HB 1397

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	20.165, F.S.; providing powers for employees of the
4	Division of Florida Condominiums, Timeshares, and Mobile
5	Homes; requiring each employee serving as a law
6	enforcement officer for the division to meet the
7	qualifications of a law enforcement officer set forth in
8	ch. 943, F.S., for employment or appointment; requiring
9	each such employee to be certified as a law enforcement
10	officer by the Department of Law Enforcement; providing
11	the law enforcement officer with certain powers,
12	authority, jurisdiction, and responsibilities; amending s.
13	468.436, F.S.; revising a ground for disciplinary action
14	relating to misconduct or negligence; requiring the
15	Department of Business and Professional Regulation to
16	enter an order permanently revoking certain community
17	association manager or firm licenses; creating s. 627.714,
18	F.S.; requiring coverage under a condominium unit owner's
19	policy or a cooperative shareholder's policy to include a
20	minimum amount of loss assessment coverage; providing
21	coverage requirements; amending s. 689.28, F.S.; revising
22	the definition of the term "transfer fee"; amending s.
23	718.111, F.S.; requiring coverage for certain personal
24	property to be the responsibility of the condominium unit
25	owner; revising board meeting notice requirements;
26	requiring insurance policies issued or renewed on or after
27	a specified date to conform to specified loss assessment
28	coverage requirements; revising and deleting provisions
29	relating to hazard or casualty insurance coverage
30	requirements, to conform; deleting a provision requiring
31	the condominium association to be an additional named
32	insured and loss payee on all casualty insurance policies
33	issued to unit owners in the condominium operated by the
34	association; amending s. 718.112, F.S.; revising notice
35	requirements for board of administration meetings;
36	revising terms of board members; revising requirements for
37	the reappointment of certain board members; revising
38	election notice requirements; providing requirements for
39	the amendment of association bylaws; providing for the
40	removal of certain directors and officers; providing
41	qualifications for service on the board of directors;
42	amending s. 718.113, F.S.; authorizing the association to
43	install code-compliant impact glass as hurricane
44	protection in certain areas; amending s. 718.116, F.S.;
45	revising provisions limiting the liability of a first
46	mortgagee and its successors and assignees acquiring title
47	to a unit by foreclosure or by deed in lieu of foreclosure
48	for certain unpaid assessments; deleting an exemption from
49	liability for certain persons acquiring title to a
50	condominium as a result of the foreclosure of the mortgage
51	or by deed in lieu of the foreclosure of the mortgage;
52	providing procedures for a mortgagee filing a foreclosure
53	case on a mortgage secured by a condominium unit;
54	requiring mortgagees filing for foreclosure to make
55	certain payments to the association; authorizing an
56	association to demand future regular assessments related
57	to the condominium unit under specified conditions;
58	amending s. 718.1265, F.S.; providing conditions under
59	which the association may use certain emergency powers;
60	amending s. 718.3025, F.S.; requiring certain associations
61	to enter into a management agreement with a licensed
62	person or firm; amending s. 718.501, F.S.; revising
63	condominium matters under which the division has
64	jurisdiction; revising and providing powers of the
65	division; requiring the division to create a specified
66	booklet for association directors; amending s. 718.5012,
67	F.S.; authorizing the Office of the Condominium Ombudsman
68	to assist in the resolution of certain disputes; amending
69	s. 718.50151, F.S.; redesignating the Community
70	Association Living Study Council as the Community
71	Association Study Council; revising council membership;
72	amending s. 719.103, F.S.; revising definitions; changing
73	references from unit owner to shareholder in statutes
74	relating to cooperatives; amending s. 719.104, F.S.;
75	providing civil penalties for violations of accounting
76	records requirements; exempting certain personal
77	information from unit owner records requests; providing
78	immunity from liability for certain information provided
79	by associations to prospective purchasers or lienholders
80	under certain circumstances; providing legislative intent;
81	requiring that property insurance be based upon the
82	replacement cost of the property to be insured as
83	determined by an independent insurance appraisal or update
84	of a prior appraisal; requiring that the full insurable
85	value be determined at specified intervals; providing
86	means by which an association may provide adequate
87	property insurance coverage; authorizing an association to
88	consider certain information when determining coverage
89	amounts; providing for coverage by developer-controlled
90	associations; providing that policies may include
91	deductibles as determined by the association's board of
92	directors; providing requirements and guidelines for the
93	establishment of such deductibles; requiring that the
94	amounts of deductibles be set at a meeting of the board;
95	providing requirements for such meeting; requiring that an
96	association controlled by shareholders operating as a
97	residential cooperative use its best efforts to obtain and
98	maintain adequate insurance to protect the association and
99	property under its supervision or control; authorizing an
100	association to obtain and maintain liability insurance for
101	directors and officers, insurance for the benefit of
102	association employees, and flood insurance for common
103	elements, association property, and units; requiring that
104	every property insurance policy issued or renewed on or
105	after a specified date for the purpose of protecting the
106	cooperative provide certain coverage; requiring that such
107	policies contain certain provisions; providing
108	responsibilities of the shareholder and association with
109	regard to reconstruction work and associated costs after a
110	casualty loss; requiring the association to maintain
111	certain insurance or fidelity bonding for persons who
112	control or disburse funds of the association; providing
113	requirements with respect to financial statements and
114	reports; providing that the operation of the cooperative
115	shall be by the association; providing that shareholders
116	shall be members of the association; providing legislative
117	intent; providing that a director of the association who
118	abstains from voting on any action taken on any corporate
119	matter shall be presumed to have taken no position with
120	regard to the action; providing duties of officers,
121	directors, and agents of a cooperative association and
122	liability for monetary damages under certain
123	circumstances; providing that the association may
124	contract, sue, or be sued with respect to the exercise or
125	nonexercise of its powers; providing powers of the
126	association with respect to title to property and purchase
127	of units; amending s. 719.106, F.S.; requiring certain
128	items to be placed on the agenda of board meetings;
129	providing requirements for shareholder meetings; providing
130	terms of office and election requirements for the board of
131	directors; providing criteria for the amendment of the
132	bylaws; providing eligibility to vote on certain questions
133	involving reserve funds; requiring proxy questions
134	relating to reserves to contain a specified statement;
135	requiring the bylaws to contain certain provisions;
136	requiring that directors and officers who are delinquent
137	in certain payments owed in excess of certain periods of
138	time be deemed to have abandoned their offices; requiring
139	that directors and officers charged with certain offenses
140	involving an association's funds or property be suspended
141	from office pending resolution of the charge; providing
142	for the reinstatement of such directors and officers under
143	certain circumstances; providing qualifications for
144	directors; repealing s. 719.1064, F.S., relating to the
145	failure to fill vacancies on board of administration and
146	the appointment of a receiver upon petition of a
147	shareholder; amending s. 719.107, F.S.; providing the
148	expense of installation, replacement, operation, repair,
149	and maintenance of hurricane shutters or other hurricane
150	protection shall constitute either a common expense or
151	shall be charged individually to the shareholders under
152	certain conditions; amending s. 719.108, F.S.; limiting
153	the liability of a first mortgagee and its successor and
154	assignees acquiring title to a unit by foreclosure or by
155	deed in lieu of foreclosure for certain unpaid
156	assessments; requiring mortgagees filing for foreclosure
157	to make certain payments to the association; providing a
158	statement of clarification and applicability; providing a
159	definition; providing grounds for disapproval of the
160	proposed lease of a unit by an association; providing lien
161	requirements; providing for the extension of certain
162	liens; providing lien notice and filing requirements;
163	providing foreclosure requirements; providing the
164	association with the power to purchase a cooperative unit
165	at a foreclosure sale; requiring the association to
166	provide a certificate of assessment under certain
167	conditions; providing for the establishment of fees for
168	the preparation of such certificates; providing for the
169	refund of certain fees; authorizing the association to
170	demand payment of future assessments under certain
171	circumstances; creating s. 719.113, F.S.; providing that
172	maintenance of common areas is the responsibility of the
173	association; providing that the cooperative documents may
174	include reference that the association provide certain
175	maintenance for the condominium; providing that there
176	shall be no material alteration or substantial additions
177	to the common areas or to real property which is
178	association property; providing for protection of the
179	common areas; allowing shareholders to display a United
180	States flag as well as other specified flags on designated
181	days and patriotic holidays; requiring the board to adopt
182	hurricane shutter specifications; authorizing the board to
183	install certain hurricane protection; prohibiting the
184	board from installing certain hurricane shutters or other
185	hurricane protection under certain circumstances;
186	providing for the maintenance, repair, and replacement of
187	hurricane shutters or other hurricane protection;
188	authorizing the board to operate hurricane shutters
189	without shareholder permission under certain
190	circumstances; prohibiting the board from refusing to
191	approve the installation or replacement of hurricane
192	shutters under certain conditions; requiring that the
193	board inspect certain buildings and issue a report under
194	certain conditions; providing an exception; prohibiting
195	the board from refusing a request for reasonable
196	accommodation for the attachment to a unit of religious
197	objects meeting certain size specifications; authorizing
198	the board to install solar collectors, clotheslines, or
199	other energy-efficient devices upon or within common areas
200	or association property; creating s. 719.117, F.S.;
201	providing legislative findings; providing provisions
202	relating to the termination of the cooperative form of
203	ownership of a property due to economic waste or
204	impossibility or optional termination; providing grounds
205	for termination; providing an exemption; providing that
206	the approval of a plan of termination by certain mortgage
207	lienholders is not required under certain conditions;
208	providing powers and duties of the board relating to the
209	plan of termination; providing requirements following
210	natural disasters; providing reporting requirements;
211	providing requirements for a plan of termination;
212	providing for the allocation of proceeds from the sale of
213	cooperative property; providing powers and duties of a
214	termination trustee; providing notice requirements;
215	providing a procedure for contesting a plan of
216	termination; providing for recovery of attorney's fees and
217	costs; providing rules for the distribution of property
218	and sale proceeds; providing for the association's status
219	following termination; allowing the creation of another
220	cooperative by the trustee; creating s. 719.1224, F.S.;
221	prohibiting strategic lawsuits against public
222	participation; providing legislative findings and intent;
223	prohibiting a governmental entity, business organization,
224	or individual from filing certain lawsuits made upon
225	specified bases against a shareholder; providing rights of
226	a shareholder who has been served with such a lawsuit;
227	providing procedures for the resolution of certain claims;
228	providing for the award of damages and attorney's fees;
229	prohibiting associations from expending association funds
230	in prosecuting such a suit against a shareholder; amending
231	s. 719.1255, F.S.; requiring the division to provide
232	alternative dispute resolution for certain matters;
233	creating s. 719.1265, F.S.; authorizing an association to
234	exercise certain powers in instances involving damage
235	caused by an event for which a state of emergency has been
236	declared; limiting the applicability of such powers;
237	amending s. 719.301, F.S.; providing circumstances under
238	which shareholders other than a developer may elect not
239	less than a majority of the members of the board;
240	requiring a turnover inspection report; requiring that the
241	report contain certain information; creating s. 719.3025,
242	F.S.; requiring written contracts for the operation,
243	maintenance, or management of a cooperative association or
244	cooperative property; providing contract requirements;
245	authorizing the association to procure outside services
246	under certain circumstances; providing that services or
247	obligations not stated on the face of the contract shall
248	be unenforceable; providing applicability; amending s.
249	719.3026, F.S.; revising a provision authorizing certain
250	associations to opt out of provisions relating to
251	contracts for products and services; removing provisions
252	exempting contracts executed before a specified date from
253	certain competitive bid requirements; providing
254	requirements for any contract or transaction between an
255	association and one or more of its directors or a
256	specified other entity in which one or more of its
257	directors are directors or officers or have a financial
258	interest; amending s. 719.303, F.S.; providing that
259	hearings regarding noncompliance with a declaration be
260	held before certain persons; amending s. 719.501, F.S.;
261	providing authority and responsibilities of the division;
262	providing for enforcement actions brought by the division
263	in its own name; providing for the imposition of penalties
264	by the division; requiring that the division issue a
265	subpoena requiring production of certain requested records
266	under certain circumstances; providing for the issuance of
267	notice of a declaratory statement with respect to
268	documents governing a cooperative; deleting requirement
269	that the division adopt certain accounting principles;
270	requiring that the division provide training and
271	educational programs for association board members and
272	shareholders; authorizing the division to include certain
273	training components, review or approve training and
274	educational programs offered by providers, and maintain a
275	list of approved programs and providers; requiring the
276	division to develop a program to certify both volunteer
277	and paid mediators; providing responsibilities of the
278	division with regard to such mediators; requiring that
279	certain individuals cooperate with the division in any
280	investigation conducted by the division; requiring the
281	division to cooperate with similar agencies in other
282	jurisdictions to establish certain procedures, standards,
283	and forms; specifying what constitutes completeness of
284	notice to developer; authorizing the division to issue a
285	notice to show cause; requiring an association to pay any
286	penalty due to the division before having standing to
287	maintain or defend any action in the courts of this state;
288	creating s. 719.5011, F.S.; requiring the Office of the
289	Condominium Ombudsman to assist cooperative associations
290	and cooperative shareholders; amending s. 719.503, F.S.;
291	providing shareholder disclosure requirements for the sale
292	of interest in a cooperative association; amending s.
293	720.3085, F.S.; revising provisions relating to the
294	effectiveness and priority of homeowners' association
295	liens; revising provisions limiting the liability of a
296	first mortgagee and its successors and assignees acquiring
297	title to a unit by foreclosure or by deed in lieu of
298	foreclosure for certain unpaid assessments; requiring
299	mortgagees filing for foreclosure to make certain payments
300	to the association; amending s. 721.16, F.S.; conforming a
301	cross-reference; requiring a study by the Office of
302	Program Policy Analysis and Government Accountability for
303	specified purposes; requiring a report to the Legislature
304	by a specified date; providing an effective date.
305
306	Be It Enacted by the Legislature of the State of Florida:
307
308	Section 1.  Subsection (10) is added to section 20.165,
309	Florida Statutes, to read:
310	20.165  Department of Business and Professional
311	Regulation.--There is created a Department of Business and
312	Professional Regulation.
313	(10)(a)  All employees authorized by the Division of
314	Florida Condominiums, Timeshares, and Mobile Homes shall have
315	access to and shall have the right to examine and inspect the
316	premises, books, and records of any condominium, cooperative,
317	timeshare, or mobile home park regulated by the division. Such
318	employees shall also have access to and shall have the right to
319	examine and inspect the books and records of any community
320	association manager or firm employed by any condominium,
321	cooperative, timeshare, or mobile home park regulated by the
322	division. The authorized employees shall require of each
323	licensee strict compliance with the laws of this state relating
324	to the transaction of such business or operation.
325	(b)  Each employee serving as a law enforcement officer for
326	the division must meet the qualifications for employment or
327	appointment as a law enforcement officer set forth under s.
328	943.13 and must be certified as a law enforcement officer by the
329	Department of Law Enforcement under chapter 943. Upon
330	certification, each law enforcement officer is subject to and
331	has the same authority as provided for law enforcement officers
332	generally in chapter 901 and has statewide jurisdiction. Each
333	officer also has arrest authority as provided for state law
334	enforcement officers in s. 901.15. Each officer possesses the
335	full law enforcement powers granted to other peace officers of
336	this state, including the authority to make arrests, carry
337	firearms, serve court process, and seize contraband and the
338	proceeds of illegal activities.
339	(c)  The primary responsibility of each officer appointed
340	under this subsection is to investigate, enforce, and prosecute,
341	throughout the state, violations and violators of part VIII of
342	chapter 468, chapters 718, 719, 721, and 723, and the rules
343	adopted thereunder, as well as other state laws that the
344	division or all state law enforcement officers are specifically
345	authorized to enforce. The secondary responsibility of each
346	officer appointed under this subsection is to enforce all other
347	state laws, provided that the enforcement is incidental to
348	exercising the officer's primary responsibility, and the officer
349	exercises the powers of a deputy sheriff, only after
350	consultation or coordination with the appropriate local
351	sheriff's office or municipal police department or when the
352	division participates in the Florida Mutual Aid Plan during a
353	declared state emergency.
354	Section 2.  Paragraph (b) of subsection (2) of section
355	468.436, Florida Statutes, is amended, and subsection (6) is
356	added to that section, to read:
357	468.436  Disciplinary proceedings.--
358	(2)  The following acts constitute grounds for which the
359	disciplinary actions in subsection (4) may be taken:
360	(b)1.  Violation of any provision of this part.
361	2.  Violation of any lawful order or rule rendered or
362	adopted by the department or the council.
363	3.  Being convicted of or pleading nolo contendere to a
364	felony in any court in the United States.
365	4.  Obtaining a license or certification or any other
366	order, ruling, or authorization by means of fraud,
367	misrepresentation, or concealment of material facts.
368	5.  Committing acts of gross misconduct or gross negligence
369	in connection with the profession.
370	6.  Contracting, on behalf of an association, with any
371	entity in which the licensee has a financial interest that is
372	not disclosed.
373	(6)  Upon the fifth or later finding that a community
374	association manager or firm is guilty of any of the grounds set
375	forth in subsection (2), the department's discretion under
376	subsection (4) shall not apply and the division shall enter an
377	order permanently revoking the license.
378	Section 3.  Section 627.714, Florida Statutes, is created
379	to read:
380	627.714  Condominium unit owners' and cooperative
381	shareholders' coverage; loss assessment coverage required.--For
382	policies issued or renewed on or after July 1, 2009, coverage
383	under a condominium unit owner's policy or a cooperative
384	shareholder's policy shall include loss assessment coverage of
385	at least $2,000. Such loss assessment coverage shall cover the
386	unit owner's or shareholder's share of an assessment against all
387	condominium unit owners or cooperative shareholders by the
388	association, up to the limit of liability in effect at the time
389	of the loss which results in the assessment. At a minimum, the
390	loss assessment coverage must cover assessments for a loss to
391	property for a peril insured by the association.
392	Section 4.  Paragraph (c) of subsection (2) of section
393	689.28, Florida Statutes, is amended to read:
394	689.28  Prohibition against transfer fee covenants.--
395	(2)  DEFINITIONS.--As used in this section, the term:
396	(c)  "Transfer fee" means a fee or charge required by a
397	transfer fee covenant and payable upon the transfer of an
398	interest in real property, or payable for the right to make or
399	accept such transfer, regardless of whether the fee or charge is
400	a fixed amount or is determined as a percentage of the value of
401	the property, the purchase price, or other consideration given
402	for the transfer. The following are not transfer fees for
403	purposes of this section:
404	1.  Any consideration payable by the grantee to the grantor
405	for the interest in real property being transferred, including
406	any subsequent additional consideration for the property payable
407	by the grantee based upon any subsequent appreciation,
408	development, or sale of the property. For the purposes of this
409	subparagraph, an interest in real property may include a
410	separate mineral estate and its appurtenant surface access
411	rights.
412	2.  Any commission payable to a licensed real estate broker
413	for the transfer of real property pursuant to an agreement
414	between the broker and the grantor or the grantee, including any
415	subsequent additional commission for that transfer payable by
416	the grantor or the grantee based upon any subsequent
417	appreciation, development, or sale of the property.
418	3.  Any interest, charges, fees, or other amounts payable
419	by a borrower to a lender pursuant to a loan secured by a
420	mortgage against real property, including, but not limited to,
421	any fee payable to the lender for consenting to an assumption of
422	the loan or a transfer of the real property subject to the
423	mortgage, any fees or charges payable to the lender for estoppel
424	letters or certificates, and any shared appreciation interest or
425	profit participation or other consideration described in s.
426	687.03(4) and payable to the lender in connection with the loan.
427	4.  Any rent, reimbursement, charge, fee, or other amount
428	payable by a lessee to a lessor under a lease, including, but
429	not limited to, any fee payable to the lessor for consenting to
430	an assignment, subletting, encumbrance, or transfer of the
431	lease.
432	5.  Any consideration payable to the holder of an option to
433	purchase an interest in real property or the holder of a right
434	of first refusal or first offer to purchase an interest in real
435	property for waiving, releasing, or not exercising the option or
436	right upon the transfer of the property to another person.
437	6.  Any tax, fee, charge, assessment, fine, or other amount
438	payable to or imposed by a governmental authority.
439	7.  Any fee, charge, assessment, fine, or other amount
440	payable to a homeowners', condominium, cooperative, mobile home,
441	or property owners' association pursuant to a declaration or
442	covenant or law applicable to such association, including, but
443	not limited to, fees or charges payable for estoppel letters or
444	certificates issued by the association or its authorized agent.
445	8.  Any fee, charge, assessment, dues, contribution, or
446	other amount imposed by a declaration or covenant encumbering
447	four or more parcels in a community, as defined in s. 720.301,
448	and payable to a nonprofit or charitable organization for the
449	purpose of supporting cultural, educational, charitable,
450	recreational, environmental, conservation, or other similar
451	activities benefiting the community that is subject to the
452	declaration or covenant.
453	7.9.  Any fee, charge, assessment, dues, contribution, or
454	other amount pertaining to the purchase or transfer of a club
455	membership relating to real property owned by the member,
456	including, but not limited to, any amount determined by
457	reference to the value, purchase price, or other consideration
458	given for the transfer of the real property.
459	8.10.  Any payment required pursuant to an environmental
460	covenant.
461	Section 5.  Subsection (11) and paragraph (b) of subsection
462	(12) of section 718.111, Florida Statutes, are amended to read:
463	718.111  The association.--
464	(11)  INSURANCE.--In order to protect the safety, health,
465	and welfare of the people of the State of Florida and to ensure
466	consistency in the provision of insurance coverage to
467	condominiums and their unit owners, this subsection applies to
468	every residential condominium in the state, regardless of the
469	date of its declaration of condominium. It is the intent of the
470	Legislature to encourage lower or stable insurance premiums for
471	associations described in this subsection.
472	(a)  Adequate property hazard insurance, regardless of any
473	requirement in the declaration of condominium for coverage by
474	the association for full insurable value, replacement cost, or
475	similar coverage, shall be based upon the replacement cost of
476	the property to be insured as determined by an independent
477	insurance appraisal or update of a prior appraisal. The full
478	insurable value shall be determined at least once every 36
479	months.
480	1.  An association or group of associations may provide
481	adequate property hazard insurance through a self-insurance fund
482	that complies with the requirements of ss. 624.460-624.488.
483	2.  The association may also provide adequate property
484	hazard insurance coverage for a group of no fewer than three
485	communities created and operating under this chapter, chapter
486	719, chapter 720, or chapter 721 by obtaining and maintaining
487	for such communities property insurance coverage sufficient to
488	cover an amount equal to the probable maximum loss for the
489	communities for a 250-year windstorm event. Such probable
490	maximum loss must be determined through the use of a competent
491	model that has been accepted by the Florida Commission on
492	Hurricane Loss Projection Methodology. No policy or program
493	providing such coverage shall be issued or renewed after July 1,
494	2008, unless it has been reviewed and approved by the Office of
495	Insurance Regulation. The review and approval shall include
496	approval of the policy and related forms pursuant to ss. 627.410
497	and 627.411, approval of the rates pursuant to s. 627.062, a
498	determination that the loss model approved by the commission was
499	accurately and appropriately applied to the insured structures
500	to determine the 250-year probable maximum loss, and a
501	determination that complete and accurate disclosure of all
502	material provisions is provided to condominium unit owners prior
503	to execution of the agreement by a condominium association.
504	3.  When determining the adequate amount of property hazard
505	insurance coverage, the association may consider deductibles as
506	determined by this subsection.
507	(b)  If an association is a developer-controlled
508	association, the association shall exercise its best efforts to
509	obtain and maintain property insurance as described in paragraph
510	(a). Failure to obtain and maintain adequate property hazard
511	insurance during any period of developer control constitutes a
512	breach of fiduciary responsibility by the developer-appointed
513	members of the board of directors of the association, unless the
514	members can show that despite such failure, they have made their
515	best efforts to maintain the required coverage.
516	(c)  Policies may include deductibles as determined by the
517	board.
518	1.  The deductibles shall be consistent with industry
519	standards and prevailing practice for communities of similar
520	size and age, and having similar construction and facilities in
521	the locale where the condominium property is situated.
522	2.  The deductibles may be based upon available funds,
523	including reserve accounts, or predetermined assessment
524	authority at the time the property insurance is obtained.
525	3.  The board shall establish the amount of deductibles
526	based upon the level of available funds and predetermined
527	assessment authority at a meeting of the board. Such meeting
528	shall be open to all unit owners in the manner set forth in s.
529	718.112(2)(e). The notice of such meeting must state the
530	proposed deductible and the available funds and the assessment
531	authority relied upon by the board and estimate any potential
532	assessment amount against each unit, if any. The meeting
533	described in this paragraph may be held in conjunction with a
534	meeting to consider the proposed budget or an amendment thereto.
535	(d)  An association controlled by unit owners operating as
536	a residential condominium shall use its best efforts to obtain
537	and maintain adequate property insurance to protect the
538	association, the association property, the common elements, and
539	the condominium property that is required to be insured by the
540	association pursuant to this subsection.
541	(e)  The declaration of condominium as originally recorded,
542	or as amended pursuant to procedures provided therein, may
543	provide that condominium property consisting of freestanding
544	buildings comprised of no more than one building in or on such
545	unit need not be insured by the association if the declaration
546	requires the unit owner to obtain adequate property insurance
547	for the condominium property. An association may also obtain and
548	maintain liability insurance for directors and officers,
549	insurance for the benefit of association employees, and flood
550	insurance for common elements, association property, and units.
551	(f)  Every property hazard insurance policy issued or
552	renewed on or after July January 1, 2009, for the purpose of
553	protecting the condominium shall provide primary coverage for:
554	1.  All portions of the condominium property as originally
555	installed or replacement of like kind and quality, in accordance
556	with the original plans and specifications.
557	2.  All alterations or additions made to the condominium
558	property or association property pursuant to s. 718.113(2).
559	3.  The coverage shall exclude all personal property within
560	the unit or limited common elements, and floor, wall, and
561	ceiling coverings, electrical fixtures, appliances, water
562	heaters, water filters, built-in cabinets and countertops, air-
563	conditioning and heating equipment that serves a single unit,
564	and window treatments, including curtains, drapes, blinds,
565	hardware, and similar window treatment components, or
566	replacements of any of the foregoing. Such property and any
567	insurance therefor shall be the responsibility of the unit
568	owner.
569	(g)  A condominium unit owner's policy issued after July 1,
570	2009, shall conform to the requirements of s. 627.714. Every
571	hazard insurance policy issued or renewed on or after January 1,
572	2009, to an individual unit owner must contain a provision
573	stating that the coverage afforded by such policy is excess
574	coverage over the amount recoverable under any other policy
575	covering the same property. Such policies must include special
576	assessment coverage of no less than $2,000 per occurrence. An
577	insurance policy issued to an individual unit owner providing
578	such coverage does not provide rights of subrogation against the
579	condominium association operating the condominium in which such
580	individual's unit is located.
581	1.  All improvements or additions to the condominium
582	property that benefit fewer than all unit owners shall be
583	insured by the unit owner or owners having the use thereof, or
584	may be insured by the association at the cost and expense of the
585	unit owners having the use thereof.
586	2.  The association shall require each owner to provide
587	evidence of a currently effective policy of hazard and liability
588	insurance upon request, but not more than once per year. Upon
589	the failure of an owner to provide a certificate of insurance
590	issued by an insurer approved to write such insurance in this
591	state within 30 days after the date on which a written request
592	is delivered, the association may purchase a policy of insurance
593	on behalf of an owner. The cost of such a policy, together with
594	reconstruction costs undertaken by the association but which are
595	the responsibility of the unit owner, may be collected in the
596	manner provided for the collection of assessments in s. 718.116.
597	1.3.  All reconstruction work after a casualty loss shall
598	be undertaken by the association except as otherwise authorized
599	in this section. A unit owner may undertake reconstruction work
600	on portions of the unit with the prior written consent of the
601	board of administration. However, such work may be conditioned
602	upon the approval of the repair methods, the qualifications of
603	the proposed contractor, or the contract that is used for that
604	purpose. A unit owner shall obtain all required governmental
605	permits and approvals prior to commencing reconstruction.
606	2.4.  Unit owners are responsible for the cost of
607	reconstruction of any portions of the condominium property for
608	which the association does not unit owner is required to carry
609	property casualty insurance, and any such reconstruction work
610	undertaken by the association shall be chargeable to the unit
611	owner and enforceable as an assessment pursuant to s. 718.116.
612	The association must be an additional named insured and loss
613	payee on all casualty insurance policies issued to unit owners
614	in the condominium operated by the association.
615	3.5.  A multicondominium association may elect, by a
616	majority vote of the collective members of the condominiums
617	operated by the association, to operate such condominiums as a
618	single condominium for purposes of insurance matters, including,
619	but not limited to, the purchase of the property hazard
620	insurance required by this section and the apportionment of
621	deductibles and damages in excess of coverage. The election to
622	aggregate the treatment of insurance premiums, deductibles, and
623	excess damages constitutes an amendment to the declaration of
624	all condominiums operated by the association, and the costs of
625	insurance shall be stated in the association budget. The
626	amendments shall be recorded as required by s. 718.110.
627	(h)  The association shall maintain insurance or fidelity
628	bonding of all persons who control or disburse funds of the
629	association. The insurance policy or fidelity bond must cover
630	the maximum funds that will be in the custody of the association
631	or its management agent at any one time. As used in this
632	paragraph, the term "persons who control or disburse funds of
633	the association" includes, but is not limited to, those
634	individuals authorized to sign checks on behalf of the
635	association, and the president, secretary, and treasurer of the
636	association. The association shall bear the cost of any such
637	bonding.
638	(i)  The association may amend the declaration of
639	condominium without regard to any requirement for approval by
640	mortgagees of amendments affecting insurance requirements for
641	the purpose of conforming the declaration of condominium to the
642	coverage requirements of this subsection.
643	(j)  Any portion of the condominium property required to be
644	insured by the association against property casualty loss
645	pursuant to paragraph (f) which is damaged by casualty shall be
646	reconstructed, repaired, or replaced as necessary by the
647	association as a common expense. All property hazard insurance
648	deductibles, uninsured losses, and other damages in excess of
649	property hazard insurance coverage under the property hazard
650	insurance policies maintained by the association are a common
651	expense of the condominium, except that:
652	1.  A unit owner is responsible for the costs of repair or
653	replacement of any portion of the condominium property not paid
654	by insurance proceeds, if such damage is caused by intentional
655	conduct, negligence, or failure to comply with the terms of the
656	declaration or the rules of the association by a unit owner, the
657	members of his or her family, unit occupants, tenants, guests,
658	or invitees, without compromise of the subrogation rights of any
659	insurer as set forth in paragraph (g).
660	2.  The provisions of subparagraph 1. regarding the
661	financial responsibility of a unit owner for the costs of
662	repairing or replacing other portions of the condominium
663	property also apply to the costs of repair or replacement of
664	personal property of other unit owners or the association, as
665	well as other property, whether real or personal, which the unit
666	owners are required to insure under paragraph (g).
667	3.  To the extent the cost of repair or reconstruction for
668	which the unit owner is responsible under this paragraph is
669	reimbursed to the association by insurance proceeds, and, to the
670	extent the association has collected the cost of such repair or
671	reconstruction from the unit owner, the association shall
672	reimburse the unit owner without the waiver of any rights of
673	subrogation.
