CS/HB 995

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	468.431, F.S.; defining the term "community association
4	management firm"; redefining the term "community
5	association manager" to apply only to natural persons;
6	amending s. 468.4315, F.S.; revising membership criteria
7	for members of the Regulatory Council of Community
8	Association Managers; requiring the council to establish a
9	public education program; providing for council members to
10	serve without compensation but be entitled to receive per
11	diem and travel expenses; providing responsibilities of
12	the council; amending s. 468.432, F.S.; providing for the
13	licensure of community association management firms;
14	providing application, licensure, and fee requirements;
15	providing for the cancellation of the license of a
16	community association management firm under certain
17	circumstances; providing that such firm or similar
18	organization agrees that, by being licensed, it shall
19	employ only licensed persons providing certain services;
20	amending s. 468.433, F.S.; providing for the refusal of an
21	applicant certification under certain circumstances;
22	amending s. 468.436, F.S.; requiring the Department of
23	Business and Professional Regulation to investigate
24	certain complaints and allegations; providing complaint
25	and investigation procedures; providing grounds for which
26	disciplinary action may be taken; amending s. 718.111,
27	F.S.; providing that a director of the association who
28	abstains from voting on any action taken on any corporate
29	matter shall be presumed to have taken no position with
30	regard to the action; providing duties of officers,
31	directors, and agents of a condominium association and
32	liability for monetary damages under certain
33	circumstances; providing that a person who knowingly or
34	intentionally fails to create or maintain, or who defaces
35	or destroys certain records, is subject to civil penalties
36	as prescribed by state law; requiring that a copy of the
37	inspection report be maintained as an official record of
38	the association; requiring official records of the
39	association to be maintained for a specified minimum
40	period and be made available at certain locations and in
41	specified formats; providing that any person who knowingly
42	or intentionally defaces, destroys, or fails to create or
43	maintain accounting records is subject to civil and
44	criminal sanctions; prohibiting accessibility to certain
45	personal identifying information of unit owners by fellow
46	unit owners; requiring that the Division of Florida Land
47	Sales, Condominiums, and Mobile Homes of the Department of
48	Business and Professional Regulation adopt certain rules;
49	requiring certain audits and reports to be paid for by the
50	developer if done before control of the association is
51	turned over; restricting a condominium association from
52	waiving a financial report for more than a specified
53	period; amending s. 718.112, F.S.; prohibiting a voting
54	interest or a consent right allocated to a unit owner from
55	being exercised under certain circumstances; requiring the
56	board to address certain agenda items proposed by a
57	petition of a specified percentage of the unit owners;
58	providing requirements for the location of annual unit
59	owner meetings; revising terms of service for board
60	members; prohibiting certain persons from serving on the
61	board; requiring the association to provide a
62	certification form to unit owners for specified purposes;
63	authorizing an association consisting of a specified
64	maximum number of units to provide for different voting
65	and election procedures in its bylaws by affirmative vote
66	of a majority of the association's voting interests;
67	revising requirements related to the annual budget;
68	requiring proxy questions relating to reserves to contain
69	a specified statement; providing for the removal of board
70	members under certain circumstances; requiring that
71	directors who are delinquent in certain payments owed in
72	excess of certain periods of time be suspended from office
73	or deemed to have abandoned their offices; requiring that
74	directors charged with certain offenses involving an
75	association's funds or property be suspended from office
76	pending resolution of the charge; providing for the
77	reinstatement of such officers or directors under certain
78	circumstances; amending s. 718.1124, F.S.; providing that
79	any unit owner may give notice of his or her intent to
80	apply to the circuit court for the appointment of a
81	receiver to manage the affairs of the association under
82	certain circumstances; providing a form for such notice;
83	providing for the delivery of such notice; providing
84	procedures for resolving a petition submitted pursuant to
85	such notice; requiring that all unit owners be provided
86	written notice of the appointment of a receiver; amending
87	s. 718.113, F.S.; providing a statement of clarification;
88	authorizing the board to install certain hurricane
89	protection; prohibiting the board from installing
90	hurricane shutters under certain circumstances; providing
91	for the maintenance, repair, and replacement of hurricane
92	shutters or other hurricane protection; providing that a
93	vote of the owners is not required under certain
94	conditions; prohibiting a board from refusing to approve
95	the installation or replacement of hurricane shutters by a
96	unit owner under certain conditions; requiring that the
97	board inspect certain condominium buildings and issue a
98	report thereupon; providing an exception; prohibiting the
99	board from refusing a request for reasonable accommodation
100	for the attachment to a unit of religious objects meeting
101	certain size specifications; amending s. 718.115, F.S.;
102	providing the expense of installation, replacement,
103	operation, repair, and maintenance of hurricane shutters
104	or other hurricane protection shall constitute either a
105	common expense or shall be charged individually to the
106	unit owners under certain conditions; amending s. 718.117,
107	F.S.; requiring that all unit owners be provided written
108	notice of the appointment of a receiver; providing for the
109	delivery of such notice; amending s. 718.121, F.S.;
110	providing requirements and restrictions for liens filed by
111	the association against a condominium unit; providing for
112	notice and delivery thereof; creating s. 718.1224, F.S.;
113	prohibiting strategic lawsuits against public
114	participation; providing legislative findings and intent;
115	prohibiting a governmental entity, business organization,
116	or individual from filing certain lawsuits made upon
117	specified bases against a unit owner; providing rights of
118	a unit owner who has been served with such a lawsuit;
119	providing procedures for the resolution of claims that
120	such suit violates certain provisions of state law;
121	providing for the award of damages and attorney's fees;
122	prohibiting associations from expending association funds
123	in prosecuting such a suit against a unit owner; amending
124	s. 718.1255, F.S.; revising legislative intent concerning
125	alternative dispute resolution; creating s. 718.1265,
126	F.S.; authorizing an association to exercise certain
127	powers in instances involving damage caused by an event
128	for which a state of emergency has been declared; limiting
129	the applicability of such powers; creating s. 718.127,
130	F.S.; requiring that all unit owners be provided written
131	notice of the appointment of a receiver; providing for the
132	delivery of such notice; amending s. 718.301, F.S.;
133	providing circumstances under which unit owners other than
134	a developer may elect not fewer than a majority of the
135	members of the board of administration of an association;
136	requiring a turnover inspection report; requiring that the
137	report contain certain information; amending s. 718.3025,
138	F.S.; requiring that maintenance and management services
139	contracts disclose certain information; amending s.
140	718.3026, F.S.; revising a provision authorizing certain
141	associations to opt out of provisions relating to
142	contracts for products and services; removing provisions
143	relating to competitive bid requirements for contracts
144	executed before a specified date; providing requirements
145	for any contract or transaction between an association and
146	one or more of its directors or any other entity in which
147	one or more of its directors are directors or officers or
148	have a financial interest; amending s. 718.303, F.S.;
149	providing that hearings regarding noncompliance with a
150	declaration be held before certain persons; amending s.
151	718.501, F.S.; providing authority and responsibilities of
152	the division; providing for enforcement actions brought by
153	the division in its own name; providing for the imposition
154	of penalties by the division; requiring that the division
155	issue a subpoena requiring production of certain requested
156	records under certain circumstances; providing for the
157	issuance of notice of a declaratory statement with respect
158	to documents governing a condominium community; requiring
159	that the division provide training and education for
160	condominium association board members and unit owners;
161	authorizing the division to include certain training
162	components and review or approve training programs offered
163	by providers; requiring that certain individuals cooperate
164	with the division in any investigation conducted by the
165	division; amending s. 718.5012, F.S.; providing additional
166	powers of the ombudsman; amending s. 718.50151, F.S.;
167	redesignating the Advisory Council on Condominiums as the
168	"Community Association Living Study Council"; providing
169	for the creation of the council; revising legislative
170	intent with respect to the appointment of council members;
171	providing functions of the council; amending s. 718.503,
172	F.S.; providing for disclosure of certain information upon
173	the sale of a unit by a nondeveloper; requiring the
174	provision of a governance form by the seller to the
175	prospective buyer; requiring that such form contain
176	certain information and a specified statement; providing
177	an effective date.
178
179	Be It Enacted by the Legislature of the State of Florida:
180
181	Section 1.  Section 468.431, Florida Statutes, is amended
182	to read:
183	468.431  Definitions.--As used in this part:
184	(1)  "Community association" means a residential
185	homeowners' association in which membership is a condition of
186	ownership of a unit in a planned unit development, or of a lot
187	for a home or a mobile home, or of a townhouse, villa,
188	condominium, cooperative, or other residential unit which is
189	part of a residential development scheme and which is authorized
190	to impose a fee which may become a lien on the parcel.
191	(2)  "Community association management" means any of the
192	following practices requiring substantial specialized knowledge,
193	judgment, and managerial skill when done for remuneration and
194	when the association or associations served contain more than 10
195	50 units or have an annual budget or budgets in excess of
196	$100,000: controlling or disbursing funds of a community
197	association, preparing budgets or other financial documents for
198	a community association, assisting in the noticing or conduct of
199	community association meetings, and coordinating maintenance for
200	the residential development and other day-to-day services
201	involved with the operation of a community association. A person
202	who performs clerical or ministerial functions under the direct
203	supervision and control of a licensed manager or who is charged
204	only with performing the maintenance of a community association
205	and who does not assist in any of the management services
206	described in this subsection is not required to be licensed
207	under this part.
208	(3)  "Community association management firm" means a
209	corporation, limited liability company, partnership, trust,
210	association, sole proprietorship, or other similar organization
211	engaging in the business of community association management for
212	the purpose of providing any of the services described in
213	subsection (2).
214	(4)(3)  "Community association manager" means a natural
215	person who is licensed pursuant to this part to perform
216	community association management services.
217	(5)(4)  "Council" means the Regulatory Council of Community
218	Association Managers.
219	(6)(5)  "Department" means the Department of Business and
220	Professional Regulation.
221	Section 2.  Section 468.4315, Florida Statutes, is amended
222	to read:
223	468.4315  Regulatory Council of Community Association
224	Managers.--
225	(1)  The Regulatory Council of Community Association
226	Managers is created within the department and shall consist of
227	seven members appointed by the Governor and confirmed by the
228	Senate.
229	(a)  Five members of the council shall be licensed
230	community association managers, one of whom may shall be a
231	community association manager employed by a timeshare managing
232	entity as described in ss. 468.438 and 721.13, who have held an
233	active license for at least 5 years. The remaining two council
234	members shall be residents of this state, and must not be or
235	ever have been connected with the business of community
236	association management, and shall not be prohibited from serving
237	because the member is or has been a resident or board member of
238	a community association.
239	(b)  The Governor shall appoint members for terms of 4
240	years. Such members shall serve until their successors are
241	appointed. Members' service on the council shall begin upon
242	appointment and shall continue until their successors are
243	appointed.
244	(2)  The council may adopt rules relating to the licensure
245	examination, continuing education requirements, continuing
246	education providers, fees, and professional practice standards
247	to assist the department in carrying out the duties and
248	authorities conferred upon the department by this part.
249	(3) To the extent the council is authorized to exercise
250	functions otherwise exercised by a board pursuant to chapter
251	455, the provisions of chapter 455 and s. 20.165 relating to
252	regulatory boards shall apply, including, but not limited to,
253	provisions relating to board rules and the accountability and
254	liability of board members. All proceedings and actions of the
255	council are subject to the provisions of chapter 120. In
256	addition, the provisions of chapter 455 and s. 20.165 shall
257	apply to the department in carrying out the duties and
258	authorities conferred upon the department by this part.
259	(4)  The council may establish a public education program
260	relating to professional community association management.
261	(5)  Members of the council shall serve without
262	compensation but are entitled to receive per diem and travel
263	expenses pursuant to s. 112.061 while carrying out business
264	approved by the council.
265	(6)  The responsibilities of the council shall include, but
266	not be limited to:
267	(a)  Receiving input regarding issues of concern with
268	respect to community association management and recommendations
269	for changes in applicable laws.
270	(b)  Reviewing, evaluating, and advising the division
271	concerning revisions and adoption of rules affecting community
272	association management.
273	(c)  Recommending improvements, if needed, in the education
274	programs offered by the division.
275	Section 3.  Section 468.432, Florida Statutes, is amended
276	to read:
277	468.432  Licensure of community association managers and
278	community association management firms; exceptions.--
279	(1)  A person shall not manage or hold herself or himself
280	out to the public as being able to manage a community
281	association in this state unless she or he is licensed by the
282	department in accordance with the provisions of this part.
283	However, nothing in this part prohibits any person licensed in
284	this state under any other law or court rule from engaging in
285	the profession for which she or he is licensed.
286	(2)  As of January 1, 2009, a community association
287	management firm or other similar organization responsible for
288	the management of more than 10 units or a budget of $100,000 or
289	greater shall not engage or hold itself out to the public as
290	being able to engage in the business of community association
291	management in this state unless it is licensed by the department
292	as a community association management firm in accordance with
293	the provisions of this part.
294	(a)  A community association management firm or other
295	similar organization desiring to be licensed as a community
296	association management firm shall apply to the department on a
297	form approved by the department together with the application
298	and licensure fees required by s. 468.435(1)(a) and (c). Each
299	community association management firm applying for licensure
300	under this subsection must be actively registered and authorized
301	to do business in this state.
302	(b)  Each applicant shall designate on its application a
303	licensed community association manager who shall be required to
304	respond to all inquires from and investigations by the
305	department or division.
306	(c)  Each licensed community association management firm
307	shall notify the department within 30 days after any change of
308	information contained in the application upon which licensure is
309	based.
310	(d)  Community association management firm licenses shall
311	expire on September 30 of odd-numbered years and shall be
312	renewed every 2 years. An application for renewal shall be
313	accompanied by the renewal fee as required by s. 468.435(1)(d).
314	(e)  The department shall license each applicant whom the
315	department certifies as meeting the requirements of this
316	subsection.
317	(f)  If the license of at least one individual active
318	community association manager member is not in force, the
319	license of the community association management firm or other
320	similar organization is canceled automatically during that time.
321	(g)  Any community association management firm or other
322	similar organization agrees by being licensed that it will
323	employ only licensed persons in the direct provision of
324	community association management services as described in s.
325	468.431(3).
326	(2)  Nothing in this part prohibits a corporation,
327	partnership, trust, association, or other like organization from
328	engaging in the business of community association management
329	without being licensed if it employs licensed natural persons in
330	the direct provision of community association management
331	services. Such corporation, partnership, trust, association, or
332	other organization shall also file with the department a
333	statement on a form approved by the department that it submits
334	itself to the rules of the council and the department and the
335	provisions of this part which the department deems applicable.
