Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 2604
       
       
       
       
       
       
                                Barcode 626528                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/14/2009           .                                
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       The Committee on Regulated Industries (Diaz de la Portilla)
       recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (d) of subsection (2) of section
    6  718.112, Florida Statutes, is amended to read:
    7         718.112 Bylaws.—
    8         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
    9  following and, if they do not do so, shall be deemed to include
   10  the following:
   11         (d) Unit owner meetings.—
   12         1. There shall be an annual meeting of the unit owners held
   13  at the location provided in the association bylaws and, if the
   14  bylaws are silent as to the location, the meeting shall be held
   15  within 45 miles of the condominium property. However, such
   16  distance requirement does not apply to an association governing
   17  a timeshare condominium. Unless the bylaws provide otherwise, a
   18  vacancy on the board caused by the expiration of a director’s
   19  term shall be filled by electing a new board member, and the
   20  election shall be by secret ballot; however, if the number of
   21  vacancies equals or exceeds the number of candidates, no
   22  election is required. The terms of all members of the board
   23  shall expire at the annual meeting and such board members may
   24  stand for reelection unless otherwise permitted by the bylaws.
   25  In the event that the bylaws permit staggered terms of no more
   26  than 2 years and upon approval of a majority of the total voting
   27  interests, the association board members may serve 2-year
   28  staggered terms. If no person is interested in or demonstrates
   29  an intention to run for the position of a board member whose
   30  term has expired according to the provisions of this
   31  subparagraph, such board member whose term has expired shall be
   32  automatically reappointed to the board of administration and
   33  need not stand for reelection. In a condominium association of
   34  more than 10 units, coowners of a unit may not serve as members
   35  of the board of directors at the same time. Any unit owner
   36  desiring to be a candidate for board membership shall comply
   37  with subparagraph 3. A person who has been suspended or removed
   38  by the division under this chapter, or who is delinquent in the
   39  payment of any fee or assessment as provided in paragraph (n),
   40  is not eligible for board membership. A person who has been
   41  convicted of any felony in this state or in a United States
   42  District or Territorial Court, or who has been convicted of any
   43  offense in another jurisdiction that would be considered a
   44  felony if committed in this state, is not eligible for board
   45  membership unless such felon’s civil rights have been restored
   46  for a period of no less than 5 years as of the date on which
   47  such person seeks election to the board. The validity of an
   48  action by the board is not affected if it is later determined
   49  that a member of the board is ineligible for board membership
   50  due to having been convicted of a felony.
   51         2. The bylaws shall provide the method of calling meetings
   52  of unit owners, including annual meetings. Written notice, which
   53  notice must include an agenda, shall be mailed, hand delivered,
   54  or electronically transmitted to each unit owner at least 14
   55  days prior to the annual meeting and shall be posted in a
   56  conspicuous place on the condominium property at least 14
   57  continuous days preceding the annual meeting. Upon notice to the
   58  unit owners, the board shall by duly adopted rule designate a
   59  specific location on the condominium property or association
   60  property upon which all notices of unit owner meetings shall be
   61  posted; however, if there is no condominium property or
   62  association property upon which notices can be posted, this
   63  requirement does not apply. In lieu of or in addition to the
   64  physical posting of notice of any meeting of the unit owners on
   65  the condominium property, the association may, by reasonable
   66  rule, adopt a procedure for conspicuously posting and repeatedly
   67  broadcasting the notice and the agenda on a closed-circuit cable
   68  television system serving the condominium association. However,
   69  if broadcast notice is used in lieu of a notice posted
   70  physically on the condominium property, the notice and agenda
   71  must be broadcast at least four times every broadcast hour of
   72  each day that a posted notice is otherwise required under this
   73  section. When broadcast notice is provided, the notice and
   74  agenda must be broadcast in a manner and for a sufficient
   75  continuous length of time so as to allow an average reader to
   76  observe the notice and read and comprehend the entire content of
   77  the notice and the agenda. Unless a unit owner waives in writing
   78  the right to receive notice of the annual meeting, such notice
   79  shall be hand delivered, mailed, or electronically transmitted
   80  to each unit owner. Notice for meetings and notice for all other
   81  purposes shall be mailed to each unit owner at the address last
   82  furnished to the association by the unit owner, or hand
   83  delivered to each unit owner. However, if a unit is owned by
   84  more than one person, the association shall provide notice, for
   85  meetings and all other purposes, to that one address which the
   86  developer initially identifies for that purpose and thereafter
   87  as one or more of the owners of the unit shall so advise the
   88  association in writing, or if no address is given or the owners
   89  of the unit do not agree, to the address provided on the deed of
   90  record. An officer of the association, or the manager or other
   91  person providing notice of the association meeting, shall
   92  provide an affidavit or United States Postal Service certificate
   93  of mailing, to be included in the official records of the
   94  association affirming that the notice was mailed or hand
   95  delivered, in accordance with this provision.
   96         3. The members of the board shall be elected by written
   97  ballot or voting machine. Proxies shall in no event be used in
   98  electing the board, either in general elections or elections to
   99  fill vacancies caused by recall, resignation, or otherwise,
  100  unless otherwise provided in this chapter. Not less than 60 days
  101  before a scheduled election, the association shall mail,
  102  deliver, or electronically transmit, whether by separate
  103  association mailing or included in another association mailing,
  104  delivery, or transmission, including regularly published
  105  newsletters, to each unit owner entitled to a vote, a first
  106  notice of the date of the election along with a certification
  107  form provided by the division attesting that he or she has read
  108  and understands, to the best of his or her ability, the
  109  governing documents of the association and the provisions of
  110  this chapter and any applicable rules. Any unit owner or other
  111  eligible person desiring to be a candidate for the board must
  112  give written notice to the association not less than 40 days
  113  before a scheduled election. Together with the written notice
  114  and agenda as set forth in subparagraph 2., the association
  115  shall mail, deliver, or electronically transmit a second notice
  116  of the election to all unit owners entitled to vote therein,
  117  together with a ballot which shall list all candidates. Upon
  118  request of a candidate, the association shall include an
  119  information sheet, no larger than 8 1/2 inches by 11 inches,
  120  which must be furnished by the candidate not less than 35 days
  121  before the election, along with the signed certification form
  122  provided for in this subparagraph, to be included with the
  123  mailing, delivery, or transmission of the ballot, with the costs
  124  of mailing, delivery, or electronic transmission and copying to
  125  be borne by the association. The association is not liable for
  126  the contents of the information sheets prepared by the
  127  candidates. In order to reduce costs, the association may print
  128  or duplicate the information sheets on both sides of the paper.
  129  The division shall by rule establish voting procedures
  130  consistent with the provisions contained herein, including rules
  131  establishing procedures for giving notice by electronic
  132  transmission and rules providing for the secrecy of ballots.
  133  Elections shall be decided by a plurality of those ballots cast.
  134  There shall be no quorum requirement; however, at least 20
  135  percent of the eligible voters must cast a ballot in order to
  136  have a valid election of members of the board. No unit owner
  137  shall permit any other person to vote his or her ballot, and any
  138  such ballots improperly cast shall be deemed invalid, provided
  139  any unit owner who violates this provision may be fined by the
  140  association in accordance with s. 718.303. A unit owner who
  141  needs assistance in casting the ballot for the reasons stated in
  142  s. 101.051 may obtain assistance in casting the ballot. The
  143  regular election shall occur on the date of the annual meeting.
  144  The provisions of this subparagraph shall not apply to timeshare
  145  condominium associations. Notwithstanding the provisions of this
  146  subparagraph, an election is not required unless more candidates
  147  file notices of intent to run or are nominated than board
  148  vacancies exist.
  149         4. Any approval by unit owners called for by this chapter
  150  or the applicable declaration or bylaws, including, but not
  151  limited to, the approval requirement in s. 718.111(8), shall be
  152  made at a duly noticed meeting of unit owners and shall be
  153  subject to all requirements of this chapter or the applicable
  154  condominium documents relating to unit owner decisionmaking,
  155  except that unit owners may take action by written agreement,
  156  without meetings, on matters for which action by written
  157  agreement without meetings is expressly allowed by the
  158  applicable bylaws or declaration or any statute that provides
  159  for such action.
  160         5. Unit owners may waive notice of specific meetings if
  161  allowed by the applicable bylaws or declaration or any statute.
  162  If authorized by the bylaws, notice of meetings of the board of
  163  administration, unit owner meetings, except unit owner meetings
  164  called to recall board members under paragraph (j), and
  165  committee meetings may be given by electronic transmission to
  166  unit owners who consent to receive notice by electronic
  167  transmission.