674	4.  The association is not obligated to pay for repair or
675	reconstruction or repairs of property casualty losses as a
676	common expense if the property casualty losses were known or
677	should have been known to a unit owner and were not reported to
678	the association until after the insurance claim of the
679	association for that property casualty was settled or resolved
680	with finality, or denied on the basis that it was untimely
681	filed.
682	(k)  An association may, upon the approval of a majority of
683	the total voting interests in the association, opt out of the
684	provisions of paragraph (j) for the allocation of repair or
685	reconstruction expenses and allocate repair or reconstruction
686	expenses in the manner provided in the declaration as originally
687	recorded or as amended. Such vote may be approved by the voting
688	interests of the association without regard to any mortgagee
689	consent requirements.
690	(l)  In a multicondominium association that has not
691	consolidated its financial operations under subsection (6), any
692	condominium operated by the association may opt out of the
693	provisions of paragraph (j) with the approval of a majority of
694	the total voting interests in that condominium. Such vote may be
695	approved by the voting interests without regard to any mortgagee
696	consent requirements.
697	(m)  Any association or condominium voting to opt out of
698	the guidelines for repair or reconstruction expenses as
699	described in paragraph (j) must record a notice setting forth
700	the date of the opt-out vote and the page of the official
701	records book on which the declaration is recorded. The decision
702	to opt out is effective upon the date of recording of the notice
703	in the public records by the association. An association that
704	has voted to opt out of paragraph (j) may reverse that decision
705	by the same vote required in paragraphs (k) and (l), and notice
706	thereof shall be recorded in the official records.
707	(n)  The association is not obligated to pay for any
708	reconstruction or repair expenses due to property casualty loss
709	to any improvements installed by a current or former owner of
710	the unit or by the developer if the improvement benefits only
711	the unit for which it was installed and is not part of the
712	standard improvements installed by the developer on all units as
713	part of original construction, whether or not such improvement
714	is located within the unit. This paragraph does not relieve any
715	party of its obligations regarding recovery due under any
716	insurance implemented specifically for any such improvements.
717	(o)  The provisions of this subsection shall not apply to
718	timeshare condominium associations. Insurance for timeshare
719	condominium associations shall be maintained pursuant to s.
720	721.165.
721	(12)  OFFICIAL RECORDS.--
722	(b)  The official records of the association shall be
723	maintained within the state for at least 7 years. The records of
724	the association shall be made available to a unit owner within
725	45 miles of the condominium property or within the county in
726	which the condominium property is located within 5 working days
727	after receipt of written request by the board or its designee.
728	However, such distance requirement does not apply to an
729	association governing a timeshare condominium. This paragraph
730	may be complied with by having a copy of the official records of
731	the association available for inspection or copying on the
732	condominium property or association property., or The
733	association may offer the option of making the records of the
734	association available to a unit owner either electronically via
735	the Internet or by allowing the records to be viewed in
736	electronic format on a computer screen and printed upon request.
737	Section 6.  Paragraphs (c), (d), (h), and (o) of subsection
738	(2) of section 718.112, Florida Statutes, are amended, and
739	paragraph (p) is added to that subsection, to read:
740	718.112  Bylaws.--
741	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
742	following and, if they do not do so, shall be deemed to include
743	the following:
744	(c)  Board of administration meetings.--Meetings of the
745	board of administration at which a quorum of the members is
746	present shall be open to all unit owners. Any unit owner may
747	tape record or videotape meetings of the board of
748	administration. The right to attend such meetings includes the
749	right to speak at such meetings with reference to all designated
750	agenda items. The division shall adopt reasonable rules
751	governing the tape recording and videotaping of the meeting. The
752	association may adopt written reasonable rules governing the
753	frequency, duration, and manner of unit owner statements.
754	Adequate notice of all meetings, which notice shall specifically
755	incorporate an identification of agenda items, shall be posted
756	conspicuously on the condominium property at least 48 continuous
757	hours preceding the meeting except in an emergency. If 20
758	percent of the voting interests petition the board to address an
759	item of business, the board shall at its next regular board
760	meeting or at a special meeting of the board, but not later than
761	60 days after the receipt of the petition, place the item on the
762	agenda. Any item not included on the notice may be taken up on
763	an emergency basis by at least a majority plus one of the
764	members of the board. Such emergency action shall be noticed and
765	ratified at the next regular meeting of the board. However,
766	written notice of any meeting at which nonemergency special
767	assessments, or at which amendment to rules regarding unit use,
768	will be considered shall be mailed, delivered, or electronically
769	transmitted to the unit owners and posted conspicuously on the
770	condominium property not less than 14 days prior to the meeting.
771	Evidence of compliance with this 14-day notice shall be made by
772	an affidavit executed by the person providing the notice and
773	filed among the official records of the association. Upon notice
774	to the unit owners, the board shall by duly adopted rule
775	designate a specific location on the condominium property or
776	association property upon which all notices of board meetings
777	shall be posted. If there is no condominium property or
778	association property upon which notices can be posted, notices
779	of board meetings shall be mailed, delivered, or electronically
780	transmitted at least 14 days before the meeting to the owner of
781	each unit. In lieu of or in addition to the physical posting of
782	notice of any meeting of the board of administration on the
783	condominium property, the association may, by reasonable rule,
784	adopt a procedure for conspicuously posting and repeatedly
785	broadcasting the notice and the agenda on a closed-circuit cable
786	television system serving the condominium association. However,
787	if broadcast notice is used in lieu of a notice posted
788	physically on the condominium property, the notice and agenda
789	must be broadcast at least four times every broadcast hour of
790	each day that a posted notice is otherwise required under this
791	section. When broadcast notice is provided, the notice and
792	agenda must be broadcast in a manner and for a sufficient
793	continuous length of time so as to allow an average reader to
794	observe the notice and read and comprehend the entire content of
795	the notice and the agenda. Notice of any meeting in which
796	regular or special assessments against unit owners are to be
797	considered for any reason shall specifically state that
798	assessments will be considered and the nature, actual estimated
799	cost, and description of the purposes for such assessments.
800	Meetings of a committee to take final action on behalf of the
801	board or make recommendations to the board regarding the
802	association budget are subject to the provisions of this
803	paragraph. Meetings of a committee that does not take final
804	action on behalf of the board or make recommendations to the
805	board regarding the association budget are subject to the
806	provisions of this section, unless those meetings are exempted
807	from this section by the bylaws of the association.
808	Notwithstanding any other law, the requirement that board
809	meetings and committee meetings be open to the unit owners is
810	inapplicable to meetings between the board or a committee and
811	the association's attorney, with respect to proposed or pending
812	litigation, when the meeting is held for the purpose of seeking
813	or rendering legal advice.
814	(d)  Unit owner meetings.--
815	1.  There shall be an annual meeting of the unit owners
816	held at the location provided in the association bylaws and, if
817	the bylaws are silent as to the location, the meeting shall be
818	held within 45 miles of the condominium property. However, such
819	distance requirement does not apply to an association governing
820	a timeshare condominium. Unless the bylaws provide otherwise, a
821	vacancy on the board caused by the expiration of a director's
822	term shall be filled by electing a new board member, and the
823	election shall be by secret ballot; however, if the number of
824	vacancies equals or exceeds the number of candidates, no
825	election is required. The terms of all members of the board
826	shall expire at the first annual meeting after July 1, 2009, and
827	at each the annual meeting thereafter and such board members may
828	stand for reelection unless otherwise permitted by the bylaws.
829	In the event that the bylaws permit staggered terms of no more
830	than 2 years and upon approval of a majority of the total voting
831	interests, the association board members may serve 2-year
832	staggered terms starting with the first annual meeting after
833	July 1, 2009, at which time the newly elected directors shall,
834	by random lot, determine which directors shall serve a full 2-
835	year term and which directors shall only serve a 1-year term in
836	order to maintain staggered terms. If no person is interested in
837	or demonstrates an intention to run for the position of a board
838	member whose term has expired according to the provisions of
839	this subparagraph, such board member whose term has expired
840	shall be automatically reappointed to the board of
841	administration and need not stand for reelection. In a
842	condominium association of more than 10 units, coowners of a
843	unit may not serve as members of the board of directors at the
844	same time. Any unit owner desiring to be a candidate for board
845	membership shall comply with subparagraph 3. A person who has
846	been suspended or removed by the division under this chapter, or
847	who is delinquent in the payment of any fee or assessment as
848	provided in paragraph (n), is not eligible for board membership.
849	A person who has been convicted of any felony in this state or
850	in a United States District or Territorial Court, or who has
851	been convicted of any offense in another jurisdiction that would
852	be considered a felony if committed in this state, is not
853	eligible for board membership unless such felon's civil rights
854	have been restored for a period of no less than 5 years as of
855	the date on which such person seeks election to the board. The
856	validity of an action by the board is not affected if it is
857	later determined that a member of the board is ineligible for
858	board membership due to having been convicted of a felony.
859	2.  The bylaws shall provide the method of calling meetings
860	of unit owners, including annual meetings. Written notice, which
861	notice must include an agenda, shall be mailed, hand delivered,
862	or electronically transmitted to each unit owner at least 14
863	days prior to the annual meeting and shall be posted in a
864	conspicuous place on the condominium property at least 14
865	continuous days preceding the annual meeting. Upon notice to the
866	unit owners, the board shall by duly adopted rule designate a
867	specific location on the condominium property or association
868	property upon which all notices of unit owner meetings shall be
869	posted; however, if there is no condominium property or
870	association property upon which notices can be posted, this
871	requirement does not apply. In lieu of or in addition to the
872	physical posting of notice of any meeting of the unit owners on
873	the condominium property, the association may, by reasonable
874	rule, adopt a procedure for conspicuously posting and repeatedly
875	broadcasting the notice and the agenda on a closed-circuit cable
876	television system serving the condominium association. However,
877	if broadcast notice is used in lieu of a notice posted
878	physically on the condominium property, the notice and agenda
879	must be broadcast at least four times every broadcast hour of
880	each day that a posted notice is otherwise required under this
881	section. When broadcast notice is provided, the notice and
882	agenda must be broadcast in a manner and for a sufficient
883	continuous length of time so as to allow an average reader to
884	observe the notice and read and comprehend the entire content of
885	the notice and the agenda. Unless a unit owner waives in writing
886	the right to receive notice of the annual meeting, such notice
887	shall be hand delivered, mailed, or electronically transmitted
888	to each unit owner. Notice for meetings and notice for all other
889	purposes shall be mailed to each unit owner at the address last
890	furnished to the association by the unit owner, or hand
891	delivered to each unit owner. However, if a unit is owned by
892	more than one person, the association shall provide notice, for
893	meetings and all other purposes, to that one address which the
894	developer initially identifies for that purpose and thereafter
895	as one or more of the owners of the unit shall so advise the
896	association in writing, or if no address is given or the owners
897	of the unit do not agree, to the address provided on the deed of
898	record. An officer of the association, or the manager or other
899	person providing notice of the association meeting, shall
900	provide an affidavit or United States Postal Service certificate
901	of mailing, to be included in the official records of the
902	association affirming that the notice was mailed or hand
903	delivered, in accordance with this provision.
904	3.  The members of the board shall be elected by written
905	ballot or voting machine. Proxies shall in no event be used in
906	electing the board, either in general elections or elections to
907	fill vacancies caused by recall, resignation, or otherwise,
908	unless otherwise provided in this chapter. Not less than 60 days
909	before a scheduled election, the association shall mail,
910	deliver, or electronically transmit, whether by separate
911	association mailing or included in another association mailing,
912	delivery, or transmission, including regularly published
913	newsletters, to each unit owner entitled to a vote, a first
914	notice of the date of the election along with a certification
915	form provided by the division attesting that he or she has read
916	and understands, to the best of his or her ability, the
917	governing documents of the association and the provisions of
918	this chapter and any applicable rules. Any unit owner or other
919	eligible person desiring to be a candidate for the board must
920	give written notice to the association not less than 40 days
921	before a scheduled election. Together with the written notice
922	and agenda as set forth in subparagraph 2., the association
923	shall mail, deliver, or electronically transmit a second notice
924	of the election to all unit owners entitled to vote therein,
925	together with a ballot which shall list all candidates. Upon
926	request of a candidate, the association shall include an
927	information sheet, no larger than 81/2 inches by 11 inches,
928	which must be furnished by the candidate not less than 35 days
929	before the election, along with the signed certification form
930	provided for in this subparagraph, to be included with the
931	mailing, delivery, or transmission of the ballot, with the costs
932	of mailing, delivery, or electronic transmission and copying to
933	be borne by the association. The association is not liable for
934	the contents of the information sheets prepared by the
935	candidates. In order to reduce costs, the association may print
936	or duplicate the information sheets on both sides of the paper.
937	The division shall by rule establish voting procedures
938	consistent with the provisions contained herein, including rules
939	establishing procedures for giving notice by electronic
940	transmission and rules providing for the secrecy of ballots.
941	Elections shall be decided by a plurality of those ballots cast.
942	There shall be no quorum requirement; however, at least 20
943	percent of the eligible voters must cast a ballot in order to
944	have a valid election of members of the board. No unit owner
945	shall permit any other person to vote his or her ballot, and any
946	such ballots improperly cast shall be deemed invalid, provided
947	any unit owner who violates this provision may be fined by the
948	association in accordance with s. 718.303. A unit owner who
949	needs assistance in casting the ballot for the reasons stated in
950	s. 101.051 may obtain assistance in casting the ballot. The
951	regular election shall occur on the date of the annual meeting.
952	The provisions of this subparagraph shall not apply to timeshare
953	condominium associations. Notwithstanding the provisions of this
954	subparagraph, an election is not required unless more candidates
955	file notices of intent to run or are nominated than board
956	vacancies exist.
957	4.  Any approval by unit owners called for by this chapter
958	or the applicable declaration or bylaws, including, but not
959	limited to, the approval requirement in s. 718.111(8), shall be
960	made at a duly noticed meeting of unit owners and shall be
961	subject to all requirements of this chapter or the applicable
962	condominium documents relating to unit owner decisionmaking,
963	except that unit owners may take action by written agreement,
964	without meetings, on matters for which action by written
965	agreement without meetings is expressly allowed by the
966	applicable bylaws or declaration or any statute that provides
967	for such action.
968	5.  Unit owners may waive notice of specific meetings if
969	allowed by the applicable bylaws or declaration or any statute.
970	If authorized by the bylaws, notice of meetings of the board of
971	administration, unit owner meetings, except unit owner meetings
972	called to recall board members under paragraph (j), and
973	committee meetings may be given by electronic transmission to
974	unit owners who consent to receive notice by electronic
975	transmission.
976	6.  Unit owners shall have the right to participate in
977	meetings of unit owners with reference to all designated agenda
978	items. However, the association may adopt reasonable rules
979	governing the frequency, duration, and manner of unit owner
980	participation.
981	7.  Any unit owner may tape record or videotape a meeting
982	of the unit owners subject to reasonable rules adopted by the
983	division.
984	8.  Unless otherwise provided in the bylaws, any vacancy
985	occurring on the board before the expiration of a term may be
986	filled by the affirmative vote of the majority of the remaining
987	directors, even if the remaining directors constitute less than
988	a quorum, or by the sole remaining director. In the alternative,
989	a board may hold an election to fill the vacancy, in which case
990	the election procedures must conform to the requirements of
991	subparagraph 3. unless the association governs 10 units or less
992	and has opted out of the statutory election process, in which
993	case the bylaws of the association control. Unless otherwise
994	provided in the bylaws, a board member appointed or elected
995	under this section shall fill the vacancy for the unexpired term
996	of the seat being filled. Filling vacancies created by recall is
997	governed by paragraph (j) and rules adopted by the division.
998	9.  Notwithstanding subparagraphs (b)2. and (d)3., an
999	association of 10 or fewer units may, by the affirmative vote of
1000	a majority of the total voting interests, provide for different
1001	voting and election procedures in its bylaws, which vote may be
1002	by a proxy specifically delineating the different voting and
1003	election procedures. The different voting and election
1004	procedures may provide for elections to be conducted by limited
1005	or general proxy.
1006	(h)  Amendment of bylaws.--
1007	1.  The method by which the bylaws may be amended
1008	consistent with the provisions of this chapter shall be stated.
1009	If the bylaws fail to provide a method of amendment, the bylaws
1010	may be amended if the amendment is approved by the owners of not
1011	less than two-thirds of the voting interests.
1012	2.  No bylaw shall be revised or amended by reference to
1013	its title or number only. Proposals to amend existing bylaws
1014	shall contain the full text of the bylaws to be amended; new
1015	words shall be inserted in the text underlined, and words to be
1016	deleted shall be lined through with hyphens. However, if the
1017	proposed change is so extensive that this procedure would
1018	hinder, rather than assist, the understanding of the proposed
1019	amendment, it is not necessary to use underlining and hyphens as
1020	indicators of words added or deleted, but, instead, a notation
1021	must be inserted immediately preceding the proposed amendment in
1022	substantially the following language: "Substantial rewording of
1023	bylaw. See bylaw _____ for present text."
1024	3.  Nonmaterial errors or omissions in the bylaw process
1025	will not invalidate an otherwise properly promulgated amendment.
1026	4.  If the bylaws provide for amendment by the board of
1027	administration, no bylaw may be amended unless it is heard and
1028	noticed at two consecutive meetings of the board of
1029	administration that are at least 1 week apart. If the bylaws
1030	provide for amendment of the bylaws by a vote of the unit
1031	owners, the meeting at which the vote is to be taken must be
1032	conducted between the hours of 6 p.m. and 10 p.m. local time.
1033	(o)  Director or officer offenses.--A director or officer
1034	charged by information or indictment with a felony theft or
1035	embezzlement offense involving the association's funds or
1036	property shall be removed from office, creating a vacancy in the
1037	office to be filled according to law. While such director or
1038	officer has such criminal charge pending in the state or federal
1039	court system, he or she may not be appointed or elected to a
1040	position as a director or officer. However, should the charges
1041	be resolved without a finding of guilt, the director or officer
1042	shall be reinstated for the remainder of his or her term of
1043	office, if any.
1044	(p)  Qualification of directors.--In addition to any other
1045	requirement for office in statute or in the governing documents
1046	of the association, a person running for or seeking appointment
1047	to the board must meet the following qualifications:
1048	1.  In a condominium association of 10 or more units, only
1049	one individual coowner of a unit may serve on the board of
1050	administration.
1051	2.  No person may serve as a director of any condominium
1052	association in the state if restricted from serving by action of
1053	the division pursuant to s. 718.501(1)(d)6.
1054	3.  A person who has been convicted of any felony in this
1055	state or in a United States District or Territorial Court, or
1056	who has been convicted of any offense in another jurisdiction
1057	that would be considered a felony if committed in this state, is
1058	not eligible for board membership unless such felon's civil
1059	rights have been restored for a period of no less than 5 years
1060	as of the date on which such person seeks election to the board.
1061	4.  Within 30 days after being elected or appointed to the
1062	board of administration, a director shall certify in writing to
1063	the secretary of the association that he or she has read parts I
1064	and III of chapter 718; ss. 718.501, 617.0202, 617.0206,
1065	617.0302-617.0304, 617.0501, 617.0505, 617.0801-617.0833,
1066	617.0840-617.0843, 617.1622, and 617.2102; and the association's
1067	declaration of condominium, articles of incorporation, bylaws,
1068	and current written policies. The director shall further certify
1069	that he or she will work to uphold such documents and policies
1070	to the best of his or her ability, and that he or she will
1071	faithfully discharge his or her fiduciary responsibility to the
1072	association's members. If the division finds that a director has
1073	falsely certified that he or she has read the required statutes
1074	and documents, the division shall order the director removed
1075	from the board and shall order the director to reimburse the
1076	division for the cost of prosecution and hearing.
1077	5.  After turnover of the association pursuant to s.
1078	718.301(2), a director must:
1079	a.  If the unit is owned by an individual or individuals,
1080	be one of those individuals.
1081	b.  If the unit is owned by a trust, be an individual
1082	qualified pursuant to s. 617.0802.
1083	c.  If the unit is owned by an entity other than a trust,
1084	be an individual designated by the entity that owns the unit.
1085
1086	These qualifications shall operate on a continuing basis, and
1087	upon a failure of a director at any time to fail to meet a
1088	qualification, the secretary shall certify that the director is
1089	removed from office and that a vacancy in office exists.
1090	Section 7.  Paragraph (a) of subsection (5) of section
1091	718.113, Florida Statutes, is amended to read:
1092	718.113  Maintenance; limitation upon improvement; display
1093	of flag; hurricane shutters; display of religious decorations.--
1094	(5)  Each board of administration shall adopt hurricane
1095	shutter specifications for each building within each condominium
1096	operated by the association which shall include color, style,
1097	and other factors deemed relevant by the board. All
1098	specifications adopted by the board shall comply with the
1099	applicable building code.
1100	(a)  The board may, subject to the provisions of s.
1101	718.3026, and the approval of a majority of voting interests of
1102	the condominium, install hurricane shutters or hurricane
1103	protection that complies with or exceeds the applicable building
1104	code, or both, except that a vote of the owners is not required
1105	if the maintenance, repair, and replacement of hurricane
1106	shutters or other forms of hurricane protection are the
1107	responsibility of the association pursuant to the declaration of
1108	condominium. However, where hurricane protection or laminated
1109	glass or window film architecturally designed to function as
1110	hurricane protection which complies with or exceeds the current
1111	applicable building code has been previously installed, the
1112	board may not install hurricane shutters or other hurricane
1113	protection. Code-compliant impact glass may be installed by the
1114	association as hurricane protection if the area in which the
1115	glass is to be installed is an area that is the responsibility
1116	of the association. If a unit owner installed code-compliant
1117	impact glass prior to the association voting to install such
1118	glass, and such glass and the frame thereof complies with the
1119	current applicable building codes and is otherwise in good
1120	repair, the unit owner shall not be required to pay the unit
1121	owner's pro rata share of the cost of installing code-compliant
1122	impact glass to the condominium association, notwithstanding s.
1123	718.116(9).
1124	Section 8.  Subsection (1) of section 718.116, Florida
1125	Statutes, is amended, and subsection (11) is added to that
1126	section, to read:
1127	718.116  Assessments; liability; lien and priority;
1128	interest; collection; rent during foreclosure.--
1129	(1)(a)  A unit owner, regardless of how his or her title
1130	has been acquired, including by purchase at a foreclosure sale
1131	or by deed in lieu of foreclosure, is liable for all assessments
1132	which come due while he or she is the unit owner. Additionally,
1133	a unit owner is jointly and severally liable with the previous
1134	owner for all unpaid assessments that came due up to the time of
1135	transfer of title. This liability is without prejudice to any
1136	right the owner may have to recover from the previous owner the
1137	amounts paid by the owner.
1138	(b)  The liability of a first mortgagee or its successor or
1139	assignees who acquire title to a unit by foreclosure or by deed
1140	in lieu of foreclosure for the unpaid assessments that became
1141	due prior to the mortgagee's acquisition of title is limited to
1142	the lesser of:
1143	1.  The unit's unpaid common expenses and regular periodic
1144	assessments which accrued or came due during the 24 6 months
1145	immediately preceding the acquisition of title and for which
1146	payment in full has not been received by the association; or
1147	2.  One-half of the unit's unpaid common expenses and
1148	regular periodic assessments which accrued or came due from the
1149	filing of the foreclosure action through the sale of the unit,
1150	provided that the mortgagee timely paid in full the payment
1151	required by paragraph (e) and, at the same time, remitted to the
1152	association advanced common expenses and regular periodic
1153	assessments equal to one-half of the total unpaid common
1154	expenses and regular periodic assessments that came due in that
1155	time period. Any such advance shall be taxed as a cost in the
1156	foreclosure action, and the mortgagor shall be personally liable
1157	to the mortgagee for the value of the payment made to the
1158	association plus interest at the interest rate provided for in
1159	the promissory note for advances. One percent of the original
1160	mortgage debt. The provisions of this paragraph apply only if
1161	the first mortgagee joined the association as a defendant in the
1162	foreclosure action. Joinder of the association is not required
1163	if, on the date the complaint is filed, the association was
1164	dissolved or did not maintain an office or agent for service of
1165	process at a location which was known to or reasonably
1166	discoverable by the mortgagee.
1167	(c)  The person acquiring title shall pay the amount owed
1168	to the association within 30 days after transfer of title.
1169	Failure to pay the full amount when due shall entitle the
1170	association to record a claim of lien against the parcel and
1171	proceed in the same manner as provided in this section for the
1172	collection of unpaid assessments.
1173	(d)  With respect to each timeshare unit, each owner of a
1174	timeshare estate therein is jointly and severally liable for the
1175	payment of all assessments and other charges levied against or
1176	with respect to that unit pursuant to the declaration or bylaws,
1177	except to the extent that the declaration or bylaws may provide
1178	to the contrary.
1179	(e)  A mortgagee who files a foreclosure case on a mortgage
1180	secured by a condominium unit shall pay to the association
1181	within 15 days after the filing of the action all of the
1182	condominium unit's then unpaid common expenses and regular
1183	periodic assessments which accrued or came due up to the date of
1184	the filing of the foreclosure action. The payment shall be taxed
1185	as a cost in the foreclosure action, and the mortgagor shall be
1186	personally liable to the mortgagee for the value of the payment
1187	made to the association plus interest at the interest rate
1188	provided for in the promissory note for advances. The court
1189	shall dismiss a foreclosure action on the association's motion
1190	to dismiss for failure to make such payment and shall award the
1191	association the costs and reasonable attorney's fees related to
1192	the motion. Notwithstanding the provisions of paragraph (b), a
1193	first mortgagee or its successor or assignees who acquire title
1194	to a condominium unit as a result of the foreclosure of the
1195	mortgage or by deed in lieu of foreclosure of the mortgage shall
1196	be exempt from liability for all unpaid assessments attributable
1197	to the parcel or chargeable to the previous owner which came due
1198	prior to acquisition of title if the first mortgage was recorded
1199	prior to April 1, 1992. If, however, the first mortgage was
1200	recorded on or after April 1, 1992, or on the date the mortgage
1201	was recorded, the declaration included language incorporating by
1202	reference future amendments to this chapter, the provisions of
1203	paragraph (b) shall apply.
1204	(f)  The provisions of this subsection are intended to
1205	clarify existing law, and shall not be available in any case
1206	where the unpaid assessments sought to be recovered by the
1207	association are secured by a lien recorded prior to the
1208	recording of the mortgage. Notwithstanding the provisions of
1209	chapter 48, the association shall be a proper party to intervene
1210	in any foreclosure proceeding to seek equitable relief.
1211	(g)  For purposes of this subsection, the term "successor
1212	or assignee" as used with respect to a first mortgagee includes
1213	only a subsequent holder of the first mortgage.
1214	(11)  During the pendency of any foreclosure action of a
1215	condominium unit, if the unit is occupied by a tenant and the
1216	unit owner is delinquent in the payment of regular assessments,
1217	the association may demand that the tenant pay to the
1218	association the future regular assessments related to the
1219	condominium unit. The demand shall be continuing in nature, and
1220	upon demand the tenant shall continue to pay the regular
1221	assessments to the association until the association releases
1222	the tenant or the tenant discontinues tenancy in the unit. The
1223	association shall mail written notice to the unit owner of the
1224	association's demand that the tenant pay regular assessments to
1225	the association. The tenant shall not be liable for increases in
1226	the amount of the regular assessment due unless the tenant was
1227	reasonably notified of the increase prior to the day that the
1228	rent is due. The tenant shall be given a credit against rents
1229	due to the unit owner in the amount of assessments paid to the
1230	association. The association shall, upon request, provide the
1231	tenant with written receipts for payments made. The association
1232	may issue notices under s. 83.56 and may sue for eviction under
1233	ss. 83.59-83.625 as if the association were a landlord under
1234	part II of chapter 83 should the tenant fail to pay an
1235	assessment. However, the association shall not otherwise be
1236	considered a landlord under chapter 83 and shall specifically
1237	not have any duty under s. 83.51. The tenant shall not, by
1238	virtue of payment of assessments, have any of the rights of a
1239	unit owner to vote in any election or to examine the books and
1240	records of the association. A court may supersede the effect of
1241	this subsection by appointing a receiver.
1242	Section 9.  Subsection (2) of section 718.1265, Florida
1243	Statutes, is amended to read:
1244	718.1265  Association emergency powers.--
1245	(2)  The special powers authorized under subsection (1)
1246	shall be limited to that time reasonably necessary to protect
1247	the health, safety, and welfare of the association and the unit
1248	owners and the unit owners' family members, tenants, guests,
1249	agents, or invitees and shall be reasonably necessary to
1250	mitigate further damage and make emergency repairs.
1251	Additionally, unless 20 percent or more of the units are made
1252	uninhabitable by the emergency, the special powers authorized
1253	under subsection (1) shall only be exercised during the term of
1254	the Governor's executive order or proclamation declaring the
1255	state of emergency in the locale in which the condominium is
1256	located.
1257	Section 10.  Subsection (5) is added to section 718.3025,
1258	Florida Statutes, to read:
1259	718.3025  Agreements for operation, maintenance, or
1260	management of condominiums; specific requirements.--
1261	(5)  A condominium association with total annual revenues
1262	of $250,000 or more shall enter into a management agreement with
1263	a person or firm licensed under part VIII of chapter 468.
1264	Section 11.  Subsection (1) of section 718.501, Florida
1265	Statutes, is amended, and subsection (3) is added to that
1266	section, to read:
1267	718.501  Authority, responsibility, and duties of Division
1268	of Florida Condominiums, Timeshares, and Mobile Homes.--
1269	(1)  The Division of Florida Condominiums, Timeshares, and
1270	Mobile Homes of the Department of Business and Professional
1271	Regulation, referred to as the "division" in this part, has the
1272	power to enforce and ensure compliance with the provisions of
1273	this chapter and rules relating to the development,
1274	construction, sale, lease, ownership, operation, and management
1275	of residential condominium units. In performing its duties, the
1276	division has complete jurisdiction to investigate complaints and
1277	enforce compliance with the provisions of this chapter with
1278	respect to associations that are still under developer control
1279	and complaints against developers involving improper turnover or
1280	failure to turnover, pursuant to s. 718.301. However, after
1281	turnover has occurred, the division shall only have jurisdiction
1282	to investigate complaints related to financial issues,
1283	elections, and unit owner access to association records pursuant
1284	to s. 718.111(12).
1285	(a)1.  The division may make necessary public or private
1286	investigations within or outside this state to determine whether
1287	any person has violated this chapter or any rule or order
1288	hereunder, to aid in the enforcement of this chapter, or to aid
1289	in the adoption of rules or forms hereunder.
1290	2.  The division may submit any official written report,
1291	worksheet, or other related paper, or a duly certified copy
1292	thereof, compiled, prepared, drafted, or otherwise made by and
1293	duly authenticated by a financial examiner or analyst to be
1294	admitted as competent evidence in any hearing in which the
1295	financial examiner or analyst is available for cross-examination
1296	and attests under oath that such documents were prepared as a
1297	result of an examination or inspection conducted pursuant to
1298	this chapter.
1299	(b)  The division may require or permit any person to file
1300	a statement in writing, under oath or otherwise, as the division
1301	determines, as to the facts and circumstances concerning a
1302	matter to be investigated.