336	Section 4.  Subsections (2) and (4) of section 468.433,
337	Florida Statutes, are amended to read:
338	468.433  Licensure by examination.--
339	(2)  The department shall examine each applicant who is at
340	least 18 years of age, who has successfully completed all
341	prelicensure education requirements, and who the department
342	certifies is of good moral character.
343	(a)  Good moral character means a personal history of
344	honesty, fairness, and respect for the rights of others and for
345	the laws of this state and nation.
346	(b)  The department may refuse to certify an applicant only
347	if:
348	1.  There is a substantial connection between the lack of
349	good moral character of the applicant and the professional
350	responsibilities of a community association manager; and
351	2.  The finding by the department of lack of good moral
352	character is supported by clear and convincing evidence; or
353	3.  The applicant is found to have provided management
354	services requiring licensure without the requisite license.
355	(c)  When an applicant is found to be unqualified for a
356	license because of a lack of good moral character, the
357	department shall furnish the applicant a statement containing
358	its findings, a complete record of the evidence upon which the
359	determination was based, and a notice of the rights of the
360	applicant to a rehearing and appeal.
361	(d)  The council shall establish by rule the required
362	amount of prelicensure education, which shall consist of not
363	more than 24 hours of in-person instruction by a department-
364	approved provider and which shall cover all areas of the
365	examination specified in subsection (3). Such instruction shall
366	be completed within 12 months prior to the date of the
367	examination. Prelicensure education providers shall be
368	considered continuing education providers for purposes of
369	establishing provider approval fees. A licensee shall not be
370	required to comply with the continuing education requirements of
371	s. 468.4337 prior to the first license renewal. The department
372	shall, by rule, set standards for exceptions to the requirement
373	of in-person instruction in cases of hardship or disability.
374	(4)  The department shall issue a license to practice in
375	this state as a community association manager to any qualified
376	applicant who successfully completes the examination in
377	accordance with this section and pays the appropriate fee.
378	Section 5.  Section 468.436, Florida Statutes, is amended
379	to read:
380	468.436  Disciplinary proceedings.--
381	(1)  The department shall investigate complaints and
382	allegations of a violation of this part or chapter 455, or any
383	rule adopted thereunder, filed against community association
384	managers or firms and forwarded from other divisions under the
385	Department of Business and Professional Regulation. After a
386	complaint is received, the department shall conduct its inquiry
387	with due regard to the interests of the affected parties. Within
388	30 days after receipt of a complaint, the department shall
389	acknowledge the complaint in writing and notify the complainant
390	whether or not the complaint is within the jurisdiction of the
391	department and whether or not additional information is needed
392	by the department from the complainant. The department shall
393	conduct an investigation and shall, within 90 days after receipt
394	of the original complaint or of a timely request for additional
395	information, take action upon the complaint. However, the
396	failure to complete the investigation within 90 days does not
397	prevent the department from continuing the investigation,
398	accepting or considering evidence obtained or received after 90
399	days, or taking administrative action if reasonable cause exists
400	to believe that a violation of this part or chapter 455, or a
401	rule of the department has occurred. If an investigation is not
402	completed within the time limits established in this subsection,
403	the department shall, on a monthly basis, notify the complainant
404	in writing of the status of the investigation. When reporting
405	its action to the complainant, the department shall inform the
406	complainant of any right to a hearing pursuant to ss. 120.569
407	and 120.57.
408	(2)(1)  The following acts constitute grounds for which the
409	disciplinary actions in subsection (4) (3) may be taken:
410	(a)  Violation of any provision of s. 455.227(1).
411	(b)1.  Violation of any provision of this part.
412	2.  Violation of any lawful order or rule rendered or
413	adopted by the department or the council.
414	3.  Being convicted of or pleading nolo contendere to a
415	felony in any court in the United States.
416	4.  Obtaining a license or certification or any other
417	order, ruling, or authorization by means of fraud,
418	misrepresentation, or concealment of material facts.
419	5.  Committing acts of gross misconduct or gross negligence
420	in connection with the profession.
421	6.  Contracting, on behalf of an association, with any
422	entity in which the licensee has a financial interest that is
423	not disclosed.
424	(3)(2)  The council shall specify by rule the acts or
425	omissions that constitute a violation of subsection (2) (1).
426	(4)(3)  When the department finds any community association
427	manager or firm guilty of any of the grounds set forth in
428	subsection (2) (1), it may enter an order imposing one or more
429	of the following penalties:
430	(a)  Denial of an application for licensure.
431	(b)  Revocation or suspension of a license.
432	(c)  Imposition of an administrative fine not to exceed
433	$5,000 for each count or separate offense.
434	(d)  Issuance of a reprimand.
435	(e)  Placement of the community association manager on
436	probation for a period of time and subject to such conditions as
437	the department specifies.
438	(f)  Restriction of the authorized scope of practice by the
439	community association manager.
440	(5)(4)  The department may shall reissue the license of a
441	disciplined community association manager or firm upon
442	certification by the department that the disciplined person or
443	firm has complied with all of the terms and conditions set forth
444	in the final order.
445	Section 6.  Paragraph (b) of subsection (1) and subsections
446	(12) and (13) of section 718.111, Florida Statutes are amended,
447	and paragraph (d) is added to subsection (1) of that section, to
448	read:
449	718.111  The association.--
450	(1)  CORPORATE ENTITY.--
451	(b)  A director of the association who is present at a
452	meeting of its board at which action on any corporate matter is
453	taken shall be presumed to have assented to the action taken
454	unless he or she votes against such action or abstains from
455	voting in respect thereto because of an asserted conflict of
456	interest. A director of the association who abstains from voting
457	on any action taken on any corporate matter shall be presumed to
458	have taken no position with regard to the action. Directors may
459	not vote by proxy or by secret ballot at board meetings, except
460	that officers may be elected by secret ballot. A vote or
461	abstention for each member present shall be recorded in the
462	minutes.
463	(d)  As required by s. 617.0830, an officer, director, or
464	agent shall discharge his or her duties in good faith, with the
465	care an ordinarily prudent person in a like position would
466	exercise under similar circumstances, and in a manner he or she
467	reasonably believes to be in the interests of the association.
468	An officer, director, or agent shall be liable for monetary
469	damages as provided in s. 617.0834 if such officer, director, or
470	agent breached or failed to perform his or her duties and the
471	breach of, or failure to perform, his or her duties constitutes
472	a violation of criminal law as provided in s. 617.0834;
473	constitutes a transaction from which the officer or director
474	derived an improper personal benefit, either directly or
475	indirectly; or constitutes recklessness or an act or omission
476	that was  in bad faith, with malicious purpose, or in a manner
477	exhibiting wanton and willful disregard of human rights, safety,
478	or property.
479	(12)  OFFICIAL RECORDS.--
480	(a)  From the inception of the association, the association
481	shall maintain each of the following items, when applicable,
482	which shall constitute the official records of the association:
483	1.  A copy of the plans, permits, warranties, and other
484	items provided by the developer pursuant to s. 718.301(4).
485	2.  A photocopy of the recorded declaration of condominium
486	of each condominium operated by the association and of each
487	amendment to each declaration.
488	3.  A photocopy of the recorded bylaws of the association
489	and of each amendment to the bylaws.
490	4.  A certified copy of the articles of incorporation of
491	the association, or other documents creating the association,
492	and of each amendment thereto.
493	5.  A copy of the current rules of the association.
494	6.  A book or books which contain the minutes of all
495	meetings of the association, of the board of administration
496	directors, and of unit owners, which minutes shall be retained
497	for a period of not less than 7 years.
498	7.  A current roster of all unit owners and their mailing
499	addresses, unit identifications, voting certifications, and, if
500	known, telephone numbers. The association shall also maintain
501	the electronic mailing addresses and the numbers designated by
502	unit owners for receiving notice sent by electronic transmission
503	of those unit owners consenting to receive notice by electronic
504	transmission. The electronic mailing addresses and numbers
505	provided by unit owners to receive notice by electronic
506	transmission shall be removed from association records when
507	consent to receive notice by electronic transmission is revoked.
508	However, the association is not liable for an erroneous
509	disclosure of the electronic mail address or the number for
510	receiving electronic transmission of notices.
511	8.  All current insurance policies of the association and
512	condominiums operated by the association.
513	9.  A current copy of any management agreement, lease, or
514	other contract to which the association is a party or under
515	which the association or the unit owners have an obligation or
516	responsibility.
517	10.  Bills of sale or transfer for all property owned by
518	the association.
519	11.  Accounting records for the association and separate
520	accounting records for each condominium which the association
521	operates. All accounting records shall be maintained for a
522	period of not less than 7 years. Any person who knowingly or
523	intentionally defaces or destroys accounting records required to
524	be maintained by this chapter, or who knowingly or intentionally
525	fails to create or maintain accounting records required to be
526	maintained by this chapter, is personally subject to a civil
527	penalty pursuant to s. 718.501(1)(d). The accounting records
528	shall include, but are not limited to:
529	a.  Accurate, itemized, and detailed records of all
530	receipts and expenditures.
531	b.  A current account and a monthly, bimonthly, or
532	quarterly statement of the account for each unit designating the
533	name of the unit owner, the due date and amount of each
534	assessment, the amount paid upon the account, and the balance
535	due.
536	c.  All audits, reviews, accounting statements, and
537	financial reports of the association or condominium.
538	d.  All contracts for work to be performed. Bids for work
539	to be performed shall also be considered official records and
540	shall be maintained by the association for a period of 1 year.
541	12.  Ballots, sign-in sheets, voting proxies, and all other
542	papers relating to voting by unit owners, which shall be
543	maintained for a period of 1 year from the date of the election,
544	vote, or meeting to which the document relates, notwithstanding
545	paragraph (b).
546	13.  All rental records, when the association is acting as
547	agent for the rental of condominium units.
548	14.  A copy of the current question and answer sheet as
549	described by s. 718.504.
550	15.  All other records of the association not specifically
551	included in the foregoing which are related to the operation of
552	the association.
553	16.  A copy of the inspection report as provided for in s.
554	718.301(4)(p).
555	(b)  The official records of the association shall be
556	maintained within the state for at least 7 years. The records of
557	the association shall be made available to a unit owner within
558	45 miles of the condominium property or within the county in
559	which the condominium property is located within 5 working days
560	after receipt of written request by the board or its designee.
561	However, such distance requirement does not apply to an
562	association governing a timeshare condominium. This paragraph
563	may be complied with by having a copy of the official records of
564	the association available for inspection or copying on the
565	condominium property or association property, or the association
566	may offer the option of making the records of the association
567	available to a unit owner either electronically via the Internet
568	or by allowing the records to be viewed in electronic format on
569	a computer screen and printed upon request.
570	(c)  The official records of the association are open to
571	inspection by any association member or the authorized
572	representative of such member at all reasonable times. The right
573	to inspect the records includes the right to make or obtain
574	copies, at the reasonable expense, if any, of the association
575	member. The association may adopt reasonable rules regarding the
576	frequency, time, location, notice, and manner of record
577	inspections and copying. The failure of an association to
578	provide the records within 10 working days after receipt of a
579	written request shall create a rebuttable presumption that the
580	association willfully failed to comply with this paragraph. A
581	unit owner who is denied access to official records is entitled
582	to the actual damages or minimum damages for the association's
583	willful failure to comply with this paragraph. The minimum
584	damages shall be $50 per calendar day up to 10 days, the
585	calculation to begin on the 11th working day after receipt of
586	the written request. The failure to permit inspection of the
587	association records as provided herein entitles any person
588	prevailing in an enforcement action to recover reasonable
589	attorney's fees from the person in control of the records who,
590	directly or indirectly, knowingly denied access to the records
591	for inspection. Any person who knowingly or intentionally
592	defaces or destroys accounting records that are required by this
593	chapter, or knowingly or intentionally fails to create or
594	maintain accounting records that are required by this chapter,
595	is personally subject to a civil penalty pursuant to s.
596	718.501(1)(d). The association shall maintain an adequate number
597	of copies of the declaration, articles of incorporation, bylaws,
598	and rules, and all amendments to each of the foregoing, as well
599	as the question and answer sheet provided for in s. 718.504 and
600	year-end financial information required in this section on the
601	condominium property to ensure their availability to unit owners
602	and prospective purchasers, and may charge its actual costs for
603	preparing and furnishing these documents to those requesting the
604	same. Notwithstanding the provisions of this paragraph, the
605	following records shall not be accessible to unit owners:
606	1.  Any record protected by the lawyer-client privilege as
607	described in s. 90.502; and any record protected by the work-
608	product privilege, including any record prepared by an
609	association attorney or prepared at the attorney's express
610	direction; which reflects a mental impression, conclusion,
611	litigation strategy, or legal theory of the attorney or the
612	association, and which was prepared exclusively for civil or
613	criminal litigation or for adversarial administrative
614	proceedings, or which was prepared in anticipation of imminent
615	civil or criminal litigation or imminent adversarial
616	administrative proceedings until the conclusion of the
617	litigation or adversarial administrative proceedings.
618	2.  Information obtained by an association in connection
619	with the approval of the lease, sale, or other transfer of a
620	unit.
621	3.  Medical records of unit owners.
622	4.  Social security numbers, driver's license numbers,
623	credit card numbers, and other personal identifying information
624	of any person.
625	(d)  The association shall prepare a question and answer
626	sheet as described in s. 718.504, and shall update it annually.
627	(e)1.  The association or its authorized agent is not
628	required to provide a prospective purchaser or lienholder with
629	information about the condominium or the association other than
630	information or documents required by this chapter to be made
631	available or disclosed. The association or its authorized agent
632	may charge a reasonable fee to the prospective purchaser,
633	lienholder, or the current unit owner for providing good faith
634	responses to requests for information by or on behalf of a
635	prospective purchaser or lienholder, other than that required by
636	law, if the fee does not exceed $150 plus the reasonable cost of
637	photocopying and any attorney's fees incurred by the association
638	in connection with the response.
639	2.  An association and its authorized agent are not liable
640	for providing such information in good faith pursuant to a
641	written request if the person providing the information includes
642	a written statement in substantially the following form: "The
643	responses herein are made in good faith and to the best of my
644	ability as to their accuracy."
