CS/CS/HB 679

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	34.01, F.S.; conforming a cross-reference; amending s.
4	514.011, F.S.; providing definitions; amending s.
5	514.0115, F.S.; providing specified supervision and
6	regulation exemptions for homeowners' association swimming
7	pools; amending s. 515.25, F.S.; conforming a cross-
8	reference; creating s. 515.295, F.S.; providing
9	definitions; requiring residential pools and spas built
10	after a specified date to have certain features; amending
11	s. 720.302, F.S.; conforming a cross-reference; providing
12	legislative intent; amending s. 720.303, F.S.; revising
13	provisions relating to homeowners' association board
14	meetings, inspection and copying of records, and reserve
15	accounts of budgets; prohibiting salary or compensation of
16	certain association personnel for certain duties;
17	providing exceptions; amending s. 720.305, F.S.; revising
18	a lien restriction; amending s. 720.306, F.S.; providing
19	absentee ballot voting requirements; requiring newly
20	elected members of a board of directors to make certain
21	certifications in writing to the association; providing
22	for disqualification for failure to make such
23	certifications; requiring an association to retain such
24	certifications for a certain time; repealing s. 720.311,
25	F.S., relating to dispute resolution; providing that
26	dispute resolution proceedings that are pending as of the
27	date of repeal shall continue under the repealed
28	provisions; amending s. 720.401, F.S.; revising certain
29	prospective parcel owner disclosure summary requirements;
30	creating part IV of ch. 720, F.S.; creating s. 720.501,
31	F.S.; providing a short title; creating s. 720.502, F.S.;
32	providing legislative findings; creating s. 720.503, F.S.;
33	providing applicability; providing for mediation and
34	arbitration of homeowners' association disputes; providing
35	exceptions; authorizing the filing of a motion for
36	temporary injunctive relief; providing for the tolling of
37	applicable statutes of limitations; creating s. 720.504,
38	F.S.; providing notification requirements; creating s.
39	720.505, F.S.; providing a statutory notice form for
40	referral to mediation; providing requirements for the
41	service of such notice; requiring parties to share costs
42	of presuit mediation equally; providing response
43	requirements; providing scheduling requirements; providing
44	for impasse under certain conditions; prohibiting certain
45	parties from recovering attorney's fees and costs in
46	subsequent litigation proceedings; creating s. 720.506,
47	F.S.; authorizing certain persons to opt out of presuit
48	mediation; providing requirements for a person to opt out
49	of such mediation; creating s. 720.507, F.S.; providing a
50	statutory notice form for referral to arbitration;
51	providing requirements for the service of such notice;
52	requiring parties to share costs of arbitration equally;
53	providing scheduling requirements; providing for impasse
54	under certain conditions; prohibiting certain parties from
55	recovering attorney's fees and costs in subsequent
56	litigation proceedings; creating s. 720.508, F.S.;
57	providing rules of procedure for presuit mediation and
58	presuit arbitration proceedings; providing for
59	confidentiality; creating s. 720.509, F.S.; providing
60	qualifications for mediators and arbitrators; creating s.
61	720.510, F.S.; providing for enforcement of mediation
62	settlement agreements and arbitration awards; requiring
63	the department to apply for and implement a federal grant
64	for enforcing swimming pool safety standards; requiring
65	the Department of Health, the Department of Community
66	Affairs, and the Florida Building Commission to assess
67	state statutes and the Florida Building Code to determine
68	if changes are needed to comply with federal standards
69	pertaining to swimming pool and spa safety; requiring the
70	Department of Health to present the assessment to the
71	Legislature by a specified date; providing effective
72	dates.
73
74	Be It Enacted by the Legislature of the State of Florida:
75
76	Section 1.  Paragraph (d) of subsection (1) of section
77	34.01, Florida Statutes, is amended to read:
78	34.01  Jurisdiction of county court.--
79	(1)  County courts shall have original jurisdiction:
80	(d)  Of disputes occurring in the homeowners' associations
81	as described in part IV of chapter 720 s. 720.311(2)(a), which
82	shall be concurrent with jurisdiction of the circuit courts.
83	Section 2.  Section 514.011, Florida Statutes, is amended
84	to read:
85	514.011  Definitions.--As used in this chapter, the term:
86	(1)  "Department" means the Department of Health.
87	(2)  "Homeowners' association" means a homeowners'
88	association as defined in s. 720.301.
89	(3)(5)  "Portable pool" means a pool or spa, and related
90	equipment systems of any kind, which is designed or intended to
91	be movable from location to location.
92	(4)(3)  "Private pool" means a facility used only by an
93	individual, family, or living unit members and their guests
94	which does not serve any type of cooperative housing or joint
95	tenancy of five or more living units.
96	(5)(4)  "Public bathing place" means a body of water,
97	natural or modified by humans, for swimming, diving, and
98	recreational bathing, together with adjacent shoreline or land
99	area, buildings, equipment, and appurtenances pertaining
100	thereto, used by consent of the owner or owners and held out to
101	the public by any person or public body, irrespective of whether
102	a fee is charged for the use thereof. The bathing water areas of
103	public bathing places include, but are not limited to, lakes,
104	ponds, rivers, streams, artificial impoundments, and waters
105	along the coastal and intracoastal beaches and shores of the
106	state.
107	(6)(2)  "Public swimming pool" or "public pool" means a
108	watertight structure of concrete, masonry, or other approved
109	materials which is located either indoors or outdoors, used for
110	bathing or swimming by humans, and filled with a filtered and
111	disinfected water supply, together with buildings,
112	appurtenances, and equipment used in connection therewith. A
113	public swimming pool or public pool shall mean a conventional
114	pool, spa-type pool, wading pool, special purpose pool, or water
115	recreation attraction, to which admission may be gained with or
116	without payment of a fee and includes, but is not limited to,
117	pools operated by or serving camps, churches, cities, counties,
118	day care centers, group home facilities for eight or more
119	clients, health spas, institutions, parks, state agencies,
120	schools, subdivisions, or the cooperative living-type projects
121	of five or more living units, such as apartments,
122	boardinghouses, hotels, mobile home parks, motels, recreational
123	vehicle parks, and townhouses.
124	Section 3.  Subsection (2) of section 514.0115, Florida
125	Statutes, is amended to read:
126	514.0115  Exemptions from supervision or regulation;
127	variances.--
128	(2)(a)  Pools serving no more than 32 condominium or
129	cooperative units or 32 parcels governed by a homeowners'
130	association which are not operated as a public lodging
131	establishment shall be exempt from supervision under this
132	chapter, except for water quality.
133	(b)  Pools serving condominium or cooperative associations
134	of more than 32 units or homeowners' associations of more than
135	32 parcels and whose recorded documents prohibit the rental or
136	sublease of the units for periods of less than 60 days are
137	exempt from supervision under this chapter, except that the
138	homeowners' association or condominium or cooperative owner or
139	association must file applications with the department and
140	obtain construction plans approval and receive an initial
141	operating permit. The department shall inspect the swimming
142	pools at such places annually, at the fee set forth in s.
143	514.033(3), or upon request by a unit owner, to determine
144	compliance with department rules relating to water quality and
145	lifesaving equipment. The department may not require compliance
146	with rules relating to swimming pool lifeguard standards.
147	Section 4.  Subsection (9) of section 515.25, Florida
148	Statutes, is amended to read:
149	515.25  Definitions.--As used in this chapter, the term:
150	(9)  "Public swimming pool" means a swimming pool, as
151	defined in s. 514.011(6)(2), which is operated, with or without
152	charge, for the use of the general public; however, the term
153	does not include a swimming pool located on the grounds of a
154	private residence.
155	Section 5.  Effective January 1, 2009, section 515.295,
156	Florida Statutes, is created to read:
157	515.295  Residential swimming pool and spa drain-cover
158	safety.--
159	(1)  For purposes of this section, the term:
160	(a)  "ASME/ANSI" as applied to a safety standard means a
161	standard that is accredited by the American National Standards
162	Institute and published by the American Society of Mechanical
163	Engineers.
164	(b)  "Main drain" means a submerged suction outlet
165	typically located at the bottom of a swimming pool or spa to
166	conduct water to a recirculating pump.
167	(c)  "Safety vacuum release system" means a vacuum release
168	system capable of providing vacuum release at a suction outlet
169	caused by a high vacuum occurrence due to a suction outlet flow
170	blockage.