1303	(c)  For the purpose of any investigation under this
1304	chapter, the division director or any officer or employee
1305	designated by the division director may administer oaths or
1306	affirmations, subpoena witnesses and compel their attendance,
1307	take evidence, and require the production of any matter which is
1308	relevant to the investigation, including the existence,
1309	description, nature, custody, condition, and location of any
1310	books, documents, or other tangible things and the identity and
1311	location of persons having knowledge of relevant facts or any
1312	other matter reasonably calculated to lead to the discovery of
1313	material evidence. Upon the failure by a person to obey a
1314	subpoena or to answer questions propounded by the investigating
1315	officer and upon reasonable notice to all persons affected
1316	thereby, the division may apply to the circuit court for an
1317	order compelling compliance.
1318	(d)  Notwithstanding any remedies available to unit owners
1319	and associations, if the division has reasonable cause to
1320	believe that a violation of any provision of this chapter or
1321	related rule has occurred, the division may institute
1322	enforcement proceedings in its own name against any developer,
1323	association, officer, or member of the board of administration,
1324	or its assignees or agents, as follows:
1325	1.  The division may permit a person whose conduct or
1326	actions may be under investigation to waive formal proceedings
1327	and enter into a consent proceeding whereby orders, rules, or
1328	letters of censure or warning, whether formal or informal, may
1329	be entered against the person.
1330	2.  The division may issue an order requiring the
1331	developer, association, developer-designated officer, or
1332	developer-designated member of the board of administration,
1333	developer-designated assignees or agents, community association
1334	manager, or community association management firm to cease and
1335	desist from the unlawful practice and take such affirmative
1336	action as in the judgment of the division will carry out the
1337	purposes of this chapter. If the division finds that a
1338	developer, association, officer, or member of the board of
1339	administration, or its assignees or agents, is violating or is
1340	about to violate any provision of this chapter, any rule adopted
1341	or order issued by the division, or any written agreement
1342	entered into with the division, and presents an immediate danger
1343	to the public requiring an immediate final order, it may issue
1344	an emergency cease and desist order reciting with particularity
1345	the facts underlying such findings. The emergency cease and
1346	desist order is effective for 90 days. If the division begins
1347	nonemergency cease and desist proceedings, the emergency cease
1348	and desist order remains effective until the conclusion of the
1349	proceedings under ss. 120.569 and 120.57.
1350	3.  If a developer fails to pay any restitution determined
1351	by the division to be owed, plus any accrued interest at the
1352	highest rate permitted by law, within 30 days after expiration
1353	of any appellate time period of a final order requiring payment
1354	of restitution or the conclusion of any appeal thereof,
1355	whichever is later, the division shall bring an action in
1356	circuit or county court on behalf of any association, class of
1357	unit owners, lessees, or purchasers for restitution, declaratory
1358	relief, injunctive relief, or any other available remedy. The
1359	division may also temporarily revoke its acceptance of the
1360	filing for the developer to which the restitution relates until
1361	payment of restitution is made.
1362	4.  The division may petition the court for the appointment
1363	of a receiver or conservator. If appointed, the receiver or
1364	conservator may take action to implement the court order to
1365	ensure the performance of the order and to remedy any breach
1366	thereof. In addition to all other means provided by law for the
1367	enforcement of an injunction or temporary restraining order, the
1368	circuit court may impound or sequester the property of a party
1369	defendant, including books, papers, documents, and related
1370	records, and allow the examination and use of the property by
1371	the division and a court-appointed receiver or conservator.
1372	5.  The division may apply to the circuit court for an
1373	order of restitution whereby the defendant in an action brought
1374	pursuant to subparagraph 4. shall be ordered to make restitution
1375	of those sums shown by the division to have been obtained by the
1376	defendant in violation of this chapter. Such restitution shall,
1377	at the option of the court, be payable to the conservator or
1378	receiver appointed pursuant to subparagraph 4. or directly to
1379	the persons whose funds or assets were obtained in violation of
1380	this chapter.
1381	6.  The division may impose a civil penalty against a
1382	developer or association, or its assignee or agent, for any
1383	violation of this chapter or a rule adopted under this chapter.
1384	The division may impose a civil penalty individually against any
1385	officer or board member who willfully and knowingly violates a
1386	provision of this chapter, adopted rule, or a final order of the
1387	division; may order the removal of such individual as an officer
1388	or from the board of administration or as an officer of the
1389	association; and may prohibit such individual from serving as an
1390	officer or on the board of a community association for a period
1391	of time. The term "willfully and knowingly" means that the
1392	division informed the officer or board member that his or her
1393	action or intended action violates this chapter, a rule adopted
1394	under this chapter, or a final order of the division and that
1395	the officer or board member refused to comply with the
1396	requirements of this chapter, a rule adopted under this chapter,
1397	or a final order of the division. The division, prior to
1398	initiating formal agency action under chapter 120, shall afford
1399	the officer or board member an opportunity to voluntarily comply
1400	with this chapter, a rule adopted under this chapter, or a final
1401	order of the division. An officer or board member who complies
1402	within 10 days is not subject to a civil penalty. A penalty may
1403	be imposed on the basis of each day of continuing violation, but
1404	in no event shall the penalty for any offense exceed $5,000. By
1405	January 1, 1998, the division shall adopt, by rule, penalty
1406	guidelines applicable to possible violations or to categories of
1407	violations of this chapter or rules adopted by the division. The
1408	guidelines must specify a meaningful range of civil penalties
1409	for each such violation of the statute and rules and must be
1410	based upon the harm caused by the violation, the repetition of
1411	the violation, and upon such other factors deemed relevant by
1412	the division. For example, the division may consider whether the
1413	violations were committed by a developer or owner-controlled
1414	association, the size of the association, and other factors. The
1415	guidelines must designate the possible mitigating or aggravating
1416	circumstances that justify a departure from the range of
1417	penalties provided by the rules. It is the legislative intent
1418	that minor violations be distinguished from those which endanger
1419	the health, safety, or welfare of the condominium residents or
1420	other persons and that such guidelines provide reasonable and
1421	meaningful notice to the public of likely penalties that may be
1422	imposed for proscribed conduct. This subsection does not limit
1423	the ability of the division to informally dispose of
1424	administrative actions or complaints by stipulation, agreed
1425	settlement, or consent order. All amounts collected shall be
1426	deposited with the Chief Financial Officer to the credit of the
1427	Division of Florida Condominiums, Timeshares, and Mobile Homes
1428	Trust Fund. If a developer fails to pay the civil penalty and
1429	the amount deemed to be owed to the association, the division
1430	shall issue an order directing that such developer cease and
1431	desist from further operation until such time as the civil
1432	penalty is paid or may pursue enforcement of the penalty in a
1433	court of competent jurisdiction. If an association fails to pay
1434	the civil penalty, the division shall pursue enforcement in a
1435	court of competent jurisdiction, and the order imposing the
1436	civil penalty or the cease and desist order will not become
1437	effective until 20 days after the date of such order. Any action
1438	commenced by the division shall be brought in the county in
1439	which the division has its executive offices or in the county
1440	where the violation occurred.
1441	7.  If a unit owner presents the division with proof that
1442	the unit owner has requested access to official records in
1443	writing by certified mail, and that after 10 days the unit owner
1444	again made the same request for access to official records in
1445	writing by certified mail, and that more than 10 days has
1446	elapsed since the second request and the association has still
1447	failed or refused to provide access to official records as
1448	required by this chapter, the division shall issue a subpoena
1449	requiring production of the requested records where the records
1450	are kept pursuant to s. 718.112.
1451	8.  In addition to subparagraph 6., the division may seek
1452	the imposition of a civil penalty through the circuit court for
1453	any violation for which the division may issue a notice to show
1454	cause under paragraph (r). The civil penalty shall be at least
1455	$500 but no more than $5,000 for each violation. The court may
1456	also award to the prevailing party court costs and reasonable
1457	attorney's fees and, if the division prevails, may also award
1458	reasonable costs of investigation.
1459	9.  Notwithstanding subparagraph 6., when the division
1460	finds that an officer or director has intentionally falsified
1461	association records with the intent to conceal material facts
1462	from the division, the board, or unit owners, the division shall
1463	prohibit the officer or director from acting as an officer or
1464	director of any condominium, cooperative, or homeowners'
1465	association for at least 1 year.
1466	10.  When the division finds that any person has derived an
1467	improper personal benefit from a condominium association, the
1468	division shall order the person to pay restitution to the
1469	association and shall order the person to pay to the division
1470	the costs of investigation and prosecution.
1471	(e)  The division may prepare and disseminate a prospectus
1472	and other information to assist prospective owners, purchasers,
1473	lessees, and developers of residential condominiums in assessing
1474	the rights, privileges, and duties pertaining thereto.
1475	(f)  The division has authority to adopt rules pursuant to
1476	ss. 120.536(1) and 120.54 to implement and enforce the
1477	provisions of this chapter.
1478	(g)  The division shall establish procedures for providing
1479	notice to an association and the developer during the period
1480	where the developer controls the association when the division
1481	is considering the issuance of a declaratory statement with
1482	respect to the declaration of condominium or any related
1483	document governing in such condominium community.
1484	(h)  The division shall furnish each association which pays
1485	the fees required by paragraph (2)(a) a copy of this act,
1486	subsequent changes to this act on an annual basis, an amended
1487	version of this act as it becomes available from the Secretary
1488	of State's office on a biennial basis, and the rules adopted
1489	thereto on an annual basis.
1490	(i)  The division shall annually provide each association
1491	with a summary of declaratory statements and formal legal
1492	opinions relating to the operations of condominiums which were
1493	rendered by the division during the previous year.
1494	(j)  The division shall provide training and educational
1495	programs for condominium association board members and unit
1496	owners. The training may, in the division's discretion, include
1497	web-based electronic media, and live training and seminars in
1498	various locations throughout the state. The division shall have
1499	the authority to review and approve education and training
1500	programs for board members and unit owners offered by providers
1501	and shall maintain a current list of approved programs and
1502	providers and shall make such list available to board members
1503	and unit owners in a reasonable and cost-effective manner.
1504	(k)  The division shall maintain a toll-free telephone
1505	number accessible to condominium unit owners.
1506	(l)  The division shall develop a program to certify both
1507	volunteer and paid mediators to provide mediation of condominium
1508	disputes. The division shall provide, upon request, a list of
1509	such mediators to any association, unit owner, or other
1510	participant in arbitration proceedings under s. 718.1255
1511	requesting a copy of the list. The division shall include on the
1512	list of volunteer mediators only the names of persons who have
1513	received at least 20 hours of training in mediation techniques
1514	or who have mediated at least 20 disputes. In order to become
1515	initially certified by the division, paid mediators must be
1516	certified by the Supreme Court to mediate court cases in county
1517	or circuit courts. However, the division may adopt, by rule,
1518	additional factors for the certification of paid mediators,
1519	which factors must be related to experience, education, or
1520	background. Any person initially certified as a paid mediator by
1521	the division must, in order to continue to be certified, comply
1522	with the factors or requirements imposed by rules adopted by the
1523	division.
1524	(m)  When a complaint is made, the division shall conduct
1525	its inquiry with due regard to the interests of the affected
1526	parties. Within 30 days after receipt of a complaint, the
1527	division shall acknowledge the complaint in writing and notify
1528	the complainant whether the complaint is within the jurisdiction
1529	of the division and whether additional information is needed by
1530	the division from the complainant. The division shall conduct
1531	its investigation and shall, within 90 days after receipt of the
1532	original complaint or of timely requested additional
1533	information, take action upon the complaint. However, the
1534	failure to complete the investigation within 90 days does not
1535	prevent the division from continuing the investigation,
1536	accepting or considering evidence obtained or received after 90
1537	days, or taking administrative action if reasonable cause exists
1538	to believe that a violation of this chapter or a rule of the
1539	division has occurred. If an investigation is not completed
1540	within the time limits established in this paragraph, the
1541	division shall, on a monthly basis, notify the complainant in
1542	writing of the status of the investigation. When reporting its
1543	action to the complainant, the division shall inform the
1544	complainant of any right to a hearing pursuant to ss. 120.569
1545	and 120.57.
1546	(n)  Condominium association directors, officers, and
1547	employees; condominium developers; community association
1548	managers; and community association management firms have an
1549	ongoing duty to reasonably cooperate with the division in any
1550	investigation pursuant to this section. The division shall refer
1551	to local law enforcement authorities any person whom the
1552	division believes has altered, destroyed, concealed, or removed
1553	any record, document, or thing required to be kept or maintained
1554	by this chapter with the purpose to impair its verity or
1555	availability in the department's investigation.
1556	(o)  The division may:
1557	1.  Contract with agencies in this state or other
1558	jurisdictions to perform investigative functions; or
1559	2.  Accept grants-in-aid from any source.
1560	(p)  The division shall cooperate with similar agencies in
1561	other jurisdictions to establish uniform filing procedures and
1562	forms, public offering statements, advertising standards, and
1563	rules and common administrative practices.
1564	(q)  The division shall consider notice to a developer to
1565	be complete when it is delivered to the developer's address
1566	currently on file with the division.
1567	(r)  In addition to its enforcement authority, the division
1568	may issue a notice to show cause, which shall provide for a
1569	hearing, upon written request, in accordance with chapter 120.
1570	(s)  The division shall submit to the Governor, the
1571	President of the Senate, the Speaker of the House of
1572	Representatives, and the chairs of the legislative
1573	appropriations committees an annual report that includes, but
1574	need not be limited to, the number of training programs provided
1575	for condominium association board members and unit owners, the
1576	number of complaints received by type, the number and percent of
1577	complaints acknowledged in writing within 30 days and the number
1578	and percent of investigations acted upon within 90 days in
1579	accordance with paragraph (m), and the number of investigations
1580	exceeding the 90-day requirement. The annual report shall also
1581	include an evaluation of the division's core business processes
1582	and make recommendations for improvements, including statutory
1583	changes. The report shall be submitted by September 30 following
1584	the end of the fiscal year.
1585	(3)  The division shall create a booklet of the laws that a
1586	director must read as required by s. 718.112(2)(p)4. The booklet
1587	shall be available for free download from the division's
1588	website. The division may provide a printed version to directors
1589	for free or for a cost not to exceed the division's actual cost
1590	of production and mailing.
1591	Section 12.  Subsection (9) of section 718.5012, Florida
1592	Statutes, is amended to read:
1593	718.5012  Ombudsman; powers and duties.--The ombudsman
1594	shall have the powers that are necessary to carry out the duties
1595	of his or her office, including the following specific powers:
1596	(9)  To assist with the resolution of disputes between unit
1597	owners and the association or between unit owners when the
1598	dispute is not within the jurisdiction of the division to
1599	resolve or the division has declined to resolve a dispute.
1600	Section 13.  Subsection (1) of section 718.50151, Florida
1601	Statutes, is amended to read:
1602	718.50151  Community Association Living Study Council;
1603	membership functions.--
1604	(1)  There is created the Community Association Living
1605	Study Council. The council shall consist of seven appointed
1606	members. Two members shall be appointed by the President of the
1607	Senate, two members shall be appointed by the Speaker of the
1608	House of Representatives, and three members shall be appointed
1609	by the Governor. One member that is appointed by the Governor
1610	may represent timeshare condominiums. The council shall be
1611	created as of October 1 every 5 years, commencing July October
1612	1, 2009 2008, and shall exist for a 6-month term. The director
1613	of the division shall appoint an ex officio nonvoting member.
1614	The Legislature intends that the persons appointed represent a
1615	cross-section of persons experienced interested in community
1616	association issues. No member of the council may be a registered
1617	lobbyist, partner or shareholder in a firm providing lobbying
1618	services, or principal or employee of a lobbying firm who is
1619	provided compensation by community associations. The council
1620	shall be located within the division for administrative
1621	purposes. Members of the council shall serve without
1622	compensation but are entitled to receive per diem and travel
1623	expenses pursuant to s. 112.061 while on official business. The
1624	initial members of the council shall be those persons formerly
1625	appointed to the Community Association Living Study Council who
1626	are otherwise qualified to serve on the Community Association
1627	Study Council.
1628	Section 14.  Subsections (11) and (26) of section 719.103,
1629	Florida Statutes, are amended to read:
1630	719.103  Definitions.--As used in this chapter:
1631	(11)  "Conspicuous type" means bold type in capital letters
1632	no smaller than the largest type, exclusive of headings, on the
1633	page on which it appears and, in all cases, at least 10-point
1634	type. When conspicuous type is required, it must be separated on
1635	all sides from other type and print. Conspicuous type may be
1636	used in a contract for purchase and sale of a unit, a lease of a
1637	unit for more than 5 years, or a prospectus or offering circular
1638	only when required by law.
1639	(26)  "Unit owner," or "owner of a unit," or "shareholder"
1640	means the person holding a share in the cooperative association
1641	and a lease or other muniment of title or possession of a unit
1642	that is granted by the association as the owner of the
1643	cooperative property.
1644	Section 15.  Section 719.104, Florida Statutes, is amended
1645	to read:
1646	719.104  The association Cooperatives; access to units;
1647	records; financial reports; assessments; purchase of leases.--
1648	(1)  RIGHT OF ACCESS TO UNITS.--The association has the
1649	irrevocable right of access to each unit from time to time
1650	during reasonable hours when necessary for the maintenance,
1651	repair, or replacement of any structural components of the
1652	building or of any mechanical, electrical, or plumbing elements
1653	necessary to prevent damage to the building or to another unit.
1654	(2)  OFFICIAL RECORDS.--
1655	(a)  From the inception of the association, the association
1656	shall maintain a copy of each of the following, where
1657	applicable, which shall constitute the official records of the
1658	association:
1659	1.  The plans, permits, warranties, and other items
1660	provided by the developer pursuant to s. 719.301(4).
1661	2.  A photocopy of the cooperative documents.
1662	3.  A copy of the current rules of the association.
1663	4.  A book or books containing the minutes of all meetings
1664	of the association, of the board of directors, and of the
1665	shareholders unit owners, which minutes shall be retained for a
1666	period of not less than 7 years.
1667	5.  A current roster of all shareholders unit owners and
1668	their mailing addresses, unit identifications, voting
1669	certifications, and, if known, telephone numbers. The
1670	association shall also maintain the electronic mailing addresses
1671	and the numbers designated by shareholders unit owners for
1672	receiving notice sent by electronic transmission of those
1673	shareholders unit owners consenting to receive notice by
1674	electronic transmission. The electronic mailing addresses and
1675	numbers provided by shareholders unit owners to receive notice
1676	by electronic transmission shall be removed from association
1677	records when consent to receive notice by electronic
1678	transmission is revoked. However, the association is not liable
1679	for an erroneous disclosure of the electronic mail address or
1680	the number for receiving electronic transmission of notices.
1681	6.  All current insurance policies of the association.
1682	7.  A current copy of any management agreement, lease, or
1683	other contract to which the association is a party or under
1684	which the association or the shareholders unit owners have an
1685	obligation or responsibility.
1686	8.  Bills of sale or transfer for all property owned by the
1687	association.
1688	9.  Accounting records for the association and separate
1689	accounting records for each unit it operates, according to good
1690	accounting practices. Any person who knowingly or intentionally
1691	defaces or destroys accounting records required to be maintained
1692	by this chapter, or who knowingly or intentionally fails to
1693	create or maintain accounting records required to be maintained
1694	by this chapter, is personally subject to a civil penalty
1695	pursuant to s. 719.501(1)(d). All accounting records shall be
1696	maintained for a period of not less than 7 years. The accounting
1697	records shall include, but not be limited to:
1698	a.  Accurate, itemized, and detailed records of all
1699	receipts and expenditures.
1700	b.  A current account and a monthly, bimonthly, or
1701	quarterly statement of the account for each unit designating the
1702	name of the shareholder unit owner, the due date and amount of
1703	each assessment, the amount paid upon the account, and the
1704	balance due.
1705	c.  All audits, reviews, accounting statements, and
1706	financial reports of the association.
1707	d.  All contracts for work to be performed. Bids for work
1708	to be performed shall also be considered official records and
1709	shall be maintained for a period of 1 year.
1710	10.  Ballots, sign-in sheets, voting proxies, and all other
1711	papers relating to voting by shareholders unit owners, which
1712	shall be maintained for a period of 1 year after the date of the
1713	election, vote, or meeting to which the document relates.
1714	11.  All rental records where the association is acting as
1715	agent for the rental of units.
1716	12.  A copy of the current question and answer sheet as
1717	described in s. 719.504.
1718	13.  All other records of the association not specifically
1719	included in the foregoing which are related to the operation of
1720	the association.
1721	(b)  The official records of the association shall be
1722	maintained within the state for at least 7 years. The records of
1723	the association shall be made available to a shareholder unit
1724	owner within 5 working days after receipt of written request by
1725	the board or its designee. This paragraph may be complied with
1726	by having a copy of the official records available for
1727	inspection or copying on the cooperative property.
1728	(c)  The official records of the association shall be open
1729	to inspection by any association member or the authorized
1730	representative of such member at all reasonable times. Failure
1731	to permit inspection of the association records as provided
1732	herein entitles any person prevailing in an enforcement action
1733	to recover reasonable attorney's fees from the person in control
1734	of the records who, directly or indirectly, knowingly denies
1735	access to the records for inspection. The right to inspect the
1736	records includes the right to make or obtain copies, at the
1737	reasonable expense, if any, of the association member. The
1738	association may adopt reasonable rules regarding the frequency,
1739	time, location, notice, and manner of record inspections and
1740	copying. The failure of an association to provide the records
1741	within 10 working days after receipt of a written request
1742	creates a rebuttable presumption that the association willfully
1743	failed to comply with this paragraph. A shareholder unit owner
1744	who is denied access to official records is entitled to the
1745	actual damages or minimum damages for the association's willful
1746	failure to comply with this paragraph. The minimum damages shall
1747	be $50 per calendar day up to 10 days, the calculation to begin
1748	on the 11th day after receipt of the written request. Any person
1749	who knowingly or intentionally defaces or destroys records that
1750	are required by this chapter, or knowingly or intentionally
1751	fails to create or maintain records that are required by this
1752	chapter, is personally subject to a civil penalty pursuant to s.
1753	718.501(1)(d). The association shall maintain an adequate number
1754	of copies of the declaration, articles of incorporation, bylaws,
1755	and rules, and all amendments to each of the foregoing, as well
1756	as the question and answer sheet provided for in s. 719.504, on
1757	the cooperative property to ensure their availability to
1758	shareholders unit owners and prospective purchasers, and may
1759	charge its actual costs for preparing and furnishing these
1760	documents to those requesting the same. Notwithstanding the
1761	provisions of this paragraph, the following records shall not be
1762	accessible to shareholders unit owners:
1763	1.  A record that was prepared by an association attorney
1764	or prepared at the attorney's express direction; that reflects a
1765	mental impression, conclusion, litigation strategy, or legal
1766	theory of the attorney or the association; or that was prepared
1767	exclusively for civil or criminal litigation or for adversarial
1768	administrative proceedings or in anticipation of imminent civil
1769	or criminal litigation or imminent adversarial administrative
1770	proceedings, until the conclusion of the litigation or
1771	adversarial administrative proceedings.
1772	2.  Information obtained by an association in connection
1773	with the approval of the lease, sale, or other transfer of a
1774	unit.
1775	3.  Medical records of shareholders unit owners.
1776	4.  Social security numbers, driver's license numbers,
1777	credit card numbers, and other personal identifying information
1778	of any person.
1779	(d)  The association or its authorized agent shall not be
1780	required to provide a prospective purchaser or lienholder with
1781	information about the cooperative or association other than the
1782	information or documents required by this chapter to be made
1783	available or disclosed. The association or its authorized agent
1784	shall be entitled to charge a reasonable fee to the prospective
1785	purchaser, lienholder, or the current shareholder unit owner for
1786	its time in providing good faith responses to requests for
1787	information by or on behalf of a prospective purchaser or
1788	lienholder, other than that required by law, provided that such
1789	fee shall not exceed $150 plus the reasonable cost of
1790	photocopying and any attorney's fees incurred by the association
1791	in connection with the association's response. An association
1792	and its authorized agent are not liable for providing such
1793	information in good faith pursuant to a written request if the
1794	person providing the information includes a written statement in
1795	substantially the following form: "The responses herein are made
1796	in good faith and to the best of my ability as to their
1797	accuracy."
1798	(3)  INSURANCE.--In order to protect the safety, health,
1799	and welfare of the people of the state and to ensure consistency
1800	in the provision of insurance coverage to cooperatives and their
1801	shareholders, this subsection applies to every residential
1802	cooperative in the state, regardless of the date of its
1803	cooperative documents. It is the intent of the Legislature to
1804	encourage lower or stable insurance premiums for associations
1805	described in this subsection.
1806	(a)  Adequate property insurance, regardless of any
1807	requirement in the cooperative documents for coverage by the
1808	association for full insurable value, replacement cost, or
1809	similar coverage, shall be based upon the replacement cost of
1810	the property to be insured as determined by an independent
1811	insurance appraisal or update of a prior appraisal. The full
1812	insurable value shall be determined at least once every 36
1813	months.
1814	1.  An association or group of associations may provide
1815	adequate property insurance through a self-insurance fund that
1816	complies with the requirements of ss. 624.460-624.488.
1817	2.  The association may also provide adequate property
1818	insurance coverage for a group of no fewer than three
1819	communities created and operating under this chapter, chapter
1820	718, chapter 720, or chapter 721 by obtaining and maintaining
1821	for such communities insurance coverage sufficient to cover an
1822	amount equal to the probable maximum loss for the communities
1823	for a 250-year windstorm event. Such probable maximum loss must
1824	be determined through the use of a competent model that has been
1825	accepted by the Florida Commission on Hurricane Loss Projection
1826	Methodology. No policy or program providing such coverage shall
1827	be issued or renewed after July 1, 2009, unless it has been
1828	reviewed and approved by the Office of Insurance Regulation. The
1829	review and approval shall include approval of the policy and
1830	related forms pursuant to ss. 627.410 and 627.411, approval of
1831	the rates pursuant to s. 627.062, a determination that the loss
1832	model approved by the commission was accurately and
1833	appropriately applied to the insured structures to determine the
1834	250-year probable maximum loss, and a determination that
1835	complete and accurate disclosure of all material provisions is
1836	provided to cooperative shareholders prior to execution of the
1837	agreement by a cooperative association.
1838	3.  When determining the adequate amount of property
1839	insurance coverage, the association may consider deductibles as
1840	determined by this subsection.
1841	(b)  If an association is a developer-controlled
1842	association, the association shall exercise its best efforts to
1843	obtain and maintain insurance as described in paragraph (a).
1844	Failure to obtain and maintain adequate property insurance
1845	during any period of developer control constitutes a breach of
1846	fiduciary responsibility by the developer-appointed members of
1847	the board of directors of the association, unless the members
1848	can show that despite such failure they have made their best
1849	efforts to maintain the required coverage.
1850	(c)  Policies may include deductibles as determined by the
1851	board.
1852	1.  The deductibles shall be consistent with industry
1853	standards and prevailing practice for communities of similar
1854	size and age, and having similar construction and facilities in
1855	the locale where the cooperative property is situated.
1856	2.  The deductibles may be based upon available funds,
1857	including reserve accounts, or predetermined assessment
1858	authority at the time the insurance is obtained.
1859	3.  The board shall establish the amount of deductibles
1860	based upon the level of available funds and predetermined
1861	assessment authority at a meeting of the board. Such meeting
1862	shall be open to all shareholders in the manner set forth in s.
1863	719.106(1)(e). The notice of such meeting must state the
1864	proposed deductible and the available funds and the assessment
1865	authority relied upon by the board and estimate any potential
1866	assessment amount against each unit, if any. The meeting
1867	described in this subparagraph may be held in conjunction with a
1868	meeting to consider the proposed budget or an amendment thereto.
1869	(d)  An association controlled by shareholders operating as
1870	a residential cooperative shall use its best efforts to obtain
1871	and maintain adequate insurance to protect the association, the
1872	association property, the common elements, and the cooperative
1873	property that is required to be insured by the association
1874	pursuant to this subsection.
1875	(e)  An association may also obtain and maintain liability
1876	insurance for directors and officers, insurance for the benefit
1877	of association employees, and flood insurance for common
1878	elements, association property, and units.
1879	(f)  Every property insurance policy issued or renewed on
1880	or after July 1, 2009, for the purpose of protecting the
1881	cooperative shall provide primary coverage for:
1882	1.  All portions of the condominium property as originally
1883	installed or replacement of like kind and quality, in accordance
1884	with the original plans and specifications.
1885	2.  All alterations or additions made to the cooperative
1886	property or association property pursuant to s. 719.113(2).
1887
1888	The coverage shall exclude all personal property within the
1889	unit, and floor, wall, and ceiling coverings, electrical
1890	fixtures, appliances, water heaters, water filters, built-in
1891	cabinets and countertops, air-conditioning and heating equipment
1892	that serves a single unit, and window treatments, including
1893	curtains, drapes, blinds, hardware, and similar window treatment
1894	components, or replacements of any of the foregoing. Such
1895	property and insurance therefore shall be the responsibility of
1896	the shareholder.
1897	(g)  A cooperative shareholders policy issued after July 1,
1898	2009, shall conform to the requirements of s. 627.714.
1899	1.  All reconstruction work after a casualty loss shall be
1900	undertaken by the association except as otherwise authorized in
1901	this section. A shareholder may undertake reconstruction work on
1902	portions of the unit with the prior written consent of the board
1903	of directors. However, such work may be conditioned upon the
1904	approval of the repair methods, the qualifications of the
1905	proposed contractor, or the contract that is used for that
1906	purpose. A shareholder shall obtain all required governmental
1907	permits and approvals prior to commencing reconstruction.
1908	2.  Shareholders are responsible for the cost of
1909	reconstruction of any portions of the cooperative property for
1910	which the association does not carry property insurance, and any
1911	such reconstruction work undertaken by the association shall be
1912	chargeable to the shareholder and enforceable as an assessment
1913	pursuant to s. 719.108.
1914	(h)  The association shall maintain insurance or fidelity
1915	bonding of all persons who control or disburse funds of the
1916	association. The insurance policy or fidelity bond must cover
1917	the maximum funds that will be in the custody of the association
1918	or its management agent at any one time. As used in this
1919	paragraph, the term "persons who control or disburse funds of
1920	the association" includes, but is not limited to, those
1921	individuals authorized to sign checks on behalf of the
1922	association, and the president, secretary, and treasurer of the
1923	association. The association shall bear the cost of any such
1924	bonding.
1925	(i)  The association may amend the cooperative documents
1926	without regard to any requirement for approval by mortgagees of
1927	amendments affecting insurance requirements for the purpose of
1928	conforming the cooperative documents to the coverage
1929	requirements of this subsection.
1930	(j)  Any portion of the cooperative property required to be
1931	insured by the association against casualty loss pursuant to
1932	paragraph (f) which is damaged by casualty shall be
1933	reconstructed, repaired, or replaced as necessary by the
1934	association as a common expense. All property insurance
1935	deductibles, uninsured losses, and other damages in excess of
1936	property insurance coverage under the property insurance
1937	policies maintained by the association are a common expense of
1938	the cooperative, except that:
1939	1.  A shareholder is responsible for the costs of repair or
1940	replacement of any portion of the cooperative property not paid
1941	by insurance proceeds, if such damage is caused by intentional
1942	conduct, negligence, or failure to comply with the terms of the
1943	declaration or the rules of the association by a shareholder,
1944	the members of his or her family, unit occupants, tenants,
1945	guests, or invitees.