645	(13)  FINANCIAL REPORTING.--Within 90 days after the end of
646	the fiscal year, or annually on a date provided in the bylaws,
647	the association shall prepare and complete, or contract for the
648	preparation and completion of, a financial report for the
649	preceding fiscal year. Within 21 days after the final financial
650	report is completed by the association or received from the
651	third party, but not later than 120 days after the end of the
652	fiscal year or other date as provided in the bylaws, the
653	association shall mail to each unit owner at the address last
654	furnished to the association by the unit owner, or hand deliver
655	to each unit owner, a copy of the financial report or a notice
656	that a copy of the financial report will be mailed or hand
657	delivered to the unit owner, without charge, upon receipt of a
658	written request from the unit owner. The division shall adopt
659	rules setting forth uniform accounting principles and standards
660	to be used by all associations and shall adopt rules addressing
661	financial reporting requirements for multicondominium
662	associations. The rules shall include, but not be limited to,
663	uniform accounting principles and standards for stating the
664	disclosure of at least a summary of the reserves, including
665	information as to whether such reserves are being funded at a
666	level sufficient to prevent the need for a special assessment
667	and, if not, the amount of assessments necessary to bring the
668	reserves up to the level necessary to avoid a special
669	assessment. The person preparing the financial reports shall be
670	entitled to rely on an inspection report prepared for or
671	provided to the association to meet the fiscal and fiduciary
672	standards of this chapter. In adopting such rules, the division
673	shall consider the number of members and annual revenues of an
674	association. Financial reports shall be prepared as follows:
675	(a)  An association that meets the criteria of this
676	paragraph shall prepare or cause to be prepared a complete set
677	of financial statements in accordance with generally accepted
678	accounting principles. The financial statements shall be based
679	upon the association's total annual revenues, as follows:
680	1.  An association with total annual revenues of $100,000
681	or more, but less than $200,000, shall prepare compiled
682	financial statements.
683	2.  An association with total annual revenues of at least
684	$200,000, but less than $400,000, shall prepare reviewed
685	financial statements.
686	3.  An association with total annual revenues of $400,000
687	or more shall prepare audited financial statements.
688	(b)1.  An association with total annual revenues of less
689	than $100,000 shall prepare a report of cash receipts and
690	expenditures.
691	2.  An association which operates less than 50 units,
692	regardless of the association's annual revenues, shall prepare a
693	report of cash receipts and expenditures in lieu of financial
694	statements required by paragraph (a).
695	3.  A report of cash receipts and disbursements must
696	disclose the amount of receipts by accounts and receipt
697	classifications and the amount of expenses by accounts and
698	expense classifications, including, but not limited to, the
699	following, as applicable: costs for security, professional and
700	management fees and expenses, taxes, costs for recreation
701	facilities, expenses for refuse collection and utility services,
702	expenses for lawn care, costs for building maintenance and
703	repair, insurance costs, administration and salary expenses, and
704	reserves accumulated and expended for capital expenditures,
705	deferred maintenance, and any other category for which the
706	association maintains reserves.
707	(c)  An association may prepare or cause to be prepared,
708	without a meeting of or approval by the unit owners:
709	1.  Compiled, reviewed, or audited financial statements, if
710	the association is required to prepare a report of cash receipts
711	and expenditures;
712	2.  Reviewed or audited financial statements, if the
713	association is required to prepare compiled financial
714	statements; or
715	3.  Audited financial statements if the association is
716	required to prepare reviewed financial statements.
717	(d)  If approved by a majority of the voting interests
718	present at a properly called meeting of the association, an
719	association may prepare or cause to be prepared:
720	1.  A report of cash receipts and expenditures in lieu of a
721	compiled, reviewed, or audited financial statement;
722	2.  A report of cash receipts and expenditures or a
723	compiled financial statement in lieu of a reviewed or audited
724	financial statement; or
725	3.  A report of cash receipts and expenditures, a compiled
726	financial statement, or a reviewed financial statement in lieu
727	of an audited financial statement.
728
729	Such meeting and approval must occur prior to the end of the
730	fiscal year and is effective only for the fiscal year in which
731	the vote is taken, except that the approval also may be
732	effective for the following fiscal year. With respect to an
733	association to which the developer has not turned over control
734	of the association, all unit owners, including the developer,
735	may vote on issues related to the preparation of financial
736	reports for the first 2 fiscal years of the association's
737	operation, beginning with the fiscal year in which the
738	declaration is recorded. Thereafter, all unit owners except the
739	developer may vote on such issues until control is turned over
740	to the association by the developer. Any audit or review
741	prepared under this section shall be paid for by the developer
742	if done prior to turnover of control of the association. An
743	association may not waive the financial reporting requirements
744	of this section for more than 3 consecutive years.
745	Section 7.  Subsection (2) of section 718.112, Florida
746	Statutes, is amended to read:
747	718.112  Bylaws.--
748	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
749	following and, if they do not do so, shall be deemed to include
750	the following:
751	(a)  Administration.--
752	1.  The form of administration of the association shall be
753	described indicating the title of the officers and board of
754	administration and specifying the powers, duties, manner of
755	selection and removal, and compensation, if any, of officers and
756	boards. In the absence of such a provision, the board of
757	administration shall be composed of five members, except in the
758	case of a condominium which has five or fewer units, in which
759	case in a not-for-profit corporation the board shall consist of
760	not fewer than three members. In the absence of provisions to
761	the contrary in the bylaws, the board of administration shall
762	have a president, a secretary, and a treasurer, who shall
763	perform the duties of such officers customarily performed by
764	officers of corporations. Unless prohibited in the bylaws, the
765	board of administration may appoint other officers and grant
766	them the duties it deems appropriate. Unless otherwise provided
767	in the bylaws, the officers shall serve without compensation and
768	at the pleasure of the board of administration. Unless otherwise
769	provided in the bylaws, the members of the board shall serve
770	without compensation.
771	2.  When a unit owner files a written inquiry by certified
772	mail with the board of administration, the board shall respond
773	in writing to the unit owner within 30 days of receipt of the
774	inquiry. The board's response shall either give a substantive
775	response to the inquirer, notify the inquirer that a legal
776	opinion has been requested, or notify the inquirer that advice
777	has been requested from the division. If the board requests
778	advice from the division, the board shall, within 10 days of its
779	receipt of the advice, provide in writing a substantive response
780	to the inquirer. If a legal opinion is requested, the board
781	shall, within 60 days after the receipt of the inquiry, provide
782	in writing a substantive response to the inquiry. The failure to
783	provide a substantive response to the inquiry as provided herein
784	precludes the board from recovering attorney's fees and costs in
785	any subsequent litigation, administrative proceeding, or
786	arbitration arising out of the inquiry. The association may
787	through its board of administration adopt reasonable rules and
788	regulations regarding the frequency and manner of responding to
789	unit owner inquiries, one of which may be that the association
790	is only obligated to respond to one written inquiry per unit in
791	any given 30-day period. In such a case, any additional inquiry
792	or inquiries must be responded to in the subsequent 30-day
793	period, or periods, as applicable.
794	(b)  Quorum; voting requirements; proxies.--
795	1.  Unless a lower number is provided in the bylaws, the
796	percentage of voting interests required to constitute a quorum
797	at a meeting of the members shall be a majority of the voting
798	interests. Unless otherwise provided in this chapter or in the
799	declaration, articles of incorporation, or bylaws, and except as
800	provided in subparagraph (d)3., decisions shall be made by
801	owners of a majority of the voting interests represented at a
802	meeting at which a quorum is present.
803	2.  Except as specifically otherwise provided herein, after
804	January 1, 1992, unit owners may not vote by general proxy, but
805	may vote by limited proxies substantially conforming to a
806	limited proxy form adopted by the division. No voting interest
807	or consent right allocated to a unit owned by the association
808	shall be exercised or considered for any purpose, whether for a
809	quorum, an election, or otherwise. Limited proxies and general
810	proxies may be used to establish a quorum. Limited proxies shall
811	be used for votes taken to waive or reduce reserves in
812	accordance with subparagraph (f)2.; for votes taken to waive the
813	financial reporting requirements of s. 718.111(13); for votes
814	taken to amend the declaration pursuant to s. 718.110; for votes
815	taken to amend the articles of incorporation or bylaws pursuant
816	to this section; and for any other matter for which this chapter
817	requires or permits a vote of the unit owners. Except as
818	provided in paragraph (d), after January 1, 1992, no proxy,
819	limited or general, shall be used in the election of board
820	members. General proxies may be used for other matters for which
821	limited proxies are not required, and may also be used in voting
822	for nonsubstantive changes to items for which a limited proxy is
823	required and given. Notwithstanding the provisions of this
824	subparagraph, unit owners may vote in person at unit owner
825	meetings. Nothing contained herein shall limit the use of
826	general proxies or require the use of limited proxies for any
827	agenda item or election at any meeting of a timeshare
828	condominium association.
829	3.  Any proxy given shall be effective only for the
830	specific meeting for which originally given and any lawfully
831	adjourned meetings thereof. In no event shall any proxy be valid
832	for a period longer than 90 days after the date of the first
833	meeting for which it was given. Every proxy is revocable at any
834	time at the pleasure of the unit owner executing it.
835	4.  A member of the board of administration or a committee
836	may submit in writing his or her agreement or disagreement with
837	any action taken at a meeting that the member did not attend.
838	This agreement or disagreement may not be used as a vote for or
839	against the action taken and may not be used for the purposes of
840	creating a quorum.
841	5.  When any of the board or committee members meet by
842	telephone conference, those board or committee members attending
843	by telephone conference may be counted toward obtaining a quorum
844	and may vote by telephone. A telephone speaker must be used so
845	that the conversation of those board or committee members
846	attending by telephone may be heard by the board or committee
847	members attending in person as well as by any unit owners
848	present at a meeting.
849	(c)  Board of administration meetings.--Meetings of the
850	board of administration at which a quorum of the members is
851	present shall be open to all unit owners. Any unit owner may
852	tape record or videotape meetings of the board of
853	administration. The right to attend such meetings includes the
854	right to speak at such meetings with reference to all designated
855	agenda items. The division shall adopt reasonable rules
856	governing the tape recording and videotaping of the meeting. The
857	association may adopt written reasonable rules governing the
858	frequency, duration, and manner of unit owner statements.
859	Adequate notice of all meetings, which notice shall specifically
860	incorporate an identification of agenda items, shall be posted
861	conspicuously on the condominium property at least 48 continuous
862	hours preceding the meeting except in an emergency. If 20
863	percent of the voting interests petition the board to address an
864	item of business, the board shall at its next regular board
865	meeting or at a special meeting of the board, but not later than
866	60 days after the receipt of the petition, place the item on the
867	agenda. Any item not included on the notice may be taken up on
868	an emergency basis by at least a majority plus one of the
869	members of the board. Such emergency action shall be noticed and
870	ratified at the next regular meeting of the board. However,
871	written notice of any meeting at which nonemergency special
872	assessments, or at which amendment to rules regarding unit use,
873	will be considered shall be mailed, delivered, or electronically
874	transmitted to the unit owners and posted conspicuously on the
875	condominium property not less than 14 days prior to the meeting.
876	Evidence of compliance with this 14-day notice shall be made by
877	an affidavit executed by the person providing the notice and
878	filed among the official records of the association. Upon notice
879	to the unit owners, the board shall by duly adopted rule
880	designate a specific location on the condominium property or
881	association property upon which all notices of board meetings
882	shall be posted. If there is no condominium property or
883	association property upon which notices can be posted, notices
884	of board meetings shall be mailed, delivered, or electronically
885	transmitted at least 14 days before the meeting to the owner of
886	each unit. In lieu of or in addition to the physical posting of
887	notice of any meeting of the board of administration on the
888	condominium property, the association may, by reasonable rule,
889	adopt a procedure for conspicuously posting and repeatedly
890	broadcasting the notice and the agenda on a closed-circuit cable
891	television system serving the condominium association. However,
892	if broadcast notice is used in lieu of a notice posted
893	physically on the condominium property, the notice and agenda
894	must be broadcast at least four times every broadcast hour of
895	each day that a posted notice is otherwise required under this
896	section. When broadcast notice is provided, the notice and
897	agenda must be broadcast in a manner and for a sufficient
898	continuous length of time so as to allow an average reader to
899	observe the notice and read and comprehend the entire content of
900	the notice and the agenda. Notice of any meeting in which
901	regular or special assessments against unit owners are to be
902	considered for any reason shall specifically state contain a
903	statement that assessments will be considered and the nature,
904	estimated cost, and description of the purposes for any such
905	assessments. Meetings of a committee to take final action on
906	behalf of the board or make recommendations to the board
907	regarding the association budget are subject to the provisions
908	of this paragraph. Meetings of a committee that does not take
909	final action on behalf of the board or make recommendations to
910	the board regarding the association budget are subject to the
911	provisions of this section, unless those meetings are exempted
912	from this section by the bylaws of the association.
913	Notwithstanding any other law, the requirement that board
914	meetings and committee meetings be open to the unit owners is
915	inapplicable to meetings between the board or a committee and
916	the association's attorney, with respect to proposed or pending
917	litigation, when the meeting is held for the purpose of seeking
918	or rendering legal advice.
919	(d)  Unit owner meetings.--
920	1.  There shall be an annual meeting of the unit owners
921	held at the location provided in the association bylaws and, if
922	the bylaws are silent as to the location, the meeting shall be
923	held within 45 miles of the condominium property. However, such
924	distance requirement does not apply to an association governing
925	a timeshare condominium. Unless the bylaws provide otherwise, a
926	vacancy on the board caused by the expiration of a director's
927	term shall be filled by electing a new board member, and the
928	election shall be by secret ballot; however, if the number of
929	vacancies equals or exceeds the number of candidates, no
930	election is required. If there is no provision in the bylaws for
931	terms of the members of the board, The terms of all members of
932	the board shall expire upon the election of their successors at
933	the annual meeting and such board members may stand for
934	reelection unless otherwise permitted by the bylaws. In the
935	event that the bylaws permit staggered terms of no more than 2
936	years and upon approval of a majority of the total voting
937	interests, the association board members may serve 2-year
938	staggered terms. If no person is interested in or demonstrates
939	an intention to run for the position of a board member whose
940	term has expired according to the provisions of this
941	subparagraph, such board member whose term has expired shall be
942	automatically reappointed to the board of administration and
943	need not stand for reelection. In a condominium association of
944	more than 10 units, coowners of a unit may not serve as members
945	of the board of directors at the same time. Any unit owner
946	desiring to be a candidate for board membership shall comply
947	with subparagraph 3. A person who has been suspended or removed
948	by the division under this chapter, or who is delinquent in the
949	payment of any fee or assessment as provided in paragraph (n),
950	is not eligible for board membership. A person who has been
951	convicted of any felony in this state or by any court of record
952	in a the United States District or Territorial Court, or who has
953	been convicted of any offense in another jurisdiction that would
954	be considered a felony if committed in this state, and who has
955	not had his or her right to vote restored pursuant to law in the
956	jurisdiction of his or her residence is not eligible for board
957	membership unless such felon's civil rights have been restored
958	for a period of no less than 5 years as of the date on which
959	such person seeks election to the board. The validity of an
960	action by the board is not affected if it is later determined
961	that a member of the board is ineligible for board membership
962	due to having been convicted of a felony.
