Florida Senate - 2008 CS for SB's 2086 & 2498

By the Committee on Regulated Industries; and Senators Jones and Bennett

580-05750-08 20082086c1

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A bill to be entitled

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An act relating to the Department of Business and

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Professional Regulation; amending s. 718.111, F.S.;

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requiring that hazard insurance be based upon the

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replacement cost of the property to be insured as

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determined by an independent insurance appraisal or update

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of a prior appraisal; requiring that the full insurable

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value be determined at specified intervals; providing a

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means by which an association may provide adequate hazard

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insurance; authorizing an association to consider certain

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information when determining coverage amounts; providing

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for coverage by developer-controlled associations;

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providing that policies may include deductibles as

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determined by the association's board of directors;

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providing requirements and guidelines for the

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establishment of such deductibles; requiring that the

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amounts of deductibles be set at a meeting of the board;

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providing requirements for such meeting; requiring that an

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association controlled by unit owners operating as a

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residential condominium use its best efforts to obtain and

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maintain adequate insurance to protect the association and

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property under its supervision or control; providing that

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a declaration of condominium may provide that condominium

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property consisting of freestanding buildings comprised of

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no more than one building in or on such unit need not be

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insured by the association if the declaration requires the

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unit owner to obtain adequate insurance for the

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condominium property; authorizing an association to obtain

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and maintain liability insurance for directors and

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officers, insurance for the benefit of association

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employees, and flood insurance for common elements,

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association property, and units; requiring that every

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hazard insurance policy issued or renewed on or after a

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specified date for the purpose of protecting the

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condominium provide certain coverage; requiring that such

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policies contain certain provisions; providing that such

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policies issued to individual unit owners do not provide

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rights of subrogation against the condominium association;

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providing for the insurance of improvements or additions

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benefiting fewer than all unit owners; requiring that an

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association require each owner to provide evidence of a

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current policy of hazard and liability insurance upon

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request; limiting the frequency with which an association

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may make such a request; authorizing an association to

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purchase coverage on behalf of an owner under certain

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circumstances; providing for the collection of the costs

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of such a policy; providing responsibilities of the unit

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owner and association with regard to reconstruction work

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and associated costs after a casualty loss; authorizing a

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multicondominium association to operate such condominiums

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as a single condominium for certain purposes by majority

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vote of the members of all applicable condominiums;

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providing that such election constitutes an amendment to

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the declaration of all applicable condominiums; requiring

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that an association maintain insurance or fidelity bonding

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for all persons who control or disburse association funds;

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requiring that such insurance policy or fidelity bond

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cover the maximum funds in the custody of the association

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or its management agent at any one time; defining the term

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"persons who control or disburse funds of the

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association"; authorizing an association to amend the

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declaration of condominium without regard to any

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requirement for approval by mortgagees of amendments

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affecting insurance requirements for the purpose of

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conforming the declaration of condominium to certain

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coverage requirements; providing that any portion of the

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condominium property required to be insured by the

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association against casualty loss which is damaged be

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reconstructed, repaired, or replaced as necessary by the

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association as a common expense; providing that all hazard

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insurance deductibles, uninsured losses, and other damages

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in excess of hazard insurance coverage under the hazard

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insurance policies maintained by the association are a

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common expense of the condominium; providing exceptions;

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allocating responsibility for certain costs of repair or

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reconstruction; authorizing an association to opt out of

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certain requirements related to such allocation of

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responsibility by majority vote; providing a procedure by

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which a multicondominium association that has not

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consolidated its financial operations may opt out of such

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allocation of responsibility; requiring that a decision to

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opt out be recorded; providing that such decision takes

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effect on the date on which it is recorded; authorizing

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the reversal of such decision; providing a procedure for

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reversal; providing that an association is not obligated

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to pay for any reconstruction or repair expenses for

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improvements made by an owner or the development if an

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improvement benefits only the unit for which it was

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installed; amending s. 718.115, F.S.; requiring that

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certain expenses be designated as common expenses;

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amending s. 718.116, F.S.; authorizing the designee of a

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unit owner or mortgagee to request a certificate of

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assessment; requiring that the fee for preparation of such

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certificate be stated on the certificate; providing for

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the establishment of such fees; providing for payment of

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the fee; requiring that the fee be refunded if a planned

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sale or mortgage does not occur; providing that any such

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refund is the obligation of the unit owner and is

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collectable in the same manner as an assessment; amending

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s. 718.117, F.S.; prohibiting the distribution of proceeds

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from the sale of a condominium unit to a lienholder from

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exceeding a unit owner's share of the proceeds; creating

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s. 720.30851, F.S.; requiring that the association provide

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a certificate signed by an officer or agent of the

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association stating all assessments and other moneys owed

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to the association by the parcel owner or mortgagee with

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respect to the parcel within a specified period after the

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association's receipt of a request for an estoppel

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certificate by an owner or mortgagee; providing that any

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person other than a parcel owner who relies upon a

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certificate receives the benefits and protection thereof;

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providing that a summary proceeding may be brought to

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compel the association to comply with the requirement to

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provide a certificate; providing that the prevailing party

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is entitled to recover reasonable attorney's fees;

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requiring that the fee for preparation of such certificate

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be stated on the certificate; providing for the

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establishment of such fees; providing for payment of the

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fee; requiring that the fee be refunded if a planned sale

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or mortgage does not occur; providing that any such refund

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is the obligation of the unit owner and is collectable in

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the same manner as an assessment; amending s. 20.165,

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F.S.; changing the name of the Division of Florida Land

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Sales, Condominiums, and Mobile Homes to the Division of

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Florida Condominiums, Timeshares, and Mobile Homes and the

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Division of Technology, Licensure, and Testing to the

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Division of Technology; amending s. 215.20, F.S.;

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conforming the name of the division's trust fund to

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correspond to the name change of the division; amending s.

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450.33, F.S.; removing the requirement for a farm labor

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contractor to file a set of fingerprints with the

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department; amending s. 455.203, F.S.; authorizing the

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department to close and terminate deficient license

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applications and to approve professional license

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applications meeting certain criteria; amending s.

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455.217, F.S.; conforming terminology to changes made by

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the act; amending s. 455.2273, F.S.; authorizing the

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section to apply to disciplinary guidelines adopted by all

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boards and divisions; amending s. 468.841, F.S.;

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clarifying exemption provisions for license provisions

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governing mold-related services; amending s. 475.17, F.S.;

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revising requirements for licensure as a real estate

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broker; amending s. 475.451, F.S.; deleting requirements

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relating to the submission of certain real estate course

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rosters to the department; amending s. 489.105, F.S.;

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clarifying that individuals and business entities that

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sell manufactured and factory-built buildings can legally

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enter into contracts for those sales; amending s. 489.511,

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F.S.; revising requirements for taking the electrical or

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alarm system contractor certification examination;

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providing requirements for certification; amending s.

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489.515, F.S.; revising requirements for certification as

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a certified contractor by the Electrical Contractors'

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Licensing Board to reflect changes made to s. 489.511,

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F.S., by this act; renumbering s. 498.009, F.S., relating

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to the location of the division's offices; amending and

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renumbering s. 498.011, F.S., relating to payment of per

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diem, mileage, and other expenses for division employees;

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providing for reimbursement of expenses for on-site

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review; deleting the expense reimbursement for inspection

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of subdivided lands; renumbering s. 498.013, F.S.,

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relating to the authentication of records; amending and

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renumbering s. 498.057, F.S., relating to service of

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process; deleting provision that service may be made by

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delivering a copy of the process to the division director;

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providing that the division can be the petitioner or the

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plaintiff; repealing ss. 498.001, 498.003, 498.005,

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498.007, 498.017, 498.019, 498.021, 498.022, 498.023,

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498.024, 498.025, 498.027, 498.028, 498.029, 498.031,

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498.033, 498.035, 498.037, 498.039, 498.041, 498.047,

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498.049, 498.051, 498.053, 498.059, 498.061, and 498.063,

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F.S., relating to regulation of land sales practices;

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amending s. 548.0065, F.S.; including amateur mixed

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martial arts in a provision relating to the authority of

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the Florida State Boxing Commission to suspend amateur

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matches for violation of certain health and safety

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standards; amending s. 548.008, F.S.; removing prohibition

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against holding amateur mixed martial arts matches in this

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state; amending s. 548.041, F.S.; providing additional

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licensure requirements for boxing participants; amending

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s. 718.501, F.S.; providing additional powers and duties

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of the division; providing for additional enforcement

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proceedings for carrying out the purposes of ch. 718,

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F.S.; deleting the payment of money by a developer to a

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condominium association as a permissible affirmative

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action; providing for actions of conservator or receiver;

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providing for application to circuit court for an order of

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restitution; providing for imposition of civil penalties

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and award of court costs, attorney's fees, and costs of

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investigation under certain circumstances; providing for

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contracting for investigative services; providing for

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acceptance of grants-in-aid; requiring the cooperation

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with similar agencies on establishment of certain

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procedures, standards, and forms; providing what

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constitutes completeness of notice; authorizing the

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division to issue a notice to show cause; providing

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conforming changes; amending s. 718.509, F.S.; revising to

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incorporate provisions of s. 498.019, F.S., relating to

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the Division of Florida Condominiums, Timeshares, and

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Mobile Homes Trust Fund; revising provisions to conform to

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the change in division name; providing for the deposit of

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moneys resulting from an administrative final order;

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amending s. 721.03, F.S.; clarifying that timeshare plan

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includes a nonspecific multisite timeshare plan; amending

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ss. 73.073, 190.009, 192.037, 213.053, 326.002, 326.006,

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380.05, 380.06, 380.0651, 381.0065, 455.116, 475.455,

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494.008, 509.512, 517.301, 559.935, 718.103, 718.105,

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718.1255, 718.5011, 718.502, 718.504, 718.508, 718.608,

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719.103, 719.1255, 719.501, 719.502, 719.504, 719.508,

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719.608, 720.301, 720.401, 721.05, 721.07, 721.08, 721.26,

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721.28, 721.301, 721.50, 723.003, 723.006, 723.009, and

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723.0611, F.S., to conform; providing effective dates.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsection (11) of section 718.111, Florida

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Statutes, is amended to read:

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     718.111  The association.--

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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, this subsection applies

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paragraphs (a), (b), and (c) are deemed to apply to every

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residential condominium in the state, regardless of the date of

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its declaration of condominium. It is the intent of the

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Legislature to encourage lower or stable insurance premiums for

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associations described in this subsection section.

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     (a) Adequate hazard insurance, regardless of any

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requirement in the declaration of condominium for coverage by the

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association for full insurable value, replacement cost, or

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similar coverage, shall be based upon the replacement cost of the

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property to be insured as determined by an independent insurance

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appraisal or update of a prior appraisal. The full insurable

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value shall be determined at least once every 36 months.

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     1. An association or group of associations may provide

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adequate hazard insurance through a self-insurance fund that

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complies with the requirements of ss. 624.460-624.488.

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     2. The association may also provide adequate hazard

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insurance coverage individually or for a group of no fewer than

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three communities created and operating under this chapter,

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chapter 719, chapter 720, or chapter 721 by obtaining and

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maintaining for such communities insurance coverage sufficient to

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cover an amount equal to the probable maximum loss for the

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communities for a 250-year windstorm event. Such probable maximum

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loss must be determined through the use of a competent model that

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has been accepted by the Florida Commission on Hurricane Loss

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Projection Methodology. No policy or program providing such

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coverage shall be issued or renewed after July 1, 2008, unless it

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has been reviewed and approved by the Office of Insurance

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Regulation. The review and approval shall include approval of

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the policy and related forms pursuant to ss. 627.410 and 627.411,

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approval of the rates pursuant to s. 627.062, a determination

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that the loss model approved by the Commission was accurately and

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appropriately applied to the insured structures to determine the

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250-year probable maximum loss, and a determination that complete

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and accurate disclosure of all material provisions is provided

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to condominium unit owners prior to execution of the agreement by

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a condominium association.

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     3. When determining the adequate amount of hazard insurance

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coverage, the association may consider deductibles as determined

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by this subsection.

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     (b) If an association is a developer-controlled

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association, the association shall exercise its best efforts to

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obtain and maintain insurance as described in paragraph (a).

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Failure to obtain and maintain adequate hazard insurance during

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any period of developer control constitutes a breach of fiduciary

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responsibility by the developer-appointed members of the board of

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directors of the association, unless the members can show that

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despite such failure, they have made their best efforts to

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maintain the required coverage.

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     (c) Policies may include deductibles as determined by the

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board.

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     1. The deductibles shall be consistent with industry

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standards and prevailing practice for communities of similar size

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and age, and having similar construction and facilities in the

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locale where the condominium property is situated.

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     2. The deductibles may be based upon available funds,

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including reserve accounts, or predetermined assessment authority

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at the time the insurance is obtained.

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     3. The board shall establish the amount of deductibles

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based upon the level of available funds and predetermined

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assessment authority at a meeting of the board. Such meeting

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shall be open to all unit owners in the manner set forth in s.

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718.112(2)(e). The notice of such meeting must state the proposed

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deductible and the available funds and the assessment authority

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relied upon by the board and estimate any potential assessment

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amount against each unit, if any. The meeting described in this

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paragraph may be held in conjunction with a meeting to consider

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the proposed budget or an amendment thereto.

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     (d) An association controlled by unit owners operating as 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 that is required to be insured by the association

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pursuant to this subsection.

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     (e) The declaration of condominium as originally recorded,

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or as amended pursuant to procedures provided therein, may

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provide that condominium property consisting of freestanding

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buildings comprised of no more than one building in or on such

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unit need not be insured by the association if the declaration

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requires the unit owner to obtain adequate insurance for the

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condominium property. An association may also obtain and maintain

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liability insurance for directors and officers, insurance for the

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benefit of association employees, and flood insurance for common

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elements, association property, and units.

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

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after January 1, 2009, for the purpose of protecting the

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condominium shall provide primary coverage for:

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     1. All portions of the condominium property as originally

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installed or replacement of like kind and quality, in accordance

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with the original plans and specifications.

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     2. All alterations or additions made to the condominium

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property or association property pursuant to s. 718.113(2).

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     3. The coverage shall exclude all personal property within

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the unit or limited common elements, and floor, wall, and ceiling

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coverings, electrical fixtures, appliances, water heaters, water

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filters, built-in cabinets and countertops, and window

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treatments, including curtains, drapes, blinds, hardware, and

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similar window treatment components, or replacements of any of

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the foregoing.

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

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after January 1, 2009, to an individual unit owner must contain a

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provision stating that the coverage afforded by such policy is

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excess coverage over the amount recoverable under any other

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policy covering the same property. Such policies must include

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special assessment coverage of no less than $2,000 per

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occurrence. An insurance policy issued to an individual unit

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owner providing such coverage does not provide rights of

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subrogation against the condominium association operating the

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condominium in which such individual's unit is located.

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     1. All improvements or additions to the condominium

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property that benefit fewer than all unit owners shall be insured

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by the unit owner or owners having the use thereof, or may be

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insured by the association at the cost and expense of the unit

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owners having the use thereof.

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     2. The association shall require each owner to provide

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evidence of a currently effective policy of hazard and liability

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insurance upon request, but not more than once per year. Upon the

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failure of an owner to provide a certificate of insurance issued

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by an insurer approved to write such insurance in this state

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within 30 days after the date on which a written request is

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delivered, the association may purchase a policy of insurance on

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behalf of an owner. The cost of such a policy, together with

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reconstruction costs undertaken by the association but which are

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the responsibility of the unit owner, may be collected in the

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manner provided for the collection of assessments in s. 718.116.

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     3. All reconstruction work after a casualty loss shall be

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undertaken by the association except as otherwise authorized in

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this section. A unit owner may undertake reconstruction work on

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portions of the unit with the prior written consent of the board

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of administration. However, such work may be conditioned upon the

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approval of the repair methods, the qualifications of the

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proposed contractor, or the contract that is used for that

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purpose. A unit owner shall obtain all required governmental

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permits and approvals prior to commencing reconstruction.

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     4. Unit owners are responsible for the cost of

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reconstruction of any portions of the condominium property for

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which the unit owner is required to carry casualty insurance, and

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any such reconstruction work undertaken by the association shall

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be chargeable to the unit owner and enforceable as an assessment

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pursuant to s. 718.116. The association must be an additional

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named insured and loss payee on all casualty insurance policies

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issued to unit owners in the condominium operated by the

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association.

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     5. A multicondominium association may elect, by a majority

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vote of the collective members of the condominiums operated by

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the association, to operate such condominiums as a single

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condominium for purposes of insurance matters, including, but not

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limited to, the purchase of the hazard insurance required by this

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section and the apportionment of deductibles and damages in

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excess of coverage. The election to aggregate the treatment of

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insurance premiums, deductibles, and excess damages constitutes

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an amendment to the declaration of all condominiums operated by

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the association, and the costs of insurance shall be stated in

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the association budget. The amendments shall be recorded as

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required by s. 718.110.

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     (h) The association shall maintain insurance or fidelity

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bonding of all persons who control or disburse funds of the

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association. The insurance policy or fidelity bond must cover the

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maximum funds that will be in the custody of the association or

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its management agent at any one time. As used in this paragraph,

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the term "persons who control or disburse funds of the

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association" includes, but is not limited to, those individuals

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authorized to sign checks on behalf of the association, and the

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president, secretary, and treasurer of the association. The

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association shall bear the cost of any such bonding.

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     (i) The association may amend the declaration of

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condominium without regard to any requirement for approval by

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mortgagees of amendments affecting insurance requirements for the

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purpose of conforming the declaration of condominium to the

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coverage requirements of this subsection.

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     (j) Any portion of the condominium property required to be

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insured by the association against casualty loss pursuant to

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paragraph (f) which is damaged by casualty shall be

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reconstructed, repaired, or replaced as necessary by the

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association as a common expense. All hazard insurance

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deductibles, uninsured losses, and other damages in excess of

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hazard insurance coverage under the hazard insurance policies

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maintained by the association are a common expense of the

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condominium, except that:

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     1. A unit owner is responsible for the costs of repair or

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replacement of any portion of the condominium property not paid

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by insurance proceeds, if such damage is caused by intentional

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conduct, negligence, or failure to comply with the terms of the

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declaration or the rules of the association by a unit owner, the

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members of his or her family, unit occupants, tenants, guests, or

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invitees, without compromise of the subrogation rights of any

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insurer as set forth in paragraph (g).

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     2. The provisions of subparagraph 1. regarding the

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financial responsibility of a unit owner for the costs of

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repairing or replacing other portions of the condominium property

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also applies to the costs of repair or replacement of personal

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property of other unit owners or the association, as well as

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other property, whether real or personal, which the unit owners

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are required to insure under paragraph (g).

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     3. To the extent the cost of repair or reconstruction for

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which the unit owner is responsible under this paragraph is

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reimbursed to the association by insurance proceeds, and, to the

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extent the association has collected the cost of such repair or

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reconstruction from the unit owner, the association shall

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reimburse the unit owner without the waiver of any rights of

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subrogation.

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     4. The association is not obligated to pay for repair or

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reconstruction or repairs of casualty losses as a common expense

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if the casualty losses were known or should have been known to a

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unit owner and were not reported to the association until after

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the insurance claim of the association for that casualty was

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settled or resolved with finality, or denied on the basis that it

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was untimely filed.

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     (k) An association may, upon the approval of a majority of

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the total voting interests in the association, opt out of the

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provisions of paragraph (j) for the allocation of repair or

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reconstruction expenses and allocate repair or reconstruction

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expenses in the manner provided in the declaration as originally

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recorded or as amended. Such vote may be approved by the voting

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interests of the association without regard to any mortgagee

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consent requirements.

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     (l) In a multicondominium association that has not

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consolidated its financial operations under s. 718.111(6), any

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condominium operated by the association may opt out of the

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provisions of paragraph (j) with the approval of a majority of

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the total voting interests in that condominium. Such vote may be

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approved by the voting interests without regard to any mortgagee

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consent requirements.

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     (m) Any association or condominium voting to opt out of the

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guidelines for repair or reconstruction expenses as described in

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paragraph (j) must record a notice setting forth the date of the

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opt-out vote and the page of the official records book on which

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the declaration is recorded. The decision to opt out is effective

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upon the date of recording of the notice in the public records by

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the association. An association that has voted to opt out of

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paragraph (j) may reverse that decision by the same vote required

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in paragraphs (k) and (l), and notice thereof shall be recorded

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in the official records.

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     (n) The association is not obligated to pay for any

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reconstruction or repair expenses due to casualty loss to any

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improvements installed by a current or former owner of the unit

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or by the developer if the improvement benefits only the unit for

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which it was installed and is not part of the standard

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improvements installed by the developer on all units as part of

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original construction, whether or not such improvement is located

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within the unit. This paragraph does not relieve any party of its

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obligations regarding recovery due under any insurance

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implemented specifically for any such improvements.

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     (o) The provisions of this subsection shall not apply to

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timeshare condominium associations. Insurance for timeshare

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condominium associations shall be maintained pursuant to s.

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721.165.

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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

487

can show that despite such failure, they have exercised due

488

diligence. The declaration of condominium as originally recorded,

489

or amended pursuant to procedures provided therein, may require

490

that condominium property consisting of freestanding buildings

491

where there is no more than one building in or on such unit need

492

not be insured by the association if the declaration requires the

493

unit owner to obtain adequate insurance for the condominium

494

property. An association may also obtain and maintain liability

495

insurance for directors and officers, insurance for the benefit

496

of association employees, and flood insurance for common

497

elements, association property, and units. Adequate insurance,

498

regardless of any requirement in the declaration of condominium

499

for coverage by the association for "full insurable value,"

500

"replacement cost," or the like, may include reasonable

501

deductibles as determined by the board based upon available funds

502

or predetermined assessment authority at the time that the

503

insurance is obtained.

504

     1. Windstorm insurance coverage for a group of no fewer

505

than three communities created and operating under this chapter,

506

chapter 719, chapter 720, or chapter 721 may be obtained and

507

maintained for the communities if the insurance coverage is

508

sufficient to cover an amount equal to the probable maximum loss

509

for the communities for a 250-year windstorm event. Such probable

510

maximum loss must be determined through the use of a competent

511

model that has been accepted by the Florida Commission on

512

Hurricane Loss Projection Methodology. Such insurance coverage is

513

deemed adequate windstorm insurance for the purposes of this

514

section.

515

     2. An association or group of associations may self-insure

516

against claims against the association, the association property,

517

and the condominium property required to be insured by an

518

association, upon compliance with the applicable provisions of

519

ss. 624.460-624.488, which shall be considered adequate insurance

520

for the purposes of this section. A copy of each policy of

521

insurance in effect shall be made available for inspection by

522

unit owners at reasonable times.

523

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

524

after January 1, 2004, to protect the condominium shall provide

525

primary coverage for:

526

     1. All portions of the condominium property located outside

527

the units;

528

     2. The condominium property located inside the units as

529

such property was initially installed, or replacements thereof of

530

like kind and quality and in accordance with the original plans

531

and specifications or, if the original plans and specifications

532

are not available, as they existed at the time the unit was

533

initially conveyed; and

534

     3. All portions of the condominium property for which the

535

declaration of condominium requires coverage by the association.

536

537

Anything to the contrary notwithstanding, the terms "condominium

538

property," "building," "improvements," "insurable improvements,"

539

"common elements," "association property," or any other term

540

found in the declaration of condominium which defines the scope

541

of property or casualty insurance that a condominium association

542

must obtain shall exclude all floor, wall, and ceiling coverings,

543

electrical fixtures, appliances, air conditioner or heating

544

equipment, water heaters, water filters, built-in cabinets and

545

countertops, and window treatments, including curtains, drapes,

546

blinds, hardware, and similar window treatment components, or

547

replacements of any of the foregoing which are located within the

548

boundaries of a unit and serve only one unit and all air

549

conditioning compressors that service only an individual unit,

550

whether or not located within the unit boundaries. The foregoing

551

is intended to establish the property or casualty insuring

552

responsibilities of the association and those of the individual

553

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

554

coverage afforded by any insurance contract provided to the

555

individual unit owner. Beginning January 1, 2004, the association

556

shall have the authority to amend the declaration of condominium,

557

without regard to any requirement for mortgagee approval of

558

amendments affecting insurance requirements, to conform the

559

declaration of condominium to the coverage requirements of this

560

section.

561

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

562

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

563

that the coverage afforded by such policy is excess over the

564

amount recoverable under any other policy covering the same

565

property. Each insurance policy issued to an individual unit

566

owner providing such coverage shall be without rights of

567

subrogation against the condominium association that operates the

568

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

569

or personal property located within the boundaries of the unit

570

owner's unit which is excluded from the coverage to be provided

571

by the association as set forth in paragraph (b) shall be insured

572

by the individual unit owner.