1946	2.  The provisions of subparagraph 1. regarding the
1947	financial responsibility of a shareholder for the costs of
1948	repairing or replacing other portions of the cooperative
1949	property also apply to the costs of repair or replacement of
1950	personal property of other shareholders or the association, as
1951	well as other property, whether real or personal, which the
1952	shareholders are required to insure under paragraph (g).
1953	3.  To the extent the cost of repair or reconstruction for
1954	which the shareholder is responsible under this paragraph is
1955	reimbursed to the association by insurance proceeds, and, to the
1956	extent the association has collected the cost of such repair or
1957	reconstruction from the shareholder, the association shall
1958	reimburse the shareholder.
1959	4.  The association is not obligated to pay for repair or
1960	reconstruction or repairs of casualty losses as a common expense
1961	if the casualty losses were known or should have been known to a
1962	shareholder and were not reported to the association until after
1963	the insurance claim of the association for that casualty was
1964	settled or resolved with finality, or denied on the basis that
1965	it was untimely filed.
1966	(k)  An association may, upon the approval of a majority of
1967	the total voting interests in the association, opt out of the
1968	provisions of paragraph (j) for the allocation of repair or
1969	reconstruction expenses and allocate repair or reconstruction
1970	expenses in the manner provided in the cooperative documents
1971	originally recorded or as amended. Such vote may be approved by
1972	the voting interests of the association without regard to any
1973	mortgagee consent requirements.
1974	(l)  Any association or condominium voting to opt out of
1975	the guidelines for repair or reconstruction expenses as
1976	described in paragraph (j) must record a notice setting forth
1977	the date of the opt-out vote and the page of the official
1978	records book on which the cooperative documents are recorded.
1979	The decision to opt out is effective upon the date of recording
1980	of the notice in the public records by the association. An
1981	association that has voted to opt out of paragraph (j) may
1982	reverse that decision by the same vote required in paragraph
1983	(k), and notice thereof shall be recorded in the official
1984	records.
1985	(m)  The association is not obligated to pay for any
1986	reconstruction or repair expenses due to casualty loss to any
1987	improvements installed by a current or former owner of the unit
1988	or by the developer if the improvement benefits only the unit
1989	for which it was installed and is not part of the standard
1990	improvements installed by the developer on all units as part of
1991	original construction, whether or not such improvement is
1992	located within the unit. This paragraph does not relieve any
1993	party of its obligations regarding recovery due under any
1994	insurance implemented specifically for any such improvements.
1995	The association shall use its best efforts to obtain and
1996	maintain adequate insurance to protect the association property.
1997	The association may also obtain and maintain liability insurance
1998	for directors and officers, insurance for the benefit of
1999	association employees, and flood insurance. A copy of each
2000	policy of insurance in effect shall be made available for
2001	inspection by unit owners at reasonable times.
2002	(a)  Windstorm insurance coverage for a group of no fewer
2003	than three communities created and operating under chapter 718,
2004	this chapter, chapter 720, or chapter 721 may be obtained and
2005	maintained for the communities if the insurance coverage is
2006	sufficient to cover an amount equal to the probable maximum loss
2007	for the communities for a 250-year windstorm event. Such
2008	probable maximum loss must be determined through the use of a
2009	competent model that has been accepted by the Florida Commission
2010	on Hurricane Loss Projection Methodology. Such insurance
2011	coverage is deemed adequate windstorm insurance for the purposes
2012	of this section.
2013	(b)  An association or group of associations may self-
2014	insure against claims against the association, the association
2015	property, and the cooperative property required to be insured by
2016	an association, upon compliance with the applicable provisions
2017	of ss. 624.460-624.488, which shall be considered adequate
2018	insurance for purposes of this section.
2019	(4)  FINANCIAL REPORTING REPORT.--Within 90 days after the
2020	end of the fiscal year, or annually on a date provided in the
2021	bylaws, the association shall prepare and complete, or contract
2022	for the preparation and completion of, a financial report for
2023	the preceding fiscal year. Within 21 days after the final
2024	financial report is completed by the association or received
2025	from the third party, but not later than 120 days after the end
2026	of the fiscal year or other date as provided in the bylaws, the
2027	association shall mail to each shareholder at the address last
2028	furnished to the association by the shareholder, or hand deliver
2029	to each shareholder, a copy of the financial report or a notice
2030	that a copy of the financial report will be mailed or hand
2031	delivered to the shareholder, without charge, upon receipt of a
2032	written request from the shareholder. The division shall adopt
2033	rules setting forth uniform accounting principles and standards
2034	to be used by all associations. The rules shall include, but not
2035	be limited to, uniform accounting principles and standards for
2036	stating the disclosure of at least a summary of the reserves,
2037	including information as to whether such reserves are being
2038	funded at a level sufficient to prevent the need for a special
2039	assessment and, if not, the amount of assessments necessary to
2040	bring the reserves up to the level necessary to avoid a special
2041	assessment. The person preparing the financial reports shall be
2042	entitled to rely on an inspection report prepared for or
2043	provided to the association to meet the fiscal and fiduciary
2044	standards of this chapter. In adopting such rules, the division
2045	shall consider the number of members and annual revenues of an
2046	association. Financial reports shall be prepared as follows:
2047	(a)  An association that meets the criteria of this
2048	paragraph shall prepare or cause to be prepared a complete set
2049	of financial statements in accordance with generally accepted
2050	accounting principles. The financial statements shall be based
2051	upon the association's total annual revenues, as follows:
2052	1.  An association with total annual revenues of $100,000
2053	or more, but less than $200,000, shall prepare compiled
2054	financial statements.
2055	2.  An association with total annual revenues of at least
2056	$200,000, but less than $400,000, shall prepare reviewed
2057	financial statements.
2058	3.  An association with total annual revenues of $400,000
2059	or more shall prepare audited financial statements.
2060	(b)1.  An association with total annual revenues of less
2061	than $100,000 shall prepare a report of cash receipts and
2062	expenditures.
2063	2.  An association which operates less than 50 units,
2064	regardless of the association's annual revenues, shall prepare a
2065	report of cash receipts and expenditures in lieu of financial
2066	statements required by paragraph (a).
2067	3.  A report of cash receipts and disbursements must
2068	disclose the amount of receipts by accounts and receipt
2069	classifications and the amount of expenses by accounts and
2070	expense classifications, including, but not limited to, the
2071	following, as applicable: costs for security, professional and
2072	management fees and expenses, taxes, costs for recreation
2073	facilities, expenses for refuse collection and utility services,
2074	expenses for lawn care, costs for building maintenance and
2075	repair, insurance costs, administration and salary expenses, and
2076	reserves accumulated and expended for capital expenditures,
2077	deferred maintenance, and any other category for which the
2078	association maintains reserves.
2079	(c)  An association may prepare or cause to be prepared,
2080	without a meeting of or approval by the shareholders:
2081	1.  Compiled, reviewed, or audited financial statements, if
2082	the association is required to prepare a report of cash receipts
2083	and expenditures;
2084	2.  Reviewed or audited financial statements, if the
2085	association is required to prepare compiled financial
2086	statements; or
2087	3.  Audited financial statements, if the association is
2088	required to prepare reviewed financial statements.
2089	(d)  If approved by a majority of the voting interests
2090	present at a properly called meeting of the association, an
2091	association may prepare or cause to be prepared:
2092	1.  A report of cash receipts and expenditures in lieu of a
2093	compiled, reviewed, or audited financial statement;
2094	2.  A report of cash receipts and expenditures or a
2095	compiled financial statement in lieu of a reviewed or audited
2096	financial statement; or
2097	3.  A report of cash receipts and expenditures, a compiled
2098	financial statement, or a reviewed financial statement in lieu
2099	of an audited financial statement.
2100
2101	Such meeting and approval must occur prior to the end of the
2102	fiscal year and is effective only for the fiscal year in which
2103	the vote is taken, except that the approval also may be
2104	effective for the following fiscal year. With respect to an
2105	association to which the developer has not turned over control
2106	of the association, all shareholders, including the developer,
2107	may vote on issues related to the preparation of financial
2108	reports for the first 2 fiscal years of the association's
2109	operation, beginning with the fiscal year in which the
2110	declaration is recorded. Thereafter, all shareholders except the
2111	developer may vote on such issues until control is turned over
2112	to the association by the developer. Any audit or review
2113	prepared under this section shall be paid for by the developer
2114	if done prior to turnover of control of the association. An
2115	association may not waive the financial reporting requirements
2116	of this subsection for more than 3 consecutive years.
2117	(a)  Within 60 days following the end of the fiscal or
2118	calendar year or annually on such date as is otherwise provided
2119	in the bylaws of the association, the board of administration of
2120	the association shall mail or furnish by personal delivery to
2121	each unit owner a complete financial report of actual receipts
2122	and expenditures for the previous 12 months, or a complete set
2123	of financial statements for the preceding fiscal year prepared
2124	in accordance with generally accepted accounting procedures. The
2125	report shall show the amounts of receipts by accounts and
2126	receipt classifications and shall show the amounts of expenses
2127	by accounts and expense classifications including, if
2128	applicable, but not limited to, the following:
2129	1.  Costs for security;
2130	2.  Professional and management fees and expenses;
2131	3.  Taxes;
2132	4.  Costs for recreation facilities;
2133	5.  Expenses for refuse collection and utility services;
2134	6.  Expenses for lawn care;
2135	7.  Costs for building maintenance and repair;
2136	8.  Insurance costs;
2137	9.  Administrative and salary expenses; and
2138	10.  Reserves for capital expenditures, deferred
2139	maintenance, and any other category for which the association
2140	maintains a reserve account or accounts.
2141	(b)  The division shall adopt rules that may require that
2142	the association deliver to the unit owners, in lieu of the
2143	financial report required by this section, a complete set of
2144	financial statements for the preceding fiscal year. The
2145	financial statements shall be delivered within 90 days following
2146	the end of the previous fiscal year or annually on such other
2147	date as provided in the bylaws. The rules of the division may
2148	require that the financial statements be compiled, reviewed, or
2149	audited, and the rules shall take into consideration the
2150	criteria set forth in s. 719.501(1)(j). The requirement to have
2151	the financial statements compiled, reviewed, or audited does not
2152	apply to associations if a majority of the voting interests of
2153	the association present at a duly called meeting of the
2154	association have determined for a fiscal year to waive this
2155	requirement. In an association in which turnover of control by
2156	the developer has not occurred, the developer may vote to waive
2157	the audit requirement for the first 2 years of the operation of
2158	the association, after which time waiver of an applicable audit
2159	requirement shall be by a majority of voting interests other
2160	than the developer. The meeting shall be held prior to the end
2161	of the fiscal year, and the waiver shall be effective for only
2162	one fiscal year. This subsection does not apply to a cooperative
2163	that consists of 50 or fewer units.
2164	(5)  ASSESSMENTS.--The association has the power to make
2165	and collect assessments and to lease, maintain, repair, and
2166	replace the common areas. However, the association may not
2167	charge a use fee against a shareholder the unit owner for the
2168	use of common areas unless otherwise provided for in the
2169	cooperative documents or by a majority vote of the association
2170	or unless the charges relate to expenses incurred by a
2171	shareholder an owner having exclusive use of common areas.
2172	(6)  PURCHASE OF LEASES.--The association has the power to
2173	purchase any land or recreation lease upon the approval of such
2174	voting interest as is required by the cooperative documents. If
2175	the cooperative documents make no provision for acquisition of
2176	the land or recreational lease, the vote required is that
2177	required to amend the cooperative documents to permit the
2178	acquisition.
2179	(7)  COMMINGLING.--All funds shall be maintained separately
2180	in the association's name. Reserve and operating funds of the
2181	association shall not be commingled unless combined for
2182	investment purposes. This subsection is not meant to prohibit
2183	prudent investment of association funds even if combined with
2184	operating or other reserve funds of the same association, but
2185	such funds must be accounted for separately, and the combined
2186	account balance may not, at any time, be less than the amount
2187	identified as reserve funds in the combined account. No manager
2188	or business entity required to be licensed or registered under
2189	s. 468.432, or an agent, employee, officer, or director of a
2190	cooperative association may commingle any association funds with
2191	his or her own funds or with the funds of any other cooperative
2192	association or community association as defined in s. 468.431.
2193	(8)  CORPORATE ENTITY.--
2194	(a)  The operation of the cooperative shall be by the
2195	association, which must be a Florida corporation not for profit.
2196	The shareholders shall be members of the association. The
2197	officers and directors of the association have a fiduciary
2198	relationship to the shareholders unit owners. It is the intent
2199	of the Legislature that nothing in this paragraph shall be
2200	construed as providing for or removing a requirement of a
2201	fiduciary relationship between any manager employed by the
2202	association and the shareholders. An officer, director, or
2203	manager may not solicit, offer to accept, or accept any thing or
2204	service of value for which consideration has not been provided
2205	for his or her own benefit or that of his or her immediate
2206	family, from any person providing or proposing to provide goods
2207	or services to the association. Any such officer, director, or
2208	manager who knowingly solicits, offers to accept, or accepts any
2209	thing or service of value is subject to a civil penalty pursuant
2210	to s. 719.501(1)(d). However, this paragraph does not prohibit
2211	an officer, director, or manager from accepting services or
2212	items received in connection with trade fairs or education
2213	programs.
2214	(b)  A director of the association who is present at a
2215	meeting of its board at which action on any corporate matter is
2216	taken is presumed to have assented to the action taken unless
2217	the director votes against such action or abstains from voting
2218	in respect thereto because of an asserted conflict of interest.
2219	A director of the association who abstains from voting on any
2220	action taken on any corporate matter shall be presumed to have
2221	taken no position with regard to the action. Directors may not
2222	vote by proxy or by secret ballot at board meetings, except that
2223	officers may be elected by secret ballot. A vote or abstention
2224	for each member present shall be recorded in the minutes.
2225	(c)  A shareholder unit owner does not have any authority
2226	to act for the association by reason of being a shareholder unit
2227	owner.
2228	(d)  As required by s. 617.0830, an officer, director, or
2229	agent shall discharge his or her duties in good faith, with the
2230	care an ordinarily prudent person in a like position would
2231	exercise under similar circumstances, and in a manner he or she
2232	reasonably believes to be in the interests of the association.
2233	An officer, director, or agent shall be liable for monetary
2234	damages as provided in s. 617.0834 if such officer, director, or
2235	agent breached or failed to perform his or her duties and the
2236	breach of, or failure to perform, his or her duties constitutes
2237	a violation of criminal law as provided in s. 617.0834;
2238	constitutes a transaction from which the officer or director
2239	derived an improper personal benefit, either directly or
2240	indirectly; or constitutes recklessness or an act or omission
2241	that was in bad faith, with malicious purpose, or in a manner
2242	exhibiting wanton and willful disregard of human rights, safety,
2243	or property.
2244	(9)  EASEMENTS.--Unless prohibited by the cooperative
2245	documents, the board of administration has the authority,
2246	without the joinder of any shareholder unit owner, to grant,
2247	modify, or move any easement, if the easement constitutes part
2248	of or crosses the common areas or association property. This
2249	subsection does not authorize the board of administration to
2250	modify, move, or vacate any easement created in whole or in part
2251	for the use or benefit of anyone other than the shareholders
2252	unit owners, or crossing the property of anyone other than the
2253	shareholders unit owners, without the consent or approval of
2254	those other persons having the use or benefit of the easement,
2255	as required by law or by the instrument creating the easement.
2256	(10)  POWERS AND DUTIES.--The powers and duties of the
2257	association include those set forth in this section and, except
2258	as expressly limited or restricted in this chapter, those set
2259	forth in the articles of incorporation and bylaws and chapters
2260	607 and 617, as applicable.
2261	(11)  NOTIFICATION OF DIVISION.--When the board of
2262	directors intends to dissolve or merge the cooperative
2263	association, the board shall so notify the division before
2264	taking any action to dissolve or merge the cooperative
2265	association.
2266	(12)  POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT,
2267	SUE, AND BE SUED.--The association may contract, sue, or be sued
2268	with respect to the exercise or nonexercise of its powers. For
2269	these purposes, the powers of the association include, but are
2270	not limited to, the maintenance, management, and operation of
2271	the cooperative property. After control of the association is
2272	obtained by shareholders other than the developer, the
2273	association may institute, maintain, settle, or appeal actions
2274	or hearings in its name on behalf of all shareholders concerning
2275	matters of common interest to most or all shareholders,
2276	including, but not limited to, the common areas; the roof and
2277	structural components of a building or other improvements;
2278	mechanical, electrical, and plumbing elements serving an
2279	improvement or a building; representations of the developer
2280	pertaining to any existing or proposed commonly used facilities;
2281	and protesting ad valorem taxes on commonly used facilities and
2282	units; and the association may defend actions in eminent domain
2283	or bring inverse condemnation actions. If the association has
2284	the authority to maintain a class action, the association may be
2285	joined in an action as representative of that class with
2286	reference to litigation and disputes involving the matters for
2287	which the association could bring a class action. Nothing herein
2288	limits any statutory or common-law right of any individual
2289	shareholder or class of shareholders to bring any action without
2290	participation by the association which may otherwise be
2291	available.
2292	(13)  TITLE TO PROPERTY.--
2293	(a)  The association has the power to acquire title to
2294	property or otherwise hold, convey, lease, and mortgage
2295	association property for the use and benefit of its
2296	shareholders. The power to acquire personal property shall be
2297	exercised by the board of directors. Except as otherwise
2298	provided in subsections (6) and (14), no association may
2299	acquire, convey, lease, or mortgage association real property
2300	except in the manner provided in the cooperative documents, and
2301	if the cooperative documents do not specify the procedure, then
2302	approval of 75 percent of the total voting interests shall be
2303	required.
2304	(b)  Subject to the provisions of s. 719.106(1)(m), the
2305	association, through its board, has the limited power to convey
2306	a portion of the common areas to a condemning authority for the
2307	purposes of providing utility easements, right-of-way expansion,
2308	or other public purposes, whether negotiated or as a result of
2309	eminent domain proceedings.
2310	(14)  PURCHASE OF UNITS.--The association has the power,
2311	unless prohibited by the cooperative documents, to purchase
2312	units in the cooperative and to acquire and hold, lease,
2313	mortgage, and convey the units. There shall be no limitation on
2314	the association's right to purchase a unit at a foreclosure sale
2315	resulting from the association's foreclosure of its lien for
2316	unpaid assessments, or to take title by deed in lieu of
2317	foreclosure.
2318	Section 16.  Section 719.106, Florida Statutes, is amended
2319	to read:
2320	719.106  Bylaws; cooperative ownership.--
2321	(1)  MANDATORY PROVISIONS.--The bylaws or other cooperative
2322	documents shall provide for the following, and if they do not,
2323	they shall be deemed to include the following:
2324	(a)  Administration.--
2325	1.  The form of administration of the association shall be
2326	described, indicating the titles of the officers and board of
2327	administration and specifying the powers, duties, manner of
2328	selection and removal, and compensation, if any, of officers and
2329	board members. In the absence of such a provision, the board of
2330	administration shall be composed of five members, except in the
2331	case of cooperatives having five or fewer units, in which case
2332	in not-for-profit corporations, the board shall consist of not
2333	fewer than three members. In the absence of provisions to the
2334	contrary, the board of administration shall have a president, a
2335	secretary, and a treasurer, who shall perform the duties of
2336	those offices customarily performed by officers of corporations.
2337	Unless prohibited in the bylaws, the board of administration may
2338	appoint other officers and grant them those duties it deems
2339	appropriate. Unless otherwise provided in the bylaws, the
2340	officers shall serve without compensation and at the pleasure of
2341	the board. Unless otherwise provided in the bylaws, the members
2342	of the board shall serve without compensation.
2343	2.  When a shareholder unit owner files a written inquiry
2344	by certified mail with the board of administration, the board
2345	shall respond in writing to the shareholder unit owner within 30
2346	days of receipt of the inquiry. The board's response shall
2347	either give a substantive response to the inquirer, notify the
2348	inquirer that a legal opinion has been requested, or notify the
2349	inquirer that advice has been requested from the division. If
2350	the board requests advice from the division, the board shall,
2351	within 10 days of its receipt of the advice, provide in writing
2352	a substantive response to the inquirer. If a legal opinion is
2353	requested, the board shall, within 60 days after the receipt of
2354	the inquiry, provide in writing a substantive response to the
2355	inquirer. The failure to provide a substantive response to the
2356	inquirer as provided herein precludes the board from recovering
2357	attorney's fees and costs in any subsequent litigation,
2358	administrative proceeding, or arbitration arising out of the
2359	inquiry. The association may, through its board of
2360	administration, adopt reasonable rules and regulations regarding
2361	the frequency and manner of responding to the shareholders' unit
2362	owners' inquiries, one of which may be that the association is
2363	obligated to respond to only one written inquiry per unit in any
2364	given 30-day period. In such case, any additional inquiry or
2365	inquiries must be responded to in the subsequent 30-day period,
2366	or periods, as applicable.
2367	(b)  Quorum; voting requirements; proxies.--
2368	1.  Unless otherwise provided in the bylaws, the percentage
2369	of voting interests required to constitute a quorum at a meeting
2370	of the members shall be a majority of voting interests, and
2371	decisions shall be made by owners of a majority of the voting
2372	interests. Unless otherwise provided in this chapter, or in the
2373	articles of incorporation, bylaws, or other cooperative
2374	documents, and except as provided in subparagraph (d)1.,
2375	decisions shall be made by owners of a majority of the voting
2376	interests represented at a meeting at which a quorum is present.
2377	2.  Except as specifically otherwise provided herein, after
2378	January 1, 1992, shareholders unit owners may not vote by
2379	general proxy, but may vote by limited proxies substantially
2380	conforming to a limited proxy form adopted by the division.
2381	Limited proxies and general proxies may be used to establish a
2382	quorum. Limited proxies shall be used for votes taken to waive
2383	or reduce reserves in accordance with subparagraph (j)2., for
2384	votes taken to waive the financial reporting requirements of s.
2385	719.104(4)(b), for votes taken to amend the articles of
2386	incorporation or bylaws pursuant to this section, and for any
2387	other matter for which this chapter requires or permits a vote
2388	of the shareholders unit owners. Except as provided in paragraph
2389	(d), after January 1, 1992, no proxy, limited or general, shall
2390	be used in the election of board members. General proxies may be
2391	used for other matters for which limited proxies are not
2392	required, and may also be used in voting for nonsubstantive
2393	changes to items for which a limited proxy is required and
2394	given. Notwithstanding the provisions of this section,
2395	shareholders unit owners may vote in person at shareholder unit
2396	owner meetings. Nothing contained herein shall limit the use of
2397	general proxies or require the use of limited proxies or require
2398	the use of limited proxies for any agenda item or election at
2399	any meeting of a timeshare cooperative.
2400	3.  Any proxy given shall be effective only for the
2401	specific meeting for which originally given and any lawfully
2402	adjourned meetings thereof. In no event shall any proxy be valid
2403	for a period longer than 90 days after the date of the first
2404	meeting for which it was given. Every proxy shall be revocable
2405	at any time at the pleasure of the shareholder unit owner
2406	executing it.
2407	4.  A member of the board of administration or a committee
2408	may submit in writing his or her agreement or disagreement with
2409	any action taken at a meeting that the member did not attend.
2410	This agreement or disagreement may not be used as a vote for or
2411	against the action taken and may not be used for the purposes of
2412	creating a quorum.
2413	5.  When some or all of the board or committee members meet
2414	by telephone conference, those board or committee members
2415	attending by telephone conference may be counted toward
2416	obtaining a quorum and may vote by telephone. A telephone
2417	speaker shall be utilized so that the conversation of those
2418	board or committee members attending by telephone may be heard
2419	by the board or committee members attending in person, as well
2420	as by shareholders unit owners present at a meeting.
2421	(c)  Board of administration meetings.--Meetings of the
2422	board of administration at which a quorum of the members is
2423	present shall be open to all shareholders unit owners. Any
2424	shareholder unit owner may tape record or videotape meetings of
2425	the board of administration. The right to attend such meetings
2426	includes the right to speak at such meetings with reference to
2427	all designated agenda items. The division shall adopt reasonable
2428	rules governing the tape recording and videotaping of the
2429	meeting. The association may adopt reasonable written rules
2430	governing the frequency, duration, and manner of shareholder
2431	unit owner statements. Adequate notice of all meetings shall be
2432	posted in a conspicuous place upon the cooperative property at
2433	least 48 continuous hours preceding the meeting, except in an
2434	emergency. If 20 percent of the voting interests petition the
2435	board to address an item of business, the board shall at its
2436	next regular board meeting or at a special meeting of the board,
2437	but not later than 60 days after the receipt of the petition,
2438	place the item on the agenda. Any item not included on the
2439	notice may be taken up on an emergency basis by at least a
2440	majority plus one of the members of the board. Such emergency
2441	action shall be noticed and ratified at the next regular meeting
2442	of the board. However, written notice of any meeting at which
2443	nonemergency special assessments, or at which amendment to rules
2444	regarding unit use, will be considered shall be mailed,
2445	delivered, or electronically transmitted to the shareholders
2446	unit owners and posted conspicuously on the cooperative property
2447	not less than 14 days prior to the meeting. Evidence of
2448	compliance with this 14-day notice shall be made by an affidavit
2449	executed by the person providing the notice and filed among the
2450	official records of the association. Upon notice to the
2451	shareholders unit owners, the board shall by duly adopted rule
2452	designate a specific location on the cooperative property upon
2453	which all notices of board meetings shall be posted. In lieu of
2454	or in addition to the physical posting of notice of any meeting
2455	of the board of administration on the cooperative property, the
2456	association may, by reasonable rule, adopt a procedure for
2457	conspicuously posting and repeatedly broadcasting the notice and
2458	the agenda on a closed-circuit cable television system serving
2459	the cooperative association. However, if broadcast notice is
2460	used in lieu of a notice posted physically on the cooperative
2461	property, the notice and agenda must be broadcast at least four
2462	times every broadcast hour of each day that a posted notice is
2463	otherwise required under this section. When broadcast notice is
2464	provided, the notice and agenda must be broadcast in a manner
2465	and for a sufficient continuous length of time so as to allow an
2466	average reader to observe the notice and read and comprehend the
2467	entire content of the notice and the agenda. Notice of any
2468	meeting in which regular or special assessments against
2469	shareholders unit owners are to be considered for any reason
2470	shall specifically state contain a statement that assessments
2471	will be considered and the nature, actual cost, and description
2472	of the purposes for any such assessments. Meetings of a
2473	committee to take final action on behalf of the board or to make
2474	recommendations to the board regarding the association budget
2475	are subject to the provisions of this paragraph. Meetings of a
2476	committee that does not take final action on behalf of the board
2477	or make recommendations to the board regarding the association
2478	budget are subject to the provisions of this section, unless
2479	those meetings are exempted from this section by the bylaws of
2480	the association. Notwithstanding any other law to the contrary,
2481	the requirement that board meetings and committee meetings be
2482	open to the shareholders unit owners is inapplicable to meetings
2483	between the board or a committee and the association's attorney,
2484	with respect to proposed or pending litigation, when the meeting
2485	is held for the purpose of seeking or rendering legal advice.
2486	(d)  Shareholder meetings.--There shall be an annual
2487	meeting of the shareholders held at the location provided in the
2488	association bylaws and, if the bylaws are silent as to the
2489	location, the meeting shall be held within 45 miles of the
2490	cooperative property. However, such distance requirement does
2491	not apply to an association governing a timeshare condominium.
2492	All members of the board of administration shall be elected at
2493	the first annual meeting after July 1, 2009, and annually
2494	thereafter, except that if unless the bylaws provide for
2495	staggered election terms of no more than 2 years and upon
2496	approval of a majority of the total voting interests, the
2497	association board members may serve 2-year staggered terms,
2498	starting with the first annual meeting after July 1, 2009, at
2499	which time the newly elected directors wherein staggered terms
2500	are allowed shall, by random lot, determine which directors
2501	shall serve a full 2-year term and which directors shall only
2502	serve a 1-year term in order to start the staggered terms. If no
2503	person is interested in or demonstrates an intention to run for
2504	the position of a board member whose term has expired, such
2505	board member whose term has expired shall be automatically
2506	reappointed to the board of administration and need not stand
2507	for reelection or for their election at another meeting. Any
2508	shareholder unit owner desiring to be a candidate for board
2509	membership shall comply with subparagraph 1. The bylaws shall
2510	provide the method for calling meetings, including annual
2511	meetings. Written notice, which notice shall incorporate an
2512	identification of agenda items, shall be given to each
2513	shareholder unit owner at least 14 days prior to the annual
2514	meeting and shall be posted in a conspicuous place on the
2515	cooperative property at least 14 continuous days preceding the
2516	annual meeting. Upon notice to the shareholders unit owners, the
2517	board shall by duly adopted rule designate a specific location
2518	on the cooperative property upon which all notice of shareholder
2519	unit owner meetings shall be posted. In lieu of or in addition
2520	to the physical posting of notice of any meeting of the
2521	shareholders on the cooperative property, the association may,
2522	by reasonable rule, adopt a procedure for conspicuously posting
2523	and repeatedly broadcasting the notice and the agenda on a
2524	closed-circuit cable television system serving the cooperative
2525	association. However, if broadcast notice is used in lieu of a
2526	notice posted physically on the cooperative property, the notice
2527	and agenda must be broadcast at least four times every broadcast
2528	hour of each day that a posted notice is otherwise required
2529	under this section. When broadcast notice is provided, the
2530	notice and agenda must be broadcast in a manner and for a
2531	sufficient continuous length of time so as to allow an average
2532	reader to observe the notice and read and comprehend the entire
2533	content of the notice and the agenda. Unless a shareholder unit
2534	owner waives in writing the right to receive notice of the
2535	annual meeting, the notice of the annual meeting shall be sent
2536	by mail, hand delivered, or electronically transmitted to each
2537	shareholder unit owner. An officer of the association shall
2538	provide an affidavit or United States Postal Service certificate
2539	of mailing, to be included in the official records of the
2540	association, affirming that notices of the association meeting
2541	were mailed, hand delivered, or electronically transmitted, in
2542	accordance with this provision, to each shareholder unit owner
2543	at the address last furnished to the association.
2544	1.  After January 1, 1992, the board of administration
2545	shall be elected by written ballot or voting machine. Proxies
2546	shall in no event be used in electing the board of
2547	administration, either in general elections or elections to fill
2548	vacancies caused by recall, resignation, or otherwise unless
2549	otherwise provided in this chapter. Not less than 60 days before
2550	a scheduled election, the association shall mail, deliver, or
2551	transmit, whether by separate association mailing, delivery, or
2552	electronic transmission or included in another association
2553	mailing, delivery, or electronic transmission, including
2554	regularly published newsletters, to each shareholder unit owner
2555	entitled to vote, a first notice of the date of the election.
