Florida Senate - 2008 COMMITTEE AMENDMENT
Bill No. SB 2084
044126
Senate
Comm: RCS
3/25/2008
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House
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The Committee on Regulated Industries (Dean) recommended the
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following amendment:
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Senate Amendment (with title amendment)
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Delete everything after the enacting clause
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and insert:
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Section 1. Section 468.431, Florida Statutes, is amended to
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read:
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468.431 Definitions.--As used in this part:
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(1) "Board" means the Board of Community Association
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Managers.
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(2)(1) "Community association" means a residential
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homeowners' association in which membership is a condition of
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ownership of a unit in a planned unit development, or of a lot
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for a home or a mobile home, or of a townhouse, villa,
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condominium, cooperative, or other residential unit which is part
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of a residential development scheme and which is authorized to
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impose a fee which may become a lien on the parcel.
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(3)(2) "Community association management" means any of the
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following practices requiring substantial specialized knowledge,
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judgment, and managerial skill when done for remuneration and
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when the association or associations served contain more than 50
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units or have an annual budget or budgets in excess of $100,000:
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controlling or disbursing funds of a community association,
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preparing budgets or other financial documents for a community
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association, assisting in the noticing or conduct of community
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association meetings, and coordinating maintenance for the
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residential development and other day-to-day services involved
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with the operation of a community association. A person who
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performs clerical or ministerial functions under the direct
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supervision and control of a licensed manager or who is charged
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only with performing the maintenance of a community association
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and who does not assist in any of the management services
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described in this subsection is not required to be licensed under
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this part.
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(4) "Community association management firm" means a
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corporation, limited liability company, partnership, trust,
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association, sole proprietorship, or other similar organization
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engaging in the business of community association management for
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the purpose of providing any of the services described in
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subsection (3).
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(5)(3) "Community association manager" means a natural
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person who is licensed pursuant to this part to perform community
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association management services.
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(4) "Council" means the Regulatory Council of Community
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Association Managers.
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(6)(5) "Department" means the Department of Business and
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Professional Regulation.
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(7) "Division" means the Division of Florida Land Sales,
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Condominiums, and Mobile Homes.
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Section 2. Section 468.4315, Florida Statutes, is amended
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to read:
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468.4315 Board Regulatory Council of Community Association
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Managers.--
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(1) The Board Regulatory Council of Community Association
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Managers is created within the department and shall consist of
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seven members appointed by the Governor and confirmed by the
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Senate.
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(a) Five members of the board council shall be licensed
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community association managers, one of whom may shall be a
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community association manager employed by a timeshare managing
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entity as described in ss. 468.438 and 721.13, who have held an
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active license for at least 5 years. The remaining two board
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council members shall be residents of this state, and must not be
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or ever have been connected with the business of community
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association management, and are not prohibited from serving
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because the member is or has been a resident or board member of a
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community association.
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(b) The Governor shall appoint members for terms of 4
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years. Such members shall serve until their successors are
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appointed. Members' service on the board council shall begin upon
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appointment and shall continue until their successors are
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appointed.
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(2) The board shall council may adopt rules relating to the
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licensure examination, continuing education requirements,
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continuing education providers, fees, and professional practice
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standards to assist the department in carrying out the duties and
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authorities conferred upon the department by this part.
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(3) The board To the extent the council is authorized to
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exercise functions otherwise exercised by a board pursuant to
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chapter 455, the provisions of chapter 455 and s. 20.165 relating
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to regulatory boards shall apply, including, but not limited to,
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provisions relating to board rules and the accountability and
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liability of board members. All proceedings and actions of the
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board council are subject to the provisions of chapter 120. In
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addition, the provisions of chapter 455 and s. 20.165 shall apply
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to the department in carrying out the duties and authorities
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conferred upon the department by this part.
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(4) The board shall establish a public education program
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relating to professional community association management.
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(5) Members of the board shall serve without compensation
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but are entitled to receive per diem and travel expenses pursuant
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to s. 112.061 while carrying out business approved by the board.
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(6) The responsibilities of the board include, but are not
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limited to:
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(a) Receiving input regarding issues of concern with
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respect to community association management and recommendations
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for changes in applicable laws.
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(b) Reviewing, evaluating, and advising the division
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concerning revisions and adoption of rules affecting community
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association management.
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(c) Recommending improvements, if needed, in the education
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programs offered by the division.
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Section 3. Section 468.432, Florida Statutes, is amended to
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read:
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468.432 Licensure of community association managers and
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community association management firms; exceptions.--
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(1) A person shall not manage or hold herself or himself
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out to the public as being able to manage a community association
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in this state unless she or he is licensed by the department in
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accordance with the provisions of this part. However, nothing in
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this part prohibits any person licensed in this state under any
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other law or court rule from engaging in the profession for which
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she or he is licensed.
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(2) As of January 1, 2009, a community association
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management firm or other similar organization may not engage or
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hold itself out to the public as being able to engage in the
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business of community association management in this state unless
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it is licensed by the department as a community association
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management firm in accordance with the provisions of this part.
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(a) A community association management firm or other
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similar organization desiring to be licensed as a community
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association management firm shall apply to the department on a
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form approved by the department and submit the application and
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licensure fees required by s. 468.435(1)(a) and (c). Each
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community association management firm applying for licensure
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under this subsection must be actively registered and authorized
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to do business in this state.
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(b) Each applicant shall designate on its application a
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licensed community association manager who shall respond to all
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inquires from and investigations by the department or division.
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(c) Each licensed community association management firm
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shall notify the department within 30 days after any change of
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information contained in the application upon which licensure is
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based.
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(d) Community association management firm licenses shall
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expire on September 30 of odd-numbered years and shall be renewed
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every 2 years. An application for renewal shall be accompanied by
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the renewal fee as required by s. 468.435(1)(d).
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(e) The department shall license each applicant whom the
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department certifies as meeting the requirements of this
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subsection.
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(f) If the license of at least one individual active
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community association manager member is not in force, the license
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of the community association management firm or other similar
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organization is canceled automatically during that time.
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(g) Any community association management firm or other
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similar organization agrees by being licensed that it will employ
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only licensed persons in the direct provision of community
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association management services as described in s. 468.431(3).
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(2) Nothing in this part prohibits a corporation,
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partnership, trust, association, or other like organization from
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engaging in the business of community association management
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without being licensed if it employs licensed natural persons in
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the direct provision of community association management
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services. Such corporation, partnership, trust, association, or
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other organization shall also file with the department a
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statement on a form approved by the department that it submits
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itself to the rules of the council and the department and the
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provisions of this part which the department deems applicable.
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Section 4. Section 468.433, Florida Statutes, is amended to
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read:
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468.433 Licensure by examination.--
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(1) A person desiring to be licensed as a community
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association manager shall apply to the department to take the
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licensure examination. Each applicant must file a complete set of
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fingerprints that have been taken by an authorized law
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enforcement officer, which set of fingerprints shall be submitted
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to the Department of Law Enforcement for state processing and to
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the Federal Bureau of Investigation for federal processing. The
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cost of processing shall be borne by the applicant.
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(2) The department shall examine each applicant who is at
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least 18 years of age, who has successfully completed all
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prelicensure education requirements, and who the department
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certifies is of good moral character.
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(a) Good moral character means a personal history of
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honesty, fairness, and respect for the rights of others and for
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the laws of this state and nation.
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(b) The department may refuse to certify an applicant only
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if:
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1. There is a substantial connection between the lack of
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good moral character of the applicant and the professional
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responsibilities of a community association manager; and
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2. The finding by the department of lack of good moral
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character is supported by clear and convincing evidence; and.
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3. The applicant is found to have provided management
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services requiring licensure without the requisite license.
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(c) When an applicant is found to be unqualified for a
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license because of a lack of good moral character, the department
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shall furnish the applicant a statement containing its findings,
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a complete record of the evidence upon which the determination
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was based, and a notice of the rights of the applicant to a
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rehearing and appeal.
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(d) The board council shall establish by rule the required
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amount of prelicensure education, which shall consist of not more
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than 24 hours of in-person instruction by a department-approved
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provider and which shall cover all areas of the examination
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specified in subsection (3). Such instruction shall be completed
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within 12 months prior to the date of the examination.
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Prelicensure education providers shall be considered continuing
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education providers for purposes of establishing provider
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approval fees. A licensee shall not be required to comply with
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the continuing education requirements of s. 468.4337 prior to the
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first license renewal. The department shall, by rule, set
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standards for exceptions to the requirement of in-person
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instruction in cases of hardship or disability.
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(3) The board council shall approve an examination for
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licensure. The examination must demonstrate that the applicant
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has a fundamental knowledge of state and federal laws relating to
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the operation of all types of community associations and state
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laws relating to corporations and nonprofit corporations, proper
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preparation of community association budgets, proper procedures
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for noticing and conducting community association meetings,
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insurance matters relating to community associations, and
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management skills.
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(4) The department shall issue a license to practice in
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this state as a community association manager to any qualified
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applicant who successfully completes the examination in
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accordance with this section and pays the appropriate fee.
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Section 5. Section 468.4337, Florida Statutes, is amended
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to read:
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468.4337 Continuing education.-- The department may not
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renew a license until the licensee submits proof that the
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licensee has completed the requisite hours of continuing
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education. No more than 10 hours of continuing education annually
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shall be required for renewal of a license. The number of hours,
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criteria, and course content shall be approved by the board
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council by rule.
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Section 6. Section 468.4338, Florida Statutes, is amended
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to read:
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468.4338 Reactivation; continuing education.-- The board
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council shall prescribe by rule continuing education requirements
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for reactivating a license. The continuing education requirements
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for reactivating a license may not exceed 10 classroom hours for
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each year the license was inactive.
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Section 7. Section 468.435, Florida Statutes, is amended to
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read:
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468.435 Fees; establishment; disposition.--
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(1) The board council shall, by rule, establish fees for
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the described purposes and within the ranges specified in this
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section:
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(a) Application fee: not less than $25, or more than $50.
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(b) Examination fee: not less than $25, or more than $100.
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(c) Initial license fee: not less than $25, or more than
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$100.
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(d) Renewal of license fee: not less than $25, or more than
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$100.
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(e) Delinquent license fee: not less than $25, or more than
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$50.
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(f) Inactive license fee: not less than $10, or more than
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$25.
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(2) Until the board council adopts rules establishing fees
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under subsection (1), the lower amount in each range shall apply.
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(3) Fees collected under this section shall be deposited to
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the credit of the Professional Regulation Trust Fund.
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(4) The board council shall establish fees that are
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adequate to fund the cost to implement the provisions of this
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part. Fees shall be based on the department estimates of the
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revenue required to implement this part and the provisions of law
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with respect to the regulation of community association managers.
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Section 8. Section 468.436, Florida Statutes, is amended to
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read:
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468.436 Disciplinary proceedings.--
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(1) The department shall investigate complaints and
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allegations of a violation of this part or chapter 455, or any
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rule adopted thereunder, which is filed against community
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association managers or firms or forwarded from other divisions
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of the Department of Business and Professional Regulation. After
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a complaint is received, the department shall conduct its inquiry
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with due regard for the interests of the affected parties. Within
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30 days after receipt of a complaint, the department shall
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acknowledge the complaint in writing and notify the complainant
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whether or not the complaint is within the jurisdiction of the
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department and whether or not additional information is needed by
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the department from the complainant. The department shall conduct
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an investigation and shall, within 90 days after receipt of the
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original complaint or of timely requested additional information,
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take action upon the complaint. However, failure to complete the
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investigation within 90 days does not prevent the department from
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continuing the investigation, accepting or considering evidence
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obtained or received after 90 days, or taking administrative
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action if reasonable cause exists to believe that a violation of
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this part or chapter 455 or a rule of the department has
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occurred. If an investigation is not completed within the time
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limits established in this subsection, the department shall, on a
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monthly basis, notify the complainant in writing of the status of
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the investigation. When reporting its action to the complainant,
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the department shall inform the complainant of any right to a
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hearing pursuant to ss. 120.569 and 120.57.
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(2)(1) The following acts constitute grounds for which the
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disciplinary actions in subsection (4) (3) may be taken:
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(a) Violation of any provision of s. 455.227(1).
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(b)1. Violation of any provision of this part.
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2. Violation of any lawful order or rule rendered or
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adopted by the department or the board council.
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3. Being convicted of or pleading nolo contendere to a
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felony in any court in the United States.
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4. Obtaining a license or certification or any other order,
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ruling, or authorization by means of fraud, misrepresentation, or
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concealment of material facts.
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5. Committing acts of gross misconduct or gross negligence
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in connection with the profession.
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6. Contracting, on behalf of an association, with any
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entity in which the licensee has a financial interest that is not
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disclosed.