573

     (d) The association shall obtain and maintain adequate

574

insurance or fidelity bonding of all persons who control or

575

disburse funds of the association. The insurance policy or

576

fidelity bond must cover the maximum funds that will be in the

577

custody of the association or its management agent at any one

578

time. As used in this paragraph, the term "persons who control or

579

disburse funds of the association" includes, but is not limited

580

to, those individuals authorized to sign checks and the

581

president, secretary, and treasurer of the association. The

582

association shall bear the cost of bonding.

583

     Section 2.  Paragraph (a) of subsection (1) of section

584

718.115, Florida Statutes, is amended to read:

585

     718.115  Common expenses and common surplus.--

586

     (1)(a)  Common expenses include the expenses of the

587

operation, maintenance, repair, replacement, or protection of the

588

common elements and association property, costs of carrying out

589

the powers and duties of the association, and any other expense,

590

whether or not included in the foregoing, designated as common

591

expense by this chapter, the declaration, the documents creating

592

the association, or the bylaws. Common expenses also include

593

reasonable transportation services, insurance for directors and

594

officers, road maintenance and operation expenses, in-house

595

communications, and security services, which are reasonably

596

related to the general benefit of the unit owners even if such

597

expenses do not attach to the common elements or property of the

598

condominium. However, such common expenses must either have been

599

services or items provided on or after the date control of the

600

association is transferred from the developer to the unit owners

601

or must be services or items provided for in the condominium

602

documents or bylaws. Unless the manner of payment or allocation

603

of expenses is otherwise addressed in the declaration of

604

condominium, the expenses of any items or services required by

605

any federal, state, or local governmental entity to be installed,

606

maintained, or supplied to the condominium property by the

607

association, including, but not limited to, fire safety equipment

608

or water and sewer service where a master meter serves the

609

condominium, shall be common expenses whether or not such items

610

or services are specifically identified as common expenses in the

611

declaration of condominium, articles of incorporation, or bylaws

612

of the association.

613

     Section 3.  Subsection (8) of section 718.116, Florida

614

Statutes, is amended to read:

615

     718.116  Assessments; liability; lien and priority;

616

interest; collection.--

617

     (8)  Within 15 days after receiving a written request

618

therefor from a unit owner or his or her designee purchaser, or

619

a unit mortgagee or his or her designee, the association shall

620

provide a certificate signed by an officer or agent of the

621

association stating all assessments and other moneys owed to the

622

association by the unit owner with respect to the condominium

623

parcel.

624

     (a) Any person other than the owner who relies upon such

625

certificate shall be protected thereby.

626

     (b) A summary proceeding pursuant to s. 51.011 may be

627

brought to compel compliance with this subsection, and in any

628

such action the prevailing party is entitled to recover

629

reasonable attorney's fees.

630

     (c) Notwithstanding any limitation on transfer fees

631

contained in s. 718.112(2)(i), the association or its authorized

632

agent may charge a reasonable fee for the preparation of the

633

certificate. The amount of the fee must be included on the

634

certificate.

635

     (d) The authority to charge a fee under this section shall

636

be established by written resolution adopted by the board or

637

provided by written management, bookkeeping, or maintenance

638

contract. The fee is payable upon the preparation of the

639

certificate, and if the certificate is requested in conjunction

640

with the sale or mortgage of a unit and the closing does not

641

occur, the fee shall be refunded promptly upon written notice

642

from the person requesting the certificate stating that the sale

643

or mortgage did not occur. Any such refund is the obligation of

644

the unit owner and is collectable in the same manner as an

645

assessment as provided in this section.

646

     Section 4.  Paragraph (c) of subsection (17) of section

647

718.117, Florida Statutes, is amended to read:

648

     718.117  Termination of condominium.--

649

     (17)  DISTRIBUTION.--

650

     (c)  The proceeds from any sale of condominium property or

651

association property and any remaining condominium property or

652

association property, common surplus, and other assets shall be

653

distributed in the following priority:

654

     1.  To pay the reasonable termination trustee's fees and

655

costs and accounting fees and costs.

656

     2.  To lienholders of liens recorded prior to the recording

657

of the declaration.

658

     3.  To purchase-money lienholders on units to the extent

659

necessary to satisfy their liens; however, the distribution may

660

not exceed a unit owner's share of the proceeds.

661

     4.  To lienholders of liens of the association which have

662

been consented to under s. 718.121(1).

663

     5.  To creditors of the association, as their interests

664

appear.

665

     6.  To unit owners, the proceeds of any sale of condominium

666

property subject to satisfaction of liens on each unit in their

667

order of priority, in shares specified in the plan of

668

termination, unless objected to by a unit owner or lienor as

669

provided in paragraph (b).

670

     7.  To unit owners, the remaining condominium property,

671

subject to satisfaction of liens on each unit in their order of

672

priority, in shares specified in the plan of termination, unless

673

objected to by a unit owner or a lienor as provided in paragraph

674

(b).

675

     8.  To unit owners, the proceeds of any sale of association

676

property, the remaining association property, common surplus, and

677

other assets of the association, subject to satisfaction of liens

678

on each unit in their order of priority, in shares specified in

679

the plan of termination, unless objected to by a unit owner or a

680

lienor as provided in paragraph (b).

681

     Section 5.  Section 720.30851, Florida Statutes, is created

682

to read:

683

     720.30851 Estoppel certificates.--Within 15 days after the

684

date on which a request for an estoppel certificate is received

685

from a parcel owner or mortgagee, or his or her designee, the

686

association shall provide a certificate signed by an officer or

687

authorized agent of the association stating all assessments and

688

other moneys owed to the association by the parcel owner or

689

mortgagee with respect to the parcel. An association may charge a

690

fee for the preparation of such certificate, and the amount of

691

such fee must be stated on the certificate.

692

     (1) Any person other than a parcel owner who relies upon a

693

certificate receives the benefits and protection thereof.

694

     (2) A summary proceeding pursuant to s. 51.011 may be

695

brought to compel compliance with this section, and the

696

prevailing party is entitled to recover reasonable attorney's

697

fees.

698

     (3) The authority to charge a fee for a certificate

699

required by this section shall be established by written

700

resolution adopted by the board or provided by written

701

management, bookkeeping, or maintenance contract. The fee is

702

payable upon the preparation of the certificate, and, if the

703

certificate is requested in conjunction with the sale or mortgage

704

of a unit and the closing does not occur, the fee shall be

705

refunded promptly upon written notice from the person requesting

706

the certificate stating that the sale or mortgage did not occur.

707

Any such refund is the obligation of the unit owner and is

708

collectible in the same manner as an assessment as provided in

709

this section.

710

          Section 6.  Paragraphs (d) and (j) of subsection (2) of

711

section 20.165, Florida Statutes, are amended to read:

712

     20.165  Department of Business and Professional

713

Regulation.--There is created a Department of Business and

714

Professional Regulation.

715

     (2)  The following divisions of the Department of Business

716

and Professional Regulation are established:

717

     (d) Division of Florida Land Sales, Condominiums,

718

Timeshares, and Mobile Homes.

719

     (j) Division of Technology, Licensure, and Testing.

720

     Section 7.  Subsection (2) of section 73.073, Florida

721

Statutes, is amended to read:

722

     73.073  Eminent domain procedure with respect to condominium

723

common elements.--

724

     (2)  With respect to the exercise of eminent domain or a

725

negotiated sale for the purchase or taking of a portion of the

726

common elements of a condominium, the condemning authority shall

727

have the responsibility of contacting the condominium association

728

and acquiring the most recent rolls indicating the names of the

729

unit owners or contacting the appropriate taxing authority to

730

obtain the names of the owners of record on the tax rolls.

731

Notification shall thereupon be sent by certified mail, return

732

receipt requested, to the unit owners of record of the

733

condominium units by the condemning authority indicating the

734

intent to purchase or take the required property and requesting a

735

response from the unit owner. The condemning authority shall be

736

responsible for the expense of sending notification pursuant to

737

this section. Such notice shall, at a minimum, include:

738

     (a)  The name and address of the condemning authority.

739

     (b)  A written or visual description of the property.

740

     (c)  The public purpose for which the property is needed.

741

     (d)  The appraisal value of the property.

742

     (e)  A clear, concise statement relating to the unit owner's

743

right to object to the taking or appraisal value and the

744

procedures and effects of exercising that right.

745

     (f)  A clear, concise statement relating to the power of the

746

association to convey the property on behalf of the unit owners

747

if no objection to the taking or appraisal value is raised, and

748

the effects of this alternative on the unit owner.

749

750

The Division of Florida Land Sales, Condominiums, Timeshares, and

751

Mobile Homes of the Department of Business and Professional

752

Regulation may adopt, by rule, a standard form for such notice

753

and may require the notice to include any additional relevant

754

information.

755

     Section 8.  Subsections (2) and (3) of section 190.009,

756

Florida Statutes, are amended to read:

757

     190.009  Disclosure of public financing.--

758

     (2) The Division of Florida Land Sales, Condominiums, and

759

Mobile Homes of the Department of Business and Professional

760

Regulation shall ensure that disclosures made by developers

761

pursuant to chapter 498 meet the requirements of subsection (1).

762

     (2)(3) The Department of Community Affairs shall keep a

763

current list of districts and their disclosures pursuant to this

764

act and shall make such studies and reports and take such actions

765

as it deems necessary.

766

     Section 9.  Paragraph (e) of subsection (6) of section

767

192.037, Florida Statutes, is amended to read:

768

     192.037  Fee timeshare real property; taxes and assessments;

769

escrow.--

770

     (6)

771

     (e)  On or before May 1 of each year, a statement of

772

receipts and disbursements of the escrow account must be filed

773

with the Division of Florida Land Sales, Condominiums,

774

Timeshares, and Mobile Homes of the Department of Business and

775

Professional Regulation, which may enforce this paragraph

776

pursuant to s. 721.26. This statement must appropriately show the

777

amount of principal and interest in such account.

778

     Section 10.  Paragraph (i) of subsection (8) of section

779

213.053, Florida Statutes, is amended to read:

780

     213.053  Confidentiality and information sharing.--

781

     (8)  Notwithstanding any other provision of this section,

782

the department may provide:

783

     (i)  Information relative to chapters 212 and 326 to the

784

Division of Florida Land Sales, Condominiums, Timeshares, and

785

Mobile Homes of the Department of Business and Professional

786

Regulation in the conduct of its official duties.

787

788

Disclosure of information under this subsection shall be pursuant

789

to a written agreement between the executive director and the

790

agency. Such agencies, governmental or nongovernmental, shall be

791

bound by the same requirements of confidentiality as the

792

Department of Revenue. Breach of confidentiality is a misdemeanor

793

of the first degree, punishable as provided by s. 775.082 or s.

794

775.083.

795

     Section 11.  Paragraph (d) of subsection (4) of section

796

215.20, Florida Statutes, is amended to read:

797

     215.20  Certain income and certain trust funds to contribute

798

to the General Revenue Fund.--

799

     (4)  The income of a revenue nature deposited in the

800

following described trust funds, by whatever name designated, is

801

that from which the appropriations authorized by subsection (3)

802

shall be made:

803

     (d)  Within the Department of Business and Professional

804

Regulation:

805

     1.  The Administrative Trust Fund.

806

     2.  The Alcoholic Beverage and Tobacco Trust Fund.

807

     3.  The Cigarette Tax Collection Trust Fund.

808

     4. The Division of Florida Land Sales, Condominiums,

809

Timeshares, and Mobile Homes Trust Fund.

810

     5.  The Hotel and Restaurant Trust Fund, with the exception

811

of those fees collected for the purpose of funding of the

812

hospitality education program as stated in s. 509.302.

813

     6.  The Professional Regulation Trust Fund.

814

     7.  The trust funds administered by the Division of Pari-

815

mutuel Wagering.

816

817

The enumeration of the foregoing moneys or trust funds shall not

818

prohibit the applicability thereto of s. 215.24 should the

819

Governor determine that for the reasons mentioned in s. 215.24

820

the money or trust funds should be exempt herefrom, as it is the

821

purpose of this law to exempt income from its force and effect

822

when, by the operation of this law, federal matching funds or

823

contributions or private grants to any trust fund would be lost

824

to the state.

825

     Section 12.  Subsection (2) of section 326.002, Florida

826

Statutes, is amended to read:

827

     326.002  Definitions.--As used in ss. 326.001-326.006, the

828

term:

829

     (2) "Division" means the Division of Florida Land Sales,

830

Condominiums, Timeshares, and Mobile Homes of the Department of

831

Business and Professional Regulation.

832

     Section 13.  Paragraph (d) of subsection (2) and subsection

833

(3) of section 326.006, Florida Statutes, are amended to read:

834

     326.006  Powers and duties of division.--

835

     (2)  The division has the power to enforce and ensure

836

compliance with the provisions of this chapter and rules adopted

837

under this chapter relating to the sale and ownership of yachts

838

and ships. In performing its duties, the division has the

839

following powers and duties:

840

     (d)  Notwithstanding any remedies available to a yacht or

841

ship purchaser, if the division has reasonable cause to believe

842

that a violation of any provision of this chapter or rule adopted

843

under this chapter has occurred, the division may institute

844

enforcement proceedings in its own name against any broker or

845

salesperson or any of his or her assignees or agents, or against

846

any unlicensed person or any of his or her assignees or agents,

847

as follows:

848

     1.  The division may permit a person whose conduct or

849

actions are under investigation to waive formal proceedings and

850

enter into a consent proceeding whereby orders, rules, or letters

851

of censure or warning, whether formal or informal, may be entered

852

against the person.

853

     2.  The division may issue an order requiring the broker or

854

salesperson or any of his or her assignees or agents, or

855

requiring any unlicensed person or any of his or her assignees or

856

agents, to cease and desist from the unlawful practice and take

857

such affirmative action as in the judgment of the division will

858

carry out the purposes of this chapter.

859

     3.  The division may bring an action in circuit court on

860

behalf of a class of yacht or ship purchasers for declaratory

861

relief, injunctive relief, or restitution.

862

     4.  The division may impose a civil penalty against a broker

863

or salesperson or any of his or her assignees or agents, or

864

against an unlicensed person or any of his or her assignees or

865

agents, for any violation of this chapter or a rule adopted under

866

this chapter. A penalty may be imposed for each day of continuing

867

violation, but in no event may the penalty for any offense exceed

868

$10,000. All amounts collected must be deposited with the Chief

869

Financial Officer to the credit of the Division of Florida Land

870

Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund. If

871

a broker, salesperson, or unlicensed person working for a broker,

872

fails to pay the civil penalty, the division shall thereupon

873

issue an order suspending the broker's license until such time as

874

the civil penalty is paid or may pursue enforcement of the

875

penalty in a court of competent jurisdiction. The order imposing

876

the civil penalty or the order of suspension may not become

877

effective until 20 days after the date of such order. Any action

878

commenced by the division must be brought in the county in which

879

the division has its executive offices or in the county where the

880

violation occurred.

881

     (3)  All fees must be deposited in the Division of Florida

882

Land Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund

883

as provided by law.

884

     Section 14.  Subsection (18) of section 380.05, Florida

885

Statutes, is amended to read:

886

     380.05  Areas of critical state concern.--

887

     (18)  Neither the designation of an area of critical state

888

concern nor the adoption of any regulations for such an area

889

shall in any way limit or modify the rights of any person to

890

complete any development that was has been authorized by

891

registration of a subdivision pursuant to former chapter 498 or

892

former chapter 478, by recordation pursuant to local subdivision

893

plat law, or by a building permit or other authorization to

894

commence development on which there has been reliance and a

895

change of position, and which registration or recordation was

896

accomplished, or which permit or authorization was issued, prior

897

to the approval under subsection (6), or the adoption under

898

subsection (8), of land development regulations for the area of

899

critical state concern. If a developer has by his or her actions

900

in reliance on prior regulations obtained vested or other legal

901

rights that in law would have prevented a local government from

902

changing those regulations in a way adverse to the developer's

903

interests, nothing in this chapter authorizes any governmental

904

agency to abridge those rights.

905

     Section 15.  Subsection (20) of section 380.06, Florida

906

Statutes, is amended to read:

907

     380.06  Developments of regional impact.--

908

     (20)  VESTED RIGHTS.--Nothing in this section shall limit or

909

modify the rights of any person to complete any development that

910

was has been authorized by registration of a subdivision pursuant

911

to former chapter 498, by recordation pursuant to local

912

subdivision plat law, or by a building permit or other

913

authorization to commence development on which there has been

914

reliance and a change of position and which registration or

915

recordation was accomplished, or which permit or authorization

916

was issued, prior to July 1, 1973. If a developer has, by his or

917

her actions in reliance on prior regulations, obtained vested or

918

other legal rights that in law would have prevented a local

919

government from changing those regulations in a way adverse to

920

the developer's interests, nothing in this chapter authorizes any

921

governmental agency to abridge those rights.

922

     (a)  For the purpose of determining the vesting of rights

923

under this subsection, approval pursuant to local subdivision

924

plat law, ordinances, or regulations of a subdivision plat by

925

formal vote of a county or municipal governmental body having

926

jurisdiction after August 1, 1967, and prior to July 1, 1973, is

927

sufficient to vest all property rights for the purposes of this

928

subsection; and no action in reliance on, or change of position

929

concerning, such local governmental approval is required for

930

vesting to take place. Anyone claiming vested rights under this

931

paragraph must so notify the department in writing by January 1,

932

1986. Such notification shall include information adequate to

933

document the rights established by this subsection. When such

934

notification requirements are met, in order for the vested rights

935

authorized pursuant to this paragraph to remain valid after June

936

30, 1990, development of the vested plan must be commenced prior

937

to that date upon the property that the state land planning

938

agency has determined to have acquired vested rights following

939

the notification or in a binding letter of interpretation. When

940

the notification requirements have not been met, the vested

941

rights authorized by this paragraph shall expire June 30, 1986,

942

unless development commenced prior to that date.

943

     (b)  For the purpose of this act, the conveyance of, or the

944

agreement to convey, property to the county, state, or local

945

government as a prerequisite to zoning change approval shall be

946

construed as an act of reliance to vest rights as determined

947

under this subsection, provided such zoning change is actually

948

granted by such government.

949

     Section 16.  Paragraph (a) of subsection (4) of section

950

380.0651, Florida Statutes, is amended to read:

951

     380.0651  Statewide guidelines and standards.--

952

     (4)  Two or more developments, represented by their owners

953

or developers to be separate developments, shall be aggregated

954

and treated as a single development under this chapter when they

955

are determined to be part of a unified plan of development and

956

are physically proximate to one other.

957

     (a)  The criteria of two of the following subparagraphs must

958

be met in order for the state land planning agency to determine

959

that there is a unified plan of development:

960

     1.a.  The same person has retained or shared control of the

961

developments;

962

     b.  The same person has ownership or a significant legal or

963

equitable interest in the developments; or

964

     c.  There is common management of the developments

965

controlling the form of physical development or disposition of

966

parcels of the development.

967

     2.  There is a reasonable closeness in time between the

968

completion of 80 percent or less of one development and the

969

submission to a governmental agency of a master plan or series of

970

plans or drawings for the other development which is indicative

971

of a common development effort.

972

     3.  A master plan or series of plans or drawings exists

973

covering the developments sought to be aggregated which have been

974

submitted to a local general-purpose government, water management

975

district, the Florida Department of Environmental Protection, or

976

the Division of Florida Land Sales, Condominiums, Timeshares, and

977

Mobile Homes for authorization to commence development. The

978

existence or implementation of a utility's master utility plan

979

required by the Public Service Commission or general-purpose

980

local government or a master drainage plan shall not be the sole

981

determinant of the existence of a master plan.

982

     4.  The voluntary sharing of infrastructure that is

983

indicative of a common development effort or is designated

984

specifically to accommodate the developments sought to be

985

aggregated, except that which was implemented because it was

986

required by a local general-purpose government; water management

987

district; the Department of Environmental Protection; the

988

Division of Florida Land Sales, Condominiums, Timeshares, and

989

Mobile Homes; or the Public Service Commission.

990

     5.  There is a common advertising scheme or promotional plan

991

in effect for the developments sought to be aggregated.

992

     Section 17.  Paragraph (c) of subsection (4) of section

993

381.0065, Florida Statutes, is amended to read:

994

     381.0065  Onsite sewage treatment and disposal systems;

995

regulation.--

996

     (4)  PERMITS; INSTALLATION; AND CONDITIONS.--A person may

997

not construct, repair, modify, abandon, or operate an onsite

998

sewage treatment and disposal system without first obtaining a

999

permit approved by the department. The department may issue

1000

permits to carry out this section, but shall not make the

1001

issuance of such permits contingent upon prior approval by the

1002

Department of Environmental Protection, except that the issuance

1003

of a permit for work seaward of the coastal construction control

1004

line established under s. 161.053 shall be contingent upon

1005

receipt of any required coastal construction control line permit

1006

from the Department of Environmental Protection. A construction

1007

permit is valid for 18 months from the issuance date and may be

1008

extended by the department for one 90-day period under rules

1009

adopted by the department. A repair permit is valid for 90 days

1010

from the date of issuance. An operating permit must be obtained

1011

prior to the use of any aerobic treatment unit or if the

1012

establishment generates commercial waste. Buildings or

1013

establishments that use an aerobic treatment unit or generate

1014

commercial waste shall be inspected by the department at least

1015

annually to assure compliance with the terms of the operating

1016

permit. The operating permit for a commercial wastewater system

1017

is valid for 1 year from the date of issuance and must be renewed

1018

annually. The operating permit for an aerobic treatment unit is

1019

valid for 2 years from the date of issuance and must be renewed

1020

every 2 years. If all information pertaining to the siting,

1021

location, and installation conditions or repair of an onsite

1022

sewage treatment and disposal system remains the same, a

1023

construction or repair permit for the onsite sewage treatment and

1024

disposal system may be transferred to another person, if the

1025

transferee files, within 60 days after the transfer of ownership,

1026

an amended application providing all corrected information and

1027

proof of ownership of the property. There is no fee associated

1028

with the processing of this supplemental information. A person

1029

may not contract to construct, modify, alter, repair, service,

1030

abandon, or maintain any portion of an onsite sewage treatment

1031

and disposal system without being registered under part III of

1032

chapter 489. A property owner who personally performs

1033

construction, maintenance, or repairs to a system serving his or

1034

her own owner-occupied single-family residence is exempt from

1035

registration requirements for performing such construction,

1036

maintenance, or repairs on that residence, but is subject to all

1037

permitting requirements. A municipality or political subdivision

1038

of the state may not issue a building or plumbing permit for any

1039

building that requires the use of an onsite sewage treatment and

1040

disposal system unless the owner or builder has received a

1041

construction permit for such system from the department. A

1042

building or structure may not be occupied and a municipality,

1043

political subdivision, or any state or federal agency may not

1044

authorize occupancy until the department approves the final

1045

installation of the onsite sewage treatment and disposal system.

1046

A municipality or political subdivision of the state may not

1047

approve any change in occupancy or tenancy of a building that

1048

uses an onsite sewage treatment and disposal system until the

1049

department has reviewed the use of the system with the proposed

1050

change, approved the change, and amended the operating permit.

1051

     (c) Notwithstanding the provisions of paragraphs (a) and

1052

(b), for subdivisions platted of record on or before October 1,

1053

1991, when a developer or other appropriate entity has previously

1054

made or makes provisions, including financial assurances or other

1055

commitments, acceptable to the Department of Health, that a

1056

central water system will be installed by a regulated public

1057

utility based on a density formula, private potable wells may be

1058

used with onsite sewage treatment and disposal systems until the

1059

agreed-upon densities are reached. The department may consider

1060

assurances filed with the Department of Business and Professional

1061

Regulation under chapter 498 in determining the adequacy of the

1062

financial assurance required by this paragraph. In a subdivision

1063

regulated by this paragraph, the average daily sewage flow may

1064

not exceed 2,500 gallons per acre per day. This section does not

1065

affect the validity of existing prior agreements. After October

1066

1, 1991, the exception provided under this paragraph is not

1067

available to a developer or other appropriate entity.

1068

     Section 18.  Subsections (8) through (12) of section 450.33,

1069

Florida Statutes, are amended to read:

1070

     450.33  Duties of farm labor contractor.--Every farm labor

1071

contractor must:

1072

     (8) File, within such time as the department may prescribe,

1073

a set of his or her fingerprints.