  168         6. Unit owners shall have the right to participate in
  169  meetings of unit owners with reference to all designated agenda
  170  items. However, the association may adopt reasonable rules
  171  governing the frequency, duration, and manner of unit owner
  172  participation.
  173         7. Any unit owner may tape record or videotape a meeting of
  174  the unit owners subject to reasonable rules adopted by the
  175  division.
  176         8. Unless otherwise provided in the bylaws, any vacancy
  177  occurring on the board before the expiration of a term may be
  178  filled by the affirmative vote of the majority of the remaining
  179  directors, even if the remaining directors constitute less than
  180  a quorum, or by the sole remaining director. In the alternative,
  181  a board may hold an election to fill the vacancy, in which case
  182  the election procedures must conform to the requirements of
  183  subparagraph 3. unless the association governs 10 units or less
  184  and has opted out of the statutory election process, in which
  185  case the bylaws of the association control. Unless otherwise
  186  provided in the bylaws, a board member appointed or elected
  187  under this section shall fill the vacancy for the unexpired term
  188  of the seat being filled. Filling vacancies created by recall is
  189  governed by paragraph (j) and rules adopted by the division.
  190         9.Within 30 days after being elected to the board of
  191  directors, a new director shall certify in writing to the
  192  secretary of the association that he or she has read the
  193  association’s declarations of covenants and restrictions,
  194  articles of incorporation, bylaws, and current written policies,
  195  that he or she will work to uphold such documents and policies
  196  to the best of his or her ability, and that he or she will
  197  faithfully discharge his or her fiduciary responsibility to the
  198  association’s members. Failure to timely file the statement
  199  automatically disqualifies the director from service on the
  200  association’s board of directors. The secretary shall cause the
  201  association to retain a director’s certification for inspection
  202  by the members for 5 years after a director’s election. Failure
  203  to have such certification on file does not affect the validity
  204  of any appropriate action.
  205  
  206  Notwithstanding subparagraphs (b)2. and (d)3., an association of
  207  10 or fewer units may, by the affirmative vote of a majority of
  208  the total voting interests, provide for different voting and
  209  election procedures in its bylaws, which vote may be by a proxy
  210  specifically delineating the different voting and election
  211  procedures. The different voting and election procedures may
  212  provide for elections to be conducted by limited or general
  213  proxy.
  214         Section 2. Paragraph (b) of subsection (2), paragraphs (a)
  215  and (c) of subsection (5), paragraphs (b), (c), (d), (f), and
  216  (g) of subsection (6), and paragraph (d) of subsection (10) of
  217  section 720.303, Florida Statutes, are amended, and subsection
  218  (12) is added to that section, to read:
  219         720.303 Association powers and duties; meetings of board;
  220  official records; budgets; financial reporting; association
  221  funds; recalls.—
  222         (2) BOARD MEETINGS.—
  223         (b) Members have the right to attend all meetings of the
  224  board and to speak on any matter placed on the agenda by
  225  petition of the voting interests for at least 3 minutes. The
  226  association may adopt written reasonable rules expanding the
  227  right of members to speak and governing the frequency, duration,
  228  and other manner of member statements, which rules must be
  229  consistent with this paragraph and may include a sign-up sheet
  230  for members wishing to speak. Notwithstanding any other law, the
  231  requirement that board meetings and committee meetings be open
  232  to the members is inapplicable to meetings between the board or
  233  a committee and the association’s attorney to discuss proposed
  234  or pending litigation, or with respect to meetings of the board
  235  held for the purpose of discussing personnel matters are not
  236  required to be open to the members.
  237         (5) INSPECTION AND COPYING OF RECORDS.—The official records
  238  shall be maintained within the state and must be open to
  239  inspection and available for photocopying by members or their
  240  authorized agents at reasonable times and places within 10
  241  business days after receipt of a written request for access.
  242  This subsection may be complied with by having a copy of the
  243  official records available for inspection or copying in the
  244  community. If the association has a photocopy machine available
  245  where the records are maintained, it must provide parcel owners
  246  with copies on request during the inspection if the entire
  247  request is limited to no more than 25 pages.
  248         (a) The failure of an association to provide access to the
  249  records within 10 business days after receipt of a written
  250  request submitted by certified mail, return receipt requested,
  251  creates a rebuttable presumption that the association willfully
  252  failed to comply with this subsection.
  253         (c) The association may adopt reasonable written rules
  254  governing the frequency, time, location, notice, records to be
  255  inspected, and manner of inspections, but may not require impose
  256  a requirement that a parcel owner to demonstrate any proper
  257  purpose for the inspection, state any reason for the inspection,
  258  or limit a parcel owner’s right to inspect records to less than
  259  one 8-hour business day per month. The association may impose
  260  fees to cover the costs of providing copies of the official
  261  records, including, without limitation, the costs of copying.
  262  The association may charge up to 50 cents per page for copies
  263  made on the association’s photocopier. If the association does
  264  not have a photocopy machine available where the records are
  265  kept, or if the records requested to be copied exceed 25 pages
  266  in length, the association may have copies made by an outside
  267  vendor or association management company personnel and may
  268  charge the actual cost of copying, including any reasonable
  269  costs involving personnel fees and charges at an hourly rate for
  270  employee time to cover administrative costs to the association.
  271  The association shall maintain an adequate number of copies of
  272  the recorded governing documents, to ensure their availability
  273  to members and prospective members. Notwithstanding the
  274  provisions of this paragraph, the following records are shall
  275  not be accessible to members or parcel owners:
  276         1. Any record protected by the lawyer-client privilege as
  277  described in s. 90.502 and any record protected by the work
  278  product privilege, including, but not limited to, any record
  279  prepared by an association attorney or prepared at the
  280  attorney’s express direction which reflects a mental impression,
  281  conclusion, litigation strategy, or legal theory of the attorney
  282  or the association and which was prepared exclusively for civil
  283  or criminal litigation or for adversarial administrative
  284  proceedings or which was prepared in anticipation of imminent
  285  civil or criminal litigation or imminent adversarial
  286  administrative proceedings until the conclusion of the
  287  litigation or adversarial administrative proceedings.
  288         2. Information obtained by an association in connection
  289  with the approval of the lease, sale, or other transfer of a
  290  parcel.
  291         3. Disciplinary, health, insurance, and personnel records,
  292  including payroll records, of the association’s employees.
  293         4. Medical records of parcel owners or community residents.
  294         (6) BUDGETS.—
  295         (b) In addition to annual operating expenses, the budget
  296  may include reserve accounts for capital expenditures and
  297  deferred maintenance for which the association is responsible.
  298  If reserve accounts are not established pursuant to paragraph
  299  (d), funding of such reserves shall be limited to the extent
  300  that the governing documents do not limit increases in
  301  assessments, including reserves. If the budget of the
  302  association includes reserve accounts established pursuant to
  303  paragraph (d), such reserves shall be determined, maintained,
  304  and waived in the manner provided in this subsection. Once an
  305  association provides for reserve accounts pursuant to paragraph
  306  (d) in the budget, the association shall thereafter determine,
  307  maintain, and waive reserves in compliance with this subsection.
  308  The provisions of this section do not preclude the termination
  309  of a reserve account established pursuant to this paragraph upon
  310  approval of a majority of the voting interests of the
  311  association. Upon such approval, the terminating reserve account
  312  shall be removed from the budget.
  313         (c)1. If the budget of the association does not provide for
  314  reserve accounts pursuant to paragraph (d) governed by this
  315  subsection and the association is responsible for the repair and
  316  maintenance of capital improvements that may result in a special
  317  assessment if reserves are not provided, each financial report
  318  for the preceding fiscal year required by subsection (7) shall
  319  contain the following statement in conspicuous type: THE BUDGET
  320  OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
  321  CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
  322  SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
  323  ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
  324  FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
  325  MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
  326  VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
  327         2.If the budget of the association does provide for
  328  funding accounts for deferred expenditures, including, but not
  329  limited to, funds for capital expenditures and deferred
  330  maintenance, but such accounts are not created or established
  331  pursuant to paragraph (d), each financial report for the
  332  preceding fiscal year required under subsection (7) must also
  333  contain the following statement in conspicuous type: THE BUDGET
  334  OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
  335  EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
  336  DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
  337  OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
  338  PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
  339  FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
  340  RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
  341  ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
  342         (d) An association shall be deemed to have provided for
  343  reserve accounts if when reserve accounts have been initially
  344  established by the developer or if when the membership of the
  345  association affirmatively elects to provide for reserves. If
  346  reserve accounts are not initially provided for by the
  347  developer, the membership of the association may elect to do so
  348  upon the affirmative approval of not less than a majority of the
  349  total voting interests of the association. Such approval may be
  350  obtained attained by vote of the members at a duly called
  351  meeting of the membership or by the upon a written consent of
  352  executed by not less than a majority of the total voting
  353  interests in the community. The approval action of the
  354  membership shall state that reserve accounts shall be provided
  355  for in the budget and shall designate the components for which
  356  the reserve accounts are to be established. Upon approval by the
  357  membership, the board of directors shall include provide for the
  358  required reserve accounts for inclusion in the budget in the
  359  next fiscal year following the approval and in each year
  360  thereafter. Once established as provided in this subsection, the
  361  reserve accounts shall be funded or maintained or shall have
  362  their funding waived in the manner provided in paragraph (f).