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(3)(2) The board council shall specify by rule the acts or
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omissions that constitute a violation of subsection (2) (1).
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(4)(3) When the department finds any community association
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manager or firm guilty of any of the grounds set forth in
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subsection (2) (1), it may enter an order imposing one or more of
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the following penalties:
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(a) Denial of an application for licensure.
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(b) Revocation or suspension of a license.
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(c) Imposition of an administrative fine not to exceed
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$5,000 for each count or separate offense.
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(d) Issuance of a reprimand.
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(e) Placement of the community association manager on
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probation for a period of time and subject to such conditions as
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the department specifies.
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(f) Restriction of the authorized scope of practice by the
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community association manager.
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(5)(4) The department may shall reissue the license of a
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disciplined community association manager or firm upon
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certification by the department that the disciplined person or
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firm has complied with all of the terms and conditions set forth
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in the final order.
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Section 9. Paragraph (a) of subsection (1) of section
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718.110, Florida Statutes, is amended to read:
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718.110 Amendment of declaration; correction of error or
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omission in declaration by circuit court.--
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(1)(a) If the declaration fails to provide a method of
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amendment, The declaration may be amended as to all matters
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except those described in subsection (4) or subsection (8) if the
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amendment is approved by the owners of not less than a majority
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two-thirds of the units. If the declaration provides a method of
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amendment requiring approval by a majority of the voting
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interests, or less than a majority of the voting interests, the
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declaration shall prevail. Except as to those matters described
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in subsection (4) or subsection (8), no declaration recorded
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after April 1, 1992, shall require that amendments be approved by
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more than four-fifths of the voting interests.
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Section 10. Paragraph (d) is added to subsection (1) of
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section 718.111, Florida Statutes, and subsections (11), (12),
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and (13) of that section are amended, to read:
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718.111 The association.--
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(1) CORPORATE ENTITY.--
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(d) As required by s. 617.0830, an officer, director, or
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agent shall discharge his or her duties in good faith, with the
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care an ordinarily prudent person in a like position would
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exercise under similar circumstances, and in a manner he or she
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reasonably believes to be in the interests of the association.
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Regardless of any indemnification provision in the documents or
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contract, an officer, director, or agent is liable for monetary
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damages as provided in s. 617.0834 if such officer, director, or
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agent breached or failed to perform his or her duties and the
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breach of, or failure to perform, his or her duties constitutes a
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criminal violation of state law as provided in s. 617.0834, a
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transaction from which the officer or director derived an
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improper personal benefit, either directly or indirectly, or
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recklessness or an act or omission performed or omitted in bad
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faith, with malicious purpose, or in a manner exhibiting wanton
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and willful disregard of human rights, safety, or property.
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(11) INSURANCE.--In order to protect the safety, health,
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and welfare of the people of the State of Florida and to ensure
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consistency in the provision of insurance coverage to
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condominiums and their unit owners, paragraphs (a), (b), and (c)
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are deemed to apply to every residential condominium in the
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state, regardless of the date of its declaration of condominium.
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It is the intent of the Legislature to encourage lower or stable
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insurance premiums for associations described in this section.
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Therefore, the Legislature requires a report to be prepared by
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the Office of Insurance Regulation of the Department of Financial
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Services for publication 18 months from the effective date of
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this act, evaluating premium increases or decreases for
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associations, unit owner premium increases or decreases,
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recommended changes to better define common areas, or any other
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information the Office of Insurance Regulation deems appropriate.
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(a) A unit-owner controlled association operating a
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residential condominium shall use its best efforts to obtain and
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maintain adequate insurance to protect the association, the
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association property, the common elements, and the condominium
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property required to be insured by the association pursuant to
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paragraph (b). If the association is developer controlled, the
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association shall exercise due diligence to obtain and maintain
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such insurance. Failure to obtain and maintain adequate insurance
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during any period of developer control shall constitute a breach
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of fiduciary responsibility by the developer-appointed members of
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the board of directors of the association, unless said members
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can show that despite such failure, they have exercised due
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diligence. The declaration of condominium as originally recorded,
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or amended pursuant to procedures provided therein, may require
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that condominium property consisting of freestanding buildings
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where there is no more than one building in or on such unit need
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not be insured by the association if the declaration requires the
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unit owner to obtain adequate insurance for the condominium
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property. An association may also obtain and maintain liability
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insurance for directors and officers, insurance for the benefit
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of association employees, and flood insurance for common
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elements, association property, and units. Adequate insurance,
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regardless of any requirement in the declaration of condominium
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for coverage by the association for "full insurable value,"
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"replacement cost," or the like, may include reasonable
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deductibles as determined by the board based upon available funds
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or predetermined assessment authority at the time that the
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insurance is obtained.
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1. Windstorm insurance coverage for a group of no fewer
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than three communities created and operating under this chapter,
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chapter 719, chapter 720, or chapter 721 may be obtained and
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maintained for the communities if the insurance coverage is
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sufficient to cover an amount equal to the probable maximum loss
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for the communities for a 250-year windstorm event. Such probable
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maximum loss must be determined through the use of a competent
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model that has been accepted by the Florida Commission on
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Hurricane Loss Projection Methodology, and any policy of
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insurance coverage issued or renewed after July 1, 2008, must
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receive prior approval by the Office of Insurance Regulation
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before coverage is deemed adequate. Such insurance coverage is
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deemed adequate windstorm insurance for the purposes of this
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section.
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2. An association or group of associations may self-insure
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against claims against the association, the association property,
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and the condominium property required to be insured by an
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association, upon compliance with the applicable provisions of
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ss. 624.460-624.488, which shall be considered adequate insurance
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for the purposes of this section. A copy of each policy of
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insurance in effect shall be made available for inspection by
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unit owners at reasonable times.
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(b) Every hazard insurance policy issued or renewed on or
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after January 1, 2004, to protect the condominium shall provide
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primary coverage for:
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1. All portions of the condominium property located outside
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the units;
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2. The condominium property located inside the units as
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such property was initially installed, or replacements thereof of
436
like kind and quality and in accordance with the original plans
437
and specifications or, if the original plans and specifications
438
are not available, as they existed at the time the unit was
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initially conveyed; and
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3. All portions of the condominium property for which the
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declaration of condominium requires coverage by the association.
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Anything to the contrary notwithstanding, the terms "condominium
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property," "building," "improvements," "insurable improvements,"
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"common elements," "association property," or any other term
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found in the declaration of condominium which defines the scope
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of property or casualty insurance that a condominium association
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must obtain shall exclude all floor, wall, and ceiling coverings,
449
electrical fixtures, appliances, air conditioner or heating
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equipment, water heaters, water filters, built-in cabinets and
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countertops, and window treatments, including curtains, drapes,
452
blinds, hardware, and similar window treatment components, or
453
replacements of any of the foregoing which are located within the
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boundaries of a unit and serve only one unit and all air
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conditioning compressors that service only an individual unit,
456
whether or not located within the unit boundaries. The foregoing
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is intended to establish the property or casualty insuring
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responsibilities of the association and those of the individual
459
unit owner and do not serve to broaden or extend the perils of
460
coverage afforded by any insurance contract provided to the
461
individual unit owner. Beginning January 1, 2004, the association
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shall have the authority to amend the declaration of condominium,
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without regard to any requirement for mortgagee approval of
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amendments affecting insurance requirements, to conform the
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declaration of condominium to the coverage requirements of this
466
section.
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(c) Every hazard insurance policy issued or renewed on or
468
after January 1, 2004, to an individual unit owner shall provide
469
that the coverage afforded by such policy is excess over the
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amount recoverable under any other policy covering the same
471
property. Each insurance policy issued to an individual unit
472
owner providing such coverage shall be without rights of
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subrogation against the condominium association that operates the
474
condominium in which such unit owner's unit is located. All real
475
or personal property located within the boundaries of the unit
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owner's unit which is excluded from the coverage to be provided
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by the association as set forth in paragraph (b) shall be insured
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by the individual unit owner.
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(d) The association shall obtain and maintain adequate
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insurance or fidelity bonding of all persons who control or
481
disburse funds of the association. The insurance policy or
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fidelity bond must cover the maximum funds that will be in the
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custody of the association or its management agent at any one
484
time. As used in this paragraph, the term "persons who control or
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disburse funds of the association" includes, but is not limited
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to, those individuals authorized to sign checks and the
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president, secretary, and treasurer of the association. The
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association shall bear the cost of bonding.
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(e) The association shall pay the deductible for coverage
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of an element that is the responsibility of the association to
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repair or replace. The deductible shall be paid by the unit owner
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if the element is the responsibility of the unit owner to repair
493
or replace. A unit owner policy may not incur another deductible
494
if the deductible has already been exercised on the association
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policy for the same occurrence.
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(12) OFFICIAL RECORDS.--
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(a) From the inception of the association, the association
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shall maintain each of the following items, when applicable,
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which shall constitute the official records of the association:
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1. A copy of the plans, permits, warranties, and other
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items provided by the developer pursuant to s. 718.301(4).
502
2. A photocopy of the recorded declaration of condominium
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of each condominium operated by the association and of each
504
amendment to each declaration.
505
3. A photocopy of the recorded bylaws of the association
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and of each amendment to the bylaws.
507
4. A certified copy of the articles of incorporation of the
508
association, or other documents creating the association, and of
509
each amendment thereto.
510
5. A copy of the current rules of the association.
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6. A book or books which contain the minutes of all
512
meetings of the association, of the board of administration
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directors, and of unit owners, which minutes shall be retained
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for a period of not less than 7 years.
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7. A current roster of all unit owners and their mailing
516
addresses, unit identifications, voting certifications, and, if
517
known, telephone numbers. The association shall also maintain the
518
electronic mailing addresses and the numbers designated by unit
519
owners for receiving notice sent by electronic transmission of
520
those unit owners consenting to receive notice by electronic
521
transmission. The electronic mailing addresses and numbers
522
provided by unit owners to receive notice by electronic
523
transmission shall be removed from association records when
524
consent to receive notice by electronic transmission is revoked.
525
However, the association is not liable for an erroneous
526
disclosure of the electronic mail address or the number for
527
receiving electronic transmission of notices.
528
8. All current insurance policies of the association and
529
condominiums operated by the association.
530
9. A current copy of any management agreement, lease, or
531
other contract to which the association is a party or under which
532
the association or the unit owners have an obligation or
533
responsibility.
534
10. Bills of sale or transfer for all property owned by the
535
association.
536
11. Accounting records for the association and separate
537
accounting records for each condominium which the association
538
operates. All accounting records shall be maintained for a period
539
of not less than 7 years. Any person who knowingly or
540
intentionally defaces, destroys, or fails to create or maintain
541
accounting records is personally subject to a civil penalty
542
pursuant to s. 718.501(1)(d). The accounting records shall
543
include, but are not limited to:
544
a. Accurate, itemized, and detailed records of all receipts
545
and expenditures.
546
b. A current account and a monthly, bimonthly, or quarterly
547
statement of the account for each unit designating the name of
548
the unit owner, the due date and amount of each assessment, the
549
amount paid upon the account, and the balance due.
550
c. All audits, reviews, accounting statements, and
551
financial reports of the association or condominium.
552
d. All contracts for work to be performed. Bids for work to
553
be performed shall also be considered official records and shall
554
be maintained for a period of 1 year.
555
12. Ballots, sign-in sheets, voting proxies, and all other
556
papers relating to voting by unit owners, which shall be
557
maintained for a period of 1 year from the date of the election,
558
vote, or meeting to which the document relates.
559
13. All rental records, when the association is acting as
560
agent for the rental of condominium units.
561
14. A copy of the current question and answer sheet as
562
described by s. 718.504.
563
15. All other records of the association not specifically
564
included in the foregoing which are related to the operation of
565
the association.
566
16. A copy of the inspection report as provided in s.
567
718.301(4)(p).
568
(b) The official records of the association shall be
569
maintained within the state for at least 5 years. The records of
570
the association shall be made available to a unit owner within 45
571
miles of the condominium property within 5 working days after
572
receipt of written request by the board or its designee. This
573
paragraph may be complied with by having a copy of the official
574
records of the association available for inspection or copying on
575
the condominium property or association property. The association
576
may offer the option of making the records of the association
577
available to a unit owner electronically via the Internet or by
578
allowing the records to be viewed in electronic format on a
579
computer screen and printed upon request.