171	(d)  "Unblockable drain" means a drain of any size and
172	shape which a human body cannot sufficiently block to create a
173	suction-entrapment hazard.
174	(2)  All residential swimming pools and spas constructed on
175	or after January 1, 2009, must have more than one drain, one or
176	more unblockable drains, or no main drain.
177	(3)  All residential swimming pools and spas constructed on
178	or after January 1, 2009, must be equipped with one or more of
179	the following devices and systems designed to prevent entrapment
180	by the pool or spa drain:
181	(a)  A safety vacuum release system that ceases operation
182	of the pump, reverses the circulation flow, or otherwise
183	provides a vacuum release at a suction outlet when a blockage is
184	detected. Such system must have been tested by an independent
185	third party and found to conform to ASME/ANSI standard
186	A112.19.17 or ASTM standard F2387.
187	(b)  A suction-limiting vent system that has a tamper-
188	resistant atmospheric opening.
189	(c)  A gravity drainage system that uses a collector tank.
190	(d)  An automatic pump shut-off system.
191	(e)  A device or system that disables the drain.
192	(f)  Any other system determined by the department to be
193	equally effective as, or better than, the systems described in
194	this subsection at preventing or eliminating the risk of injury
195	or death associated with swimming pool and spa drainage systems.
196	(4)  Any device or system described in subsection (3) must
197	meet the requirements of any ASME/ANSI or ASTM performance
198	standard, if there is such a standard for such a device or
199	system, or any applicable consumer product safety standard.
200	Section 6.  Subsection (2) of section 720.302, Florida
201	Statutes, is amended to read:
202	720.302  Purposes, scope, and application.--
203	(2)  The Legislature recognizes that it is not in the best
204	interest of homeowners' associations or the individual
205	association members thereof to create or impose a bureau or
206	other agency of state government to regulate the affairs of
207	homeowners' associations. However, in accordance with part IV of
208	this chapter s. 720.311, the Legislature finds that homeowners'
209	associations and their individual members will benefit from an
210	expedited alternative process for resolution of election and
211	recall disputes and presuit mediation of other disputes
212	involving covenant enforcement in homeowner's associations and
213	deed restricted communities using the procedures provided in
214	part IV of and authorizes the department to hear, administer,
215	and determine these disputes as more fully set forth in this
216	chapter. Further, the Legislature recognizes that certain
217	contract rights have been created for the benefit of homeowners'
218	associations and members thereof as well as deed-restricted
219	communities before the effective date of this act and that this
220	chapter is ss. 720.301-720.407 are not intended to impair such
221	contract rights, including, but not limited to, the rights of
222	the developer to complete the community as initially
223	contemplated.
224	Section 7.  Paragraph (b) of subsection (2), paragraphs (a)
225	and (c) of subsection (5), and paragraphs (b), (c), (d), (f),
226	and (g) of subsection (6) of section 720.303, Florida Statutes,
227	are amended, and subsection (12) is added to that section, to
228	read:
229	720.303  Association powers and duties; meetings of board;
230	official records; budgets; financial reporting; association
231	funds; recalls.--
232	(2)  BOARD MEETINGS.--
233	(b)  Members have the right to attend all meetings of the
234	board and to speak on any matter placed on the agenda by
235	petition of the voting interests for at least 3 minutes. The
236	association may adopt written reasonable rules expanding the
237	right of members to speak and governing the frequency, duration,
238	and other manner of member statements, which rules must be
239	consistent with this paragraph and may include a sign-up sheet
240	for members wishing to speak. Notwithstanding any other law, the
241	requirement that board meetings and committee meetings be open
242	to the members is inapplicable to meetings between the board or
243	a committee to discuss proposed or pending litigation with and
244	the association's attorney, and with respect to meetings of the
245	board held for the purpose of discussing personnel matters.
246	(5)  INSPECTION AND COPYING OF RECORDS.--The official
247	records shall be maintained within the state and must be open to
248	inspection and available for photocopying by members or their
249	authorized agents at reasonable times and places within 10
250	business days after receipt of a written request for access.
251	This subsection may be complied with by having a copy of the
252	official records available for inspection or copying in the
253	community. If the association has a photocopy machine available
254	where the records are maintained, it must provide parcel owners
255	with copies on request during the inspection if the entire
256	request is limited to no more than 25 pages.
257	(a)  The failure of an association to provide access to the
258	records within 10 business days after receipt of a written
259	request submitted by certified mail, return receipt requested,
260	creates a rebuttable presumption that the association willfully
261	failed to comply with this subsection.
262	(c)  The association may adopt reasonable written rules
263	governing the frequency, time, location, notice, records to be
264	inspected, and manner of inspections, but may not impose a
265	requirement that a parcel owner demonstrate any proper purpose
266	for the inspection, state any reason for the inspection, or
267	limit a parcel owner's right to inspect records to less than one
268	8-hour business day per month. The association may impose fees
269	to cover the costs of providing copies of the official records,
270	including, without limitation, the costs of copying. The
271	association may charge up to 50 cents per page for copies made
272	on the association's photocopier. If the association does not
273	have a photocopy machine available where the records are kept,
274	or if the records requested to be copied exceed 25 pages in
275	length, the association may have copies made by an outside
276	vendor or association management company personnel and may
277	charge the actual cost of copying, including any reasonable
278	costs involving personnel fees and charges at an hourly rate for
279	employee time to cover administrative costs to the association.
280	The association shall maintain an adequate number of copies of
281	the recorded governing documents, to ensure their availability
282	to members and prospective members. Notwithstanding the
283	provisions of this paragraph, the following records shall not be
284	accessible to members or parcel owners:
285	1.  Any record protected by the lawyer-client privilege as
286	described in s. 90.502 and any record protected by the work-
287	product privilege, including, but not limited to, any record
288	prepared by an association attorney or prepared at the
289	attorney's express direction which reflects a mental impression,
290	conclusion, litigation strategy, or legal theory of the attorney
291	or the association and was prepared exclusively for civil or
292	criminal litigation or for adversarial administrative
293	proceedings or which was prepared in anticipation of imminent
294	civil or criminal litigation or imminent adversarial
295	administrative proceedings until the conclusion of the
296	litigation or adversarial administrative proceedings.
297	2.  Information obtained by an association in connection
298	with the approval of the lease, sale, or other transfer of a
299	parcel.
300	3.  Disciplinary, health, insurance, and personnel records
301	of the association's employees.
302	4.  Medical records of parcel owners or community
303	residents.
304	(6)  BUDGETS.--
305	(b)  In addition to annual operating expenses, the budget
306	may include reserve accounts for capital expenditures and
307	deferred maintenance for which the association is responsible.
308	To the extent that such reserve accounts are not created or
309	established pursuant to paragraph (d), funding of such reserves
310	shall be limited to the extent that the governing documents do
311	not limit increases in assessments, including reserves. If the
312	budget of the association includes reserve accounts created or
313	established pursuant to paragraph (d), such reserves shall be
314	determined, maintained, and waived in the manner provided in
315	this subsection. Once an association provides for reserve
316	accounts created or established pursuant to paragraph (d) in the
317	budget, the association shall thereafter determine, maintain,
318	and waive reserves in compliance with this subsection. Nothing
319	in this section precludes termination of a reserve account
320	established pursuant to this paragraph upon approval of a
321	majority of the voting interests of the association. Upon such
322	approval, the terminating reserve account shall be removed from
323	the budget.
