
3214     (18)  The manner in which utility and other services,
3215including, but not limited to, sewage and waste disposal, water
3216supply, and storm drainage, will be provided and the person or
3217entity furnishing them.
3218     (19)  An explanation of the manner in which the
3219apportionment of common expenses and ownership of the common
3220areas have been determined.
3221     (20)  An estimated operating budget for the cooperative and
3222the association, and a schedule of the unit owner's expenses
3223shall be attached as an exhibit and shall contain the following
3224information:
3225     (a)  The estimated monthly and annual expenses of the
3226cooperative and the association that are collected from unit
3227owners by assessments.
3228     (b)  The estimated monthly and annual expenses of each unit
3229owner for a unit, other than assessments payable to the
3230association, payable by the unit owner to persons or entities
3231other than the association, and the total estimated monthly and
3232annual expense. There may be excluded from this estimate
3233expenses that are personal to unit owners, which are not
3234uniformly incurred by all unit owners, or which are not provided
3235for or contemplated by the cooperative documents, including, but
3236not limited to, the costs of private telephone; maintenance of
3237the interior of cooperative units, which is not the obligation
3238of the association; maid or janitorial services privately
3239contracted for by the unit owners; utility bills billed directly
3240to each unit owner for utility services to his or her unit;
3241insurance premiums other than those incurred for policies
3242obtained by the cooperative; and similar personal expenses of
3243the unit owner. A unit owner's estimated payments for
3244assessments shall also be stated in the estimated amounts for
3245the times when they will be due.
3246     (c)  The estimated items of expenses of the cooperative and
3247the association, except as excluded under paragraph (b),
3248including, but not limited to, the following items, which shall
3249be stated either as an association expense collectible by
3250assessments or as unit owners' expenses payable to persons other
3251than the association:
3252     1.  Expenses for the association and cooperative:
3253     a.  Administration of the association.
3254     b.  Management fees.
3255     c.  Maintenance.
3256     d.  Rent for recreational and other commonly used areas.
3257     e.  Taxes upon association property.
3258     f.  Taxes upon leased areas.
3259     g.  Insurance.
3260     h.  Security provisions.
3261     i.  Other expenses.
3262     j.  Operating capital.
3263     k.  Reserves.
3264     l.  Fee payable to the division.
3265     2.  Expenses for a unit owner:
3266     a.  Rent for the unit, if subject to a lease.
3267     b.  Rent payable by the unit owner directly to the lessor
3268or agent under any recreational lease or lease for the use of
3269commonly used areas, which use and payment are a mandatory
3270condition of ownership and are not included in the common
3271expense or assessments for common maintenance paid by the unit
3272owners to the association.
3273     (d)  The following statement in conspicuous type: THE
3274BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN
3275ACCORDANCE WITH THE COOPERATIVE ACT AND IS A GOOD FAITH ESTIMATE
3276ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON
3277FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
3278ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH
3279CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN
3280THE OFFERING.
3281     (e)  Each budget for an association prepared by a developer
3282consistent with this subsection shall be prepared in good faith
3283and shall reflect accurate estimated amounts for the required
3284items in paragraph (c) at the time of the filing of the offering
3285circular with the division, and subsequent increased amounts of
3286any item included in the association's estimated budget that are
3287beyond the control of the developer shall not be considered an
3288amendment that would give rise to rescission rights set forth in
3289s. 719.503(1)(a) or (b), nor shall such increases modify, void,
3290or otherwise affect any guarantee of the developer contained in
3291the offering circular or any purchase contract. It is the intent
3292of this paragraph to clarify existing law.
3293     (f)  The estimated amounts shall be stated for a period of
3294at least 12 months and may distinguish between the period prior
3295to the time unit owners other than the developer elect a
3296majority of the board of administration and the period after
3297that date.
3298     (21)  A schedule of estimated closing expenses to be paid
3299by a buyer or lessee of a unit and a statement of whether title
3300opinion or title insurance policy is available to the buyer and,
3301if so, at whose expense.
3302     (22)  The identity of the developer and the chief operating
3303officer or principal directing the creation and sale of the
3304cooperative and a statement of its and his or her experience in
3305this field.
3306     (23)  Copies of the following, to the extent they are
3307applicable, shall be included as exhibits:
3308     (a)  The cooperative documents, or the proposed cooperative
3309documents if the documents have not been recorded.
3310     (b)  The articles of incorporation creating the
3311association.
3312     (c)  The bylaws of the association.
3313     (d)  The ground lease or other underlying lease of the
3314cooperative.
3315     (e)  The management agreement and all maintenance and other
3316contracts for management of the association and operation of the
3317cooperative and facilities used by the unit owners having a
3318service term in excess of 1 year.
3319     (f)  The estimated operating budget for the cooperative and
3320the required schedule of unit owners' expenses.
3321     (g)  A copy of the floor plan of the unit and the plot plan
3322showing the location of the residential buildings and the
3323recreation and other common areas.
3324     (h)  The lease of recreational and other facilities that
3325will be used only by unit owners of the subject cooperative.
3326     (i)  The lease of facilities used by owners and others.
3327     (j)  The form of unit lease, if the offer is of a
3328leasehold.
3329     (k)  A declaration of servitude of properties serving the
3330cooperative but not owned by unit owners or leased to them or
3331the association.
3332     (l)  The statement of condition of the existing building or
3333buildings, if the offering is of units in an operation being
3334converted to cooperative ownership.
3335     (m)  The statement of inspection for termite damage and
3336treatment of the existing improvements, if the cooperative is a
3337conversion.