580
(c) The official records of the association are open to
581
inspection by any association member or the authorized
582
representative of such member at all reasonable times. The right
583
to inspect the records includes the right to make or obtain
584
copies, at the reasonable expense, if any, of the association
585
member. The association may adopt reasonable rules regarding the
586
frequency, time, location, notice, and manner of record
587
inspections and copying. The failure of an association to provide
588
the records within 10 working days after receipt of a written
589
request shall create a rebuttable presumption that the
590
association willfully failed to comply with this paragraph. A
591
unit owner who is denied access to official records is entitled
592
to the actual damages or minimum damages for the association's
593
willful failure to comply with this paragraph. The minimum
594
damages shall be $50 per calendar day up to 10 days, the
595
calculation to begin on the 11th working day after receipt of the
596
written request. The failure to permit inspection of the
597
association records as provided herein entitles any person
598
prevailing in an enforcement action to recover reasonable
599
attorney's fees from the person in control of the records who,
600
directly or indirectly, knowingly denied access to the records
601
for inspection. Any person who knowingly or intentionally
602
defaces, destroys, or fails to create or maintain accounting
603
records is personally subject to a civil penalty pursuant to s.
604
718.501(1)(d). The association shall maintain an adequate number
605
of copies of the declaration, articles of incorporation, bylaws,
606
and rules, and all amendments to each of the foregoing, as well
607
as the question and answer sheet provided for in s. 718.504 and
608
year-end financial information required in this section on the
609
condominium property to ensure their availability to unit owners
610
and prospective purchasers, and may charge its actual costs for
611
preparing and furnishing these documents to those requesting the
612
same. Notwithstanding the provisions of this paragraph, the
613
following records shall not be accessible to unit owners:
614
1. Any record protected by the lawyer-client privilege as
615
described in s. 90.502; and any record protected by the work-
616
product privilege, including any record prepared by an
617
association attorney or prepared at the attorney's express
618
direction; which reflects a mental impression, conclusion,
619
litigation strategy, or legal theory of the attorney or the
620
association, and which was prepared exclusively for civil or
621
criminal litigation or for adversarial administrative
622
proceedings, or which was prepared in anticipation of imminent
623
civil or criminal litigation or imminent adversarial
624
administrative proceedings until the conclusion of the litigation
625
or adversarial administrative proceedings.
626
2. Information obtained by an association in connection
627
with the approval of the lease, sale, or other transfer of a
628
unit.
629
3. Medical records of unit owners.
630
4. Social security numbers, driver's license numbers,
631
credit card numbers, and other personal identifying information
632
in possession of the association.
633
(d) The association shall prepare a question and answer
634
sheet as described in s. 718.504, and shall update it annually.
635
(e)1. The association or its authorized agent is not
636
required to provide a prospective purchaser or lienholder with
637
information about the condominium or the association other than
638
information or documents required by this chapter to be made
639
available or disclosed. The association or its authorized agent
640
may charge a reasonable fee to the prospective purchaser,
641
lienholder, or the current unit owner for providing good faith
642
responses to requests for information by or on behalf of a
643
prospective purchaser or lienholder, other than that required by
644
law, if the fee does not exceed $150 plus the reasonable cost of
645
photocopying and any attorney's fees incurred by the association
646
in connection with the response.
647
2. An association and its authorized agent are not liable
648
for providing such information in good faith pursuant to a
649
written request if the person providing the information includes
650
a written statement in substantially the following form: "The
651
responses herein are made in good faith and to the best of my
652
ability as to their accuracy."
653
(13) FINANCIAL REPORTING.--Within 90 days after the end of
654
the fiscal year, or annually on a date provided in the bylaws,
655
the association shall prepare and complete, or contract for the
656
preparation and completion of, a financial report for the
657
preceding fiscal year. Within 21 days after the final financial
658
report is completed by the association or received from the third
659
party, but not later than 120 days after the end of the fiscal
660
year or other date as provided in the bylaws, the association
661
shall mail to each unit owner at the address last furnished to
662
the association by the unit owner, or hand deliver to each unit
663
owner, a copy of the financial report or a notice that a copy of
664
the financial report will be mailed or hand delivered to the unit
665
owner, without charge, upon receipt of a written request from the
666
unit owner. The division shall adopt rules setting forth uniform
667
accounting principles and standards to be used by all
668
associations and shall adopt rules addressing financial reporting
669
requirements for multicondominium associations. The rules shall
670
include, but not be limited to, disclosure of at least a summary
671
of the reserves, including the information as to whether such
672
reserves are being funded at a level sufficient to prevent the
673
need for a special assessment to do the deferred maintenance or
674
replacement as required and, if not, what amount of assessment
675
will be necessary to bring such reserves up to the level that
676
would prevent a special assessment. The person preparing the
677
financial reports may rely on the inspection report as provided
678
for in s. 718.301(4)(p) for verification. The statement shall
679
confirm that the financial operations of the association meet
680
fiscal and fiduciary standards of this chapter. In adopting such
681
rules, the division shall consider the number of members and
682
annual revenues of an association. Financial reports shall be
683
prepared as follows:
684
(a) An association that meets the criteria of this
685
paragraph shall prepare or cause to be prepared a complete set of
686
financial statements in accordance with generally accepted
687
accounting principles. The financial statements shall be based
688
upon the association's total annual revenues, as follows:
689
1. An association with total annual revenues of $100,000 or
690
more, but less than $200,000, shall prepare compiled financial
691
statements.
692
2. An association with total annual revenues of at least
693
$200,000, but less than $400,000, shall prepare reviewed
694
financial statements.
695
3. An association with total annual revenues of $400,000 or
696
more shall prepare audited financial statements.
697
(b)1. An association with total annual revenues of less
698
than $100,000 shall prepare a report of cash receipts and
699
expenditures.
700
2. An association which operates less than 50 units,
701
regardless of the association's annual revenues, shall prepare a
702
report of cash receipts and expenditures in lieu of financial
703
statements required by paragraph (a).
704
3. A report of cash receipts and disbursements must
705
disclose the amount of receipts by accounts and receipt
706
classifications and the amount of expenses by accounts and
707
expense classifications, including, but not limited to, the
708
following, as applicable: costs for security, professional and
709
management fees and expenses, taxes, costs for recreation
710
facilities, expenses for refuse collection and utility services,
711
expenses for lawn care, costs for building maintenance and
712
repair, insurance costs, administration and salary expenses, and
713
reserves accumulated and expended for capital expenditures,
714
deferred maintenance, and any other category for which the
715
association maintains reserves.
716
(c) An association may prepare or cause to be prepared,
717
without a meeting of or approval by the unit owners:
718
1. Compiled, reviewed, or audited financial statements, if
719
the association is required to prepare a report of cash receipts
720
and expenditures;
721
2. Reviewed or audited financial statements, if the
722
association is required to prepare compiled financial statements;
723
or
724
3. Audited financial statements if the association is
725
required to prepare reviewed financial statements.
726
(d) If approved by a majority of the voting interests
727
present at a properly called meeting of the association, an
728
association may prepare or cause to be prepared:
729
1. A report of cash receipts and expenditures in lieu of a
730
compiled, reviewed, or audited financial statement;
731
2. A report of cash receipts and expenditures or a compiled
732
financial statement in lieu of a reviewed or audited financial
733
statement; or
734
3. A report of cash receipts and expenditures, a compiled
735
financial statement, or a reviewed financial statement in lieu of
736
an audited financial statement.
737
738
Such meeting and approval must occur prior to the end of the
739
fiscal year and is effective only for the fiscal year in which
740
the vote is taken. With respect to an association to which the
741
developer has not turned over control of the association, all
742
unit owners, including the developer, may vote on issues related
743
to the preparation of financial reports for the first 2 fiscal
744
years of the association's operation, beginning with the fiscal
745
year in which the declaration is recorded. Thereafter, all unit
746
owners except the developer may vote on such issues until control
747
is turned over to the association by the developer. Any audit or
748
review prepared under this section shall be paid by the developer
749
if done prior to turnover of control of the association. An
750
association may not waive the financial reporting requirements of
751
this section for more than 2 consecutive years.
752
Section 11. Subsection (2) of section 718.112, Florida
753
Statutes, is amended to read:
754
718.112 Bylaws.--
755
(2) REQUIRED PROVISIONS.--The bylaws shall provide for the
756
following and, if they do not do so, shall be deemed to include
757
the following:
758
(a) Administration.--
759
1. The form of administration of the association shall be
760
described indicating the title of the officers and board of
761
administration and specifying the powers, duties, manner of
762
selection and removal, and compensation, if any, of officers and
763
boards. In the absence of such a provision, the board of
764
administration shall be composed of five members, except in the
765
case of a condominium which has five or fewer units, in which
766
case in a not-for-profit corporation the board shall consist of
767
not fewer than three members. In the absence of provisions to the
768
contrary in the bylaws, the board of administration shall have a
769
president, a secretary, and a treasurer, who shall perform the
770
duties of such officers customarily performed by officers of
771
corporations. Unless prohibited in the bylaws, the board of
772
administration may appoint other officers and grant them the
773
duties it deems appropriate. Unless otherwise provided in the
774
bylaws, the officers shall serve without compensation and at the
775
pleasure of the board of administration. Unless otherwise
776
provided in the bylaws, the members of the board shall serve
777
without compensation.
778
2. When a unit owner files a written inquiry by certified
779
mail with the board of administration, the board shall respond in
780
writing to the unit owner within 30 days of receipt of the
781
inquiry. The board's response shall either give a substantive
782
response to the inquirer, notify the inquirer that a legal
783
opinion has been requested, or notify the inquirer that advice
784
has been requested from the division. If the board requests
785
advice from the division, the board shall, within 10 days of its
786
receipt of the advice, provide in writing a substantive response
787
to the inquirer. If a legal opinion is requested, the board
788
shall, within 60 days after the receipt of the inquiry, provide
789
in writing a substantive response to the inquiry. The failure to
790
provide a substantive response to the inquiry as provided herein
791
precludes the board from recovering attorney's fees and costs in
792
any subsequent litigation, administrative proceeding, or
793
arbitration arising out of the inquiry. The association may
794
through its board of administration adopt reasonable rules and
795
regulations regarding the frequency and manner of responding to
796
unit owner inquiries, one of which may be that the association is
797
only obligated to respond to one written inquiry per unit in any
798
given 30-day period. In such a case, any additional inquiry or
799
inquiries must be responded to in the subsequent 30-day period,
800
or periods, as applicable.
801
(b) Quorum; voting requirements; proxies.--
802
1. Unless a lower number is provided in the bylaws, the
803
percentage of voting interests required to constitute a quorum at
804
a meeting of the members shall be a majority of the voting
805
interests. Unless otherwise provided in this chapter or in the
806
declaration, articles of incorporation, or bylaws, and except as
807
provided in subparagraph (d)3., decisions shall be made by owners
808
of a majority of the voting interests represented at a meeting at
809
which a quorum is present.
810
2. Except as specifically otherwise provided herein, after
811
January 1, 1992, unit owners may not vote by general proxy, but
812
may vote by limited proxies substantially conforming to a limited
813
proxy form adopted by the division. Votes allocated to units
814
owned by the association may not be cast by proxy, ballot, or
815
otherwise for any purpose. However, proxies may be used to
816
establish a quorum. Limited proxies and general proxies may be
817
used to establish a quorum. Limited proxies shall be used for
818
votes taken to waive or reduce reserves in accordance with
819
subparagraph (f)2.; for votes taken to waive the financial
820
reporting requirements of s. 718.111(13); for votes taken to
821
amend the declaration pursuant to s. 718.110; for votes taken to
822
amend the articles of incorporation or bylaws pursuant to this
823
section; and for any other matter for which this chapter requires
824
or permits a vote of the unit owners. Except as provided in
825
paragraph (d), after January 1, 1992, no proxy, limited or
826
general, shall be used in the election of board members. General
827
proxies may be used for other matters for which limited proxies
828
are not required, and may also be used in voting for
829
nonsubstantive changes to items for which a limited proxy is
830
required and given. Notwithstanding the provisions of this
831
subparagraph, unit owners may vote in person at unit owner
832
meetings. Nothing contained herein shall limit the use of general
833
proxies or require the use of limited proxies for any agenda item
834
or election at any meeting of a timeshare condominium
835
association.
836
3. Any proxy given shall be effective only for the specific
837
meeting for which originally given and any lawfully adjourned
838
meetings thereof. In no event shall any proxy be valid for a
839
period longer than 90 days after the date of the first meeting
840
for which it was given. Every proxy is revocable at any time at
841
the pleasure of the unit owner executing it.
842
4. A member of the board of administration or a committee
843
may submit in writing his or her agreement or disagreement with
844
any action taken at a meeting that the member did not attend.
845
This agreement or disagreement may not be used as a vote for or
846
against the action taken and may not be used for the purposes of
847
creating a quorum.
848
5. When any of the board or committee members meet by
849
telephone conference, those board or committee members attending
850
by telephone conference may be counted toward obtaining a quorum
851
and may vote by telephone. A telephone speaker must be used so
852
that the conversation of those board or committee members
853
attending by telephone may be heard by the board or committee
854
members attending in person as well as by any unit owners present
855
at a meeting.