963	2.  The bylaws shall provide the method of calling meetings
964	of unit owners, including annual meetings. Written notice, which
965	notice must include an agenda, shall be mailed, hand delivered,
966	or electronically transmitted to each unit owner at least 14
967	days prior to the annual meeting and shall be posted in a
968	conspicuous place on the condominium property at least 14
969	continuous days preceding the annual meeting. Upon notice to the
970	unit owners, the board shall by duly adopted rule designate a
971	specific location on the condominium property or association
972	property upon which all notices of unit owner meetings shall be
973	posted; however, if there is no condominium property or
974	association property upon which notices can be posted, this
975	requirement does not apply. In lieu of or in addition to the
976	physical posting of notice of any meeting of the unit owners on
977	the condominium property, the association may, by reasonable
978	rule, adopt a procedure for conspicuously posting and repeatedly
979	broadcasting the notice and the agenda on a closed-circuit cable
980	television system serving the condominium association. However,
981	if broadcast notice is used in lieu of a notice posted
982	physically on the condominium property, the notice and agenda
983	must be broadcast at least four times every broadcast hour of
984	each day that a posted notice is otherwise required under this
985	section. When broadcast notice is provided, the notice and
986	agenda must be broadcast in a manner and for a sufficient
987	continuous length of time so as to allow an average reader to
988	observe the notice and read and comprehend the entire content of
989	the notice and the agenda. Unless a unit owner waives in writing
990	the right to receive notice of the annual meeting, such notice
991	shall be hand delivered, mailed, or electronically transmitted
992	to each unit owner. Notice for meetings and notice for all other
993	purposes shall be mailed to each unit owner at the address last
994	furnished to the association by the unit owner, or hand
995	delivered to each unit owner. However, if a unit is owned by
996	more than one person, the association shall provide notice, for
997	meetings and all other purposes, to that one address which the
998	developer initially identifies for that purpose and thereafter
999	as one or more of the owners of the unit shall so advise the
1000	association in writing, or if no address is given or the owners
1001	of the unit do not agree, to the address provided on the deed of
1002	record. An officer of the association, or the manager or other
1003	person providing notice of the association meeting, shall
1004	provide an affidavit or United States Postal Service certificate
1005	of mailing, to be included in the official records of the
1006	association affirming that the notice was mailed or hand
1007	delivered, in accordance with this provision.
1008	3.  The members of the board shall be elected by written
1009	ballot or voting machine. Proxies shall in no event be used in
1010	electing the board, either in general elections or elections to
1011	fill vacancies caused by recall, resignation, or otherwise,
1012	unless otherwise provided in this chapter. Not less than 60 days
1013	before a scheduled election, the association shall mail,
1014	deliver, or electronically transmit, whether by separate
1015	association mailing or included in another association mailing,
1016	delivery, or transmission, including regularly published
1017	newsletters, to each unit owner entitled to a vote, a first
1018	notice of the date of the election along with a certification
1019	form provided by the division attesting that he or she has read
1020	and understands, to the best of his or her ability, the
1021	governing documents of the association and the provisions of
1022	this chapter and any applicable rules. Any unit owner or other
1023	eligible person desiring to be a candidate for the board must
1024	give written notice to the association not less than 40 days
1025	before a scheduled election. Together with the written notice
1026	and agenda as set forth in subparagraph 2., the association
1027	shall mail, deliver, or electronically transmit a second notice
1028	of the election to all unit owners entitled to vote therein,
1029	together with a ballot which shall list all candidates. Upon
1030	request of a candidate, the association shall include an
1031	information sheet, no larger than 81/2 inches by 11 inches,
1032	which must be furnished by the candidate not less than 35 days
1033	before the election, along with the signed certification form
1034	provided for in this subparagraph, to be included with the
1035	mailing, delivery, or transmission of the ballot, with the costs
1036	of mailing, delivery, or electronic transmission and copying to
1037	be borne by the association. The association is not liable for
1038	the contents of the information sheets prepared by the
1039	candidates. In order to reduce costs, the association may print
1040	or duplicate the information sheets on both sides of the paper.
1041	The division shall by rule establish voting procedures
1042	consistent with the provisions contained herein, including rules
1043	establishing procedures for giving notice by electronic
1044	transmission and rules providing for the secrecy of ballots.
1045	Elections shall be decided by a plurality of those ballots cast.
1046	There shall be no quorum requirement; however, at least 20
1047	percent of the eligible voters must cast a ballot in order to
1048	have a valid election of members of the board. No unit owner
1049	shall permit any other person to vote his or her ballot, and any
1050	such ballots improperly cast shall be deemed invalid, provided
1051	any unit owner who violates this provision may be fined by the
1052	association in accordance with s. 718.303. A unit owner who
1053	needs assistance in casting the ballot for the reasons stated in
1054	s. 101.051 may obtain assistance in casting the ballot. The
1055	regular election shall occur on the date of the annual meeting.
1056	The provisions of this subparagraph shall not apply to timeshare
1057	condominium associations. Notwithstanding the provisions of this
1058	subparagraph, an election is not required unless more candidates
1059	file notices of intent to run or are nominated than board
1060	vacancies exist.
1061	4.  Any approval by unit owners called for by this chapter
1062	or the applicable declaration or bylaws, including, but not
1063	limited to, the approval requirement in s. 718.111(8), shall be
1064	made at a duly noticed meeting of unit owners and shall be
1065	subject to all requirements of this chapter or the applicable
1066	condominium documents relating to unit owner decisionmaking,
1067	except that unit owners may take action by written agreement,
1068	without meetings, on matters for which action by written
1069	agreement without meetings is expressly allowed by the
1070	applicable bylaws or declaration or any statute that provides
1071	for such action.
1072	5.  Unit owners may waive notice of specific meetings if
1073	allowed by the applicable bylaws or declaration or any statute.
1074	If authorized by the bylaws, notice of meetings of the board of
1075	administration, unit owner meetings, except unit owner meetings
1076	called to recall board members under paragraph (j), and
1077	committee meetings may be given by electronic transmission to
1078	unit owners who consent to receive notice by electronic
1079	transmission.
1080	6.  Unit owners shall have the right to participate in
1081	meetings of unit owners with reference to all designated agenda
1082	items. However, the association may adopt reasonable rules
1083	governing the frequency, duration, and manner of unit owner
1084	participation.
1085	7.  Any unit owner may tape record or videotape a meeting
1086	of the unit owners subject to reasonable rules adopted by the
1087	division.
1088	8.  Unless otherwise provided in the bylaws, any vacancy
1089	occurring on the board before the expiration of a term may be
1090	filled by the affirmative vote of the majority of the remaining
1091	directors, even if the remaining directors constitute less than
1092	a quorum, or by the sole remaining director. In the alternative,
1093	a board may hold an election to fill the vacancy, in which case
1094	the election procedures must conform to the requirements of
1095	subparagraph 3. unless the association governs 10 units or less
1096	and has opted out of the statutory election process, in which
1097	case the bylaws of the association control. Unless otherwise
1098	provided in the bylaws, a board member appointed or elected
1099	under this section shall fill the vacancy for the unexpired term
1100	of the seat being filled. Filling vacancies created by recall is
1101	governed by paragraph (j) and rules adopted by the division.
1102
1103	Notwithstanding subparagraphs (b)2. and (d)3., an association of
1104	10 or fewer units may, by the affirmative vote of a majority of
1105	the total voting interests, provide for different voting and
1106	election procedures in its bylaws, which vote may be by a proxy
1107	specifically delineating the different voting and election
1108	procedures. The different voting and election procedures may
1109	provide for elections to be conducted by limited or general
1110	proxy.
1111	(e)  Budget meeting.--
1112	1.  Any meeting at which a proposed annual budget of an
1113	association will be considered by the board or unit owners shall
1114	be open to all unit owners. At least 14 days prior to such a
1115	meeting, the board shall hand deliver to each unit owner, mail
1116	to each unit owner at the address last furnished to the
1117	association by the unit owner, or electronically transmit to the
1118	location furnished by the unit owner for that purpose a notice
1119	of such meeting and a copy of the proposed annual budget. An
1120	officer or manager of the association, or other person providing
1121	notice of such meeting, shall execute an affidavit evidencing
1122	compliance with such notice requirement, and such affidavit
1123	shall be filed among the official records of the association.
1124	2.a.  If a board adopts in any fiscal year an annual budget
1125	which requires assessments against unit owners which exceed 115
1126	percent of assessments for the preceding fiscal year, the board
1127	shall conduct a special meeting of the unit owners to consider a
1128	substitute budget if the board receives, within 21 days after
1129	adoption of the annual budget, a written request for a special
1130	meeting from at least 10 percent of all voting interests. The
1131	special meeting shall be conducted within 60 days after adoption
1132	of the annual budget. At least 14 days prior to such special
1133	meeting, the board shall hand deliver to each unit owner, or
1134	mail to each unit owner at the address last furnished to the
1135	association, a notice of the meeting. An officer or manager of
1136	the association, or other person providing notice of such
1137	meeting shall execute an affidavit evidencing compliance with
1138	this notice requirement, and such affidavit shall be filed among
1139	the official records of the association. Unit owners may
1140	consider and adopt a substitute budget at the special meeting. A
1141	substitute budget is adopted if approved by a majority of all
1142	voting interests unless the bylaws require adoption by a greater
1143	percentage of voting interests. If there is not a quorum at the
1144	special meeting or a substitute budget is not adopted, the
1145	annual budget previously adopted by the board shall take effect
1146	as scheduled.
1147	b.  Any determination of whether assessments exceed 115
1148	percent of assessments for the prior fiscal year shall exclude
1149	any authorized provision for reasonable reserves for repair or
1150	replacement of the condominium property, anticipated expenses of
1151	the association which the board does not expect to be incurred
1152	on a regular or annual basis, or assessments for betterments to
1153	the condominium property.
1154	c.  If the developer controls the board, assessments shall
1155	not exceed 115 percent of assessments for the prior fiscal year
1156	unless approved by a majority of all voting interests.
1157	(f)  Annual budget.--
1158	1.  The proposed annual budget of estimated revenues and
1159	common expenses shall be detailed and shall show the amounts
1160	budgeted by accounts and expense classifications, including, if
1161	applicable, but not limited to, those expenses listed in s.
1162	718.504(21). A multicondominium association shall adopt a
1163	separate budget of common expenses for each condominium the
1164	association operates and shall adopt a separate budget of common
1165	expenses for the association. In addition, if the association
1166	maintains limited common elements with the cost to be shared
1167	only by those entitled to use the limited common elements as
1168	provided for in s. 718.113(1), the budget or a schedule attached
1169	thereto shall show amounts budgeted therefor. If, after turnover
1170	of control of the association to the unit owners, any of the
1171	expenses listed in s. 718.504(21) are not applicable, they need
1172	not be listed.
1173	2.  In addition to annual operating expenses, the budget
1174	shall include reserve accounts for capital expenditures and
1175	deferred maintenance. These accounts shall include, but are not
1176	limited to, roof replacement, building painting, and pavement
1177	resurfacing, regardless of the amount of deferred maintenance
1178	expense or replacement cost, and for any other item for which
1179	the deferred maintenance expense or replacement cost exceeds
1180	$10,000. The amount to be reserved shall be computed by means of
1181	a formula which is based upon estimated remaining useful life
1182	and estimated replacement cost or deferred maintenance expense
1183	of each reserve item. The association may adjust replacement
1184	reserve assessments annually to take into account any changes in
1185	estimates or extension of the useful life of a reserve item
1186	caused by deferred maintenance. This subsection does not apply
1187	to an adopted budget in which the members of an association have
1188	determined, by a majority vote at a duly called meeting of the
1189	association, to provide no reserves or less reserves than
1190	required by this subsection. However, prior to turnover of
1191	control of an association by a developer to unit owners other
1192	than a developer pursuant to s. 718.301, the developer may vote
1193	to waive the reserves or reduce the funding of reserves for the
1194	first 2 fiscal years of the association's operation, beginning
1195	with the fiscal year in which the initial declaration is
1196	recorded, after which time reserves may be waived or reduced
1197	only upon the vote of a majority of all nondeveloper voting
1198	interests voting in person or by limited proxy at a duly called
1199	meeting of the association. If a meeting of the unit owners has
1200	been called to determine whether to waive or reduce the funding
1201	of reserves, and no such result is achieved or a quorum is not
1202	attained, the reserves as included in the budget shall go into
1203	effect. After the turnover, the developer may vote its voting
1204	interest to waive or reduce the funding of reserves.
1205	3.  Reserve funds and any interest accruing thereon shall
1206	remain in the reserve account or accounts, and shall be used
1207	only for authorized reserve expenditures unless their use for
1208	other purposes is approved in advance by a majority vote at a
1209	duly called meeting of the association. Prior to turnover of
1210	control of an association by a developer to unit owners other
1211	than the developer pursuant to s. 718.301, the developer-
1212	controlled association shall not vote to use reserves for
1213	purposes other than that for which they were intended without
1214	the approval of a majority of all nondeveloper voting interests,
1215	voting in person or by limited proxy at a duly called meeting of
1216	the association.
1217	4.  The only voting interests which are eligible to vote on
1218	questions that involve waiving or reducing the funding of
1219	reserves, or using existing reserve funds for purposes other
1220	than purposes for which the reserves were intended, are the
1221	voting interests of the units subject to assessment to fund the
1222	reserves in question. Proxy questions relating to waiving or
1223	reducing the funding of reserves or using existing reserve funds
1224	for purposes other than purposes for which the reserves were
1225	intended shall contain the following statement in capitalized,
1226	bold letters in a font size larger than any other used on the
1227	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1228	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1229	RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1230	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1231	(g)  Assessments.--The manner of collecting from the unit
1232	owners their shares of the common expenses shall be stated in
1233	the bylaws. Assessments shall be made against units not less
1234	frequently than quarterly in an amount which is not less than
1235	that required to provide funds in advance for payment of all of
1236	the anticipated current operating expenses and for all of the
1237	unpaid operating expenses previously incurred. Nothing in this
1238	paragraph shall preclude the right of an association to
1239	accelerate assessments of an owner delinquent in payment of
1240	common expenses. Accelerated assessments shall be due and
1241	payable on the date the claim of lien is filed. Such accelerated
1242	assessments shall include the amounts due for the remainder of
1243	the budget year in which the claim of lien was filed.