1074

     (8)(9) Produce evidence to the department that each vehicle

1075

he or she uses for the transportation of employees complies with

1076

the requirements and specifications established in chapter 316,

1077

s. 316.622, or Pub. L. No. 93-518 as amended by Pub. L. No. 97-

1078

470 meeting Department of Transportation requirements or, in lieu

1079

thereof, bears a valid inspection sticker showing that the

1080

vehicle has passed the inspection in the state in which the

1081

vehicle is registered.

1082

     (9)(10) Comply with all applicable statutes, rules, and

1083

regulations of the United States and of the State of Florida for

1084

the protection or benefit of labor, including, but not limited

1085

to, those providing for wages, hours, fair labor standards,

1086

social security, workers' compensation, unemployment

1087

compensation, child labor, and transportation.

1088

     (10)(11) Maintain accurate daily field records for each

1089

employee actually paid by the farm labor contractor reflecting

1090

the hours worked for the farm labor contractor and, if paid by

1091

unit, the number of units harvested and the amount paid per unit.

1092

     (11)(12) Clearly display on each vehicle used to transport

1093

migrant or seasonal farm workers a display sticker issued by the

1094

department, which states that the vehicle is authorized by the

1095

department to transport farm workers and the expiration date of

1096

the authorization.

1097

     Section 19.  Subsection (10) is added to section 455.203,

1098

Florida Statutes, to read:

1099

     455.203  Department; powers and duties.--The department, for

1100

the boards under its jurisdiction, shall:

1101

     (10) Have authority to:

1102

     (a) Close and terminate deficient license application files

1103

2 years after the board or the department notifies the applicant

1104

of the deficiency; and

1105

     (b) Approve applications for professional licenses that

1106

meet all statutory and rule requirements for licensure.

1107

     Section 20.  Subsection (5) of section 455.116, Florida

1108

Statutes, is amended to read:

1109

     455.116  Regulation trust funds.--The following trust funds

1110

shall be placed in the department:

1111

     (5) Division of Florida Land Sales, Condominiums,

1112

Timeshares, and Mobile Homes Trust Fund.

1113

     Section 21.  Subsection (1) of section 455.217, Florida

1114

Statutes, is amended to read:

1115

     455.217  Examinations.--This section shall be read in

1116

conjunction with the appropriate practice act associated with

1117

each regulated profession under this chapter.

1118

     (1) The Division of Technology, Licensure, and Testing of

1119

the Department of Business and Professional Regulation shall

1120

provide, contract, or approve services for the development,

1121

preparation, administration, scoring, score reporting, and

1122

evaluation of all examinations. The division shall seek the

1123

advice of the appropriate board in providing such services.

1124

     (a)  The department, acting in conjunction with the Division

1125

of Technology, Licensure, and Testing and the Division of Real

1126

Estate, as appropriate, shall ensure that examinations adequately

1127

and reliably measure an applicant's ability to practice the

1128

profession regulated by the department. After an examination

1129

developed or approved by the department has been administered,

1130

the board or department may reject any question which does not

1131

reliably measure the general areas of competency specified in the

1132

rules of the board or department, when there is no board. The

1133

department shall use professional testing services for the

1134

development, preparation, and evaluation of examinations, when

1135

such services are available and approved by the board.

1136

     (b)  For each examination developed by the department or

1137

contracted vendor, to the extent not otherwise specified by

1138

statute, the board or the department when there is no board,

1139

shall by rule specify the general areas of competency to be

1140

covered by the examination, the relative weight to be assigned in

1141

grading each area tested, the score necessary to achieve a

1142

passing grade, and the fees, where applicable, to cover the

1143

actual cost for any purchase, development, and administration of

1144

the required examination. However, statutory fee caps in each

1145

practice act shall apply. This subsection does not apply to

1146

national examinations approved and administered pursuant to

1147

paragraph (d).

1148

     (c)  If a practical examination is deemed to be necessary,

1149

rules shall specify the criteria by which examiners are to be

1150

selected, the grading criteria to be used by the examiner, the

1151

relative weight to be assigned in grading each criterion, and the

1152

score necessary to achieve a passing grade. When a mandatory

1153

standardization exercise for a practical examination is required

1154

by law, the board may conduct such exercise. Therefore, board

1155

members may serve as examiners at a practical examination with

1156

the consent of the board.

1157

     (d)  A board, or the department when there is no board, may

1158

approve by rule the use of any national examination which the

1159

department has certified as meeting requirements of national

1160

examinations and generally accepted testing standards pursuant to

1161

department rules. Providers of examinations, which may be either

1162

profit or nonprofit entities, seeking certification by the

1163

department shall pay the actual costs incurred by the department

1164

in making a determination regarding the certification. The

1165

department shall use any national examination which is available,

1166

certified by the department, and approved by the board. The name

1167

and number of a candidate may be provided to a national

1168

contractor for the limited purpose of preparing the grade tape

1169

and information to be returned to the board or department or, to

1170

the extent otherwise specified by rule, the candidate may apply

1171

directly to the vendor of the national examination. The

1172

department may delegate to the board the duty to provide and

1173

administer the examination. Any national examination approved by

1174

a board, or the department when there is no board, prior to

1175

October 1, 1997, is deemed certified under this paragraph. Any

1176

licensing or certification examination that is not developed or

1177

administered by the department in-house or provided as a national

1178

examination shall be competitively bid.

1179

     (e)  The department shall adopt rules regarding the security

1180

and monitoring of examinations. In order to maintain the security

1181

of examinations, the department may employ the procedures set

1182

forth in s. 455.228 to seek fines and injunctive relief against

1183

an examinee who violates the provisions of s. 455.2175 or the

1184

rules adopted pursuant to this paragraph. The department, or any

1185

agent thereof, may, for the purposes of investigation, confiscate

1186

any written, photographic, or recording material or device in the

1187

possession of the examinee at the examination site which the

1188

department deems necessary to enforce such provisions or rules.

1189

     (f)  If the professional board with jurisdiction over an

1190

examination concurs, the department may, for a fee, share with

1191

any other state's licensing authority an examination developed by

1192

or for the department unless prohibited by a contract entered

1193

into by the department for development or purchase of the

1194

examination. The department, with the concurrence of the

1195

appropriate board, shall establish guidelines that ensure

1196

security of a shared exam and shall require that any other

1197

state's licensing authority comply with those guidelines. Those

1198

guidelines shall be approved by the appropriate professional

1199

board. All fees paid by the user shall be applied to the

1200

department's examination and development program for professions

1201

regulated by this chapter. All fees paid by the user for

1202

professions not regulated by this chapter shall be applied to

1203

offset the fees for the development and administration of that

1204

profession's examination. If both a written and a practical

1205

examination are given, an applicant shall be required to retake

1206

only the portion of the examination for which he or she failed to

1207

achieve a passing grade, if he or she successfully passes that

1208

portion within a reasonable time of his or her passing the other

1209

portion.

1210

     Section 22.  Subsection (6) is added to section 455.2273,

1211

Florida Statutes, to read:

1212

     455.2273  Disciplinary guidelines.--

1213

     (6) Notwithstanding s. 455.017, this section applies to

1214

disciplinary guidelines adopted by all boards or divisions within

1215

the department.

1216

     Section 23.  Effective July 1, 2010, paragraph (d) of

1217

subsection (1) and paragraph (d) of subsection (2) of section

1218

468.841, Florida Statutes, are amended to read:

1219

     468.841  Exemptions.--

1220

     (1)  The following persons are not required to comply with

1221

any provisions of this part relating to mold assessment:

1222

     (d)  Persons or business organizations acting within the

1223

scope of the respective licenses required under chapter 471, part

1224

I of chapter 481, chapter 482, or chapter 489, or part XV of this

1225

chapter, are acting on behalf of an insurer under part VI of

1226

chapter 626, or are persons in the manufactured housing industry

1227

who are licensed under chapter 320, except when any such persons

1228

or business organizations hold themselves out for hire to the

1229

public as a "certified mold assessor remediator," "registered

1230

mold assessor remediator," "licensed mold assessor remediator,"

1231

"mold assessor remediator," "professional mold assessor

1232

remediator," or any combination thereof stating or implying

1233

licensure under this part.

1234

     (2)  The following persons are not required to comply with

1235

any provisions of this part relating to mold remediation:

1236

     (d)  Persons or business organizations that are acting

1237

within the scope of the respective licenses required under

1238

chapter 471, part I of chapter 481, chapter 482, or chapter 489,

1239

or part XV of this chapter, are acting on behalf of an insurer

1240

under part VI of chapter 626, or are persons in the manufactured

1241

housing industry who are licensed under chapter 320, except when

1242

any such persons or business organizations hold themselves out

1243

for hire to the public as a "certified mold remediator assessor,"

1244

"registered mold remediator assessor," "licensed mold remediator

1245

assessor," "mold remediator assessor," "professional mold

1246

remediator assessor," or any combination thereof stating or

1247

implying licensure under this part.

1248

     Section 24.  Paragraph (b) of subsection (2) of section

1249

475.17, Florida Statutes, is amended to read:

1250

     475.17  Qualifications for practice.--

1251

     (2)

1252

     (b)  A person may not be licensed as a real estate broker

1253

unless, in addition to the other requirements of law, the person

1254

has held:

1255

     1.  An active real estate sales associate's license for at

1256

least 24 12 months during the preceding 5 years in the office of

1257

one or more real estate brokers licensed in this state or any

1258

other state, territory, or jurisdiction of the United States or

1259

in any foreign national jurisdiction;

1260

     2.  A current and valid real estate sales associate's

1261

license for at least 24 12 months during the preceding 5 years in

1262

the employ of a governmental agency for a salary and performing

1263

the duties authorized in this part for real estate licensees; or

1264

     3.  A current and valid real estate broker's license for at

1265

least 24 12 months during the preceding 5 years in any other

1266

state, territory, or jurisdiction of the United States or in any

1267

foreign national jurisdiction.

1268

1269

This paragraph does not apply to a person employed as a real

1270

estate investigator by the Division of Real Estate, provided the

1271

person has been employed as a real estate investigator for at

1272

least 24 months. The person must be currently employed as a real

1273

estate investigator to sit for the real estate broker's

1274

examination and have held a valid and current sales associate's

1275

license for at least 12 months.

1276

     Section 25.  Subsection (9) of section 475.451, Florida

1277

Statutes, is amended to read:

1278

     475.451  Schools teaching real estate practice.--

1279

     (9)(a) Each school permitholder of a proprietary real

1280

estate school, each chief administrative person of such an

1281

institution, or each course sponsor shall deliver to the

1282

department, in a format acceptable to the department, a copy of

1283

the classroom course roster of courses that require satisfactory

1284

completion of an examination no later than 30 days beyond the end

1285

of the calendar month in which the course was completed.

1286

     (b) The course roster shall consist of the institution or

1287

school name and permit number, if applicable, the instructor's

1288

name and permit number, if applicable, course title, beginning

1289

and ending dates of the course, number of course hours, course

1290

location, if applicable, each student's full name and license

1291

number, if applicable, each student's mailing address, and the

1292

numerical grade each student achieved. The course roster shall

1293

also include the signature of the school permitholder, the chief

1294

administrative person, or the course sponsor.

1295

     Section 26.  Section 475.455, Florida Statutes, is amended

1296

to read:

1297

     475.455  Exchange of disciplinary information.--The

1298

commission shall inform the Division of Florida Land Sales,

1299

Condominiums, Timeshares, and Mobile Homes of the Department of

1300

Business and Professional Regulation of any disciplinary action

1301

the commission has taken against any of its licensees. The

1302

division shall inform the commission of any disciplinary action

1303

the division has taken against any broker or sales associate

1304

registered with the division.

1305

     Section 27.  Subsection (6) of section 489.105, Florida

1306

Statutes, is amended to read:

1307

     489.105  Definitions.--As used in this part:

1308

     (6)  "Contracting" means, except as exempted in this part,

1309

engaging in business as a contractor and includes, but is not

1310

limited to, performance of any of the acts as set forth in

1311

subsection (3) which define types of contractors. The attempted

1312

sale of contracting services and the negotiation or bid for a

1313

contract on these services also constitutes contracting. If the

1314

services offered require licensure or agent qualification, the

1315

offering, negotiation for a bid, or attempted sale of these

1316

services requires the corresponding licensure. However, the term

1317

"contracting" shall not extend to an individual, partnership,

1318

corporation, trust, or other legal entity that offers to sell or

1319

sells completed residences on property on which the individual or

1320

business entity has any legal or equitable interest, or to the

1321

individual or business entity that offers to sell or sells

1322

manufactured or factory-built buildings that will be completed on

1323

site on property on which either party to a contract has any

1324

legal or equitable interest, if the services of a qualified

1325

contractor certified or registered pursuant to the requirements

1326

of this chapter have been or will be retained for the purpose of

1327

constructing or completing such residences.

1328

     Section 28.  Section 489.511, Florida Statutes, is amended

1329

to read:

1330

     489.511  Certification; application; examinations;

1331

endorsement.--

1332

     (1)(a) Any person who is at least 18 years of age may take

1333

the certification examination.

1334

     (b) Any person desiring to be certified as a contractor

1335

shall apply to the department in writing and must meet the

1336

following criteria: to take the certification examination.

1337

     (2)(a) A person shall be entitled to take the certification

1338

examination for the purpose of determining whether he or she is

1339

qualified to engage in contracting throughout the state as a

1340

contractor if the person:

1341

     1. Is at least 18 years of age;

1342

     1.2. Be Is of good moral character;

1343

     2. Pass the certification examination, achieving a passing

1344

grade as established by board rule; and

1345

     3. Meet Meets eligibility requirements according to one of

1346

the following criteria:

1347

     a.  Has, within the 6 years immediately preceding the filing

1348

of the application, at least 3 years' proven management

1349

experience in the trade or education equivalent thereto, or a

1350

combination thereof, but not more than one-half of such

1351

experience may be educational equivalent;

1352

     b.  Has, within the 8 years immediately preceding the filing

1353

of the application, at least 4 years' experience as a supervisor

1354

or contractor in the trade for which he or she is making

1355

application;

1356

     c.  Has, within the 12 years immediately preceding the

1357

filing of the application, at least 6 years of comprehensive

1358

training, technical education, or supervisory experience

1359

associated with an electrical or alarm system contracting

1360

business, or at least 6 years of technical experience in

1361

electrical or alarm system work with the Armed Forces or a

1362

governmental entity;

1363

     d.  Has, within the 12 years immediately preceding the

1364

filing of the application, been licensed for 3 years as a

1365

professional engineer who is qualified by education, training, or

1366

experience to practice electrical engineering; or

1367

     e.  Has any combination of qualifications under sub-

1368

subparagraphs a.-c. totaling 6 years of experience.

1369

     (c)(b) For purposes of this subsection, "supervisor" means

1370

a person having the experience gained while having the general

1371

duty of overseeing the technical duties of the trade, provided

1372

that such experience is gained by a person who is able to perform

1373

the technical duties of the trade without supervision.

1374

     (d)(c) For purposes of this subsection, at least 40 percent

1375

of the work experience for an alarm system contractor I must be

1376

in the types of fire alarm systems typically used in a commercial

1377

setting.

1378

     (2)(3) The board may determine by rule the number of times

1379

per year the applicant may take the examination and after three

1380

unsuccessful attempts may On or after October 1, 1998, every

1381

applicant who is qualified shall be allowed to take the

1382

examination three times, notwithstanding the number of times the

1383

applicant has previously failed the examination. If an applicant

1384

fails the examination three times after October 1, 1998, the

1385

board shall require the applicant to complete additional college-

1386

level or technical education courses in the areas of deficiency,

1387

as determined by the board, as a condition of future eligibility

1388

to take the examination. The applicant must also submit a new

1389

application that meets all certification requirements at the time

1390

of its submission and must pay all appropriate fees.

1391

     (3)(4)(a) "Good moral character" means a personal history

1392

of honesty, fairness, and respect for the rights of others and

1393

for laws of this state and nation.

1394

     (b)  The board may determine that an individual applying for

1395

certification is ineligible to take the examination for failure

1396

to satisfy the requirement of good moral character only if:

1397

     1.  There is a substantial connection between the lack of

1398

good moral character of the individual and the professional

1399

responsibilities of a certified contractor; and

1400

     2.  The finding by the board of lack of good moral character

1401

is supported by clear and convincing evidence.

1402

     (c)  When an individual is found to be unqualified for

1403

certification examination because of a lack of good moral

1404

character, the board shall furnish such individual a statement

1405

containing the findings of the board, a complete record of the

1406

evidence upon which the determination was based, and a notice of

1407

the rights of the individual to a rehearing and appeal.

1408

     (4)(5) The board shall, by rule, designate those types of

1409

specialty electrical or alarm system contractors who may be

1410

certified under this part. The limit of the scope of work and

1411

responsibility of a certified specialty contractor shall be

1412

established by board rule. A certified specialty contractor

1413

category exists as an optional statewide licensing category.

1414

Qualification for certification in a specialty category created

1415

by rule shall be the same as set forth in paragraph (1)(b)

1416

(2)(a). The existence of a specialty category created by rule

1417

does not itself create any licensing requirement; however,

1418

neither does its optional nature remove any licensure requirement

1419

established elsewhere in this part.

1420

     (5)(6) The board shall certify as qualified for

1421

certification by endorsement any individual applying for

1422

certification who:

1423

     (a)  Meets the requirements for certification as set forth

1424

in this section; has passed a national, regional, state, or

1425

United States territorial licensing examination that is

1426

substantially equivalent to the examination required by this

1427

part; and has satisfied the requirements set forth in s. 489.521;

1428

or

1429

     (b)  Holds a valid license to practice electrical or alarm

1430

system contracting issued by another state or territory of the

1431

United States, if the criteria for issuance of such license was

1432

substantially equivalent to the certification criteria that

1433

existed in this state at the time the certificate was issued.

1434

     (6)(7) Upon the issuance of a certificate, any previously

1435

issued registered licenses for the classification in which the

1436

certification is issued are rendered void.

1437

     Section 29.  Paragraph (b) of subsection (1) of section

1438

489.515, Florida Statutes, is amended to read:

1439

     489.515  Issuance of certificates; registrations.--

1440

     (1)

1441

     (b)  The board shall certify as qualified for certification

1442

any person who satisfies the requirements of s. 489.511, who

1443

successfully passes the certification examination administered by

1444

the department, achieving a passing grade as established by board

1445

rule, and who submits satisfactory evidence that he or she has

1446

obtained both workers' compensation insurance or an acceptable

1447

exemption certificate issued by the department and public

1448

liability and property damage insurance for the health, safety,

1449

and welfare of the public in amounts determined by rule of the

1450

board, and furnishes evidence of financial responsibility,

1451

credit, and business reputation of either himself or herself or

1452

the business organization he or she desires to qualify.

1453

     Section 30.  Section 494.008, Florida Statutes, is amended

1454

to read:

1455

     494.008 Mortgages offered by land developers licensed

1456

pursuant to the Florida Uniform Land Sales Practices Law;

1457

requirements; prohibitions.--No mortgage loan which has a face

1458

amount of $35,000 or less and is secured by vacant land

1459

registered under the Florida Uniform Land Sales Practices Law,

1460

chapter 498, shall be sold to a mortgagee, except a financial

1461

institution, by any person unless all of the following

1462

requirements are met:

1463

     (1)  Each mortgage securing a note or other obligation sold

1464

or offered for sale shall be eligible for a recordation as a

1465

first mortgage.

1466

     (2)  Each mortgage negotiated pursuant to this section must

1467

include a mortgagee's title insurance policy or an opinion of

1468

title, from an attorney who is licensed to practice law in this

1469

state, on each parcel of land which is described in the mortgage.

1470

The policy or opinion shall reflect that there are no other

1471

mortgages on the property. A notice stating the priority of the

1472

mortgage shall be placed on the face of each mortgage in an

1473

amount over $35,000 issued pursuant to this section.

1474

     (3)  Contracts to purchase a mortgage loan shall contain,

1475

immediately above the purchaser's signature line, the statement

1476

in 10-point boldfaced type: "This mortgage is secured by vacant

1477

land subject to development at a future time." This statement

1478

shall also be typed or printed in 10-point type on the face of

1479

the note and mortgage sold.

1480

     (4)  The most recent assessment for tax purposes made by the

1481

county property appraiser of each parcel of land described in the

1482

mortgage shall be furnished to each mortgagee.

1483

     (5)  The mortgage broker shall record or cause to be

1484

recorded all mortgages or other similar documents prior to

1485

delivery of the note and mortgage to the mortgagee.

1486

     (6)  All funds received by the mortgage broker pursuant to

1487

this section shall promptly be deposited in the broker's trust

1488

account where they shall remain until the note and mortgage are

1489

fully executed and recorded.

1490

     (7)  Willful failure to comply with any of the above

1491

provisions shall subject the person to the penalties of s.

1492

494.05.

1493

     Section 31. Section 498.009, Florida Statutes, is

1494

renumbered as section 718.50152, Florida Statutes.

1495

     Section 32.  Section 498.011, Florida Statutes, is

1496

renumbered as section 718.50153, Florida Statutes, and amended to

1497

read:

1498

     718.50153 498.011 Payment of per diem, mileage, and other

1499

expenses to division employees.--The amount of per diem and

1500

mileage and expense money paid to employees shall be as provided

1501

in s. 112.061, except that the division shall establish by rule

1502

the standards for reimbursement of actual verified expenses

1503

incurred in connection with an on-site review inspection or

1504

investigation of subdivided lands.

1505

     Section 33. Section 498.013, Florida Statutes, is

1506

renumbered as section 718.50154, Florida Statutes.

1507

     Section 34.  Section 498.057, Florida Statutes, is

1508

renumbered as section 718.50155, Florida Statutes, and amended,

1509

to read:

1510

     718.50155 498.057 Service of process.--

1511

     (1)  In addition to the methods of service provided for in

1512

the Florida Rules of Civil Procedure and the Florida Statutes,

1513

service may be made and by delivering a copy of the process to

1514

the director of the division, which shall be binding upon the

1515

defendant or respondent if:

1516

     (a) The division plaintiff, which is acting as the

1517

petitioner or plaintiff may be the division, immediately sends a

1518

copy of the process and of the pleading by certified mail to the

1519

defendant or respondent at his or her last known address;, and

1520

     (b) The division plaintiff files an affidavit of compliance

1521

with this section on or before the return date of the process or

1522

within the time set by the court.

1523

     (2)  If any person, including any nonresident of this state,

1524

allegedly engages in conduct prohibited by this chapter, or any

1525

rule or order of the division, and has not filed a consent to

1526

service of process, and personal jurisdiction over him or her

1527

cannot otherwise be obtained in this state, the director shall be

1528

authorized to receive service of process in any noncriminal

1529

proceeding against that person or his or her successor which

1530

grows out of the conduct and which is brought by the division

1531

under this chapter or any rule or order of the division. The

1532

process shall have the same force and validity as if personally

1533

served. Notice shall be given as provided in subsection (1).

1534

     Section 35. Sections 498.001, 498.003, 498.005, 498.007,

1535

498.017, 498.019, 498.021, 498.022, 498.023, 498.024, 498.025,

1536

498.027, 498.028, 498.029, 498.031, 498.033, 498.035, 498.037,

1537

498.039, 498.041, 498.047, 498.049, 498.051, 498.053, 498.059,

1538

498.061, and 498.063, Florida Statutes, are repealed.

1539

     Section 36.  Section 509.512, Florida Statutes, is amended

1540

to read:

1541

     509.512  Timeshare plan developer and exchange company

1542

exemption.--Sections 509.501-509.511 do not apply to a developer

1543

of a timeshare plan or an exchange company approved by the

1544

Division of Florida Land Sales, Condominiums, Timeshares, and

1545

Mobile Homes pursuant to chapter 721, but only to the extent that

1546

the developer or exchange company engages in conduct regulated

1547

under chapter 721.

1548

     Section 37.  Subsection (2) of section 517.301, Florida

1549

Statutes, is amended to read:

1550

     517.301  Fraudulent transactions; falsification or

1551

concealment of facts.--

1552

     (2)  For purposes of ss. 517.311 and 517.312 and this

1553

section, the term "investment" means any commitment of money or

1554

property principally induced by a representation that an economic

1555

benefit may be derived from such commitment, except that the term

1556

"investment" does not include a commitment of money or property

1557

for:

1558

     (a)  The purchase of a business opportunity, business

1559

enterprise, or real property through a person licensed under

1560

chapter 475 or registered under former chapter 498; or

1561

     (b)  The purchase of tangible personal property through a

1562

person not engaged in telephone solicitation, where said property

1563

is offered and sold in accordance with the following conditions:

1564

     1.  There are no specific representations or guarantees made

1565

by the offeror or seller as to the economic benefit to be derived

1566

from the purchase;

1567

     2.  The tangible property is delivered to the purchaser

1568

within 30 days after sale, except that such 30-day period may be

1569

extended by the office if market conditions so warrant; and

1570

     3.  The seller has offered the purchaser a full refund

1571

policy in writing, exercisable by the purchaser within 10 days of

1572

the date of delivery of such tangible personal property, except

1573

that the amount of such refund may not in no event shall exceed

1574

the bid price in effect at the time the property is returned to

1575

the seller. If the applicable sellers' market is closed at the

1576

time the property is returned to the seller for a refund, the

1577

amount of such refund shall be based on the bid price for such

1578

property at the next opening of such market.