324	(c)1.  If the budget of the association does not provide
325	for reserve accounts created or established pursuant to
326	paragraph (d) governed by this subsection and the association is
327	responsible for the repair and maintenance of capital
328	improvements that may result in a special assessment if reserves
329	are not provided, each financial report for the preceding fiscal
330	year required by subsection (7) shall contain the following
331	statement in conspicuous type: THE BUDGET OF THE ASSOCIATION
332	DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES
333	AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
334	OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE
335	PROVISIONS OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE
336	APPROVAL OF NOT LESS THAN A MAJORITY OF THE TOTAL VOTING
337	INTERESTS OF THE ASSOCIATION ATTAINED BY VOTE OF THE MEMBERS AT
338	A MEETING OR BY WRITTEN CONSENT EXECUTED BY A MAJORITY OF THE
339	VOTING INTERESTS.
340	2.  If the budget of the association does provide for
341	funding of accounts for deferred expenditures, including, but
342	not limited to, funds for capital expenditures and deferred
343	maintenance, but such accounts are not created or established
344	pursuant to paragraph (d), each financial report for the
345	preceding fiscal year required by subsection (7) shall also
346	contain the following statement in conspicuous type: THE BUDGET
347	OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
348	EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
349	DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
350	OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
351	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE PROVISIONS OF
352	SECTION 720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
353	SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN
354	THAT STATUTE, NOR ARE RESERVES CALCULATED IN ACCORDANCE WITH
355	THAT STATUTE.
356	(d)  An association shall be deemed to have provided for
357	reserve accounts when reserve accounts have been initially
358	established by the developer or when the membership of the
359	association affirmatively elects to provide for reserves. If
360	reserve accounts are not initially provided for by the
361	developer, the membership of the association may elect to do so
362	upon the affirmative approval of not less than a majority of the
363	total voting interests of the association. Such approval may be
364	attained by vote of the members at a duly called meeting of the
365	membership or upon a written consent executed by not less than a
366	majority of the total voting interests in the community. The
367	approval action of the membership shall state that reserve
368	accounts shall be provided for in the budget and shall designate
369	the components for which the reserve accounts are to be
370	established. Upon approval by the membership, the board of
371	directors shall provide for the required reserve accounts for
372	inclusion in the budget in the next fiscal year following the
373	approval and in each year thereafter. Once established as
374	provided in this subsection, the reserve accounts shall be
375	funded or maintained or shall have their funding waived in the
376	manner provided in paragraph (f).
377	(f)  After one or more Once a reserve account or reserve
378	accounts are established, the membership of the association,
379	upon a majority vote at a meeting at which a quorum is present,
380	may provide for no reserves or less reserves than required by
381	this section. If a meeting of the unit owners has been called to
382	determine whether to waive or reduce the funding of reserves and
383	no such result is achieved or a quorum is not present, the
384	reserves as included in the budget shall go into effect. After
385	the turnover, the developer may vote its voting interest to
386	waive or reduce the funding of reserves. Any vote taken pursuant
387	to this subsection to waive or reduce reserves shall be
388	applicable only to one budget year.
389	(g)  Funding formulas for reserves authorized by this
390	section shall be based on either a separate analysis of each of
391	the required assets or a pooled analysis of two or more of the
392	required assets.
393	1.  If the association maintains separate reserve accounts
394	for each of the required assets, the amount of the contribution
395	to each reserve account shall be the sum of the following two
396	calculations:
397	a.  The total amount necessary, if any, to bring a negative
398	component balance to zero.
399	b.  The total estimated deferred maintenance expense or
400	estimated replacement cost of the reserve component less the
401	estimated balance of the reserve component as of the beginning
402	of the period for which the budget will be in effect. The
403	remainder, if greater than zero, shall be divided by the
404	estimated remaining useful life of the component.
405
406	The formula may be adjusted each year for changes in estimates
407	and deferred maintenance performed during the year and may
408	include factors such as inflation and earnings on invested
409	funds.
410	2.  If the association maintains a pooled account of two or
411	more of the required reserve assets, the amount of the
412	contribution to the pooled reserve account as disclosed on the
413	proposed budget shall not be less than that required to ensure
414	that the balance on hand at the beginning of the period for
415	which the budget will go into effect plus the projected annual
416	cash inflows over the remaining estimated useful life of all of
417	the assets that make up the reserve pool are equal to or greater
418	than the projected annual cash outflows over the remaining
419	estimated useful lives of all of the assets that make up the
420	reserve pool, based on the current reserve analysis. The
421	projected annual cash inflows may include estimated earnings
422	from investment of principal and accounts receivable minus the
423	allowance for doubtful accounts. The reserve funding formula
424	shall not include any type of balloon payments.
425	(12)  COMPENSATION PROHIBITED.--A director, officer, or
426	committee member of the association may not receive directly or
427	indirectly any salary or compensation from the association for
428	performance of duties as a director, officer, or committee
429	member and such person may not in any other way benefit
430	financially from service to the association. This subsection
431	shall not be construed to preclude:
432	(a)  Participation by such person in a financial benefit
433	accruing to all or a significant number of members as a result
434	of actions lawfully taken by the board or a committee of which
435	he or she is a member, including, but not limited to, routine
436	maintenance, repair, or replacement of community assets;
437	(b)  Reimbursement for out-of-pocket expenses incurred by
438	such person on behalf of the association, subject to approval of
439	such reimbursement in accordance with procedures established by
440	the association's governing documents or, in the absence of such
441	procedures, in accordance with an approval process established
442	by the board;
443	(c)  Any recovery of insurance proceeds derived from a
444	policy of insurance maintained by the association for the
445	benefit of its members;
446	(d)  Any fee or compensation authorized in the governing
447	documents; or
448	(e)  Any fee or compensation authorized in advance by a
449	vote of a majority of the voting interests voting in person or
450	by proxy at the meeting of the members.
451	Section 8.  Subsection (2) of section 720.305, Florida
452	Statutes, are amended to read:
453	720.305  Obligations of members; remedies at law or in
454	equity; levy of fines and suspension of use rights; failure to
455	fill sufficient number of vacancies on board of directors to
456	constitute a quorum; appointment of receiver upon petition of
457	any member.--
458	(2)  If the governing documents so provide, an association
459	may suspend, for a reasonable period of time, the rights of a
460	member or a member's tenants, guests, or invitees, or both, to
461	use common areas and facilities and may levy reasonable fines,
462	not to exceed $100 per violation, against any member or any
463	tenant, guest, or invitee. A fine may be levied on the basis of
464	each day of a continuing violation, with a single notice and
465	opportunity for hearing, except that no such fine shall exceed
466	$1,000 in the aggregate unless otherwise provided in the
467	governing documents. A fine of less than $1,000 shall not become
468	a lien against a parcel. In any action to recover a fine, the
469	prevailing party is entitled to collect its reasonable
470	attorney's fees and costs from the nonprevailing party as
471	determined by the court.
472	(a)  A fine or suspension may not be imposed without notice
473	of at least 14 days to the person sought to be fined or
474	suspended and an opportunity for a hearing before a committee of
475	at least three members appointed by the board who are not
476	officers, directors, or employees of the association, or the
477	spouse, parent, child, brother, or sister of an officer,
478	director, or employee. If the committee, by majority vote, does
479	not approve a proposed fine or suspension, it may not be
480	imposed.
481	(b)  The requirements of this subsection do not apply to
482	the imposition of suspensions or fines upon any member because
483	of the failure of the member to pay assessments or other charges
484	when due if such action is authorized by the governing
485	documents.
486	(c)  Suspension of common-area-use rights shall not impair
487	the right of an owner or tenant of a parcel to have vehicular
488	and pedestrian ingress to and egress from the parcel, including,
489	but not limited to, the right to park.
490	Section 9.  Subsections (8) and (9) of section 720.306,
491	Florida Statutes, are amended to read:
492	720.306  Meetings of members; voting and election
493	procedures; amendments.--
494	(8)  PROXY VOTING.--The members have the right, unless
495	otherwise provided in this subsection or in the governing
496	documents, to vote in person or by proxy.
497	(a)  To be valid, a proxy must be dated, must state the
498	date, time, and place of the meeting for which it was given, and
499	must be signed by the authorized person who executed the proxy.
500	A proxy is effective only for the specific meeting for which it
501	was originally given, as the meeting may lawfully be adjourned
502	and reconvened from time to time, and automatically expires 90
503	days after the date of the meeting for which it was originally
504	given. A proxy is revocable at any time at the pleasure of the
505	person who executes it. If the proxy form expressly so provides,
506	any proxy holder may appoint, in writing, a substitute to act in
507	his or her place.
508	(b)  If the governing documents permit voting by secret
509	ballot by owners who are not in attendance at a meeting of the
510	members for the election of directors, such ballots shall be
511	placed in an inner envelope with no identifying markings and
512	mailed or delivered to the association in an outer envelope
513	bearing identifying information reflecting the name of the
514	owner, the lot or parcel for which the vote is being cast, and
515	the signature of the lot or parcel owner casting that ballot.