3338     (n)  The form of agreement for sale or lease of units.
3339     (o)  A copy of the agreement for escrow of payments made to
3340the developer prior to closing.
3341     (p)  A copy of the documents containing any restrictions on
3342use of the property required by subsection (16).
3343     (24)  Any prospectus or offering circular complying with
3344the provisions of former ss. 711.69 and 711.802 may continue to
3345be used without amendment, or may be amended to comply with the
3346provisions of this chapter.
3347     (25)  A brief narrative description of the location and
3348effect of all existing and intended easements located or to be
3349located on the cooperative property other than those in the
3350declaration.
3351     (26)  If the developer is required by state or local
3352authorities to obtain acceptance or approval of any dock or
3353marina facility intended to serve the cooperative, a copy of
3354such acceptance or approval acquired by the time of filing with
3355the division pursuant to s. 719.502 or a statement that such
3356acceptance has not been acquired or received.
3357     (27)  Evidence demonstrating that the developer has an
3358ownership, leasehold, or contractual interest in the land upon
3359which the cooperative is to be developed.
3360     Section 57.  Section 719.508, Florida Statutes, is amended
3361to read:
3362     719.508  Regulation by Division of Hotels and
3363Restaurants.--In addition to the authority, regulation, or
3364control exercised by the Division of Florida Land Sales,
3365Condominiums, Timeshares, and Mobile Homes pursuant to this act
3366with respect to cooperatives, buildings included in a
3367cooperative property shall be subject to the authority,
3368regulation, or control of the Division of Hotels and Restaurants
3369of the Department of Business and Professional Regulation, to
3370the extent provided for in chapters 399 and 509.
3371     Section 58.  Paragraph (a) of subsection (2) of section
3372719.608, Florida Statutes, is amended to read:
3373     719.608  Notice of intended conversion; time of delivery;
3374content.--
3375     (2)(a)  Each notice of intended conversion shall be dated
3376and in writing. The notice shall contain the following
3377statement, with the phrases of the following statement which
3378appear in upper case printed in conspicuous type:
3379
3380     These apartments are being converted to cooperative by  
3381(name of developer)  , the developer.
3382     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
3383YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
3384AGREEMENT AS FOLLOWS:
3385     a.  If you have continuously been a resident of these
3386apartments during the last 180 days and your rental agreement
3387expires during the next 270 days, you may extend your rental
3388agreement for up to 270 days after the date of this notice.
3389     b.  If you have not been a continuous resident of these
3390apartments for the last 180 days and your rental agreement
3391expires during the next 180 days, you may extend your rental
3392agreement for up to 180 days after the date of this notice.
3393     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
3394MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
3395DATE OF THIS NOTICE.
3396     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
3397you may extend your rental agreement for up to 45 days after the
3398date of this notice while you decide whether to extend your
3399rental agreement as explained above. To do so, you must notify
3400the developer in writing. You will then have the full 45 days to
3401decide whether to extend your rental agreement as explained
3402above.
3403     3.  During the extension of your rental agreement you will
3404be charged the same rent that you are now paying.
3405     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
3406OF THE RENTAL AGREEMENT AS FOLLOWS:
3407     a.  If your rental agreement began or was extended or
3408renewed after May 1, 1980, and your rental agreement, including
3409extensions and renewals, has an unexpired term of 180 days or
3410less, you may cancel your rental agreement upon 30 days' written
3411notice and move. Also, upon 30 days' written notice, you may
3412cancel any extension of the rental agreement.
3413     b.  If your rental agreement was not begun or was not
3414extended or renewed after May 1, 1980, you may not cancel the
3415rental agreement without the consent of the developer. If your
3416rental agreement, including extensions and renewals, has an
3417unexpired term of 180 days or less, you may, however, upon 30
3418days' written notice cancel any extension of the rental
3419agreement.
3420     5.  All notices must be given in writing and sent by mail,
3421return receipt requested, or delivered in person to the
3422developer at this address:   (name and address of developer)  .
3423     6.  If you have continuously been a resident of these
3424apartments during the last 180 days:
3425     a.  You have the right to purchase your apartment and will
3426have 45 days to decide whether to purchase. If you do not buy
3427the unit at that price and the unit is later offered at a lower
3428price, you will have the opportunity to buy the unit at the
3429lower price. However, in all events your right to purchase the
3430unit ends when the rental agreement or any extension of the
3431rental agreement ends or when you waive this right in writing.
3432     b.  Within 90 days you will be provided purchase
3433information relating to your apartment, including the price of
3434your unit and the condition of the building. If you do not
3435receive this information within 90 days, your rental agreement
3436and any extension will be extended 1 day for each day over 90
3437days until you are given the purchase information. If you do not
3438want this rental agreement extension, you must notify the
3439developer in writing.
3440     7.  If you have any questions regarding this conversion or
3441the Cooperative Act, you may contact the developer or the state
3442agency which regulates cooperatives: The Division of Florida
3443Land Sales, Condominiums, Timeshares, and Mobile Homes,  
3444(Tallahassee address and telephone number of division)  .
3445     Section 59.  Subsection (7) of section 720.301, Florida
3446Statutes, is amended to read:
3447     720.301  Definitions.--As used in this chapter, the term:
3448     (7)  "Division" means the Division of Florida Land Sales,
3449Condominiums, Timeshares, and Mobile Homes in the Department of
3450Business and Professional Regulation.