1579

     Section 38.  Subsection (4) of section 548.0065, Florida

1580

Statutes, is amended to read:

1581

     548.0065  Amateur matches; sanctioning and supervision;

1582

health and safety standards; compliance checks; continuation,

1583

suspension, and revocation of sanctioning approval.--

1584

     (4)  Any member of the commission or the executive director

1585

of the commission may suspend the approval of an amateur

1586

sanctioning organization for failure to supervise amateur matches

1587

or to enforce the approved health and safety standards required

1588

under this chapter, provided that the suspension complies with

1589

the procedures for summary suspensions in s. 120.60(6). At any

1590

amateur boxing, or kickboxing, or mixed martial arts contest, any

1591

member of the commission or a representative of the commission

1592

may immediately suspend one or more matches in an event whenever

1593

it appears that the match or matches violate the health and

1594

safety standards established by rule as required by this chapter.

1595

A law enforcement officer may assist any member of the commission

1596

or a representative of the commission to enforce an order to stop

1597

a contest if called upon to do so by a member of the commission

1598

or a representative of the commission.

1599

     Section 39.  Subsections (2), (3), and (4) of section

1600

548.008, Florida Statutes, are amended to read:

1601

     548.008  Prohibited competitions.--

1602

     (2) No amateur mixed martial arts match may be held in this

1603

state.

1604

     (2)(3) No professional match may be held in this state

1605

unless it meets the requirements for holding the match as

1606

provided in this chapter and the rules adopted by the commission.

1607

     (3)(4)(a) Any person participating in a match prohibited

1608

under this section, knowing the match to be prohibited, commits a

1609

misdemeanor of the second degree, punishable as provided in s.

1610

775.082 or s. 775.083.

1611

     (b)  Any person holding, promoting, or sponsoring a match

1612

prohibited under this section commits a felony of the third

1613

degree, punishable as provided in s. 775.082, s. 775.083, or s.

1614

775.084.

1615

     Section 40.  Subsection (1) of section 548.041, Florida

1616

Statutes, is amended to read:

1617

     548.041  Age, condition, and suspension of participants.--

1618

     (1) A person may shall not be licensed as a participant,

1619

and the license of a any participant shall be suspended or

1620

revoked, if such person:

1621

     (a)  Is under the age of 18;

1622

     (b)  Has participated in a match in this state which was not

1623

sanctioned by the commission or by a Native American commission

1624

properly constituted under federal law; or

1625

     (c)  Does not meet certain health and medical examination

1626

conditions as required by rule of the commission;.

1627

     (d) Has not competed in a minimum number of amateur boxing

1628

events as determined by commission rule prior to licensure; or

1629

     (e) Has not participated in a minimum number of amateur

1630

mixed martial arts events as determined by commission rule prior

1631

to licensure.

1632

     Section 41.  Subsection (1) of section 559.935, Florida

1633

Statutes, is amended to read:

1634

     559.935  Exemptions.--

1635

     (1)  This part does not apply to:

1636

     (a)  A bona fide employee of a seller of travel who is

1637

engaged solely in the business of her or his employer;

1638

     (b)  Any direct common carrier of passengers or property

1639

regulated by an agency of the Federal Government or employees of

1640

such carrier when engaged solely in the transportation business

1641

of the carrier as identified in the carrier's certificate;

1642

     (c)  An intrastate common carrier of passengers or property

1643

selling only transportation as defined in the applicable state or

1644

local registration or certification, or employees of such carrier

1645

when engaged solely in the transportation business of the

1646

carrier;

1647

     (d)  Hotels, motels, or other places of public accommodation

1648

selling public accommodations, or employees of such hotels,

1649

motels, or other places of public accommodation, when engaged

1650

solely in making arrangements for lodging, accommodations, or

1651

sightseeing tours within the state, or taking reservations for

1652

the traveler with times, dates, locations, and accommodations

1653

certain at the time the reservations are made, provided that

1654

hotels and motels registered with the Department of Business and

1655

Professional Regulation pursuant to chapter 509 are excluded from

1656

the provisions of this chapter;

1657

     (e)  Persons involved solely in the rental, leasing, or sale

1658

of residential property;

1659

     (f)  Persons involved solely in the rental, leasing, or sale

1660

of transportation vehicles;

1661

     (g)  Persons who make travel arrangements for themselves;

1662

for their employees or agents; for distributors, franchisees, or

1663

dealers of the persons' products or services; for entities which

1664

are financially related to the persons; or for the employees or

1665

agents of the distributor, franchisee, or dealer or financially

1666

related entity;

1667

     (h)  A developer of a timeshare plan or an exchange company

1668

approved by the Division of Florida Land Sales, Condominiums,

1669

Timeshares, and Mobile Homes pursuant to chapter 721, but only to

1670

the extent that the developer or exchange company engages in

1671

conduct regulated under chapter 721; or

1672

     (i)  Persons or entities engaged solely in offering diving

1673

services, including classes and sales or rentals of equipment,

1674

when engaged in making any prearranged travel-related or tourist-

1675

related services in conjunction with a primarily dive-related

1676

event.

1677

     Section 42.  Subsection (17) of section 718.103, Florida

1678

Statutes, is amended to read:

1679

     718.103  Definitions.--As used in this chapter, the term:

1680

     (17) "Division" means the Division of Florida Land Sales,

1681

Condominiums, Timeshares, and Mobile Homes of the Department of

1682

Business and Professional Regulation.

1683

     Section 43.  Paragraph (c) of subsection (4) of section

1684

718.105, Florida Statutes, is amended to read:

1685

     718.105  Recording of declaration.--

1686

     (4)

1687

     (c)  If the sum of money held by the clerk has not been paid

1688

to the developer or association as provided in paragraph (b)

1689

within by 3 years after the date the declaration was originally

1690

recorded, the clerk in his or her discretion may notify, in

1691

writing, the registered agent of the association that the sum is

1692

still available and the purpose for which it was deposited. If

1693

the association does not record the certificate within 90 days

1694

after the clerk has given the notice, the clerk may disburse the

1695

money to the developer. If the developer cannot be located, the

1696

clerk shall disburse the money to the Division of Florida Land

1697

Sales, Condominiums, Timeshares, and Mobile Homes for deposit in

1698

the Division of Florida Land Sales, Condominiums, Timeshares, and

1699

Mobile Homes Trust Fund.

1700

     Section 44.  Subsection (4) of section 718.1255, Florida

1701

Statutes, is amended to read:

1702

     718.1255  Alternative dispute resolution; voluntary

1703

mediation; mandatory nonbinding arbitration; legislative

1704

findings.--

1705

     (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF

1706

DISPUTES.--The Division of Florida Land Sales, Condominiums,

1707

Timeshares, and Mobile Homes of the Department of Business and

1708

Professional Regulation shall employ full-time attorneys to act

1709

as arbitrators to conduct the arbitration hearings provided by

1710

this chapter. The division may also certify attorneys who are not

1711

employed by the division to act as arbitrators to conduct the

1712

arbitration hearings provided by this section. No person may be

1713

employed by the department as a full-time arbitrator unless he or

1714

she is a member in good standing of The Florida Bar. The

1715

department shall adopt promulgate rules of procedure to govern

1716

such arbitration hearings including mediation incident thereto.

1717

The decision of an arbitrator shall be final; however, such a

1718

decision shall not be deemed final agency action. Nothing in this

1719

provision shall be construed to foreclose parties from proceeding

1720

in a trial de novo unless the parties have agreed that the

1721

arbitration is binding. If such judicial proceedings are

1722

initiated, the final decision of the arbitrator shall be

1723

admissible in evidence in the trial de novo.

1724

     (a)  Prior to the institution of court litigation, a party

1725

to a dispute shall petition the division for nonbinding

1726

arbitration. The petition must be accompanied by a filing fee in

1727

the amount of $50. Filing fees collected under this section must

1728

be used to defray the expenses of the alternative dispute

1729

resolution program.

1730

     (b)  The petition must recite, and have attached thereto,

1731

supporting proof that the petitioner gave the respondents:

1732

     1.  Advance written notice of the specific nature of the

1733

dispute;

1734

     2.  A demand for relief, and a reasonable opportunity to

1735

comply or to provide the relief; and

1736

     3.  Notice of the intention to file an arbitration petition

1737

or other legal action in the absence of a resolution of the

1738

dispute.

1739

1740

Failure to include the allegations or proof of compliance with

1741

these prerequisites requires dismissal of the petition without

1742

prejudice.

1743

     (c)  Upon receipt, the petition shall be promptly reviewed

1744

by the division to determine the existence of a dispute and

1745

compliance with the requirements of paragraphs (a) and (b). If

1746

emergency relief is required and is not available through

1747

arbitration, a motion to stay the arbitration may be filed. The

1748

motion must be accompanied by a verified petition alleging facts

1749

that, if proven, would support entry of a temporary injunction,

1750

and if an appropriate motion and supporting papers are filed, the

1751

division may abate the arbitration pending a court hearing and

1752

disposition of a motion for temporary injunction.

1753

     (d)  Upon determination by the division that a dispute

1754

exists and that the petition substantially meets the requirements

1755

of paragraphs (a) and (b) and any other applicable rules, a copy

1756

of the petition shall forthwith be served by the division upon

1757

all respondents.

1758

     (e) Either Before or after the filing of the respondents'

1759

answer to the petition, any party may request that the arbitrator

1760

refer the case to mediation under this section and any rules

1761

adopted by the division. Upon receipt of a request for mediation,

1762

the division shall promptly contact the parties to determine if

1763

there is agreement that mediation would be appropriate. If all

1764

parties agree, the dispute must be referred to mediation.

1765

Notwithstanding a lack of an agreement by all parties, the

1766

arbitrator may refer a dispute to mediation at any time.

1767

     (f)  Upon referral of a case to mediation, the parties must

1768

select a mutually acceptable mediator. To assist in the

1769

selection, the arbitrator shall provide the parties with a list

1770

of both volunteer and paid mediators that have been certified by

1771

the division under s. 718.501. If the parties are unable to agree

1772

on a mediator within the time allowed by the arbitrator, the

1773

arbitrator shall appoint a mediator from the list of certified

1774

mediators. If a case is referred to mediation, the parties shall

1775

attend a mediation conference, as scheduled by the parties and

1776

the mediator. If any party fails to attend a duly noticed

1777

mediation conference, without the permission or approval of the

1778

arbitrator or mediator, the arbitrator must impose sanctions

1779

against the party, including the striking of any pleadings filed,

1780

the entry of an order of dismissal or default if appropriate, and

1781

the award of costs and attorneys' fees incurred by the other

1782

parties. Unless otherwise agreed to by the parties or as provided

1783

by order of the arbitrator, a party is deemed to have appeared at

1784

a mediation conference by the physical presence of the party or

1785

its representative having full authority to settle without

1786

further consultation, provided that an association may comply by

1787

having one or more representatives present with full authority to

1788

negotiate a settlement and recommend that the board of

1789

administration ratify and approve such a settlement within 5 days

1790

from the date of the mediation conference. The parties shall

1791

share equally the expense of mediation, unless they agree

1792

otherwise.

1793

     (g)  The purpose of mediation as provided for by this

1794

section is to present the parties with an opportunity to resolve

1795

the underlying dispute in good faith, and with a minimum

1796

expenditure of time and resources.

1797

     (h)  Mediation proceedings must generally be conducted in

1798

accordance with the Florida Rules of Civil Procedure, and these

1799

proceedings are privileged and confidential to the same extent as

1800

court-ordered mediation. Persons who are not parties to the

1801

dispute are not allowed to attend the mediation conference

1802

without the consent of all parties, with the exception of counsel

1803

for the parties and corporate representatives designated to

1804

appear for a party. If the mediator declares an impasse after a

1805

mediation conference has been held, the arbitration proceeding

1806

terminates, unless all parties agree in writing to continue the

1807

arbitration proceeding, in which case the arbitrator's decision

1808

shall be either binding or nonbinding, as agreed upon by the

1809

parties; in the arbitration proceeding, the arbitrator shall not

1810

consider any evidence relating to the unsuccessful mediation

1811

except in a proceeding to impose sanctions for failure to appear

1812

at the mediation conference. If the parties do not agree to

1813

continue arbitration, the arbitrator shall enter an order of

1814

dismissal, and either party may institute a suit in a court of

1815

competent jurisdiction. The parties may seek to recover any costs

1816

and attorneys' fees incurred in connection with arbitration and

1817

mediation proceedings under this section as part of the costs and

1818

fees that may be recovered by the prevailing party in any

1819

subsequent litigation.

1820

     (i)  Arbitration shall be conducted according to rules

1821

adopted promulgated by the division. The filing of a petition for

1822

arbitration shall toll the applicable statute of limitations.

1823

     (j) At the request of any party to the arbitration, the

1824

such arbitrator shall issue subpoenas for the attendance of

1825

witnesses and the production of books, records, documents, and

1826

other evidence and any party on whose behalf a subpoena is issued

1827

may apply to the court for orders compelling such attendance and

1828

production. Subpoenas shall be served and shall be enforceable in

1829

the manner provided by the Florida Rules of Civil Procedure.

1830

Discovery may, in the discretion of the arbitrator, be permitted

1831

in the manner provided by the Florida Rules of Civil Procedure.

1832

Rules adopted by the division may authorize any reasonable

1833

sanctions except contempt for a violation of the arbitration

1834

procedural rules of the division or for the failure of a party to

1835

comply with a reasonable nonfinal order issued by an arbitrator

1836

which is not under judicial review.

1837

     (k)  The arbitration decision shall be presented to the

1838

parties in writing. An arbitration decision is final in those

1839

disputes in which the parties have agreed to be bound. An

1840

arbitration decision is also final if a complaint for a trial de

1841

novo is not filed in a court of competent jurisdiction in which

1842

the condominium is located within 30 days. The right to file for

1843

a trial de novo entitles the parties to file a complaint in the

1844

appropriate trial court for a judicial resolution of the dispute.

1845

The prevailing party in an arbitration proceeding shall be

1846

awarded the costs of the arbitration and reasonable attorney's

1847

fees in an amount determined by the arbitrator. Such an award

1848

shall include the costs and reasonable attorney's fees incurred

1849

in the arbitration proceeding as well as the costs and reasonable

1850

attorney's fees incurred in preparing for and attending any

1851

scheduled mediation.

1852

     (l)  The party who files a complaint for a trial de novo

1853

shall be assessed the other party's arbitration costs, court

1854

costs, and other reasonable costs, including attorney's fees,

1855

investigation expenses, and expenses for expert or other

1856

testimony or evidence incurred after the arbitration hearing if

1857

the judgment upon the trial de novo is not more favorable than

1858

the arbitration decision. If the judgment is more favorable, the

1859

party who filed a complaint for trial de novo shall be awarded

1860

reasonable court costs and attorney's fees.

1861

     (m)  Any party to an arbitration proceeding may enforce an

1862

arbitration award by filing a petition in a court of competent

1863

jurisdiction in which the condominium is located. A petition may

1864

not be granted unless the time for appeal by the filing of a

1865

complaint for trial de novo has expired. If a complaint for a

1866

trial de novo has been filed, a petition may not be granted with

1867

respect to an arbitration award that has been stayed. If the

1868

petition for enforcement is granted, the petitioner shall recover

1869

reasonable attorney's fees and costs incurred in enforcing the

1870

arbitration award. A mediation settlement may also be enforced

1871

through the county or circuit court, as applicable, and any costs

1872

and fees incurred in the enforcement of a settlement agreement

1873

reached at mediation must be awarded to the prevailing party in

1874

any enforcement action.

1875

     Section 45.  Section 718.501, Florida Statutes, is amended

1876

to read:

1877

     718.501 Powers and duties of Division of Florida Land

1878

Sales, Condominiums, Timeshares, and Mobile Homes.--

1879

     (1) The Division of Florida Land Sales, Condominiums,

1880

Timeshares, and Mobile Homes of the Department of Business and

1881

Professional Regulation, referred to as the "division" in this

1882

part, in addition to other powers and duties prescribed by

1883

chapter 498, has the power to enforce and ensure compliance with

1884

the provisions of this chapter and rules promulgated pursuant

1885

hereto relating to the development, construction, sale, lease,

1886

ownership, operation, and management of residential condominium

1887

units. In performing its duties, the division has the following

1888

powers and duties:

1889

     (a)1. The division may make necessary public or private

1890

investigations within or outside this state to determine whether

1891

any person has violated this chapter or any rule or order

1892

hereunder, to aid in the enforcement of this chapter, or to aid

1893

in the adoption of rules or forms hereunder.

1894

     2. The division may submit any official written report,

1895

worksheet, or other related paper, or a duly certified copy

1896

thereof, compiled, prepared, drafted, or otherwise made by and

1897

duly authenticated by a financial examiner or analyst to be

1898

admitted as competent evidence in any hearing in which the

1899

financial examiner or analyst is available for cross-examination

1900

and attests under oath that such documents were prepared as a

1901

result of an examination or inspection conducted pursuant to this

1902

chapter.

1903

     (b)  The division may require or permit any person to file a

1904

statement in writing, under oath or otherwise, as the division

1905

determines, as to the facts and circumstances concerning a matter

1906

to be investigated.

1907

     (c)  For the purpose of any investigation under this

1908

chapter, the division director or any officer or employee

1909

designated by the division director may administer oaths or

1910

affirmations, subpoena witnesses and compel their attendance,

1911

take evidence, and require the production of any matter which is

1912

relevant to the investigation, including the existence,

1913

description, nature, custody, condition, and location of any

1914

books, documents, or other tangible things and the identity and

1915

location of persons having knowledge of relevant facts or any

1916

other matter reasonably calculated to lead to the discovery of

1917

material evidence. Upon the failure by a person to obey a

1918

subpoena or to answer questions propounded by the investigating

1919

officer and upon reasonable notice to all persons affected

1920

thereby, the division may apply to the circuit court for an order

1921

compelling compliance.

1922

     (d)  Notwithstanding any remedies available to unit owners

1923

and associations, if the division has reasonable cause to believe

1924

that a violation of any provision of this chapter or related rule

1925

promulgated pursuant hereto has occurred, the division may

1926

institute enforcement proceedings in its own name against any

1927

developer, association, officer, or member of the board of

1928

administration, or its assignees or agents, as follows:

1929

     1.  The division may permit a person whose conduct or

1930

actions may be under investigation to waive formal proceedings

1931

and enter into a consent proceeding whereby orders, rules, or

1932

letters of censure or warning, whether formal or informal, may be

1933

entered against the person.

1934

     2.  The division may issue an order requiring the developer,

1935

association, officer, or member of the board of administration,

1936

or its assignees or agents, to cease and desist from the unlawful

1937

practice and take such affirmative action as in the judgment of

1938

the division will carry out the purposes of this chapter. Such

1939

affirmative action may include, but is not limited to, an order

1940

requiring a developer to pay moneys determined to be owed to a

1941

condominium association. If the division finds that a developer,

1942

association, officer, or member of the board of administration,

1943

or its assignees or agents, is violating or is about to violate

1944

any provision of this chapter, any rule adopted or order issued

1945

by the division, or any written agreement entered into with the

1946

division, and presents an immediate danger to the public

1947

requiring an immediate final order, it may issue an emergency

1948

cease and desist order reciting with particularity the facts

1949

underlying such findings. The emergency cease and desist order is

1950

effective for 90 days. If the division begins nonemergency cease

1951

and desist proceedings, the emergency cease and desist order

1952

remains effective until the conclusion of the proceedings under

1953

ss. 120.569 and 120.57.

1954

     3.  The division may bring an action in circuit court on

1955

behalf of a class of unit owners, lessees, or purchasers for

1956

declaratory relief, injunctive relief, or restitution.

1957

     4. The division may petition the court for the appointment

1958

of a receiver or conservator. If appointed, the receiver or

1959

conservator may take action to implement the court order to

1960

ensure the performance of the order and to remedy any breach

1961

thereof. In addition to all other means provided by law for the

1962

enforcement of an injunction or temporary restraining order, the

1963

circuit court may impound or sequester the property of a party

1964

defendant, including books, papers, documents, and related

1965

records, and allow the examination and use of the property by the

1966

division and a court-appointed receiver or conservator.

1967

     5. The division may apply to the circuit court for an order

1968

of restitution whereby the defendant in an action brought

1969

pursuant to subparagraph 4. shall be ordered to make restitution

1970

of those sums shown by the division to have been obtained by the

1971

defendant in violation of this chapter. Such restitution shall,

1972

at the option of the court, be payable to the conservator or

1973

receiver appointed pursuant to subparagraph 4. or directly to the

1974

persons whose funds or assets were obtained in violation of this

1975

chapter.

1976

     6.4. The division may impose a civil penalty against a

1977

developer or association, or its assignee or agent, for any

1978

violation of this chapter or a rule adopted under this chapter

1979

promulgated pursuant hereto. The division may impose a civil

1980

penalty individually against any officer or board member who

1981

willfully and knowingly violates a provision of this chapter,

1982

adopted a rule adopted pursuant hereto, or a final order of the

1983

division. The term "willfully and knowingly" means that the

1984

division informed the officer or board member that his or her

1985

action or intended action violates this chapter, a rule adopted

1986

under this chapter, or a final order of the division and that the

1987

officer or board member refused to comply with the requirements

1988

of this chapter, a rule adopted under this chapter, or a final

1989

order of the division. The division, prior to initiating formal

1990

agency action under chapter 120, shall afford the officer or

1991

board member an opportunity to voluntarily comply with this

1992

chapter, a rule adopted under this chapter, or a final order of

1993

the division. An officer or board member who complies within 10

1994

days is not subject to a civil penalty. A penalty may be imposed

1995

on the basis of each day of continuing violation, but in no event

1996

shall the penalty for any offense exceed $5,000. By January 1,

1997

1998, the division shall adopt, by rule, penalty guidelines

1998

applicable to possible violations or to categories of violations

1999

of this chapter or rules adopted by the division. The guidelines

2000

must specify a meaningful range of civil penalties for each such

2001

violation of the statute and rules and must be based upon the

2002

harm caused by the violation, the repetition of the violation,

2003

and upon such other factors deemed relevant by the division. For

2004

example, the division may consider whether the violations were

2005

committed by a developer or owner-controlled association, the

2006

size of the association, and other factors. The guidelines must

2007

designate the possible mitigating or aggravating circumstances

2008

that justify a departure from the range of penalties provided by

2009

the rules. It is the legislative intent that minor violations be

2010

distinguished from those which endanger the health, safety, or

2011

welfare of the condominium residents or other persons and that

2012

such guidelines provide reasonable and meaningful notice to the

2013

public of likely penalties that may be imposed for proscribed

2014

conduct. This subsection does not limit the ability of the

2015

division to informally dispose of administrative actions or

2016

complaints by stipulation, agreed settlement, or consent order.

2017

All amounts collected shall be deposited with the Chief Financial

2018

Officer to the credit of the Division of Florida Land Sales,

2019

Condominiums, Timeshares, and Mobile Homes Trust Fund. If a

2020

developer fails to pay the civil penalty, the division shall

2021

thereupon issue an order directing that such developer cease and

2022

desist from further operation until such time as the civil

2023

penalty is paid or may pursue enforcement of the penalty in a

2024

court of competent jurisdiction. If an association fails to pay

2025

the civil penalty, the division shall thereupon pursue

2026

enforcement in a court of competent jurisdiction, and the order

2027

imposing the civil penalty or the cease and desist order will not

2028

become effective until 20 days after the date of such order. Any

2029

action commenced by the division shall be brought in the county

2030

in which the division has its executive offices or in the county

2031

where the violation occurred.

2032

     7. In addition to subparagraph 6., the division may seek

2033

the imposition of a civil penalty through the circuit court for

2034

any violation for which the division may issue a notice to show

2035

cause under paragraph (q). The civil penalty shall be at least

2036

$500 but no more than $5,000 for each violation. The court may

2037

also award to the prevailing party court costs and reasonable

2038

attorney's fees and, if the division prevails, may also award

2039

reasonable costs of investigation.