516	After the eligibility of the member to vote and confirmation
517	that no other ballot has been submitted for that lot or parcel
518	has been determined, the inner envelope shall be removed from
519	the outer envelope bearing the identification information and
520	placed with the ballots which were personally cast and shall be
521	opened when the ballots are counted. In the event that more than
522	one ballot is submitted for a lot or parcel, the ballots for
523	that lot or parcel shall be disqualified. Any vote by ballot
524	received after the closing of the balloting by a vote of the
525	membership shall not be considered.
526	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
527	(a)  Elections of directors must be conducted in accordance
528	with the procedures set forth in the governing documents of the
529	association. All members of the association shall be eligible to
530	serve on the board of directors, and a member may nominate
531	himself or herself as a candidate for the board at a meeting
532	where the election is to be held or, in the case of an election
533	process that allows voting by absentee ballot, in advance of the
534	balloting. Except as otherwise provided in the governing
535	documents, boards of directors must be elected by a plurality of
536	the votes cast by eligible voters. Any election dispute between
537	a member and an association must be submitted to mandatory
538	binding arbitration with the division. Such proceedings shall be
539	conducted in the manner provided by s. 718.1255 and the
540	procedural rules adopted by the division.
541	(b)  Within 30 days after being elected to the board of
542	directors, a new director shall certify in writing to the
543	secretary of the association that he or she has read the
544	association's declarations of covenants and restrictions,
545	articles of incorporation, bylaws, and current written policies
546	and that he or she will work to uphold each to the best of his
547	or her ability and will faithfully discharge his or her
548	fiduciary responsibility to the association's members. Failure
549	to timely file such statement shall automatically disqualify the
550	director from service on the association's board of directors.
551	The secretary shall cause the association to retain a director's
552	certification for inspection by the membership of the
553	association for a period of 5 years after a director's election.
554	Failure to have such certification on file shall not affect the
555	validity of any appropriate action.
556	Section 10.  Section 720.311, Florida Statutes is repealed.
557	Dispute resolution proceedings that have begun, subject to the
558	provisions of 720.311, Florida Statutes, and are still pending
559	as of the date of this repeal shall continue under that section.
560	Section 11.  Paragraph (a) of subsection (1) of section
561	720.401, Florida Statutes, is amended to read:
562	720.401  Prospective purchasers subject to association
563	membership requirement; disclosure required; covenants;
564	assessments; contract cancellation.--
565	(1)(a)  A prospective parcel owner in a community must be
566	presented a disclosure summary before executing the contract for
567	sale. The disclosure summary must be in a form substantially
568	similar to the following form:
569
570	DISCLOSURE SUMMARY
571	FOR
572	(NAME OF COMMUNITY)
573
574	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
575	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
576	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
577	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
578	COMMUNITY.
579	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
580	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
581	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
582	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
583	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
584	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
585	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
586	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
587	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
588	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
589	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD RESULT IN A
590	LIEN ON YOUR PROPERTY.
591	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
592	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
593	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
594	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
595	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
596	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
597	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
598	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
599	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
600	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
601	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
602	DOCUMENTS BEFORE PURCHASING PROPERTY.
603	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
604	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
605	PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED
606	FROM THE DEVELOPER.
607	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
608	AND/OR FEES) TO A COMMUNITY DEVELOPMENT DISTRICT FOR THE PURPOSE
609	OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT INFRASTRUCTURE
610	AND/OR OTHER IMPROVEMENTS.
611	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
612	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT BECAME
613	DUE UP TO THE TIME OF TRANSFER OF TITLE.
614
615	DATE:     PURCHASER:
616	PURCHASER:
617	The disclosure must be supplied by the developer, or by the
618	parcel owner if the sale is by an owner that is not the
619	developer. Any contract or agreement for sale shall refer to and
620	incorporate the disclosure summary and shall include, in
621	prominent language, a statement that the potential buyer should
622	not execute the contract or agreement until they have received
623	and read the disclosure summary required by this section.
624	Section 12.  Part IV of chapter 720, Florida Statutes, to
625	be entitled "Dispute Resolution" consisting of sections 720.501,
626	720.502, 720.503, 720.504, 720.505, 720.506, 720.507, 720.508,
627	720.509, and 720.510, is created to read:
628	720.501  Short title.--This part may be cited as the "Home
629	Court Advantage Dispute Resolution Act."
630	720.502  Legislative findings.--The Legislature finds that
631	alternative dispute resolution has made progress in reducing
632	court dockets and trials and in offering a more efficient, cost-
633	effective option to litigation.
634	720.503  Applicability.--
635	(1)  Unless otherwise provided in this part, before a
636	dispute described in this part between a homeowners' association
637	and a parcel owner or owners, or a dispute between parcel owners
638	within the same homeowners association, may be filed in court,
639	the dispute is subject to presuit mediation pursuant to s.
640	720.505 or presuit arbitration pursuant to s. 720.507, at the
641	option of the aggrieved party who initiates the first formal
642	action of alternative dispute resolution under this part. The
643	parties may mutually agree to participate in both presuit
644	mediation and by presuit arbitration prior to suit being filed
645	by either party.
646	(2)  Unless otherwise provided in this part, the mediation
647	and arbitration provisions of this part are limited to disputes
648	between an association and a parcel owner or owners, or between
649	parcel owners, regarding the use of or changes to the parcel or
650	the common areas under the governing documents or other disputes
651	involving violations of the recorded declaration of covenants or
652	other governing documents; disputes arising concerning
653	enforcement of the governing documents or any amendments
654	thereto; and disputes involving access to the official records
655	of the association. A dispute concerning title to any parcel or
656	common area; interpretation or enforcement of any warranty; the
657	levy of a fee or assessment; the collection of an assessment
658	levied against a party; the eviction or other removal of a
659	tenant from a parcel; alleged breaches of fiduciary duty by one
660	or more directors; or any action to collect mortgage
661	indebtedness or to foreclosure a mortgage shall not be subject
662	to the provisions of this part.
663	(3)  All disputes arising after the effective date of this
664	part involving the election of the board of directors for an
665	association or the recall of any member of the board or officer
666	of the association shall not be eligible for presuit mediation
667	under s. 720.505, but shall be subject to the provisions
668	concerning presuit arbitration under s. 720.507.
669	(4)  In any dispute subject to presuit mediation or presuit
670	arbitration under this part for which emergency relief is
671	required, a motion for temporary injunctive relief may be filed
672	with the court without first complying with the presuit
673	mediation or presuit arbitration requirements of this part.
674	After any issues regarding emergency or temporary relief are
675	resolved, the court may refer the parties to a mediation program
676	administered by the courts or require mediation or arbitration
677	under this part.
678	(5)  The mailing of a statutory notice of presuit mediation
679	or presuit arbitration as provided in this part shall toll the
680	applicable statute of limitations during the pendency of the
681	mediation or arbitration and for a period of 30 days following
682	the conclusion of either proceeding. The 30-day period shall
683	start upon the filing of the mediator's notice of impasse or the
684	arbitrator's written arbitration award. If the parties mutually
685	agree to participate in both presuit mediation and presuit
686	arbitration under this part, then the tolling of the applicable
687	statute of limitations for each such alternative dispute
688	resolution proceeding shall be consecutive.
689	720.504  Notice of violation.--Prior to giving the
690	statutory notice to proceed under presuit medication or presuit
691	arbitration under this part, the aggrieved association or parcel
692	owner shall first provide written notice of the alleged
693	violation to the alleged violator in the manner provided by this
694	section.
695	(1)  The notice of violation shall be delivered to the
696	alleged violator by certified mail, return receipt requested, or
697	hand delivered. The person making delivery shall file with their
698	notice of mediation either the proof of receipt of mailing or an
699	affidavit stating the date and time of the delivery of the
700	notice of violation. If the notice is delivered by certified
701	mail, return receipt requested and the alleged violator fails or
702	refuses to accept delivery, notice shall be considered properly
703	delivered for purposes of this section on the date of the first
704	attempted delivery.
705	(2)  The notice of violation shall state with specificity
706	the nature of the alleged violation, including the date, time,
707	and location of each violation and the action requested to abate
708	or otherwise correct the violation. The notice shall also
709	include the text of any provision in the governing documents,
710	including the rules and regulations, of the association that
711	have allegedly been violated.
