Florida Senate - 2008 COMMITTEE AMENDMENT

Bill No. SB 2084

044126

CHAMBER ACTION

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

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like kind and quality and in accordance with the original plans

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and specifications or, if the original plans and specifications

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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,

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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,

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blinds, hardware, and similar window treatment components, or

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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,

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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

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unit owner and do not serve to broaden or extend the perils of

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coverage afforded by any insurance contract provided to the

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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

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section.

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     (c)  Every hazard insurance policy issued or renewed on or

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after January 1, 2004, to an individual unit owner shall provide

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that the coverage afforded by such policy is excess over the

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amount recoverable under any other policy covering the same

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property. Each insurance policy issued to an individual unit

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owner providing such coverage shall be without rights of

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subrogation against the condominium association that operates the

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condominium in which such unit owner's unit is located. All real

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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

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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

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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

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or replace. A unit owner policy may not incur another deductible

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if the deductible has already been exercised on the association

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policy for the same occurrence.

496

     (12)  OFFICIAL RECORDS.--

497

     (a)  From the inception of the association, the association

498

shall maintain each of the following items, when applicable,

499

which shall constitute the official records of the association:

500

     1.  A copy of the plans, permits, warranties, and other

501

items provided by the developer pursuant to s. 718.301(4).

502

     2.  A photocopy of the recorded declaration of condominium

503

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

506

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.

511

     6.  A book or books which contain the minutes of all

512

meetings of the association, of the board of administration

513

directors, and of unit owners, which minutes shall be retained

514

for a period of not less than 7 years.

515

     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.