2556	Any shareholder unit owner or other eligible person desiring to
2557	be a candidate for the board of administration shall give
2558	written notice to the association not less than 40 days before a
2559	scheduled election. Together with the written notice and agenda
2560	as set forth in this section, the association shall mail,
2561	deliver, or electronically transmit a second notice of election
2562	to all shareholders unit owners entitled to vote therein,
2563	together with a ballot which shall list all candidates. Upon
2564	request of a candidate, the association shall include an
2565	information sheet, no larger than 81/2 inches by 11 inches,
2566	which must be furnished by the candidate not less than 35 days
2567	prior to the election, to be included with the mailing,
2568	delivery, or electronic transmission of the ballot, with the
2569	costs of mailing, delivery, or transmission and copying to be
2570	borne by the association. The association has no liability for
2571	the contents of the information sheets provided by the
2572	candidates. In order to reduce costs, the association may print
2573	or duplicate the information sheets on both sides of the paper.
2574	The division shall by rule establish voting procedures
2575	consistent with the provisions contained herein, including rules
2576	establishing procedures for giving notice by electronic
2577	transmission and rules providing for the secrecy of ballots.
2578	Elections shall be decided by a plurality of those ballots cast.
2579	There shall be no quorum requirement. However, at least 20
2580	percent of the eligible voters must cast a ballot in order to
2581	have a valid election of members of the board of administration.
2582	No shareholder unit owner shall permit any other person to vote
2583	his or her ballot, and any such ballots improperly cast shall be
2584	deemed invalid. A shareholder unit owner who needs assistance in
2585	casting the ballot for the reasons stated in s. 101.051 may
2586	obtain assistance in casting the ballot. Any shareholder unit
2587	owner violating this provision may be fined by the association
2588	in accordance with s. 719.303. The regular election shall occur
2589	on the date of the annual meeting. The provisions of this
2590	subparagraph shall not apply to timeshare cooperatives.
2591	Notwithstanding the provisions of this subparagraph, an election
2592	and balloting are not required unless more candidates file a
2593	notice of intent to run or are nominated than vacancies exist on
2594	the board.
2595	2.  Any approval by shareholders unit owners called for by
2596	this chapter, or the applicable cooperative documents, shall be
2597	made at a duly noticed meeting of shareholders unit owners and
2598	shall be subject to all requirements of this chapter or the
2599	applicable cooperative documents relating to shareholder unit
2600	owner decisionmaking, except that shareholders unit owners may
2601	take action by written agreement, without meetings, on matters
2602	for which action by written agreement without meetings is
2603	expressly allowed by the applicable cooperative documents or any
2604	Florida statute which provides for the shareholder unit owner
2605	action.
2606	3.  Shareholders Unit owners may waive notice of specific
2607	meetings if allowed by the applicable cooperative documents or
2608	any Florida statute. If authorized by the bylaws, notice of
2609	meetings of the board of administration, shareholder meetings,
2610	except shareholder meetings called to recall board members under
2611	paragraph (f), and committee meetings may be given by electronic
2612	transmission to shareholders unit owners who consent to receive
2613	notice by electronic transmission.
2614	4.  Shareholders Unit owners shall have the right to
2615	participate in meetings of shareholders unit owners with
2616	reference to all designated agenda items. However, the
2617	association may adopt reasonable rules governing the frequency,
2618	duration, and manner of shareholder unit owner participation.
2619	5.  Any shareholder unit owner may tape record or videotape
2620	meetings of the shareholders unit owners subject to reasonable
2621	rules adopted by the division.
2622
2623	Notwithstanding subparagraphs (b)2. and (d)1., an association of
2624	10 units or less may, by the affirmative vote of a majority of
2625	the total voting interests, provide for a different voting and
2626	election procedure in its bylaws, which vote may be by a proxy
2627	specifically delineating the different voting and election
2628	procedures. The different voting and election procedures may
2629	provide for elections to be conducted by limited or general
2630	proxy.
2631	(e)  Budget procedures.--
2632	1.  The board of administration shall mail, hand deliver,
2633	or electronically transmit to each shareholder unit owner at the
2634	address last furnished to the association, a meeting notice and
2635	copies of the proposed annual budget of common expenses to the
2636	shareholders unit owners not less than 14 days prior to the
2637	meeting at which the budget will be considered. Evidence of
2638	compliance with this 14-day notice must be made by an affidavit
2639	executed by an officer of the association or the manager or
2640	other person providing notice of the meeting and filed among the
2641	official records of the association. The meeting must be open to
2642	the shareholders unit owners.
2643	2.  If an adopted budget requires assessment against the
2644	shareholders unit owners in any fiscal or calendar year which
2645	exceeds 115 percent of the assessments for the preceding year,
2646	the board upon written application of 10 percent of the voting
2647	interests to the board, shall call a special meeting of the
2648	shareholders unit owners within 30 days, upon not less than 10
2649	days' written notice to each shareholder unit owner. At the
2650	special meeting, shareholders unit owners shall consider and
2651	enact a budget. Unless the bylaws require a larger vote, the
2652	adoption of the budget requires a vote of not less than a
2653	majority of all the voting interests.
2654	3.  The board of administration may, in any event, propose
2655	a budget to the shareholders unit owners at a meeting of members
2656	or by writing, and if the budget or proposed budget is approved
2657	by the shareholders unit owners at the meeting or by a majority
2658	of all voting interests in writing, the budget is adopted. If a
2659	meeting of the shareholders unit owners has been called and a
2660	quorum is not attained or a substitute budget is not adopted by
2661	the shareholders unit owners, the budget adopted by the board of
2662	directors goes into effect as scheduled.
2663	4.  In determining whether assessments exceed 115 percent
2664	of similar assessments for prior years, any authorized
2665	provisions for reasonable reserves for repair or replacement of
2666	cooperative property, anticipated expenses by the association
2667	which are not anticipated to be incurred on a regular or annual
2668	basis, or assessments for betterments to the cooperative
2669	property must be excluded from computation. However, as long as
2670	the developer is in control of the board of administration, the
2671	board may not impose an assessment for any year greater than 115
2672	percent of the prior fiscal or calendar year's assessment
2673	without approval of a majority of all voting interests.
2674	(f)  Recall of board members.--Subject to the provisions of
2675	s. 719.301, any member of the board of administration may be
2676	recalled and removed from office with or without cause by the
2677	vote or agreement in writing by a majority of all the voting
2678	interests. A special meeting of the voting interests to recall
2679	any member of the board of administration may be called by 10
2680	percent of the shareholders unit owners giving notice of the
2681	meeting as required for a meeting of shareholders unit owners,
2682	and the notice shall state the purpose of the meeting.
2683	Electronic transmission may not be used as a method of giving
2684	notice of a meeting called in whole or in part for this purpose.
2685	1.  If the recall is approved by a majority of all voting
2686	interests by a vote at a meeting, the recall shall be effective
2687	as provided herein. The board shall duly notice and hold a board
2688	meeting within 5 full business days of the adjournment of the
2689	shareholder unit owner meeting to recall one or more board
2690	members. At the meeting, the board shall either certify the
2691	recall, in which case such member or members shall be recalled
2692	effective immediately and shall turn over to the board within 5
2693	full business days any and all records and property of the
2694	association in their possession, or shall proceed as set forth
2695	in subparagraph 3.
2696	2.  If the proposed recall is by an agreement in writing by
2697	a majority of all voting interests, the agreement in writing or
2698	a copy thereof shall be served on the association by certified
2699	mail or by personal service in the manner authorized by chapter
2700	48 and the Florida Rules of Civil Procedure. The board of
2701	administration shall duly notice and hold a meeting of the board
2702	within 5 full business days after receipt of the agreement in
2703	writing. At the meeting, the board shall either certify the
2704	written agreement to recall members of the board, in which case
2705	such members shall be recalled effective immediately and shall
2706	turn over to the board, within 5 full business days, any and all
2707	records and property of the association in their possession, or
2708	proceed as described in subparagraph 3.
2709	3.  If the board determines not to certify the written
2710	agreement to recall members of the board, or does not certify
2711	the recall by a vote at a meeting, the board shall, within 5
2712	full business days after the board meeting, file with the
2713	division a petition for binding arbitration pursuant to the
2714	procedures of s. 719.1255. For purposes of this paragraph, the
2715	shareholders unit owners who voted at the meeting or who
2716	executed the agreement in writing shall constitute one party
2717	under the petition for arbitration. If the arbitrator certifies
2718	the recall as to any member of the board, the recall shall be
2719	effective upon mailing of the final order of arbitration to the
2720	association. If the association fails to comply with the order
2721	of the arbitrator, the division may take action pursuant to s.
2722	719.501. Any member so recalled shall deliver to the board any
2723	and all records and property of the association in the member's
2724	possession within 5 full business days of the effective date of
2725	the recall.
2726	4.  If the board fails to duly notice and hold a board
2727	meeting within 5 full business days of service of an agreement
2728	in writing or within 5 full business days of the adjournment of
2729	the shareholder unit owner recall meeting, the recall shall be
2730	deemed effective and the board members so recalled shall
2731	immediately turn over to the board any and all records and
2732	property of the association.
2733	5.  If a vacancy occurs on the board as a result of a
2734	recall or removal and less than a majority of the board members
2735	are removed, the vacancy may be filled by the affirmative vote
2736	of a majority of the remaining directors, notwithstanding any
2737	provision to the contrary contained in this chapter. If
2738	vacancies occur on the board as a result of a recall and a
2739	majority or more of the board members are removed, the vacancies
2740	shall be filled in accordance with procedural rules to be
2741	adopted by the division, which rules need not be consistent with
2742	this chapter. The rules must provide procedures governing the
2743	conduct of the recall election as well as the operation of the
2744	association during the period after a recall but prior to the
2745	recall election.
2746	(g)  Common expenses.--The manner of collecting from the
2747	shareholders unit owners their shares of the common expenses
2748	shall be stated. Assessments shall be made against shareholders
2749	unit owners not less frequently than quarterly, in an amount no
2750	less than is required to provide funds in advance for payment of
2751	all of the anticipated current operating expense and for all of
2752	the unpaid operating expense previously incurred. Nothing in
2753	this paragraph shall preclude the right of an association to
2754	accelerate assessments of a shareholder an owner delinquent in
2755	payment of common expenses in actions taken pursuant to s.
2756	719.104(5)(4).
2757	(h)  Amendment of bylaws.--
2758	1.  The method by which the bylaws may be amended
2759	consistent with the provisions of this chapter shall be stated.
2760	If the bylaws fail to provide a method of amendment, the bylaws
2761	may be amended if the amendment is approved by shareholders
2762	owners of not less than two-thirds of the voting interests.
2763	2.  No bylaw shall be revised or amended by reference to
2764	its title or number only. Proposals to amend existing bylaws
2765	shall contain the full text of the bylaws to be amended; new
2766	words shall be inserted in the text underlined, and words to be
2767	deleted shall be lined through with hyphens. However, if the
2768	proposed change is so extensive that this procedure would
2769	hinder, rather than assist, the understanding of the proposed
2770	amendment, it is not necessary to use underlining and hyphens as
2771	indicators of words added or deleted, but, instead, a notation
2772	must be inserted immediately preceding the proposed amendment in
2773	substantially the following language: "Substantial rewording of
2774	bylaw. See bylaw _____ for present text."
2775	3.  Nonmaterial errors or omissions in the bylaw process
2776	shall not invalidate an otherwise properly promulgated
2777	amendment.
2778	4.  If the bylaws provide for amendment by the board of
2779	directors, no bylaw may be amended unless it is heard and
2780	noticed at two consecutive meetings of the board of directors
2781	that are at least 1 week apart. If the bylaws provide for
2782	amendment of the bylaws by a vote of the shareholders, the
2783	meeting at which the vote is to be taken must be conducted
2784	between the hours of 6 p.m. and 10 p.m. local time.
2785	(i)  Transfer fees.--No charge may be made by the
2786	association or any body thereof in connection with the sale,
2787	mortgage, lease, sublease, or other transfer of a unit unless
2788	the association is required to approve such transfer and a fee
2789	for such approval is provided for in the cooperative documents.
2790	Any such fee may be preset, but in no event shall it exceed $100
2791	per applicant other than husband/wife or parent/dependent child,
2792	which are considered one applicant. However, if the lease or
2793	sublease is a renewal of a lease or sublease with the same
2794	lessee or sublessee, no charge shall be made. Nothing in this
2795	paragraph shall be construed to prohibit an association from
2796	requiring as a condition to permitting the letting or renting of
2797	a unit, when the association has such authority in the
2798	documents, the depositing into an escrow account maintained by
2799	the association a security deposit in an amount not to exceed
2800	the equivalent of 1 month's rent. The security deposit shall
2801	protect against damages to the common areas or cooperative
2802	property. Within 15 days after a tenant vacates the premises,
2803	the association shall refund the full security deposit or give
2804	written notice to the tenant of any claim made against the
2805	security. Disputes under this paragraph shall be handled in the
2806	same fashion as disputes concerning security deposits under s.
2807	83.49.
2808	(j)  Annual budget.--
2809	1.  The proposed annual budget of estimated revenues and
2810	common expenses shall be detailed and shall show the amounts
2811	budgeted by accounts and expense classifications, including, if
2812	applicable, but not limited to, those expenses listed in s.
2813	719.504(20).
2814	2.  In addition to annual operating expenses, the budget
2815	shall include reserve accounts for capital expenditures and
2816	deferred maintenance. These accounts shall include, but not be
2817	limited to, roof replacement, building painting, and pavement
2818	resurfacing, regardless of the amount of deferred maintenance
2819	expense or replacement cost, and for any other items for which
2820	the deferred maintenance expense or replacement cost exceeds
2821	$10,000. The amount to be reserved shall be computed by means of
2822	a formula which is based upon estimated remaining useful life
2823	and estimated replacement cost or deferred maintenance expense
2824	of each reserve item. The association may adjust replacement
2825	reserve assessments annually to take into account any changes in
2826	estimates or extension of the useful life of a reserve item
2827	caused by deferred maintenance. This paragraph shall not apply
2828	to any budget in which the members of an association have, at a
2829	duly called meeting of the association, determined for a fiscal
2830	year to provide no reserves or reserves less adequate than
2831	required by this subsection. However, prior to turnover of
2832	control of an association by a developer to shareholders unit
2833	owners other than a developer pursuant to s. 719.301, the
2834	developer may vote to waive the reserves or reduce the funding
2835	of reserves for the first 2 years of the operation of the
2836	association after which time reserves may only be waived or
2837	reduced upon the vote of a majority of all nondeveloper voting
2838	interests voting in person or by limited proxy at a duly called
2839	meeting of the association. If a meeting of the shareholders
2840	unit owners has been called to determine to provide no reserves,
2841	or reserves less adequate than required, and such result is not
2842	attained or a quorum is not attained, the reserves as included
2843	in the budget shall go into effect.
2844	3.  Reserve funds and any interest accruing thereon shall
2845	remain in the reserve account or accounts, and shall be used
2846	only for authorized reserve expenditures unless their use for
2847	other purposes is approved in advance by a vote of the majority
2848	of the voting interests, voting in person or by limited proxy at
2849	a duly called meeting of the association. Prior to turnover of
2850	control of an association by a developer to shareholders unit
2851	owners other than the developer under s. 719.301, the developer
2852	may not vote to use reserves for purposes other than that for
2853	which they were intended without the approval of a majority of
2854	all nondeveloper voting interests, voting in person or by
2855	limited proxy at a duly called meeting of the association.
2856	4.  The only voting interests which are eligible to vote on
2857	questions that involve waiving or reducing the funding of
2858	reserves, or using existing reserve funds for purposes other
2859	than purposes for which the reserves were intended, are the
2860	voting interests of the units subject to assessment to fund the
2861	reserves in question. Proxy questions relating to waiving or
2862	reducing the funding of reserves or using existing reserve funds
2863	for purposes other than purposes for which the reserves were
2864	intended shall contain the following statement in capitalized,
2865	bold letters in a font size larger than any other used on the
2866	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
2867	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
2868	RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED
2869	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
2870	(k)  Insurance or fidelity bonds.--The association shall
2871	obtain and maintain adequate insurance or fidelity bonding of
2872	all persons who control or disburse funds of the association.
2873	The insurance policy or fidelity bond must cover the maximum
2874	funds that will be in the custody of the association or its
2875	management agent at any one time. As used in this paragraph, the
2876	term "persons who control or disburse funds of the association"
2877	includes, but is not limited to, those individuals authorized to
2878	sign checks, and the president, secretary, and treasurer of the
2879	association. The association shall bear the cost of bonding and
2880	insurance.
2881	(l)  Arbitration.--There shall be a provision for mandatory
2882	nonbinding arbitration of internal disputes arising from the
2883	operation of the cooperative in accordance with s. 719.1255.
2884	(m)  Common areas; limited power to convey.--
2885	1.  The bylaws shall include a provision granting the
2886	association a limited power to convey a portion of the common
2887	areas to a condemning authority for the purpose of providing
2888	utility easements, right-of-way expansion, or other public
2889	purposes, whether negotiated or as a result of eminent domain
2890	proceedings.
2891	2.  In any case in which the bylaws are silent as to the
2892	association's power to convey common areas as described in
2893	subparagraph 1., the bylaws shall be deemed to include the
2894	provision described in subparagraph 1.
2895	(n)  Director or officer delinquencies.--A director or
2896	officer more than 90 days delinquent in the payment of regular
2897	assessments shall be deemed to have abandoned the office,
2898	creating a vacancy in the office to be filled according to law.
2899	(o)  Director or officer offenses.--A director or officer
2900	charged by information or indictment with a felony theft or
2901	embezzlement offense involving the association's funds or
2902	property shall be removed from office, creating a vacancy in the
2903	office to be filled according to law. While such director or
2904	officer has such criminal charge pending in the state or federal
2905	court system, he or she may not be appointed or elected to a
2906	position as a director or officer. However, should the charges
2907	be resolved without a finding of guilt, the director or officer
2908	shall be reinstated for the remainder of his or her term of
2909	office, if any.
2910	(p)  Qualifications of directors.-- In addition to any
2911	other requirement for office in statute or in the governing
2912	documents of the association, a person running for or seeking
2913	appointment to the board must meet the following qualifications:
2914	1.  In a cooperative association of 10 or more units, only
2915	one individual coowner of a unit may serve on the board of
2916	administration.
2917	2.  No person may serve as a director of any cooperative
2918	association in the state if restricted from serving by action of
2919	the division pursuant to s. 719.501.
2920	3.  A person who has been convicted of any felony in this
2921	state or in a United States District or Territorial Court, or
2922	who has been convicted of any offense in another jurisdiction
2923	that would be considered a felony if committed in this state, is
2924	not eligible for board membership unless such felon's civil
2925	rights have been restored for a period of no less than 5 years
2926	as of the date on which such person seeks election to the board.
2927	4.  Within 30 days after being elected or appointed to the
2928	board of directors, a director shall certify in writing to the
2929	secretary of the association that he or she has read parts I and
2930	III of chapter 719; ss. 719.501, 617.0202, 617.0206, 617.0302-
2931	617.0304, 617.0501, 617.0505, 617.0801-617.0833, 617.0840-
2932	617.0843, 617.1622, and 617.2102; and the association's
2933	cooperative documents, bylaws, and current written policies.
2934	The director shall further certify that he or she will work to
2935	uphold such documents and policies to the best of his or her
2936	ability, and that he or she will faithfully discharge his or her
2937	fiduciary responsibility to the association's members. If the
2938	division finds that a director has falsely certified that he or
2939	she has read the required statutes and documents, the division
2940	shall order the director removed the board and shall order the
2941	director to reimburse the division for the cost of prosecution
2942	and hearing.
2943	5.  After turnover of the association pursuant to s.
2944	718.301(4), a director must:
2945	a.  If the unit is owned by an individual or individuals,
2946	be one of those individuals.
2947	b.  If the unit is owned by a trust, be an individual
2948	qualified pursuant to s. 617.0802.
2949	c.  If the unit is owned by an entity other than a trust,
2950	be an individual designated by the entity that owns the unit.
2951
2952	These qualifications shall operate on a continuing basis, and
2953	upon a failure of a director at any time to meet a
2954	qualification, the secretary shall certify that the director is
2955	removed from office and that a vacancy in office exists.
2956	(2)  OPTIONAL PROVISIONS.--The bylaws may provide for the
2957	following:
2958	(a)  Administrative rules.--A method of adopting and of
2959	amending administrative rules and regulations governing the
2960	details of the operation and use of the common areas.
2961	(b)  Use and maintenance restrictions.--Restrictions on,
2962	and requirements for, the use, maintenance, and appearance of
2963	the units and the use of the common areas, not inconsistent with
2964	the cooperative documents, designed to prevent unreasonable
2965	interference with the use of the units and common areas.
2966	(c)  Notice of meetings.--Provisions for giving notice by
2967	electronic transmissions in a manner authorized by law of
2968	meetings of the board of directors and committees and of annual
2969	and special meetings of the members.
2970	(d)  Other matters.--Other provisions not inconsistent with
2971	this chapter or with the cooperative documents as may be
2972	desired.
2973	Section 17.  Section 719.1064, Florida Statutes, is
2974	repealed.
2975	Section 18.  Paragraphs (b) and (c) of subsection (1) and
2976	subsection (2) of section 719.107, Florida Statutes, are
2977	amended, and subsection (3) is added to that section, to read:
2978	719.107  Common expenses; assessment.--
2979	(1)
2980	(b)  If so provided in the bylaws, the cost of a master
2981	antenna television system or duly franchised cable television
2982	service obtained pursuant to a bulk contract shall be deemed a
2983	common expense, and if not obtained pursuant to a bulk contract,
2984	such cost shall be considered common expense if it is designated
2985	as such in a written contract between the board of
2986	administration and the company providing the master television
2987	antenna system or the cable television service. The contract
2988	shall be for a term of not less than 2 years.
2989	1.  Any contract made by the board after April 2, 1992, for
2990	a community antenna system or duly franchised cable television
2991	service may be canceled by a majority of the voting interests
2992	present at the next regular or special meeting of the
2993	association. Any member may make a motion to cancel the
2994	contract, but if no motion is made or if such motion fails to
2995	obtain the required majority at the next regular or special
2996	meeting, whichever is sooner, following the making of the
2997	contract, then such contract shall be deemed ratified for the
2998	term therein expressed.
2999	2.  Any such contract shall provide, and shall be deemed to
3000	provide if not expressly set forth, that any hearing impaired or
3001	legally blind shareholder unit owner who does not occupy the
3002	unit with a nonhearing impaired or sighted person may
3003	discontinue the service without incurring disconnect fees,
3004	penalties, or subsequent service charges, and as to such units,
3005	the shareholders owners shall not be required to pay any common
3006	expenses charge related to such service. If less than all
3007	members of an association share the expenses of cable
3008	television, the expense shall be shared equally by all
3009	participating shareholders unit owners. The association may use
3010	the provisions of s. 719.108 to enforce payment of the shares of
3011	such costs by the shareholders unit owners receiving cable
3012	television.
3013	(c)  If any unpaid share of common expenses or assessments
3014	is extinguished by foreclosure of a superior lien or by a deed
3015	in lieu of foreclosure thereof, the unpaid share of common
3016	expenses or assessments are common expenses collectible from all
3017	the shareholders unit owners in the cooperative in which the
3018	unit is located.
3019	(2)  Funds for the payment of common expenses shall be
3020	collected by assessments against shareholders unit owners in the
3021	proportions or percentages of sharing common expenses provided
3022	in the cooperative documents.
3023	(3)  The expense of installation, replacement, operation,
3024	repair, and maintenance of hurricane shutters or other hurricane
3025	protection by the board pursuant to s. 719.113(5) shall
3026	constitute a common expense as defined in this section and shall
3027	be collected as provided in this section if the association is
3028	responsible for the maintenance, repair, and replacement of the
3029	hurricane shutters or other hurricane protection pursuant to the
3030	cooperative documents. However, if the maintenance, repair, and
3031	replacement of the hurricane shutters or other hurricane
3032	protection is the responsibility of the shareholders pursuant to
3033	the cooperative documents, the cost of the installation of the
3034	hurricane shutters or other hurricane protection shall not be a
3035	common expense, but shall be charged individually to the
3036	shareholders based on the cost of installation of the hurricane
3037	shutters or other hurricane protection appurtenant to the unit.
3038	Notwithstanding the provisions of s. 719.108(8), and regardless
3039	of whether or not the cooperative documents requires the
3040	association or shareholders maintain, repair, or replace
3041	hurricane shutters or other hurricane protection, a shareholder
3042	who has previously installed hurricane shutters in accordance
3043	with s. 719.113(5), other hurricane protection, or laminated
3044	glass architecturally designed to function as hurricane
3045	protection, which hurricane shutters or other hurricane
3046	protection or laminated glass comply with the current applicable
3047	building code, shall receive a credit equal to the pro rata
3048	portion of the assessed installation cost assigned to each unit.
3049	However, such shareholder shall remain responsible for the pro
3050	rata share of expenses for hurricane shutters or other hurricane
3051	protection installed on common areas by the board pursuant to s.
3052	719.113(5), and shall remain responsible for a pro rata share of
3053	the expense of the replacement, operation, repair, and
3054	maintenance of such shutters or other hurricane protection.
3055	Section 19.  Section 719.108, Florida Statutes, is amended
3056	to read:
3057	719.108  Rents and assessments; liability; lien and
3058	priority; interest; collection; cooperative ownership.--
3059	(1)(a)  A shareholder unit owner, regardless of how title
3060	is acquired, including, without limitation, a purchaser at a
3061	judicial sale or by deed in lieu of foreclosure, shall be liable
3062	for all rents and assessments coming due while the shareholder
3063	unit owner is in exclusive possession of a unit. In a voluntary
3064	transfer, The shareholder unit owner in exclusive possession
3065	shall be jointly and severally liable with the previous
3066	shareholder unit owner for all unpaid rents and assessments
3067	against the previous shareholder unit owner for his or her share
3068	of the common expenses up to the time of the transfer, without
3069	prejudice to the rights of the shareholder unit owner in
3070	exclusive possession to recover from a the previous shareholder
3071	unit owner the amounts paid by the shareholder unit owner in
3072	exclusive possession therefor.
3073	(b)  The liability of a first mortgagee or its successor or
3074	assignees who acquire title to a unit by foreclosure or by deed
3075	in lieu of foreclosure for the unpaid assessments that became
3076	due prior to the mortgagee's acquisition of title is limited to
3077	the lesser of:
3078	1.  The unit's unpaid common expenses and regular periodic
3079	assessments which accrued or came due during the 24 months
3080	immediately preceding the acquisition of title and for which
3081	payment in full has not been received by the association; or
3082	2.  One-half of the unit's unpaid common expenses and
3083	regular periodic assessments which accrued or came due from the
3084	filing of the foreclosure action through the sale of the unit,
3085	provided that the mortgagee timely paid in full the payment
3086	required by paragraph (d) and, at the same time, remitted to the
3087	association advanced common expenses and regular periodic
3088	assessments equal to one-half of the total unpaid common
3089	expenses and regular periodic assessments that came due in that
3090	time period. Any such advance shall be taxed as a cost in the
3091	foreclosure action, and the mortgagor shall be personally liable
3092	to the mortgagee for the value of the payment made to the
3093	association plus interest at the interest rate provided for in
3094	the promissory note for advances.
3095	(c)  The person acquiring title shall pay the amount owed
3096	to the association within 30 days after transfer of title.
3097	Failure to pay the full amount when due shall entitle the
3098	association to record a claim of lien against the parcel and
3099	proceed in the same manner as provided in this section for the
3100	collection of unpaid assessments.
3101	(d)  A mortgagee who files a foreclosure case on a mortgage
3102	secured by a condominium unit shall pay to the association
3103	within 15 days after the filing of the action all of the
3104	condominium unit's then unpaid common expenses and regular
3105	periodic assessments which accrued or came due up to the date of
3106	the filing of the foreclosure action. The payment shall be taxed
3107	as a cost in the foreclosure action, and the mortgagor shall be
3108	personally liable to the mortgagee for the value of the payment
3109	made to the association plus interest at the interest rate
3110	provided for in the promissory note for advances. The court
3111	shall dismiss a foreclosure action on the association's motion
3112	to dismiss for failure to make such payment and shall award the
3113	association the costs and reasonable attorney's fees related to
3114	the motion.
3115	(e)  The provisions of this subsection are intended to
3116	clarify existing law and shall not be available in any case
3117	where the unpaid assessments sought to be recovered by the
3118	association are secured by a lien recorded prior to the
3119	recording of the mortgage. Notwithstanding the provisions of
3120	chapter 48, the association shall be a proper party to intervene
3121	in any foreclosure proceeding to seek equitable relief. For
3122	purposes of this subsection, the term "successor or assignee" as
3123	used with respect to a first mortgagee includes only a
3124	subsequent holder of the first mortgage.
3125	(2)  The liability for rents and assessments may not be
3126	avoided by waiver of the use or enjoyment of any common areas or
3127	by abandonment of the unit for which the rents and assessments
3128	are made.
3129	(3)  Rents and assessments, and installments on them, not
3130	paid when due bear interest at the rate provided in the
3131	cooperative documents from the date due until paid. This rate
3132	may not exceed the rate allowed by law, and, if no rate is
3133	provided in the cooperative documents, then interest shall
3134	accrue at 18 percent per annum. Also, if the cooperative
3135	documents or bylaws so provide, the association may charge an
3136	administrative late fee in addition to such interest, in an
3137	amount not to exceed the greater of $25 or 5 percent of each
3138	installment of the assessment for each delinquent installment
3139	that the payment is late. Any payment received by an association
3140	shall be applied first to any interest accrued by the
3141	association, then to any administrative late fee, then to any
3142	costs and reasonable attorney's fees incurred in collection, and
3143	then to the delinquent assessment. The foregoing shall be
3144	applicable notwithstanding any restrictive endorsement,
3145	designation, or instruction placed on or accompanying a payment.
3146	A late fee is not subject to chapter 687 or s. 719.303(3).
3147	(4)  If the association is authorized by the cooperative
3148	documents or bylaws to approve or disapprove a proposed lease of
3149	a unit, the grounds for disapproval may include, but are not
3150	limited to, a shareholder being delinquent in the payment of an
3151	assessment at the time approval is sought.
3152	(5)(a)(4)  The association has shall have a lien on each
3153	cooperative parcel to secure the payment of for any unpaid rents
3154	and assessments, plus interest, against the shareholder who owns
3155	unit owner of the cooperative parcel. If authorized by the
3156	cooperative documents, said lien shall also secure reasonable
3157	attorney's fees incurred by the association incident to the
3158	collection of the rents and assessments or enforcement of such
3159	lien. The lien is effective from and shall relate back to and
3160	after the recording of the cooperative documents a claim of lien
3161	in the public records in the county in which the cooperative
3162	parcel is located which states the description of the
3163	cooperative parcel, the name of the unit owner, the amount due,
3164	and the due dates.
3165	(b)  To be valid, a claim of lien must state the
3166	description of the cooperative parcel, the name of the record
3167	owner, the name and address of the association, the amount due,
3168	and the due dates. The claim of lien must be executed and
3169	acknowledged by an officer or authorized agent of the
3170	association. The lien shall expire if a claim of lien is not
3171	filed within 1 year after the date the assessment was due, and
3172	no such lien shall continue for a longer period than 1 year
3173	after the claim of lien has been recorded unless, within that
3174	time, an action to enforce the lien is commenced in a court of
3175	competent jurisdiction. The 1-year period shall automatically be
3176	extended for any length of time during which the association is
3177	prevented from filing a foreclosure action by an automatic stay
3178	resulting from a bankruptcy petition filed by the shareholder or
3179	any other person claiming an interest in the parcel. The claim
3180	of lien shall secure all unpaid assessments which are due and
3181	which may accrue subsequent to the recording of the claim of
3182	lien and prior to the entry of a certificate of title, as well
3183	as interest and all reasonable costs and attorney's fees
3184	incurred by the association incident to the collection process.