712	(3)  Unless the parties otherwise agree in writing to a
713	longer time period for abatement, the party receiving the notice
714	of violation shall have 10 days from the date of receipt of
715	notice to correct the violation. If the alleged violation has
716	not been abated within or otherwise corrected within the 10-day
717	period, the party alleging the violation may proceed under this
718	part at any time thereafter within the applicable statute of
719	limitations.
720	(4)  A copy of the notice and the text of the provision in
721	the governing documents or the rules and regulations of the
722	association that has allegedly been violated, along with proof
723	of service of the notice of violation and a copy of any written
724	responses received from the alleged violator, shall be included
725	as an exhibit to any demand for mediation or arbitration under
726	this part.
727	720.505  Presuit mediation.--
728	(1)  Disputes between an association and a parcel owner or
729	owners and between parcel owners must be submitted to presuit
730	mediation before the dispute may be filed in court, or at the
731	election of the party initiating the presuit procedures such
732	dispute may be submitted to presuit arbitration pursuant to s.
733	720.507, before the dispute may be filed in court. An aggrieved
734	party who elects to utilize the presuit mediation procedure
735	under this section shall serve on the responding party a written
736	notice of presuit mediation in substantially the following form:
737
738	STATUTORY NOTICE OF PRESUIT MEDIATION
739
740	The alleged aggrieved party, ____________________,
741	hereby demands that ____________________, as the
742	responding party, engage in mandatory presuit
743	mediation in connection with a dispute(s) with you,
744	which by statute are of a type that are subject to
745	presuit mediation:
746
747	Attached is a copy of the prior notice of violation
748	which details the specific nature of the dispute(s)to
749	be mediated and the authority supporting a finding of
750	a violation as to each dispute, including, but not
751	limited to, the applicable provisions of the governing
752	documents of the association believed to apply to the
753	dispute between the parties, and a copy of the notice
754	you received or refused and copies of any written
755	response(s) received from you about this dispute.
756
757	Pursuant to part IV of chapter 720, Florida Statutes,
758	this demand to resolve the dispute through presuit
759	mediation is required before a lawsuit can be filed
760	concerning the dispute. Pursuant to Florida Statutes,
761	the parties are required to engage in presuit
762	mediation with a neutral third-party mediator in order
763	to attempt to resolve this dispute without court
764	action, and the aggrieved party demands that you
765	participate in this process. Unless you respond to
766	this notice by filing with the aggrieved party a
767	notice of opting out and demand for arbitration under
768	s. 720.506, Florida Statutes, your failure to
769	participate in the mediation process may result in a
770	lawsuit being filed in court against you without
771	further notice.
772
773	The process of mediation involves a supervised
774	negotiation process in which a trained, neutral third-
775	party mediator meets with both parties and assists
776	them in exploring possible opportunities for resolving
777	part or all of the dispute. By agreeing to participate
778	in presuit mediation, you are not bound in any way to
779	change your position. Furthermore, the mediator has no
780	authority to make any decisions in this matter or to
781	determine who is right or wrong and merely acts as a
782	facilitator to ensure that each party understands the
783	position of the other party and that all options for
784	reasonable settlement are fully explored.
785
786	If an agreement is reached, it shall be reduced to
787	writing and become a binding and enforceable contract
788	between the parties. A resolution of one or more
789	disputes in this fashion avoids the need to litigate
790	these issues in court. The failure to reach an
791	agreement, or the failure of a party to participate in
792	the process, results in the mediator declaring an
793	impasse in the mediation, after which the aggrieved
794	party may proceed to file a law suit on all
795	outstanding, unsettled disputes. If you have failed or
796	refused to participate in the entire mediation
797	process, you will not be entitled to recover
798	attorney's fees if you prevail in a subsequent court
799	proceeding involving the same dispute.
800
801	The aggrieved party has selected from a list of
802	eligible qualified mediators at least five certified
803	mediators who the aggrieved party believes to be
804	neutral and qualified to mediate the dispute. You have
805	the right to select any one of these mediators. The
806	fact that one party may be familiar with one or more
807	of the listed mediators does not mean that the
808	mediator cannot act as a neutral and impartial
809	facilitator. The names of the mediators that the
810	aggrieved party hereby submits to you from whom you
811	may choose one, and their current addresses, telephone
812	numbers and hourly rates, are as follows:
813
814	(List the names, addresses, telephone numbers, and
815	hourly rates of the mediators. Other pertinent
816	information about the background of the mediators may
817	be included as an attachment.)
818
819	You may contact the offices of these mediators to
820	confirm that each of the above listed mediators will
821	be neutral and will not show any favoritism toward
822	either party. Unless otherwise agreed to by the
823	parties, part IV of chapter 720, Florida Statutes,
824	requires that the parties share the costs of presuit
825	mediation equally, including the fee charged by the
826	mediator. An average mediation may require 3 to 4
827	hours of the mediator's time, including some
828	preparation time, and the parties would need to
829	equally share the mediator's fees as well as be
830	responsible for all of their own attorney's fees if
831	they choose to employ an attorney in connection with
832	the mediation. However, use of an attorney is not
833	required and is at the option of each party. The
834	mediators may require the advance payment of some or
835	all of the anticipated fees. The aggrieved party
836	hereby agrees to pay or prepay one-half of the
837	selected mediator's estimated fees and to forward this
838	amount or such other reasonable advance deposits as
839	the mediator requires for this purpose upon the
840	selection of the mediator. Any funds deposited will be
841	returned to you if these funds are in excess of your
842	share of the mediator fees incurred.
843
844	To begin your participation in presuit mediation to
845	try to resolve the dispute with you and avoid further
846	legal action, please sign below and clearly indicate
847	which mediator is acceptable to you from the five
848	mediators listed by the aggrieved party above.
849
850	You must respond in writing to this statutory notice
851	of presuit mediation within 20 days. In your response
852	you must provide a listing of at least three dates and
853	times in which you are available to participate in the
854	mediation that are within 90 days after the postmarked
855	date of the mailing of this notice of presuit
856	mediation or within 90 days after the date you were
857	served with a copy of this notice. The aggrieved party
858	will then ask the mediator to schedule a mutually
859	convenient time and place for the mediation conference
860	to be held. If you do not provide a list of available
861	dates and times, the mediator is authorized to
862	schedule a mediation conference without taking your
863	schedule and convenience into consideration. In no
864	event shall the mediation conference be later than 90
865	days after the notice of presuit mediation was first
866	served unless all parties mutually agree otherwise.
867	in the event that you fail to respond within 20 days
868	after the date of this notice, fail to provide the
869	mediator with dates and times in which you are
870	available for the mediation conference, fail to agree
871	to at least one of the mediators that the aggrieved
872	party has listed, fail to pay or prepay to the
873	mediator one-half of the costs involved, or fail to
874	appear and participate at the scheduled mediation, the
875	aggrieved party will be authorized to proceed with the
876	filing of a lawsuit against you without further
877	notice. In any subsequent court action, the aggrieved
878	party may seek an award of reasonable attorney's fees
879	and costs incurred in attempting to obtain mediation.
880
881	Please give this matter your immediate attention. By
882	law, your response must be mailed by certified, first-
883	class mail, return receipt requested, to the aggrieved
884	party listed above at the address shown on this notice
885	and postmarked no more than 20 days after the date of
886	the postmarked date for this notice or within 20 days
887	after the date upon which you were served with a copy
888	of this notice.
889
890	________________________
891	Signature of aggrieved party
892
893	______________________
894	Printed name of aggrieved party
895
896	Responding party: your signature below indicates your
897	acceptance of the agreement to mediate.
898
899	AGREEMENT TO MEDIATE
900
901	The undersigned hereby agrees to participate in
902	presuit mediation and agrees to attend a mediation
903	conducted by the following mediator(s) listed below as
904	acceptable to mediate this dispute:
905
906	(List one acceptable mediator from those listed by the
907	aggrieved party.)
908
909	The undersigned hereby represents that he or she can
910	attend and participate in the presuit mediation at the
911	following dates and times:
912
913	(List at least three available dates and times within
914	the 90-day time limit described above.)
915
916	I/We further agree to pay or prepay one-half of the
917	mediator's fees and to forward such advance deposits
918	as the mediator may require for this purpose.
919
920	______________________________
921	Signature of responding party #1
922	______________________________
923	Telephone contact information
924	______________________________
925	Signature and telephone contact information of
926	responding party #2, if applicable. If the property is
927	owned by more than one person, all parcel owners or
928	unit owners who are subject of the dispute must sign
929	or have a person acting under authority of a power of
930	attorney sign.