  363         (f) After one or more Once a reserve account or reserve
  364  accounts are established, the membership of the association,
  365  upon a majority vote at a meeting at which a quorum is present,
  366  may provide for no reserves or less reserves than required by
  367  this section. If a meeting of the unit owners has been called to
  368  determine whether to waive or reduce the funding of reserves and
  369  no such result is achieved or a quorum is not present, the
  370  reserves as included in the budget shall go into effect. After
  371  the turnover, the developer may vote its voting interest to
  372  waive or reduce the funding of reserves. Any vote taken pursuant
  373  to this subsection to waive or reduce reserves is shall be
  374  applicable only to one budget year.
  375         (g) Funding formulas for reserves authorized by this
  376  section shall be based on either a separate analysis of each of
  377  the required assets or a pooled analysis of two or more of the
  378  required assets.
  379         1. If the association maintains separate reserve accounts
  380  for each of the required assets, the amount of the contribution
  381  to each reserve account is shall be the sum of the following two
  382  calculations:
  383         a. The total amount necessary, if any, to bring a negative
  384  component balance to zero.
  385         b. The total estimated deferred maintenance expense or
  386  estimated replacement cost of the reserve component less the
  387  estimated balance of the reserve component as of the beginning
  388  of the period for which the budget will be in effect. The
  389  remainder, if greater than zero, shall be divided by the
  390  estimated remaining useful life of the component.
  391  
  392         The formula may be adjusted each year for changes in
  393  estimates and deferred maintenance performed during the year and
  394  may include factors such as inflation and earnings on invested
  395  funds.
  396         2. If the association maintains a pooled account of two or
  397  more of the required reserve assets, the amount of the
  398  contribution to the pooled reserve account as disclosed on the
  399  proposed budget may shall not be less than that required to
  400  ensure that the balance on hand at the beginning of the period
  401  for which the budget will go into effect plus the projected
  402  annual cash inflows over the remaining estimated useful life of
  403  all of the assets that make up the reserve pool are equal to or
  404  greater than the projected annual cash outflows over the
  405  remaining estimated useful lives of all of the assets that make
  406  up the reserve pool, based on the current reserve analysis. The
  407  projected annual cash inflows may include estimated earnings
  408  from investment of principal and accounts receivable minus the
  409  allowance for doubtful accounts. The reserve funding formula may
  410  shall not include any type of balloon payments.
  411         (10) RECALL OF DIRECTORS.—
  412         (d) If the board determines not to certify the written
  413  agreement or written ballots to recall a director or directors
  414  of the board or does not certify the recall by a vote at a
  415  meeting, the board shall, within 5 full business days after the
  416  meeting, initiate file with the department a petition for
  417  binding arbitration pursuant to the applicable procedures in s.
  418  720.507 ss. 718.112(2)(j) and 718.1255 and the rules adopted
  419  thereunder. For the purposes of this section, the members who
  420  voted at the meeting or who executed the agreement in writing
  421  shall constitute one party under the petition for arbitration.
  422  If the arbitrator certifies the recall as to any director or
  423  directors of the board, the recall will be effective upon
  424  mailing of the final order of arbitration to the association.
  425  The director or directors so recalled shall deliver to the board
  426  any and all records of the association in their possession
  427  within 5 full business days after the effective date of the
  428  recall.
  429         (12)COMPENSATION PROHIBITED.A director, officer, or
  430  committee member of the association may not receive directly or
  431  indirectly any salary or compensation from the association for
  432  the performance of duties as a director, officer, or committee
  433  member and may not in any other way benefit financially from
  434  service to the association. This subsection does not preclude:
  435         (a)Participation by such person in a financial benefit
  436  accruing to all or a significant number of members as a result
  437  of actions lawfully taken by the board or a committee of which
  438  he or she is a member, including, but not limited to, routine
  439  maintenance, repair, or replacement of community assets.
  440         (b)Reimbursement for out-of-pocket expenses incurred by
  441  such person on behalf of the association, subject to approval in
  442  accordance with procedures established by the association’s
  443  governing documents or, in the absence of such procedures, in
  444  accordance with an approval process established by the board.
  445         (c)Any recovery of insurance proceeds derived from a
  446  policy of insurance maintained by the association for the
  447  benefit of its members.
  448         (d)Any fee or compensation authorized in the governing
  449  documents.
  450         (e)Any fee or compensation authorized in advance by a vote
  451  of a majority of the voting interests voting in person or by
  452  proxy at a meeting of the members.
  453         Section 3. Subsection (2) of section 720.305, Florida
  454  Statutes, is amended to read:
  455         720.305 Obligations of members; remedies at law or in
  456  equity; levy of fines and suspension of use rights.—
  457         (2) If the governing documents so provide, an association
  458  may suspend, for a reasonable period of time, the rights of a
  459  member or a member’s tenants, guests, or invitees, or both, to
  460  use common areas and facilities and may levy reasonable fines of
  461  up to, not to exceed $100 per violation, against any member or
  462  any tenant, guest, or invitee. A fine may be levied on the basis
  463  of each day of a continuing violation, with a single notice and
  464  opportunity for hearing, except that a no such fine may not
  465  shall exceed $1,000 in the aggregate unless otherwise provided
  466  in the governing documents. A fine of less than $1,000 may shall
  467  not become a lien against a parcel. In any action to recover a
  468  fine, the prevailing party is entitled to collect its reasonable
  469  attorney’s fees and costs from the nonprevailing party as
  470  determined by the court.
  471         (a) A fine or suspension may not be imposed without notice
  472  of at least 14 days’ notice days to the person sought to be
  473  fined or suspended and an opportunity for a hearing before a
  474  committee of at least three members appointed by the board who
  475  are not officers, directors, or employees of the association, or
  476  the spouse, parent, child, brother, or sister of an officer,
  477  director, or employee. If the committee, by majority vote, does
  478  not approve a proposed fine or suspension, it may not be
  479  imposed.
  480         (b) The requirements of this subsection do not apply to the
  481  imposition of suspensions or fines upon any member because of
  482  the failure of the member to pay assessments or other charges
  483  when due if such action is authorized by the governing
  484  documents.
  485         (c) Suspension of common-area-use rights does shall not
  486  impair the right of an owner or tenant of a parcel to have
  487  vehicular and pedestrian ingress to and egress from the parcel,
  488  including, but not limited to, the right to park.
  489         Section 4. Subsections (8) and (9) of section 720.306,
  490  Florida Statutes, are amended to read:
  491         720.306 Meetings of members; voting and election
  492  procedures; amendments.—
  493         (8) PROXY VOTING.—The members have the right, unless
  494  otherwise provided in this subsection or in the governing
  495  documents, to vote in person or by proxy.
  496         (a) To be valid, a proxy must be dated, must state the
  497  date, time, and place of the meeting for which it was given, and
  498  must be signed by the authorized person who executed the proxy.
  499  A proxy is effective only for the specific meeting for which it
  500  was originally given, as the meeting may lawfully be adjourned
  501  and reconvened from time to time, and automatically expires 90
  502  days after the date of the meeting for which it was originally
  503  given. A proxy is revocable at any time at the pleasure of the
  504  person who executes it. If the proxy form expressly so provides,
  505  any proxy holder may appoint, in writing, a substitute to act in
  506  his or her place.