3185	Upon payment in full, the person making the payment is entitled
3186	to a satisfaction of the lien. No lien may be filed by the
3187	association against a cooperative parcel until 30 days after the
3188	date on which a notice of intent to file a lien has been served
3189	on the unit owner of the cooperative parcel by certified mail or
3190	by personal service in the manner authorized by chapter 48 and
3191	the Florida Rules of Civil Procedure.
3192	(c)  By recording a notice in substantially the following
3193	form, a shareholder or the shareholder's agent or attorney may
3194	require the association to enforce a recorded claim of lien
3195	against his or her cooperative parcel:
3196
3197	NOTICE OF CONTEST OF LIEN
3198
3199	TO:   (Name and address of association)   You are notified
3200	that the undersigned contests the claim of lien filed by you on
3201	_____,   (year)  , and recorded in Official Records Book _____
3202	at Page _____, of the public records of _____ County, Florida,
3203	and that the time within which you may file suit to enforce your
3204	lien is limited to 90 days after the date of service of this
3205	notice. Executed this _____ day of _____,   (year)  .
3206
3207	Signed:   (Shareholder or Attorney)
3208
3209	After notice of contest of lien has been recorded, the clerk of
3210	the circuit court shall mail a copy of the recorded notice to
3211	the association by certified mail, return receipt requested, at
3212	the address shown in the claim of lien or most recent amendment
3213	to the claim of lien and shall certify to the service on the
3214	face of the notice. Service is complete upon mailing. After
3215	service, the association has 90 days in which to file an action
3216	to enforce the lien; and, if the action is not filed within the
3217	90-day period, the lien is void. However, the 90-day period
3218	shall be extended for any length of time that the association is
3219	prevented from filing its action because of an automatic stay
3220	resulting from the filing of a bankruptcy petition by the
3221	shareholder or by any other person claiming an interest in the
3222	parcel.
3223	(6)(a)(5)  Liens for rents and assessments may be
3224	foreclosed by suit brought in the name of the association, in
3225	like manner as a foreclosure of a mortgage on real property. In
3226	any foreclosure, the shareholder unit owner shall pay a
3227	reasonable rental for the cooperative parcel, if so provided in
3228	the cooperative documents, and the plaintiff in the foreclosure
3229	is entitled to the appointment of a receiver to collect the
3230	rent. The association has the power, unless prohibited by the
3231	cooperative documents, to bid on the cooperative parcel at the
3232	foreclosure sale and to acquire and hold, lease, mortgage, or
3233	convey it. Suit to recover a money judgment for unpaid rents and
3234	assessments may be maintained without waiving the lien securing
3235	them.
3236	(b)  No foreclosure judgment may be entered until at least
3237	30 days after the association gives written notice to the
3238	shareholder of its intention to foreclose its lien to collect
3239	the unpaid rents and assessments. If this notice is not given at
3240	least 30 days before the foreclosure action is filed, and if the
3241	unpaid rents and assessments, including those coming due after
3242	the claim of lien is recorded, are paid before the entry of a
3243	final judgment of foreclosure, the association shall not recover
3244	attorney's fees or costs. The notice must be given by delivery
3245	of a copy of it to the shareholder or by certified or registered
3246	mail, return receipt requested, addressed to the shareholder at
3247	his or her last known address; and, upon such mailing, the
3248	notice shall be deemed to have been given, and the court shall
3249	proceed with the foreclosure action and may award attorney's
3250	fees and costs as permitted by law. The notice requirements of
3251	this paragraph are satisfied if the shareholder records a notice
3252	of contest of lien as provided in subsection (5). The notice
3253	requirements of this paragraph do not apply if an action to
3254	foreclose a mortgage on the cooperative unit is pending before
3255	any court; if the rights of the association would be affected by
3256	such foreclosure; and if actual, constructive, or substitute
3257	service of process has been made on the shareholder.
3258	(c)  If the shareholder remains in possession of the unit
3259	after a foreclosure judgment has been entered, the court, in its
3260	discretion, may require the shareholder to pay a reasonable
3261	rental for the unit. If the unit is rented or leased during the
3262	pendency of the foreclosure action, the association is entitled
3263	to the appointment of a receiver to collect the rent. The
3264	expenses of the receiver shall be paid by the party which does
3265	not prevail in the foreclosure action.
3266	(d)  The association has the power to purchase the
3267	cooperative unit at the foreclosure sale and to hold, lease,
3268	mortgage, or convey it.
3269	(7)  Within 15 days after receiving a written request
3270	therefor from a shareholder or his or her designee, or a unit
3271	mortgagee or his or her designee, the association shall provide
3272	a certificate signed by an officer or agent of the association
3273	stating all assessments and other moneys owed to the association
3274	by the shareholder with respect to the cooperative parcel.
3275	(a)  Any person other than the shareholder who relies upon
3276	such certificate shall be protected thereby.
3277	(b)  A summary proceeding pursuant to s. 51.011 may be
3278	brought to compel compliance with this subsection, and in any
3279	such action the prevailing party is entitled to recover
3280	reasonable attorney's fees.
3281	(c)  Notwithstanding any limitation on transfer fees
3282	contained in s. 719.106(1)(i), the association or its authorized
3283	agent may charge a reasonable fee for the preparation of the
3284	certificate. The amount of the fee must be included on the
3285	certificate.
3286	(d)  The authority to charge a fee for the certificate
3287	shall be established by a written resolution adopted by the
3288	board or provided by a written management, bookkeeping, or
3289	maintenance contract and is payable upon the preparation of the
3290	certificate. If the certificate is requested in conjunction with
3291	the sale or mortgage of a unit but the closing does not occur
3292	and no later than 30 days after the closing date for which the
3293	certificate was sought the preparer receives a written request,
3294	accompanied by reasonable documentation, that the sale did not
3295	occur from a payor that is not the shareholder, the fee shall be
3296	refunded to that payor within 30 days after receipt of the
3297	request. The refund is the obligation of the shareholder, and
3298	the association may collect the refund from that shareholder in
3299	the same manner as an assessment as provided in this section.
3300	(6)  Within 15 days after request by a unit owner or
3301	mortgagee, the association shall provide a certificate stating
3302	all assessments and other moneys owed to the association by the
3303	unit owner with respect to the cooperative parcel. Any person
3304	other than the unit owner who relies upon such certificate shall
3305	be protected thereby. Notwithstanding any limitation on transfer
3306	fees contained in s. 719.106(1)(i), the association or its
3307	authorized agent may charge a reasonable fee for the preparation
3308	of the certificate.
3309	(7)  The remedies provided in this section do not exclude
3310	other remedies provided by the cooperative documents and
3311	permitted by law.
3312	(8)(a)  No shareholder unit owner may be excused from the
3313	payment of his or her share of the rents or assessments of a
3314	cooperative unless all shareholders unit owners are likewise
3315	proportionately excused from payment, except as provided in
3316	subsection (6) and in the following cases:
3317	1.  If the cooperative documents so provide, a developer or
3318	other person owning cooperative units offered for sale may be
3319	excused from the payment of the share of the common expenses,
3320	assessments, and rents related to those units for a stated
3321	period of time. The period must terminate no later than the
3322	first day of the fourth calendar month following the month in
3323	which the right of exclusive possession is first granted to a
3324	shareholder unit owner. However, the developer must pay the
3325	portion of common expenses incurred during that period which
3326	exceed the amount assessed against other shareholders unit
3327	owners.
3328	2.  A developer, or other person with an ownership interest
3329	in cooperative units or having an obligation to pay common
3330	expenses, may be excused from the payment of his or her share of
3331	the common expenses which would have been assessed against those
3332	units during the period of time that he or she shall have
3333	guaranteed to each purchaser in the purchase contract or in the
3334	cooperative documents, or by agreement between the developer and
3335	a majority of the shareholders unit owners other than the
3336	developer, that the assessment for common expenses of the
3337	cooperative imposed upon the shareholders unit owners would not
3338	increase over a stated dollar amount and shall have obligated
3339	himself or herself to pay any amount of common expenses incurred
3340	during that period and not produced by the assessments at the
3341	guaranteed level receivable from other shareholders unit owners.
3342	(b)  If the purchase contract, cooperative documents, or
3343	agreement between the developer and a majority of shareholders
3344	unit owners other than the developer provides for the developer
3345	or another person to be excused from the payment of assessments
3346	pursuant to paragraph (a), no funds receivable from shareholders
3347	unit owners payable to the association or collected by the
3348	developer on behalf of the association, other than regular
3349	periodic assessments for common expenses as provided in the
3350	cooperative documents and disclosed in the estimated operating
3351	budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may
3352	be used for payment of common expenses prior to the expiration
3353	of the period during which the developer or other person is so
3354	excused. This restriction applies to funds including, but not
3355	limited to, capital contributions or startup funds collected
3356	from shareholders unit purchasers at closing.
3357	(9)  The specific purposes of any special assessment,
3358	including any contingent special assessment levied in
3359	conjunction with the purchase of an insurance policy authorized
3360	by s. 719.104(3), approved in accordance with the cooperative
3361	documents shall be set forth in a written notice of such
3362	assessment sent or delivered to each shareholder unit owner. The
3363	funds collected pursuant to a special assessment shall be used
3364	only for the specific purpose or purposes set forth in such
3365	notice or returned to the shareholders unit owners. However,
3366	upon completion of such specific purposes, any excess funds
3367	shall be considered common surplus and may, at the discretion of
3368	the board, either be returned to the shareholders unit owners or
3369	applied as a credit toward future assessments.
3370	(10)  During the pendency of any foreclosure action of a
3371	cooperative unit, if the unit is occupied by a tenant and the
3372	shareholder is delinquent in the payment of regular assessments,
3373	the association may demand that the tenant pay to the
3374	association the future regular assessments related to the
3375	cooperative unit. The demand shall be continuing in nature, and
3376	upon demand the tenant shall continue to pay the regular
3377	assessments to the association until the association releases
3378	the tenant or the tenant discontinues tenancy in the unit. The
3379	association shall mail written notice to the shareholder of the
3380	association's demand that the tenant pay regular assessments to
3381	the association. The tenant shall not be liable for increases in
3382	the amount of the regular assessment due unless the tenant was
3383	reasonably notified of the increase prior to the day that the
3384	rent is due. The tenant shall be given a credit against rents
3385	due to the shareholder in the amount of assessments paid to the
3386	association. The association shall, upon request, provide the
3387	tenant with written receipts for payments made. The association
3388	may issue notices under s. 83.56 and may sue for eviction under
3389	ss. 83.59-83.625 as if the association were a landlord under
3390	part II of chapter 83 should the tenant fail to pay an
3391	assessment.  However, the association shall not otherwise be
3392	considered a landlord under chapter 83 and shall specifically
3393	not have any duty under s. 83.51. The tenant shall not, by
3394	virtue of payment of assessments, have any of the rights of a
3395	shareholder to vote in any election or to examine the books and
3396	records of the association. A court may supersede the effect of
3397	this subsection by appointing a receiver.
3398	Section 20.  Section 719.113, Florida Statutes, is created
3399	to read:
3400	719.113  Maintenance; limitation upon improvement; display
3401	of flag; hurricane shutters; display of religious decorations.--
3402	(1)  Maintenance of the common areas is the responsibility
3403	of the association. The cooperative documents may provide that
3404	certain limited common areas shall be maintained by those
3405	entitled to use the limited common areas or that the association
3406	shall provide the maintenance, either as a common expense or
3407	with the cost shared only by those entitled to use the limited
3408	common areas. If the maintenance is to be provided by the
3409	association at the expense of only those entitled to use the
3410	limited common areas, the cooperative documents shall describe
3411	in detail the method of apportioning such costs among those
3412	entitled to use the limited common areas. The association may
3413	use the provisions of s. 719.108 to enforce payment of the
3414	shares of such costs by the shareholders entitled to use the
3415	limited common areas.
3416	(2)  Except as otherwise provided in this section, there
3417	shall be no material alteration or substantial additions to the
3418	common areas, except in a manner provided in the cooperative
3419	documents as originally recorded or as amended under the
3420	procedures provided therein. If the cooperative documents as
3421	originally recorded or as amended under the procedures provided
3422	therein do not specify the procedure for approval of material
3423	alterations or substantial additions, 75 percent of the total
3424	voting interests of the association must approve the alterations
3425	or additions. This subsection is intended to clarify existing
3426	law and applies to associations existing on July 1, 2009.
3427	(3)  A shareholder shall not do anything within his or her
3428	unit or on the common areas which would adversely affect the
3429	safety or soundness of the common areas or any portion of the
3430	association property or cooperative property which is to be
3431	maintained by the association.
3432	(4)  Any shareholder may display one portable, removable
3433	United States flag in a respectful way and, on Armed Forces Day,
3434	Memorial Day, Flag Day, Independence Day, and Veterans' Day, may
3435	display in a respectful way portable, removable official flags,
3436	not larger than 4 1/2 feet by 6 feet, that represent the United
3437	States Army, Navy, Air Force, Marine Corps, or Coast Guard,
3438	regardless of any declaration rules or requirements dealing with
3439	flags or decorations.
3440	(5)  Each board of directors shall adopt hurricane shutter
3441	specifications for each building within each cooperative which
3442	shall include color, style, and other factors deemed relevant by
3443	the board. All specifications adopted by the board shall comply
3444	with the applicable building code.
3445	(a)  The board may, subject to the provisions of s.
3446	719.3026 and the approval of a majority of voting interests of
3447	the condominium, install hurricane shutters or hurricane
3448	protection that complies with or exceeds the applicable building
3449	code, or both, except that a vote of the shareholders is not
3450	required if the maintenance, repair, and replacement of
3451	hurricane shutters or other forms of hurricane protection are
3452	the responsibility of the association pursuant to the
3453	declaration of condominium. However, when hurricane protection
3454	or laminated glass or window film architecturally designed to
3455	function as hurricane protection which complies with or exceeds
3456	the current applicable building code has been previously
3457	installed, the board may not install hurricane shutters or other
3458	hurricane protection. Code-compliant impact glass may be
3459	installed by the association as hurricane protection if the area
3460	in which the glass is to be installed is an area that is the
3461	responsibility of the association. Notwithstanding s.
3462	719.107(3), if a shareholder installed code-compliant impact
3463	glass prior to the association voting to install such glass, and
3464	such glass and the frame thereof complies with the current
3465	applicable building codes and is otherwise in good repair, the
3466	shareholder shall not be required to pay the shareholders' pro
3467	rata share of the cost of installing code-compliant impact glass
3468	in the cooperative association.
3469	(b)  The association shall be responsible for the
3470	maintenance, repair, and replacement of the hurricane shutters
3471	or other hurricane protection authorized by this subsection if
3472	such hurricane shutters or other hurricane protection is the
3473	responsibility of the association pursuant to the declaration of
3474	condominium. If the hurricane shutters or other hurricane
3475	protection authorized by this subsection are the responsibility
3476	of the shareholders pursuant to the cooperative documents, the
3477	responsibility for the maintenance, repair, and replacement of
3478	such items shall be the responsibility of the shareholder.
3479	(c)  The board may operate hurricane shutters installed
3480	pursuant to this subsection without permission of the
3481	shareholders only when such operation is necessary to preserve
3482	and protect the cooperative property and association property.
3483	The installation, replacement, operation, repair, and
3484	maintenance of such shutters in accordance with the procedures
3485	set forth herein shall not be deemed a material alteration to
3486	the common elements or association property within the meaning
3487	of this section.
3488	(d)  Notwithstanding any provision to the contrary in the
3489	cooperative documents, if approval is required by the documents,
3490	a board shall not refuse to approve the installation or
3491	replacement of hurricane shutters by a shareholder conforming to
3492	the specifications adopted by the board.
3493	(6)  As to any cooperative building greater than three
3494	stories in height, at least every 5 years, and within 5 years if
3495	not available for inspection on July 1, 2009, the board shall
3496	have the cooperative building inspected to provide a report
3497	under seal of an architect or engineer authorized to practice in
3498	this state attesting to required maintenance, useful life, and
3499	replacement costs of the common areas. However, if approved by a
3500	majority of the voting interests present at a properly called
3501	meeting of the association, an association may waive this
3502	requirement. Such meeting and approval must occur prior to the
3503	end of the 5-year period and is effective only for that 5-year
3504	period.
3505	(7)  An association may not refuse the request of a
3506	shareholder for a reasonable accommodation for the attachment on
3507	the mantel or frame of the door of the shareholder of a
3508	religious object not to exceed 3 inches wide, 6 inches high, and
3509	1.5 inches deep.
3510	(8)  Notwithstanding the provisions of this section or the
3511	governing documents of a cooperative association, the board of
3512	directors may, without any requirement for approval of the
3513	shareholders, install upon or within the common areas or
3514	association property solar collectors, clotheslines, or other
3515	energy-efficient devices based on renewable resources for the
3516	benefit of the shareholders.
3517	Section 21.  Section 719.117, Florida Statutes, is created
3518	to read:
3519	719.117  Termination of cooperative.--
3520	(1)  LEGISLATIVE FINDINGS.--The Legislature finds that
3521	cooperatives are created as authorized by statute. In
3522	circumstances that may create economic waste, areas of
3523	disrepair, or obsolescence of a cooperative property for its
3524	intended use and thereby lower property tax values, the
3525	Legislature further finds that it is the public policy of this
3526	state to provide by statute a method to preserve the value of
3527	the property interests and the rights of alienation thereof that
3528	shareholders have in the cooperative property before and after
3529	termination. The Legislature further finds that it is contrary
3530	to the public policy of this state to require the continued
3531	operation of a cooperative when to do so constitutes economic
3532	waste or when the ability to do so is made impossible by law or
3533	regulation. This section applies to all cooperatives in this
3534	state in existence on or after July 1, 2009.
3535	(2)  TERMINATION BECAUSE OF ECONOMIC WASTE OR
3536	IMPOSSIBILITY.--
3537	(a)  Notwithstanding any provision to the contrary in the
3538	cooperative documents, the cooperative form of ownership of a
3539	property may be terminated by a plan of termination approved by
3540	the lesser of the lowest percentage of voting interests
3541	necessary to amend the articles of incorporation when:
3542	1.  The total estimated cost of repairs necessary to
3543	restore the improvements to their former condition or bring them
3544	into compliance with applicable laws or regulations exceeds the
3545	combined fair market value of all units in the cooperative after
3546	completion of the repairs; or
3547	2.  It becomes impossible to operate or reconstruct a
3548	cooperative in its prior physical configuration because of land
3549	use laws or regulations.
3550	(b)  Notwithstanding paragraph (a), a cooperative in which
3551	75 percent or more of the units are timeshare units may be
3552	terminated only pursuant to a plan of termination approved by 80
3553	percent of the total voting interests of the association and the
3554	holders of 80 percent of the original principal amount of
3555	outstanding recorded mortgage liens of timeshare estates in the
3556	cooperative, unless the declaration provides for a lower voting
3557	percentage.
3558	(3)  OPTIONAL TERMINATION.--Except as provided in
3559	subsection (2) or unless the declaration provides for a lower
3560	percentage, the cooperative form of ownership of the property
3561	may be terminated pursuant to a plan of termination approved by
3562	at least 80 percent of the total voting interests of the
3563	cooperative if not more than 10 percent of the total voting
3564	interests of the cooperative have rejected the plan of
3565	termination by negative vote or by providing written objections
3566	thereto. This subsection does not apply to cooperatives in which
3567	75 percent or more of the units are timeshare units.
3568	(4)  EXEMPTION.--A plan of termination is not an amendment
3569	subject to s. 719.1055(1).
3570	(5)  MORTGAGE LIENHOLDERS.--Notwithstanding any provision
3571	to the contrary in the declaration or this chapter, approval of
3572	a plan of termination by the holder of a recorded mortgage lien
3573	affecting a cooperative parcel in which fewer than 75 percent of
3574	the units are timeshare units is not required unless the plan of
3575	termination will result in less than the full satisfaction of
3576	the mortgage lien affecting the cooperative parcel. If such
3577	approval is required and not given, a holder of a recorded
3578	mortgage lien who objects to the plan of termination may contest
3579	the plan as provided in subsection (16). At the time of sale,
3580	the lien shall be transferred to the proportionate share of the
3581	proceeds assigned to the cooperative parcel in the plan of
3582	termination or as subsequently modified by the court.
3583	(6)  POWERS IN CONNECTION WITH TERMINATION.--The approval
3584	of the plan of termination does not terminate the association.
3585	The association shall continue in existence following approval
3586	of the plan of termination with all powers and duties it had
3587	before approval of the plan. Notwithstanding any provision to
3588	the contrary in the declaration or bylaws, after approval of the
3589	plan the board shall:
3590	(a)  Employ directors, agents, attorneys, and other
3591	professionals to liquidate or conclude its affairs.
3592	(b)  Conduct the affairs of the association as necessary
3593	for the liquidation or termination.
3594	(c)  Carry out contracts and collect, pay, and settle debts
3595	and claims for and against the association.
3596	(d)  Defend suits brought against the association.
3597	(e)  Sue in the name of the association for all sums due or
3598	owed to the association or to recover any of its property.
3599	(f)  Perform any act necessary to maintain, repair, or
3600	demolish unsafe or uninhabitable improvements or other
3601	cooperative property in compliance with applicable codes.
3602	(g)  Sell at public or private sale or exchange, convey, or
3603	otherwise dispose of assets of the association for an amount
3604	deemed to be in the best interests of the association, and
3605	execute bills of sale and deeds of conveyance in the name of the
3606	association.
3607	(h)  Collect and receive rents, profits, accounts
3608	receivable, income, maintenance fees, special assessments, or
3609	insurance proceeds for the association.
3610	(i)  Contract and do anything in the name of the
3611	association which is proper or convenient to terminate the
3612	affairs of the association.
3613	(7)  NATURAL DISASTERS.--
3614	(a)  If, after a natural disaster, the identity of the
3615	directors or their right to hold office is in doubt, if they are
3616	deceased or unable to act, if they fail or refuse to act, or if
3617	they cannot be located, any interested person may petition the
3618	circuit court to determine the identity of the directors or, if
3619	found to be in the best interests of the shareholders, to
3620	appoint a receiver to conclude the affairs of the association
3621	after a hearing following notice to such persons as the court
3622	directs. Lienholders shall be given notice of the petition and
3623	have the right to propose persons for the consideration by the
3624	court as receiver. If a receiver is appointed, the court shall
3625	direct the receiver to provide to all shareholders written
3626	notice of his or her appointment as receiver. Such notice shall
3627	be mailed or delivered within 10 days after the appointment.
3628	Notice by mail to a shareholder shall be sent to the address
3629	used by the county property appraiser for notice to the
3630	shareholder.
3631	(b)  The receiver shall have all powers given to the board
3632	pursuant to the declaration, bylaws, and subsection (6), and any
3633	other powers that are necessary to conclude the affairs of the
3634	association and are set forth in the order of appointment. The
3635	appointment of the receiver is subject to the bonding
3636	requirements of such order. The order shall also provide for the
3637	payment of a reasonable fee to the receiver from the sources
3638	identified in the order, which may include rents, profits,
3639	incomes, maintenance fees, or special assessments collected from
3640	the cooperative property.
3641	(8)  REPORTS AND REPLACEMENT OF RECEIVER.--
3642	(a)  The association, receiver, or termination trustee
3643	shall prepare reports each quarter following the approval of the
3644	plan of termination setting forth the status and progress of the
3645	termination, the costs and fees incurred, the date the
3646	termination is expected to be completed, and the current
3647	financial condition of the association, receivership, or
3648	trusteeship and provide copies of the report by regular mail to
3649	the shareholders and lienors at the mailing address provided to
3650	the association by the shareholders and the lienors.
3651	(b)  The shareholders of an association in termination may
3652	recall or remove members of the board of administration with or
3653	without cause at any time as provided in s. 718.106(1)(f).
3654	(c)  The lienors of an association in termination
3655	representing at least 50 percent of the outstanding amount of
3656	liens may petition the court for the appointment of a
3657	termination trustee, which shall be granted upon good cause
3658	shown.
3659	(9)  PLAN OF TERMINATION.--The plan of termination must be
3660	a written document executed in the same manner as a deed by
3661	shareholders having the requisite percentage of voting interests
3662	to approve the plan and by the termination trustee. A copy of
3663	the proposed plan of termination shall be given to all
3664	shareholders, in the same manner as provided for notice of an
3665	annual meeting, at least 14 days prior to the meeting at which
3666	the plan of termination is to be voted upon or prior to or
3667	simultaneously with the distribution of the solicitation seeking
3668	execution of the plan of termination or written consent to or
3669	joinder in the plan. A shareholder may document assent to the
3670	plan by executing the plan or by consent to or joinder in the
3671	plan in the manner of a deed. A plan of termination and the
3672	consents or joinders of shareholders and, if required, consents
3673	or joinders of mortgagees must be recorded in the public records
3674	of each county in which any portion of the cooperative is
3675	located. The plan is effective only upon recordation or at a
3676	later date specified in the plan.
3677	(10)  PLAN OF TERMINATION; REQUIRED PROVISIONS.--The plan
3678	of termination must specify:
3679	(a)  The name, address, and powers of the termination
3680	trustee.
3681	(b)  A date after which the plan of termination is void if
3682	it has not been recorded.
3683	(c)  The interests of the respective shareholders in the
3684	association property, common surplus, and other assets of the
3685	association, which shall be the same as the respective interests
3686	of the shareholders in the common areas immediately before the
3687	termination, unless otherwise provided in the declaration.
3688	(d)  The interests of the respective shareholders in any
3689	proceeds from the sale of the cooperative property. The plan of
3690	termination may apportion those proceeds pursuant to any method
3691	prescribed in subsection (12). If, pursuant to the plan of
3692	termination, cooperative property or real property owned by the
3693	association is to be sold following termination, the plan must
3694	provide for the sale and may establish any minimum sale terms.
3695	(e)  Any interests of the respective shareholders in
3696	insurance proceeds or condemnation proceeds that are not used
3697	for repair or reconstruction at the time of termination. Unless
3698	the declaration expressly addresses the distribution of
3699	insurance proceeds or condemnation proceeds, the plan of
3700	termination may apportion those proceeds pursuant to any method
3701	prescribed in subsection (12).
3702	(11)  PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
3703	TERMINATION.--
3704	(a)  The plan of termination may provide that each
3705	shareholder retains the exclusive right of possession to the
3706	portion of the real estate that formerly constituted the unit,
3707	in which case the plan must specify the conditions of
3708	possession.
3709	(b)  In a conditional termination, the plan must specify
3710	the conditions for termination. A conditional plan does not vest
3711	title in the termination trustee until the plan and a
3712	certificate executed by the association with the formalities of
3713	a deed, confirming that the conditions in the conditional plan
3714	have been satisfied or waived by the requisite percentage of the
3715	voting interests, have been recorded.
3716	(12)  ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE
3717	PROPERTY.--
3718	(a)  Unless the declaration expressly provides for the
3719	allocation of the proceeds of sale of cooperative property, the
3720	plan of termination must first apportion the proceeds between
3721	the aggregate value of all units and the value of the common
3722	areas, based on their respective fair market values immediately
3723	before the termination, as determined by one or more independent
3724	appraisers selected by the association or termination trustee.
3725	(b)  The portion of proceeds allocated to the units shall
3726	be further apportioned among the individual units. The
3727	apportionment is deemed fair and reasonable if it is so
3728	determined by the shareholders, who may approve the plan of
3729	termination by any of the following methods:
3730	1.  The respective values of the units based on the fair
3731	market values of the units immediately before the termination,
3732	as determined by one or more independent appraisers selected by
3733	the association or termination trustee;
3734	2.  The respective values of the units based on the most
3735	recent market value of the units before the termination, as
3736	provided in the county property appraiser's records; or
3737	3.  The respective interests of the units in the common
3738	elements specified in the cooperative documents immediately
3739	before the termination.
3740	(c)  The methods of apportionment in paragraph (b) do not
3741	prohibit any other method of apportioning the proceeds of sale
3742	allocated to the units agreed upon in the plan of termination.
3743	The portion of the proceeds allocated to the common elements
3744	shall be apportioned among the units based upon their respective
3745	interests in the common areas as provided in the declaration.
3746	(d)  Liens that encumber a unit shall be transferred to the
3747	proceeds of sale of the cooperative property and the proceeds of
3748	sale or other distribution of association property, common
3749	surplus, or other association assets attributable to such unit
3750	in their same priority. The proceeds of any sale of cooperative
3751	property pursuant to a plan of termination may not be deemed to
3752	be common surplus or association property.
3753	(13)  TERMINATION TRUSTEE.--The association shall serve as
3754	termination trustee unless another person is appointed in the
3755	plan of termination. If the association is unable, unwilling, or
3756	fails to act as trustee, any shareholder may petition the court
3757	to appoint a trustee. Upon the date of the recording or at a
3758	later date specified in the plan, title to the cooperative
3759	property vests in the trustee. Unless prohibited by the plan,
3760	the termination trustee shall be vested with the powers given to
3761	the board pursuant to the cooperative documents, bylaws, and
3762	subsection (6). If the association is not the termination
3763	trustee, the trustee's powers shall be coextensive with those of
3764	the association to the extent not prohibited in the plan of
3765	termination or the order of appointment. If the association is
3766	not the termination trustee, the association shall transfer any
3767	association property to the trustee. If the association is
3768	dissolved, the trustee shall also have such other powers
3769	necessary to conclude the affairs of the association.
3770	(14)  TITLE VESTED IN TERMINATION TRUSTEE.--If termination
3771	is pursuant to a plan of termination under subsection (2) or
3772	subsection (3), the shareholders' rights and title as tenants in
3773	common in undivided interests in the cooperative property vest
3774	in the termination trustee when the plan is recorded or at a
3775	later date specified in the plan. The shareholders thereafter
3776	become the beneficiaries of the proceeds realized from the plan
3777	of termination. The termination trustee may deal with the
3778	cooperative property or any interest therein if the plan confers
3779	on the trustee the authority to protect, conserve, manage, sell,
3780	or dispose of the cooperative property. The trustee, on behalf
3781	of the shareholders, may contract for the sale of real property,
3782	but the contract is not binding on the shareholders until the
3783	plan is approved pursuant to subsection (2) or subsection (3).
3784	(15)  NOTICE.--
3785	(a)  Within 30 days after a plan of termination has been
3786	recorded, the termination trustee shall deliver by certified
3787	mail, return receipt requested, notice to all shareholders,
3788	lienors of the cooperative property, and lienors of all units at
3789	their last known addresses that a plan of termination has been
3790	recorded. The notice must include the book and page number of
3791	the public records in which the plan was recorded, notice that a
3792	copy of the plan shall be furnished upon written request, and
3793	notice that the shareholder or lienor has the right to contest
3794	the fairness of the plan.