856
(c) Board of administration meetings.--Meetings of the
857
board of administration at which a quorum of the members is
858
present shall be open to all unit owners. Any unit owner may tape
859
record or videotape meetings of the board of administration. The
860
right to attend such meetings includes the right to speak at such
861
meetings with reference to all designated agenda items. The
862
division shall adopt reasonable rules governing the tape
863
recording and videotaping of the meeting. The association may
864
adopt written reasonable rules governing the frequency, duration,
865
and manner of unit owner statements. Adequate notice of all
866
meetings, which notice shall specifically incorporate an
867
identification of agenda items, shall be posted conspicuously on
868
the condominium property at least 48 continuous hours preceding
869
the meeting except in an emergency. If 20 percent of the voting
870
interests petition the board to address an item of business, the
871
board shall at its next regular board meeting or at a special
872
meeting of the board, but not later than 60 days after the
873
receipt of the petition, take up the petitioned item on the
874
agenda. Any item not included on the notice may be taken up on an
875
emergency basis by at least a majority plus one of the members of
876
the board. Such emergency action shall be noticed and ratified at
877
the next regular meeting of the board. However, written notice of
878
any meeting at which nonemergency special assessments, or at
879
which amendment to rules regarding unit use, will be considered
880
shall be mailed, delivered, or electronically transmitted to the
881
unit owners and posted conspicuously on the condominium property
882
not less than 14 days prior to the meeting. Evidence of
883
compliance with this 14-day notice shall be made by an affidavit
884
executed by the person providing the notice and filed among the
885
official records of the association. Upon notice to the unit
886
owners, the board shall by duly adopted rule designate a specific
887
location on the condominium property or association property upon
888
which all notices of board meetings shall be posted. If there is
889
no condominium property or association property upon which
890
notices can be posted, notices of board meetings shall be mailed,
891
delivered, or electronically transmitted at least 14 days before
892
the meeting to the owner of each unit. In lieu of or in addition
893
to the physical posting of notice of any meeting of the board of
894
administration on the condominium property, the association may,
895
by reasonable rule, adopt a procedure for conspicuously posting
896
and repeatedly broadcasting the notice and the agenda on a
897
closed-circuit cable television system serving the condominium
898
association. However, if broadcast notice is used in lieu of a
899
notice posted physically on the condominium property, the notice
900
and agenda must be broadcast at least four times every broadcast
901
hour of each day that a posted notice is otherwise required under
902
this section. When broadcast notice is provided, the notice and
903
agenda must be broadcast in a manner and for a sufficient
904
continuous length of time so as to allow an average reader to
905
observe the notice and read and comprehend the entire content of
906
the notice and the agenda. Notice of any meeting in which regular
907
or special assessments against unit owners are to be considered
908
for any reason shall specifically state contain a statement that
909
assessments will be considered and the nature, estimated cost,
910
and description of any such assessments. Meetings of a committee
911
to take final action on behalf of the board or make
912
recommendations to the board regarding the association budget are
913
subject to the provisions of this paragraph. Meetings of a
914
committee that does not take final action on behalf of the board
915
or make recommendations to the board regarding the association
916
budget are subject to the provisions of this section, unless
917
those meetings are exempted from this section by the bylaws of
918
the association. Notwithstanding any other law, the requirement
919
that board meetings and committee meetings be open to the unit
920
owners is inapplicable to meetings between the board or a
921
committee and the association's attorney, with respect to
922
proposed or pending litigation, when the meeting is held for the
923
purpose of seeking or rendering legal advice.
924
(d) Unit owner meetings.--
925
1. There shall be an annual meeting of the unit owners held
926
at the location provided in the association bylaws and, if the
927
bylaws are silent as to the location, the meeting shall be held
928
within 30 miles of the condominium property. Unless the bylaws
929
provide otherwise, a vacancy on the board caused by the
930
expiration of a director's term shall be filled by electing a new
931
board member, and the election shall be by secret ballot;
932
however, if the number of vacancies equals or exceeds the number
933
of candidates, no election is required. If there is no provision
934
in the bylaws for terms of the members of the board, The terms of
935
all members of the board shall expire upon the election of their
936
successors at the annual meeting and they may stand for
937
reelection. However, if no person is interested in or
938
demonstrates an intention to run for the position of a board
939
member whose term has expired according to the provisions of this
940
subparagraph, such board member whose term has expired shall be
941
automatically reappointed to the board of directors and need not
942
stand for reelection. Coowners of a unit may not serve as members
943
of the board of directors at the same time. Any unit owner
944
desiring to be a candidate for board membership shall comply with
945
subparagraph 3. A person who has been convicted of any felony by
946
any court of record in the United States and who has not had his
947
or her right to vote restored pursuant to law in the jurisdiction
948
of his or her residence is not eligible for board membership
949
unless such felon's civil rights have been restored for a period
950
of no less than 5 years as of the date on which such person seeks
951
election to the board. The validity of an action by the board is
952
not affected if it is later determined that a member of the board
953
is ineligible for board membership due to having been convicted
954
of a felony.
955
2. The bylaws shall provide the method of calling meetings
956
of unit owners, including annual meetings. Written notice, which
957
notice must include an agenda, shall be mailed, hand delivered,
958
or electronically transmitted to each unit owner at least 14 days
959
prior to the annual meeting and shall be posted in a conspicuous
960
place on the condominium property at least 14 continuous days
961
preceding the annual meeting. Upon notice to the unit owners, the
962
board shall by duly adopted rule designate a specific location on
963
the condominium property or association property upon which all
964
notices of unit owner meetings shall be posted; however, if there
965
is no condominium property or association property upon which
966
notices can be posted, this requirement does not apply. In lieu
967
of or in addition to the physical posting of notice of any
968
meeting of the unit owners on the condominium property, the
969
association may, by reasonable rule, adopt a procedure for
970
conspicuously posting and repeatedly broadcasting the notice and
971
the agenda on a closed-circuit cable television system serving
972
the condominium association. However, if broadcast notice is used
973
in lieu of a notice posted physically on the condominium
974
property, the notice and agenda must be broadcast at least four
975
times every broadcast hour of each day that a posted notice is
976
otherwise required under this section. When broadcast notice is
977
provided, the notice and agenda must be broadcast in a manner and
978
for a sufficient continuous length of time so as to allow an
979
average reader to observe the notice and read and comprehend the
980
entire content of the notice and the agenda. Unless a unit owner
981
waives in writing the right to receive notice of the annual
982
meeting, such notice shall be hand delivered, mailed, or
983
electronically transmitted to each unit owner. Notice for
984
meetings and notice for all other purposes shall be mailed to
985
each unit owner at the address last furnished to the association
986
by the unit owner, or hand delivered to each unit owner. However,
987
if a unit is owned by more than one person, the association shall
988
provide notice, for meetings and all other purposes, to that one
989
address which the developer initially identifies for that purpose
990
and thereafter as one or more of the owners of the unit shall so
991
advise the association in writing, or if no address is given or
992
the owners of the unit do not agree, to the address provided on
993
the deed of record. An officer of the association, or the manager
994
or other person providing notice of the association meeting,
995
shall provide an affidavit or United States Postal Service
996
certificate of mailing, to be included in the official records of
997
the association affirming that the notice was mailed or hand
998
delivered, in accordance with this provision.
999
3. The members of the board shall be elected by written
1000
ballot or voting machine. Proxies shall in no event be used in
1001
electing the board, either in general elections or elections to
1002
fill vacancies caused by recall, resignation, or otherwise,
1003
unless otherwise provided in this chapter. Not less than 60 days
1004
before a scheduled election, the association shall mail, deliver,
1005
or electronically transmit, whether by separate association
1006
mailing or included in another association mailing, delivery, or
1007
transmission, including regularly published newsletters, to each
1008
unit owner entitled to a vote, a first notice of the date of the
1009
election along with a certification form provided by the division
1010
attesting that he or she has read and understands, to the best of
1011
his or her ability, the governing documents of the association
1012
and the provisions of this chapter and any applicable rules. Any
1013
unit owner or other eligible person desiring to be a candidate
1014
for the board must give written notice to the association not
1015
less than 40 days before a scheduled election. Together with the
1016
written notice and agenda as set forth in subparagraph 2., the
1017
association shall mail, deliver, or electronically transmit a
1018
second notice of the election to all unit owners entitled to vote
1019
therein, together with a ballot which shall list all candidates.
1020
Upon request of a candidate, the association shall include an
1021
information sheet, no larger than 81/2 inches by 11 inches, which
1022
must be furnished by the candidate not less than 35 days before
1023
the election, along with the signed certification form provided
1024
for in this subparagraph, to be included with the mailing,
1025
delivery, or transmission of the ballot, with the costs of
1026
mailing, delivery, or electronic transmission and copying to be
1027
borne by the association. The association is not liable for the
1028
contents of the information sheets prepared by the candidates. In
1029
order to reduce costs, the association may print or duplicate the
1030
information sheets on both sides of the paper. The division shall
1031
by rule establish voting procedures consistent with the
1032
provisions contained herein, including rules establishing
1033
procedures for giving notice by electronic transmission and rules
1034
providing for the secrecy of ballots. Elections shall be decided
1035
by a plurality of those ballots cast. There shall be no quorum
1036
requirement; however, at least 20 percent of the eligible voters
1037
must cast a ballot in order to have a valid election of members
1038
of the board. No unit owner shall permit any other person to vote
1039
his or her ballot, and any such ballots improperly cast shall be
1040
deemed invalid, provided any unit owner who violates this
1041
provision may be fined by the association in accordance with s.
1042
718.303. A unit owner who needs assistance in casting the ballot
1043
for the reasons stated in s. 101.051 may obtain assistance in
1044
casting the ballot. The regular election shall occur on the date
1045
of the annual meeting. The provisions of this subparagraph shall
1046
not apply to timeshare condominium associations. Notwithstanding
1047
the provisions of this subparagraph, an election is not required
1048
unless more candidates file notices of intent to run or are
1049
nominated than board vacancies exist.
1050
4. Any approval by unit owners called for by this chapter
1051
or the applicable declaration or bylaws, including, but not
1052
limited to, the approval requirement in s. 718.111(8), shall be
1053
made at a duly noticed meeting of unit owners and shall be
1054
subject to all requirements of this chapter or the applicable
1055
condominium documents relating to unit owner decisionmaking,
1056
except that unit owners may take action by written agreement,
1057
without meetings, on matters for which action by written
1058
agreement without meetings is expressly allowed by the applicable
1059
bylaws or declaration or any statute that provides for such
1060
action.
1061
5. Unit owners may waive notice of specific meetings if
1062
allowed by the applicable bylaws or declaration or any statute.
1063
If authorized by the bylaws, notice of meetings of the board of
1064
administration, unit owner meetings, except unit owner meetings
1065
called to recall board members under paragraph (j), and committee
1066
meetings may be given by electronic transmission to unit owners
1067
who consent to receive notice by electronic transmission.
1068
6. Unit owners shall have the right to participate in
1069
meetings of unit owners with reference to all designated agenda
1070
items. However, the association may adopt reasonable rules
1071
governing the frequency, duration, and manner of unit owner
1072
participation.
1073
7. Any unit owner may tape record or videotape a meeting of
1074
the unit owners subject to reasonable rules adopted by the
1075
division.
1076
8. Unless otherwise provided in the bylaws, any vacancy
1077
occurring on the board before the expiration of a term may be
1078
filled by the affirmative vote of the majority of the remaining
1079
directors, even if the remaining directors constitute less than a
1080
quorum, or by the sole remaining director. In the alternative, a
1081
board may hold an election to fill the vacancy, in which case the
1082
election procedures must conform to the requirements of
1083
subparagraph 3. unless the association has opted out of the
1084
statutory election process, in which case the bylaws of the
1085
association control. Unless otherwise provided in the bylaws, a
1086
board member appointed or elected under this section shall fill
1087
the vacancy for the unexpired term of the seat being filled.
1088
Filling vacancies created by recall is governed by paragraph (j)
1089
and rules adopted by the division.
1090
1091
Notwithstanding subparagraphs (b)2. and (d)3., an association
1092
may, by the affirmative vote of a majority of the total voting
1093
interests, provide for different voting and election procedures
1094
in its bylaws, which vote may be by a proxy specifically
1095
delineating the different voting and election procedures. The
1096
different voting and election procedures may provide for
1097
elections to be conducted by limited or general proxy.