2040

     (e) The division may is authorized to prepare and

2041

disseminate a prospectus and other information to assist

2042

prospective owners, purchasers, lessees, and developers of

2043

residential condominiums in assessing the rights, privileges, and

2044

duties pertaining thereto.

2045

     (f)  The division has authority to adopt rules pursuant to

2046

ss. 120.536(1) and 120.54 to implement and enforce the provisions

2047

of this chapter.

2048

     (g)  The division shall establish procedures for providing

2049

notice to an association when the division is considering the

2050

issuance of a declaratory statement with respect to the

2051

declaration of condominium or any related document governing in

2052

such condominium community.

2053

     (h)  The division shall furnish each association which pays

2054

the fees required by paragraph (2)(a) a copy of this act,

2055

subsequent changes to this act on an annual basis, an amended

2056

version of this act as it becomes available from the Secretary of

2057

State's office on a biennial basis, and the rules adopted

2058

promulgated pursuant thereto on an annual basis.

2059

     (i)  The division shall annually provide each association

2060

with a summary of declaratory statements and formal legal

2061

opinions relating to the operations of condominiums which were

2062

rendered by the division during the previous year.

2063

     (j)  The division shall provide training programs for

2064

condominium association board members and unit owners.

2065

     (k)  The division shall maintain a toll-free telephone

2066

number accessible to condominium unit owners.

2067

     (l)  The division shall develop a program to certify both

2068

volunteer and paid mediators to provide mediation of condominium

2069

disputes. The division shall provide, upon request, a list of

2070

such mediators to any association, unit owner, or other

2071

participant in arbitration proceedings under s. 718.1255

2072

requesting a copy of the list. The division shall include on the

2073

list of volunteer mediators only the names of persons who have

2074

received at least 20 hours of training in mediation techniques or

2075

who have mediated at least 20 disputes. In order to become

2076

initially certified by the division, paid mediators must be

2077

certified by the Supreme Court to mediate court cases in either

2078

county or circuit courts. However, the division may adopt, by

2079

rule, additional factors for the certification of paid mediators,

2080

which factors must be related to experience, education, or

2081

background. Any person initially certified as a paid mediator by

2082

the division must, in order to continue to be certified, comply

2083

with the factors or requirements imposed by rules adopted by the

2084

division.

2085

     (m)  When a complaint is made, the division shall conduct

2086

its inquiry with due regard to the interests of the affected

2087

parties. Within 30 days after receipt of a complaint, the

2088

division shall acknowledge the complaint in writing and notify

2089

the complainant whether the complaint is within the jurisdiction

2090

of the division and whether additional information is needed by

2091

the division from the complainant. The division shall conduct its

2092

investigation and shall, within 90 days after receipt of the

2093

original complaint or of timely requested additional information,

2094

take action upon the complaint. However, the failure to complete

2095

the investigation within 90 days does not prevent the division

2096

from continuing the investigation, accepting or considering

2097

evidence obtained or received after 90 days, or taking

2098

administrative action if reasonable cause exists to believe that

2099

a violation of this chapter or a rule of the division has

2100

occurred. If an investigation is not completed within the time

2101

limits established in this paragraph, the division shall, on a

2102

monthly basis, notify the complainant in writing of the status of

2103

the investigation. When reporting its action to the complainant,

2104

the division shall inform the complainant of any right to a

2105

hearing pursuant to ss. 120.569 and 120.57.

2106

     (n) The division may:

2107

     1. Contract with agencies in this state or other

2108

jurisdictions to perform investigative functions; or

2109

     2. Accept grants-in-aid from any source.

2110

     (o) The division shall cooperate with similar agencies in

2111

other jurisdictions to establish uniform filing procedures and

2112

forms, public offering statements, advertising standards, and

2113

rules and common administrative practices.

2114

     (p) The division shall consider notice to a developer to be

2115

complete when it is delivered to the developer's address

2116

currently on file with the division.

2117

     (q) In addition to its enforcement authority, the division

2118

may issue a notice to show cause, which shall provide for a

2119

hearing, upon written request, in accordance with chapter 120.

2120

     (2)(a)  Effective January 1, 1992, Each condominium

2121

association which operates more than two units shall pay to the

2122

division an annual fee in the amount of $4 for each residential

2123

unit in condominiums operated by the association. If the fee is

2124

not paid by March 1, then the association shall be assessed a

2125

penalty of 10 percent of the amount due, and the association will

2126

not have standing to maintain or defend any action in the courts

2127

of this state until the amount due, plus any penalty, is paid.

2128

     (b)  All fees shall be deposited in the Division of Florida

2129

Land Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund

2130

as provided by law.

2131

     Section 46.  Subsection (1) of section 718.5011, Florida

2132

Statutes, is amended to read:

2133

     718.5011  Ombudsman; appointment; administration.--

2134

     (1)  There is created an Office of the Condominium

2135

Ombudsman, to be located for administrative purposes within the

2136

Division of Florida Land Sales, Condominiums, Timeshares, and

2137

Mobile Homes. The functions of the office shall be funded by the

2138

Division of Florida Land Sales, Condominiums, Timeshares, and

2139

Mobile Homes Trust Fund. The ombudsman shall be a bureau chief of

2140

the division, and the office shall be set within the division in

2141

the same manner as any other bureau is staffed and funded.

2142

     Section 47.  Paragraph (a) of subsection (2) of section

2143

718.502, Florida Statutes, is amended to read:

2144

     718.502  Filing prior to sale or lease.--

2145

     (2)(a)  Prior to filing as required by subsection (1), and

2146

prior to acquiring an ownership, leasehold, or contractual

2147

interest in the land upon which the condominium is to be

2148

developed, a developer shall not offer a contract for purchase of

2149

a unit or lease of a unit for more than 5 years. However, the

2150

developer may accept deposits for reservations upon the approval

2151

of a fully executed escrow agreement and reservation agreement

2152

form properly filed with the Division of Florida Land Sales,

2153

Condominiums, Timeshares, and Mobile Homes. Each filing of a

2154

proposed reservation program shall be accompanied by a filing fee

2155

of $250. Reservations shall not be taken on a proposed

2156

condominium unless the developer has an ownership, leasehold, or

2157

contractual interest in the land upon which the condominium is to

2158

be developed. The division shall notify the developer within 20

2159

days of receipt of the reservation filing of any deficiencies

2160

contained therein. Such notification shall not preclude the

2161

determination of reservation filing deficiencies at a later date,

2162

nor shall it relieve the developer of any responsibility under

2163

the law. The escrow agreement and the reservation agreement form

2164

shall include a statement of the right of the prospective

2165

purchaser to an immediate unqualified refund of the reservation

2166

deposit moneys upon written request to the escrow agent by the

2167

prospective purchaser or the developer.

2168

     Section 48.  Section 718.504, Florida Statutes, is amended

2169

to read:

2170

     718.504  Prospectus or offering circular.--Every developer

2171

of a residential condominium which contains more than 20

2172

residential units, or which is part of a group of residential

2173

condominiums which will be served by property to be used in

2174

common by unit owners of more than 20 residential units, shall

2175

prepare a prospectus or offering circular and file it with the

2176

Division of Florida Land Sales, Condominiums, Timeshares, and

2177

Mobile Homes prior to entering into an enforceable contract of

2178

purchase and sale of any unit or lease of a unit for more than 5

2179

years and shall furnish a copy of the prospectus or offering

2180

circular to each buyer. In addition to the prospectus or offering

2181

circular, each buyer shall be furnished a separate page entitled

2182

"Frequently Asked Questions and Answers," which shall be in

2183

accordance with a format approved by the division and a copy of

2184

the financial information required by s. 718.111. This page

2185

shall, in readable language, inform prospective purchasers

2186

regarding their voting rights and unit use restrictions,

2187

including restrictions on the leasing of a unit; shall indicate

2188

whether and in what amount the unit owners or the association is

2189

obligated to pay rent or land use fees for recreational or other

2190

commonly used facilities; shall contain a statement identifying

2191

that amount of assessment which, pursuant to the budget, would be

2192

levied upon each unit type, exclusive of any special assessments,

2193

and which shall further identify the basis upon which assessments

2194

are levied, whether monthly, quarterly, or otherwise; shall state

2195

and identify any court cases in which the association is

2196

currently a party of record in which the association may face

2197

liability in excess of $100,000; and which shall further state

2198

whether membership in a recreational facilities association is

2199

mandatory, and if so, shall identify the fees currently charged

2200

per unit type. The division shall by rule require such other

2201

disclosure as in its judgment will assist prospective purchasers.

2202

The prospectus or offering circular may include more than one

2203

condominium, although not all such units are being offered for

2204

sale as of the date of the prospectus or offering circular. The

2205

prospectus or offering circular must contain the following

2206

information:

2207

     (1)  The front cover or the first page must contain only:

2208

     (a)  The name of the condominium.

2209

     (b)  The following statements in conspicuous type:

2210

     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT

2211

MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.

2212

     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

2213

NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,

2214

ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS.

2215

     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY

2216

STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS

2217

PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT

2218

REPRESENTATIONS.

2219

     (2)  Summary: The next page must contain all statements

2220

required to be in conspicuous type in the prospectus or offering

2221

circular.

2222

     (3)  A separate index of the contents and exhibits of the

2223

prospectus.

2224

     (4)  Beginning on the first page of the text (not including

2225

the summary and index), a description of the condominium,

2226

including, but not limited to, the following information:

2227

     (a)  Its name and location.

2228

     (b)  A description of the condominium property, including,

2229

without limitation:

2230

     1.  The number of buildings, the number of units in each

2231

building, the number of bathrooms and bedrooms in each unit, and

2232

the total number of units, if the condominium is not a phase

2233

condominium, or the maximum number of buildings that may be

2234

contained within the condominium, the minimum and maximum numbers

2235

of units in each building, the minimum and maximum numbers of

2236

bathrooms and bedrooms that may be contained in each unit, and

2237

the maximum number of units that may be contained within the

2238

condominium, if the condominium is a phase condominium.

2239

     2.  The page in the condominium documents where a copy of

2240

the plot plan and survey of the condominium is located.

2241

     3.  The estimated latest date of completion of constructing,

2242

finishing, and equipping. In lieu of a date, the description

2243

shall include a statement that the estimated date of completion

2244

of the condominium is in the purchase agreement and a reference

2245

to the article or paragraph containing that information.

2246

     (c)  The maximum number of units that will use facilities in

2247

common with the condominium. If the maximum number of units will

2248

vary, a description of the basis for variation and the minimum

2249

amount of dollars per unit to be spent for additional

2250

recreational facilities or enlargement of such facilities. If the

2251

addition or enlargement of facilities will result in a material

2252

increase of a unit owner's maintenance expense or rental expense,

2253

if any, the maximum increase and limitations thereon shall be

2254

stated.

2255

     (5)(a)  A statement in conspicuous type describing whether

2256

the condominium is created and being sold as fee simple interests

2257

or as leasehold interests. If the condominium is created or being

2258

sold on a leasehold, the location of the lease in the disclosure

2259

materials shall be stated.

2260

     (b)  If timeshare estates are or may be created with respect

2261

to any unit in the condominium, a statement in conspicuous type

2262

stating that timeshare estates are created and being sold in

2263

units in the condominium.

2264

     (6)  A description of the recreational and other commonly

2265

used facilities that will be used only by unit owners of the

2266

condominium, including, but not limited to, the following:

2267

     (a)  Each room and its intended purposes, location,

2268

approximate floor area, and capacity in numbers of people.

2269

     (b)  Each swimming pool, as to its general location,

2270

approximate size and depths, approximate deck size and capacity,

2271

and whether heated.

2272

     (c)  Additional facilities, as to the number of each

2273

facility, its approximate location, approximate size, and

2274

approximate capacity.

2275

     (d)  A general description of the items of personal property

2276

and the approximate number of each item of personal property that

2277

the developer is committing to furnish for each room or other

2278

facility or, in the alternative, a representation as to the

2279

minimum amount of expenditure that will be made to purchase the

2280

personal property for the facility.

2281

     (e)  The estimated date when each room or other facility

2282

will be available for use by the unit owners.

2283

     (f)1.  An identification of each room or other facility to

2284

be used by unit owners that will not be owned by the unit owners

2285

or the association;

2286

     2.  A reference to the location in the disclosure materials

2287

of the lease or other agreements providing for the use of those

2288

facilities; and

2289

     3.  A description of the terms of the lease or other

2290

agreements, including the length of the term; the rent payable,

2291

directly or indirectly, by each unit owner, and the total rent

2292

payable to the lessor, stated in monthly and annual amounts for

2293

the entire term of the lease; and a description of any option to

2294

purchase the property leased under any such lease, including the

2295

time the option may be exercised, the purchase price or how it is

2296

to be determined, the manner of payment, and whether the option

2297

may be exercised for a unit owner's share or only as to the

2298

entire leased property.

2299

     (g)  A statement as to whether the developer may provide

2300

additional facilities not described above; their general

2301

locations and types; improvements or changes that may be made;

2302

the approximate dollar amount to be expended; and the maximum

2303

additional common expense or cost to the individual unit owners

2304

that may be charged during the first annual period of operation

2305

of the modified or added facilities.

2306

2307

Descriptions as to locations, areas, capacities, numbers,

2308

volumes, or sizes may be stated as approximations or minimums.

2309

     (7)  A description of the recreational and other facilities

2310

that will be used in common with other condominiums, community

2311

associations, or planned developments which require the payment

2312

of the maintenance and expenses of such facilities, either

2313

directly or indirectly, by the unit owners. The description shall

2314

include, but not be limited to, the following:

2315

     (a)  Each building and facility committed to be built.

2316

     (b)  Facilities not committed to be built except under

2317

certain conditions, and a statement of those conditions or

2318

contingencies.

2319

     (c)  As to each facility committed to be built, or which

2320

will be committed to be built upon the happening of one of the

2321

conditions in paragraph (b), a statement of whether it will be

2322

owned by the unit owners having the use thereof or by an

2323

association or other entity which will be controlled by them, or

2324

others, and the location in the exhibits of the lease or other

2325

document providing for use of those facilities.

2326

     (d)  The year in which each facility will be available for

2327

use by the unit owners or, in the alternative, the maximum number

2328

of unit owners in the project at the time each of all of the

2329

facilities is committed to be completed.

2330

     (e)  A general description of the items of personal

2331

property, and the approximate number of each item of personal

2332

property, that the developer is committing to furnish for each

2333

room or other facility or, in the alternative, a representation

2334

as to the minimum amount of expenditure that will be made to

2335

purchase the personal property for the facility.

2336

     (f)  If there are leases, a description thereof, including

2337

the length of the term, the rent payable, and a description of

2338

any option to purchase.

2339

2340

Descriptions shall include location, areas, capacities, numbers,

2341

volumes, or sizes and may be stated as approximations or

2342

minimums.

2343

     (8)  Recreation lease or associated club membership:

2344

     (a)  If any recreational facilities or other facilities

2345

offered by the developer and available to, or to be used by, unit

2346

owners are to be leased or have club membership associated, the

2347

following statement in conspicuous type shall be included: THERE

2348

IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS

2349

CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS

2350

CONDOMINIUM. There shall be a reference to the location in the

2351

disclosure materials where the recreation lease or club

2352

membership is described in detail.

2353

     (b)  If it is mandatory that unit owners pay a fee, rent,

2354

dues, or other charges under a recreational facilities lease or

2355

club membership for the use of facilities, there shall be in

2356

conspicuous type the applicable statement:

2357

     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS

2358

MANDATORY FOR UNIT OWNERS; or

2359

     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,

2360

TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or

2361

     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS

2362

AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,

2363

RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE

2364

OTHER INSTRUMENTS PROVIDING THE FACILITIES); or

2365

     4.  A similar statement of the nature of the organization or

2366

the manner in which the use rights are created, and that unit

2367

owners are required to pay.

2368

2369

Immediately following the applicable statement, the location in

2370

the disclosure materials where the development is described in

2371

detail shall be stated.

2372

     (c)  If the developer, or any other person other than the

2373

unit owners and other persons having use rights in the

2374

facilities, reserves, or is entitled to receive, any rent, fee,

2375

or other payment for the use of the facilities, then there shall

2376

be the following statement in conspicuous type: THE UNIT OWNERS

2377

OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR

2378

RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately

2379

following this statement, the location in the disclosure

2380

materials where the rent or land use fees are described in detail

2381

shall be stated.

2382

     (d)  If, in any recreation format, whether leasehold, club,

2383

or other, any person other than the association has the right to

2384

a lien on the units to secure the payment of assessments, rent,

2385

or other exactions, there shall appear a statement in conspicuous

2386

type in substantially the following form:

2387

     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

2388

SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE

2389

RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE PAYMENTS

2390

MAY RESULT IN FORECLOSURE OF THE LIEN; or

2391

     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

2392

SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE

2393

FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL

2394

OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE

2395

THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.

2396

2397

Immediately following the applicable statement, the location in

2398

the disclosure materials where the lien or lien right is

2399

described in detail shall be stated.

2400

     (9)  If the developer or any other person has the right to

2401

increase or add to the recreational facilities at any time after

2402

the establishment of the condominium whose unit owners have use

2403

rights therein, without the consent of the unit owners or

2404

associations being required, there shall appear a statement in

2405

conspicuous type in substantially the following form:

2406

RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT

2407

OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this

2408

statement, the location in the disclosure materials where such

2409

reserved rights are described shall be stated.

2410

     (10)  A statement of whether the developer's plan includes a

2411

program of leasing units rather than selling them, or leasing

2412

units and selling them subject to such leases. If so, there shall

2413

be a description of the plan, including the number and

2414

identification of the units and the provisions and term of the

2415

proposed leases, and a statement in boldfaced type that: THE

2416

UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.

2417

     (11)  The arrangements for management of the association and

2418

maintenance and operation of the condominium property and of

2419

other property that will serve the unit owners of the condominium

2420

property, and a description of the management contract and all

2421

other contracts for these purposes having a term in excess of 1

2422

year, including the following:

2423

     (a)  The names of contracting parties.

2424

     (b)  The term of the contract.

2425

     (c)  The nature of the services included.

2426

     (d)  The compensation, stated on a monthly and annual basis,

2427

and provisions for increases in the compensation.

2428

     (e)  A reference to the volumes and pages of the condominium

2429

documents and of the exhibits containing copies of such

2430

contracts.

2431

2432

Copies of all described contracts shall be attached as exhibits.

2433

If there is a contract for the management of the condominium

2434

property, then a statement in conspicuous type in substantially

2435

the following form shall appear, identifying the proposed or

2436

existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR THE

2437

MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE CONTRACT

2438

MANAGER). Immediately following this statement, the location in

2439

the disclosure materials of the contract for management of the

2440

condominium property shall be stated.

2441

     (12)  If the developer or any other person or persons other

2442

than the unit owners has the right to retain control of the board

2443

of administration of the association for a period of time which

2444

can exceed 1 year after the closing of the sale of a majority of

2445

the units in that condominium to persons other than successors or

2446

alternate developers, then a statement in conspicuous type in

2447

substantially the following form shall be included: THE DEVELOPER

2448

(OR OTHER PERSON) HAS THE RIGHT TO RETAIN CONTROL OF THE

2449

ASSOCIATION AFTER A MAJORITY OF THE UNITS HAVE BEEN SOLD.

2450

Immediately following this statement, the location in the

2451

disclosure materials where this right to control is described in

2452

detail shall be stated.

2453

     (13)  If there are any restrictions upon the sale, transfer,

2454

conveyance, or leasing of a unit, then a statement in conspicuous

2455

type in substantially the following form shall be included: THE

2456

SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR CONTROLLED.

2457

Immediately following this statement, the location in the

2458

disclosure materials where the restriction, limitation, or

2459

control on the sale, lease, or transfer of units is described in

2460

detail shall be stated.

2461

     (14)  If the condominium is part of a phase project, the

2462

following information shall be stated:

2463

     (a)  A statement in conspicuous type in substantially the

2464

following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND

2465

UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following

2466

this statement, the location in the disclosure materials where

2467

the phasing is described shall be stated.

2468

     (b)  A summary of the provisions of the declaration which

2469

provide for the phasing.

2470

     (c)  A statement as to whether or not residential buildings

2471

and units which are added to the condominium may be substantially

2472

different from the residential buildings and units originally in

2473

the condominium. If the added residential buildings and units may

2474

be substantially different, there shall be a general description

2475

of the extent to which such added residential buildings and units

2476

may differ, and a statement in conspicuous type in substantially

2477

the following form shall be included: BUILDINGS AND UNITS WHICH

2478

ARE ADDED TO THE CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM

2479

THE OTHER BUILDINGS AND UNITS IN THE CONDOMINIUM. Immediately

2480

following this statement, the location in the disclosure

2481

materials where the extent to which added residential buildings

2482

and units may substantially differ is described shall be stated.

2483

     (d)  A statement of the maximum number of buildings

2484

containing units, the maximum and minimum numbers of units in

2485

each building, the maximum number of units, and the minimum and

2486

maximum square footage of the units that may be contained within

2487

each parcel of land which may be added to the condominium.

2488

     (15)  If a condominium created on or after July 1, 2000, is

2489

or may become part of a multicondominium, the following

2490

information must be provided:

2491

     (a)  A statement in conspicuous type in substantially the

2492

following form: THIS CONDOMINIUM IS (MAY BE) PART OF A

2493

MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL

2494

(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following

2495

this statement, the location in the prospectus or offering

2496

circular and its exhibits where the multicondominium aspects of

2497

the offering are described must be stated.

2498

     (b)  A summary of the provisions in the declaration,

2499

articles of incorporation, and bylaws which establish and provide

2500

for the operation of the multicondominium, including a statement

2501

as to whether unit owners in the condominium will have the right

2502

to use recreational or other facilities located or planned to be

2503

located in other condominiums operated by the same association,

2504

and the manner of sharing the common expenses related to such

2505

facilities.

2506

     (c)  A statement of the minimum and maximum number of

2507

condominiums, and the minimum and maximum number of units in each

2508

of those condominiums, which will or may be operated by the

2509

association, and the latest date by which the exact number will

2510

be finally determined.

2511

     (d)  A statement as to whether any of the condominiums in

2512

the multicondominium may include units intended to be used for

2513

nonresidential purposes and the purpose or purposes permitted for

2514

such use.

2515

     (e)  A general description of the location and approximate

2516

acreage of any land on which any additional condominiums to be

2517

operated by the association may be located.

2518

     (16)  If the condominium is created by conversion of

2519

existing improvements, the following information shall be stated:

2520

     (a)  The information required by s. 718.616.

2521

     (b)  A caveat that there are no express warranties unless

2522

they are stated in writing by the developer.

2523

     (17)  A summary of the restrictions, if any, to be imposed

2524

on units concerning the use of any of the condominium property,

2525

including statements as to whether there are restrictions upon

2526

children and pets, and reference to the volumes and pages of the

2527

condominium documents where such restrictions are found, or if

2528

such restrictions are contained elsewhere, then a copy of the

2529

documents containing the restrictions shall be attached as an

2530

exhibit.

2531

     (18)  If there is any land that is offered by the developer

2532

for use by the unit owners and that is neither owned by them nor

2533

leased to them, the association, or any entity controlled by unit

2534

owners and other persons having the use rights to such land, a

2535

statement shall be made as to how such land will serve the

2536

condominium. If any part of such land will serve the condominium,

2537

the statement shall describe the land and the nature and term of

2538

service, and the declaration or other instrument creating such

2539

servitude shall be included as an exhibit.

2540

     (19)  The manner in which utility and other services,

2541

including, but not limited to, sewage and waste disposal, water

2542

supply, and storm drainage, will be provided and the person or

2543

entity furnishing them.

2544

     (20)  An explanation of the manner in which the

2545

apportionment of common expenses and ownership of the common

2546

elements has been determined.

2547

     (21)  An estimated operating budget for the condominium and

2548

the association, and a schedule of the unit owner's expenses

2549

shall be attached as an exhibit and shall contain the following

2550

information:

2551

     (a)  The estimated monthly and annual expenses of the

2552

condominium and the association that are collected from unit

2553

owners by assessments.

2554

     (b)  The estimated monthly and annual expenses of each unit

2555

owner for a unit, other than common expenses paid by all unit

2556

owners, payable by the unit owner to persons or entities other

2557

than the association, as well as to the association, including

2558

fees assessed pursuant to s. 718.113(1) for maintenance of

2559

limited common elements where such costs are shared only by those

2560

entitled to use the limited common element, and the total

2561

estimated monthly and annual expense. There may be excluded from

2562

this estimate expenses which are not provided for or contemplated

2563

by the condominium documents, including, but not limited to, the

2564

costs of private telephone; maintenance of the interior of

2565

condominium units, which is not the obligation of the

2566

association; maid or janitorial services privately contracted for

2567

by the unit owners; utility bills billed directly to each unit

2568

owner for utility services to his or her unit; insurance premiums

2569

other than those incurred for policies obtained by the

2570

condominium; and similar personal expenses of the unit owner. A

2571

unit owner's estimated payments for assessments shall also be

2572

stated in the estimated amounts for the times when they will be

2573

due.