  507         (b)If the governing documents permit voting by secret
  508  ballot by members who are not in attendance at a meeting of the
  509  members for the election of directors, such ballots shall be
  510  placed in an inner envelope with no identifying markings and
  511  mailed or delivered to the association in an outer envelope
  512  bearing identifying information reflecting the name of the
  513  member, the lot or parcel for which the vote is being cast, and
  514  the signature of the lot or parcel owner casting that ballot. If
  515  the eligibility of the member to vote is confirmed and no other
  516  ballot has been submitted for that lot or parcel, the inner
  517  envelope shall be removed from the outer envelope bearing the
  518  identification information, placed with the ballots which were
  519  personally cast, and opened when the ballots are counted. If
  520  more than one ballot is submitted for a lot or parcel, the
  521  ballots for that lot or parcel shall be disqualified. Any vote
  522  by ballot received after the closing of the balloting may not be
  523  considered.
  524         (9) ELECTIONS; BOARD MEMBER CERTIFICATION.—
  525         (a) Elections of directors must be conducted in accordance
  526  with the procedures set forth in the governing documents of the
  527  association. All members of the association are shall be
  528  eligible to serve on the board of directors, and a member may
  529  nominate himself or herself as a candidate for the board at a
  530  meeting where the election is to be held or, if the election
  531  process allows voting by absentee ballot, in advance of the
  532  balloting. Except as otherwise provided in the governing
  533  documents, boards of directors must be elected by a plurality of
  534  the votes cast by eligible voters. Any election dispute between
  535  a member and an association must be submitted to mandatory
  536  binding arbitration with the division. Such proceedings shall be
  537  conducted in the manner provided by s. 720.507 s. 718.1255 and
  538  the procedural rules adopted by the division.
  539         (b)Within 30 days after being elected to the board of
  540  directors, a new director shall certify in writing to the
  541  secretary of the association that he or she has read the
  542  association’s declarations of covenants and restrictions,
  543  articles of incorporation, bylaws, and current written policies
  544  and that he or she will work to uphold each to the best of his
  545  or her ability and will faithfully discharge his or her
  546  fiduciary responsibility to the association’s members. Failure
  547  to timely file such statement shall automatically disqualify the
  548  director from service on the association’s board of directors.
  549  The secretary shall cause the association to retain a director’s
  550  certification for inspection by the members for 5 years after a
  551  director’s election. Failure to have such certification on file
  552  does not affect the validity of any appropriate action.
  553         Section 5. Paragraph (a) of subsection (1) of section
  554  720.401, Florida Statutes, is amended to read:
  555         720.401 Prospective purchasers subject to association
  556  membership requirement; disclosure required; covenants;
  557  assessments; contract cancellation.—
  558         (1)(a) A prospective parcel owner in a community must be
  559  presented a disclosure summary before executing the contract for
  560  sale. The disclosure summary must be in a form substantially
  561  similar to the following form:
  562  
  563                         DISCLOSURE SUMMARY                        
  564                                 FOR                               
  565                         (NAME OF COMMUNITY)                       
  566  
  567         1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
  568  BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION.
  569         2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
  570  COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
  571  COMMUNITY.
  572         3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
  573  ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
  574  APPLICABLE, THE CURRENT AMOUNT IS $.... PER..... YOU WILL ALSO
  575  BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
  576  ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
  577  IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER.....
  578         4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
  579  RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
  580  ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
  581         5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
  582  LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION MAY COULD RESULT
  583  IN A LIEN ON YOUR PROPERTY.
  584         6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
  585  FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
  586  OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF
  587  APPLICABLE, THE CURRENT AMOUNT IS $.... PER.....
  588         7. IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
  589  DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
  590  RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
  591  MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
  592         8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
  593  ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
  594  SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
  595  DOCUMENTS BEFORE PURCHASING PROPERTY.
  596         9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
  597  CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
  598  PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
  599  OBTAINED FROM THE DEVELOPER.
  600         10.THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES OR
  601  FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
  602  PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
  603  INFRASTRUCTURE OR OTHER IMPROVEMENTS.
  604         11.YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
  605  OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
  606  UP TO THE TIME OF TRANSFER OF TITLE.
  607  
  608         DATE: PURCHASER:
  609         PURCHASER:
  610  
  611  The disclosure must be supplied by the developer, or by the
  612  parcel owner if the sale is by an owner that is not the
  613  developer. Any contract or agreement for sale shall refer to and
  614  incorporate the disclosure summary and shall include, in
  615  prominent language, a statement that the potential buyer should
  616  not execute the contract or agreement until he or she has they
  617  have received and read the disclosure summary required by this
  618  section.
  619         Section 6. Paragraph (d) of subsection (1) of section
  620  34.01, Florida Statutes, is amended to read:
  621         34.01 Jurisdiction of county court.—
  622         (1) County courts shall have original jurisdiction:
  623         (d) Of disputes occurring in the homeowners’ associations
  624  as described in part IV of chapter 720 s. 720.311(2)(a), which
  625  shall be concurrent with jurisdiction of the circuit courts.
  626         Section 7. Subsection (2) of section 720.302, Florida
  627  Statutes, is amended to read:
  628         720.302 Purposes, scope, and application.—
  629         (2) The Legislature recognizes that it is not in the best
  630  interest of homeowners’ associations or the individual
  631  association members thereof to create or impose a bureau or
  632  other agency of state government to regulate the affairs of
  633  homeowners’ associations. However, in accordance with part IV of
  634  this chapter s. 720.311, the Legislature finds that homeowners’
  635  associations and their individual members will benefit from an
  636  expedited alternative process for resolution of election and
  637  recall disputes and presuit mediation of other disputes
  638  involving covenant enforcement in homeowner’s associations and
  639  deed-restricted communities using the procedures provided in
  640  part IV of and authorizes the department to hear, administer,
  641  and determine these disputes as more fully set forth in this
  642  chapter. Further, the Legislature recognizes that certain
  643  contract rights have been created for the benefit of homeowners’
  644  associations and members thereof as well as deed-restricted
  645  communities before the effective date of this act and that part
  646  IV of this chapter is ss. 720.301-720.407 are not intended to
  647  impair such contract rights, including, but not limited to, the
  648  rights of the developer to complete the community as initially
  649  contemplated.
  650         Section 8. Section 720.311, Florida Statutes, is repealed.
  651         Section 9. Part IV of chapter 720, Florida Statutes, to be
  652  entitled “Dispute Resolution,” consisting of sections 720.501,
  653  720.502, 720.503, 720.504, 720.505, 720.506, 720.507, 720.508,
  654  720.509, and 720.510, is created to read:
  655         720.501Short title.—This part may be cited as the “Home
  656  Court Advantage Dispute Resolution Act.”
  657         720.502Legislative findings.—The Legislature finds that
  658  alternative dispute resolution has made progress in reducing
  659  court dockets and trials and in offering a more efficient, cost
  660  effective option to litigation.
  661         720.503Applicability of this part.—
  662         (1)Unless otherwise provided in this part, before a
  663  dispute described in this part between a homeowners’ association
  664  and a parcel owner or owners, or a dispute between parcel owners
  665  within the same homeowners’ association, may be filed in court,
  666  the dispute is subject to presuit mediation pursuant to s.
  667  720.505 or presuit arbitration pursuant to s. 720.507, at the
  668  option of the aggrieved party who initiates the first formal
  669  action of alternative dispute resolution under this part. The
  670  parties may mutually agree to participate in both presuit
  671  mediation and presuit arbitration before the suit is filed by
  672  either party.
  673         (2)Unless otherwise provided in this part, the mediation
  674  and arbitration provisions of this part are limited to disputes
  675  between an association and a parcel owner or owners or between
  676  parcel owners regarding the use of or changes to the parcel or
  677  the common areas under the governing documents and other
  678  disputes involving violations of the recorded declaration of
  679  covenants or other governing documents, disputes arising
  680  concerning the enforcement of the governing documents or any
  681  amendments thereto, and disputes involving access to the
  682  official records of the association. A dispute concerning a
  683  title to any parcel or common area, the interpretation or
  684  enforcement of any warranty, the levy of a fee or assessment,
  685  the collection of an assessment levied against a party, the
  686  eviction or other removal of a tenant from a parcel, alleged
  687  breaches of fiduciary duty by one or more directors, or any
  688  action to collect mortgage indebtedness or to foreclose a
  689  mortgage is not subject to the provisions of this part.
  690         (3)All disputes arising after the effective date of this
  691  part involving the election of the board of directors for an
  692  association or the recall of any member of the board or officer
  693  of the association are not eligible for presuit mediation under
  694  s. 720.505, but are subject to binding presuit arbitration under
  695  s. 720.507.
  696         (4)In any dispute subject to presuit mediation or presuit
  697  arbitration under this part for which emergency relief is
  698  required, a motion for temporary injunctive relief may be filed
  699  with the court without first complying with the presuit
  700  mediation or presuit arbitration requirements of this part.