1244	(h)  Amendment of bylaws.--
1245	1.  The method by which the bylaws may be amended
1246	consistent with the provisions of this chapter shall be stated.
1247	If the bylaws fail to provide a method of amendment, the bylaws
1248	may be amended if the amendment is approved by the owners of not
1249	less than two-thirds of the voting interests.
1250	2.  No bylaw shall be revised or amended by reference to
1251	its title or number only. Proposals to amend existing bylaws
1252	shall contain the full text of the bylaws to be amended; new
1253	words shall be inserted in the text underlined, and words to be
1254	deleted shall be lined through with hyphens. However, if the
1255	proposed change is so extensive that this procedure would
1256	hinder, rather than assist, the understanding of the proposed
1257	amendment, it is not necessary to use underlining and hyphens as
1258	indicators of words added or deleted, but, instead, a notation
1259	must be inserted immediately preceding the proposed amendment in
1260	substantially the following language: "Substantial rewording of
1261	bylaw. See bylaw _____ for present text."
1262	3.  Nonmaterial errors or omissions in the bylaw process
1263	will not invalidate an otherwise properly promulgated amendment.
1264	(i)  Transfer fees.--No charge shall be made by the
1265	association or any body thereof in connection with the sale,
1266	mortgage, lease, sublease, or other transfer of a unit unless
1267	the association is required to approve such transfer and a fee
1268	for such approval is provided for in the declaration, articles,
1269	or bylaws. Any such fee may be preset, but in no event may such
1270	fee exceed $100 per applicant other than husband/wife or
1271	parent/dependent child, which are considered one applicant.
1272	However, if the lease or sublease is a renewal of a lease or
1273	sublease with the same lessee or sublessee, no charge shall be
1274	made. The foregoing notwithstanding, an association may, if the
1275	authority to do so appears in the declaration or bylaws, require
1276	that a prospective lessee place a security deposit, in an amount
1277	not to exceed the equivalent of 1 month's rent, into an escrow
1278	account maintained by the association. The security deposit
1279	shall protect against damages to the common elements or
1280	association property. Payment of interest, claims against the
1281	deposit, refunds, and disputes under this paragraph shall be
1282	handled in the same fashion as provided in part II of chapter
1283	83.
1284	(j)  Recall of board members.--Subject to the provisions of
1285	s. 718.301, any member of the board of administration may be
1286	recalled and removed from office with or without cause by the
1287	vote or agreement in writing by a majority of all the voting
1288	interests. A special meeting of the unit owners to recall a
1289	member or members of the board of administration may be called
1290	by 10 percent of the voting interests giving notice of the
1291	meeting as required for a meeting of unit owners, and the notice
1292	shall state the purpose of the meeting. Electronic transmission
1293	may not be used as a method of giving notice of a meeting called
1294	in whole or in part for this purpose.
1295	1.  If the recall is approved by a majority of all voting
1296	interests by a vote at a meeting, the recall will be effective
1297	as provided herein. The board shall duly notice and hold a board
1298	meeting within 5 full business days of the adjournment of the
1299	unit owner meeting to recall one or more board members. At the
1300	meeting, the board shall either certify the recall, in which
1301	case such member or members shall be recalled effective
1302	immediately and shall turn over to the board within 5 full
1303	business days any and all records and property of the
1304	association in their possession, or shall proceed as set forth
1305	in subparagraph 3.
1306	2.  If the proposed recall is by an agreement in writing by
1307	a majority of all voting interests, the agreement in writing or
1308	a copy thereof shall be served on the association by certified
1309	mail or by personal service in the manner authorized by chapter
1310	48 and the Florida Rules of Civil Procedure. The board of
1311	administration shall duly notice and hold a meeting of the board
1312	within 5 full business days after receipt of the agreement in
1313	writing. At the meeting, the board shall either certify the
1314	written agreement to recall a member or members of the board, in
1315	which case such member or members shall be recalled effective
1316	immediately and shall turn over to the board within 5 full
1317	business days any and all records and property of the
1318	association in their possession, or proceed as described in
1319	subparagraph 3.
1320	3.  If the board determines not to certify the written
1321	agreement to recall a member or members of the board, or does
1322	not certify the recall by a vote at a meeting, the board shall,
1323	within 5 full business days after the meeting, file with the
1324	division a petition for arbitration pursuant to the procedures
1325	in s. 718.1255. For the purposes of this section, the unit
1326	owners who voted at the meeting or who executed the agreement in
1327	writing shall constitute one party under the petition for
1328	arbitration. If the arbitrator certifies the recall as to any
1329	member or members of the board, the recall will be effective
1330	upon mailing of the final order of arbitration to the
1331	association. If the association fails to comply with the order
1332	of the arbitrator, the division may take action pursuant to s.
1333	718.501. Any member or members so recalled shall deliver to the
1334	board any and all records of the association in their possession
1335	within 5 full business days of the effective date of the recall.
1336	4.  If the board fails to duly notice and hold a board
1337	meeting within 5 full business days of service of an agreement
1338	in writing or within 5 full business days of the adjournment of
1339	the unit owner recall meeting, the recall shall be deemed
1340	effective and the board members so recalled shall immediately
1341	turn over to the board any and all records and property of the
1342	association.
1343	5.  If a vacancy occurs on the board as a result of a
1344	recall or removal and less than a majority of the board members
1345	are removed, the vacancy may be filled by the affirmative vote
1346	of a majority of the remaining directors, notwithstanding any
1347	provision to the contrary contained in this subsection. If
1348	vacancies occur on the board as a result of a recall and a
1349	majority or more of the board members are removed, the vacancies
1350	shall be filled in accordance with procedural rules to be
1351	adopted by the division, which rules need not be consistent with
1352	this subsection. The rules must provide procedures governing the
1353	conduct of the recall election as well as the operation of the
1354	association during the period after a recall but prior to the
1355	recall election.
1356	(k)  Arbitration.--There shall be a provision for mandatory
1357	nonbinding arbitration as provided for in s. 718.1255.
1358	(l)  Certificate of compliance.--There shall be a provision
1359	that a certificate of compliance from a licensed electrical
1360	contractor or electrician may be accepted by the association's
1361	board as evidence of compliance of the condominium units with
1362	the applicable fire and life safety code. Notwithstanding the
1363	provisions of chapter 633 or of any other code, statute,
1364	ordinance, administrative rule, or regulation, or any
1365	interpretation of the foregoing, an association, condominium, or
1366	unit owner is not obligated to retrofit the common elements or
1367	units of a residential condominium with a fire sprinkler system
1368	or other engineered lifesafety system in a building that has
1369	been certified for occupancy by the applicable governmental
1370	entity, if the unit owners have voted to forego such
1371	retrofitting and engineered lifesafety system by the affirmative
1372	vote of two-thirds of all voting interests in the affected
1373	condominium. However, a condominium association may not vote to
1374	forego the retrofitting with a fire sprinkler system of common
1375	areas in a high-rise building. For purposes of this subsection,
1376	the term "high-rise building" means a building that is greater
1377	than 75 feet in height where the building height is measured
1378	from the lowest level of fire department access to the floor of
1379	the highest occupiable story. For purposes of this subsection,
1380	the term "common areas" means any enclosed hallway, corridor,
1381	lobby, stairwell, or entryway. In no event shall the local
1382	authority having jurisdiction require completion of retrofitting
1383	of common areas with a sprinkler system before the end of 2014.
1384	1.  A vote to forego retrofitting may be obtained by
1385	limited proxy or by a ballot personally cast at a duly called
1386	membership meeting, or by execution of a written consent by the
1387	member, and shall be effective upon the recording of a
1388	certificate attesting to such vote in the public records of the
1389	county where the condominium is located. The association shall
1390	mail, hand deliver, or electronically transmit to each unit
1391	owner written notice at least 14 days prior to such membership
1392	meeting in which the vote to forego retrofitting of the required
1393	fire sprinkler system is to take place. Within 30 days after the
1394	association's opt-out vote, notice of the results of the opt-out
1395	vote shall be mailed, hand delivered, or electronically
1396	transmitted to all unit owners. Evidence of compliance with this
1397	30-day notice shall be made by an affidavit executed by the
1398	person providing the notice and filed among the official records
1399	of the association. After such notice is provided to each owner,
1400	a copy of such notice shall be provided by the current owner to
1401	a new owner prior to closing and shall be provided by a unit
1402	owner to a renter prior to signing a lease.
1403	2.  As part of the information collected annually from
1404	condominiums, the division shall require condominium
1405	associations to report the membership vote and recording of a
1406	certificate under this subsection and, if retrofitting has been
1407	undertaken, the per-unit cost of such work. The division shall
1408	annually report to the Division of State Fire Marshal of the
1409	Department of Financial Services the number of condominiums that
1410	have elected to forego retrofitting.
1411	(m)  Common elements; limited power to convey.--
1412	1.  With respect to condominiums created on or after
1413	October 1, 1994, the bylaws shall include a provision granting
1414	the association a limited power to convey a portion of the
1415	common elements to a condemning authority for the purpose of
1416	providing utility easements, right-of-way expansion, or other
1417	public purposes, whether negotiated or as a result of eminent
1418	domain proceedings.
1419	2.  In any case where the bylaws are silent as to the
1420	association's power to convey common elements as described in
1421	subparagraph 1., the bylaws shall be deemed to include the
1422	provision described in subparagraph 1.
1423	(n)  Director or officer delinquencies.--A director or
1424	officer more than 90 days delinquent in the payment of regular
1425	assessments shall be deemed to have abandoned the office,
1426	creating a vacancy in the office to be filled according to law.
1427	(o)  Director and officer offenses.--A director or officer
1428	charged with a felony theft or embezzlement offense involving
1429	the association's funds or property shall be removed from
1430	office, creating a vacancy in the office to be filled according
1431	to law. While such director or officer has such criminal charge
1432	pending, he or she may not be appointed or elected to a position
1433	as a director or officer. However, should the charges be
1434	resolved without a finding of guilt, the director of officer
1435	shall be reinstated for the remainder of his or her term of
1436	office, if any.
1437	Section 8.  Section 718.1124, Florida Statutes, is amended
1438	to read:
1439	718.1124  Failure to fill vacancies on board of
1440	administration sufficient to constitute a quorum; appointment of
1441	receiver upon petition of unit owner.--
1442	(1)  If an association fails to fill vacancies on the board
1443	of administration sufficient to constitute a quorum in
1444	accordance with the bylaws, any unit owner may give notice of
1445	his or her intent to apply to the circuit court within whose
1446	jurisdiction the condominium lies for the appointment of a
1447	receiver to manage the affairs of the association. The form of
1448	the notice shall be as follows:
1449
1450	NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP
1451
1452	YOU ARE HEREBY NOTIFIED that the undersigned owner of
1453	a condominium unit in (name of condominium) intends to
1454	file a petition in the circuit court for appointment
1455	of a receiver to manage the affairs of the association
1456	on the grounds that the association has failed to fill
1457	vacancies on the board of administration sufficient to
1458	constitute a quorum. This petition will not be filed
1459	if the vacancies are filled within 30 days after the
1460	date on which this notice was sent or posted,
1461	whichever is later. If a receiver is appointed, the
1462	receiver shall have all of the powers of the board and
1463	shall be entitled to receive a salary and
1464	reimbursement of all costs and attorney's fees payable
1465	from association funds.
1466
1467	(name and address of petitioning unit owner)
1468
1469	(2)  The notice required by subsection (1) must be provided
1470	by At least 30 days prior to applying to the circuit court, the
1471	unit owner shall mail to the association by certified mail or
1472	personal delivery, must be posted and post in a conspicuous
1473	place on the condominium property, and must be provided by the
1474	unit owner to every other unit owner of the association by
1475	certified mail or personal delivery. The a notice must be posted
1476	and mailed or delivered at least 30 days prior to the filing of
1477	a petition seeking receivership. Notice by mail to a unit owner
1478	shall be sent to the address used by the county property
1479	appraiser for notice to the unit owner, except that where a unit
1480	owner's address is not publicly available the notice shall be
1481	mailed to the unit describing the intended action, giving the
1482	association the opportunity to fill the vacancies.
1483	(3)  If during such time the association fails to fill the
1484	vacancies within 30 days after the notice required by subsection
1485	(1) is posted and mailed or delivered, the unit owner may
1486	proceed with the petition.
1487	(4)  If a receiver is appointed, all unit owners shall be
1488	given written notice of such appointment as provided in s.
1489	718.127.
1490	(5)  The association shall be responsible for the salary of
1491	the receiver, court costs, and attorney's fees. The receiver
1492	shall have all powers and duties of a duly constituted board of
1493	administration and shall serve until the association fills
1494	vacancies on the board sufficient to constitute a quorum and the
1495	court relieves the receiver of the appointment.
1496	Section 9.  Paragraph (a) of subsection (2) and subsection
1497	(5) of section 718.113, Florida Statutes, are amended, and
1498	subsections (6) and (7) are added to that section, to read:
1499	718.113  Maintenance; limitation upon improvement; display
1500	of flag; hurricane shutters; display of religious decorations.--
1501	(2)(a)  Except as otherwise provided in this section, there
1502	shall be no material alteration or substantial additions to the
1503	common elements or to real property which is association
1504	property, except in a manner provided in the declaration as
1505	originally recorded or as amended under the procedures provided
1506	therein. If the declaration as originally recorded or as amended
1507	under the procedures provided therein does not specify the
1508	procedure for approval of material alterations or substantial
1509	additions, 75 percent of the total voting interests of the
1510	association must approve the alterations or additions. This
1511	paragraph is intended to clarify existing law and applies to
1512	associations existing on October 1, 2008.
1513	(5)  Each board of administration shall adopt hurricane
1514	shutter specifications for each building within each condominium
1515	operated by the association which shall include color, style,
1516	and other factors deemed relevant by the board. All
1517	specifications adopted by the board shall comply with the
1518	applicable building code. Notwithstanding any provision to the
1519	contrary in the condominium documents, if approval is required
1520	by the documents, a board shall not refuse to approve the
1521	installation or replacement of hurricane shutters conforming to
1522	the specifications adopted by the board.
1523	(a)  The board may, subject to the provisions of s.