3795	(b)  The trustee, within 90 days after the effective date
3796	of the plan, shall provide to the division a certified copy of
3797	the recorded plan, the date the plan was recorded, and the
3798	county, book, and page number of the public records in which the
3799	plan is recorded.
3800	(16)  RIGHT TO CONTEST.--A shareholder or lienor may
3801	contest a plan of termination by initiating a summary procedure
3802	pursuant to s. 51.011 within 90 days after the date the plan is
3803	recorded. A shareholder or lienor who does not contest the plan
3804	within the 90-day period is barred from asserting or prosecuting
3805	a claim against the association, the termination trustee, any
3806	shareholder, or any successor in interest to the cooperative
3807	property. In an action contesting a plan of termination, the
3808	person contesting the plan has the burden of pleading and
3809	proving that the apportionment of the proceeds from the sale
3810	among the shareholders was not fair and reasonable. The
3811	apportionment of sale proceeds is presumed fair and reasonable
3812	if it was determined pursuant to the methods prescribed in
3813	subsection (12). The court shall determine the rights and
3814	interests of the parties and order the plan of termination to be
3815	implemented if it is fair and reasonable. If the court
3816	determines that the plan of termination is not fair and
3817	reasonable, the court may void the plan or may modify the plan
3818	to apportion the proceeds in a fair and reasonable manner
3819	pursuant to this section based upon the proceedings and order
3820	the modified plan of termination to be implemented. In such
3821	action, the prevailing party shall recover reasonable attorney's
3822	fees and costs.
3823	(17)  DISTRIBUTION.--
3824	(a)  Following termination of the cooperative, the
3825	cooperative property, association property, common surplus, and
3826	other assets of the association shall be held by the termination
3827	trustee, as trustee for shareholders and holders of liens on the
3828	units, in their order of priority.
3829	(b)  Not less than 30 days before the first distribution,
3830	the termination trustee shall deliver by certified mail, return
3831	receipt requested, a notice of the estimated distribution to all
3832	shareholders, lienors of the cooperative property, and lienors
3833	of each unit at their last known addresses stating a good faith
3834	estimate of the amount of the distributions to each class and
3835	the procedures and deadline for notifying the termination
3836	trustee of any objections to the amount. The deadline must be at
3837	least 15 days after the date the notice was mailed. The notice
3838	may be sent with or after the notice required by subsection
3839	(15). If a shareholder or lienor files a timely objection with
3840	the termination trustee, the trustee need not distribute the
3841	funds and property allocated to the respective shareholder or
3842	lienor until the trustee has had a reasonable time to determine
3843	the validity of the adverse claim. In the alternative, the
3844	trustee may interplead the shareholder, lienor, and any other
3845	person claiming an interest in the unit and deposit the funds
3846	allocated to the unit in the court registry, at which time the
3847	cooperative property, association property, common surplus, and
3848	other assets of the association are free of all claims and liens
3849	of the parties to the suit. In an interpleader action, the
3850	trustee and prevailing party may recover reasonable attorney's
3851	fees and costs.
3852	(c)  The proceeds from any sale of cooperative property or
3853	association property and any remaining cooperative property or
3854	association property, common surplus, and other assets shall be
3855	distributed in the following priority:
3856	1.  To pay the reasonable termination trustee's fees and
3857	costs and accounting fees and costs.
3858	2.  To lienholders of liens recorded prior to the recording
3859	of the cooperative documents.
3860	3.  To purchase-money lienholders on units to the extent
3861	necessary to satisfy their liens; however, the distribution may
3862	not exceed a shareholder's share of the proceeds.
3863	4.  To creditors of the association, as their interests
3864	appear.
3865	5.  To shareholders, the proceeds of any sale of
3866	cooperative property subject to satisfaction of liens on each
3867	unit in their order of priority, in shares specified in the plan
3868	of termination, unless objected to by a shareholder or lienor as
3869	provided in paragraph (b).
3870	6.  To shareholders, the remaining cooperative property,
3871	subject to satisfaction of liens on each unit in their order of
3872	priority, in shares specified in the plan of termination, unless
3873	objected to by a shareholder or a lienor as provided in
3874	paragraph (b).
3875	7.  To shareholders, the proceeds of any sale of
3876	association property, the remaining association property, common
3877	surplus, and other assets of the association, subject to
3878	satisfaction of liens on each unit in their order of priority,
3879	in shares specified in the plan of termination, unless objected
3880	to by a shareholder or a lienor as provided in paragraph (b).
3881	(d)  After determining that all known debts and liabilities
3882	of an association in the process of termination have been paid
3883	or adequately provided for, the termination trustee shall
3884	distribute the remaining assets pursuant to the plan of
3885	termination. If the termination is by court proceeding or
3886	subject to court supervision, the distribution may not be made
3887	until any period for the presentation of claims ordered by the
3888	court has elapsed.
3889	(e)  Assets held by an association upon a valid condition
3890	requiring return, transfer, or conveyance, which condition has
3891	occurred or will occur, shall be returned, transferred, or
3892	conveyed in accordance with the condition. The remaining
3893	association assets shall be distributed pursuant to paragraph
3894	(c).
3895	(f)  Distribution may be made in money, property, or
3896	securities and in installments or as a lump sum, if it can be
3897	done fairly and ratably and in conformity with the plan of
3898	termination. Distribution shall be made as soon as is reasonably
3899	consistent with the beneficial liquidation of the assets.
3900	(18)  ASSOCIATION STATUS.--The termination of a cooperative
3901	does not change the corporate status of the association that
3902	operated the cooperative property. The association continues to
3903	exist to conclude its affairs, prosecute and defend actions by
3904	or against it, collect and discharge obligations, dispose of and
3905	convey its property, and collect and divide its assets, but not
3906	to act except as necessary to conclude its affairs.
3907	(19)  CREATION OF ANOTHER COOPERATIVE.--The termination of
3908	a cooperative does not bar the creation by the termination
3909	trustee of another cooperative affecting any portion of the same
3910	property.
3911	Section 22.  Section 719.1224, Florida Statutes, is created
3912	to read:
3913	719.1224  Prohibition against SLAPP suits.--
3914	(1)  It is the intent of the Legislature to protect the
3915	right of cooperative shareholders to exercise their rights to
3916	instruct their representatives and petition for redress of
3917	grievances before the various governmental entities of this
3918	state as protected by the First Amendment to the United States
3919	Constitution and s. 5, Art. I of the State Constitution. The
3920	Legislature recognizes that strategic lawsuits against public
3921	participation, or "SLAPP suits," as they are typically referred
3922	to, have occurred when association members are sued by
3923	individuals, business entities, or governmental entities arising
3924	out of a cooperative shareholder's appearance and presentation
3925	before a governmental entity on matters related to the
3926	cooperative association. However, it is the public policy of
3927	this state that governmental entities, business organizations,
3928	and individuals not engage in SLAPP suits because such actions
3929	are inconsistent with the right of cooperative shareholders to
3930	participate in the state's institutions of government.
3931	Therefore, the Legislature finds and declares that prohibiting
3932	such lawsuits by governmental entities, business entities, and
3933	individuals against cooperative shareholders who address matters
3934	concerning their cooperative association will preserve this
3935	fundamental state policy, preserve the constitutional rights of
3936	cooperative shareholders, and ensure the continuation of
3937	representative government in this state. It is the intent of the
3938	Legislature that such lawsuits be expeditiously disposed of by
3939	the courts. As used in this subsection, the term "governmental
3940	entity" means the state, including the executive, legislative,
3941	and judicial branches of government; the independent
3942	establishments of the state, counties, municipalities,
3943	districts, authorities, boards, or commissions; or any agencies
3944	of these branches that are subject to chapter 286.
3945	(2)  A governmental entity, business organization, or
3946	individual in this state may not file or cause to be filed
3947	through its employees or agents any lawsuit, cause of action,
3948	claim, cross-claim, or counterclaim against a cooperative
3949	shareholder without merit and solely because such cooperative
3950	shareholder has exercised the right to instruct his or her
3951	representatives or the right to petition for redress of
3952	grievances before the various governmental entities of this
3953	state, as protected by the First Amendment to the United States
3954	Constitution and s. 5, Art. I of the State Constitution.
3955	(3)  A cooperative shareholder sued by a governmental
3956	entity, business organization, or individual in violation of
3957	this section has a right to an expeditious resolution of a claim
3958	that the suit is in violation of this section. A cooperative
3959	shareholder may petition the court for an order dismissing the
3960	action or granting final judgment in favor of that cooperative
3961	shareholder. The petitioner may file a motion for summary
3962	judgment, together with supplemental affidavits, seeking a
3963	determination that the governmental entity's, business
3964	organization's, or individual's lawsuit has been brought in
3965	violation of this section. The governmental entity, business
3966	organization, or individual shall thereafter file its response
3967	and any supplemental affidavits. As soon as practicable, the
3968	court shall set a hearing on the petitioner's motion, which
3969	shall be held at the earliest possible time after the filing of
3970	the governmental entity's, business organization's, or
3971	individual's response. The court may award the cooperative
3972	shareholder sued by the governmental entity, business
3973	organization, or individual actual damages arising from the
3974	governmental entity's, individual's, or business organization's
3975	violation of this section. A court may treble the damages
3976	awarded to a prevailing cooperative shareholder and shall state
3977	the basis for the treble damages award in its judgment. The
3978	court shall award the prevailing party reasonable attorney's
3979	fees and costs incurred in connection with a claim that an
3980	action was filed in violation of this section.
3981	(4)  Cooperative associations may not expend association
3982	funds in prosecuting a SLAPP suit against a cooperative
3983	shareholder.
3984	Section 23.  Section 719.1255, Florida Statutes, is amended
3985	to read:
3986	719.1255  Alternative resolution of disputes.--The Division
3987	of Florida Condominiums, Timeshares, and Mobile Homes of the
3988	Department of Business and Professional Regulation shall provide
3989	for alternative dispute resolution of matters related to
3990	cooperative associations and shareholders in a manner like that
3991	provided to condominium associations and unit owners in
3992	accordance with s. 718.1255.
3993	Section 24.  Section 719.1265, Florida Statutes, is created
3994	to read:
3995	719.1265  Association emergency powers.--
3996	(1)  To the extent allowed by law and unless specifically
3997	prohibited by the cooperative documents or the bylaws of an
3998	association, and consistent with the provisions of s. 617.0830,
3999	the board of directors, in response to damage caused by an event
4000	for which a state of emergency is declared pursuant to s. 252.36
4001	in the locale in which the cooperative is located, may, but is
4002	not required to, exercise the following powers:
4003	(a)  Conduct board meetings and shareholder meetings with
4004	notice given as is practicable. Such notice may be given in any
4005	practicable manner, including publication, radio, United States
4006	mail, the Internet, public service announcements, and
4007	conspicuous posting on the cooperative property or any other
4008	means the board deems reasonable under the circumstances. Notice
4009	of board decisions may be communicated as provided in this
4010	paragraph.
4011	(b)  Cancel and reschedule any association meeting.
4012	(c)  Name as assistant officers persons who are not
4013	directors, which assistant officers shall have the same
4014	authority as the executive officers to whom they are assistants
4015	for during the state of emergency to accommodate the incapacity
4016	or unavailability of any officer of the association.
4017	(d)  Relocate the association's principal office or
4018	designate alternative principal offices.
4019	(e)  Enter into agreements with local counties and
4020	municipalities to assist counties and municipalities with debris
4021	removal.
4022	(f)  Implement a disaster plan before or immediately
4023	following the event for which a state of emergency is declared
4024	which may include, but is not limited to, shutting down or off
4025	elevators; electricity; water, sewer, or security systems; or
4026	air conditioners.
4027	(g)  Based upon advice of emergency management officials or
4028	upon the advice of licensed professionals retained by the board,
4029	determine any portion of the cooperative property unavailable
4030	for entry or occupancy by shareholders, family members, tenants,
4031	guests, agents, or invitees to protect the health, safety, or
4032	welfare of such persons.
4033	(h)  Require the evacuation of the cooperative property in
4034	the event of a mandatory evacuation order in the locale in which
4035	the cooperative is located. Should any shareholder or other
4036	occupant of a cooperative fail or refuse to evacuate the
4037	cooperative property when the board has required evacuation, the
4038	association shall be immune from liability or injury to persons
4039	or property arising from such failure or refusal.
4040	(i)  Based upon advice of emergency management officials or
4041	upon the advice of licensed professionals retained by the board,
4042	determine whether the cooperative property can be safely
4043	inhabited or occupied. However, such determination is not
4044	conclusive as to any determination of habitability pursuant to
4045	the declaration.
4046	(j)  Mitigate further damage, including taking action to
4047	contract for the removal of debris and to prevent or mitigate
4048	the spread of fungus, including, but not limited to, mold or
4049	mildew, by removing and disposing of wet drywall, insulation,
4050	carpet, cabinetry, or other fixtures on or within the
4051	cooperative property, even if the shareholder is obligated by
4052	the cooperative documents or law to insure or replace those
4053	fixtures and to remove personal property from a unit.
4054	(k)  Contract, on behalf of any shareholder or
4055	shareholders, for items or services for which the shareholder or
4056	shareholders are otherwise individually responsible, but which
4057	are necessary to prevent further damage to the cooperative
4058	property. In such event, the shareholder or shareholders on
4059	whose behalf the board has contracted are responsible for
4060	reimbursing the association for the actual costs of the items or
4061	services, and the association may use its lien authority
4062	provided by s. 719.108 to enforce collection of the charges.
4063	Without limitation, such items or services may include the
4064	drying of units, the boarding of broken windows or doors, and
4065	the replacement of damaged air conditioners or air handlers to
4066	provide climate control in the units or other portions of the
4067	property.
4068	(l)  Regardless of any provision to the contrary and even
4069	if such authority does not specifically appear in the
4070	cooperative documents or bylaws of the association, levy special
4071	assessments without a vote of the shareholders.
4072	(m)  Without shareholders' approval, borrow money and
4073	pledge association assets as collateral to fund emergency
4074	repairs and carry out the duties of the association when
4075	operating funds are insufficient. This paragraph does not limit
4076	the general authority of the association to borrow money,
4077	subject to such restrictions as are contained in the cooperative
4078	documents or bylaws of the association.
4079	(2)  The special powers authorized under subsection (1)
4080	shall be limited to the time reasonably necessary to protect the
4081	health, safety, and welfare of the association and the
4082	shareholders and the shareholders' family members, tenants,
4083	guests, agents, or invitees and the time reasonably necessary to
4084	mitigate further damage and make emergency repairs.
4085	Additionally, unless 20 percent or more of the units are made
4086	uninhabitable by the emergency, the special powers authorized
4087	under subsection (1) shall only be exercised during the term of
4088	the Governor's executive order or proclamation declaring the
4089	state of emergency in the locale in which the condominium is
4090	located.
4091	Section 25.  Subsections (1) and (4) of section 719.301,
4092	Florida Statutes, are amended to read:
4093	719.301  Transfer of association control.--
4094	(1)  When shareholders unit owners other than the developer
4095	own 15 percent or more of the units in a cooperative that will
4096	be operated ultimately by an association, the shareholders unit
4097	owners other than the developer shall be entitled to elect not
4098	less than one-third of the members of the board of
4099	administration of the association. Shareholders Unit owners
4100	other than the developer are entitled to elect not less than a
4101	majority of the members of the board of administration of an
4102	association:
4103	(a)  Three years after 50 percent of the units that will be
4104	operated ultimately by the association have been conveyed to
4105	purchasers;
4106	(b)  Three months after 90 percent of the units that will
4107	be operated ultimately by the association have been conveyed to
4108	purchasers;
4109	(c)  When all the units that will be operated ultimately by
4110	the association have been completed, some have been conveyed to
4111	purchasers, and none of the others are being offered for sale by
4112	the developer in the ordinary course of business;
4113	(d)  When some of the units have been conveyed to
4114	purchasers and none of the others are being constructed or
4115	offered for sale by the developer in the ordinary course of
4116	business; or
4117	(e)  When the developer files a petition seeking protection
4118	in bankruptcy;
4119	(f)  When a receiver for the developer is appointed by a
4120	circuit court and is not discharged within 30 days after such
4121	appointment; or
4122	(g)(e)  Seven years after creation of the cooperative
4123	association,
4124
4125	whichever occurs first. The developer is entitled to elect at
4126	least one member of the board of administration of an
4127	association as long as the developer holds for sale in the
4128	ordinary course of business at least 5 percent in cooperatives
4129	with fewer than 500 units and 2 percent in cooperatives with 500
4130	or more units in a cooperative operated by the association.
4131	After the developer relinquishes control of the association, the
4132	developer may exercise the right to vote any developer-owned
4133	units in the same manner as any other shareholder unit owner
4134	except for purposes of reacquiring control of the association or
4135	selecting the majority of the members of the board.
4136	(4)  When shareholders unit owners other than the developer
4137	elect a majority of the members of the board of administration
4138	of an association, the developer shall relinquish control of the
4139	association, and the shareholders unit owners shall accept
4140	control. Simultaneously, or for the purpose of paragraph (c) not
4141	more than 90 days thereafter, the developer shall deliver to the
4142	association, at the developer's expense, all property of the
4143	shareholders unit owners and of the association held or
4144	controlled by the developer, including, but not limited to, the
4145	following items, if applicable, as to each cooperative operated
4146	by the association:
4147	(a)1.  The original or a photocopy of the recorded
4148	cooperative documents and all amendments thereto. If a photocopy
4149	is provided, it shall be certified by affidavit of the
4150	developer, or an officer or agent of the developer, as being a
4151	complete copy of the actual recorded cooperative documents.
4152	2.  A certified copy of the association's articles of
4153	incorporation, or if it is not incorporated, then copies of the
4154	documents creating the association.
4155	3.  A copy of the bylaws.
4156	4.  The minute books, including all minutes, and other
4157	books and records of the association, if any.
4158	5.  Any house rules and regulations which have been
4159	promulgated.
4160	(b)  Resignations of officers and members of the board of
4161	administration who are required to resign because the developer
4162	is required to relinquish control of the association.
4163	(c)  The financial records, including financial statements
4164	of the association, and source documents since the incorporation
4165	of the association through the date of turnover. The records
4166	shall be audited for the period of the incorporation of the
4167	association or for the period covered by the last audit, if an
4168	audit has been performed for each fiscal year since
4169	incorporation, by an independent certified public accountant.
4170	All financial statements shall be prepared in accordance with
4171	generally accepted accounting standards and shall be audited in
4172	accordance with generally accepted auditing standards as
4173	prescribed by the Board of Accountancy. The accountant
4174	performing the review shall examine to the extent necessary
4175	supporting documents and records, including the cash
4176	disbursements and related paid invoices to determine if
4177	expenditures were for association purposes and the billings,
4178	cash receipts, and related records to determine that the
4179	developer was charged and paid the proper amounts of
4180	assessments.
4181	(d)  Association funds or control thereof.
4182	(e)  All tangible personal property that is property of the
4183	association, represented by the developer to be part of the
4184	common areas or ostensibly part of the common areas, and an
4185	inventory of that property.
4186	(f)  A copy of the plans and specifications utilized in the
4187	construction or remodeling of improvements and the supplying of
4188	equipment to the cooperative and in the construction and
4189	installation of all mechanical components serving the
4190	improvements and the site, with a certificate in affidavit form
4191	of the developer, the developer's agent, or an architect or
4192	engineer authorized to practice in this state that such plans
4193	and specifications represent, to the best of their knowledge and
4194	belief, the actual plans and specifications utilized in the
4195	construction and improvement of the cooperative property and for
4196	the construction and installation of the mechanical components
4197	serving the improvements. If the cooperative property has been
4198	organized as a cooperative more than 3 years after the
4199	completion of construction or remodeling of the improvements,
4200	the requirements of this paragraph shall not apply.
4201	(g)  A list of the names and addresses, of which the
4202	developer had knowledge at any time in the development of the
4203	cooperative, of all contractors, subcontractors, and suppliers
4204	utilized in the construction or remodeling of the improvements
4205	and in the landscaping.
4206	(h)  Insurance policies.
4207	(i)  Copies of any certificates of occupancy which may have
4208	been issued for the cooperative property.
4209	(j)  Any other permits issued by governmental bodies
4210	applicable to the cooperative property in force or issued within
4211	1 year prior to the date the shareholders unit owners other than
4212	the developer take control of the association.
4213	(k)  All written warranties of the contractor,
4214	subcontractors, suppliers, and manufacturers, if any, that are
4215	still effective.
4216	(l)  A roster of shareholders unit owners and their
4217	addresses and telephone numbers, if known, as shown on the
4218	developer's records.
4219	(m)  Leases of the common areas and other leases to which
4220	the association is a party.
4221	(n)  Employment contracts or service contracts in which the
4222	association is one of the contracting parties or service
4223	contracts in which the association or the shareholders unit
4224	owners have an obligation or responsibility, directly or
4225	indirectly, to pay some or all of the fee or charge of the
4226	person or persons performing the service.
4227	(o)  All other contracts to which the association is a
4228	party.
4229	(p)  A turnover inspection report included in the official
4230	records, under seal of an architect or engineer authorized to
4231	practice in this state, attesting to required maintenance,
4232	useful life, and replacement costs of the following applicable
4233	common areas:
4234	1.  Roof.
4235	2.  Structure.
4236	3.  Fireproofing and fire protection systems.
4237	4.  Elevators.
4238	5.  Heating and cooling systems.
4239	6.  Plumbing.
4240	7.  Electrical systems.
4241	8.  Swimming pool or spa and equipment.
4242	9.  Seawalls.
4243	10.  Pavement and parking areas.
4244	11.  Drainage systems.
4245	12.  Painting.
4246	13.  Irrigation systems.
4247	Section 26.  Section 719.3025, Florida Statutes, is created
4248	to read:
4249	719.3025  Agreements for operation, maintenance, or
4250	management of cooperatives; specific requirements.--
4251	(1)  No written contract between a party contracting to
4252	provide maintenance or management services and an association
4253	which contract provides for operation, maintenance, or
4254	management of a cooperative association or property serving the
4255	shareholders of a cooperative shall be valid or enforceable
4256	unless the contract:
4257	(a)  Specifies the services, obligations, and
4258	responsibilities of the party contracting to provide maintenance
4259	or management services to the shareholders.
4260	(b)  Specifies those costs incurred in the performance of
4261	those services, obligations, or responsibilities which are to be
4262	reimbursed by the association to the party contracting to
4263	provide maintenance or management services.
4264	(c)  Provides an indication of how often each service,
4265	obligation, or responsibility is to be performed, whether stated
4266	for each service, obligation, or responsibility or in categories
4267	thereof.
4268	(d)  Specifies a minimum number of personnel to be employed
4269	by the party contracting to provide maintenance or management
4270	services for the purpose of providing service to the
4271	association.
4272	(e)  Discloses any financial or ownership interest which
4273	the developer, if the developer is in control of the
4274	association, holds with regard to the party contracting to
4275	provide maintenance or management services.
4276	(f)  Discloses any financial or ownership interest a board
4277	member or any party providing maintenance or management services
4278	to the association holds with the contracting party.
4279	(2)  In any case in which the party contracting to provide
4280	maintenance or management services fails to provide such
4281	services in accordance with the contract, the association is
4282	authorized to procure such services from some other party and
4283	shall be entitled to collect any fees or charges paid for
4284	services performed by another party from the party contracting
4285	to provide maintenance or management services.
4286	(3)  Any services or obligations not stated on the face of
4287	the contract shall be unenforceable.
4288	(4)  Notwithstanding the fact that certain vendors contract
4289	with associations to maintain equipment or property which is
4290	made available to serve shareholders, it is the intent of the
4291	Legislature that this section applies to contracts for
4292	maintenance or management services for which the association
4293	pays compensation. This section does not apply to contracts for
4294	services or property made available for the convenience of
4295	shareholders by lessees or licensees of the association, such as
4296	coin-operated laundry, food, soft drink, or telephone vendors;
4297	cable television operators; retail store operators; businesses;
4298	restaurants; or similar vendors.
4299	Section 27.  Section 719.3026, Florida Statutes, is amended
4300	to read:
4301	719.3026  Contracts for products and services; in writing;
4302	bids; exceptions.--Associations with 10 or fewer less than 100
4303	units may opt out of the provisions of this section if two-
4304	thirds of the shareholders unit owners vote to do so, which opt-
4305	out may be accomplished by a proxy specifically setting forth
4306	the exception from this section.
4307	(1)  All contracts as further described herein or any
4308	contract that is not to be fully performed within 1 year after
4309	the making thereof, for the purchase, lease, or renting of
4310	materials or equipment to be used by the association in
4311	accomplishing its purposes under this chapter, and all contracts
4312	for the provision of services, shall be in writing. If a
4313	contract for the purchase, lease, or renting of materials or
4314	equipment, or for the provision of services, requires payment by
4315	the association in an amount which in the aggregate exceeds 5
4316	percent of the association's budget, including reserves, the
4317	association shall obtain competitive bids for the materials,
4318	equipment, or services. Nothing contained herein shall be
4319	construed to require the association to accept the lowest bid.
4320	(2)(a)1.  Notwithstanding the foregoing, contracts with
4321	employees of the association, and contracts for attorney,
4322	accountant, architect, community association manager, timeshare
4323	management firm, engineering, and landscape architect services
4324	shall not be subject to the provisions of this section.
4325	2.  A contract executed before January 1, 1992, and any
4326	renewal thereof, is not subject to the competitive bid
4327	requirements of this section. If a contract was awarded under
4328	the competitive bid procedures of this section, any renewal of
4329	that contract is not subject to such competitive bid
4330	requirements if the contract contains a provision that allows
4331	the board to cancel the contract on 30 days' notice. Materials,
4332	equipment, or services provided to a cooperative pursuant to a
4333	local government franchise agreement by a franchise holder are
4334	not subject to the competitive bid requirement. A contract with
4335	a manager, if made by a competitive bid, may be made for up to 3
4336	years. A condominium whose declaration or bylaws provides for
4337	competitive bidding for services may operate under the
4338	provisions of that declaration or bylaws in lieu of this section
4339	if those provisions are not less stringent than the requirements
4340	of this section.
4341	(b)  This section does not limit the ability of an
4342	association to obtain needed products and services in an
4343	emergency.
4344	(c)  This section does not apply if the business entity
4345	with which the association desires to enter into a contract is
4346	the only source of supply within the county serving the
4347	association.
4348	(d)  Nothing contained in this subsection shall excuse a
4349	party contracting to provide maintenance or management services
4350	from compliance with s. 719.3025.
4351	(3)  As to any contract or other transaction between an
4352	association and one or more of its directors or any other
4353	corporation, firm, association, or entity in which one or more
4354	of its directors are directors or officers or are financially
4355	interested:
4356	(a)  The association shall comply with the requirements of
4357	s. 617.0832.
4358	(b)  The disclosures required by s. 617.0832 shall be
4359	entered into the written minutes of the meeting.
4360	(c)  Approval of the contract or other transaction shall
4361	require an affirmative vote of two-thirds of the directors
4362	present.
4363	(d)  At the next regular or special meeting of the
4364	shareholders, the existence of the contract or other transaction
4365	shall be disclosed to the shareholders. Upon motion of any
4366	shareholder, the contract or transaction shall be brought up for
4367	a vote and may be canceled by a majority vote of the
4368	shareholders present. Should the shareholders cancel the
4369	contract, the association shall only be liable for the
4370	reasonable value of goods and services provided up to the time
4371	of cancellation and shall not be liable for any termination fee,
4372	liquidated damages, or other form of penalty for such
4373	cancellation.
4374	Section 28.  Section 719.303, Florida Statutes, is amended
4375	to read:
4376	719.303  Obligations of shareholders owners.--
4377	(1)  Each shareholder unit owner, each tenant and other
4378	invitee, and each association shall be governed by, and shall
4379	comply with the provisions of, this chapter, the cooperative
4380	documents, the documents creating the association, and the
4381	association bylaws, and the provisions thereof shall be deemed
4382	expressly incorporated into any lease of a unit. Actions for
4383	damages or for injunctive relief, or both, for failure to comply
4384	with these provisions may be brought by the association or by a
4385	shareholder unit owner against:
4386	(a)  The association.
4387	(b)  A shareholder unit owner.
4388	(c)  Directors designated by the developer, for actions
4389	taken by them prior to the time control of the association is
4390	assumed by shareholders unit owners other than the developer.
4391	(d)  Any director who willfully and knowingly fails to
4392	comply with these provisions.
4393	(e)  Any tenant leasing a unit, and any other invitee
4394	occupying a unit.
4395
4396	The prevailing party in any such action or in any action in
4397	which the purchaser claims a right of voidability based upon
4398	contractual provisions as required in s. 719.503(1)(a) is
4399	entitled to recover reasonable attorney's fees. A shareholder
4400	unit owner prevailing in an action between the association and
4401	the shareholder unit owner under this section, in addition to
4402	recovering his or her reasonable attorney's fees, may recover
4403	additional amounts as determined by the court to be necessary to
4404	reimburse the shareholder unit owner for his or her share of
4405	assessments levied by the association to fund its expenses of
4406	the litigation. This relief does not exclude other remedies
4407	provided by law. Actions arising under this subsection shall not
4408	be deemed to be actions for specific performance.
4409	(2)  A provision of this chapter may not be waived if the
4410	waiver would adversely affect the rights of a shareholder unit
4411	owner or the purpose of the provision, except that shareholders
4412	unit owners or members of a board of administration may waive
4413	notice of specific meetings in writing if provided by the
4414	bylaws. Any instrument given in writing by the shareholder unit
4415	owner or purchaser to an escrow agent may be relied upon by an
4416	escrow agent, whether or not such instruction and the payment of
4417	funds thereunder might constitute a waiver of any provision of
4418	this chapter.
4419	(3)  If the cooperative documents so provide, the
4420	association may levy reasonable fines against a shareholder unit
4421	owner for failure of the shareholder unit owner or his or her
4422	licensee or invitee or the unit's occupant to comply with any
4423	provision of the cooperative documents or reasonable rules of
4424	the association. No fine shall become a lien against a unit. No
4425	fine shall exceed $100 per violation. However, a fine may be
4426	levied on the basis of each day of a continuing violation, with
4427	a single notice and opportunity for hearing, provided that no
4428	such fine shall in the aggregate exceed $1,000. No fine may be
4429	levied except after giving reasonable notice and opportunity for
4430	a hearing to the shareholder unit owner and, if applicable, his
4431	or her licensee or invitee. The hearing shall be held before a
4432	committee of other shareholders who are neither board members
4433	nor persons residing in a board member's household unit owners.
4434	If the committee does not agree with the fine, it shall not be
4435	levied. This subsection does not apply to unoccupied units.
4436	Section 29.  Section 719.501, Florida Statutes, is amended
4437	to read:
4438	719.501  Authority, responsibilities, Powers and duties of
4439	Division of Florida Condominiums, Timeshares, and Mobile
4440	Homes.--
4441	(1)  The Division of Florida Condominiums, Timeshares, and
4442	Mobile Homes of the Department of Business and Professional
4443	Regulation, referred to as the "division" in this part, in
4444	addition to other powers and duties prescribed by chapter 718,
4445	has the power to enforce and ensure compliance with this chapter
4446	and adopted rules relating to the development, construction,
4447	sale, lease, ownership, operation, and management of residential
4448	cooperative units. In performing its duties, the division has
4449	complete jurisdiction to investigate complaints and enforce
4450	compliance with the provisions of this chapter. shall have the
4451	following powers and duties:
4452	(a)  The division may make necessary public or private
4453	investigations within or outside this state to determine whether
4454	any person has violated this chapter or any rule or order
4455	hereunder, to aid in the enforcement of this chapter, or to aid
4456	in the adoption of rules or forms hereunder.