931
932	(2)(a)  Service of the notice of presuit mediation shall be
933	effected either by personal service, as provided in chapter 48,
934	or by certified mail, return receipt requested, in a letter in
935	substantial conformity with the form provided in subsection (1),
936	with an additional copy being sent by regular first-class mail,
937	to the address of the responding party as it last appears on the
938	books and records of the association or if not available, then
939	as it last appears in the official records of the county
940	property appraiser where the parcel in dispute is located. The
941	responding party has either 20 days after the postmarked date of
942	the mailing of the statutory notice or 20 days after the date
943	the responding party is served with a copy of the notice to
944	serve a written response to the aggrieved party. The response
945	shall be served by certified mail, return receipt requested,
946	with an additional copy being sent by regular first-class mail,
947	to the address shown on the statutory notice. The date of the
948	postmark on the envelope for the response shall constitute the
949	date that the response is served. Once the parties have agreed
950	on a mediator, the mediator may schedule or reschedule the
951	mediation for a date and time mutually convenient to the parties
952	within 90 days after the date of service of the statutory
953	notice. After such 90-day period, the mediator may reschedule
954	the mediation only upon the mutual written agreement of all the
955	parties.
956	(b)  The parties shall share the costs of presuit mediation
957	equally, including the fee charged by the mediator, if any,
958	unless the parties agree otherwise, and the mediator may require
959	advance payment of his or her reasonable fees and costs. Each
960	party shall be responsible for their own attorney's fees, if a
961	party chooses to be represented by an attorney at the mediation.
962	(c)  The party responding to the aggrieved party may either
963	provide a notice of opting out pursuant to s. 720.506, and
964	demand arbitration, or the responding party shall sign the
965	agreement to mediate included in the notice of presuit mediation
966	and clearly indicate the name of the mediator who is acceptable
967	from the five names provided by the aggrieved party. The
968	responding party must provide in their response a list of dates
969	and times in which the responding party is available to
970	participate in the mediation within 90 days after the date the
971	responding party was served, either by process server or by
972	certified mail, with the statutory notice of presuit mediation.
973	(d)  The mediator who has been selected and agreed to
974	mediate must schedule the mediation conference at a mutually
975	convenient time and place within that 90-day period. However, if
976	the responding party does not provide a list of available dates
977	and times, the mediator is authorized to schedule a mediation
978	conference without taking the responding party's schedule and
979	convenience into consideration. Within 10 days after the
980	designation of the mediator, the mediator shall coordinate with
981	the parties and notify the parties in writing of the date, time,
982	and place of the mediation conference.
983	(e)  The mediation conference must be held on the scheduled
984	date and may be rescheduled if a rescheduled date is approved by
985	the mediator. However, in no event shall the mediation be held
986	later than 90 days after the notice of presuit mediation was
987	first served, unless all parties mutually agree in writing
988	otherwise. If the presuit mediation is not completed within the
989	required time limits the mediator shall declare an impasse
990	unless the mediation date is extended by mutual written
991	agreement by all parties and approved by the mediator.
992	(f)  If the responding party fails to respond within 30
993	days after the date of service of the statutory notice of
994	presuit mediation, fails to agree either to at least one of the
995	mediators listed by the aggrieved party in the notice, fails to
996	pay or prepay to the mediator one-half of the costs of the
997	mediator, or fails to appear and participate at the scheduled
998	mediation, the aggrieved party shall be authorized to proceed
999	with the filing of a lawsuit without further notice.
1000	(g)1.  Failure of any party to respond to the statutory
1001	notice of presuit mediation within 20 days, failure to agree
1002	upon a mediator, failure to provide a listing of dates and times
1003	in which the responding party is available to participate in the
1004	mediation within 90 days after the date the responding party was
1005	served with the statutory notice of presuit mediation, failure
1006	to make payment of fees and costs within the time established by
1007	the mediator, or failure to appear for a scheduled mediation
1008	session without the approval of the mediator, shall, in each
1009	instance, constitute a failure or refusal to participate in the
1010	mediation process and shall operate as an impasse in the presuit
1011	mediation by such party, entitling the other party to file a
1012	lawsuit in court and to seek an award of the costs and
1013	attorney's fees associated with the mediation.
1014	2.  Persons who fail or refuse to participate in the entire
1015	mediation process may not recover attorney's fees and costs in
1016	subsequent litigation relating to the same dispute between the
1017	same parties. If any presuit mediation session cannot be
1018	scheduled and conducted within 90 days after the offer to
1019	participate in mediation was filed, through no fault of either
1020	party, then an impasse shall be deemed to have occurred unless
1021	the parties mutually agree in writing to extend this deadline.
1022	In the event of such impasse, each party will be responsible for
1023	its own costs and attorney's fees and one-half of any mediator
1024	fees and filing fees, and either party may file a lawsuit in
1025	court regarding the dispute.
1026	720.506  Opt out of presuit mediation.--A party served with
1027	a notice of presuit mediation under s. 720.505, may opt out of
1028	presuit mediation and demand that the dispute proceed under
1029	nonbinding arbitration in the following manner provided in this
1030	section:
1031	(1)  In lieu of a response to the notice of presuit
1032	mediation as required under s. 720.505, the responding party may
1033	serve upon the aggrieved party in the same manner as the
1034	response to a notice for presuit mediation under s. 720.505, a
1035	notice of opting out of mediation and demand that the dispute
1036	instead proceed to presuit arbitration under s. 720.507.
1037	(2)  Where a party elects to opt out of presuit mediation
1038	in favor of nonbinding arbitration, the aggrieved party shall
1039	not be required to comply with the requirements of s. 720.505.
1040	(3)  Except as otherwise provided in this part, the choice
1041	of which presuit alternative dispute resolution procedure is
1042	utilized shall be at the election of the aggrieved party who
1043	first initiated such proceeding after complying with the
1044	provisions of s. 720.504.
1045	720.507  Presuit arbitration.--
1046	(1)  Disputes between an association and a parcel owner or
1047	owners and disputes between parcel owners are subject to a
1048	demand for presuit arbitration pursuant to s. 720.507, before
1049	the dispute may be filed in court. A party who elects to utilize
1050	the presuit arbitration procedure under this part shall serve on
1051	the responding party a written notice of presuit arbitration in
1052	substantially the following form:
1053
1054	STATUTORY NOTICE OF PRESUIT ARBITRATION
1055
1056	The alleged aggrieved party, ____________________,
1057	hereby demands that ____________________, as the
1058	responding party, engage in mandatory presuit
1059	arbitration in connection with the following
1060	dispute(s) with you, which by statute are of a type
1061	that are subject to presuit arbitration:
1062
1063	(List specific nature of the dispute or disputes to be
1064	arbitrated and the authority supporting a finding of a
1065	violation as to each dispute, including, but not
1066	limited to, all applicable provisions of the governing
1067	documents believed to apply to the dispute between the
1068	parties.)
1069
1070	Pursuant to part IV of chapter 720, Florida Statutes,
1071	this demand to resolve the dispute through presuit
1072	arbitration is required before a lawsuit can be filed
1073	concerning the dispute. Pursuant to Florida Statutes,
1074	the parties are required to engage in presuit
1075	arbitration with a neutral third-party arbitrator in
1076	order to attempt to resolve this dispute without court
1077	action, and the aggrieved party demands that you
1078	participate in this process. If you fail to
1079	participate in the arbitration process, a lawsuit may
1080	be brought against you in court without further
1081	warning.
1082
1083	The process of arbitration involves a neutral third
1084	person who considers the law and facts presented by
1085	the parties and renders a written decision called an
1086	"arbitration award." Pursuant to s. 720.507, Florida
1087	Statutes, the arbitration award shall be final unless
1088	a lawsuit is filed in a court of competent
1089	jurisdiction for the judicial circuit in which the
1090	parcel(s) governed by the homeowners' association
1091	is/are located within 30 days after the date that the
1092	arbitration award.