2574

     (c)  The estimated items of expenses of the condominium and

2575

the association, except as excluded under paragraph (b),

2576

including, but not limited to, the following items, which shall

2577

be stated either as an association expense collectible by

2578

assessments or as unit owners' expenses payable to persons other

2579

than the association:

2580

     1.  Expenses for the association and condominium:

2581

     a.  Administration of the association.

2582

     b.  Management fees.

2583

     c.  Maintenance.

2584

     d.  Rent for recreational and other commonly used

2585

facilities.

2586

     e.  Taxes upon association property.

2587

     f.  Taxes upon leased areas.

2588

     g.  Insurance.

2589

     h.  Security provisions.

2590

     i.  Other expenses.

2591

     j.  Operating capital.

2592

     k.  Reserves.

2593

     l.  Fees payable to the division.

2594

     2.  Expenses for a unit owner:

2595

     a.  Rent for the unit, if subject to a lease.

2596

     b.  Rent payable by the unit owner directly to the lessor or

2597

agent under any recreational lease or lease for the use of

2598

commonly used facilities, which use and payment is a mandatory

2599

condition of ownership and is not included in the common expense

2600

or assessments for common maintenance paid by the unit owners to

2601

the association.

2602

     (d)  The following statement in conspicuous type: THE BUDGET

2603

CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN

2604

ACCORDANCE WITH THE CONDOMINIUM ACT AND IS A GOOD FAITH ESTIMATE

2605

ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON

2606

FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.

2607

ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH

2608

CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN THE

2609

OFFERING.

2610

     (e)  Each budget for an association prepared by a developer

2611

consistent with this subsection shall be prepared in good faith

2612

and shall reflect accurate estimated amounts for the required

2613

items in paragraph (c) at the time of the filing of the offering

2614

circular with the division, and subsequent increased amounts of

2615

any item included in the association's estimated budget that are

2616

beyond the control of the developer shall not be considered an

2617

amendment that would give rise to rescission rights set forth in

2618

s. 718.503(1)(a) or (b), nor shall such increases modify, void,

2619

or otherwise affect any guarantee of the developer contained in

2620

the offering circular or any purchase contract. It is the intent

2621

of this paragraph to clarify existing law.

2622

     (f)  The estimated amounts shall be stated for a period of

2623

at least 12 months and may distinguish between the period prior

2624

to the time unit owners other than the developer elect a majority

2625

of the board of administration and the period after that date.

2626

     (22)  A schedule of estimated closing expenses to be paid by

2627

a buyer or lessee of a unit and a statement of whether title

2628

opinion or title insurance policy is available to the buyer and,

2629

if so, at whose expense.

2630

     (23)  The identity of the developer and the chief operating

2631

officer or principal directing the creation and sale of the

2632

condominium and a statement of its and his or her experience in

2633

this field.

2634

     (24)  Copies of the following, to the extent they are

2635

applicable, shall be included as exhibits:

2636

     (a)  The declaration of condominium, or the proposed

2637

declaration if the declaration has not been recorded.

2638

     (b)  The articles of incorporation creating the association.

2639

     (c)  The bylaws of the association.

2640

     (d)  The ground lease or other underlying lease of the

2641

condominium.

2642

     (e)  The management agreement and all maintenance and other

2643

contracts for management of the association and operation of the

2644

condominium and facilities used by the unit owners having a

2645

service term in excess of 1 year.

2646

     (f)  The estimated operating budget for the condominium and

2647

the required schedule of unit owners' expenses.

2648

     (g)  A copy of the floor plan of the unit and the plot plan

2649

showing the location of the residential buildings and the

2650

recreation and other common areas.

2651

     (h)  The lease of recreational and other facilities that

2652

will be used only by unit owners of the subject condominium.

2653

     (i)  The lease of facilities used by owners and others.

2654

     (j)  The form of unit lease, if the offer is of a leasehold.

2655

     (k)  A declaration of servitude of properties serving the

2656

condominium but not owned by unit owners or leased to them or the

2657

association.

2658

     (l)  The statement of condition of the existing building or

2659

buildings, if the offering is of units in an operation being

2660

converted to condominium ownership.

2661

     (m)  The statement of inspection for termite damage and

2662

treatment of the existing improvements, if the condominium is a

2663

conversion.

2664

     (n)  The form of agreement for sale or lease of units.

2665

     (o)  A copy of the agreement for escrow of payments made to

2666

the developer prior to closing.

2667

     (p)  A copy of the documents containing any restrictions on

2668

use of the property required by subsection (17).

2669

     (25)  Any prospectus or offering circular complying, prior

2670

to the effective date of this act, with the provisions of former

2671

ss. 711.69 and 711.802 may continue to be used without amendment

2672

or may be amended to comply with the provisions of this chapter.

2673

     (26)  A brief narrative description of the location and

2674

effect of all existing and intended easements located or to be

2675

located on the condominium property other than those described in

2676

the declaration.

2677

     (27)  If the developer is required by state or local

2678

authorities to obtain acceptance or approval of any dock or

2679

marina facilities intended to serve the condominium, a copy of

2680

any such acceptance or approval acquired by the time of filing

2681

with the division under s. 718.502(1) or a statement that such

2682

acceptance or approval has not been acquired or received.

2683

     (28)  Evidence demonstrating that the developer has an

2684

ownership, leasehold, or contractual interest in the land upon

2685

which the condominium is to be developed.

2686

     Section 49.  Section 718.508, Florida Statutes, is amended

2687

to read:

2688

     718.508  Regulation by Division of Hotels and

2689

Restaurants.--In addition to the authority, regulation, or

2690

control exercised by the Division of Florida Land Sales,

2691

Condominiums, Timeshares, and Mobile Homes pursuant to this act

2692

with respect to condominiums, buildings included in a condominium

2693

property are shall be subject to the authority, regulation, or

2694

control of the Division of Hotels and Restaurants of the

2695

Department of Business and Professional Regulation, to the extent

2696

provided for in chapter 399.

2697

     Section 50.  Section 718.509, Florida Statutes, is amended,

2698

to read:

2699

     718.509 Division of Florida Land Sales, Condominiums,

2700

Timeshares, and Mobile Homes Trust Fund.--

2701

     (1) There is created within the State Treasury the Division

2702

of Florida Condominiums, Timeshares, and Mobile Homes Trust Fund

2703

to be used for the administration and operation of this chapter

2704

and chapters 718, 719, 721, and 723 by the division.

2705

     (2) All moneys collected by the division from fees, fines,

2706

or penalties or from costs awarded to the division by a court or

2707

administrative final order shall be paid into the Division of

2708

Florida Condominiums, Timeshares, and Mobile Homes Trust Fund.

2709

The Legislature shall appropriate funds from the trust fund

2710

sufficient to carry out the provisions of this chapter and the

2711

provisions of law with respect to each category of business

2712

covered by the trust fund. The division shall maintain separate

2713

revenue accounts in the trust fund for each business regulated by

2714

the division. The division shall provide for the proportionate

2715

allocation among the accounts of expenses incurred by the

2716

division in the performance of its duties with respect to each

2717

business. As part of its normal budgetary process, the division

2718

shall prepare an annual report of revenues and allocated expenses

2719

related to the operation of each business which may be used to

2720

determine fees charged by the division. This subsection shall

2721

operate pursuant to s. 215.20. All funds collected by the

2722

division and any amount paid for a fee or penalty under this

2723

chapter shall be deposited in the State Treasury to the credit of

2724

the Division of Florida Land Sales, Condominiums, and Mobile

2725

Homes Trust Fund created by s. 498.019.

2726

     Section 51.  Paragraph (a) of subsection (2) of section

2727

718.608, Florida Statutes, is amended to read:

2728

     718.608  Notice of intended conversion; time of delivery;

2729

content.--

2730

     (2)(a)  Each notice of intended conversion shall be dated

2731

and in writing. The notice shall contain the following statement,

2732

with the phrases of the following statement which appear in upper

2733

case printed in conspicuous type:

2734

2735

     These apartments are being converted to condominium by  

2736

(name of developer)  , the developer.

2737

     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF

2738

YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL

2739

AGREEMENT AS FOLLOWS:

2740

     a.  If you have continuously been a resident of these

2741

apartments during the last 180 days and your rental agreement

2742

expires during the next 270 days, you may extend your rental

2743

agreement for up to 270 days after the date of this notice.

2744

     b.  If you have not been a continuous resident of these

2745

apartments for the last 180 days and your rental agreement

2746

expires during the next 180 days, you may extend your rental

2747

agreement for up to 180 days after the date of this notice.

2748

     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU

2749

MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE

2750

DATE OF THIS NOTICE.

2751

     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,

2752

you may extend your rental agreement for up to 45 days after the

2753

date of this notice while you decide whether to extend your

2754

rental agreement as explained above. To do so, you must notify

2755

the developer in writing. You will then have the full 45 days to

2756

decide whether to extend your rental agreement as explained

2757

above.

2758

     3.  During the extension of your rental agreement you will

2759

be charged the same rent that you are now paying.

2760

     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION

2761

OF THE RENTAL AGREEMENT AS FOLLOWS:

2762

     a.  If your rental agreement began or was extended or

2763

renewed after May 1, 1980, and your rental agreement, including

2764

extensions and renewals, has an unexpired term of 180 days or

2765

less, you may cancel your rental agreement upon 30 days' written

2766

notice and move. Also, upon 30 days' written notice, you may

2767

cancel any extension of the rental agreement.

2768

     b.  If your rental agreement was not begun or was not

2769

extended or renewed after May 1, 1980, you may not cancel the

2770

rental agreement without the consent of the developer. If your

2771

rental agreement, including extensions and renewals, has an

2772

unexpired term of 180 days or less, you may, however, upon 30

2773

days' written notice cancel any extension of the rental

2774

agreement.

2775

     5.  All notices must be given in writing and sent by mail,

2776

return receipt requested, or delivered in person to the developer

2777

at this address:   (name and address of developer)  .

2778

     6.  If you have continuously been a resident of these

2779

apartments during the last 180 days:

2780

     a.  You have the right to purchase your apartment and will

2781

have 45 days to decide whether to purchase. If you do not buy the

2782

unit at that price and the unit is later offered at a lower

2783

price, you will have the opportunity to buy the unit at the lower

2784

price. However, in all events your right to purchase the unit

2785

ends when the rental agreement or any extension of the rental

2786

agreement ends or when you waive this right in writing.

2787

     b.  Within 90 days you will be provided purchase information

2788

relating to your apartment, including the price of your unit and

2789

the condition of the building. If you do not receive this

2790

information within 90 days, your rental agreement and any

2791

extension will be extended 1 day for each day over 90 days until

2792

you are given the purchase information. If you do not want this

2793

rental agreement extension, you must notify the developer in

2794

writing.

2795

     7.  If you have any questions regarding this conversion or

2796

the Condominium Act, you may contact the developer or the state

2797

agency which regulates condominiums: The Division of Florida Land

2798

Sales, Condominiums, Timeshares, and Mobile Homes, (Tallahassee

2799

address and telephone number of division)  .

2800

     Section 52.  Subsection (17) of section 719.103, Florida

2801

Statutes, is amended to read:

2802

     719.103  Definitions.--As used in this chapter:

2803

     (17) "Division" means the Division of Florida Land Sales,

2804

Condominiums, Timeshares, and Mobile Homes of the Department of

2805

Business and Professional Regulation.

2806

     Section 53.  Section 719.1255, Florida Statutes, is amended

2807

to read:

2808

     719.1255  Alternative resolution of disputes.--The Division

2809

of Florida Land Sales, Condominiums, Timeshares, and Mobile Homes

2810

of the Department of Business and Professional Regulation shall

2811

provide for alternative dispute resolution in accordance with s.

2812

718.1255.

2813

     Section 54.  Section 719.501, Florida Statutes, is amended

2814

to read:

2815

     719.501 Powers and duties of Division of Florida Land

2816

Sales, Condominiums, Timeshares, and Mobile Homes.--

2817

     (1) The Division of Florida Land Sales, Condominiums,

2818

Timeshares, and Mobile Homes of the Department of Business and

2819

Professional Regulation, referred to as the "division" in this

2820

part, in addition to other powers and duties prescribed by

2821

chapter 718 498, has the power to enforce and ensure compliance

2822

with the provisions of this chapter and adopted rules promulgated

2823

pursuant hereto relating to the development, construction, sale,

2824

lease, ownership, operation, and management of residential

2825

cooperative units. In performing its duties, the division shall

2826

have the following powers and duties:

2827

     (a)  The division may make necessary public or private

2828

investigations within or outside this state to determine whether

2829

any person has violated this chapter or any rule or order

2830

hereunder, to aid in the enforcement of this chapter, or to aid

2831

in the adoption of rules or forms hereunder.

2832

     (b)  The division may require or permit any person to file a

2833

statement in writing, under oath or otherwise, as the division

2834

determines, as to the facts and circumstances concerning a matter

2835

to be investigated.

2836

     (c)  For the purpose of any investigation under this

2837

chapter, the division director or any officer or employee

2838

designated by the division director may administer oaths or

2839

affirmations, subpoena witnesses and compel their attendance,

2840

take evidence, and require the production of any matter which is

2841

relevant to the investigation, including the existence,

2842

description, nature, custody, condition, and location of any

2843

books, documents, or other tangible things and the identity and

2844

location of persons having knowledge of relevant facts or any

2845

other matter reasonably calculated to lead to the discovery of

2846

material evidence. Upon failure by a person to obey a subpoena or

2847

to answer questions propounded by the investigating officer and

2848

upon reasonable notice to all persons affected thereby, the

2849

division may apply to the circuit court for an order compelling

2850

compliance.

2851

     (d)  Notwithstanding any remedies available to unit owners

2852

and associations, if the division has reasonable cause to believe

2853

that a violation of any provision of this chapter or related rule

2854

promulgated pursuant hereto has occurred, the division may

2855

institute enforcement proceedings in its own name against a

2856

developer, association, officer, or member of the board, or its

2857

assignees or agents, as follows:

2858

     1.  The division may permit a person whose conduct or

2859

actions may be under investigation to waive formal proceedings

2860

and enter into a consent proceeding whereby orders, rules, or

2861

letters of censure or warning, whether formal or informal, may be

2862

entered against the person.

2863

     2.  The division may issue an order requiring the developer,

2864

association, officer, or member of the board, or its assignees or

2865

agents, to cease and desist from the unlawful practice and take

2866

such affirmative action as in the judgment of the division will

2867

carry out the purposes of this chapter. Such affirmative action

2868

may include, but is not limited to, an order requiring a

2869

developer to pay moneys determined to be owed to a condominium

2870

association.

2871

     3.  The division may bring an action in circuit court on

2872

behalf of a class of unit owners, lessees, or purchasers for

2873

declaratory relief, injunctive relief, or restitution.

2874

     4.  The division may impose a civil penalty against a

2875

developer or association, or its assignees or agents, for any

2876

violation of this chapter or related a rule promulgated pursuant

2877

hereto. The division may impose a civil penalty individually

2878

against any officer or board member who willfully and knowingly

2879

violates a provision of this chapter, a rule adopted pursuant to

2880

this chapter, or a final order of the division. The term

2881

"willfully and knowingly" means that the division informed the

2882

officer or board member that his or her action or intended action

2883

violates this chapter, a rule adopted under this chapter, or a

2884

final order of the division, and that the officer or board member

2885

refused to comply with the requirements of this chapter, a rule

2886

adopted under this chapter, or a final order of the division. The

2887

division, prior to initiating formal agency action under chapter

2888

120, shall afford the officer or board member an opportunity to

2889

voluntarily comply with this chapter, a rule adopted under this

2890

chapter, or a final order of the division. An officer or board

2891

member who complies within 10 days is not subject to a civil

2892

penalty. A penalty may be imposed on the basis of each day of

2893

continuing violation, but in no event shall the penalty for any

2894

offense exceed $5,000. By January 1, 1998, the division shall

2895

adopt, by rule, penalty guidelines applicable to possible

2896

violations or to categories of violations of this chapter or

2897

rules adopted by the division. The guidelines must specify a

2898

meaningful range of civil penalties for each such violation of

2899

the statute and rules and must be based upon the harm caused by

2900

the violation, the repetition of the violation, and upon such

2901

other factors deemed relevant by the division. For example, the

2902

division may consider whether the violations were committed by a

2903

developer or owner-controlled association, the size of the

2904

association, and other factors. The guidelines must designate the

2905

possible mitigating or aggravating circumstances that justify a

2906

departure from the range of penalties provided by the rules. It

2907

is the legislative intent that minor violations be distinguished

2908

from those which endanger the health, safety, or welfare of the

2909

cooperative residents or other persons and that such guidelines

2910

provide reasonable and meaningful notice to the public of likely

2911

penalties that may be imposed for proscribed conduct. This

2912

subsection does not limit the ability of the division to

2913

informally dispose of administrative actions or complaints by

2914

stipulation, agreed settlement, or consent order. All amounts

2915

collected shall be deposited with the Chief Financial Officer to

2916

the credit of the Division of Florida Land Sales, Condominiums,

2917

Timeshares, and Mobile Homes Trust Fund. If a developer fails to

2918

pay the civil penalty, the division shall thereupon issue an

2919

order directing that such developer cease and desist from further

2920

operation until such time as the civil penalty is paid or may

2921

pursue enforcement of the penalty in a court of competent

2922

jurisdiction. If an association fails to pay the civil penalty,

2923

the division shall thereupon pursue enforcement in a court of

2924

competent jurisdiction, and the order imposing the civil penalty

2925

or the cease and desist order shall not become effective until 20

2926

days after the date of such order. Any action commenced by the

2927

division shall be brought in the county in which the division has

2928

its executive offices or in the county where the violation

2929

occurred.

2930

     (e) The division may is authorized to prepare and

2931

disseminate a prospectus and other information to assist

2932

prospective owners, purchasers, lessees, and developers of

2933

residential cooperatives in assessing the rights, privileges, and

2934

duties pertaining thereto.

2935

     (f)  The division has authority to adopt rules pursuant to

2936

ss. 120.536(1) and 120.54 to implement and enforce the provisions

2937

of this chapter.

2938

     (g)  The division shall establish procedures for providing

2939

notice to an association when the division is considering the

2940

issuance of a declaratory statement with respect to the

2941

cooperative documents governing such cooperative community.

2942

     (h)  The division shall furnish each association which pays

2943

the fees required by paragraph (2)(a) a copy of this act,

2944

subsequent changes to this act on an annual basis, an amended

2945

version of this act as it becomes available from the Secretary of

2946

State's office on a biennial basis, and the rules adopted

2947

promulgated pursuant thereto on an annual basis.

2948

     (i)  The division shall annually provide each association

2949

with a summary of declaratory statements and formal legal

2950

opinions relating to the operations of cooperatives which were

2951

rendered by the division during the previous year.

2952

     (j)  The division shall adopt uniform accounting principles,

2953

policies, and standards to be used by all associations in the

2954

preparation and presentation of all financial statements required

2955

by this chapter. The principles, policies, and standards shall

2956

take into consideration the size of the association and the total

2957

revenue collected by the association.

2958

     (k)  The division shall provide training programs for

2959

cooperative association board members and unit owners.

2960

     (l)  The division shall maintain a toll-free telephone

2961

number accessible to cooperative unit owners.

2962

     (m)  When a complaint is made to the division, the division

2963

shall conduct its inquiry with reasonable dispatch and with due

2964

regard to the interests of the affected parties. Within 30 days

2965

after receipt of a complaint, the division shall acknowledge the

2966

complaint in writing and notify the complainant whether the

2967

complaint is within the jurisdiction of the division and whether

2968

additional information is needed by the division from the

2969

complainant. The division shall conduct its investigation and

2970

shall, within 90 days after receipt of the original complaint or

2971

timely requested additional information, take action upon the

2972

complaint. However, the failure to complete the investigation

2973

within 90 days does not prevent the division from continuing the

2974

investigation, accepting or considering evidence obtained or

2975

received after 90 days, or taking administrative action if

2976

reasonable cause exists to believe that a violation of this

2977

chapter or a rule of the division has occurred. If an

2978

investigation is not completed within the time limits established

2979

in this paragraph, the division shall, on a monthly basis, notify

2980

the complainant in writing of the status of the investigation.

2981

When reporting its action to the complainant, the division shall

2982

inform the complainant of any right to a hearing pursuant to ss.

2983

120.569 and 120.57.

2984

     (n)  The division shall develop a program to certify both

2985

volunteer and paid mediators to provide mediation of cooperative

2986

disputes. The division shall provide, upon request, a list of

2987

such mediators to any association, unit owner, or other

2988

participant in arbitration proceedings under s. 718.1255

2989

requesting a copy of the list. The division shall include on the

2990

list of voluntary mediators only persons who have received at

2991

least 20 hours of training in mediation techniques or have

2992

mediated at least 20 disputes. In order to become initially

2993

certified by the division, paid mediators must be certified by

2994

the Supreme Court to mediate court cases in either county or

2995

circuit courts. However, the division may adopt, by rule,

2996

additional factors for the certification of paid mediators, which

2997

factors must be related to experience, education, or background.

2998

Any person initially certified as a paid mediator by the division

2999

must, in order to continue to be certified, comply with the

3000

factors or requirements imposed by rules adopted by the division.

3001

     (2)(a)  Each cooperative association shall pay to the

3002

division, on or before January 1 of each year, an annual fee in

3003

the amount of $4 for each residential unit in cooperatives

3004

operated by the association. If the fee is not paid by March 1,

3005

then the association shall be assessed a penalty of 10 percent of

3006

the amount due, and the association shall not have the standing

3007

to maintain or defend any action in the courts of this state

3008

until the amount due is paid.

3009

     (b)  All fees shall be deposited in the Division of Florida

3010

Land Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund

3011

as provided by law.

3012

     Section 55.  Paragraph (a) of subsection (2) of section

3013

719.502, Florida Statutes, is amended to read:

3014

     719.502  Filing prior to sale or lease.--

3015

     (2)(a)  Prior to filing as required by subsection (1), and

3016

prior to acquiring an ownership, leasehold, or contractual

3017

interest in the land upon which the cooperative is to be

3018

developed, a developer shall not offer a contract for purchase or

3019

lease of a unit for more than 5 years. However, the developer may

3020

accept deposits for reservations upon the approval of a fully

3021

executed escrow agreement and reservation agreement form properly

3022

filed with the Division of Florida Land Sales, Condominiums,

3023

Timeshares, and Mobile Homes. Each filing of a proposed

3024

reservation program shall be accompanied by a filing fee of $250.

3025

Reservations shall not be taken on a proposed cooperative unless

3026

the developer has an ownership, leasehold, or contractual

3027

interest in the land upon which the cooperative is to be

3028

developed. The division shall notify the developer within 20 days

3029

of receipt of the reservation filing of any deficiencies

3030

contained therein. Such notification shall not preclude the

3031

determination of reservation filing deficiencies at a later date,

3032

nor shall it relieve the developer of any responsibility under

3033

the law. The escrow agreement and the reservation agreement form

3034

shall include a statement of the right of the prospective

3035

purchaser to an immediate unqualified refund of the reservation

3036

deposit moneys upon written request to the escrow agent by the

3037

prospective purchaser or the developer.

3038

     Section 56.  Section 719.504, Florida Statutes, is amended

3039

to read:

3040

     719.504  Prospectus or offering circular.--Every developer

3041

of a residential cooperative which contains more than 20

3042

residential units, or which is part of a group of residential

3043

cooperatives which will be served by property to be used in

3044

common by unit owners of more than 20 residential units, shall

3045

prepare a prospectus or offering circular and file it with the

3046

Division of Florida Land Sales, Condominiums, Timeshares, and

3047

Mobile Homes prior to entering into an enforceable contract of

3048

purchase and sale of any unit or lease of a unit for more than 5

3049

years and shall furnish a copy of the prospectus or offering

3050

circular to each buyer. In addition to the prospectus or offering

3051

circular, each buyer shall be furnished a separate page entitled

3052

"Frequently Asked Questions and Answers," which must be in

3053

accordance with a format approved by the division. This page

3054

must, in readable language: inform prospective purchasers

3055

regarding their voting rights and unit use restrictions,

3056

including restrictions on the leasing of a unit; indicate whether

3057

and in what amount the unit owners or the association is

3058

obligated to pay rent or land use fees for recreational or other

3059

commonly used facilities; contain a statement identifying that

3060

amount of assessment which, pursuant to the budget, would be

3061

levied upon each unit type, exclusive of any special assessments,

3062

and which identifies the basis upon which assessments are levied,

3063

whether monthly, quarterly, or otherwise; state and identify any

3064

court cases in which the association is currently a party of

3065

record in which the association may face liability in excess of

3066

$100,000; and state whether membership in a recreational

3067

facilities association is mandatory and, if so, identify the fees

3068

currently charged per unit type. The division shall by rule

3069

require such other disclosure as in its judgment will assist

3070

prospective purchasers. The prospectus or offering circular may

3071

include more than one cooperative, although not all such units

3072

are being offered for sale as of the date of the prospectus or

3073

offering circular. The prospectus or offering circular must

3074

contain the following information:

3075

     (1)  The front cover or the first page must contain only:

3076

     (a)  The name of the cooperative.