  701  After any issues regarding emergency or temporary relief are
  702  resolved, the court may refer the parties to a mediation program
  703  administered by the courts or require mediation or arbitration
  704  under this part.
  705         (5)The mailing of a statutory notice of presuit mediation
  706  or presuit arbitration as provided in this part shall toll the
  707  applicable statute of limitations during the pendency of the
  708  mediation or arbitration and for a period of 30 days following
  709  the conclusion of either proceeding. The 30-day period starts
  710  upon the filing of the mediator’s notice of impasse or the
  711  arbitrator’s written arbitration award. If the parties mutually
  712  agree to participate in both presuit mediation and presuit
  713  arbitration under this part, the tolling of the applicable
  714  statute of limitations for each such alternative dispute
  715  resolution proceeding shall be consecutive.
  716         720.504Notice of dispute.—Before giving the statutory
  717  notice to proceed under presuit mediation or presuit arbitration
  718  under this part, the aggrieved association or parcel owner shall
  719  first provide written notice of the dispute to the responding
  720  party in the manner provided by this section.
  721         (1)The notice of dispute shall be delivered to the
  722  responding party by certified mail, return receipt requested, or
  723  shall be hand delivered, and the person making delivery shall
  724  file with the notice of mediation either the proof of receipt of
  725  mailing or an affidavit stating the date and time of the
  726  delivery of the notice of dispute. If the notice is delivered by
  727  certified mail, return receipt requested, and the responding
  728  party fails or refuses to accept delivery, notice shall be
  729  considered properly delivered for purposes of this section on
  730  the date of the first attempted delivery.
  731         (2)The notice of dispute must state with specificity the
  732  nature of the dispute, including the date, time, and location of
  733  each event that is the subject of the dispute and the action
  734  requested to resolve the dispute. The notice must also include
  735  the text of any provision in the governing documents, including
  736  the rules and regulations, of the association which form the
  737  basis of the dispute.
  738         (3)Unless the parties otherwise agree in writing to a
  739  longer time period, the party receiving the notice of dispute
  740  has 10 days following the date of receipt of notice to resolve
  741  the dispute. If the alleged dispute has not been resolved within
  742  the 10-day period, the aggrieved party may proceed under this
  743  part at any time thereafter within the applicable statute of
  744  limitations.
  745         (4)A copy of the notice and the text of the provision in
  746  the governing documents, or the rules and regulations, of the
  747  association which are the basis of the dispute, along with proof
  748  of service of the notice of dispute and a copy of any written
  749  responses received from the responding party, shall be included
  750  as an exhibit to any demand for mediation or arbitration under
  751  this part.
  752         720.505Presuit mediation.—
  753         (1)Disputes between an association and a parcel owner or
  754  owners and between parcel owners must be submitted to presuit
  755  mediation before the dispute may be filed in court; or, at the
  756  election of the party initiating the presuit procedures, such
  757  dispute may be submitted to presuit arbitration pursuant to s.
  758  720.507 before the dispute may be filed in court. An aggrieved
  759  party who elects to use the presuit mediation procedure under
  760  this section shall serve on the responding party a written
  761  notice of presuit mediation in substantially the following form:
  762  
  763                STATUTORY NOTICE OF PRESUIT MEDIATION              
  764  
  765         THE ALLEGED AGGRIEVED PARTY, ____________________, HEREBY
  766  DEMANDS THAT ____________________, AS THE RESPONDING PARTY,
  767  ENGAGE IN MANDATORY PRESUIT MEDIATION IN CONNECTION WITH THE
  768  FOLLOWING DISPUTES WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT
  769  ARE SUBJECT TO PRESUIT MEDIATION:
  770  
  771         ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION WHICH
  772  DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO BE MEDIATED AND
  773  THE AUTHORITY SUPPORTING A FINDING OF A VIOLATION AS TO EACH
  774  DISPUTE, INCLUDING, BUT NOT LIMITED TO, THE APPLICABLE
  775  PROVISIONS OF THE GOVERNING DOCUMENTS OF THE ASSOCIATION
  776  BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE PARTIES, AND A COPY
  777  OF THE NOTICE YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
  778  RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
  779  
  780         PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES, THIS
  781  DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT MEDIATION IS
  782  REQUIRED BEFORE A LAWSUIT CAN BE FILED CONCERNING THE DISPUTE.
  783  PURSUANT TO FLORIDA STATUTES, THE PARTIES ARE REQUIRED TO ENGAGE
  784  IN PRESUIT MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN
  785  ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT ACTION,
  786  AND THE AGGRIEVED PARTY DEMANDS THAT YOU PARTICIPATE IN THIS
  787  PROCESS. UNLESS YOU RESPOND TO THIS NOTICE BY FILING WITH THE
  788  AGGRIEVED PARTY A NOTICE OF OPTING OUT AND DEMAND FOR
  789  ARBITRATION UNDER SECTION 720.506, FLORIDA STATUTES, YOUR
  790  FAILURE TO PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
  791  LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT FURTHER NOTICE.
  792  
  793         THE PROCESS OF MEDIATION INVOLVES A SUPERVISED NEGOTIATION
  794  PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-PARTY MEDIATOR MEETS
  795  WITH BOTH PARTIES AND ASSISTS THEM IN EXPLORING POSSIBLE
  796  OPPORTUNITIES FOR RESOLVING PART OR ALL OF THE DISPUTE. BY
  797  AGREEING TO PARTICIPATE IN PRESUIT MEDIATION, YOU ARE NOT BOUND
  798  IN ANY WAY TO CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR
  799  HAS NO AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
  800  DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A FACILITATOR
  801  TO ENSURE THAT EACH PARTY UNDERSTANDS THE POSITION OF THE OTHER
  802  PARTY AND THAT ALL OPTIONS FOR REASONABLE SETTLEMENT ARE FULLY
  803  EXPLORED.
  804  
  805         IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO WRITING
  806  AND BECOME A BINDING AND ENFORCEABLE CONTRACT BETWEEN THE
  807  PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS FASHION
  808  AVOIDS THE NEED TO LITIGATE THESE ISSUES IN COURT. THE FAILURE
  809  TO REACH AN AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE
  810  IN THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN IMPASSE IN
  811  THE MEDIATION, AFTER WHICH THE AGGRIEVED PARTY MAY PROCEED TO
  812  FILE A LAWSUIT ON ALL OUTSTANDING, UNSETTLED DISPUTES. IF YOU
  813  HAVE FAILED OR REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
  814  PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER ATTORNEY’S FEES IF
  815  YOU PREVAIL IN A SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME
  816  DISPUTE.
  817  
  818         THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF ELIGIBLE,
  819  QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED MEDIATORS WHO THE
  820  AGGRIEVED PARTY BELIEVES TO BE NEUTRAL AND QUALIFIED TO MEDIATE
  821  THE DISPUTE. YOU HAVE THE RIGHT TO SELECT ANY ONE OF THESE
  822  MEDIATORS. THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
  823  MORE OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE MEDIATOR
  824  CANNOT ACT AS A NEUTRAL AND IMPARTIAL FACILITATOR. THE NAMES OF
  825  THE MEDIATORS THAT THE AGGRIEVED PARTY HEREBY SUBMITS TO YOU,
  826  AND FROM WHOM YOU MAY CHOOSE ONE; THEIR CURRENT ADDRESSES; THEIR
  827  TELEPHONE NUMBERS; AND THEIR HOURLY RATES ARE AS FOLLOWS:
  828  
  829         (LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND HOURLY
  830  RATES OF THE MEDIATORS. OTHER PERTINENT INFORMATION ABOUT THE
  831  BACKGROUND OF THE MEDIATORS MAY BE INCLUDED AS AN ATTACHMENT.)
  832  
  833         YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO CONFIRM
  834  THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL BE NEUTRAL AND WILL
  835  NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY. UNLESS OTHERWISE
  836  AGREED TO BY THE PARTIES, PART IV OF CHAPTER 720, FLORIDA
  837  STATUTES, REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
  838  MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE MEDIATOR. AN
  839  AVERAGE MEDIATION MAY REQUIRE 3 TO 4 HOURS OF THE MEDIATOR’S
  840  TIME, INCLUDING SOME PREPARATION TIME, AND THE PARTIES WOULD
  841  NEED TO EQUALLY SHARE THE MEDIATOR’S FEES AS WELL AS BE
  842  RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY’S FEES IF THEY CHOOSE
  843  TO EMPLOY AN ATTORNEY IN CONNECTION WITH THE MEDIATION. HOWEVER,
  844  USE OF AN ATTORNEY IS NOT REQUIRED AND IS AT THE OPTION OF EACH
  845  PARTY. THE MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
  846  ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY HEREBY AGREES
  847  TO PAY OR PREPAY ONE-HALF OF THE SELECTED MEDIATOR’S ESTIMATED
  848  FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER REASONABLE ADVANCE
  849  DEPOSITS AS THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
  850  SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE RETURNED
  851  TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR SHARE OF THE
  852  MEDIATOR FEES INCURRED.
  853  
  854         TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO TRY TO
  855  RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER LEGAL ACTION,
  856  PLEASE SIGN BELOW AND CLEARLY INDICATE WHICH MEDIATOR IS
  857  ACCEPTABLE TO YOU FROM THE FIVE MEDIATORS LISTED BY THE
  858  AGGRIEVED PARTY ABOVE.
  859  
  860         YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE OF
  861  PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE YOU MUST
  862  PROVIDE A LISTING OF AT LEAST THREE DATES AND TIMES IN WHICH YOU
  863  ARE AVAILABLE TO PARTICIPATE IN THE MEDIATION WHICH ARE WITHIN
  864  90 DAYS AFTER THE POSTMARKED DATE OF THE MAILING OF THIS NOTICE
  865  OF PRESUIT MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
  866  SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY WILL THEN
  867  ASK THE MEDIATOR TO SCHEDULE A MUTUALLY CONVENIENT TIME AND
  868  PLACE FOR THE MEDIATION CONFERENCE TO BE HELD. IF YOU DO NOT
  869  PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE MEDIATOR IS
  870  AUTHORIZED TO SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING
  871  YOUR SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO EVENT
  872  WILL THE MEDIATION CONFERENCE BE LATER THAN 90 DAYS AFTER THE
  873  NOTICE OF PRESUIT MEDIATION WAS FIRST SERVED, UNLESS ALL PARTIES
  874  MUTUALLY AGREE OTHERWISE. IN THE EVENT THAT YOU FAIL TO RESPOND
  875  WITHIN 20 DAYS AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE
  876  THE MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE AVAILABLE FOR
  877  THE MEDIATION CONFERENCE, FAIL TO AGREE TO AT LEAST ONE OF THE
  878  MEDIATORS THAT THE AGGRIEVED PARTY HAS LISTED, FAIL TO PAY OR
  879  PREPAY TO THE MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL
  880  TO APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE
  881  AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE FILING OF
  882  A LAWSUIT AGAINST YOU WITHOUT FURTHER NOTICE. IN ANY SUBSEQUENT
  883  COURT ACTION, THE AGGRIEVED PARTY MAY SEEK AN AWARD OF
  884  REASONABLE ATTORNEY’S FEES AND COSTS INCURRED IN ATTEMPTING TO
  885  OBTAIN MEDIATION.
  886  
  887         PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY LAW,
  888  YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-CLASS MAIL,
  889  RETURN RECEIPT REQUESTED, TO THE AGGRIEVED PARTY LISTED ABOVE AT
  890  THE ADDRESS SHOWN ON THIS NOTICE AND POSTMARKED NO MORE THAN 20
  891  DAYS AFTER THE DATE OF THE POSTMARKED DATE FOR THIS NOTICE OR
  892  WITHIN 20 DAYS AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A
  893  COPY OF THIS NOTICE.
  894  
  895         ________________________
  896         SIGNATURE OF AGGRIEVED PARTY
  897  
  898         ______________________
  899         PRINTED NAME OF AGGRIEVED PARTY
  900  
  901         RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
  902  ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
  903  
  904                        AGREEMENT TO MEDIATE                       
  905  
  906         THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN PRESUIT
  907  MEDIATION AND AGREES TO ATTEND A MEDIATION CONDUCTED BY THE
  908  FOLLOWING MEDIATOR(S) LISTED BELOW AS ACCEPTABLE TO MEDIATE THIS
  909  DISPUTE:
  910  
  911         (LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
  912  AGGRIEVED PARTY.)
  913  
  914         THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN ATTEND
  915  AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE FOLLOWING DATES
  916  AND TIMES:
  917  
  918         (LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN THE
  919  90-DAY TIME LIMIT DESCRIBED ABOVE.)
  920  
  921         I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
  922  MEDIATOR’S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS AS THE
  923  MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
  924  
  925         ______________________________
  926         SIGNATURE OF RESPONDING PARTY #1
  927         ______________________________
  928         TELEPHONE CONTACT INFORMATION
  929  
  930         ______________________________
  931         SIGNATURE AND TELEPHONE CONTACT INFORMATION OF RESPONDING
  932  PARTY #2, IF APPLICABLE. IF THE PROPERTY IS OWNED BY MORE THAN
  933  ONE PERSON, ALL OWNERS MUST SIGN, OR A PERSON MAY SIGN WHO IS
  934  ACTING UNDER AUTHORITY OF A VALID POWER OF ATTORNEY GRANTED BY
  935  AN OWNER.
  936  
  937         (2)(a)Service of the notice of presuit mediation shall be
  938  effected either by personal service, as provided in chapter 48,
  939  or by certified mail, return receipt requested, in a letter in
  940  substantial conformity with the form provided in subsection (1),
  941  with an additional copy being sent by regular first-class mail
  942  to the address of the responding party as it last appears on the
  943  books and records of the association or, if not available, then
  944  as it last appears in the official records of the county
  945  property appraiser where the parcel in dispute is located. The
  946  responding party has either 20 days after the postmarked date of
  947  the mailing of the statutory notice or 20 days after the date
  948  the responding party is served with a copy of the notice to
  949  serve a written response to the aggrieved party. The response
  950  shall be served by certified mail, return receipt requested,
  951  with an additional copy being sent by regular first-class mail
  952  to the address shown on the statutory notice. The date of the
  953  postmark on the envelope for the response constitutes the date
  954  that the response is served. Once the parties have agreed on a
  955  mediator, the mediator may schedule or reschedule the mediation
  956  for a date and time mutually convenient to the parties within 90
  957  days after the date of service of the statutory notice. After
  958  the 90-day period, the mediator may reschedule the mediation
  959  only upon the mutual written agreement of all the parties.
  960         (b)The parties shall share the costs of presuit mediation
  961  equally, including the fee charged by the mediator, if any,
  962  unless the parties agree otherwise, and the mediator may require
  963  advance payment of his or her reasonable fees and costs. Each
  964  party is responsible for that party’s own attorney’s fees if a
  965  party chooses to be represented by an attorney at the mediation.
  966         (c)The party responding to the aggrieved party may provide
  967  a notice of opting out under s. 720.506 and demand arbitration
  968  or may sign the agreement to mediate included in the notice of
  969  presuit mediation. A responding party signing the agreement to
  970  mediate must clearly indicate the name of the mediator who is
  971  acceptable from the five names provided by the aggrieved party
  972  and must provide a list of dates and times in which the
  973  responding party is available to participate in the mediation
  974  within 90 days after the date the responding party was served,
  975  either by a process server or by certified mail, with the
  976  statutory notice of presuit mediation.
  977         (d)The mediator who has been selected and agreed to
  978  mediate must schedule the mediation conference at a mutually
  979  convenient time and place within that 90-day period; however, if
  980  the responding party does not provide a list of available dates
  981  and times, the mediator is authorized to schedule a mediation
  982  conference without taking the responding party’s schedule and
  983  convenience into consideration. Within 10 days after the
  984  designation of the mediator, the mediator shall coordinate with
  985  the parties and notify the parties in writing of the date, time,
  986  and place of the mediation conference.
  987         (e)The mediation conference must be held on the scheduled
  988  date and may be rescheduled if a rescheduled date is approved by
  989  the mediator. However, in no event shall the mediation be held
  990  later than 90 days after the notice of presuit mediation was
  991  first served, unless all parties mutually agree in writing
  992  otherwise. If the presuit mediation is not completed within the
  993  required time limits, the mediator shall declare an impasse,
  994  unless the mediation date is extended by mutual written
  995  agreement by all parties and approved by the mediator.
  996         (f)If the responding party fails to respond within 30 days
  997  after the date of service of the statutory notice of presuit
  998  mediation, fails to agree to at least one of the mediators
  999  listed by the aggrieved party in the notice, fails to pay or
 1000  prepay to the mediator one-half of the costs of the mediator, or
 1001  fails to appear and participate at the scheduled mediation, the
 1002  aggrieved party is authorized to proceed with the filing of a
 1003  lawsuit without further notice.