1524	718.3026, and the approval of a majority of voting interests of
1525	the condominium, install hurricane shutters or hurricane
1526	protection that complies with or exceeds the applicable building
1527	code, or both, except that a vote of the owners is not required
1528	if the maintenance, repair, and replacement of hurricane
1529	shutters or other forms of hurricane protection are the
1530	responsibility of the association pursuant to the declaration of
1531	condominium and may maintain, repair, or replace such approved
1532	hurricane shutters, whether on or within common elements,
1533	limited common elements, units, or association property.
1534	However, where hurricane protection or laminated glass or window
1535	film architecturally designed to function as hurricane
1536	protection which complies with or exceeds the current applicable
1537	building code has been previously installed, the board may not
1538	install hurricane shutters or other hurricane protection.
1539	(b)  The association shall be responsible for the
1540	maintenance, repair, and replacement of the hurricane shutters
1541	or other hurricane protection authorized by this subsection if
1542	such hurricane shutters or other hurricane protection are the
1543	responsibility of the association pursuant to the declaration of
1544	condominium. If the hurricane shutters or other hurricane
1545	protection authorized by this subsection are the responsibility
1546	of the unit owners pursuant to the declaration of condominium,
1547	the responsibility for the maintenance, repair, and replacement
1548	of such items shall be the responsibility of the unit owner.
1549	(c)  The board may operate shutters installed pursuant to
1550	this subsection without permission of the unit owners only where
1551	such operation is necessary to preserve and protect the
1552	condominium property and association property. The installation,
1553	replacement, operation, repair, and maintenance of such shutters
1554	in accordance with the procedures set forth herein shall not be
1555	deemed a material alteration to the common elements or
1556	association property within the meaning of this section.
1557	(d)  Notwithstanding any provision to the contrary in the
1558	condominium documents, if approval is required by the documents,
1559	a board shall not refuse to approve the installation or
1560	replacement of hurricane shutters by a unit owner conforming to
1561	the specifications adopted by the board.
1562	(6)  As to any condominium building greater than three
1563	stories in height, at least every 5 years, and within 5 years if
1564	not available for inspection on October 1, 2008, the board shall
1565	have the condominium building inspected to provide a report
1566	under seal of an architect or engineer authorized to practice in
1567	this state attesting to required maintenance, useful life, and
1568	replacement costs of the common elements. However, if approved
1569	by a majority of the voting interests present at a properly
1570	called meeting of the association, an association may waive this
1571	requirement. Such meeting and approval must occur prior to the
1572	end of the 5-year period and is effective only for that 5-year
1573	period.
1574	(7)  An association may not refuse the request of a unit
1575	owner for a reasonable accommodation for the attachment on the
1576	mantle or frame of the door of the unit owner a religious object
1577	not to exceed 3 inches wide, 6 inches high, and 1.5 inches deep.
1578	Section 10.  Paragraph (e) of subsection (1) of section
1579	718.115, Florida Statutes, is amended to read:
1580	718.115  Common expenses and common surplus.--
1581	(1)
1582	(e)  The expense of installation, replacement, operation,
1583	repair, and maintenance of hurricane shutters or other hurricane
1584	protection by the board pursuant to s. 718.113(5) shall
1585	constitute a common expense as defined herein and shall be
1586	collected as provided in this section if the association is
1587	responsible for the maintenance, repair, and replacement of the
1588	hurricane shutters or other hurricane protection pursuant to the
1589	declaration of condominium. However, if the maintenance, repair,
1590	and replacement of the hurricane shutters or other hurricane
1591	protection is the responsibility of the unit owners pursuant to
1592	the declaration of condominium, the cost of the installation of
1593	the hurricane shutters or other hurricane protection shall not
1594	be a common expense, but shall be charged individually to the
1595	unit owners based on the cost of installation of the hurricane
1596	shutters or other hurricane protection appurtenant to the unit.
1597	Notwithstanding the provisions of s. 718.116(9), and regardless
1598	of whether or not the declaration requires the association or
1599	unit owners maintain, repair, or replace hurricane shutters or
1600	other hurricane protection a unit owner who has previously
1601	installed hurricane shutters in accordance with s. 718.113(5)
1602	other hurricane protection or laminated glass architecturally
1603	designed to function as hurricane protection, which hurricane
1604	shutters or other hurricane protection or laminated glass comply
1605	complies with the current applicable building code shall receive
1606	a credit equal to the pro rata portion of the assessed
1607	installation cost assigned to each unit. However, such unit
1608	owner shall remain responsible for the pro rata share of
1609	expenses for hurricane shutters or other hurricane protection
1610	installed on common elements and association property by the
1611	board pursuant to s. 718.113(5), and shall remain responsible
1612	for a pro rata share of the expense of the replacement,
1613	operation, repair, and maintenance of such shutters or other
1614	hurricane protection.
1615	Section 11.  Paragraph (a) of subsection (7) of section
1616	718.117, Florida Statutes, is amended to read:
1617	718.117  Termination of condominium.--
1618	(7)  NATURAL DISASTERS.--
1619	(a)  If, after a natural disaster, the identity of the
1620	directors or their right to hold office is in doubt, if they are
1621	deceased or unable to act, if they fail or refuse to act, or if
1622	they cannot be located, any interested person may petition the
1623	circuit court to determine the identity of the directors or, if
1624	found to be in the best interests of the unit owners, to appoint
1625	a receiver to conclude the affairs of the association after a
1626	hearing following notice to such persons as the court directs.
1627	Lienholders shall be given notice of the petition and have the
1628	right to propose persons for the consideration by the court as
1629	receiver. If a receiver is appointed, the court shall direct the
1630	receiver to provide to all unit owners written notice of his or
1631	her appointment as receiver. Such notice shall be mailed or
1632	delivered within 10 days after the appointment. Notice by mail
1633	to a unit owner shall be sent to the address used by the county
1634	property appraiser for notice to the unit owner.
1635	Section 12.  Subsection (4) is added to section 718.121,
1636	Florida Statutes, to read:
1637	718.121  Liens.--
1638	(4)  Except as otherwise provided in this chapter, no lien
1639	may be filed by the association against a condominium unit until
1640	30 days after the date on which a notice of intent to file a
1641	lien has been delivered to the owner by certified mail, return
1642	receipt requested, and by first-class United States mail to the
1643	owner at his or her last known address as reflected in the
1644	records of the association. However, if the address reflected in
1645	the records is outside the United States, then the notice must
1646	be sent by first-class United States mail to the unit and to the
1647	last known address by regular mail with international postage,
1648	which shall be deemed sufficient. Delivery of the notice shall
1649	be deemed given upon mailing as required by this subsection.
1650	Alternatively, notice shall be complete if served on the unit
1651	owner in the manner authorized by chapter 48 and the Florida
1652	Rules of Civil Procedure.
1653	Section 13.  Section 718.1224, Florida Statutes, is created
1654	to read:
1655	718.1224  Prohibition against SLAPP suits.--
1656	(1)  It is the intent of the Legislature to protect the
1657	right of condominium unit owners to exercise their rights to
1658	instruct their representatives and petition for redress of
1659	grievances before the various governmental entities of this
1660	state as protected by the First Amendment to the United States
1661	Constitution and s. 5, Art. I of the State Constitution. The
1662	Legislature recognizes that strategic lawsuits against public
1663	participation, or "SLAPP suits," as they are typically referred
1664	to, have occurred when association members are sued by
1665	individuals, business entities, or governmental entities arising
1666	out of a condominium unit owner's appearance and presentation
1667	before a governmental entity on matters related to the
1668	condominium association. However, it is the public policy of
1669	this state that governmental entities, business organizations,
1670	and individuals not engage in SLAPP suits, because such actions
1671	are inconsistent with the right of condominium unit owners to
1672	participate in the state's institutions of government.
1673	Therefore, the Legislature finds and declares that prohibiting
1674	such lawsuits by governmental entities, business entities, and
1675	individuals against condominium unit owners who address matters
1676	concerning their condominium association will preserve this
1677	fundamental state policy, preserve the constitutional rights of
1678	condominium unit owners, and ensure the continuation of
1679	representative government in this state. It is the intent of the
1680	Legislature that such lawsuits be expeditiously disposed of by
1681	the courts. As used in this subsection, the term "governmental
1682	entity" means the state, including the executive, legislative,
1683	and judicial branches of government; the independent
1684	establishments of the state, counties, municipalities,
1685	districts, authorities, boards, or commissions; or any agencies
1686	of these branches that are subject to chapter 286.
1687	(2)  A governmental entity, business organization, or
1688	individual in this state may not file or cause to be filed
1689	through its employees or agents any lawsuit, cause of action,
1690	claim, cross-claim, or counterclaim against a condominium unit
1691	owner without merit and solely because such condominium unit
1692	owner has exercised the right to instruct his or her
1693	representatives or the right to petition for redress of
1694	grievances before the various governmental entities of this
1695	state, as protected by the First Amendment to the United States
1696	Constitution and s. 5, Art. I of the State Constitution.
1697	(3)  A condominium unit owner sued by a governmental
1698	entity, business organization, or individual in violation of
1699	this section has a right to an expeditious resolution of a claim
1700	that the suit is in violation of this section. A condominium
1701	unit owner may petition the court for an order dismissing the
1702	action or granting final judgment in favor of that condominium
1703	unit owner. The petitioner may file a motion for summary
1704	judgment, together with supplemental affidavits, seeking a
1705	determination that the governmental entity's, business
1706	organization's, or individual's lawsuit has been brought in
1707	violation of this section. The governmental entity, business
1708	organization, or individual shall thereafter file its response
1709	and any supplemental affidavits. As soon as practicable, the
1710	court shall set a hearing on the petitioner's motion, which
1711	shall be held at the earliest possible time after the filing of
1712	the governmental entity's, business organization's, or
1713	individual's response. The court may award the condominium unit
1714	owner sued by the governmental entity, business organization, or
1715	individual actual damages arising from the governmental
1716	entity's, individual's, or business organization's violation of
1717	this section. A court may treble the damages awarded to a
1718	prevailing condominium unit owner and shall state the basis for
1719	the treble damages award in its judgment. The court shall award
1720	the prevailing party reasonable attorney's fees and costs
1721	incurred in connection with a claim that an action was filed in
1722	violation of this section.
1723	(4)  Condominium associations may not expend association
1724	funds in prosecuting a SLAPP suit against a condominium unit
1725	owner.
1726	Section 14.  Paragraph (b) of subsection (3) of section
1727	718.1255, Florida Statutes, is amended to read:
1728	718.1255  Alternative dispute resolution; voluntary
1729	mediation; mandatory nonbinding arbitration; legislative
1730	findings.--
1731	(3)  LEGISLATIVE FINDINGS.--
1732	(b)  The Legislature finds that the courts are becoming
1733	overcrowded with condominium and other disputes, and further
1734	finds that alternative dispute resolution has been making
1735	progress in reducing court dockets and trials and in offering a
1736	more efficient, cost-effective option to court litigation.
1737	However, the Legislature also finds that alternative dispute
1738	resolution should not be used as a mechanism to encourage the
1739	filing of frivolous or nuisance suits.
1740	Section 15.  Section 718.1265, Florida Statutes, is created
1741	to read:
1742	718.1265  Association emergency powers.--
1743	(1)  To the extent allowed by law and unless specifically
1744	prohibited by the declaration of condominium, the articles, or
1745	the bylaws of an association, and consistent with the provisions
1746	of s. 617.0830, the board of administration, in response to
1747	damage caused by an event for which a state of emergency is
1748	declared pursuant to s. 252.36 in the locale in which the
1749	condominium is located, may, but is not required to, exercise
1750	the following powers:
1751	(a)  Conduct board meetings and membership meetings with
1752	notice given as is practicable. Such notice may be given in any
1753	practicable manner, including publication, radio, United States
1754	mail, the Internet, public service announcements, and
1755	conspicuous posting on the condominium property or any other
1756	means the board deems reasonable under the circumstances. Notice
1757	of board decisions may be communicated as provided in this
1758	paragraph.
1759	(b)  Cancel and reschedule any association meeting.
1760	(c)  Name as assistant officers persons who are not
1761	directors, which assistant officers shall have the same
1762	authority as the executive officers to whom they are assistants
1763	during the state of emergency to accommodate the incapacity or
1764	unavailability of any officer of the association.
1765	(d)  Relocate the association's principal office or
1766	designate alternative principal offices.
1767	(e)  Enter into agreements with local counties and
1768	municipalities to assist counties and municipalities with debris
1769	removal.
1770	(f)  Implement a disaster plan before or immediately
1771	following the event for which a state of emergency is declared
1772	which may include, but is not limited to, shutting down or off
1773	elevators; electricity; water, sewer, or security systems; or
1774	air conditioners.
1775	(g)  Based upon advice of emergency management officials or
1776	upon the advice of licensed professionals retained by the board,
1777	determine any portion of the condominium property unavailable
1778	for entry or occupancy by unit owners, family members, tenants,
1779	guests, agents, or invitees to protect the health, safety, or
1780	welfare of such persons.
1781	(h)  Require the evacuation of the condominium property in
1782	the event of a mandatory evacuation order in the locale in which
1783	the condominium is located. Should any unit owner or other
1784	occupant of a condominium fail or refuse to evacuate the
1785	condominium property where the board has required evacuation,
1786	the association shall be immune from liability or injury to
1787	persons or property arising from such failure or refusal.
1788	(i)  Based upon advice of emergency management officials or
1789	upon the advice of licensed professionals retained by the board,
1790	determine whether the condominium property can be safely
1791	inhabited or occupied. However, such determination is not
1792	conclusive as to any determination of habitability pursuant to
1793	the declaration.
1794	(j)  Mitigate further damage, including taking action to
1795	contract for the removal of debris and to prevent or mitigate
1796	the spread of fungus, including, but not limited to, mold or
1797	mildew, by removing and disposing of wet drywall, insulation,
1798	carpet, cabinetry, or other fixtures on or within the
1799	condominium property, even if the unit owner is obligated by the
1800	declaration or law to insure or replace those fixtures and to
1801	remove personal property from a unit.
1802	(k)  Contract, on behalf of any unit owner or owners, for
1803	items or services for which the owners are otherwise
1804	individually responsible for, but which are necessary to prevent
1805	further damage to the condominium property. In such event, the
1806	unit owner or owners on whose behalf the board has contracted
1807	are responsible for reimbursing the association for the actual
1808	costs of the items or services, and the association may use its
1809	lien authority provided by s. 718.116 to enforce collection of
1810	the charges. Without limitation, such items or services may
1811	include the drying of units, the boarding of broken windows or
1812	doors, and the replacement of damaged air conditioners or air
1813	handlers to provide climate control in the units or other
1814	portions of the property.