1098
(e) Budget meeting.--
1099
1. Any meeting at which a proposed annual budget of an
1100
association will be considered by the board or unit owners shall
1101
be open to all unit owners. At least 14 days prior to such a
1102
meeting, the board shall hand deliver to each unit owner, mail to
1103
each unit owner at the address last furnished to the association
1104
by the unit owner, or electronically transmit to the location
1105
furnished by the unit owner for that purpose a notice of such
1106
meeting and a copy of the proposed annual budget. An officer or
1107
manager of the association, or other person providing notice of
1108
such meeting, shall execute an affidavit evidencing compliance
1109
with such notice requirement, and such affidavit shall be filed
1110
among the official records of the association.
1111
2.a. If a board adopts in any fiscal year an annual budget
1112
which requires assessments against unit owners which exceed 115
1113
percent of assessments for the preceding fiscal year, the board
1114
shall conduct a special meeting of the unit owners to consider a
1115
substitute budget if the board receives, within 21 days after
1116
adoption of the annual budget, a written request for a special
1117
meeting from at least 10 percent of all voting interests. The
1118
special meeting shall be conducted within 60 days after adoption
1119
of the annual budget. At least 14 days prior to such special
1120
meeting, the board shall hand deliver to each unit owner, or mail
1121
to each unit owner at the address last furnished to the
1122
association, a notice of the meeting. An officer or manager of
1123
the association, or other person providing notice of such meeting
1124
shall execute an affidavit evidencing compliance with this notice
1125
requirement, and such affidavit shall be filed among the official
1126
records of the association. Unit owners may consider and adopt a
1127
substitute budget at the special meeting. A substitute budget is
1128
adopted if approved by a majority of all voting interests unless
1129
the bylaws require adoption by a greater percentage of voting
1130
interests. If there is not a quorum at the special meeting or a
1131
substitute budget is not adopted, the annual budget previously
1132
adopted by the board shall take effect as scheduled.
1133
b. Any determination of whether assessments exceed 115
1134
percent of assessments for the prior fiscal year shall exclude
1135
any authorized provision for reasonable reserves for repair or
1136
replacement of the condominium property, anticipated expenses of
1137
the association which the board does not expect to be incurred on
1138
a regular or annual basis, or assessments for betterments to the
1139
condominium property.
1140
c. If the developer controls the board, assessments shall
1141
not exceed 115 percent of assessments for the prior fiscal year
1142
unless approved by a majority of all voting interests.
1143
(f) Annual budget.--
1144
1. The proposed annual budget of estimated revenues and
1145
common expenses shall be detailed and shall show the amounts
1146
budgeted by accounts and expense classifications, including, if
1147
applicable, but not limited to, those expenses listed in s.
1148
718.504(21). A multicondominium association shall adopt a
1149
separate budget of common expenses for each condominium the
1150
association operates and shall adopt a separate budget of common
1151
expenses for the association. In addition, if the association
1152
maintains limited common elements with the cost to be shared only
1153
by those entitled to use the limited common elements as provided
1154
for in s. 718.113(1), the budget or a schedule attached thereto
1155
shall show amounts budgeted therefor. If, after turnover of
1156
control of the association to the unit owners, any of the
1157
expenses listed in s. 718.504(21) are not applicable, they need
1158
not be listed.
1159
2. In addition to annual operating expenses, the budget
1160
shall include reserve accounts for capital expenditures and
1161
deferred maintenance. These accounts shall include, but are not
1162
limited to, roof replacement, building painting, and pavement
1163
resurfacing, regardless of the amount of deferred maintenance
1164
expense or replacement cost, and for any other item for which the
1165
deferred maintenance expense or replacement cost exceeds $10,000.
1166
The amount to be reserved shall be computed by means of a formula
1167
which is based upon estimated remaining useful life and estimated
1168
replacement cost or deferred maintenance expense of each reserve
1169
item. The association may adjust replacement reserve assessments
1170
annually to take into account any changes in estimates or
1171
extension of the useful life of a reserve item caused by deferred
1172
maintenance. This subsection does not apply to an adopted budget
1173
in which the members of an association have determined, by a
1174
majority vote at a duly called meeting of the association, to
1175
provide no reserves or less reserves than required by this
1176
subsection. However, prior to turnover of control of an
1177
association by a developer to unit owners other than a developer
1178
pursuant to s. 718.301, the developer may vote to waive the
1179
reserves or reduce the funding of reserves for the first 2 fiscal
1180
years of the association's operation, beginning with the fiscal
1181
year in which the initial declaration is recorded, after which
1182
time reserves may be waived or reduced only upon the vote of a
1183
majority of all nondeveloper voting interests voting in person or
1184
by limited proxy at a duly called meeting of the association. If
1185
a meeting of the unit owners has been called to determine whether
1186
to waive or reduce the funding of reserves, and no such result is
1187
achieved or a quorum is not attained, the reserves as included in
1188
the budget shall go into effect. After the turnover, the
1189
developer may vote its voting interest to waive or reduce the
1190
funding of reserves.
1191
3. Reserve funds and any interest accruing thereon shall
1192
remain in the reserve account or accounts, and shall be used only
1193
for authorized reserve expenditures unless their use for other
1194
purposes is approved in advance by a majority vote at a duly
1195
called meeting of the association. Prior to turnover of control
1196
of an association by a developer to unit owners other than the
1197
developer pursuant to s. 718.301, the developer-controlled
1198
association shall not vote to use reserves for purposes other
1199
than that for which they were intended without the approval of a
1200
majority of all nondeveloper voting interests, voting in person
1201
or by limited proxy at a duly called meeting of the association.
1202
4. The only voting interests which are eligible to vote on
1203
questions that involve waiving or reducing the funding of
1204
reserves, or using existing reserve funds for purposes other than
1205
purposes for which the reserves were intended, are the voting
1206
interests of the units subject to assessment to fund the reserves
1207
in question. Proxy questions relating to waiving or reducing the
1208
funding of reserves or using existing reserve funds for purposes
1209
other than purposes for which the reserves were intended shall
1210
contain the following statement in capitalized, bold letters in a
1211
font size larger than any other used on the face of the proxy
1212
ballot: Waiving of reserves, in whole or in part, or allowing
1213
alternate uses of existing reserves may result in unit owner
1214
liability for payment of unanticipated special assessments
1215
regarding those reserve items.
1216
5. Notwithstanding subparagraph 3., the association, after
1217
turnover of control of the association may, in case of a
1218
catastrophic event, use reserve funds for nonscheduled purposes
1219
to mitigate damages or to make the condominium accessible for
1220
repairs.
1221
(g) Assessments.--The manner of collecting from the unit
1222
owners their shares of the common expenses shall be stated in the
1223
bylaws. Assessments shall be made against units not less
1224
frequently than quarterly in an amount which is not less than
1225
that required to provide funds in advance for payment of all of
1226
the anticipated current operating expenses and for all of the
1227
unpaid operating expenses previously incurred. Nothing in this
1228
paragraph shall preclude the right of an association to
1229
accelerate assessments of an owner delinquent in payment of
1230
common expenses. Accelerated assessments shall be due and payable
1231
on the date the claim of lien is filed. Such accelerated
1232
assessments shall include the amounts due for the remainder of
1233
the budget year in which the claim of lien was filed.
1234
(h) Amendment of bylaws.--
1235
1. The method by which the bylaws may be amended consistent
1236
with the provisions of this chapter shall be stated. If the
1237
bylaws fail to provide a method of amendment, the bylaws may be
1238
amended if the amendment is approved by the owners of not less
1239
than a majority of the voting interests present in person or by
1240
proxy at a duly called meeting two-thirds of the voting
1241
interests. If the bylaws provide a method of amendment requiring
1242
approval by a majority of the voting interests, or less than a
1243
majority of the voting interests, the bylaws shall prevail.
1244
2. No bylaw shall be revised or amended by reference to its
1245
title or number only. Proposals to amend existing bylaws shall
1246
contain the full text of the bylaws to be amended; new words
1247
shall be inserted in the text underlined, and words to be deleted
1248
shall be lined through with hyphens. However, if the proposed
1249
change is so extensive that this procedure would hinder, rather
1250
than assist, the understanding of the proposed amendment, it is
1251
not necessary to use underlining and hyphens as indicators of
1252
words added or deleted, but, instead, a notation must be inserted
1253
immediately preceding the proposed amendment in substantially the
1254
following language: "Substantial rewording of bylaw. See bylaw
1255
_____ for present text."
1256
3. Nonmaterial errors or omissions in the bylaw process
1257
will not invalidate an otherwise properly promulgated amendment.
1258
(i) Transfer fees.--No charge shall be made by the
1259
association or any body thereof in connection with the sale,
1260
mortgage, lease, sublease, or other transfer of a unit unless the
1261
association is required to approve such transfer and a fee for
1262
such approval is provided for in the declaration, articles, or
1263
bylaws. Any such fee may be preset, but in no event may such fee
1264
exceed $100 per applicant other than husband/wife or
1265
parent/dependent child, which are considered one applicant.
1266
However, if the lease or sublease is a renewal of a lease or
1267
sublease with the same lessee or sublessee, no charge shall be
1268
made. The foregoing notwithstanding, an association may, if the
1269
authority to do so appears in the declaration or bylaws, require
1270
that a prospective lessee place a security deposit, in an amount
1271
not to exceed the equivalent of 1 month's rent, into an escrow
1272
account maintained by the association. The security deposit shall
1273
protect against damages to the common elements or association
1274
property. Payment of interest, claims against the deposit,
1275
refunds, and disputes under this paragraph shall be handled in
1276
the same fashion as provided in part II of chapter 83.
1277
(j) Recall of board members.--Subject to the provisions of
1278
s. 718.301, any member of the board of administration may be
1279
recalled and removed from office with or without cause by the
1280
vote or agreement in writing by a majority of all the voting
1281
interests. If provided in the bylaws, a board member may also be
1282
removed from the board for cause in the manner provided in the
1283
bylaws. A special meeting of the unit owners to recall a member
1284
or members of the board of administration may be called by 10
1285
percent of the voting interests giving notice of the meeting as
1286
required for a meeting of unit owners, and the notice shall state
1287
the purpose of the meeting. Electronic transmission may not be
1288
used as a method of giving notice of a meeting called in whole or
1289
in part for this purpose.
1290
1. If the recall is approved by a majority of all voting
1291
interests by a vote at a meeting, the recall will be effective as
1292
provided herein. The board shall duly notice and hold a board
1293
meeting within 5 full business days of the adjournment of the
1294
unit owner meeting to recall one or more board members. At the
1295
meeting, the board shall either certify the recall, in which case
1296
such member or members shall be recalled effective immediately
1297
and shall turn over to the board within 5 full business days any
1298
and all records and property of the association in their
1299
possession, or shall proceed as set forth in subparagraph 3.
1300
2. If the proposed recall is by an agreement in writing by
1301
a majority of all voting interests, the agreement in writing or a
1302
copy thereof shall be served on the association by certified mail
1303
or by personal service in the manner authorized by chapter 48 and
1304
the Florida Rules of Civil Procedure. The board of administration
1305
shall duly notice and hold a meeting of the board within 5 full
1306
business days after receipt of the agreement in writing. At the
1307
meeting, the board shall either certify the written agreement to
1308
recall a member or members of the board, in which case such
1309
member or members shall be recalled effective immediately and
1310
shall turn over to the board within 5 full business days any and
1311
all records and property of the association in their possession,
1312
or proceed as described in subparagraph 3.
1313
3. If the board determines not to certify the written
1314
agreement to recall a member or members of the board, or does not
1315
certify the recall by a vote at a meeting, the board shall,
1316
within 5 full business days after the meeting, file with the
1317
division a petition for arbitration pursuant to the procedures in
1318
s. 718.1255. For the purposes of this section, the unit owners
1319
who voted at the meeting or who executed the agreement in writing
1320
shall constitute one party under the petition for arbitration. If
1321
the arbitrator certifies the recall as to any member or members
1322
of the board, the recall will be effective upon mailing of the
1323
final order of arbitration to the association. If the association
1324
fails to comply with the order of the arbitrator, the division
1325
may take action pursuant to s. 718.501. Any member or members so
1326
recalled shall deliver to the board any and all records of the
1327
association in their possession within 5 full business days of
1328
the effective date of the recall.
1329
4. If the board fails to duly notice and hold a board
1330
meeting within 5 full business days of service of an agreement in
1331
writing or within 5 full business days of the adjournment of the
1332
unit owner recall meeting, the recall shall be deemed effective
1333
and the board members so recalled shall immediately turn over to
1334
the board any and all records and property of the association.