3451     Section 60.  Subsection (2) of section 720.401, Florida
3452Statutes, is amended to read:
3453     720.401  Prospective purchasers subject to association
3454membership requirement; disclosure required; covenants;
3455assessments; contract cancellation.--
3456     (2)  This section does not apply to any association
3457regulated under chapter 718, chapter 719, chapter 721, or
3458chapter 723 or to a subdivider registered under chapter 498; and
3459also does not apply if disclosure regarding the association is
3460otherwise made in connection with the requirements of chapter
3461718, chapter 719, chapter 721, or chapter 723.
3462     Section 61.  Paragraph (c) of subsection (1) of section
3463721.03, Florida Statutes, is amended to read:
3464     721.03  Scope of chapter.--
3465     (1)  This chapter applies to all timeshare plans consisting
3466of more than seven timeshare periods over a period of at least 3
3467years in which the accommodations and facilities, if any, are
3468located within this state or offered within this state; provided
3469that:
3470     (c)  All timeshare accommodations or facilities which are
3471located outside the state but offered for sale in this state
3472shall be governed by the following:
3473     1.  The offering for sale in this state of timeshare
3474accommodations and facilities located outside the state is
3475subject only to the provisions of ss. 721.01-721.12, 721.18,
3476721.20, 721.21, 721.26, 721.28, and part II.
3477     2.  The division shall not require a developer of timeshare
3478accommodations or facilities located outside of this state to
3479make changes in any timeshare instrument to conform to the
3480provisions of s. 721.07 or s. 721.55. The division shall have
3481the power to require disclosure of those provisions of the
3482timeshare instrument that do not conform to s. 721.07 or s.
3483721.55 as the director determines is necessary to fairly,
3484meaningfully, and effectively disclose all aspects of the
3485timeshare plan.
3486     3.  Except as provided in this subparagraph, the division
3487shall have no authority to determine whether any person has
3488complied with another state's laws or to disapprove any filing
3489out-of-state, timeshare instrument, or component site document,
3490based solely upon the lack or degree of timeshare regulation in
3491another state. The division may require a developer to obtain
3492and provide to the division existing documentation relating to
3493an out-of-state filing, timeshare instrument, or component site
3494document and prove compliance of same with the laws of that
3495state. In this regard, the division may accept any evidence of
3496the approval or acceptance of any out-of-state filing, timeshare
3497instrument, or component site document by another state in lieu
3498of requiring a developer to file the out-of-state filing,
3499timeshare instrument, or component site document with the
3500division pursuant to this section, or the division may accept an
3501opinion letter from an attorney or law firm opining as to the
3502compliance of such out-of-state filing, timeshare instrument, or
3503component site document with the laws of another state. The
3504division may refuse to approve the inclusion of any out-of-state
3505filing, timeshare instrument, or component site document as part
3506of a public offering statement based upon the inability of the
3507developer to establish the compliance of same with the laws of
3508another state.
3509     4.  The division is authorized to enter into an agreement
3510with another state for the purpose of facilitating the
3511processing of out-of-state timeshare instruments or other
3512component site documents pursuant to this chapter and for the
3513purpose of facilitating the referral of consumer complaints to
3514the appropriate state.
3515     5.  Notwithstanding any other provision of this paragraph,
3516the offer, in this state, of an additional interest to existing
3517purchasers in the same timeshare plan, the same nonspecific
3518multisite timeshare plan, or the same component site of a
3519multisite timeshare plan with accommodations and facilities
3520located outside of this state shall not be subject to the
3521provisions of this chapter if the offer complies with the
3522provisions of s. 721.11(4).
3523     Section 62.  Subsection (11) of section 721.05, Florida
3524Statutes, is amended to read:
3525     721.05  Definitions.--As used in this chapter, the term:
3526     (11)  "Division" means the Division of Florida Land Sales,
3527Condominiums, Timeshares, and Mobile Homes of the Department of
3528Business and Professional Regulation.
3529     Section 63.  Paragraph (d) of subsection (2) of section
3530721.07, Florida Statutes, is amended to read:
3531     721.07  Public offering statement.--Prior to offering any
3532timeshare plan, the developer must submit a filed public
3533offering statement to the division for approval as prescribed by
3534s. 721.03, s. 721.55, or this section. Until the division
3535approves such filing, any contract regarding the sale of that
3536timeshare plan is subject to cancellation by the purchaser
3537pursuant to s. 721.10.
3538     (2)
3539     (d)  A developer shall have the authority to deliver to
3540purchasers any purchaser public offering statement that is not
3541yet approved by the division, provided that the following shall
3542apply:
3543     1.  At the time the developer delivers an unapproved
3544purchaser public offering statement to a purchaser pursuant to
3545this paragraph, the developer shall deliver a fully completed
3546and executed copy of the purchase contract required by s. 721.06
3547that contains the following statement in conspicuous type in
3548substantially the following form which shall replace the
3549statements required by s. 721.06(1)(g):
3550
3551The developer is delivering to you a public offering statement
3552that has been filed with but not yet approved by the Division of
3553Florida Land Sales, Condominiums, Timeshares, and Mobile Homes.
3554Any revisions to the unapproved public offering statement you
3555have received must be delivered to you, but only if the
3556revisions materially alter or modify the offering in a manner
3557adverse to you. After the division approves the public offering
3558statement, you will receive notice of the approval from the
3559developer and the required revisions, if any.