1093
1094	If a settlement agreement is reached before the
1095	arbitration award, it shall be reduced to writing and
1096	become a binding and enforceable contract of the
1097	parties. A resolution of one or more disputes in this
1098	fashion avoids the need to arbitrate these issues or
1099	to litigate these issues in court and shall be the
1100	same as a settlement agreement reached between the
1101	parties under s. 720.505, Florida Statutes. The
1102	failure of a party to participate in the arbitration
1103	process may result in the arbitrator issuing an
1104	arbitration award by default in the arbitration. If
1105	you have failed or refused to participate in the
1106	entire arbitration process, you will not be entitled
1107	to recover attorney's fees, even if you prevail in a
1108	subsequent court proceeding involving the same dispute
1109	between the same parties.
1110
1111	The aggrieved party has selected at least five
1112	arbitrators who the aggrieved party believes to be
1113	neutral and qualified to arbitrate the dispute. You
1114	have the right to select any one of the arbitrators.
1115	The fact that one party may be familiar with one or
1116	more of the listed arbitrators does not mean that the
1117	arbitrator cannot act as a neutral and impartial
1118	arbitrator. Any arbitrator who cannot act in this
1119	capacity is required ethically to decline to accept
1120	engagement. The names of the five arbitrators that the
1121	aggrieved party has chosen from which you may select
1122	one, and their current addresses, telephone numbers,
1123	and hourly rates, are as follows:
1124
1125	(List the names, addresses, telephone numbers, and
1126	hourly rates of at least five arbitrators.)
1127
1128	You may contact the offices of these arbitrators to
1129	confirm that the listed arbitrators will be neutral
1130	and will not show any favoritism toward either party.
1131
1132	Unless otherwise agreed to by the parties, part IV of
1133	chapter 720, Florida Statutes, requires that the
1134	parties share the costs of presuit arbitration
1135	equally, including the fee charged by the arbitrator.
1136	the parties shall be responsible for their own
1137	attorney's fees if they choose to employ an attorney
1138	in connection with the arbitration. However, use of an
1139	attorney to represent you for the arbitration is not
1140	required. The arbitrator selected may require the
1141	advance payment of some or all of the anticipated
1142	fees. The aggrieved party hereby agrees to pay or
1143	prepay one-half of the selected arbitrator's estimated
1144	fees and to forward this amount or such other
1145	reasonable advance deposits as the arbitrator who is
1146	selected requires for this purpose. Any funds
1147	deposited will be returned to you if these funds are
1148	in excess of your share of the fees incurred.
1149
1150	Please sign the agreement to arbitrate below and
1151	clearly indicate the name of the arbitrator who is
1152	acceptable to you from the names listed by the
1153	aggrieved party.
1154
1155	You must respond in writing to this statutory notice
1156	within 20 days after the date that the notice of
1157	presuit arbitration was either personally served on
1158	you or 20 days after the postmarked date that this
1159	notice of presuit arbitration was sent to you by
1160	certified mail. You must also provide a list of at
1161	least three dates and times in which you are available
1162	to participate in the arbitration that are within 90
1163	days after either the date you were personally served
1164	or 90 days after the postmarked date of the certified
1165	mailing of this statutory notice of presuit
1166	arbitration. A copy of this notice and your response
1167	will be provided by the aggrieved party to the
1168	arbitrator selected and the arbitrator will schedule a
1169	mutually convenient time and place for the arbitration
1170	conference to be held. If you do not provide a list of
1171	available dates and times, the arbitrator is
1172	authorized to schedule an arbitration conference
1173	without taking your schedule and convenience into
1174	consideration. The arbitration conference must be held
1175	on the scheduled date, or any rescheduled date
1176	approved by the arbitrator. In no event shall the
1177	arbitration conference be later than 90 days after
1178	notice of the presuit arbitration was first served,
1179	unless all parties mutually agree in writing
1180	otherwise. If the arbitration is not completed within
1181	the required time limits, the arbitrator shall issue
1182	an arbitration award, unless the hearing is extended
1183	by mutual written agreement of the parties and
1184	approved by the arbitrator. In the event that you fail
1185	to respond within 20 days after the date you were
1186	served with a copy of this notice, fail to provide the
1187	arbitrator with dates and times in which you are
1188	available for the arbitration conference, fail to
1189	agree either to one of the arbitrators that the
1190	aggrieved party has named, fail to pay or prepay to
1191	the arbitrator one-half of the costs involved as
1192	required, or fail to appear and participate at the
1193	scheduled arbitration conference, the aggrieved party
1194	may request the arbitrator to issue an arbitration
1195	award. In the subsequent court action, the aggrieved
1196	party shall be entitled to recover an award of
1197	reasonable attorney's fees and costs, including any
1198	fees paid to the arbitrator, incurred in obtaining an
1199	arbitration award pursuant to s. 720.507, Florida
1200	Statutes.
1201
1202	Please give this matter your immediate attention. By
1203	law, your response must be postmarked and mailed by
1204	certified, first-class mail, return receipt requested,
1205	to the address shown on this notice of presuit
1206	arbitration.
1207
1208	_________________________
1209	Signature of aggrieved party
1210
1211	______________________
1212	Printed name of aggrieved party
1213
1214	Responding party: your signature below indicates your
1215	acceptance of the agreement to arbitrate.
1216
1217	AGREEMENT TO ARBITRATE
1218
1219	The undersigned hereby agrees to participate in
1220	presuit arbitration and agrees to attend an
1221	arbitration conducted by the following arbitrator
1222	listed below as someone who would be acceptable to
1223	arbitrate this dispute:
1224
1225	(In your response either select the name of one
1226	arbitrator that is acceptable to you from those
1227	arbitrators listed by the aggrieved party.)
1228
1229	The undersigned hereby represents that he or she is
1230	available and able to attend and participate in the
1231	presuit arbitration conference at the following dates
1232	and times:
1233
1234	(List all available dates and times, of which there
1235	must be at least three, within 90 days after the date
1236	on which you were served, either by process server or
1237	by certified mail, with the notice of presuit
1238	arbitration.)
1239
1240	I/We further agree to pay or prepay one-half of the
1241	arbitrator's fees and to forward such advance deposits
1242	as the arbitrator may require for this purpose.
1243
1244	______________________________
1245	Signature of responding party #1
1246	______________________________
1247	Telephone contact information
1248	______________________________
1249	Signature and telephone contact information of
1250	responding party #2, if applicable. If the property is
1251	owned by more than one person, all owners must sign,
1252	or a person may sign who is acting under authority of
1253	a valid power of attorney granted by an owner.
1254
1255	(2)(a)  Service of the statutory notice of presuit
1256	arbitration shall be effected either by personal service, as
1257	provided in chapter 48, or by certified mail, return receipt
1258	requested, in a letter in substantial conformity with the form
1259	provided in subsection (1), with an additional copy being sent
1260	by regular first-class mail, to the address of the responding
1261	party as it last appears on the books and records of the
1262	association, or if not available, the last address as it appears
1263	on the official records of the county property appraiser for the
1264	county in which the property is situated that is subject to the
1265	association documents. The responding party has 20 days after
1266	the postmarked date of the certified mailing of the statutory
1267	notice of presuit arbitration or 20 days after the date the
1268	responding party is personally served with the statutory notice
1269	of presuit arbitration by to serve a written response to the
1270	aggrieved party. The response shall be served by certified mail,
1271	return receipt requested, with an additional copy being sent by
1272	regular first-class mail, to the address shown on the statutory
1273	notice of presuit arbitration. The postmarked date on the
1274	envelope of the response shall constitute the date the response
1275	was served.
1276	(b)  The parties shall share the costs of presuit
1277	arbitration equally, including the fee charged by the
1278	arbitrator, if any, unless the parties agree otherwise, and the
1279	arbitrator may require advance payment of his or her reasonable
1280	fees and costs. Each party shall be responsible for all of their
1281	own attorney's fees if a party chooses to be represented by an
1282	attorney for the arbitration proceedings.
1283	(c)1.  The party responding to the aggrieved party must
1284	sign the agreement to arbitrate included in the notice of
1285	presuit arbitration and clearly indicate the name of the
1286	arbitrator who is acceptable of those arbitrators listed by the
1287	aggrieved party. The responding party must provide a list of at
1288	least three dates and times in which the responding party is
1289	available to participate in the arbitration conference within 90
1290	days after the date the responding party was served with the
1291	statutory notice of presuit arbitration.