1335
5. If a vacancy occurs on the board as a result of a recall
1336
or removal and less than a majority of the board members are
1337
removed, the vacancy may be filled by the affirmative vote of a
1338
majority of the remaining directors, notwithstanding any
1339
provision to the contrary contained in this subsection. If
1340
vacancies occur on the board as a result of a recall and a
1341
majority or more of the board members are removed, the vacancies
1342
shall be filled in accordance with procedural rules to be adopted
1343
by the division, which rules need not be consistent with this
1344
subsection. The rules must provide procedures governing the
1345
conduct of the recall election as well as the operation of the
1346
association during the period after a recall but prior to the
1347
recall election.
1348
(k) Arbitration.--There shall be a provision for mandatory
1349
nonbinding arbitration as provided for in s. 718.1255.
1350
(l) Certificate of compliance.--There shall be a provision
1351
that a certificate of compliance from a licensed electrical
1352
contractor or electrician may be accepted by the association's
1353
board as evidence of compliance of the condominium units with the
1354
applicable fire and life safety code. Notwithstanding the
1355
provisions of chapter 633 or of any other code, statute,
1356
ordinance, administrative rule, or regulation, or any
1357
interpretation of the foregoing, an association, condominium, or
1358
unit owner is not obligated to retrofit the common elements or
1359
units of a residential condominium with a fire sprinkler system
1360
or other engineered lifesafety system in a building that has been
1361
certified for occupancy by the applicable governmental entity, if
1362
the unit owners have voted to forego such retrofitting and
1363
engineered lifesafety system by the affirmative vote of two-
1364
thirds of all voting interests in the affected condominium.
1365
However, a condominium association may not vote to forego the
1366
retrofitting with a fire sprinkler system of common areas in a
1367
high-rise building. For purposes of this subsection, the term
1368
"high-rise building" means a building that is greater than 75
1369
feet in height where the building height is measured from the
1370
lowest level of fire department access to the floor of the
1371
highest occupiable story. For purposes of this subsection, the
1372
term "common areas" means any enclosed hallway, corridor, lobby,
1373
stairwell, or entryway. In no event shall the local authority
1374
having jurisdiction require completion of retrofitting of common
1375
areas with a sprinkler system before the end of 2014.
1376
1. A vote to forego retrofitting may be obtained by limited
1377
proxy or by a ballot personally cast at a duly called membership
1378
meeting, or by execution of a written consent by the member, and
1379
shall be effective upon the recording of a certificate attesting
1380
to such vote in the public records of the county where the
1381
condominium is located. The association shall mail, hand deliver,
1382
or electronically transmit to each unit owner written notice at
1383
least 14 days prior to such membership meeting in which the vote
1384
to forego retrofitting of the required fire sprinkler system is
1385
to take place. Within 30 days after the association's opt-out
1386
vote, notice of the results of the opt-out vote shall be mailed,
1387
hand delivered, or electronically transmitted to all unit owners.
1388
Evidence of compliance with this 30-day notice shall be made by
1389
an affidavit executed by the person providing the notice and
1390
filed among the official records of the association. After such
1391
notice is provided to each owner, a copy of such notice shall be
1392
provided by the current owner to a new owner prior to closing and
1393
shall be provided by a unit owner to a renter prior to signing a
1394
lease.
1395
2. As part of the information collected annually from
1396
condominiums, the division shall require condominium associations
1397
to report the membership vote and recording of a certificate
1398
under this subsection and, if retrofitting has been undertaken,
1399
the per-unit cost of such work. The division shall annually
1400
report to the Division of State Fire Marshal of the Department of
1401
Financial Services the number of condominiums that have elected
1402
to forego retrofitting.
1403
(m) Common elements; limited power to convey.--
1404
1. With respect to condominiums created on or after October
1405
1, 1994, the bylaws shall include a provision granting the
1406
association a limited power to convey a portion of the common
1407
elements to a condemning authority for the purpose of providing
1408
utility easements, right-of-way expansion, or other public
1409
purposes, whether negotiated or as a result of eminent domain
1410
proceedings.
1411
2. In any case where the bylaws are silent as to the
1412
association's power to convey common elements as described in
1413
subparagraph 1., the bylaws shall be deemed to include the
1414
provision described in subparagraph 1.
1415
(n) Director delinquencies.--A director more than 90 days
1416
delinquent in the payment of any fee or assessment shall be
1417
deemed to have abandoned the office, creating a vacancy in the
1418
office to be filled according to state law.
1419
(o) Director offenses.--A director charged with a felony
1420
theft or embezzlement offense involving the association's funds
1421
or property shall be suspended from office pending the resolution
1422
of the charge. At the next board meeting, the board shall appoint
1423
an interim board member, who shall serve in place of the
1424
suspended member until such charges are resolved or the suspended
1425
member resigns.
1426
Section 12. Section 718.113, Florida Statutes, is amended
1427
to read:
1428
718.113 Maintenance; limitation upon improvement; display
1429
of flag; hurricane shutters; display of religious decorations.--
1430
(1) Maintenance of the common elements is the
1431
responsibility of the association. The declaration may provide
1432
that certain limited common elements shall be maintained by those
1433
entitled to use the limited common elements or that the
1434
association shall provide the maintenance, either as a common
1435
expense or with the cost shared only by those entitled to use the
1436
limited common elements. If the maintenance is to be by the
1437
association at the expense of only those entitled to use the
1438
limited common elements, the declaration shall describe in detail
1439
the method of apportioning such costs among those entitled to use
1440
the limited common elements, and the association may use the
1441
provisions of s. 718.116 to enforce payment of the shares of such
1442
costs by the unit owners entitled to use the limited common
1443
elements.
1444
(2)(a) Except as otherwise provided in this section, there
1445
shall be no material alteration or substantial additions to the
1446
common elements or to real property which is association
1447
property, except in a manner provided in the declaration as
1448
originally recorded or as amended under the procedures provided
1449
therein. If the declaration as originally recorded or as amended
1450
under the procedures provided therein does not specify the
1451
procedure for approval of material alterations or substantial
1452
additions, 75 percent of the total voting interests of the
1453
association must approve the alterations or additions.
1454
(b) There shall not be any material alteration of, or
1455
substantial addition to, the common elements of any condominium
1456
operated by a multicondominium association unless approved in the
1457
manner provided in the declaration of the affected condominium or
1458
condominiums as originally recorded or as amended under the
1459
procedures provided therein. If a declaration as originally
1460
recorded or as amended under the procedures provided therein does
1461
not specify a procedure for approving such an alteration or
1462
addition, the approval of 75 percent of the total voting
1463
interests of each affected condominium is required. This
1464
subsection does not prohibit a provision in any declaration,
1465
articles of incorporation, or bylaws as originally recorded or as
1466
amended under the procedures provided therein requiring the
1467
approval of unit owners in any condominium operated by the same
1468
association or requiring board approval before a material
1469
alteration or substantial addition to the common elements is
1470
permitted. This paragraph is intended to clarify existing law and
1471
applies to associations existing on the effective date of this
1472
act.
1473
(c) There shall not be any material alteration or
1474
substantial addition made to association real property operated
1475
by a multicondominium association, except as provided in the
1476
declaration, articles of incorporation, or bylaws as originally
1477
recorded or as amended under the procedures provided therein. If
1478
the declaration, articles of incorporation, or bylaws as
1479
originally recorded or as amended under the procedures provided
1480
therein do not specify the procedure for approving an alteration
1481
or addition to association real property, the approval of 75
1482
percent of the total voting interests of the association is
1483
required. This paragraph is intended to clarify existing law and
1484
applies to associations existing on the effective date of this
1485
act.
1486
(3) A unit owner shall not do anything within his or her
1487
unit or on the common elements which would adversely affect the
1488
safety or soundness of the common elements or any portion of the
1489
association property or condominium property which is to be
1490
maintained by the association.
1491
(4) Any unit owner may display one portable, removable
1492
United States flag in a respectful way and, on Armed Forces Day,
1493
Memorial Day, Flag Day, Independence Day, and Veterans Day, may
1494
display in a respectful way portable, removable official flags,
1495
not larger than 4 1/2 feet by 6 feet, that represent the United
1496
States Army, Navy, Air Force, Marine Corps, or Coast Guard,
1497
regardless of any declaration rules or requirements dealing with
1498
flags or decorations.
1499
(5) Each board of administration shall adopt hurricane
1500
shutter specifications for each building within each condominium
1501
operated by the association which shall include color, style, and
1502
other factors deemed relevant by the board. All specifications
1503
adopted by the board shall comply with the applicable building
1504
code. Notwithstanding any provision to the contrary in the
1505
condominium documents, if approval is required by the documents,
1506
a board shall not refuse to approve the installation or
1507
replacement of hurricane shutters conforming to the
1508
specifications adopted by the board. The board may, subject to
1509
the provisions of s. 718.3026, and the approval of a majority of
1510
voting interests of the condominium, install hurricane shutters
1511
or hurricane protection that complies with or exceeds the
1512
applicable building code and may maintain, repair, or replace
1513
such approved hurricane shutters, whether on or within common
1514
elements, limited common elements, units, or association
1515
property. However, where hurricane protection that complies with
1516
or exceeds the applicable building code or laminated glass or
1517
window film architecturally designed to function as hurricane
1518
protection which complies with the applicable building code has
1519
been installed, the board may not install hurricane shutters. The
1520
board may operate shutters installed pursuant to this subsection
1521
without permission of the unit owners when only where such
1522
operation is necessary to preserve and protect the condominium
1523
property and association property. This subsection does not
1524
create an obligation on behalf of the board or association to
1525
close or cause to be closed any shutters when such protection may
1526
be required. Restriction may not be placed on the closing of
1527
hurricane shutters unless the board and association assume the
1528
responsibility of closing the hurricane shutters when
1529
appropriate. The installation, replacement, operation, repair,
1530
and maintenance of such shutters in accordance with the
1531
procedures set forth herein shall not be deemed a material
1532
alteration to the common elements or association property within
1533
the meaning of this section.
1534
(6) At least every 5 years, and within 5 years if not
1535
available for inspection on July 1, 2008, the board shall have
1536
the condominium buildings inspected to provide an update to the
1537
turnover inspection report under seal of an architect or engineer
1538
authorized to practice in this state attesting to required
1539
maintenance, useful life, and replacement costs of the elements
1540
provided in s. 718.301(4)(p).
1541
(7) The board may not adopt any rule or regulation
1542
impairing any rights guaranteed by the First Amendment to the
1543
Constitution of the United States or s. 3, Art. I of the State
1544
Constitution, including, but not limited to, the free exercise of
1545
religion, or any rules or regulations that conflict with the
1546
provisions of this chapter or the condominium instruments. A rule
1547
or regulation may not prohibit any reasonable accommodation for
1548
religious practices, including the attachment of religiously
1549
mandated objects to the front-door area of a condominium unit.
1550
Section 13. Section 718.1224, Florida Statutes, is created
1551
to read:
1552
718.1224 Prohibition against SLAPP suits.--
1553
(1) It is the intent of the Legislature to protect the
1554
right of condominium unit owners to exercise their rights to
1555
instruct their representatives and petition for redress of
1556
grievances before the various governmental entities of this state
1557
as protected by the First Amendment to the United States
1558
Constitution and s. 5, Art. I of the State Constitution. The
1559
Legislature recognizes that strategic lawsuits against public
1560
participation, or "SLAPP suits" as they are typically referred
1561
to, have occurred when association members are sued by
1562
individuals, business entities, or governmental entities arising
1563
out of a condominium unit owner's appearance and presentation
1564
before a governmental entity on matters related to the
1565
condominium association. However, it is the public policy of this
1566
state that governmental entities, business organizations, and
1567
individuals not engage in SLAPP suits because such actions are
1568
inconsistent with the right of condominium unit owners to
1569
participate in the state's institutions of government. Therefore,
1570
the Legislature finds and declares that prohibiting such lawsuits
1571
by governmental entities, business entities, and individuals
1572
against condominium unit owners who address matters concerning
1573
their condominium association will preserve this fundamental
1574
state policy, preserve the constitutional rights of condominium
1575
unit owners, and ensure the continuation of representative
1576
government in this state. It is the intent of the Legislature
1577
that such lawsuits be expeditiously disposed of by the courts. As
1578
used in this subsection, the term "governmental entity" means the
1579
state, including the executive, legislative, and judicial
1580
branches of government; the independent establishments of the
1581
state, counties, municipalities, districts, authorities, boards,
1582
or commissions; or any agencies of these branches that are
1583
subject to chapter 286.
1584
(2) A governmental entity, business organization, or
1585
individual in this state may not file or cause to be filed
1586
through its employees or agents any lawsuit, cause of action,
1587
claim, cross-claim, or counterclaim against a condominium unit
1588
owner without merit and solely because such condominium unit
1589
owner has exercised the right to instruct his or her
1590
representatives or the right to petition for redress of
1591
grievances before the various governmental entities of this
1592
state, as protected by the First Amendment to the United States
1593
Constitution and s. 5, Art. I of the State Constitution.