3560
3561Your statutory right to cancel this transaction without any
3562penalty or obligation expires 10 calendar days after the date
3563you signed your purchase contract or the date on which you
3564receive the last of all documents required to be given to you
3565pursuant to section 721.07(6), Florida Statutes, or 10 calendar
3566days after you receive revisions required to be delivered to
3567you, if any, whichever is later. If you decide to cancel this
3568contract, you must notify the seller in writing of your intent
3569to cancel. Your notice of cancellation shall be effective upon
3570the date sent and shall be sent to   (Name of Seller)   at  
3571(Address of Seller)  . Any attempt to obtain a waiver of your
3572cancellation right is void and of no effect. While you may
3573execute all closing documents in advance, the closing, as
3574evidenced by delivery of the deed or other document, before
3575expiration of your 10-day cancellation period, is prohibited.
3576
3577     2.  After receipt of approval from the division and prior
3578to closing, if any revisions made to the documents contained in
3579the purchaser public offering statement materially alter or
3580modify the offering in a manner adverse to a purchaser, the
3581developer shall send the purchaser such revisions together with
3582a notice containing a statement in conspicuous type in
3583substantially the following form:
3584
3585The unapproved public offering statement previously delivered to
3586you, together with the enclosed revisions, has been approved by
3587the Division of Florida Land Sales, Condominiums, Timeshares,
3588and Mobile Homes. Accordingly, your cancellation right expires
358910 calendar days after you sign your purchase contract or 10
3590calendar days after you receive these revisions, whichever is
3591later. If you have any questions regarding your cancellation
3592rights, you may contact the division at [insert division's
3593current address].
3594
3595     3.  After receipt of approval from the division and prior
3596to closing, if no revisions have been made to the documents
3597contained in the unapproved purchaser public offering statement,
3598or if such revisions do not materially alter or modify the
3599offering in a manner adverse to a purchaser, the developer shall
3600send the purchaser a notice containing a statement in
3601conspicuous type in substantially the following form:
3602
3603The unapproved public offering statement previously delivered to
3604you has been approved by the Division of Florida Land Sales,
3605Condominiums, Timeshares, and Mobile Homes. Revisions made to
3606the unapproved public offering statement, if any, are either not
3607required to be delivered to you or are not deemed by the
3608developer, in its opinion, to materially alter or modify the
3609offering in a manner that is adverse to you. Accordingly, your
3610cancellation right expired 10 days after you signed your
3611purchase contract. A complete copy of the approved public
3612offering statement is available through the managing entity for
3613inspection as part of the books and records of the plan. If you
3614have any questions regarding your cancellation rights, you may
3615contact the division at [insert division's current address].
3616     Section 64.  Subsection (8) of section 721.08, Florida
3617Statutes, is amended to read:
3618     721.08  Escrow accounts; nondisturbance instruments;
3619alternate security arrangements; transfer of legal title.--
3620     (8)  An escrow agent holding escrowed funds pursuant to
3621this chapter that have not been claimed for a period of 5 years
3622after the date of deposit shall make at least one reasonable
3623attempt to deliver such unclaimed funds to the purchaser who
3624submitted such funds to escrow. In making such attempt, an
3625escrow agent is entitled to rely on a purchaser's last known
3626address as set forth in the books and records of the escrow
3627agent and is not required to conduct any further search for the
3628purchaser. If an escrow agent's attempt to deliver unclaimed
3629funds to any purchaser is unsuccessful, the escrow agent may
3630deliver such unclaimed funds to the division and the division
3631shall deposit such unclaimed funds in the Division of Florida
3632Land Sales, Condominiums, Timeshares, and Mobile Homes Trust
3633Fund, 30 days after giving notice in a publication of general
3634circulation in the county in which the timeshare property
3635containing the purchaser's timeshare interest is located. The
3636purchaser may claim the same at any time prior to the delivery
3637of such funds to the division. After delivery of such funds to
3638the division, the purchaser shall have no more rights to the
3639unclaimed funds. The escrow agent shall not be liable for any
3640claims from any party arising out of the escrow agent's delivery
3641of the unclaimed funds to the division pursuant to this section.
3642     Section 65.  Section 721.26, Florida Statutes, is amended
3643to read:
3644     721.26  Regulation by division.--The division has the power
3645to enforce and ensure compliance with the provisions of this
3646chapter, except for parts III and IV, using the powers provided
3647in this chapter, as well as the powers prescribed in chapters
3648498, 718, and 719. In performing its duties, the division shall
3649have the following powers and duties:
3650     (1)  To aid in the enforcement of this chapter, or any
3651division rule adopted or order promulgated or issued pursuant to
3652this chapter, the division may make necessary public or private
3653investigations within or outside this state to determine whether
3654any person has violated or is about to violate this chapter, or
3655any division rule adopted or order promulgated or issued
3656pursuant to this chapter.
3657     (2)  The division may require or permit any person to file
3658a written statement under oath or otherwise, as the division
3659determines, as to the facts and circumstances concerning a
3660matter under investigation.
3661     (3)  For the purpose of any investigation under this
3662chapter, the director of the division or any officer or employee
3663designated by the director may administer oaths or affirmations,
3664subpoena witnesses and compel their attendance, take evidence,
3665and require the production of any matter which is relevant to
3666the investigation, including the identity, existence,
3667description, nature, custody, condition, and location of any
3668books, documents, or other tangible things and the identity and
3669location of persons having knowledge of relevant facts or any
3670other matter reasonably calculated to lead to the discovery of
3671material evidence. Failure to obey a subpoena or to answer
3672questions propounded by the investigating officer and upon
3673reasonable notice to all persons affected thereby shall be a
3674violation of this chapter. In addition to the other enforcement
3675powers authorized in this subsection, the division may, at its
3676discretion, apply to the circuit court for an order compelling
3677compliance.
3678     (4)  The division may prepare and disseminate a prospectus
3679and other information to assist prospective purchasers, sellers,
3680and managing entities of timeshare plans in assessing the
3681rights, privileges, and duties pertaining thereto.