3077

     (b)  The following statements in conspicuous type:

3078

     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT

3079

MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT.

3080

     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

3081

NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,

3082

ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS.

3083

     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY

3084

STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS

3085

PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT

3086

REPRESENTATIONS.

3087

     (2)  Summary: The next page must contain all statements

3088

required to be in conspicuous type in the prospectus or offering

3089

circular.

3090

     (3)  A separate index of the contents and exhibits of the

3091

prospectus.

3092

     (4)  Beginning on the first page of the text (not including

3093

the summary and index), a description of the cooperative,

3094

including, but not limited to, the following information:

3095

     (a)  Its name and location.

3096

     (b)  A description of the cooperative property, including,

3097

without limitation:

3098

     1.  The number of buildings, the number of units in each

3099

building, the number of bathrooms and bedrooms in each unit, and

3100

the total number of units, if the cooperative is not a phase

3101

cooperative; or, if the cooperative is a phase cooperative, the

3102

maximum number of buildings that may be contained within the

3103

cooperative, the minimum and maximum number of units in each

3104

building, the minimum and maximum number of bathrooms and

3105

bedrooms that may be contained in each unit, and the maximum

3106

number of units that may be contained within the cooperative.

3107

     2.  The page in the cooperative documents where a copy of

3108

the survey and plot plan of the cooperative is located.

3109

     3.  The estimated latest date of completion of constructing,

3110

finishing, and equipping. In lieu of a date, a statement that the

3111

estimated date of completion of the cooperative is in the

3112

purchase agreement and a reference to the article or paragraph

3113

containing that information.

3114

     (c)  The maximum number of units that will use facilities in

3115

common with the cooperative. If the maximum number of units will

3116

vary, a description of the basis for variation and the minimum

3117

amount of dollars per unit to be spent for additional

3118

recreational facilities or enlargement of such facilities. If the

3119

addition or enlargement of facilities will result in a material

3120

increase of a unit owner's maintenance expense or rental expense,

3121

if any, the maximum increase and limitations thereon shall be

3122

stated.

3123

     (5)(a)  A statement in conspicuous type describing whether

3124

the cooperative is created and being sold as fee simple interests

3125

or as leasehold interests. If the cooperative is created or being

3126

sold on a leasehold, the location of the lease in the disclosure

3127

materials shall be stated.

3128

     (b)  If timeshare estates are or may be created with respect

3129

to any unit in the cooperative, a statement in conspicuous type

3130

stating that timeshare estates are created and being sold in such

3131

specified units in the cooperative.

3132

     (6)  A description of the recreational and other common

3133

areas that will be used only by unit owners of the cooperative,

3134

including, but not limited to, the following:

3135

     (a)  Each room and its intended purposes, location,

3136

approximate floor area, and capacity in numbers of people.

3137

     (b)  Each swimming pool, as to its general location,

3138

approximate size and depths, approximate deck size and capacity,

3139

and whether heated.

3140

     (c)  Additional facilities, as to the number of each

3141

facility, its approximate location, approximate size, and

3142

approximate capacity.

3143

     (d)  A general description of the items of personal property

3144

and the approximate number of each item of personal property that

3145

the developer is committing to furnish for each room or other

3146

facility or, in the alternative, a representation as to the

3147

minimum amount of expenditure that will be made to purchase the

3148

personal property for the facility.

3149

     (e)  The estimated date when each room or other facility

3150

will be available for use by the unit owners.

3151

     (f)1.  An identification of each room or other facility to

3152

be used by unit owners that will not be owned by the unit owners

3153

or the association;

3154

     2.  A reference to the location in the disclosure materials

3155

of the lease or other agreements providing for the use of those

3156

facilities; and

3157

     3.  A description of the terms of the lease or other

3158

agreements, including the length of the term; the rent payable,

3159

directly or indirectly, by each unit owner, and the total rent

3160

payable to the lessor, stated in monthly and annual amounts for

3161

the entire term of the lease; and a description of any option to

3162

purchase the property leased under any such lease, including the

3163

time the option may be exercised, the purchase price or how it is

3164

to be determined, the manner of payment, and whether the option

3165

may be exercised for a unit owner's share or only as to the

3166

entire leased property.

3167

     (g)  A statement as to whether the developer may provide

3168

additional facilities not described above, their general

3169

locations and types, improvements or changes that may be made,

3170

the approximate dollar amount to be expended, and the maximum

3171

additional common expense or cost to the individual unit owners

3172

that may be charged during the first annual period of operation

3173

of the modified or added facilities.

3174

3175

Descriptions as to locations, areas, capacities, numbers,

3176

volumes, or sizes may be stated as approximations or minimums.

3177

     (7)  A description of the recreational and other facilities

3178

that will be used in common with other cooperatives, community

3179

associations, or planned developments which require the payment

3180

of the maintenance and expenses of such facilities, either

3181

directly or indirectly, by the unit owners. The description shall

3182

include, but not be limited to, the following:

3183

     (a)  Each building and facility committed to be built.

3184

     (b)  Facilities not committed to be built except under

3185

certain conditions, and a statement of those conditions or

3186

contingencies.

3187

     (c)  As to each facility committed to be built, or which

3188

will be committed to be built upon the happening of one of the

3189

conditions in paragraph (b), a statement of whether it will be

3190

owned by the unit owners having the use thereof or by an

3191

association or other entity which will be controlled by them, or

3192

others, and the location in the exhibits of the lease or other

3193

document providing for use of those facilities.

3194

     (d)  The year in which each facility will be available for

3195

use by the unit owners or, in the alternative, the maximum number

3196

of unit owners in the project at the time each of all of the

3197

facilities is committed to be completed.

3198

     (e)  A general description of the items of personal

3199

property, and the approximate number of each item of personal

3200

property, that the developer is committing to furnish for each

3201

room or other facility or, in the alternative, a representation

3202

as to the minimum amount of expenditure that will be made to

3203

purchase the personal property for the facility.

3204

     (f)  If there are leases, a description thereof, including

3205

the length of the term, the rent payable, and a description of

3206

any option to purchase.

3207

3208

Descriptions shall include location, areas, capacities, numbers,

3209

volumes, or sizes and may be stated as approximations or

3210

minimums.

3211

     (8)  Recreation lease or associated club membership:

3212

     (a)  If any recreational facilities or other common areas

3213

offered by the developer and available to, or to be used by, unit

3214

owners are to be leased or have club membership associated, the

3215

following statement in conspicuous type shall be included: THERE

3216

IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS

3217

COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS

3218

COOPERATIVE. There shall be a reference to the location in the

3219

disclosure materials where the recreation lease or club

3220

membership is described in detail.

3221

     (b)  If it is mandatory that unit owners pay a fee, rent,

3222

dues, or other charges under a recreational facilities lease or

3223

club membership for the use of facilities, there shall be in

3224

conspicuous type the applicable statement:

3225

     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS

3226

MANDATORY FOR UNIT OWNERS; or

3227

     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,

3228

TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or

3229

     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS

3230

AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,

3231

RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE

3232

OTHER INSTRUMENTS PROVIDING THE FACILITIES); or

3233

     4.  A similar statement of the nature of the organization or

3234

manner in which the use rights are created, and that unit owners

3235

are required to pay.

3236

3237

Immediately following the applicable statement, the location in

3238

the disclosure materials where the development is described in

3239

detail shall be stated.

3240

     (c)  If the developer, or any other person other than the

3241

unit owners and other persons having use rights in the

3242

facilities, reserves, or is entitled to receive, any rent, fee,

3243

or other payment for the use of the facilities, then there shall

3244

be the following statement in conspicuous type: THE UNIT OWNERS

3245

OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR

3246

RECREATIONAL OR OTHER COMMON AREAS. Immediately following this

3247

statement, the location in the disclosure materials where the

3248

rent or land use fees are described in detail shall be stated.

3249

     (d)  If, in any recreation format, whether leasehold, club,

3250

or other, any person other than the association has the right to

3251

a lien on the units to secure the payment of assessments, rent,

3252

or other exactions, there shall appear a statement in conspicuous

3253

type in substantially the following form:

3254

     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

3255

SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE

3256

RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE PAYMENTS

3257

MAY RESULT IN FORECLOSURE OF THE LIEN; or

3258

     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

3259

SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE

3260

FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL

3261

OR COMMONLY USED AREAS. THE UNIT OWNER'S FAILURE TO MAKE THESE

3262

PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.

3263

3264

Immediately following the applicable statement, the location in

3265

the disclosure materials where the lien or lien right is

3266

described in detail shall be stated.

3267

     (9)  If the developer or any other person has the right to

3268

increase or add to the recreational facilities at any time after

3269

the establishment of the cooperative whose unit owners have use

3270

rights therein, without the consent of the unit owners or

3271

associations being required, there shall appear a statement in

3272

conspicuous type in substantially the following form:

3273

RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT

3274

OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this

3275

statement, the location in the disclosure materials where such

3276

reserved rights are described shall be stated.

3277

     (10)  A statement of whether the developer's plan includes a

3278

program of leasing units rather than selling them, or leasing

3279

units and selling them subject to such leases. If so, there shall

3280

be a description of the plan, including the number and

3281

identification of the units and the provisions and term of the

3282

proposed leases, and a statement in boldfaced type that: THE

3283

UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.

3284

     (11)  The arrangements for management of the association and

3285

maintenance and operation of the cooperative property and of

3286

other property that will serve the unit owners of the cooperative

3287

property, and a description of the management contract and all

3288

other contracts for these purposes having a term in excess of 1

3289

year, including the following:

3290

     (a)  The names of contracting parties.

3291

     (b)  The term of the contract.

3292

     (c)  The nature of the services included.

3293

     (d)  The compensation, stated on a monthly and annual basis,

3294

and provisions for increases in the compensation.

3295

     (e)  A reference to the volumes and pages of the cooperative

3296

documents and of the exhibits containing copies of such

3297

contracts.

3298

3299

Copies of all described contracts shall be attached as exhibits.

3300

If there is a contract for the management of the cooperative

3301

property, then a statement in conspicuous type in substantially

3302

the following form shall appear, identifying the proposed or

3303

existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR THE

3304

MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF THE CONTRACT

3305

MANAGER). Immediately following this statement, the location in

3306

the disclosure materials of the contract for management of the

3307

cooperative property shall be stated.

3308

     (12)  If the developer or any other person or persons other

3309

than the unit owners has the right to retain control of the board

3310

of administration of the association for a period of time which

3311

can exceed 1 year after the closing of the sale of a majority of

3312

the units in that cooperative to persons other than successors or

3313

alternate developers, then a statement in conspicuous type in

3314

substantially the following form shall be included: THE DEVELOPER

3315

(OR OTHER PERSON) HAS THE RIGHT TO RETAIN CONTROL OF THE

3316

ASSOCIATION AFTER A MAJORITY OF THE UNITS HAVE BEEN SOLD.

3317

Immediately following this statement, the location in the

3318

disclosure materials where this right to control is described in

3319

detail shall be stated.

3320

     (13)  If there are any restrictions upon the sale, transfer,

3321

conveyance, or leasing of a unit, then a statement in conspicuous

3322

type in substantially the following form shall be included: THE

3323

SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR CONTROLLED.

3324

Immediately following this statement, the location in the

3325

disclosure materials where the restriction, limitation, or

3326

control on the sale, lease, or transfer of units is described in

3327

detail shall be stated.

3328

     (14)  If the cooperative is part of a phase project, the

3329

following shall be stated:

3330

     (a)  A statement in conspicuous type in substantially the

3331

following form shall be included: THIS IS A PHASE COOPERATIVE.

3332

ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE.

3333

Immediately following this statement, the location in the

3334

disclosure materials where the phasing is described shall be

3335

stated.

3336

     (b)  A summary of the provisions of the declaration

3337

providing for the phasing.

3338

     (c)  A statement as to whether or not residential buildings

3339

and units which are added to the cooperative may be substantially

3340

different from the residential buildings and units originally in

3341

the cooperative, and, if the added residential buildings and

3342

units may be substantially different, there shall be a general

3343

description of the extent to which such added residential

3344

buildings and units may differ, and a statement in conspicuous

3345

type in substantially the following form shall be included:

3346

BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE MAY BE

3347

SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND UNITS IN THE

3348

COOPERATIVE. Immediately following this statement, the location

3349

in the disclosure materials where the extent to which added

3350

residential buildings and units may substantially differ is

3351

described shall be stated.

3352

     (d)  A statement of the maximum number of buildings

3353

containing units, the maximum and minimum number of units in each

3354

building, the maximum number of units, and the minimum and

3355

maximum square footage of the units that may be contained within

3356

each parcel of land which may be added to the cooperative.

3357

     (15)  If the cooperative is created by conversion of

3358

existing improvements, the following information shall be stated:

3359

     (a)  The information required by s. 719.616.

3360

     (b)  A caveat that there are no express warranties unless

3361

they are stated in writing by the developer.

3362

     (16)  A summary of the restrictions, if any, to be imposed

3363

on units concerning the use of any of the cooperative property,

3364

including statements as to whether there are restrictions upon

3365

children and pets, and reference to the volumes and pages of the

3366

cooperative documents where such restrictions are found, or if

3367

such restrictions are contained elsewhere, then a copy of the

3368

documents containing the restrictions shall be attached as an

3369

exhibit.

3370

     (17)  If there is any land that is offered by the developer

3371

for use by the unit owners and that is neither owned by them nor

3372

leased to them, the association, or any entity controlled by unit

3373

owners and other persons having the use rights to such land, a

3374

statement shall be made as to how such land will serve the

3375

cooperative. If any part of such land will serve the cooperative,

3376

the statement shall describe the land and the nature and term of

3377

service, and the cooperative documents or other instrument

3378

creating such servitude shall be included as an exhibit.

3379

     (18)  The manner in which utility and other services,

3380

including, but not limited to, sewage and waste disposal, water

3381

supply, and storm drainage, will be provided and the person or

3382

entity furnishing them.

3383

     (19)  An explanation of the manner in which the

3384

apportionment of common expenses and ownership of the common

3385

areas have been determined.

3386

     (20)  An estimated operating budget for the cooperative and

3387

the association, and a schedule of the unit owner's expenses

3388

shall be attached as an exhibit and shall contain the following

3389

information:

3390

     (a)  The estimated monthly and annual expenses of the

3391

cooperative and the association that are collected from unit

3392

owners by assessments.

3393

     (b)  The estimated monthly and annual expenses of each unit

3394

owner for a unit, other than assessments payable to the

3395

association, payable by the unit owner to persons or entities

3396

other than the association, and the total estimated monthly and

3397

annual expense. There may be excluded from this estimate expenses

3398

that are personal to unit owners, which are not uniformly

3399

incurred by all unit owners, or which are not provided for or

3400

contemplated by the cooperative documents, including, but not

3401

limited to, the costs of private telephone; maintenance of the

3402

interior of cooperative units, which is not the obligation of the

3403

association; maid or janitorial services privately contracted for

3404

by the unit owners; utility bills billed directly to each unit

3405

owner for utility services to his or her unit; insurance premiums

3406

other than those incurred for policies obtained by the

3407

cooperative; and similar personal expenses of the unit owner. A

3408

unit owner's estimated payments for assessments shall also be

3409

stated in the estimated amounts for the times when they will be

3410

due.

3411

     (c)  The estimated items of expenses of the cooperative and

3412

the association, except as excluded under paragraph (b),

3413

including, but not limited to, the following items, which shall

3414

be stated either as an association expense collectible by

3415

assessments or as unit owners' expenses payable to persons other

3416

than the association:

3417

     1.  Expenses for the association and cooperative:

3418

     a.  Administration of the association.

3419

     b.  Management fees.

3420

     c.  Maintenance.

3421

     d.  Rent for recreational and other commonly used areas.

3422

     e.  Taxes upon association property.

3423

     f.  Taxes upon leased areas.

3424

     g.  Insurance.

3425

     h.  Security provisions.

3426

     i.  Other expenses.

3427

     j.  Operating capital.

3428

     k.  Reserves.

3429

     l.  Fee payable to the division.

3430

     2.  Expenses for a unit owner:

3431

     a.  Rent for the unit, if subject to a lease.

3432

     b.  Rent payable by the unit owner directly to the lessor or

3433

agent under any recreational lease or lease for the use of

3434

commonly used areas, which use and payment are a mandatory

3435

condition of ownership and are not included in the common expense

3436

or assessments for common maintenance paid by the unit owners to

3437

the association.

3438

     (d)  The following statement in conspicuous type: THE BUDGET

3439

CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN

3440

ACCORDANCE WITH THE COOPERATIVE ACT AND IS A GOOD FAITH ESTIMATE

3441

ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON

3442

FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.

3443

ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH

3444

CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN THE

3445

OFFERING.

3446

     (e)  Each budget for an association prepared by a developer

3447

consistent with this subsection shall be prepared in good faith

3448

and shall reflect accurate estimated amounts for the required

3449

items in paragraph (c) at the time of the filing of the offering

3450

circular with the division, and subsequent increased amounts of

3451

any item included in the association's estimated budget that are

3452

beyond the control of the developer shall not be considered an

3453

amendment that would give rise to rescission rights set forth in

3454

s. 719.503(1)(a) or (b), nor shall such increases modify, void,

3455

or otherwise affect any guarantee of the developer contained in

3456

the offering circular or any purchase contract. It is the intent

3457

of this paragraph to clarify existing law.

3458

     (f)  The estimated amounts shall be stated for a period of

3459

at least 12 months and may distinguish between the period prior

3460

to the time unit owners other than the developer elect a majority

3461

of the board of administration and the period after that date.

3462

     (21)  A schedule of estimated closing expenses to be paid by

3463

a buyer or lessee of a unit and a statement of whether title

3464

opinion or title insurance policy is available to the buyer and,

3465

if so, at whose expense.

3466

     (22)  The identity of the developer and the chief operating

3467

officer or principal directing the creation and sale of the

3468

cooperative and a statement of its and his or her experience in

3469

this field.

3470

     (23)  Copies of the following, to the extent they are

3471

applicable, shall be included as exhibits:

3472

     (a)  The cooperative documents, or the proposed cooperative

3473

documents if the documents have not been recorded.

3474

     (b)  The articles of incorporation creating the association.

3475

     (c)  The bylaws of the association.

3476

     (d)  The ground lease or other underlying lease of the

3477

cooperative.

3478

     (e)  The management agreement and all maintenance and other

3479

contracts for management of the association and operation of the

3480

cooperative and facilities used by the unit owners having a

3481

service term in excess of 1 year.

3482

     (f)  The estimated operating budget for the cooperative and

3483

the required schedule of unit owners' expenses.

3484

     (g)  A copy of the floor plan of the unit and the plot plan

3485

showing the location of the residential buildings and the

3486

recreation and other common areas.

3487

     (h)  The lease of recreational and other facilities that

3488

will be used only by unit owners of the subject cooperative.

3489

     (i)  The lease of facilities used by owners and others.

3490

     (j)  The form of unit lease, if the offer is of a leasehold.

3491

     (k)  A declaration of servitude of properties serving the

3492

cooperative but not owned by unit owners or leased to them or the

3493

association.

3494

     (l)  The statement of condition of the existing building or

3495

buildings, if the offering is of units in an operation being

3496

converted to cooperative ownership.

3497

     (m)  The statement of inspection for termite damage and

3498

treatment of the existing improvements, if the cooperative is a

3499

conversion.

3500

     (n)  The form of agreement for sale or lease of units.

3501

     (o)  A copy of the agreement for escrow of payments made to

3502

the developer prior to closing.

3503

     (p)  A copy of the documents containing any restrictions on

3504

use of the property required by subsection (16).

3505

     (24)  Any prospectus or offering circular complying with the

3506

provisions of former ss. 711.69 and 711.802 may continue to be

3507

used without amendment, or may be amended to comply with the

3508

provisions of this chapter.

3509

     (25)  A brief narrative description of the location and

3510

effect of all existing and intended easements located or to be

3511

located on the cooperative property other than those in the

3512

declaration.

3513

     (26)  If the developer is required by state or local

3514

authorities to obtain acceptance or approval of any dock or

3515

marina facility intended to serve the cooperative, a copy of such

3516

acceptance or approval acquired by the time of filing with the

3517

division pursuant to s. 719.502 or a statement that such

3518

acceptance has not been acquired or received.

3519

     (27)  Evidence demonstrating that the developer has an

3520

ownership, leasehold, or contractual interest in the land upon

3521

which the cooperative is to be developed.

3522

     Section 57.  Section 719.508, Florida Statutes, is amended

3523

to read:

3524

     719.508  Regulation by Division of Hotels and

3525

Restaurants.--In addition to the authority, regulation, or

3526

control exercised by the Division of Florida Land Sales,

3527

Condominiums, Timeshares, and Mobile Homes pursuant to this act

3528

with respect to cooperatives, buildings included in a cooperative

3529

property shall be subject to the authority, regulation, or

3530

control of the Division of Hotels and Restaurants of the

3531

Department of Business and Professional Regulation, to the extent

3532

provided for in chapters 399 and 509.

3533

     Section 58.  Paragraph (a) of subsection (2) of section

3534

719.608, Florida Statutes, is amended to read:

3535

     719.608  Notice of intended conversion; time of delivery;

3536

content.--

3537

     (2)(a)  Each notice of intended conversion shall be dated

3538

and in writing. The notice shall contain the following statement,

3539

with the phrases of the following statement which appear in upper

3540

case printed in conspicuous type:

3541

3542

     These apartments are being converted to cooperative by  

3543

(name of developer)  , the developer.

3544

     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF

3545

YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL

3546

AGREEMENT AS FOLLOWS:

3547

     a.  If you have continuously been a resident of these

3548

apartments during the last 180 days and your rental agreement

3549

expires during the next 270 days, you may extend your rental

3550

agreement for up to 270 days after the date of this notice.

3551

     b.  If you have not been a continuous resident of these

3552

apartments for the last 180 days and your rental agreement

3553

expires during the next 180 days, you may extend your rental

3554

agreement for up to 180 days after the date of this notice.

3555

     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU

3556

MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE

3557

DATE OF THIS NOTICE.

3558

     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,

3559

you may extend your rental agreement for up to 45 days after the

3560

date of this notice while you decide whether to extend your

3561

rental agreement as explained above. To do so, you must notify

3562

the developer in writing. You will then have the full 45 days to

3563

decide whether to extend your rental agreement as explained

3564

above.

3565

     3.  During the extension of your rental agreement you will

3566

be charged the same rent that you are now paying.

3567

     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION

3568

OF THE RENTAL AGREEMENT AS FOLLOWS:

3569

     a.  If your rental agreement began or was extended or

3570

renewed after May 1, 1980, and your rental agreement, including

3571

extensions and renewals, has an unexpired term of 180 days or

3572

less, you may cancel your rental agreement upon 30 days' written

3573

notice and move. Also, upon 30 days' written notice, you may

3574

cancel any extension of the rental agreement.

3575

     b.  If your rental agreement was not begun or was not

3576

extended or renewed after May 1, 1980, you may not cancel the

3577

rental agreement without the consent of the developer. If your

3578

rental agreement, including extensions and renewals, has an

3579

unexpired term of 180 days or less, you may, however, upon 30

3580

days' written notice cancel any extension of the rental

3581

agreement.

3582

     5.  All notices must be given in writing and sent by mail,

3583

return receipt requested, or delivered in person to the developer

3584

at this address:   (name and address of developer)  .

3585

     6.  If you have continuously been a resident of these

3586

apartments during the last 180 days:

3587

     a.  You have the right to purchase your apartment and will

3588

have 45 days to decide whether to purchase. If you do not buy the

3589

unit at that price and the unit is later offered at a lower

3590

price, you will have the opportunity to buy the unit at the lower

3591

price. However, in all events your right to purchase the unit

3592

ends when the rental agreement or any extension of the rental

3593

agreement ends or when you waive this right in writing.