1594
(3) A condominium unit owner sued by a governmental entity,
1595
business organization, or individual in violation of this section
1596
has a right to an expeditious resolution of a claim that the suit
1597
is in violation of this section. A condominium unit owner may
1598
petition the court for an order dismissing the action or granting
1599
final judgment in favor of that condominium unit owner. The
1600
petitioner may file a motion for summary judgment, together with
1601
supplemental affidavits, seeking a determination that the
1602
governmental entity's, business organization's, or individual's
1603
lawsuit has been brought in violation of this section. The
1604
governmental entity, business organization, or individual shall
1605
thereafter file its response and any supplemental affidavits. As
1606
soon as practicable, the court shall set a hearing on the
1607
petitioner's motion, which shall be held at the earliest possible
1608
time after the filing of the governmental entity's, business
1609
organization's, or individual's response. The court may award the
1610
condominium unit owner sued by the governmental entity, business
1611
organization, or individual actual damages arising from the
1612
governmental entity's, individual's, or business organization's
1613
violation of this section. A court may treble the damages awarded
1614
to a prevailing condominium unit owner and shall state the basis
1615
for the treble damages award in its judgment. The court shall
1616
award the prevailing party reasonable attorney's fees and costs
1617
incurred in connection with a claim that an action was filed in
1618
violation of this section.
1619
(4) Condominium associations may not expend association
1620
funds in prosecuting a SLAPP suit against a condominium unit
1621
owner.
1622
Section 14. Paragraph (b) of subsection (3) of section
1623
718.1255, Florida Statutes, is amended to read:
1624
718.1255 Alternative dispute resolution; voluntary
1625
mediation; mandatory nonbinding arbitration; legislative
1626
findings.--
1627
(3) LEGISLATIVE FINDINGS.--
1628
(b) The Legislature finds that the courts are becoming
1629
overcrowded with condominium and other disputes, and further
1630
finds that alternative dispute resolution has been making
1631
progress in reducing court dockets and trials and in offering a
1632
more efficient, cost-effective option to court litigation.
1633
However, the Legislature also finds that alternative dispute
1634
resolution should not be used as a mechanism to encourage the
1635
filing of frivolous or nuisance suits.
1636
Section 15. Paragraph (p) is added to subsection (4) of
1637
section 718.301, Florida Statutes, to read:
1638
718.301 Transfer of association control; claims of defect
1639
by association.--
1640
(4) At the time that unit owners other than the developer
1641
elect a majority of the members of the board of administration of
1642
an association, the developer shall relinquish control of the
1643
association, and the unit owners shall accept control.
1644
Simultaneously, or for the purposes of paragraph (c) not more
1645
than 90 days thereafter, the developer shall deliver to the
1646
association, at the developer's expense, all property of the unit
1647
owners and of the association which is held or controlled by the
1648
developer, including, but not limited to, the following items, if
1649
applicable, as to each condominium operated by the association:
1650
(p) A report included in the official records, under seal
1651
of an architect or engineer authorized to practice in this state,
1652
attesting to required maintenance, useful life, and replacement
1653
costs of the following elements comprising a turnover inspection
1654
report:
1655
1. Roof.
1656
2. Structure.
1657
3. Fireproofing and fire-protection systems.
1658
4. Elevators.
1659
5. Heating and cooling systems.
1660
6. Plumbing.
1661
7. Electrical systems.
1662
8. Swimming pool or spa and equipment.
1663
9. Seawalls.
1664
10. Pavement and parking areas.
1665
11. Drainage systems.
1666
12. Painting.
1667
13. Irrigation systems.
1668
Section 16. Paragraph (f) is added to subsection (1) of
1669
section 718.3025, Florida Statutes, to read:
1670
718.3025 Agreements for operation, maintenance, or
1671
management of condominiums; specific requirements.--
1672
(1) No written contract between a party contracting to
1673
provide maintenance or management services and an association
1674
which contract provides for operation, maintenance, or management
1675
of a condominium association or property serving the unit owners
1676
of a condominium shall be valid or enforceable unless the
1677
contract:
1678
(f) Discloses any financial or ownership interest a board
1679
member or any party providing maintenance or management services
1680
to the association holds with the contracting party.
1681
Section 17. Section 718.3026, Florida Statutes, is amended
1682
to read:
1683
718.3026 Contracts for products and services; in writing;
1684
bids; exceptions.-- Associations with less than 100 units may opt
1685
out of the provisions of this section if two-thirds of the unit
1686
owners vote to do so, which opt-out may be accomplished by a
1687
proxy specifically setting forth the exception from this section.
1688
(1) All contracts as further described herein or any
1689
contract that is not to be fully performed within 1 year after
1690
the making thereof, for the purchase, lease, or renting of
1691
materials or equipment to be used by the association in
1692
accomplishing its purposes under this chapter, and all contracts
1693
for the provision of services, shall be in writing. If a contract
1694
for the purchase, lease, or renting of materials or equipment, or
1695
for the provision of services, requires payment by the
1696
association on behalf of any condominium operated by the
1697
association in the aggregate that exceeds 5 percent of the total
1698
annual budget of the association, including reserves, the
1699
association shall obtain competitive bids for the materials,
1700
equipment, or services. Nothing contained herein shall be
1701
construed to require the association to accept the lowest bid.
1702
(2)(a)1. Notwithstanding the foregoing, contracts with
1703
employees of the association, and contracts for attorney,
1704
accountant, architect, community association manager, timeshare
1705
management firm, engineering, and landscape architect services
1706
are not subject to the provisions of this section.
1707
2. A contract executed before January 1, 1992, and any
1708
renewal thereof, is not subject to the competitive bid
1709
requirements of this section. If a contract was awarded under the
1710
competitive bid procedures of this section, any renewal of that
1711
contract is not subject to such competitive bid requirements if
1712
the contract contains a provision that allows the board to cancel
1713
the contract on 30 days' notice. Materials, equipment, or
1714
services provided to a condominium under a local government
1715
franchise agreement by a franchise holder are not subject to the
1716
competitive bid requirements of this section. A contract with a
1717
manager, if made by a competitive bid, may be made for up to 3
1718
years. A condominium whose declaration or bylaws provides for
1719
competitive bidding for services may operate under the provisions
1720
of that declaration or bylaws in lieu of this section if those
1721
provisions are not less stringent than the requirements of this
1722
section.
1723
(b) Nothing contained herein is intended to limit the
1724
ability of an association to obtain needed products and services
1725
in an emergency.
1726
(c) This section shall not apply if the business entity
1727
with which the association desires to enter into a contract is
1728
the only source of supply within the county serving the
1729
association.
1730
(d) Nothing contained herein shall excuse a party
1731
contracting to provide maintenance or management services from
1732
compliance with s. 718.3025.
1733
Section 18. Section 718.501, Florida Statutes, is amended
1734
to read:
1735
718.501 Authority, responsibility, Powers and duties of
1736
Division of Florida Land Sales, Condominiums, and Mobile Homes.--
1737
(1) The Division of Florida Land Sales, Condominiums, and
1738
Mobile Homes of the Department of Business and Professional
1739
Regulation, referred to as the "division" in this part, in
1740
addition to other authority, responsibility, powers and duties
1741
prescribed by chapter 498, has the power to enforce and ensure
1742
compliance with the provisions of this chapter and rules
1743
promulgated pursuant hereto relating to the development,
1744
construction, sale, lease, ownership, operation, and management
1745
of residential condominium units. In performing its duties, the
1746
division has the following authority, responsibility, powers and
1747
duties:
1748
(a) The division may make necessary public or private
1749
investigations within or outside this state to determine whether
1750
any person has violated this chapter or any rule or order
1751
hereunder, to aid in the enforcement of this chapter, or to aid
1752
in the adoption of rules or forms hereunder.
1753
(b) The division may require or permit any person to file a
1754
statement in writing, under oath or otherwise, as the division
1755
determines, as to the facts and circumstances concerning a matter
1756
to be investigated.
1757
(c) For the purpose of any investigation under this
1758
chapter, the division director or any officer or employee
1759
designated by the division director may administer oaths or
1760
affirmations, subpoena witnesses and compel their attendance,
1761
take evidence, and require the production of any matter which is
1762
relevant to the investigation, including the existence,
1763
description, nature, custody, condition, and location of any
1764
books, documents, or other tangible things and the identity and
1765
location of persons having knowledge of relevant facts or any
1766
other matter reasonably calculated to lead to the discovery of
1767
material evidence. Upon the failure by a person to obey a
1768
subpoena or to answer questions propounded by the investigating
1769
officer and upon reasonable notice to all persons affected
1770
thereby, the division may apply to the circuit court for an order
1771
compelling compliance.
1772
(d) Notwithstanding any remedies available to unit owners
1773
and associations, if the division has reasonable cause to believe
1774
that a violation of any provision of this chapter or rule
1775
promulgated pursuant hereto has occurred, the division may
1776
institute enforcement proceedings in its own name against any
1777
developer, association, officer, or member of the board of
1778
administration, or its assignees or agents, as follows:
1779
1. The division may permit a person whose conduct or
1780
actions may be under investigation to waive formal proceedings
1781
and enter into a consent proceeding whereby orders, rules, or
1782
letters of censure or warning, whether formal or informal, may be
1783
entered against the person.
1784
2. The division may issue an order requiring the developer,
1785
association, officer, or member of the board of administration,
1786
or its assignees or agents, to cease and desist from the unlawful
1787
practice and take such affirmative action as in the judgment of
1788
the division will carry out the purposes of this chapter. Agents
1789
shall include community association managers or other licensed
1790
professionals acting as agents of the association. Such
1791
affirmative action may include, but is not limited to, an order
1792
requiring a developer to pay moneys determined to be owed to a
1793
condominium association.
1794
3. If a developer fails to promptly pay any restitution
1795
determined by the division to be owed, plus any accrued interest
1796
at the highest rate permitted by law, the division shall bring an
1797
action in circuit or county court on behalf of any association,
1798
class of unit owners, lessees, or purchasers for restitution,
1799
declaratory relief, injunctive relief, or any other available
1800
remedy. The division may also temporarily revoke its acceptance
1801
of any other condominium filing by the same developer until
1802
payment is made. The division may bring an action in circuit
1803
court on behalf of a class of unit owners, lessees, or purchasers
1804
for declaratory relief, injunctive relief, or restitution.
1805
4. The division may impose a civil penalty against a
1806
developer or association, or its assignee or agent, for any
1807
violation of this chapter or a rule promulgated pursuant hereto.
1808
The division may impose a civil penalty individually against any
1809
officer or board member who willfully and knowingly violates a
1810
provision of this chapter, a rule adopted pursuant hereto, or a
1811
final order of the division, order the removal of such individual
1812
from the board of directors, and prohibit such individual from
1813
serving on the board of a community association for a period of
1814
time. The term "willfully and knowingly" means that the division
1815
informed the officer or board member that his or her action or
1816
intended action violates this chapter, a rule adopted under this
1817
chapter, or a final order of the division and that the officer or
1818
board member refused to comply with the requirements of this
1819
chapter, a rule adopted under this chapter, or a final order of
1820
the division. The division, prior to initiating formal agency
1821
action under chapter 120, shall afford the officer or board
1822
member an opportunity to voluntarily comply with this chapter, a
1823
rule adopted under this chapter, or a final order of the
1824
division. An officer or board member who complies within 10 days
1825
is not subject to a civil penalty. A penalty may be imposed on
1826
the basis of each day of continuing violation, but in no event
1827
shall the penalty for any offense exceed $5,000. By January 1,
1828
1998, the division shall adopt, by rule, penalty guidelines
1829
applicable to possible violations or to categories of violations
1830
of this chapter or rules adopted by the division. The guidelines
1831
must specify a meaningful range of civil penalties for each such
1832
violation of the statute and rules and must be based upon the
1833
harm caused by the violation, the repetition of the violation,
1834
and upon such other factors deemed relevant by the division. For
1835
example, the division may consider whether the violations were
1836
committed by a developer or owner-controlled association, the
1837
size of the association, and other factors. The guidelines must
1838
designate the possible mitigating or aggravating circumstances
1839
that justify a departure from the range of penalties provided by
1840
the rules. It is the legislative intent that minor violations be
1841
distinguished from those which endanger the health, safety, or
1842
welfare of the condominium residents or other persons and that
1843
such guidelines provide reasonable and meaningful notice to the
1844
public of likely penalties that may be imposed for proscribed
1845
conduct. This subsection does not limit the ability of the
1846
division to informally dispose of administrative actions or
1847
complaints by stipulation, agreed settlement, or consent order.