3682     (5)  Notwithstanding any remedies available to purchasers,
3683if the division has reasonable cause to believe that a violation
3684of this chapter, or of any division rule adopted or order
3685promulgated or issued pursuant to this chapter, has occurred,
3686the division may institute enforcement proceedings in its own
3687name against any regulated party, as such term is defined in
3688this subsection:
3689     (a)1.  "Regulated party," for purposes of this section,
3690means any developer, exchange company, seller, managing entity,
3691owners' association, owners' association director, owners'
3692association officer, manager, management firm, escrow agent,
3693trustee, any respective assignees or agents, or any other person
3694having duties or obligations pursuant to this chapter.
3695     2.  Any person who materially participates in any offer or
3696disposition of any interest in, or the management or operation
3697of, a timeshare plan in violation of this chapter or relevant
3698rules involving fraud, deception, false pretenses,
3699misrepresentation, or false advertising or the disbursement,
3700concealment, or diversion of any funds or assets, which conduct
3701adversely affects the interests of a purchaser, and which person
3702directly or indirectly controls a regulated party or is a
3703general partner, officer, director, agent, or employee of such
3704regulated party, shall be jointly and severally liable under
3705this subsection with such regulated party, unless such person
3706did not know, and in the exercise of reasonable care could not
3707have known, of the existence of the facts giving rise to the
3708violation of this chapter. A right of contribution shall exist
3709among jointly and severally liable persons pursuant to this
3710paragraph.
3711     (b)  The division may permit any person whose conduct or
3712actions may be under investigation to waive formal proceedings
3713and enter into a consent proceeding whereby an order, rule, or
3714letter of censure or warning, whether formal or informal, may be
3715entered against that person.
3716     (c)  The division may issue an order requiring a regulated
3717party to cease and desist from an unlawful practice under this
3718chapter and take such affirmative action as in the judgment of
3719the division will carry out the purposes of this chapter.
3720     (d)1.  The division may bring an action in circuit court
3721for declaratory or injunctive relief or for other appropriate
3722relief, including restitution.
3723     2.  The division shall have broad authority and discretion
3724to petition the circuit court to appoint a receiver with respect
3725to any managing entity which fails to perform its duties and
3726obligations under this chapter with respect to the operation of
3727a timeshare plan. The circumstances giving rise to an
3728appropriate petition for receivership under this subparagraph
3729include, but are not limited to:
3730     a.  Damage to or destruction of any of the accommodations
3731or facilities of a timeshare plan, where the managing entity has
3732failed to repair or reconstruct same.
3733     b.  A breach of fiduciary duty by the managing entity,
3734including, but not limited to, undisclosed self-dealing or
3735failure to timely assess, collect, or disburse the common
3736expenses of the timeshare plan.
3737     c.  Failure of the managing entity to operate the timeshare
3738plan in accordance with the timeshare instrument and this
3739chapter.
3740
3741If, under the circumstances, it appears that the events giving
3742rise to the petition for receivership cannot be reasonably and
3743timely corrected in a cost-effective manner consistent with the
3744timeshare instrument, the receiver may petition the circuit
3745court to implement such amendments or revisions to the timeshare
3746instrument as may be necessary to enable the managing entity to
3747resume effective operation of the timeshare plan, or to enter an
3748order terminating the timeshare plan, or to enter such further
3749orders regarding the disposition of the timeshare property as
3750the court deems appropriate, including the disposition and sale
3751of the timeshare property held by the owners' association or the
3752purchasers. In the event of a receiver's sale, all rights,
3753title, and interest held by the owners' association or any
3754purchaser shall be extinguished and title shall vest in the
3755buyer. This provision applies to timeshare estates, personal
3756property timeshare interests, and timeshare licenses. All
3757reasonable costs and fees of the receiver relating to the
3758receivership shall become common expenses of the timeshare plan
3759upon order of the court.
3760     3.  The division may revoke its approval of any filing for
3761any timeshare plan for which a petition for receivership has
3762been filed pursuant to this paragraph.
3763     (e)1.  The division may impose a penalty against any
3764regulated party for a violation of this chapter or any rule
3765adopted thereunder. A penalty may be imposed on the basis of
3766each day of continuing violation, but in no event may the
3767penalty for any offense exceed $10,000. All accounts collected
3768shall be deposited with the Chief Financial Officer to the
3769credit of the Division of Florida Land Sales, Condominiums,
3770Timeshares, and Mobile Homes Trust Fund.
3771     2.a.  If a regulated party fails to pay a penalty, the
3772division shall thereupon issue an order directing that such
3773regulated party cease and desist from further operation until
3774such time as the penalty is paid; or the division may pursue
3775enforcement of the penalty in a court of competent jurisdiction.
3776     b.  If an owners' association or managing entity fails to
3777pay a civil penalty, the division may pursue enforcement in a
3778court of competent jurisdiction.
3779     (f)  In order to permit the regulated party an opportunity
3780either to appeal such decision administratively or to seek
3781relief in a court of competent jurisdiction, the order imposing
3782the penalty or the cease and desist order shall not become
3783effective until 20 days after the date of such order.
3784     (g)  Any action commenced by the division shall be brought
3785in the county in which the division has its executive offices or
3786in the county where the violation occurred.
3787     (h)  Notice to any regulated party shall be complete when
3788delivered by United States mail, return receipt requested, to
3789the party's address currently on file with the division or to
3790such other address at which the division is able to locate the
3791party. Every regulated party has an affirmative duty to notify
3792the division of any change of address at least 5 business days
3793prior to such change.