3594

     b.  Within 90 days you will be provided purchase information

3595

relating to your apartment, including the price of your unit and

3596

the condition of the building. If you do not receive this

3597

information within 90 days, your rental agreement and any

3598

extension will be extended 1 day for each day over 90 days until

3599

you are given the purchase information. If you do not want this

3600

rental agreement extension, you must notify the developer in

3601

writing.

3602

     7.  If you have any questions regarding this conversion or

3603

the Cooperative Act, you may contact the developer or the state

3604

agency which regulates cooperatives: The Division of Florida Land

3605

Sales, Condominiums, Timeshares, and Mobile Homes, (Tallahassee

3606

address and telephone number of division)  .

3607

     Section 59.  Subsection (7) of section 720.301, Florida

3608

Statutes, is amended to read:

3609

     720.301  Definitions.--As used in this chapter, the term:

3610

     (7) "Division" means the Division of Florida Land Sales,

3611

Condominiums, Timeshares, and Mobile Homes in the Department of

3612

Business and Professional Regulation.

3613

     Section 60.  Subsection (2) of section 720.401, Florida

3614

Statutes, is amended to read:

3615

     720.401  Prospective purchasers subject to association

3616

membership requirement; disclosure required; covenants;

3617

assessments; contract cancellation.--

3618

     (2)  This section does not apply to any association

3619

regulated under chapter 718, chapter 719, chapter 721, or chapter

3620

723 or to a subdivider registered under chapter 498; and also

3621

does not apply if disclosure regarding the association is

3622

otherwise made in connection with the requirements of chapter

3623

718, chapter 719, chapter 721, or chapter 723.

3624

     Section 61.  Paragraph (c) of subsection (1) of section

3625

721.03, Florida Statutes, is amended to read:

3626

     721.03  Scope of chapter.--

3627

     (1)  This chapter applies to all timeshare plans consisting

3628

of more than seven timeshare periods over a period of at least 3

3629

years in which the accommodations and facilities, if any, are

3630

located within this state or offered within this state; provided

3631

that:

3632

     (c)  All timeshare accommodations or facilities which are

3633

located outside the state but offered for sale in this state

3634

shall be governed by the following:

3635

     1.  The offering for sale in this state of timeshare

3636

accommodations and facilities located outside the state is

3637

subject only to the provisions of ss. 721.01-721.12, 721.18,

3638

721.20, 721.21, 721.26, 721.28, and part II.

3639

     2.  The division shall not require a developer of timeshare

3640

accommodations or facilities located outside of this state to

3641

make changes in any timeshare instrument to conform to the

3642

provisions of s. 721.07 or s. 721.55. The division shall have the

3643

power to require disclosure of those provisions of the timeshare

3644

instrument that do not conform to s. 721.07 or s. 721.55 as the

3645

director determines is necessary to fairly, meaningfully, and

3646

effectively disclose all aspects of the timeshare plan.

3647

     3.  Except as provided in this subparagraph, the division

3648

shall have no authority to determine whether any person has

3649

complied with another state's laws or to disapprove any filing

3650

out-of-state, timeshare instrument, or component site document,

3651

based solely upon the lack or degree of timeshare regulation in

3652

another state. The division may require a developer to obtain and

3653

provide to the division existing documentation relating to an

3654

out-of-state filing, timeshare instrument, or component site

3655

document and prove compliance of same with the laws of that

3656

state. In this regard, the division may accept any evidence of

3657

the approval or acceptance of any out-of-state filing, timeshare

3658

instrument, or component site document by another state in lieu

3659

of requiring a developer to file the out-of-state filing,

3660

timeshare instrument, or component site document with the

3661

division pursuant to this section, or the division may accept an

3662

opinion letter from an attorney or law firm opining as to the

3663

compliance of such out-of-state filing, timeshare instrument, or

3664

component site document with the laws of another state. The

3665

division may refuse to approve the inclusion of any out-of-state

3666

filing, timeshare instrument, or component site document as part

3667

of a public offering statement based upon the inability of the

3668

developer to establish the compliance of same with the laws of

3669

another state.

3670

     4.  The division is authorized to enter into an agreement

3671

with another state for the purpose of facilitating the processing

3672

of out-of-state timeshare instruments or other component site

3673

documents pursuant to this chapter and for the purpose of

3674

facilitating the referral of consumer complaints to the

3675

appropriate state.

3676

     5.  Notwithstanding any other provision of this paragraph,

3677

the offer, in this state, of an additional interest to existing

3678

purchasers in the same timeshare plan or the same component site

3679

of a multisite timeshare plan, the same nonspecific multisite

3680

timeshare plan, with accommodations and facilities located

3681

outside of this state shall not be subject to the provisions of

3682

this chapter if the offer complies with the provisions of s.

3683

721.11(4).

3684

     Section 62.  Subsection (11) of section 721.05, Florida

3685

Statutes, is amended to read:

3686

     721.05  Definitions.--As used in this chapter, the term:

3687

     (11) "Division" means the Division of Florida Land Sales,

3688

Condominiums, Timeshares, and Mobile Homes of the Department of

3689

Business and Professional Regulation.

3690

     Section 63.  Paragraph (d) of subsection (2) of section

3691

721.07, Florida Statutes, is amended to read:

3692

     721.07  Public offering statement.--Prior to offering any

3693

timeshare plan, the developer must submit a filed public offering

3694

statement to the division for approval as prescribed by s.

3695

721.03, s. 721.55, or this section. Until the division approves

3696

such filing, any contract regarding the sale of that timeshare

3697

plan is subject to cancellation by the purchaser pursuant to s.

3698

721.10.

3699

     (2)

3700

     (d)  A developer shall have the authority to deliver to

3701

purchasers any purchaser public offering statement that is not

3702

yet approved by the division, provided that the following shall

3703

apply:

3704

     1.  At the time the developer delivers an unapproved

3705

purchaser public offering statement to a purchaser pursuant to

3706

this paragraph, the developer shall deliver a fully completed and

3707

executed copy of the purchase contract required by s. 721.06 that

3708

contains the following statement in conspicuous type in

3709

substantially the following form which shall replace the

3710

statements required by s. 721.06(1)(g):

3711

3712

The developer is delivering to you a public offering statement

3713

that has been filed with but not yet approved by the Division of

3714

Florida Land Sales, Condominiums, Timeshares, and Mobile Homes.

3715

Any revisions to the unapproved public offering statement you

3716

have received must be delivered to you, but only if the revisions

3717

materially alter or modify the offering in a manner adverse to

3718

you. After the division approves the public offering statement,

3719

you will receive notice of the approval from the developer and

3720

the required revisions, if any.

3721

3722

Your statutory right to cancel this transaction without any

3723

penalty or obligation expires 10 calendar days after the date you

3724

signed your purchase contract or the date on which you receive

3725

the last of all documents required to be given to you pursuant to

3726

section 721.07(6), Florida Statutes, or 10 calendar days after

3727

you receive revisions required to be delivered to you, if any,

3728

whichever is later. If you decide to cancel this contract, you

3729

must notify the seller in writing of your intent to cancel. Your

3730

notice of cancellation shall be effective upon the date sent and

3731

shall be sent to   (Name of Seller)   at   (Address of Seller)  .

3732

Any attempt to obtain a waiver of your cancellation right is void

3733

and of no effect. While you may execute all closing documents in

3734

advance, the closing, as evidenced by delivery of the deed or

3735

other document, before expiration of your 10-day cancellation

3736

period, is prohibited.

3737

3738

     2.  After receipt of approval from the division and prior to

3739

closing, if any revisions made to the documents contained in the

3740

purchaser public offering statement materially alter or modify

3741

the offering in a manner adverse to a purchaser, the developer

3742

shall send the purchaser such revisions together with a notice

3743

containing a statement in conspicuous type in substantially the

3744

following form:

3745

3746

The unapproved public offering statement previously delivered to

3747

you, together with the enclosed revisions, has been approved by

3748

the Division of Florida Land Sales, Condominiums, Timeshares, and

3749

Mobile Homes. Accordingly, your cancellation right expires 10

3750

calendar days after you sign your purchase contract or 10

3751

calendar days after you receive these revisions, whichever is

3752

later. If you have any questions regarding your cancellation

3753

rights, you may contact the division at [insert division's

3754

current address].

3755

3756

     3.  After receipt of approval from the division and prior to

3757

closing, if no revisions have been made to the documents

3758

contained in the unapproved purchaser public offering statement,

3759

or if such revisions do not materially alter or modify the

3760

offering in a manner adverse to a purchaser, the developer shall

3761

send the purchaser a notice containing a statement in conspicuous

3762

type in substantially the following form:

3763

3764

The unapproved public offering statement previously delivered to

3765

you has been approved by the Division of Florida Land Sales,

3766

Condominiums, Timeshares, and Mobile Homes. Revisions made to the

3767

unapproved public offering statement, if any, are either not

3768

required to be delivered to you or are not deemed by the

3769

developer, in its opinion, to materially alter or modify the

3770

offering in a manner that is adverse to you. Accordingly, your

3771

cancellation right expired 10 days after you signed your purchase

3772

contract. A complete copy of the approved public offering

3773

statement is available through the managing entity for inspection

3774

as part of the books and records of the plan. If you have any

3775

questions regarding your cancellation rights, you may contact the

3776

division at [insert division's current address].

3777

     Section 64.  Subsection (8) of section 721.08, Florida

3778

Statutes, is amended to read:

3779

     721.08  Escrow accounts; nondisturbance instruments;

3780

alternate security arrangements; transfer of legal title.--

3781

     (8)  An escrow agent holding escrowed funds pursuant to this

3782

chapter that have not been claimed for a period of 5 years after

3783

the date of deposit shall make at least one reasonable attempt to

3784

deliver such unclaimed funds to the purchaser who submitted such

3785

funds to escrow. In making such attempt, an escrow agent is

3786

entitled to rely on a purchaser's last known address as set forth

3787

in the books and records of the escrow agent and is not required

3788

to conduct any further search for the purchaser. If an escrow

3789

agent's attempt to deliver unclaimed funds to any purchaser is

3790

unsuccessful, the escrow agent may deliver such unclaimed funds

3791

to the division and the division shall deposit such unclaimed

3792

funds in the Division of Florida Land Sales, Condominiums,

3793

Timeshares, and Mobile Homes Trust Fund, 30 days after giving

3794

notice in a publication of general circulation in the county in

3795

which the timeshare property containing the purchaser's timeshare

3796

interest is located. The purchaser may claim the same at any time

3797

prior to the delivery of such funds to the division. After

3798

delivery of such funds to the division, the purchaser shall have

3799

no more rights to the unclaimed funds. The escrow agent shall not

3800

be liable for any claims from any party arising out of the escrow

3801

agent's delivery of the unclaimed funds to the division pursuant

3802

to this section.

3803

     Section 65.  Section 721.26, Florida Statutes, is amended to

3804

read:

3805

     721.26  Regulation by division.--The division has the power

3806

to enforce and ensure compliance with the provisions of this

3807

chapter, except for parts III and IV, using the powers provided

3808

in this chapter, as well as the powers prescribed in chapters

3809

498, 718, and 719. In performing its duties, the division shall

3810

have the following powers and duties:

3811

     (1)  To aid in the enforcement of this chapter, or any

3812

division rule adopted or order promulgated or issued pursuant to

3813

this chapter, the division may make necessary public or private

3814

investigations within or outside this state to determine whether

3815

any person has violated or is about to violate this chapter, or

3816

any division rule adopted or order promulgated or issued pursuant

3817

to this chapter.

3818

     (2)  The division may require or permit any person to file a

3819

written statement under oath or otherwise, as the division

3820

determines, as to the facts and circumstances concerning a matter

3821

under investigation.

3822

     (3)  For the purpose of any investigation under this

3823

chapter, the director of the division or any officer or employee

3824

designated by the director may administer oaths or affirmations,

3825

subpoena witnesses and compel their attendance, take evidence,

3826

and require the production of any matter which is relevant to the

3827

investigation, including the identity, existence, description,

3828

nature, custody, condition, and location of any books, documents,

3829

or other tangible things and the identity and location of persons

3830

having knowledge of relevant facts or any other matter reasonably

3831

calculated to lead to the discovery of material evidence. Failure

3832

to obey a subpoena or to answer questions propounded by the

3833

investigating officer and upon reasonable notice to all persons

3834

affected thereby shall be a violation of this chapter. In

3835

addition to the other enforcement powers authorized in this

3836

subsection, the division may, at its discretion, apply to the

3837

circuit court for an order compelling compliance.

3838

     (4)  The division may prepare and disseminate a prospectus

3839

and other information to assist prospective purchasers, sellers,

3840

and managing entities of timeshare plans in assessing the rights,

3841

privileges, and duties pertaining thereto.

3842

     (5)  Notwithstanding any remedies available to purchasers,

3843

if the division has reasonable cause to believe that a violation

3844

of this chapter, or of any division rule adopted or order

3845

promulgated or issued pursuant to this chapter, has occurred, the

3846

division may institute enforcement proceedings in its own name

3847

against any regulated party, as such term is defined in this

3848

subsection:

3849

     (a)1.  "Regulated party," for purposes of this section,

3850

means any developer, exchange company, seller, managing entity,

3851

owners' association, owners' association director, owners'

3852

association officer, manager, management firm, escrow agent,

3853

trustee, any respective assignees or agents, or any other person

3854

having duties or obligations pursuant to this chapter.

3855

     2.  Any person who materially participates in any offer or

3856

disposition of any interest in, or the management or operation

3857

of, a timeshare plan in violation of this chapter or relevant

3858

rules involving fraud, deception, false pretenses,

3859

misrepresentation, or false advertising or the disbursement,

3860

concealment, or diversion of any funds or assets, which conduct

3861

adversely affects the interests of a purchaser, and which person

3862

directly or indirectly controls a regulated party or is a general

3863

partner, officer, director, agent, or employee of such regulated

3864

party, shall be jointly and severally liable under this

3865

subsection with such regulated party, unless such person did not

3866

know, and in the exercise of reasonable care could not have

3867

known, of the existence of the facts giving rise to the violation

3868

of this chapter. A right of contribution shall exist among

3869

jointly and severally liable persons pursuant to this paragraph.

3870

     (b)  The division may permit any person whose conduct or

3871

actions may be under investigation to waive formal proceedings

3872

and enter into a consent proceeding whereby an order, rule, or

3873

letter of censure or warning, whether formal or informal, may be

3874

entered against that person.

3875

     (c)  The division may issue an order requiring a regulated

3876

party to cease and desist from an unlawful practice under this

3877

chapter and take such affirmative action as in the judgment of

3878

the division will carry out the purposes of this chapter.

3879

     (d)1.  The division may bring an action in circuit court for

3880

declaratory or injunctive relief or for other appropriate relief,

3881

including restitution.

3882

     2.  The division shall have broad authority and discretion

3883

to petition the circuit court to appoint a receiver with respect

3884

to any managing entity which fails to perform its duties and

3885

obligations under this chapter with respect to the operation of a

3886

timeshare plan. The circumstances giving rise to an appropriate

3887

petition for receivership under this subparagraph include, but

3888

are not limited to:

3889

     a.  Damage to or destruction of any of the accommodations or

3890

facilities of a timeshare plan, where the managing entity has

3891

failed to repair or reconstruct same.

3892

     b.  A breach of fiduciary duty by the managing entity,

3893

including, but not limited to, undisclosed self-dealing or

3894

failure to timely assess, collect, or disburse the common

3895

expenses of the timeshare plan.

3896

     c.  Failure of the managing entity to operate the timeshare

3897

plan in accordance with the timeshare instrument and this

3898

chapter.

3899

3900

If, under the circumstances, it appears that the events giving

3901

rise to the petition for receivership cannot be reasonably and

3902

timely corrected in a cost-effective manner consistent with the

3903

timeshare instrument, the receiver may petition the circuit court

3904

to implement such amendments or revisions to the timeshare

3905

instrument as may be necessary to enable the managing entity to

3906

resume effective operation of the timeshare plan, or to enter an

3907

order terminating the timeshare plan, or to enter such further

3908

orders regarding the disposition of the timeshare property as the

3909

court deems appropriate, including the disposition and sale of

3910

the timeshare property held by the owners' association or the

3911

purchasers. In the event of a receiver's sale, all rights, title,

3912

and interest held by the owners' association or any purchaser

3913

shall be extinguished and title shall vest in the buyer. This

3914

provision applies to timeshare estates, personal property

3915

timeshare interests, and timeshare licenses. All reasonable costs

3916

and fees of the receiver relating to the receivership shall

3917

become common expenses of the timeshare plan upon order of the

3918

court.

3919

     3.  The division may revoke its approval of any filing for

3920

any timeshare plan for which a petition for receivership has been

3921

filed pursuant to this paragraph.

3922

     (e)1.  The division may impose a penalty against any

3923

regulated party for a violation of this chapter or any rule

3924

adopted thereunder. A penalty may be imposed on the basis of each

3925

day of continuing violation, but in no event may the penalty for

3926

any offense exceed $10,000. All accounts collected shall be

3927

deposited with the Chief Financial Officer to the credit of the

3928

Division of Florida Land Sales, Condominiums, Timeshares, and

3929

Mobile Homes Trust Fund.

3930

     2.a.  If a regulated party fails to pay a penalty, the

3931

division shall thereupon issue an order directing that such

3932

regulated party cease and desist from further operation until

3933

such time as the penalty is paid; or the division may pursue

3934

enforcement of the penalty in a court of competent jurisdiction.

3935

     b.  If an owners' association or managing entity fails to

3936

pay a civil penalty, the division may pursue enforcement in a

3937

court of competent jurisdiction.

3938

     (f)  In order to permit the regulated party an opportunity

3939

either to appeal such decision administratively or to seek relief

3940

in a court of competent jurisdiction, the order imposing the

3941

penalty or the cease and desist order shall not become effective

3942

until 20 days after the date of such order.

3943

     (g)  Any action commenced by the division shall be brought

3944

in the county in which the division has its executive offices or

3945

in the county where the violation occurred.

3946

     (h)  Notice to any regulated party shall be complete when

3947

delivered by United States mail, return receipt requested, to the

3948

party's address currently on file with the division or to such

3949

other address at which the division is able to locate the party.

3950

Every regulated party has an affirmative duty to notify the

3951

division of any change of address at least 5 business days prior

3952

to such change.

3953

     (6)  The division has authority to adopt rules pursuant to

3954

ss. 120.536(1) and 120.54 to implement and enforce the provisions

3955

of this chapter.

3956

     (7)(a)  The use of any unfair or deceptive act or practice

3957

by any person in connection with the sales or other operations of

3958

an exchange program or timeshare plan is a violation of this

3959

chapter.

3960

     (b)  Any violation of the Florida Deceptive and Unfair Trade

3961

Practices Act, ss. 501.201 et seq., relating to the creation,

3962

promotion, sale, operation, or management of any timeshare plan

3963

shall also be a violation of this chapter.

3964

     (c) The division may is authorized to institute proceedings

3965

against any such person and take any appropriate action

3966

authorized in this section in connection therewith,

3967

notwithstanding any remedies available to purchasers.

3968

     (8)  The failure of any person to comply with any order of

3969

the division is a violation of this chapter.

3970

     Section 66.  Section 721.28, Florida Statutes, is amended to

3971

read:

3972

     721.28 Division of Florida Land Sales, Condominiums,

3973

Timeshares, and Mobile Homes Trust Fund.--All funds collected by

3974

the division and any amounts paid as fees or penalties under this

3975

chapter shall be deposited in the State Treasury to the credit of

3976

the Division of Florida Land Sales, Condominiums, Timeshares, and

3977

Mobile Homes Trust Fund created by s. 718.509 498.019.

3978

     Section 67.  Paragraph (c) of subsection (1) of section

3979

721.301, Florida Statutes, is amended to read:

3980

     721.301  Florida Timesharing, Vacation Club, and Hospitality

3981

Program.--

3982

     (1)

3983

     (c)  The director may designate funds from the Division of

3984

Florida Land Sales, Condominiums, Timeshares, and Mobile Homes

3985

Trust Fund, not to exceed $50,000 annually, to support the

3986

projects and proposals undertaken pursuant to paragraph (b). All

3987

state trust funds to be expended pursuant to this section must be

3988

matched equally with private moneys and shall comprise no more

3989

than half of the total moneys expended annually.

3990

     Section 68.  Section 721.50, Florida Statutes, is amended to

3991

read:

3992

     721.50  Short title.--This part may be cited as the

3993

"McAllister Act" in recognition and appreciation for the years of

3994

extraordinary and insightful contributions by Mr. Bryan C.

3995

McAllister, Examinations Supervisor of the former, Division of

3996

Florida Land Sales, Condominiums, and Mobile Homes.

3997

     Section 69.  Subsection (1) of section 723.003, Florida

3998

Statutes, is amended to read:

3999

     723.003  Definitions.--As used in this chapter, the

4000

following words and terms have the following meanings unless

4001

clearly indicated otherwise:

4002

     (1) The term "division" means the Division of Florida Land

4003

Sales, Condominiums, Timeshares, and Mobile Homes of the

4004

Department of Business and Professional Regulation.

4005

     Section 70.  Paragraph (e) of subsection (5) of section

4006

723.006, Florida Statutes, is amended to read:

4007

     723.006  Powers and duties of division.--In performing its

4008

duties, the division has the following powers and duties:

4009

     (5)  Notwithstanding any remedies available to mobile home

4010

owners, mobile home park owners, and homeowners' associations, if

4011

the division has reasonable cause to believe that a violation of

4012

any provision of this chapter or related any rule promulgated

4013

pursuant hereto has occurred, the division may institute

4014

enforcement proceedings in its own name against a developer,

4015

mobile home park owner, or homeowners' association, or its

4016

assignee or agent, as follows:

4017

     (e)1.  The division may impose a civil penalty against a

4018

mobile home park owner or homeowners' association, or its

4019

assignee or agent, for any violation of this chapter, a properly

4020

adopted promulgated park rule or regulation, or a rule adopted or

4021

regulation promulgated pursuant hereto. A penalty may be imposed

4022

on the basis of each separate violation and, if the violation is

4023

a continuing one, for each day of continuing violation, but in no

4024

event may the penalty for each separate violation or for each day

4025

of continuing violation exceed $5,000. All amounts collected

4026

shall be deposited with the Chief Financial Officer to the credit

4027

of the Division of Florida Land Sales, Condominiums, Timeshares,

4028

and Mobile Homes Trust Fund.

4029

     2.  If a violator fails to pay the civil penalty, the

4030

division shall thereupon issue an order directing that such

4031

violator cease and desist from further violation until such time

4032

as the civil penalty is paid or may pursue enforcement of the

4033

penalty in a court of competent jurisdiction. If a homeowners'

4034

association fails to pay the civil penalty, the division shall

4035

thereupon pursue enforcement in a court of competent

4036

jurisdiction, and the order imposing the civil penalty or the

4037

cease and desist order shall not become effective until 20 days

4038

after the date of such order. Any action commenced by the

4039

division shall be brought in the county in which the division has

4040

its executive offices or in which the violation occurred.

4041

     Section 71.  Section 723.009, Florida Statutes, is amended

4042

to read:

4043

     723.009 Division of Florida Land Sales, Condominiums,

4044

Timeshares, and Mobile Homes Trust Fund.--All proceeds from the

4045

fees, penalties, and fines imposed pursuant to this chapter shall

4046

be deposited into the Division of Florida Land Sales,

4047

Condominiums, Timeshares, and Mobile Homes Trust Fund created by

4048

s. 718.509 498.019. Moneys in this fund, as appropriated by the

4049

Legislature pursuant to chapter 216, may be used to defray the

4050

expenses incurred by the division in administering the provisions

4051

of this chapter.

4052

     Section 72.  Paragraph (c) of subsection (2) of section

4053

723.0611, Florida Statutes, is amended to read:

4054

     723.0611  Florida Mobile Home Relocation Corporation.--

4055

     (2)

4056

     (c)  The corporation shall, for purposes of s. 768.28, be

4057

considered an agency of the state. Agents or employees of the

4058

corporation, members of the board of directors of the

4059

corporation, or representatives of the Division of Florida Land

4060

Sales, Condominiums, Timeshares, and Mobile Homes shall be

4061

considered officers, employees, or agents of the state, and

4062

actions against them and the corporation shall be governed by s.

4063

768.28.

4064

     Section 73.  Except as otherwise expressly provided in this

4065

act, this act shall take effect July 1, 2008.

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