1848
All amounts collected shall be deposited with the Chief Financial
1849
Officer to the credit of the Division of Florida Land Sales,
1850
Condominiums, and Mobile Homes Trust Fund. If a developer fails
1851
to pay the civil penalty and the amount deemed to be owed to the
1852
association, the division shall thereupon issue an order
1853
directing that such developer cease and desist from further
1854
operation until such time as the civil penalty is paid or may
1855
pursue enforcement of the penalty in a court of competent
1856
jurisdiction. If an association fails to pay the civil penalty,
1857
the division shall thereupon pursue enforcement in a court of
1858
competent jurisdiction, and the order imposing the civil penalty
1859
or the cease and desist order will not become effective until 20
1860
days after the date of such order. Any action commenced by the
1861
division shall be brought in the county in which the division has
1862
its executive offices or in the county where the violation
1863
occurred.
1864
5. Upon a finding of failure to provide access to official
1865
records after two written requests by certified mail by unit
1866
owners, the division shall issue a subpoena requiring production
1867
of the requested records.
1868
(e) The division shall is authorized to prepare and
1869
disseminate a prospectus and other information to assist
1870
prospective owners, purchasers, lessees, and developers of
1871
residential condominiums in assessing the rights, privileges, and
1872
duties pertaining thereto.
1873
(f) The division has authority to adopt rules pursuant to
1874
ss. 120.536(1) and 120.54 to implement and enforce the provisions
1875
of this chapter.
1876
(g) The division shall establish procedures for providing
1877
notice to an association when the division is considering the
1878
issuance of a declaratory statement with respect to the
1879
declaration of condominium or any related document governing in
1880
such condominium community.
1881
(h) The division shall furnish each association which pays
1882
the fees required by paragraph (2)(a) a copy of this act,
1883
subsequent changes to this act on an annual basis, an amended
1884
version of this act as it becomes available from the Secretary of
1885
State's office on a biennial basis, and the rules promulgated
1886
pursuant thereto on an annual basis.
1887
(i) The division shall annually provide each association
1888
with a summary of declaratory statements and formal legal
1889
opinions relating to the operations of condominiums which were
1890
rendered by the division during the previous year.
1891
(j) The division shall provide training programs for
1892
condominium association board members and unit owners. The
1893
division shall maintain a current list of programs and program
1894
providers and shall make such list available to board members and
1895
unit owners.
1896
(k) The division shall maintain a toll-free telephone
1897
number accessible to condominium unit owners.
1898
(l) The division shall develop a program to certify both
1899
volunteer and paid mediators to provide mediation of condominium
1900
disputes. The division shall provide, upon request, a list of
1901
such mediators to any association, unit owner, or other
1902
participant in arbitration proceedings under s. 718.1255
1903
requesting a copy of the list. The division shall include on the
1904
list of volunteer mediators only the names of persons who have
1905
received at least 20 hours of training in mediation techniques or
1906
who have mediated at least 20 disputes. In order to become
1907
initially certified by the division, paid mediators must be
1908
certified by the Supreme Court to mediate court cases in either
1909
county or circuit courts. However, the division may adopt, by
1910
rule, additional factors for the certification of paid mediators,
1911
which factors must be related to experience, education, or
1912
background. Any person initially certified as a paid mediator by
1913
the division must, in order to continue to be certified, comply
1914
with the factors or requirements imposed by rules adopted by the
1915
division.
1916
(m) When a complaint is made, the division shall conduct
1917
its inquiry with due regard to the interests of the affected
1918
parties. Within 30 days after receipt of a complaint, the
1919
division shall acknowledge the complaint in writing and notify
1920
the complainant whether the complaint is within the jurisdiction
1921
of the division and whether additional information is needed by
1922
the division from the complainant. The division shall conduct its
1923
investigation and shall, within 90 days after receipt of the
1924
original complaint or of timely requested additional information,
1925
take action upon the complaint. However, the failure to complete
1926
the investigation within 90 days does not prevent the division
1927
from continuing the investigation, accepting or considering
1928
evidence obtained or received after 90 days, or taking
1929
administrative action if reasonable cause exists to believe that
1930
a violation of this chapter or a rule of the division has
1931
occurred. If an investigation is not completed within the time
1932
limits established in this paragraph, the division shall, on a
1933
monthly basis, notify the complainant in writing of the status of
1934
the investigation. When reporting its action to the complainant,
1935
the division shall inform the complainant of any right to a
1936
hearing pursuant to ss. 120.569 and 120.57.
1937
(2)(a) Effective January 1, 1992, Each condominium
1938
association which operates more than two units shall pay to the
1939
division an annual fee in the amount of $4 for each residential
1940
unit in condominiums operated by the association. If the fee is
1941
not paid by March 1, then the association shall be assessed a
1942
penalty of 10 percent of the amount due, and the association will
1943
not have standing to maintain or defend any action in the courts
1944
of this state until the amount due, plus any penalty, is paid.
1945
(b) All fees shall be deposited in the Division of Florida
1946
Land Sales, Condominiums, and Mobile Homes Trust Fund as provided
1947
by law.
1948
Section 19. Subsection (1) of section 718.50151, Florida
1949
Statutes, is amended to read:
1950
718.50151 Advisory council; membership functions.--
1951
(1) There is created the Advisory Council on Condominiums.
1952
The council shall consist of seven appointed members. Two members
1953
shall be appointed by the President of the Senate, two members
1954
shall be appointed by the Speaker of the House of
1955
Representatives, and three members shall be appointed by the
1956
Governor. At least One member that is appointed by the Governor
1957
may shall represent timeshare condominiums. Members shall be
1958
appointed to 2-year terms; however, one of the persons initially
1959
appointed by the Governor, by the President of the Senate, and by
1960
the Speaker of the House of Representatives shall be appointed to
1961
a 1-year term. The director of the division shall appoint serve
1962
as an ex officio nonvoting member. The Legislature intends that
1963
the persons appointed represent a cross-section of persons
1964
interested in condominium issues. The council shall be located
1965
within the division for administrative purposes. Members of the
1966
council shall serve without compensation but are entitled to
1967
receive per diem and travel expenses pursuant to s. 112.061 while
1968
on official business.
1969
Section 20. This act shall take effect July 1, 2008.
1970
1971
================ T I T L E A M E N D M E N T ================
1972
And the title is amended as follows:
1973
Delete everything before the enacting clause
1974
and insert:
1975
A bill to be entitled
1976
An act relating to community associations; amending s.
1977
468.431, F.S.; revising and providing definitions;
1978
amending s. 468.4315, F.S.; redesignating the
1979
Regulatory Council of Community Association Managers as
1980
the Board of Community Association Managers; revising
1981
membership criteria for members of the board; requiring
1982
the board to establish a public education program;
1983
providing that board members shall serve without
1984
compensation but are entitled to per diem and travel
1985
expenses; providing responsibilities of the board;
1986
amending s. 468.432, F.S.; providing for licensure of
1987
community association management firms; providing
1988
application, licensure, and fee requirements; amending
1989
s. 468.433, F.S.; providing for the refusal of
1990
applicant certification under certain circumstances;
1991
conforming terminology; amending ss. 468.4337 and
1992
468.4338, F.S.; conforming terminology to changes made
1993
by the act; amending s. 468.435, F.S.; conforming
1994
terminology to changes made by the act; removing
1995
statutory fee ranges; authorizing the board to
1996
establish specified fees; requiring the board to adopt
1997
rules establishing such fees; amending s. 468.436,
1998
F.S.; requiring that the Department of Business and
1999
Professional Regulation investigate certain complaints
2000
and allegations; providing complaint and investigation
2001
procedures; conforming cross-references and
2002
terminology; providing grounds for which disciplinary
2003
actions may be taken; authorizing the department to
2004
impose specified penalties on a community association
2005
management firm; authorizing the department to reissue
2006
the license of a disciplined community association
2007
manager or firm under certain circumstances; amending
2008
s. 718.110, F.S.; revising instances under which a
2009
declaration may be amended; requiring a majority vote
2010
of owners for approval of an amendment to a
2011
declaration; deleting a provision requiring amendments
2012
to declarations recorded after a specified date to be
2013
approved by more than four-fifths of the voting
2014
interests; amending s. 718.111, F.S.; providing duties
2015
of officers, directors, and agents of a condominium
2016
association and liability for monetary damages under
2017
certain circumstances; deleting legislative intent
2018
relating to insurance premiums for associations;
2019
providing policy requirements for windstorm insurance
2020
for condominium associations; providing deductible
2021
requirements; providing that a copy of the inspection
2022
report shall be maintained as an official record of the
2023
association; requiring official records of the
2024
association to be maintained for at least 5 years and
2025
to be made available at certain locations and in
2026
specified formats; providing civil and criminal
2027
sanctions, including sanctions against any person who
2028
knowingly or intentionally defaces, destroys, or fails
2029
to create or maintain accounting records; requiring the
2030
association to maintain certain documents; prohibiting
2031
accessibility to certain personal identifying
2032
information of unit owners by fellow unit owners;
2033
requiring the Division of Florida Land Sales,
2034
Condominiums, and Mobile Homes to adopt certain rules;
2035
requiring certain audits and reports to be paid for by
2036
the developer if done prior to turnover of control of
2037
the association; restricting a condominium association
2038
from waiving a financial report for more than 2
2039
consecutive years; amending s. 718.112, F.S.;
2040
prohibiting votes allocated to units owned by the
2041
association from being cast by proxy, ballot, or
2042
otherwise, for any purpose; providing an exception that
2043
proxies may be used to establish a quorum; requiring
2044
the board to address certain agenda items proposed by a
2045
petition of a specified percentage of the unit owners;
2046
revising notice requirements for meetings to consider
2047
assessments; providing requirements for the location of
2048
annual unit owner meetings; revising terms of service
2049
for board members; prohibiting certain persons from
2050
serving on the board; providing exceptions; requiring
2051
the association to provide a certification form to unit
2052
owners for specified purposes; removing a provision
2053
allowing an association to provide for different voting
2054
and election procedures in its bylaws; revising annual
2055
budget requirements; requiring proxy questions relating
2056
to reserves to contain a certain statement; authorizing
2057
the association to use reserve funds for nonscheduled
2058
purposes under certain conditions; revising methods by
2059
which the bylaws may be amended; providing for the
2060
removal of board members under certain circumstances;
2061
providing that directors delinquent in certain payments
2062
owed in excess of certain periods of time be suspended
2063
from office or deemed to have abandoned their offices;
2064
providing that directors charged with certain offenses
2065
involving an association's funds or property be
2066
suspended from office pending resolution of the charge;
2067
amending s. 718.113, F.S.; authorizing the board to
2068
install specified hurricane protection; providing that
2069
no obligation of the board to close or cause to be
2070
closed any hurricane shutters is created; prohibiting
2071
any restrictions from being placed on the closing of
2072
hurricane shutters unless the board and association
2073
assume such responsibility when appropriate; requiring
2074
the board to have condominium buildings periodically
2075
inspected for specified purposes; prohibiting the board
2076
from adopting rules or regulations impairing certain
2077
rights or prohibiting reasonable accommodation for
2078
religious practices; creating s. 718.1224, F.S.;
2079
prohibiting certain lawsuits arising from unit owners'
2080
appearances and presentations before a governmental
2081
entity; providing a definition; providing for award of
2082
damages and attorney fees; prohibiting associations
2083
from expending association funds in prosecuting such a
2084
suit against a unit owner; amending s. 718.1255, F.S.;
2085
revising legislative intent concerning alternative
2086
dispute resolution; amending s. 718.301, F.S.;
2087
requiring developers to provide certain documents to
2088
the association within a specified time after turnover
2089
of control of the association; amending s. 718.3025,
2090
F.S.; providing maintenance and management services
2091
contract disclosure requirements; amending s. 718.3026,
2092
F.S.; removing a provision authorizing associations to
2093
opt out of certain provisions relating to contracts for
2094
products and services; removing provisions relating to
2095
competitive bid requirements for contracts executed
2096
before a specified date; amending s. 718.501, F.S.;
2097
providing authority and responsibilities of the
2098
division; revising who constitutes an agent for
2099
purposes of cease and desist orders issued by the
2100
division; requiring the division to bring an action
2101
against a developer under certain circumstances;
2102
providing the division with certain powers; requiring
2103
the division to issue a subpoena under certain
2104
circumstances; requiring the division to maintain a
2105
list of condominium association board member and unit
2106
owner training programs and program providers; deleting
2107
obsolete language; amending s. 718.50151, F.S.;
2108
revising membership requirements for the Advisory
2109
Council on Condominiums; providing an effective date.
3/24/2008 2:11:00 PM 3-05514-08
CODING: Words stricken are deletions; words underlined are additions.