3794     (6)  The division has authority to adopt rules pursuant to
3795ss. 120.536(1) and 120.54 to implement and enforce the
3796provisions of this chapter.
3797     (7)(a)  The use of any unfair or deceptive act or practice
3798by any person in connection with the sales or other operations
3799of an exchange program or timeshare plan is a violation of this
3800chapter.
3801     (b)  Any violation of the Florida Deceptive and Unfair
3802Trade Practices Act, ss. 501.201 et seq., relating to the
3803creation, promotion, sale, operation, or management of any
3804timeshare plan shall also be a violation of this chapter.
3805     (c)  The division may is authorized to institute
3806proceedings against any such person and take any appropriate
3807action authorized in this section in connection therewith,
3808notwithstanding any remedies available to purchasers.
3809     (8)  The failure of any person to comply with any order of
3810the division is a violation of this chapter.
3811     Section 66.  Section 721.28, Florida Statutes, is amended
3812to read:
3813     721.28  Division of Florida Land Sales, Condominiums,
3814Timeshares, and Mobile Homes Trust Fund.--All funds collected by
3815the division and any amounts paid as fees or penalties under
3816this chapter shall be deposited in the State Treasury to the
3817credit of the Division of Florida Land Sales, Condominiums,
3818Timeshares, and Mobile Homes Trust Fund created by s. 718.509
3819498.019.
3820     Section 67.  Paragraph (c) of subsection (1) of section
3821721.301, Florida Statutes, is amended to read:
3822     721.301  Florida Timesharing, Vacation Club, and
3823Hospitality Program.--
3824     (1)
3825     (c)  The director may designate funds from the Division of
3826Florida Land Sales, Condominiums, Timeshares, and Mobile Homes
3827Trust Fund, not to exceed $50,000 annually, to support the
3828projects and proposals undertaken pursuant to paragraph (b). All
3829state trust funds to be expended pursuant to this section must
3830be matched equally with private moneys and shall comprise no
3831more than half of the total moneys expended annually.
3832     Section 68.  Section 721.50, Florida Statutes, is amended
3833to read:
3834     721.50  Short title.--This part may be cited as the
3835"McAllister Act" in recognition and appreciation for the years
3836of extraordinary and insightful contributions by Mr. Bryan C.
3837McAllister, Examinations Supervisor of the former, Division of
3838Florida Land Sales, Condominiums, and Mobile Homes.
3839     Section 69.  Subsection (1) of section 723.003, Florida
3840Statutes, is amended to read:
3841     723.003  Definitions.--As used in this chapter, the
3842following words and terms have the following meanings unless
3843clearly indicated otherwise:
3844     (1)  The term "division" means the Division of Florida Land
3845Sales, Condominiums, Timeshares, and Mobile Homes of the
3846Department of Business and Professional Regulation.
3847     Section 70.  Paragraph (e) of subsection (5) of section
3848723.006, Florida Statutes, is amended to read:
3849     723.006  Powers and duties of division.--In performing its
3850duties, the division has the following powers and duties:
3851     (5)  Notwithstanding any remedies available to mobile home
3852owners, mobile home park owners, and homeowners' associations,
3853if the division has reasonable cause to believe that a violation
3854of any provision of this chapter or related any rule promulgated
3855pursuant hereto has occurred, the division may institute
3856enforcement proceedings in its own name against a developer,
3857mobile home park owner, or homeowners' association, or its
3858assignee or agent, as follows:
3859     (e)1.  The division may impose a civil penalty against a
3860mobile home park owner or homeowners' association, or its
3861assignee or agent, for any violation of this chapter, a properly
3862adopted promulgated park rule or regulation, or a rule adopted
3863or regulation promulgated pursuant hereto. A penalty may be
3864imposed on the basis of each separate violation and, if the
3865violation is a continuing one, for each day of continuing
3866violation, but in no event may the penalty for each separate
3867violation or for each day of continuing violation exceed $5,000.
3868All amounts collected shall be deposited with the Chief
3869Financial Officer to the credit of the Division of Florida Land
3870Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund.
3871     2.  If a violator fails to pay the civil penalty, the
3872division shall thereupon issue an order directing that such
3873violator cease and desist from further violation until such time
3874as the civil penalty is paid or may pursue enforcement of the
3875penalty in a court of competent jurisdiction. If a homeowners'
3876association fails to pay the civil penalty, the division shall
3877thereupon pursue enforcement in a court of competent
3878jurisdiction, and the order imposing the civil penalty or the
3879cease and desist order shall not become effective until 20 days
3880after the date of such order. Any action commenced by the
3881division shall be brought in the county in which the division
3882has its executive offices or in which the violation occurred.
3883     Section 71.  Section 723.009, Florida Statutes, is amended
3884to read:
3885     723.009  Division of Florida Land Sales, Condominiums,
3886Timeshares, and Mobile Homes Trust Fund.--All proceeds from the
3887fees, penalties, and fines imposed pursuant to this chapter
3888shall be deposited into the Division of Florida Land Sales,
3889Condominiums, Timeshares, and Mobile Homes Trust Fund created by
3890s. 718.509 498.019. Moneys in this fund, as appropriated by the
3891Legislature pursuant to chapter 216, may be used to defray the
3892expenses incurred by the division in administering the
3893provisions of this chapter.