1292	2.  The arbitrator must schedule the arbitration conference
1293	at a mutually convenient time and place, but if the responding
1294	party does not provide a list of available dates and times, the
1295	arbitrator is authorized to schedule an arbitration conference
1296	without taking the responding party's schedule and convenience
1297	into consideration. Within 10 days after the designation of the
1298	arbitrator, the arbitrator shall notify the parties in writing
1299	of the date, time, and place of the arbitration conference.
1300	3.  The arbitration conference must be held on the
1301	scheduled date and may be rescheduled if approved by the
1302	arbitrator. However, in no event shall the arbitration hearing
1303	be later than 90 days following the notice of presuit
1304	arbitration was first served, unless all parties mutually agree
1305	in writing otherwise. If the arbitration hearing is not
1306	completed within the required time limits, the arbitrator may
1307	issue an arbitration award unless the time for the hearing is
1308	extended as provided herein. If the responding party fails to
1309	respond within 20 days after the date of statutory notice of
1310	presuit arbitration, fails to agree to at least one of the
1311	arbitrators that have been listed by the aggrieved party in the
1312	presuit notice of arbitration, fails to pay or prepay to the
1313	arbitrator one-half of the costs involved, or fails to appear
1314	and participate at the scheduled arbitration, the aggrieved
1315	party is authorized to proceed with a request that the
1316	arbitrator issue an arbitration award.
1317	(d)1.  Failure of any party to respond to the statutory
1318	notice of presuit arbitration within 20 days, failure to either
1319	select one of the five arbitrators listed by the aggrieved
1320	party, failure to provide a listing of dates and times in which
1321	the responding party is available to participate in the
1322	arbitration conference within 90 days after the date of the
1323	responding party being served with the statutory notice of
1324	presuit arbitration, failure to make payment of fees and costs
1325	as required within the time established by the arbitrator, or
1326	the failure to appear for an arbitration conference without the
1327	approval of the arbitrator, shall entitle the other party to
1328	request the arbitrator to enter an arbitration award, including
1329	an award of the reasonable costs and attorney's fees associated
1330	with the arbitration.
1331	2.  Persons who fail or refuse to participate in the entire
1332	arbitration process may not recover attorney's fees and costs in
1333	any subsequent litigation proceeding relating to the same
1334	dispute involving the same parties.
1335	(3)(a)  In an arbitration proceeding, the arbitrator may
1336	not consider any unsuccessful mediation of the dispute.
1337	(b)  An arbitrator in a proceeding initiated pursuant to
1338	the provisions of this part may shorten the time for discovery
1339	or otherwise limit discovery in a manner consistent with the
1340	policy goals of this part to reduce the time and expense of
1341	litigating homeowners' association disputes initiated pursuant
1342	to this chapter and promoting an expeditious alternative dispute
1343	resolution procedure for parties to such actions.
1344	(4)  At the request of any party to the arbitration, the
1345	arbitrator may issue subpoenas for the attendance of witnesses
1346	and the production of books, records, documents, and other
1347	evidence, and any party on whose behalf a subpoena is issued may
1348	apply to the court for orders compelling such attendance and
1349	production. Subpoenas shall be served and are enforceable in the
1350	manner provided by the Florida Rules of Civil Procedure.
1351	Discovery may, at the discretion of the arbitrator, be permitted
1352	in the manner provided by the Florida Rules of Civil Procedure.
1353	(5)  The final arbitration award shall be sent to the
1354	parties in writing no later than 30 days after the date of the
1355	arbitration hearing, absent extraordinary circumstances
1356	necessitating a later filing the reasons for which shall be
1357	stated in the final award if filed more than 30 days after the
1358	date of the final session of the arbitration conference. An
1359	agreed arbitration award is final in those disputes in which the
1360	parties have mutually agreed to be bound. An arbitration award
1361	decided by the arbitrator is final unless a lawsuit seeking a
1362	trial de novo is filed in a court of competent jurisdiction
1363	within 30 days after the date of the arbitration award. The
1364	right to file for a trial de novo entitles the parties to file a
1365	complaint in the appropriate trial court for a judicial
1366	resolution of the dispute. The prevailing party in an
1367	arbitration proceeding shall be awarded the costs of the
1368	arbitration and reasonable attorney's fees in an amount
1369	determined by the arbitrator.
1370	(6)  The party filing a motion for a trial de novo shall be
1371	assessed the other party's arbitration costs, court costs, and
1372	other reasonable costs, including attorney's fees, investigation
1373	expenses, and expenses for expert or other testimony or evidence
1374	incurred after the arbitration hearing if the judgment upon the
1375	trial de novo is not more favorable than the final arbitration
1376	award.
1377	720.508  Rules of procedure.--
1378	(1)  Presuit mediation and presuit arbitration proceedings
1379	under this part must be conducted in accordance with the
1380	applicable Florida Rules of Civil Procedure and rules governing
1381	mediations and arbitrations under chapter 44, except this part
1382	shall be controlling to the extent of any conflict with other
1383	applicable rules or statutes. The arbitrator can shorten any
1384	applicable time period and otherwise limit the scope of
1385	discovery on request of the parties or within the discretion of
1386	the arbitrator exercised consistent with the purpose and
1387	objective of reducing the expense and expeditiously concluding
1388	proceedings under this part.
1389	(2)  Presuit mediation proceedings under s. 720.505 are
1390	privileged and confidential to the same extent as court-ordered
1391	mediation under chapter 44. An arbitrator or judge may not
1392	consider any information or evidence arising from the presuit
1393	mediation proceeding except in a proceeding to impose sanctions
1394	for failure to attend a presuit mediation session or to enforce
1395	a mediated settlement agreement.
1396	(3)  Persons who are not parties to the dispute may not
1397	attend the presuit mediation conference without consent of all
1398	parties, with the exception of counsel for the parties and a
1399	corporate representative designated by the association. Presuit
1400	mediations under this part are not a board meeting for purposes
1401	of notice and participation set forth in this chapter.
1402	(4)  Attendance at a mediation conference by the board of
1403	directors shall not require notice or participation by nonboard
1404	members as otherwise required by this chapter for meetings of
1405	the board.
1406	(5)  Settlement agreements resulting from a mediation or
1407	arbitration proceeding do not have precedential value in
1408	proceedings involving parties other than those participating in
1409	the mediation or arbitration.
1410	(6)  Arbitration awards by an arbitrator shall have
1411	precedential value in other proceedings involving the same
1412	association or with respect to the same parcel owner.
1413	720.509  Mediators and arbitrators; qualifications and
1414	registration.--A person is authorized to conduct mediation or
1415	arbitration under this part if he or she has been certified as a
1416	circuit court civil mediator pursuant to the requirements
1417	adopted pursuant to s. 44.106, is a member in good standing with
1418	The Florida Bar, and otherwise meets all other requirements
1419	imposed by chapter 44.
1420	720.510  Enforcement of mediation settlement agreement or
1421	arbitration award.--
1422	(1)  A mediation settlement agreement may be enforced
1423	through the county or circuit court, as applicable, and any
1424	costs and attorney's fees incurred in the enforcement of a
1425	settlement agreement reached at mediation shall be awarded to
1426	the prevailing party in any enforcement action.
1427	(2)  Any party to an arbitration proceeding may enforce an
1428	arbitration award by filing a petition in a court of competent
1429	jurisdiction in which the homeowners' association is located.
1430	The prevailing party in such proceeding shall be awarded
1431	reasonable attorney's fees and costs incurred in such
1432	proceeding.
1433	(3)  If a complaint is filed seeking a trial de novo, the
1434	arbitration award shall be stayed and a petition to enforce the
1435	award may not be granted. Such award, however, shall be
1436	admissible in the court proceeding seeking a trial de novo.
1437	Section 13.  The Department of Health shall apply for and
1438	implement, if awarded, a federal grant for swimming pool and spa
1439	safety standards education and enforcement under the State
1440	Swimming Pool Safety Grant Program as established in 15 U.S.C.
1441	s. 8004. To ensure the state's eligibility for the grant award,
1442	the Department of Health, in coordination with the Department of
1443	Community Affairs and the Florida Building Commission, shall
1444	assess the Florida Statutes and the Florida Building Code to
1445	determine if additional changes are necessary to ensure
1446	compliance with federal standards regarding swimming pool and
1447	spa safety. The Department of Health shall provide the
1448	assessment to the Legislature by January 1, 2009.
1449	Section 14.  Except as otherwise expressly provided in this
1450	act, this act shall take effect July 1, 2008.

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