1815	(l)  Regardless of any provision to the contrary and even
1816	if such authority does not specifically appear in the
1817	declaration of condominium, articles, or bylaws of the
1818	association, levy special assessments without a vote of the
1819	owners.
1820	(m)  Without unit owners' approval, borrow money and pledge
1821	association assets as collateral to fund emergency repairs and
1822	carry out the duties of the association when operating funds are
1823	insufficient. This paragraph does not limit the general
1824	authority of the association to borrow money, subject to such
1825	restrictions as are contained in the declaration of condominium,
1826	articles, or bylaws of the association.
1827	(2)  The special powers authorized under subsection (1)
1828	shall be limited to that time reasonably necessary to protect
1829	the health, safety, and welfare of the association and the unit
1830	owners and the unit owners' family members, tenants, guests,
1831	agents, or invitees and shall be reasonably necessary to
1832	mitigate further damage and make emergency repairs.
1833	Section 16.  Section 718.127, Florida Statutes, is created
1834	to read:
1835	718.127  Receivership notification.--Upon the appointment
1836	of a receiver by a court for any reason relating to a
1837	condominium association, the court shall direct the receiver to
1838	provide to all unit owners written notice of his or her
1839	appointment as receiver. Such notice shall be mailed or
1840	delivered within 10 days after the appointment. Notice by mail
1841	to a unit owner shall be sent to the address used by the county
1842	property appraiser for notice to the unit owner.
1843	Section 17.  Subsection (1) of section 718.301, Florida
1844	Statutes, is amended, and paragraph (p) is added to subsection
1845	(4) of that section, to read:
1846	718.301  Transfer of association control; claims of defect
1847	by association.--
1848	(1)  When unit owners other than the developer own 15
1849	percent or more of the units in a condominium that will be
1850	operated ultimately by an association, the unit owners other
1851	than the developer shall be entitled to elect no less than one-
1852	third of the members of the board of administration of the
1853	association. Unit owners other than the developer are entitled
1854	to elect not less than a majority of the members of the board of
1855	administration of an association:
1856	(a)  Three years after 50 percent of the units that will be
1857	operated ultimately by the association have been conveyed to
1858	purchasers;
1859	(b)  Three months after 90 percent of the units that will
1860	be operated ultimately by the association have been conveyed to
1861	purchasers;
1862	(c)  When all the units that will be operated ultimately by
1863	the association have been completed, some of them have been
1864	conveyed to purchasers, and none of the others are being offered
1865	for sale by the developer in the ordinary course of business;
1866	(d)  When some of the units have been conveyed to
1867	purchasers and none of the others are being constructed or
1868	offered for sale by the developer in the ordinary course of
1869	business; or
1870	(e)  When the developer files a petition seeking protection
1871	in bankruptcy;
1872	(f)  When a receiver for the developer is appointed by a
1873	circuit court and is not discharged within 30 days after such
1874	appointment; or
1875	(g)(e)  Seven years after recordation of the declaration of
1876	condominium; or, in the case of an association which may
1877	ultimately operate more than one condominium, 7 years after
1878	recordation of the declaration for the first condominium it
1879	operates; or, in the case of an association operating a phase
1880	condominium created pursuant to s. 718.403, 7 years after
1881	recordation of the declaration creating the initial phase,
1882
1883	whichever occurs first. The developer is entitled to elect at
1884	least one member of the board of administration of an
1885	association as long as the developer holds for sale in the
1886	ordinary course of business at least 5 percent, in condominiums
1887	with fewer than 500 units, and 2 percent, in condominiums with
1888	more than 500 units, of the units in a condominium operated by
1889	the association. Following the time the developer relinquishes
1890	control of the association, the developer may exercise the right
1891	to vote any developer-owned units in the same manner as any
1892	other unit owner except for purposes of reacquiring control of
1893	the association or selecting the majority members of the board
1894	of administration.
1895	(4)  At the time that unit owners other than the developer
1896	elect a majority of the members of the board of administration
1897	of an association, the developer shall relinquish control of the
1898	association, and the unit owners shall accept control.
1899	Simultaneously, or for the purposes of paragraph (c) not more
1900	than 90 days thereafter, the developer shall deliver to the
1901	association, at the developer's expense, all property of the
1902	unit owners and of the association which is held or controlled
1903	by the developer, including, but not limited to, the following
1904	items, if applicable, as to each condominium operated by the
1905	association:
1906	(p)  A report included in the official records, under seal
1907	of an architect or engineer authorized to practice in this
1908	state, attesting to required maintenance, useful life, and
1909	replacement costs of the following applicable common elements
1910	comprising a turnover inspection report:
1911	1.  Roof.
1912	2.  Structure.
1913	3.  Fireproofing and fire protection systems.
1914	4.  Elevators.
1915	5.  Heating and cooling systems.
1916	6.  Plumbing.
1917	7.  Electrical systems.
1918	8.  Swimming pool or spa and equipment.
1919	9.  Seawalls.
1920	10.  Pavement and parking areas.
1921	11.  Drainage systems.
1922	12.  Painting.
1923	13.  Irrigation systems.
1924	Section 18.  Paragraph (f) is added to subsection (1) of
1925	section 718.3025, Florida Statutes, to read:
1926	718.3025  Agreements for operation, maintenance, or
1927	management of condominiums; specific requirements.--
1928	(1)  No written contract between a party contracting to
1929	provide maintenance or management services and an association
1930	which contract provides for operation, maintenance, or
1931	management of a condominium association or property serving the
1932	unit owners of a condominium shall be valid or enforceable
1933	unless the contract:
1934	(f)  Discloses any financial or ownership interest a board
1935	member or any party providing maintenance or management services
1936	to the association holds with the contracting party.
1937	Section 19.  Section 718.3026, Florida Statutes, is amended
1938	to read:
1939	718.3026  Contracts for products and services; in writing;
1940	bids; exceptions.--Associations with 10 or fewer with less than
1941	100 units may opt out of the provisions of this section if two-
1942	thirds of the unit owners vote to do so, which opt-out may be
1943	accomplished by a proxy specifically setting forth the exception
1944	from this section.
1945	(1)  All contracts as further described herein or any
1946	contract that is not to be fully performed within 1 year after
1947	the making thereof, for the purchase, lease, or renting of
1948	materials or equipment to be used by the association in
1949	accomplishing its purposes under this chapter, and all contracts
1950	for the provision of services, shall be in writing. If a
1951	contract for the purchase, lease, or renting of materials or
1952	equipment, or for the provision of services, requires payment by
1953	the association on behalf of any condominium operated by the
1954	association in the aggregate that exceeds 5 percent of the total
1955	annual budget of the association, including reserves, the
1956	association shall obtain competitive bids for the materials,
1957	equipment, or services. Nothing contained herein shall be
1958	construed to require the association to accept the lowest bid.
1959	(2)(a)1.  Notwithstanding the foregoing, contracts with
1960	employees of the association, and contracts for attorney,
1961	accountant, architect, community association manager, timeshare
1962	management firm, engineering, and landscape architect services
1963	are not subject to the provisions of this section.
1964	2.  A contract executed before January 1, 1992, and any
1965	renewal thereof, is not subject to the competitive bid
1966	requirements of this section. If a contract was awarded under
1967	the competitive bid procedures of this section, any renewal of
1968	that contract is not subject to such competitive bid
1969	requirements if the contract contains a provision that allows
1970	the board to cancel the contract on 30 days' notice. Materials,
1971	equipment, or services provided to a condominium under a local
1972	government franchise agreement by a franchise holder are not
1973	subject to the competitive bid requirements of this section. A
1974	contract with a manager, if made by a competitive bid, may be
1975	made for up to 3 years. A condominium whose declaration or
1976	bylaws provides for competitive bidding for services may operate
1977	under the provisions of that declaration or bylaws in lieu of
1978	this section if those provisions are not less stringent than the
1979	requirements of this section.
1980	(b)  Nothing contained herein is intended to limit the
1981	ability of an association to obtain needed products and services
1982	in an emergency.
1983	(c)  This section shall not apply if the business entity
1984	with which the association desires to enter into a contract is
1985	the only source of supply within the county serving the
1986	association.
1987	(d)  Nothing contained herein shall excuse a party
1988	contracting to provide maintenance or management services from
1989	compliance with s. 718.3025.
1990	(3)  As to any contract or other transaction between an
1991	association and one or more of its directors or any other
1992	corporation, firm, association, or entity in which one or more
1993	of its directors are directors or officers or are financially
1994	interested:
1995	(a)  The association shall comply with the requirements of
1996	s. 617.0832.
1997	(b)  The disclosures required by s. 617.0832 shall be
1998	entered into the written minutes of the meeting.
1999	(c)  Approval of the contract or other transaction shall
2000	require an affirmative vote of two-thirds of the directors
2001	present.
2002	(d)  At the next regular or special meeting of the members,
2003	the existence of the contract or other transaction shall be
2004	disclosed to the members. Upon motion of any member, the
2005	contract or transaction shall be brought up for a vote and may
2006	be canceled by a majority vote of the members present. Should
2007	the members cancel the contract, the association shall only be
2008	liable for the reasonable value of goods and services provided
2009	up to the time of cancellation and shall not be liable for any
2010	termination fee, liquidated damages, or other form of penalty
2011	for such cancellation.
2012	Section 20.  Subsection (3) of section 718.303, Florida
2013	Statutes, is amended to read:
2014	718.303  Obligations of owners; waiver; levy of fine
2015	against unit by association.--
2016	(3)  If the declaration or bylaws so provide, the
2017	association may levy reasonable fines against a unit for the
2018	failure of the owner of the unit, or its occupant, licensee, or
2019	invitee, to comply with any provision of the declaration, the
2020	association bylaws, or reasonable rules of the association. No
2021	fine will become a lien against a unit. No fine may exceed $100
2022	per violation. However, a fine may be levied on the basis of
2023	each day of a continuing violation, with a single notice and
2024	opportunity for hearing, provided that no such fine shall in the
2025	aggregate exceed $1,000. No fine may be levied except after
2026	giving reasonable notice and opportunity for a hearing to the
2027	unit owner and, if applicable, its licensee or invitee. The
2028	hearing must be held before a committee of other unit owners who
2029	are neither board members nor persons residing in a board
2030	member's household. If the committee does not agree with the
2031	fine, the fine may not be levied. The provisions of this
2032	subsection do not apply to unoccupied units.
2033	Section 21.  Section 718.501, Florida Statutes, is amended
2034	to read:
2035	718.501  Authority, responsibility, Powers and duties of
2036	Division of Florida Land Sales, Condominiums, and Mobile
2037	Homes.--
2038	(1)  The Division of Florida Land Sales, Condominiums, and
2039	Mobile Homes of the Department of Business and Professional
2040	Regulation, referred to as the "division" in this part, in
2041	addition to other powers and duties prescribed by chapter 498,
2042	has the power to enforce and ensure compliance with the
2043	provisions of this chapter and rules promulgated pursuant hereto
2044	relating to the development, construction, sale, lease,
2045	ownership, operation, and management of residential condominium
2046	units. In performing its duties, the division has complete
2047	jurisdiction to investigate complaints and enforce compliance
2048	with the provisions of this chapter with respect to associations
2049	that are still under developer control and complaints against
2050	developers involving improper turnover or failure to turnover,
2051	pursuant to s. 718.301. However, after turnover has occurred,
2052	the division shall only have jurisdiction to investigate
2053	complaints related to financial issues, elections, and unit
2054	owner access to association records pursuant to s. 718.111(12).
2055	the following powers and duties:
2056	(a)  The division may make necessary public or private
2057	investigations within or outside this state to determine whether
2058	any person has violated this chapter or any rule or order
2059	hereunder, to aid in the enforcement of this chapter, or to aid
2060	in the adoption of rules or forms hereunder.
2061	(b)  The division may require or permit any person to file
2062	a statement in writing, under oath or otherwise, as the division
2063	determines, as to the facts and circumstances concerning a
2064	matter to be investigated.
2065	(c)  For the purpose of any investigation under this
2066	chapter, the division director or any officer or employee
2067	designated by the division director may administer oaths or
2068	affirmations, subpoena witnesses and compel their attendance,
2069	take evidence, and require the production of any matter which is
2070	relevant to the investigation, including the existence,
2071	description, nature, custody, condition, and location of any
2072	books, documents, or other tangible things and the identity and
2073	location of persons having knowledge of relevant facts or any
2074	other matter reasonably calculated to lead to the discovery of
2075	material evidence. Upon the failure by a person to obey a
2076	subpoena or to answer questions propounded by the investigating
2077	officer and upon reasonable notice to all persons affected
2078	thereby, the division may apply to the circuit court for an
2079	order compelling compliance.
2080	(d)  Notwithstanding any remedies available to unit owners
2081	and associations, if the division has reasonable cause to
2082	believe that a violation of any provision of this chapter or
2083	rule promulgated pursuant hereto has occurred, the division may
2084	institute enforcement proceedings in its own name against any
2085	developer, association, officer, or member of the board of
2086	administration, or its assignees or agents, as follows:
2087	1.  The division may permit a person whose conduct or
2088	actions may be under investigation to waive formal proceedings
2089	and enter into a consent proceeding whereby orders, rules, or
2090	letters of censure or warning, whether formal or informal, may
2091	be entered against the person.
2092	2.  The division may issue an order requiring the
2093	developer, association, developer-designated officer, or
2094	developer-designated member of the board of administration, or
2095	developer-designated its assignees or agents, community
2096	association manager, or community association management firm to
2097	cease and desist from the unlawful practice and take such
2098	affirmative action as in the judgment of the division will carry
2099	out the purposes of this chapter. Such affirmative action may
2100	include, but is not limited to, an order requiring a developer
2101	to pay moneys determined to be owed to a condominium
2102	association.
2103	3.  If a developer fails to pay any restitution determined
2104	by the division to be owed, plus any accrued interest at the
2105	highest rate permitted by law, within 30 days after expiration
2106	of any appellate time period of a final order requiring payment
2107	of restitution or the conclusion of any appeal thereof,
2108	whichever is later, the division shall bring an action in
2109	circuit or county court on behalf of any association, class of
2110	unit owners, lessees, or purchasers for restitution, declaratory
2111	relief, injunctive relief, or any other available remedy. The
2112	division may also temporarily revoke its acceptance of the
2113	filing for the developer to which the restitution relates until
2114	payment of restitution is made. The division may bring an action
2115	in circuit court on behalf of a class of unit owners, lessees,
2116	or purchasers for declaratory relief, injunctive relief, or
2117	restitution.