4457	(b)  The division may require or permit any person to file
4458	a statement in writing, under oath or otherwise, as the division
4459	determines, as to the facts and circumstances concerning a
4460	matter to be investigated.
4461	(c)  For the purpose of any investigation under this
4462	chapter, the division director or any officer or employee
4463	designated by the division director may administer oaths or
4464	affirmations, subpoena witnesses and compel their attendance,
4465	take evidence, and require the production of any matter which is
4466	relevant to the investigation, including the existence,
4467	description, nature, custody, condition, and location of any
4468	books, documents, or other tangible things and the identity and
4469	location of persons having knowledge of relevant facts or any
4470	other matter reasonably calculated to lead to the discovery of
4471	material evidence. Upon failure by a person to obey a subpoena
4472	or to answer questions propounded by the investigating officer
4473	and upon reasonable notice to all persons affected thereby, the
4474	division may apply to the circuit court for an order compelling
4475	compliance.
4476	(d)  Notwithstanding any remedies available to shareholders
4477	unit owners and associations, if the division has reasonable
4478	cause to believe that a violation of any provision of this
4479	chapter or related rule has occurred, the division may institute
4480	enforcement proceedings in its own name against a developer,
4481	association, officer, or member of the board, or its assignees
4482	or agents, as follows:
4483	1.  The division may permit a person whose conduct or
4484	actions may be under investigation to waive formal proceedings
4485	and enter into a consent proceeding whereby orders, rules, or
4486	letters of censure or warning, whether formal or informal, may
4487	be entered against the person.
4488	2.  The division may issue an order requiring the
4489	developer, association, officer, or member of the board, or its
4490	assignees or agents, or any community association manager or
4491	community association management firm to cease and desist from
4492	the unlawful practice and take such affirmative action as in the
4493	judgment of the division will carry out the purposes of this
4494	chapter. If the division finds that a developer, association,
4495	officer, or member of the board of directors, or its assignees
4496	or agents, or any community association manager or community
4497	association management firm is violating or is about to violate
4498	any provision of this chapter, any rule adopted or order issued
4499	by the division, or any written agreement entered into with the
4500	division, and presents an immediate danger to the public
4501	requiring an immediate final order, it may issue an emergency
4502	cease and desist order reciting with particularity the facts
4503	underlying such findings. The emergency cease and desist order
4504	is effective for 90 days. If the division begins nonemergency
4505	cease and desist proceedings, the emergency cease and desist
4506	order remains effective until the conclusion of the proceedings
4507	under ss. 120.569 and 120.57. Such affirmative action may
4508	include, but is not limited to, an order requiring a developer
4509	to pay moneys determined to be owed to a condominium
4510	association.
4511	3.  If a developer fails to pay any restitution determined
4512	by the division to be owed, plus any accrued interest at the
4513	highest rate permitted by law, within 30 days after expiration
4514	of any appellate time period of a final order requiring payment
4515	of restitution or the conclusion of any appeal thereof,
4516	whichever is later, the division shall bring an action in
4517	circuit or county court on behalf of any association, class of
4518	shareholders, lessees, or purchasers for restitution,
4519	declaratory relief, injunctive relief, or any other available
4520	remedy. The division may also temporarily revoke its acceptance
4521	of the filing for the developer to which the restitution relates
4522	until payment of restitution is made. The division may bring an
4523	action in circuit court on behalf of a class of unit owners,
4524	lessees, or purchasers for declaratory relief, injunctive
4525	relief, or restitution.
4526	4.  The division may petition the court for the appointment
4527	of a receiver or conservator. If appointed, the receiver or
4528	conservator may take action to implement the court order to
4529	ensure the performance of the order and to remedy any breach
4530	thereof. In addition to all other means provided by law for the
4531	enforcement of an injunction or temporary restraining order, the
4532	circuit court may impound or sequester the property of a party
4533	defendant, including books, papers, documents, and related
4534	records, and allow the examination and use of the property by
4535	the division and a court-appointed receiver or conservator.
4536	5.  The division may apply to the circuit court for an
4537	order of restitution in which the defendant in an action brought
4538	pursuant to subparagraph 4. shall be ordered to make restitution
4539	of those sums shown by the division to have been obtained by the
4540	defendant in violation of this chapter. Such restitution shall,
4541	at the option of the court, be payable to the conservator or
4542	receiver appointed pursuant to subparagraph 4. or directly to
4543	the persons whose funds or assets were obtained in violation of
4544	this chapter.
4545	6.4.  The division may impose a civil penalty against a
4546	developer or association, or its assignees or agents, for any
4547	violation of this chapter or related rule adopted under this
4548	chapter. The division may impose a civil penalty individually
4549	against any officer or board member who willfully and knowingly
4550	violates a provision of this chapter, a rule adopted pursuant to
4551	this chapter, or a final order of the division; may order the
4552	removal of such individual as an officer or from the board of
4553	directors or as an officer of the association; and may prohibit
4554	such individual from serving as an officer or on the board of a
4555	community association for a stated period of time. The term
4556	"willfully and knowingly" means that the division informed the
4557	officer or board member that his or her action or intended
4558	action violates this chapter, a rule adopted under this chapter,
4559	or a final order of the division, and that the officer or board
4560	member refused to comply with the requirements of this chapter,
4561	a rule adopted under this chapter, or a final order of the
4562	division. The division, prior to initiating formal agency action
4563	under chapter 120, shall afford the officer or board member an
4564	opportunity to voluntarily comply with this chapter, a rule
4565	adopted under this chapter, or a final order of the division. An
4566	officer or board member who complies within 10 days is not
4567	subject to a civil penalty. A penalty may be imposed on the
4568	basis of each day of continuing violation, but in no event shall
4569	the penalty for any offense exceed $5,000. By January 1, 1998,
4570	the division shall adopt, by rule, penalty guidelines applicable
4571	to possible violations or to categories of violations of this
4572	chapter or rules adopted by the division. The guidelines must
4573	specify a meaningful range of civil penalties for each such
4574	violation of the statute and rules and must be based upon the
4575	harm caused by the violation, the repetition of the violation,
4576	and upon such other factors deemed relevant by the division. For
4577	example, the division may consider whether the violations were
4578	committed by a developer or shareholder-controlled owner-
4579	controlled association, the size of the association, and other
4580	factors. The guidelines must designate the possible mitigating
4581	or aggravating circumstances that justify a departure from the
4582	range of penalties provided by the rules. It is the legislative
4583	intent that minor violations be distinguished from those which
4584	endanger the health, safety, or welfare of the cooperative
4585	residents or other persons and that such guidelines provide
4586	reasonable and meaningful notice to the public of likely
4587	penalties that may be imposed for proscribed conduct. This
4588	subsection does not limit the ability of the division to
4589	informally dispose of administrative actions or complaints by
4590	stipulation, agreed settlement, or consent order. All amounts
4591	collected shall be deposited with the Chief Financial Officer to
4592	the credit of the Division of Florida Condominiums, Timeshares,
4593	and Mobile Homes Trust Fund. If a developer fails to pay the
4594	civil penalty and the amount deemed to be owed to the
4595	association, the division shall thereupon issue an order
4596	directing that such developer cease and desist from further
4597	operation until such time as the civil penalty is paid or may
4598	pursue enforcement of the penalty in a court of competent
4599	jurisdiction. If an association fails to pay the civil penalty,
4600	the division shall thereupon pursue enforcement in a court of
4601	competent jurisdiction, and the order imposing the civil penalty
4602	or the cease and desist order shall not become effective until
4603	20 days after the date of such order. Any action commenced by
4604	the division shall be brought in the county in which the
4605	division has its executive offices or in the county where the
4606	violation occurred.
4607	7.  If a shareholder presents the division with proof that
4608	the shareholder has requested access to official records in
4609	writing by certified mail, and that after 10 days the
4610	shareholder again made the same request for access to official
4611	records in writing by certified mail, and that more than 10 days
4612	has elapsed since the second request and the association has
4613	still failed or refused to provide access to official records as
4614	required by this chapter, the division shall issue a subpoena
4615	requiring production of the requested records where the records
4616	are kept pursuant to s. 719.104.
4617	8.  In addition to subparagraph 6., the division may seek
4618	the imposition of a civil penalty through the circuit court for
4619	any violation for which the division may issue a notice to show
4620	cause under paragraph (r). The civil penalty shall be at least
4621	$500 but no more than $5,000 for each violation. The court may
4622	also award to the prevailing party court costs and reasonable
4623	attorney's fees and, if the division prevails, may also award
4624	reasonable costs of investigation.
4625	9.  When the division finds that any person has derived an
4626	improper personal benefit from a cooperative association, the
4627	division shall order the person to pay restitution to the
4628	association and shall order the person to pay to the division
4629	the costs of investigation and prosecution.
4630	(e)  The division may prepare and disseminate a prospectus
4631	and other information to assist prospective shareholders owners,
4632	purchasers, lessees, and developers of residential cooperatives
4633	in assessing the rights, privileges, and duties pertaining
4634	thereto.
4635	(f)  The division has authority to adopt rules pursuant to
4636	ss. 120.536(1) and 120.54 to implement and enforce the
4637	provisions of this chapter.
4638	(g)  The division shall establish procedures for providing
4639	notice to an association and the developer during the period
4640	when the developer controls the association when the division is
4641	considering the issuance of a declaratory statement with respect
4642	to the cooperative documents governing such cooperative
4643	community.
4644	(h)  The division shall furnish each association which pays
4645	the fees required by paragraph (2)(a) a copy of this chapter
4646	act, subsequent changes to this act on an annual basis, as an
4647	amended version of this act as it becomes available from the
4648	Secretary of State's office on a biennial basis, and the rules
4649	adopted thereto on an annual basis.
4650	(i)  The division shall annually provide each association
4651	with a summary of declaratory statements and formal legal
4652	opinions relating to the operations of cooperatives which were
4653	rendered by the division during the previous year.
4654	(j)  The division shall adopt uniform accounting
4655	principles, policies, and standards to be used by all
4656	associations in the preparation and presentation of all
4657	financial statements required by this chapter. The principles,
4658	policies, and standards shall take into consideration the size
4659	of the association and the total revenue collected by the
4660	association.
4661	(j)(k)  The division shall provide training and educational
4662	programs for cooperative association board members and
4663	shareholders unit owners. The training may, in the division's
4664	discretion, include web-based electronic media and live training
4665	and seminars in various locations throughout the state. The
4666	division shall have the authority to review and approve
4667	educational and training programs for board members and
4668	shareholders offered by providers and shall maintain a current
4669	list of approved programs and providers and shall make such list
4670	available to board members and shareholders in a reasonable and
4671	cost-effective manner.
4672	(k)(l)  The division shall maintain a toll-free telephone
4673	number accessible to cooperative shareholders unit owners.
4674	(l)  The division shall develop a program to certify both
4675	volunteer and paid mediators to provide mediation of cooperative
4676	disputes. The division shall provide, upon request, a list of
4677	such mediators to any association, shareholder, or other
4678	participant in arbitration proceedings under s. 719.1255
4679	requesting a copy of the list. The division shall include on the
4680	list of volunteer mediators only the names of persons who have
4681	received at least 20 hours of training in mediation techniques
4682	or who have mediated at least 20 disputes. In order to become
4683	initially certified by the division, paid mediators must be
4684	certified by the Supreme Court to mediate court cases in county
4685	or circuit courts. However, the division may adopt, by rule,
4686	additional factors for the certification of paid mediators,
4687	which factors must be related to experience, education, or
4688	background. Any person initially certified as a paid mediator by
4689	the division must, in order to continue to be certified, comply
4690	with the factors or requirements imposed by rules adopted by the
4691	division.
4692	(m)  When a complaint is made to the division, the division
4693	shall conduct its inquiry with reasonable dispatch and with due
4694	regard to the interests of the affected parties. Within 30 days
4695	after receipt of a complaint, the division shall acknowledge the
4696	complaint in writing and notify the complainant whether the
4697	complaint is within the jurisdiction of the division and whether
4698	additional information is needed by the division from the
4699	complainant. The division shall conduct its investigation and
4700	shall, within 90 days after receipt of the original complaint or
4701	timely requested additional information, take action upon the
4702	complaint. However, the failure to complete the investigation
4703	within 90 days does not prevent the division from continuing the
4704	investigation, accepting or considering evidence obtained or
4705	received after 90 days, or taking administrative action if
4706	reasonable cause exists to believe that a violation of this
4707	chapter or a rule of the division has occurred. If an
4708	investigation is not completed within the time limits
4709	established in this paragraph, the division shall, on a monthly
4710	basis, notify the complainant in writing of the status of the
4711	investigation. When reporting its action to the complainant, the
4712	division shall inform the complainant of any right to a hearing
4713	pursuant to ss. 120.569 and 120.57.
4714	(n)  Cooperative association directors, officers, and
4715	employees; cooperative developers; community association
4716	managers; and community association management firms have an
4717	ongoing duty to reasonably cooperate with the division in any
4718	investigation pursuant to this section. The division shall refer
4719	to local law enforcement authorities any person whom the
4720	division believes has altered, destroyed, concealed, or removed
4721	any record, document, or thing required to be kept or maintained
4722	by this chapter with the purpose to impair its verity or
4723	availability in the department's investigation.
4724	(o)  The division may:
4725	1.  Contract with agencies in this state or other
4726	jurisdictions to perform investigative functions; or
4727	2.  Accept grants-in-aid from any source.
4728	(p)  The division shall cooperate with similar agencies in
4729	other jurisdictions to establish uniform filing procedures and
4730	forms, public offering statements, advertising standards, and
4731	rules and common administrative practices.
4732	(q)  The division shall consider notice to a developer to
4733	be complete when it is delivered to the developer's address
4734	currently on file with the division.
4735	(r)  In addition to its enforcement authority, the division
4736	may issue a notice to show cause, which shall provide for a
4737	hearing, upon written request, in accordance with chapter 120.
4738	(s)  In the reports required by s. 718.501(1)(s), the
4739	division shall also report the same information for cooperative
4740	associations. The division may combine figures and issues into
4741	one report covering both condominiums and cooperatives. The
4742	division shall develop a program to certify both volunteer and
4743	paid mediators to provide mediation of cooperative disputes. The
4744	division shall provide, upon request, a list of such mediators
4745	to any association, unit owner, or other participant in
4746	arbitration proceedings under s. 718.1255 requesting a copy of
4747	the list. The division shall include on the list of voluntary
4748	mediators only persons who have received at least 20 hours of
4749	training in mediation techniques or have mediated at least 20
4750	disputes. In order to become initially certified by the
4751	division, paid mediators must be certified by the Supreme Court
4752	to mediate court cases in county or circuit courts. However, the
4753	division may adopt, by rule, additional factors for the
4754	certification of paid mediators, which factors must be related
4755	to experience, education, or background. Any person initially
4756	certified as a paid mediator by the division must, in order to
4757	continue to be certified, comply with the factors or
4758	requirements imposed by rules adopted by the division.
4759	(2)(a)  Each cooperative association shall pay to the
4760	division, on or before January 1 of each year, an annual fee in
4761	the amount of $4 for each residential unit in cooperatives
4762	operated by the association. If the fee is not paid by March 1,
4763	then the association shall be assessed a penalty of 10 percent
4764	of the amount due, and the association shall not have the
4765	standing to maintain or defend any action in the courts of this
4766	state until the amount due, plus any penalty, is paid.
4767	(b)  All fees shall be deposited in the Division of Florida
4768	Condominiums, Timeshares, and Mobile Homes Trust Fund as
4769	provided by law.
4770	Section 30.  Section 719.5011, Florida Statutes, is created
4771	to read:
4772	719.5011  Ombudsman.--The Office of the Condominium
4773	Ombudsman, created in s. 718.5011, shall assist cooperative
4774	associations and cooperative shareholders and have the powers
4775	and duties related to cooperative associations and cooperative
4776	shareholders as if such associations and shareholders were
4777	condominium associations and condominium shareholders.
4778	Section 31.  Paragraph (b) of subsection (1) and paragraph
4779	(a) of subsection (2) of section 719.503, Florida Statutes, are
4780	amended to read:
4781	719.503  Disclosure prior to sale.--
4782	(1)  DEVELOPER DISCLOSURE.--
4783	(b)  Copies of documents to be furnished to prospective
4784	buyer or lessee.--Until such time as the developer has furnished
4785	the documents listed below to a person who has entered into a
4786	contract to purchase a unit or lease it for more than 5 years,
4787	the contract may be voided by that person, entitling the person
4788	to a refund of any deposit together with interest thereon as
4789	provided in s. 719.202. The contract may be terminated by
4790	written notice from the proposed buyer or lessee delivered to
4791	the developer within 15 days after the buyer or lessee receives
4792	all of the documents required by this section. The developer
4793	shall not close for 15 days following the execution of the
4794	agreement and delivery of the documents to the buyer as
4795	evidenced by a receipt for documents signed by the buyer unless
4796	the buyer is informed in the 15-day voidability period and
4797	agrees to close prior to the expiration of the 15 days. The
4798	developer shall retain in his or her records a separate signed
4799	agreement as proof of the buyer's agreement to close prior to
4800	the expiration of said voidability period. Said proof shall be
4801	retained for a period of 5 years after the date of the closing
4802	transaction. The documents to be delivered to the prospective
4803	buyer are the prospectus or disclosure statement with all
4804	exhibits, if the development is subject to the provisions of s.
4805	719.504, or, if not, then copies of the following which are
4806	applicable:
4807	1.  The question and answer sheet described in s. 719.504,
4808	and cooperative documents, or the proposed cooperative documents
4809	if the documents have not been recorded, which shall include the
4810	certificate of a surveyor approximately representing the
4811	locations required by s. 719.104.
4812	2.  The documents creating the association.
4813	3.  The bylaws.
4814	4.  The ground lease or other underlying lease of the
4815	cooperative.
4816	5.  The management contract, maintenance contract, and
4817	other contracts for management of the association and operation
4818	of the cooperative and facilities used by the shareholders unit
4819	owners having a service term in excess of 1 year, and any
4820	management contracts that are renewable.
4821	6.  The estimated operating budget for the cooperative and
4822	a schedule of expenses for each type of unit, including fees
4823	assessed to a shareholder who has exclusive use of limited
4824	common areas, where such costs are shared only by those entitled
4825	to use such limited common areas.
4826	7.  The lease of recreational and other facilities that
4827	will be used only by shareholders unit owners of the subject
4828	cooperative.
4829	8.  The lease of recreational and other common areas that
4830	will be used by shareholders unit owners in common with
4831	shareholders unit owners of other cooperatives.
4832	9.  The form of unit lease if the offer is of a leasehold.
4833	10.  Any declaration of servitude of properties serving the
4834	cooperative but not owned by shareholders unit owners or leased
4835	to them or the association.
4836	11.  If the development is to be built in phases or if the
4837	association is to manage more than one cooperative, a
4838	description of the plan of phase development or the arrangements
4839	for the association to manage two or more cooperatives.
4840	12.  If the cooperative is a conversion of existing
4841	improvements, the statements and disclosure required by s.
4842	719.616.
4843	13.  The form of agreement for sale or lease of units.
4844	14.  A copy of the floor plan of the unit and the plot plan
4845	showing the location of the residential buildings and the
4846	recreation and other common areas.
4847	15.  A copy of all covenants and restrictions which will
4848	affect the use of the property and which are not contained in
4849	the foregoing.
4850	16.  If the developer is required by state or local
4851	authorities to obtain acceptance or approval of any dock or
4852	marina facilities intended to serve the cooperative, a copy of
4853	any such acceptance or approval acquired by the time of filing
4854	with the division pursuant to s. 719.502(1) or a statement that
4855	such acceptance or approval has not been acquired or received.
4856	17.  Evidence demonstrating that the developer has an
4857	ownership, leasehold, or contractual interest in the land upon
4858	which the cooperative is to be developed.
4859	(2)  NONDEVELOPER DISCLOSURE.--
4860	(a)  Each shareholder unit owner who is not a developer as
4861	defined by this chapter must comply with the provisions of this
4862	subsection prior to the sale of his or her interest in the
4863	association. Each prospective purchaser who has entered into a
4864	contract for the purchase of an interest in a cooperative is
4865	entitled, at the seller's expense, to a current copy of the
4866	articles of incorporation of the association, the bylaws, and
4867	rules of the association, as well as a copy of the question and
4868	answer sheet as provided in s. 719.504. On and after July 1,
4869	2009, the prospective purchaser shall also be entitled to
4870	receive from the seller a copy of a governance form. Such form
4871	shall be provided by the division summarizing governance of
4872	cooperative associations. In addition to such other information
4873	as the division considers helpful to a prospective purchaser in
4874	understanding association governance, the governance form shall
4875	address the following subjects:
4876	1.  The role of the board in conducting the day-to-day
4877	affairs of the association on behalf of, and in the best
4878	interests of, the shareholders.
4879	2.  The board's responsibility to provide advance notice of
4880	board and shareholder meetings.
4881	3.  The rights of shareholders to attend and speak at board
4882	and shareholder meetings.
4883	4.  The responsibility of the board and shareholders with
4884	respect to maintenance of the cooperative property.
4885	5.  The responsibility of the board and shareholders to
4886	abide by the cooperative documents, this chapter, rules adopted
4887	by the division, and reasonable rules adopted by the board.
4888	6.  Shareholders' rights to inspect and copy association
4889	records and the limitations on such rights.
4890	7.  Remedies available to shareholders with respect to
4891	actions by the board which may be abusive or beyond the board's
4892	power and authority.
4893	8.  The right of the board to hire a property management
4894	firm, subject to its own primary responsibility for such
4895	management.
4896	9.  The responsibility of shareholders with regard to
4897	payment of regular or special assessments necessary for the
4898	operation of the property and the potential consequences of
4899	failure to pay such assessments.
4900	10.  The voting rights of shareholders.
4901	11.  Rights and obligations of the board in enforcement of
4902	rules in the cooperative documents and rules adopted by the
4903	board.
4904
4905	The governance form shall also include the following statement
4906	in conspicuous type: "This publication is intended as an
4907	informal educational overview of cooperative governance. In the
4908	event of a conflict, the provisions of chapter 719, Florida
4909	Statutes, rules adopted by the Division of Florida Condominiums,
4910	Timeshares, and Mobile Homes of the Department of Business and
4911	Professional Regulation, the provisions of the cooperative
4912	documents, and reasonable rules adopted by the cooperative
4913	association's board of directors prevail over the contents of
4914	this publication."
4915	Section 32.  Subsections (1) and (2) of section 720.3085,
4916	Florida Statutes, are amended to read:
4917	720.3085  Payment for assessments; lien claims.--
4918	(1)  When authorized by the governing documents, the
4919	association has a lien on each parcel to secure the payment of
4920	assessments and other amounts provided for by this section.
4921	Except as otherwise set forth in this section, the lien is
4922	effective from and shall relate back to the date on which the
4923	original declaration of the community was recorded. However, as
4924	to first mortgages of record, the lien is effective from and
4925	after recording of a claim of lien in the public records of the
4926	county in which the parcel is located. This subsection does not
4927	bestow upon any lien, mortgage, or certified judgment of record
4928	on July 1, 2008, including the lien for unpaid assessments
4929	created in this section, a priority that, by law, the lien,
4930	mortgage, or judgment did not have before July 1, 2008.
4931	(a)  To be valid, a claim of lien must state the
4932	description of the parcel, the name of the record owner, the
4933	name and address of the association, the assessment amount due,
4934	and the due date. The claim of lien shall secure all unpaid
4935	assessments that are due and that may accrue subsequent to the
4936	recording of the claim of lien and before entry of a certificate
4937	of title, as well as interest, late charges, and reasonable
4938	costs and attorney's fees incurred by the association incident
4939	to the collection process. The person making the payment is
4940	entitled to a satisfaction of the lien upon payment in full.
4941	(b)  By recording a notice in substantially the following
4942	form, a parcel owner or the parcel owner's agent or attorney may
4943	require the association to enforce a recorded claim of lien
4944	against his or her parcel:
4945
4946	NOTICE OF CONTEST OF LIEN
4947
4948	TO:   (Name and address of association)
4949
4950	You are notified that the undersigned contests the claim of lien
4951	filed by you on _____,   (year)  , and recorded in Official
4952	Records Book _____ at page _____, of the public records of _____
4953	County, Florida, and that the time within which you may file
4954	suit to enforce your lien is limited to 90 days following the
4955	date of service of this notice. Executed this _____ day of
4956	_____,   (year)  .
4957
4958	Signed:   (Owner or Attorney)
4959
4960	After the notice of a contest of lien has been recorded, the
4961	clerk of the circuit court shall mail a copy of the recorded
4962	notice to the association by certified mail, return receipt
4963	requested, at the address shown in the claim of lien or the most
4964	recent amendment to it and shall certify to the service on the
4965	face of the notice. Service is complete upon mailing. After
4966	service, the association has 90 days in which to file an action
4967	to enforce the lien and, if the action is not filed within the
4968	90-day period, the lien is void. However, the 90-day period
4969	shall be extended for any length of time that the association is
4970	prevented from filing its action because of an automatic stay
4971	resulting from the filing of a bankruptcy petition by the parcel
4972	owner or by any other person claiming an interest in the parcel.
4973	(c)  The association may bring an action in its name to
4974	foreclose a lien for assessments in the same manner in which a
4975	mortgage of real property is foreclosed and may also bring an
4976	action to recover a money judgment for the unpaid assessments
4977	without waiving any claim of lien. The association is entitled
4978	to recover its reasonable attorney's fees incurred in an action
4979	to foreclose a lien or an action to recover a money judgment for
4980	unpaid assessments.
4981	(d)  If the parcel owner remains in possession of the
4982	parcel after a foreclosure judgment has been entered, the court
4983	may require the parcel owner to pay a reasonable rent for the
4984	parcel. If the parcel is rented or leased during the pendency of
4985	the foreclosure action, the association is entitled to the
4986	appointment of a receiver to collect the rent. The expenses of
4987	the receiver must be paid by the party who does not prevail in
4988	the foreclosure action.
4989	(e)  The association may purchase the parcel at the
4990	foreclosure sale and hold, lease, mortgage, or convey the
4991	parcel.
4992	(2)(a)  A parcel owner, regardless of how his or her title
4993	to property has been acquired, including by purchase at a
4994	foreclosure sale or by deed in lieu of foreclosure, is liable
4995	for all assessments that come due while he or she is the parcel
4996	owner. The parcel owner's liability for assessments may not be
4997	avoided by waiver or suspension of the use or enjoyment of any
4998	common area or by abandonment of the parcel upon which the
4999	assessments are made.
5000	(b)  A parcel owner is jointly and severally liable with
5001	the previous parcel owner for all unpaid assessments that came
5002	due up to the time of transfer of title. This liability is
5003	without prejudice to any right the present parcel owner may have
5004	to recover any amounts paid by the present owner from the
5005	previous owner.
5006	(c)  Notwithstanding anything to the contrary contained in
5007	this section, the liability of a first mortgagee, or its
5008	successor or assignee as a subsequent holder of the first
5009	mortgage who acquires title to a parcel by foreclosure or by
5010	deed in lieu of foreclosure for the unpaid assessments that
5011	became due before the mortgagee's acquisition of title, shall be
5012	the lesser of:
5013	1.  The parcel's unpaid common expenses and regular
5014	periodic or special assessments that accrued or came due during
5015	the 24 12 months immediately preceding the acquisition of title
5016	and for which payment in full has not been received by the
5017	association; or
5018	2.  One-half of the parcel owner's unpaid common expenses
5019	and regular periodic assessments which accrued or came due from
5020	the filing of the foreclosure action through the sale of the
5021	unit, provided that the mortgagee timely paid in full the
5022	payment required by paragraph (d) and, at the same time,
5023	remitted to the association advanced common expenses and regular
5024	periodic assessments equal to one-half of the total unpaid
5025	common expenses and regular periodic assessments that came due
5026	in that time period. Any such advance shall be taxed as a cost
5027	in the foreclosure action, and the mortgagor shall be personally
5028	liable to the mortgagee for the value of the payment made to the
5029	association plus interest at the interest rate provided for in
5030	the promissory note for advances. One percent of the original
5031	mortgage debt.
5032
5033	The limitations on first mortgagee liability provided by this
5034	paragraph apply only if the first mortgagee filed suit against
5035	the parcel owner and initially joined the association as a
5036	defendant in the mortgagee foreclosure action. Joinder of the
5037	association is not required if, on the date the complaint is
5038	filed, the association was dissolved or did not maintain an
5039	office or agent for service of process at a location that was
5040	known to or reasonably discoverable by the mortgagee.
5041	(d)  A mortgagee who files a foreclosure case on a mortgage
5042	secured by a parcel in a homeowners' association shall pay to
5043	the association within 15 days after the filing of the action
5044	all of the parcel's then unpaid common expenses and regular
5045	periodic assessments which accrued or came due up to the date of
5046	the filing of the foreclosure action. The payment shall be taxed
5047	as a cost in the foreclosure action, and the mortgagor shall be
5048	personally liable to the mortgagee for the value of the payment
5049	made to the association plus interest at the interest rate
5050	provided for in the promissory note for advances. The court
5051	shall dismiss a foreclosure action on the association's motion
5052	to dismiss for failure to make such payment and shall award the
5053	association the costs and reasonable attorney's fees related to
5054	the motion.
5055	Section 33.  Subsection (3) of section 721.16, Florida
5056	Statutes, is amended to read:
5057	721.16  Liens for overdue assessments; liens for labor
5058	performed on, or materials furnished to, a timeshare unit.--
5059	(3)  The lien is effective from the date of recording a
5060	claim of lien in the public records of the county or counties in
5061	which the accommodations and facilities constituting the
5062	timeshare plan are located. The claim of lien shall state the
5063	name of the timeshare plan and identify the timeshare interest
5064	for which the lien is effective, state the name of the
5065	purchaser, state the assessment amount due, and state the due
5066	dates. Notwithstanding any provision of s. 718.116(5)(a) or s.
5067	719.108(5)(4) to the contrary, the lien is effective until
5068	satisfied or until 5 years have expired after the date the claim
5069	of lien is recorded unless, within that time, an action to
5070	enforce the lien is commenced pursuant to subsection (2). A
5071	claim of lien for assessments may include only assessments which
5072	are due when the claim is recorded. A claim of lien shall be
5073	signed and acknowledged by an officer or agent of the managing
5074	entity. Upon full payment, the person making the payment is
5075	entitled to receive a satisfaction of the lien.
5076	Section 34.  The Office of Program Policy Analysis and
5077	Government Accountability shall conduct a study to evaluate
5078	whether the state should regulate homeowners' associations in a
5079	manner similar to the regulation of condominiums and
5080	cooperatives. The study's scope shall include, but need not be
5081	limited to, estimating the number of homeowners' associations
5082	and the number of homes that are members of a homeowners'
5083	association. The office shall submit its report to the President
5084	of the Senate and the Speaker of the House of Representatives by
5085	January 1, 2010.
5086	Section 35.  This act shall take effect July 1, 2009.

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