3894     Section 72.  Paragraph (c) of subsection (2) of section
3895723.0611, Florida Statutes, is amended to read:
3896     723.0611  Florida Mobile Home Relocation Corporation.--
3897     (2)
3898     (c)  The corporation shall, for purposes of s. 768.28, be
3899considered an agency of the state. Agents or employees of the
3900corporation, members of the board of directors of the
3901corporation, or representatives of the Division of Florida Land
3902Sales, Condominiums, Timeshares, and Mobile Homes shall be
3903considered officers, employees, or agents of the state, and
3904actions against them and the corporation shall be governed by s.
3905768.28.
3906     Section 73.  Except as otherwise expressly provided in this
3907act, this act shall take effect July 1, 2008.
3908
3909
3910
-----------------------------------------------------
3911
T I T L E  A M E N D M E N T
3912     Remove the entire title and insert:
3913
A bill to be entitled
3914An act relating to the Department of Business and Professional
3915Regulation; amending s. 718.111, F.S.; requiring that hazard
3916insurance be based upon the replacement cost of the property to
3917be insured as determined by an independent insurance appraisal
3918or update of a prior appraisal; requiring that the full
3919insurable value be determined at specified intervals; providing
3920a means by which an association may provide adequate hazard
3921insurance; authorizing an association to consider certain
3922information when determining coverage amounts; providing for
3923coverage by developer-controlled associations; providing that
3924policies may include deductibles as determined by the
3925association's board of directors; providing requirements and
3926guidelines for the establishment of such deductibles; requiring
3927that the amounts of deductibles be set at a meeting of the
3928board; providing requirements for such meeting; requiring that
3929an association controlled by unit owners operating as a
3930residential condominium use its best efforts to obtain and
3931maintain adequate insurance to protect the association and
3932property under its supervision or control; providing that a
3933declaration of condominium may provide that condominium property
3934consisting of freestanding buildings comprised of no more than
3935one building in or on such unit need not be insured by the
3936association if the declaration requires the unit owner to obtain
3937adequate insurance for the condominium property; authorizing an
3938association to obtain and maintain liability insurance for
3939directors and officers, insurance for the benefit of association
3940employees, and flood insurance for common elements, association
3941property, and units; requiring that every hazard insurance
3942policy issued or renewed on or after a specified date for the
3943purpose of protecting the condominium provide certain coverage;
3944requiring that such policies contain certain provisions;
3945providing that such policies issued to individual unit owners do
3946not provide rights of subrogation against the condominium
3947association; providing for the insurance of improvements or
3948additions benefiting fewer than all unit owners; requiring that
3949an association require each owner to provide evidence of a
3950current policy of hazard and liability insurance upon request;
3951limiting the frequency with which an association may make such a
3952request; authorizing an association to purchase coverage on
3953behalf of an owner under certain circumstances; providing for
3954the collection of the costs of such a policy; providing
3955responsibilities of the unit owner and association with regard
3956to reconstruction work and associated costs after a casualty
3957loss; authorizing a multicondominium association to operate such
3958condominiums as a single condominium for certain purposes by
3959majority vote of the members of all applicable condominiums;
3960providing that such election constitutes an amendment to the
3961declaration of all applicable condominiums; requiring that an
3962association maintain insurance or fidelity bonding for all
3963persons who control or disburse association funds; requiring
3964that such insurance policy or fidelity bond cover the maximum
3965funds in the custody of the association or its management agent
3966at any one time; defining the term "persons who control or
3967disburse funds of the association"; authorizing an association
3968to amend the declaration of condominium without regard to any
3969requirement for approval by mortgagees of amendments affecting
3970insurance requirements for the purpose of conforming the
3971declaration of condominium to certain coverage requirements;
3972providing that any portion of the condominium property required
3973to be insured by the association against casualty loss which is
3974damaged be reconstructed, repaired, or replaced as necessary by
3975the association as a common expense; providing that all hazard
3976insurance deductibles, uninsured losses, and other damages in
3977excess of hazard insurance coverage under the hazard insurance
3978policies maintained by the association are a common expense of
3979the condominium; providing exceptions; allocating responsibility
3980for certain costs of repair or reconstruction; authorizing an
3981association to opt out of certain requirements related to such
3982allocation of responsibility by majority vote; providing a
3983procedure by which a multicondominium association that has not
3984consolidated its financial operations may opt out of such
3985allocation of responsibility; requiring that a decision to opt
3986out be recorded; providing that such decision takes effect on
3987the date on which it is recorded; authorizing the reversal of
3988such decision; providing a procedure for reversal; providing
3989that an association is not obligated to pay for any
3990reconstruction or repair expenses for improvements made by an
3991owner or the development if an improvement benefits only the
3992unit for which it was installed; amending s. 718.115, F.S.;
3993requiring that certain expenses be designated as common
3994expenses; amending s. 718.116, F.S.; authorizing the designee of
3995a unit owner or mortgagee to request a certificate of
3996assessment; requiring that the fee for preparation of such
3997certificate be stated on the certificate; providing for the
3998establishment of such fees; providing for payment of the fee;
3999requiring that the fee be refunded if a planned sale or mortgage
4000does not occur; providing that any such refund is the obligation
4001of the unit owner and is collectable in the same manner as an
4002assessment; amending s. 718.117, F.S.; prohibiting the
4003distribution of proceeds from the sale of a condominium unit to
4004a lienholder from exceeding a unit owner's share of the
4005proceeds; creating s. 720.30851, F.S.; requiring that the
4006association provide a certificate signed by an officer or agent
4007of the association stating all assessments and other moneys owed
4008to the association by the parcel owner or mortgagee with respect
4009to the parcel within a specified period after the association's
4010receipt of a request for an estoppel certificate by an owner or
4011mortgagee; providing that any person other than a parcel owner
4012who relies upon a certificate receives the benefits and
4013protection thereof; providing that a summary proceeding may be
4014brought to compel the association to comply with the requirement
4015to provide a certificate; providing that the prevailing party is
4016entitled to recover reasonable attorney's fees; requiring that
4017the fee for preparation of such certificate be stated on the
4018certificate; providing for the establishment of such fees;
4019providing for payment of the fee; requiring that the fee be
4020refunded if a planned sale or mortgage does not occur; providing
4021that any such refund is the obligation of the unit owner and is
4022collectable in the same manner as an assessment; amending s.