2118	4.  The division may impose a civil penalty against a
2119	developer or association, or its assignee or agent, for any
2120	violation of this chapter or a rule promulgated pursuant hereto.
2121	The division may impose a civil penalty individually against any
2122	officer or board member who willfully and knowingly violates a
2123	provision of this chapter, a rule adopted pursuant hereto, or a
2124	final order of the division; may order the removal of such
2125	individual as an officer or from the board of administration or
2126	as an officer of the association; and may prohibit such
2127	individual from serving as an officer or on the board of a
2128	community association for a period of time. The term "willfully
2129	and knowingly" means that the division informed the officer or
2130	board member that his or her action or intended action violates
2131	this chapter, a rule adopted under this chapter, or a final
2132	order of the division and that the officer or board member
2133	refused to comply with the requirements of this chapter, a rule
2134	adopted under this chapter, or a final order of the division.
2135	The division, prior to initiating formal agency action under
2136	chapter 120, shall afford the officer or board member an
2137	opportunity to voluntarily comply with this chapter, a rule
2138	adopted under this chapter, or a final order of the division. An
2139	officer or board member who complies within 10 days is not
2140	subject to a civil penalty. A penalty may be imposed on the
2141	basis of each day of continuing violation, but in no event shall
2142	the penalty for any offense exceed $5,000. By January 1, 1998,
2143	the division shall adopt, by rule, penalty guidelines applicable
2144	to possible violations or to categories of violations of this
2145	chapter or rules adopted by the division. The guidelines must
2146	specify a meaningful range of civil penalties for each such
2147	violation of the statute and rules and must be based upon the
2148	harm caused by the violation, the repetition of the violation,
2149	and upon such other factors deemed relevant by the division. For
2150	example, the division may consider whether the violations were
2151	committed by a developer or owner-controlled association, the
2152	size of the association, and other factors. The guidelines must
2153	designate the possible mitigating or aggravating circumstances
2154	that justify a departure from the range of penalties provided by
2155	the rules. It is the legislative intent that minor violations be
2156	distinguished from those which endanger the health, safety, or
2157	welfare of the condominium residents or other persons and that
2158	such guidelines provide reasonable and meaningful notice to the
2159	public of likely penalties that may be imposed for proscribed
2160	conduct. This subsection does not limit the ability of the
2161	division to informally dispose of administrative actions or
2162	complaints by stipulation, agreed settlement, or consent order.
2163	All amounts collected shall be deposited with the Chief
2164	Financial Officer to the credit of the Division of Florida Land
2165	Sales, Condominiums, and Mobile Homes Trust Fund. If a developer
2166	fails to pay the civil penalty and the amount deemed to be owed
2167	to the association, the division shall thereupon issue an order
2168	directing that such developer cease and desist from further
2169	operation until such time as the civil penalty is paid or may
2170	pursue enforcement of the penalty in a court of competent
2171	jurisdiction. If an association fails to pay the civil penalty,
2172	the division shall thereupon pursue enforcement in a court of
2173	competent jurisdiction, and the order imposing the civil penalty
2174	or the cease and desist order will not become effective until 20
2175	days after the date of such order. Any action commenced by the
2176	division shall be brought in the county in which the division
2177	has its executive offices or in the county where the violation
2178	occurred.
2179	5.  If a unit owner presents the division with proof that
2180	the unit owner has requested access to official records in
2181	writing by certified mail, and that after 10 days the unit owner
2182	again made the same request for access to official records in
2183	writing by certified mail, and that more than 10 days has
2184	elapsed since the second request and the association has still
2185	failed or refused to provide access to official records as
2186	required by this chapter, the division shall issue a subpoena
2187	requiring production of the requested records where the records
2188	are kept pursuant to s. 718.112.
2189	(e)  The division is authorized to prepare and disseminate
2190	a prospectus and other information to assist prospective owners,
2191	purchasers, lessees, and developers of residential condominiums
2192	in assessing the rights, privileges, and duties pertaining
2193	thereto.
2194	(f)  The division has authority to adopt rules pursuant to
2195	ss. 120.536(1) and 120.54 to implement and enforce the
2196	provisions of this chapter.
2197	(g)  The division shall establish procedures for providing
2198	notice to an association and the developer during the period
2199	where the developer controls the association when the division
2200	is considering the issuance of a declaratory statement with
2201	respect to the declaration of condominium or any related
2202	document governing in such condominium community.
2203	(h)  The division shall furnish each association which pays
2204	the fees required by paragraph (2)(a) a copy of this act,
2205	subsequent changes to this act on an annual basis, an amended
2206	version of this act as it becomes available from the Secretary
2207	of State's office on a biennial basis, and the rules promulgated
2208	pursuant thereto on an annual basis.
2209	(i)  The division shall annually provide each association
2210	with a summary of declaratory statements and formal legal
2211	opinions relating to the operations of condominiums which were
2212	rendered by the division during the previous year.
2213	(j)  The division shall provide training and educational
2214	programs for condominium association board members and unit
2215	owners. The training may, in the division's discretion, include
2216	web-based electronic media, and live training and seminars in
2217	various locations throughout the state. The division shall have
2218	the authority to review and approve education and training
2219	programs for board members and unit owners offered by providers
2220	and shall maintain a current list of approved programs and
2221	providers and shall make such list available to board members
2222	and unit owners in a reasonable and cost-effective manner.
2223	(k)  The division shall maintain a toll-free telephone
2224	number accessible to condominium unit owners.
2225	(l)  The division shall develop a program to certify both
2226	volunteer and paid mediators to provide mediation of condominium
2227	disputes. The division shall provide, upon request, a list of
2228	such mediators to any association, unit owner, or other
2229	participant in arbitration proceedings under s. 718.1255
2230	requesting a copy of the list. The division shall include on the
2231	list of volunteer mediators only the names of persons who have
2232	received at least 20 hours of training in mediation techniques
2233	or who have mediated at least 20 disputes. In order to become
2234	initially certified by the division, paid mediators must be
2235	certified by the Supreme Court to mediate court cases in either
2236	county or circuit courts. However, the division may adopt, by
2237	rule, additional factors for the certification of paid
2238	mediators, which factors must be related to experience,
2239	education, or background. Any person initially certified as a
2240	paid mediator by the division must, in order to continue to be
2241	certified, comply with the factors or requirements imposed by
2242	rules adopted by the division.
2243	(m)  When a complaint is made, the division shall conduct
2244	its inquiry with due regard to the interests of the affected
2245	parties. Within 30 days after receipt of a complaint, the
2246	division shall acknowledge the complaint in writing and notify
2247	the complainant whether the complaint is within the jurisdiction
2248	of the division and whether additional information is needed by
2249	the division from the complainant. The division shall conduct
2250	its investigation and shall, within 90 days after receipt of the
2251	original complaint or of timely requested additional
2252	information, take action upon the complaint. However, the
2253	failure to complete the investigation within 90 days does not
2254	prevent the division from continuing the investigation,
2255	accepting or considering evidence obtained or received after 90
2256	days, or taking administrative action if reasonable cause exists
2257	to believe that a violation of this chapter or a rule of the
2258	division has occurred. If an investigation is not completed
2259	within the time limits established in this paragraph, the
2260	division shall, on a monthly basis, notify the complainant in
2261	writing of the status of the investigation. When reporting its
2262	action to the complainant, the division shall inform the
2263	complainant of any right to a hearing pursuant to ss. 120.569
2264	and 120.57.
2265	(n)  Condominium association directors, officers, and
2266	employees; condominium developers; community association
2267	managers; and community association management firms have an
2268	ongoing duty to reasonably cooperate with the division in any
2269	investigation pursuant to this section. The division shall refer
2270	to local law enforcement authorities any person whom the
2271	division believes has altered, destroyed, concealed, or removed
2272	any record, document, or thing required to be kept or maintained
2273	by this chapter with the purpose to impair its verity or
2274	availability in the department's investigation.
2275	(2)(a)  Effective January 1, 1992, Each condominium
2276	association which operates more than two units shall pay to the
2277	division an annual fee in the amount of $4 for each residential
2278	unit in condominiums operated by the association. If the fee is
2279	not paid by March 1, then the association shall be assessed a
2280	penalty of 10 percent of the amount due, and the association
2281	will not have standing to maintain or defend any action in the
2282	courts of this state until the amount due, plus any penalty, is
2283	paid.
2284	(b)  All fees shall be deposited in the Division of Florida
2285	Land Sales, Condominiums, and Mobile Homes Trust Fund as
2286	provided by law.
2287	Section 22.  Subsection (9) of section 718.5012, Florida
2288	Statutes, is renumbered as subsection (10), and a new subsection
2289	(9) is added to that section to read:
2290	718.5012  Ombudsman; powers and duties.--The ombudsman
2291	shall have the powers that are necessary to carry out the duties
2292	of his or her office, including the following specific powers:
2293	(9)  To assist with the resolution of disputes between unit
2294	owners and the association or between unit owners when the
2295	dispute is not within the jurisdiction of the division to
2296	resolve.
2297	Section 23.  Section 718.50151, Florida Statutes, is
2298	amended to read:
2299	718.50151  Community Association Living Study Advisory
2300	Council; membership functions.--
2301	(1)  There is created the Community Association Living
2302	Study Advisory Council on Condominiums. The council shall
2303	consist of seven appointed members. Two members shall be
2304	appointed by the President of the Senate, two members shall be
2305	appointed by the Speaker of the House of Representatives, and
2306	three members shall be appointed by the Governor. At least One
2307	member that is appointed by the Governor may shall represent
2308	timeshare condominiums. The council shall be created as of
2309	October 1 every 5 years, commencing October 1, 2008, and shall
2310	exist for a 6-month term. Members shall be appointed to 2-year
2311	terms; however, one of the persons initially appointed by the
2312	Governor, by the President of the Senate, and by the Speaker of
2313	the House of Representatives shall be appointed to a 1-year
2314	term. The director of the division shall appoint serve as an ex
2315	officio nonvoting member. The Legislature intends that the
2316	persons appointed represent a cross-section of persons
2317	interested in community association condominium issues. The
2318	council shall be located within the division for administrative
2319	purposes. Members of the council shall serve without
2320	compensation but are entitled to receive per diem and travel
2321	expenses pursuant to s. 112.061 while on official business.
2322	(2)  The functions of the advisory council shall be to:
2323	(a)  Receive, from the public, input regarding issues of
2324	concern with respect to community association living, including
2325	living in condominiums, cooperatives, and homeowners'
2326	associations. The council shall make and recommendations for
2327	changes in the condominium law related to community association
2328	living. The issues that the council shall consider include, but
2329	are not limited to, the rights and responsibilities of the unit
2330	owners in relation to the rights and responsibilities of the
2331	association.
2332	(b)  Review, evaluate, and advise the division concerning
2333	revisions and adoption of rules affecting condominiums and
2334	cooperatives.
2335	(c)  Recommend improvements, if needed, in the education
2336	programs offered by the division.
2337	(d)  Review, evaluate, and advise the Legislature
2338	concerning revisions and improvements to the laws relating to
2339	condominiums, cooperatives, and homeowners' associations.
2340	(3)  The council may elect a chair and vice chair and such
2341	other officers as it may deem advisable. The council shall meet
2342	at the call of its chair, at the request of a majority of its
2343	membership, at the request of the division, or at such times as
2344	it may prescribe. A majority of the members of the council shall
2345	constitute a quorum. Council action may be taken by vote of a
2346	majority of the voting members who are present at a meeting
2347	where there is a quorum.
2348	Section 24.  Paragraph (a) of subsection (2) of section
2349	718.503, Florida Statutes, is amended to read:
2350	718.503  Developer disclosure prior to sale; nondeveloper
2351	unit owner disclosure prior to sale; voidability.--
2352	(2)  NONDEVELOPER DISCLOSURE.--
2353	(a)  Each unit owner who is not a developer as defined by
2354	this chapter shall comply with the provisions of this subsection
2355	prior to the sale of his or her unit. Each prospective purchaser
2356	who has entered into a contract for the purchase of a
2357	condominium unit is entitled, at the seller's expense, to a
2358	current copy of the declaration of condominium, articles of
2359	incorporation of the association, bylaws and rules of the
2360	association, financial information required by s. 718.111, and
2361	the document entitled "Frequently Asked Questions and Answers"
2362	required by s. 718.504. On and after January 1, 2009, the
2363	prospective purchaser shall also be entitled to receive from the
2364	seller a copy of a governance form. Such form shall be provided
2365	by the division summarizing governance of condominium
2366	associations. In addition to such other information as the
2367	division considers helpful to a prospective purchaser in
2368	understanding association governance, the governance form shall
2369	address the following subjects:
2370	1.  The role of the board in conducting the day-to-day
2371	affairs of the association on behalf of, and in the best
2372	interests of, the owners.
2373	2.  The board's responsibility to provide advance notice of
2374	board and membership meetings.
2375	3.  The rights of owners to attend and speak at board and
2376	membership meetings.
2377	4.  The responsibility of the board and of owners with
2378	respect to maintenance of the condominium property.
2379	5.  The responsibility of the board and owners to abide by
2380	the condominium documents, this chapter, rules adopted by the
2381	division, and reasonable rules adopted by the board.
2382	6.  Owners' rights to inspect and copy association records
2383	and the limitations on such rights.
2384	7.  Remedies available to owners with respect to actions by
2385	the board which may be abusive or beyond the board's power and
2386	authority.
2387	8.  The right of the board to hire a property management
2388	firm, subject to its own primary responsibility for such
2389	management.
2390	9.  The responsibility of owners with regard to payment of
2391	regular or special assessments necessary for the operation of
2392	the property and the potential consequences of failure to pay
2393	such assessments.
2394	10.  The voting rights of owners.
2395	11.  Rights and obligations of the board in enforcement of
2396	rules in the condominium documents and rules adopted by the
2397	board.
2398
2399	The governance form shall also include the following statement
2400	in conspicuous type: "This publication is intended as an
2401	informal educational overview of condominium governance. In the
2402	event of a conflict, the provisions of chapter 718, Florida
2403	Statutes, rules adopted by the Division of Florida Land Sales,
2404	Condominiums, and Mobile Homes of the Department of Business and
2405	Professional Regulation, the provisions of the condominium
2406	documents, and reasonable rules adopted by the condominium
2407	association's board of administration prevail over the contents
2408	of this publication."
2409	Section 25.  This act shall take effect October 1, 2008.

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