402320.165, F.S.; changing the name of the Division of Florida Land
4024Sales, Condominiums, and Mobile Homes to the Division of Florida
4025Condominiums, Timeshares, and Mobile Homes and the Division of
4026Technology, Licensure, and Testing to the Division of
4027Technology; amending s. 215.20, F.S.; conforming the name of the
4028division's trust fund to correspond to the name change of the
4029division; amending s. 450.33, F.S.; removing the requirement for
4030a farm labor contractor to file a set of fingerprints with the
4031department; amending s. 455.203, F.S.; authorizing the
4032department to close and terminate deficient license applications
4033and to approve professional license applications meeting certain
4034criteria; amending s. 455.217, F.S.; conforming terminology to
4035changes made by the act; amending s. 455.2273, F.S.; authorizing
4036the section to apply to disciplinary guidelines adopted by all
4037boards and divisions; amending s. 468.841, F.S.; clarifying
4038exemption provisions for license provisions governing mold-
4039related services; amending s. 475.17, F.S.; revising
4040requirements for licensure as a real estate broker; amending s.
4041475.451, F.S.; deleting requirements relating to the submission
4042of certain real estate course rosters to the department;
4043amending s. 489.105, F.S.; clarifying that individuals and
4044business entities that sell manufactured and factory-built
4045buildings can legally enter into contracts for those sales;
4046amending s. 489.511, F.S.; revising requirements for taking the
4047electrical or alarm system contractor certification examination;
4048providing requirements for certification; amending s. 489.515,
4049F.S.; revising requirements for certification as a certified
4050contractor by the Electrical Contractors' Licensing Board to
4051reflect changes made to s. 489.511, F.S., by this act;
4052renumbering s. 498.009, F.S., relating to the location of the
4053division's offices; amending and renumbering s. 498.011, F.S.,
4054relating to payment of per diem, mileage, and other expenses for
4055division employees; providing for reimbursement of expenses for
4056on-site review; deleting the expense reimbursement for
4057inspection of subdivided lands; renumbering s. 498.013, F.S.,
4058relating to the authentication of records; amending and
4059renumbering s. 498.057, F.S., relating to service of process;
4060deleting provision that service may be made by delivering a copy
4061of the process to the division director; providing that the
4062division can be the petitioner or the plaintiff; repealing ss.
4063498.001, 498.003, 498.005, 498.007, 498.017, 498.021, 498.022,
4064498.023, 498.024, 498.025, 498.027, 498.028, 498.029, 498.031,
4065498.033, 498.035, 498.037, 498.039, 498.041, 498.047, 498.049,
4066498.051, 498.053, 498.059, 498.061, and 498.063, F.S., relating
4067to regulation of land sales practices; amending s. 548.0065,
4068F.S.; including amateur mixed martial arts in a provision
4069relating to the authority of the Florida State Boxing Commission
4070to suspend amateur matches for violation of certain health and
4071safety standards; amending s. 548.008, F.S.; removing
4072prohibition against holding amateur mixed martial arts matches
4073in this state; amending s. 548.041, F.S.; providing additional
4074licensure requirements for boxing participants; amending s.
4075718.501, F.S.; providing additional powers and duties of the
4076division; providing for additional enforcement proceedings for
4077carrying out the purposes of ch. 718, F.S.; deleting the payment
4078of money by a developer to a condominium association as a
4079permissible affirmative action; providing for actions of
4080conservator or receiver; providing for application to circuit
4081court for an order of restitution; providing for imposition of
4082civil penalties and award of court costs, attorney's fees, and
4083costs of investigation under certain circumstances; providing
4084for contracting for investigative services; providing for
4085acceptance of grants-in-aid; requiring the cooperation with
4086similar agencies on establishment of certain procedures,
4087standards, and forms; providing what constitutes completeness of
4088notice; authorizing the division to issue a notice to show
4089cause; providing conforming changes; amending s. 718.509, F.S.,
4090and transferring, renumbering, and amending s. 498.019, F.S.;
4091consolidating and revising provisions relating to the creation,
4092purposes, and sources of funds of the Division of Florida
4093Condominiums, Timeshares, and Mobile Homes Trust Fund; revising
4094provisions to conform to the change in division name; providing
4095for the deposit of moneys resulting from an administrative final
4096order; amending s. 721.03, F.S.; clarifying that timeshare plan
4097includes a nonspecific multisite timeshare plan; amending ss.
409873.073, 190.009, 192.037, 213.053, 326.002, 326.006, 380.05,
4099380.06, 380.0651, 381.0065, 455.116, 475.455, 494.008, 509.512,
4100517.301, 559.935, 718.103, 718.105, 718.1255, 718.5011, 718.502,
4101718.504, 718.508, 718.608, 719.103, 719.1255, 719.501, 719.502,
4102719.504, 719.508, 719.608, 720.301, 720.401, 721.05, 721.07,
4103721.08, 721.26, 721.28, 721.301, 721.50, 723.003, 723.006,
4104723.009, and 723.0611, F.S., to conform; providing effective
4105dates.


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