 1004         (g)1.The failure of any party to respond to the statutory
 1005  notice of presuit mediation within 20 days, the failure to agree
 1006  upon a mediator, the failure to provide a listing of dates and
 1007  times in which the responding party is available to participate
 1008  in the mediation within 90 days after the date the responding
 1009  party was served with the statutory notice of presuit mediation,
 1010  the failure to make payment of fees and costs within the time
 1011  established by the mediator, or the failure to appear for a
 1012  scheduled mediation session without the approval of the
 1013  mediator, constitutes in each instance a failure or refusal to
 1014  participate in the mediation process and operates as an impasse
 1015  in the presuit mediation by such party, entitling the other
 1016  party to file a lawsuit in court and to seek an award of the
 1017  costs and attorney’s fees associated with the mediation.
 1018         2.Persons who fail or refuse to participate in the entire
 1019  mediation process may not recover attorney’s fees and costs in
 1020  subsequent litigation relating to the same dispute between the
 1021  same parties. If any presuit mediation session cannot be
 1022  scheduled and conducted within 90 days after the offer to
 1023  participate in mediation was filed, through no fault of either
 1024  party, then an impasse shall be deemed to have occurred unless
 1025  the parties mutually agree in writing to extend this deadline.
 1026  In the event of such impasse, each party is responsible for its
 1027  own costs and attorney’s fees and one-half of any mediator fees
 1028  and filing fees, and either party may file a lawsuit in court
 1029  regarding the dispute.
 1030         720.506Opt out of presuit mediation.—A party served with a
 1031  notice of presuit mediation under s. 720.505 may opt out of
 1032  presuit mediation and demand that the dispute proceed under
 1033  nonbinding arbitration as follows:
 1034         (1)In lieu of a response to the notice of presuit
 1035  mediation as required under s. 720.505, the responding party may
 1036  serve upon the aggrieved party, in the same manner as the
 1037  response to a notice for presuit mediation under s. 720.505, a
 1038  notice of opting out of mediation and demand that the dispute
 1039  instead proceed to presuit arbitration under s. 720.507.
 1040         (2)The aggrieved party shall be relieved from having to
 1041  satisfy the requirements of s. 720.504 as a condition precedent
 1042  to filing the demand for presuit arbitration.
 1043         (3)Except as otherwise provided in this part, the choice
 1044  of which presuit alternative dispute resolution procedure is
 1045  used is at the election of the aggrieved party who first
 1046  initiated such proceeding after complying with the provisions of
 1047  s. 720.504.
 1048         720.507Presuit arbitration.—
 1049         (1)Disputes between an association and a parcel owner or
 1050  owners and disputes between parcel owners are subject to a
 1051  demand for presuit arbitration pursuant to this section before
 1052  the dispute may be filed in court. A party who elects to use the
 1053  presuit arbitration procedure under this part shall serve on the
 1054  responding party a written notice of presuit arbitration in
 1055  substantially the following form:
 1056  
 1057               STATUTORY NOTICE OF PRESUIT ARBITRATION             
 1058  
 1059         THE ALLEGED AGGRIEVED PARTY, ____________________, HEREBY
 1060  DEMANDS THAT ____________________, AS THE RESPONDING PARTY,
 1061  ENGAGE IN MANDATORY PRESUIT ARBITRATION IN CONNECTION WITH THE
 1062  FOLLOWING DISPUTES WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT
 1063  ARE SUBJECT TO PRESUIT ARBITRATION:
 1064  
 1065         (LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
 1066  ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A VIOLATION
 1067  AS TO EACH DISPUTE, INCLUDING, BUT NOT LIMITED TO, ALL
 1068  APPLICABLE PROVISIONS OF THE GOVERNING DOCUMENTS BELIEVED TO
 1069  APPLY TO THE DISPUTE BETWEEN THE PARTIES.)
 1070  
 1071         PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES, THIS
 1072  DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT ARBITRATION IS
 1073  REQUIRED BEFORE A LAWSUIT CAN BE FILED CONCERNING THE DISPUTE.
 1074  PURSUANT TO FLORIDA STATUTES, THE PARTIES ARE REQUIRED TO ENGAGE
 1075  IN PRESUIT ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
 1076  ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT ACTION,
 1077  AND THE AGGRIEVED PARTY DEMANDS THAT YOU PARTICIPATE IN THIS
 1078  PROCESS. IF YOU FAIL TO PARTICIPATE IN THE ARBITRATION PROCESS,
 1079  A LAWSUIT MAY BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
 1080  WARNING.
 1081  
 1082         THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD PERSON
 1083  WHO CONSIDERS THE LAW AND FACTS PRESENTED BY THE PARTIES AND
 1084  RENDERS A WRITTEN DECISION CALLED AN “ARBITRATION AWARD.”
 1085  PURSUANT TO SECTION 720.507, FLORIDA STATUTES, THE ARBITRATION
 1086  AWARD SHALL BE FINAL UNLESS A LAWSUIT IS FILED IN A COURT OF
 1087  COMPETENT JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
 1088  PARCEL(S) GOVERNED BY THE HOMEOWNERS’ ASSOCIATION IS/ARE LOCATED
 1089  WITHIN 30 DAYS AFTER THE DATE OF THE ARBITRATION AWARD.
 1090  
 1091         IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE ARBITRATION
 1092  AWARD, IT SHALL BE REDUCED TO WRITING AND BECOME A BINDING AND
 1093  ENFORCEABLE CONTRACT OF THE PARTIES. A RESOLUTION OF ONE OR MORE
 1094  DISPUTES IN THIS FASHION AVOIDS THE NEED TO ARBITRATE THESE
 1095  ISSUES OR TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
 1096  SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE PARTIES UNDER
 1097  SECTION 720.505, FLORIDA STATUTES. THE FAILURE OF A PARTY TO
 1098  PARTICIPATE IN THE ARBITRATION PROCESS MAY RESULT IN THE
 1099  ARBITRATOR ISSUING AN ARBITRATION AWARD BY DEFAULT IN THE
 1100  ARBITRATION. IF YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
 1101  ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
 1102  ATTORNEY’S FEES, EVEN IF YOU PREVAIL IN A SUBSEQUENT COURT
 1103  PROCEEDING INVOLVING THE SAME DISPUTE BETWEEN THE SAME PARTIES.
 1104  
 1105         THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE ARBITRATORS
 1106  WHO THE AGGRIEVED PARTY BELIEVES TO BE NEUTRAL AND QUALIFIED TO
 1107  ARBITRATE THE DISPUTE. YOU HAVE THE RIGHT TO SELECT ANY ONE OF
 1108  THE ARBITRATORS. THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH
 1109  ONE OR MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
 1110  ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL ARBITRATOR. ANY
 1111  ARBITRATOR WHO CANNOT ACT IN THIS CAPACITY IS REQUIRED ETHICALLY
 1112  TO DECLINE TO ACCEPT ENGAGEMENT. THE NAMES OF THE FIVE
 1113  ARBITRATORS THAT THE AGGRIEVED PARTY HAS CHOSEN, AND FROM WHICH
 1114  YOU MAY SELECT ONE; THEIR CURRENT ADDRESSES; THEIR TELEPHONE
 1115  NUMBERS; AND THEIR HOURLY RATES, ARE AS FOLLOWS:
 1116  
 1117         (LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND HOURLY
 1118  RATES OF AT LEAST FIVE ARBITRATORS.
 1119  
 1120         YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO CONFIRM
 1121  THAT THE LISTED ARBITRATORS WILL BE NEUTRAL AND WILL NOT SHOW
 1122  ANY FAVORITISM TOWARD EITHER PARTY.
 1123  
 1124         UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
 1125  CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE PARTIES SHARE
 1126  THE COSTS OF PRESUIT ARBITRATION EQUALLY, INCLUDING THE FEE
 1127  CHARGED BY THE ARBITRATOR. THE PARTIES ARE RESPONSIBLE FOR THEIR
 1128  OWN ATTORNEY’S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY IN
 1129  CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN ATTORNEY TO
 1130  REPRESENT YOU FOR THE ARBITRATION IS NOT REQUIRED. THE
 1131  ARBITRATOR SELECTED MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
 1132  ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY HEREBY AGREES
 1133  TO PAY OR PREPAY ONE-HALF OF THE SELECTED ARBITRATOR’S ESTIMATED
 1134  FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER REASONABLE ADVANCE
 1135  DEPOSITS AS THE ARBITRATOR WHO IS SELECTED REQUIRES FOR THIS
 1136  PURPOSE. ANY FUNDS DEPOSITED WILL BE RETURNED TO YOU IF THESE
 1137  FUNDS ARE IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
 1138  
 1139         PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND CLEARLY
 1140  INDICATE THE NAME OF THE ARBITRATOR WHO IS ACCEPTABLE TO YOU
 1141  FROM THE NAMES LISTED BY THE AGGRIEVED PARTY.
 1142  
 1143         YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE WITHIN
 1144  20 DAYS AFTER THE DATE THAT THE NOTICE OF PRESUIT ARBITRATION
 1145  WAS EITHER PERSONALLY SERVED ON YOU OR 20 DAYS AFTER THE
 1146  POSTMARKED DATE THAT THIS NOTICE OF PRESUIT ARBITRATION WAS SENT
 1147  TO YOU BY CERTIFIED MAIL. YOU MUST ALSO PROVIDE A LIST OF AT
 1148  LEAST THREE DATES AND TIMES IN WHICH YOU ARE AVAILABLE TO
 1149  PARTICIPATE IN THE ARBITRATION WHICH ARE WITHIN 90 DAYS AFTER
 1150  THE DATE YOU WERE PERSONALLY SERVED OR WITHIN 90 DAYS AFTER THE
 1151  POSTMARKED DATE OF THE CERTIFIED MAILING OF THIS STATUTORY
 1152  NOTICE OF PRESUIT ARBITRATION. A COPY OF THIS NOTICE AND YOUR
 1153  RESPONSE WILL BE PROVIDED BY THE AGGRIEVED PARTY TO THE
 1154  ARBITRATOR SELECTED, AND THE ARBITRATOR WILL SCHEDULE A MUTUALLY
 1155  CONVENIENT TIME AND PLACE FOR THE ARBITRATION CONFERENCE TO BE
 1156  HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE DATES AND TIMES,
 1157  THE ARBITRATOR IS AUTHORIZED TO SCHEDULE AN ARBITRATION
 1158  CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND CONVENIENCE INTO
 1159  CONSIDERATION. THE ARBITRATION CONFERENCE MUST BE HELD ON THE
 1160  SCHEDULED DATE, OR ANY RESCHEDULED DATE APPROVED BY THE
 1161  ARBITRATOR. IN NO EVENT WILL THE ARBITRATION CONFERENCE BE LATER
 1162  THAN 90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS FIRST
 1163  SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN WRITING OTHERWISE.
 1164  IF THE ARBITRATION IS NOT COMPLETED WITHIN THE REQUIRED TIME
 1165  LIMITS, THE ARBITRATOR SHALL ISSUE AN ARBITRATION AWARD, UNLESS
 1166  THE HEARING IS EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE
 1167  PARTIES AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
 1168  FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE SERVED
 1169  WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE ARBITRATOR WITH
 1170  DATES AND TIMES IN WHICH YOU ARE AVAILABLE FOR THE ARBITRATION
 1171  CONFERENCE, FAIL TO AGREE TO ONE OF THE ARBITRATORS THAT THE
 1172  AGGRIEVED PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO THE
 1173  ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS REQUIRED, OR FAIL
 1174  TO APPEAR AND PARTICIPATE AT THE SCHEDULED ARBITRATION
 1175  CONFERENCE, THE AGGRIEVED PARTY MAY REQUEST THE ARBITRATOR TO
 1176  ISSUE AN ARBITRATION AWARD. IN THE SUBSEQUENT COURT ACTION, THE
 1177  AGGRIEVED PARTY IS ENTITLED TO RECOVER AN AWARD OF REASONABLE
 1178  ATTORNEY’S FEES AND COSTS, INCLUDING ANY FEES PAID TO THE
 1179  ARBITRATOR, INCURRED IN OBTAINING AN ARBITRATION AWARD PURSUANT
 1180  TO SECTION 720.507, FLORIDA STATUTES.
 1181  
 1182         PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY LAW,
 1183  YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY CERTIFIED, FIRST
 1184  CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESS SHOWN ON
 1185  THIS NOTICE OF PRESUIT ARBITRATION.
 1186  
 1187         _________________________
 1188         SIGNATURE OF AGGRIEVED PARTY
 1189  
 1190         ______________________
 1191         PRINTED NAME OF AGGRIEVED PARTY
 1192  
 1193         RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
 1194         ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
 1195  
 1196                       AGREEMENT TO ARBITRATE                      
 1197  
 1198         THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN PRESUIT
 1199  ARBITRATION AND AGREES TO ATTEND AN ARBITRATION CONDUCTED BY THE
 1200  FOLLOWING ARBITRATOR LISTED BELOW AS SOMEONE WHO WOULD BE
 1201  ACCEPTABLE TO ARBITRATE THIS DISPUTE:
 1202  
 1203         (IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR THAT
 1204  IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS LISTED BY THE
 1205  AGGRIEVED PARTY.)
 1206  
 1207         THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
 1208  AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE PRESUIT
 1209  ARBITRATION CONFERENCE AT THE FOLLOWING DATES AND TIMES:
 1210  
 1211         (LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE MUST BE
 1212  AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE ON WHICH YOU WERE
 1213  SERVED, EITHER BY A PROCESS SERVER OR BY CERTIFIED MAIL, WITH
 1214  THE NOTICE OF PRESUIT ARBITRATION.)
 1215  
 1216         I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
 1217  ARBITRATOR’S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS AS THE
 1218  ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
 1219  
 1220         ______________________________
 1221         SIGNATURE OF RESPONDING PARTY #1
 1222         ______________________________
 1223         TELEPHONE CONTACT INFORMATION
 1224  
 1225         ______________________________
 1226         SIGNATURE AND TELEPHONE CONTACT INFORMATION OF RESPONDING
 1227  PARTY #2, IF APPLICABLE. IF THE PROPERTY IS OWNED BY MORE THAN
 1228  ONE PERSON, ALL OWNERS MUST SIGN, OR A PERSON MAY SIGN WHO IS
 1229  ACTING UNDER AUTHORITY OF A VALID POWER OF ATTORNEY GRANTED BY
 1230  AN OWNER.
 1231  
 1232         (2)(a)Service of the statutory notice of presuit
 1233  arbitration shall be effected either by personal service, as
 1234  provided in chapter 48, or by certified mail, return receipt
 1235  requested, in a letter in substantial conformity with the form
 1236  provided in subsection (1), with an additional copy being sent
 1237  by regular first-class mail to the address of the responding
 1238  party as it last appears on the books and records of the
 1239  association, or if not available, the last address as it appears
 1240  on the official records of the county property appraiser for the
 1241  county in which the property is situated that is subject to the
 1242  association documents. The responding party has 20 days after
 1243  the postmarked date of the certified mailing of the statutory
 1244  notice of presuit arbitration or 20 days after the date the
 1245  responding party is personally served with the statutory notice
 1246  of presuit arbitration to serve a written response to the
 1247  aggrieved party. The response shall be served by certified mail,
 1248  return receipt requested, with an additional copy being sent by
 1249  regular first-class mail to the address shown on the statutory
 1250  notice of presuit arbitration. The postmarked date on the
 1251  envelope of the response constitutes the date the response was
 1252  served.
 1253         (b)The parties shall share the costs of presuit
 1254  arbitration equally, including the fee charged by the
 1255  arbitrator, if any, unless the parties agree otherwise, and the
 1256  arbitrator may require advance payment of his or her reasonable
 1257  fees and costs. Each party is responsible for all of their own
 1258  attorney’s fees if a party chooses to be represented by an
 1259  attorney for the arbitration proceedings.
 1260         (c)1.The party responding to the aggrieved party must sign
 1261  the agreement to arbitrate included in the notice of presuit
 1262  arbitration and clearly indicate the name of the arbitrator who
 1263  is acceptable of those arbitrators listed by the aggrieved
 1264  party. The responding party must provide a list of at least
 1265  three dates and times in which the responding party is available
 1266  to participate in the arbitration conference within 90 days
 1267  after the date the responding party was served with the
 1268  statutory notice of presuit arbitration.
 1269         2.The arbitrator must schedule the arbitration conference
 1270  at a mutually convenient time and place, but if the responding
 1271  party does not provide a list of available dates and times, the
 1272  arbitrator is authorized to schedule an arbitration conference
 1273  without taking the responding party’s schedule and convenience
 1274  into consideration. Within 10 days after the designation of the
 1275  arbitrator, the arbitrator shall notify the parties in writing
 1276  of the date, time, and place of the arbitration conference.
 1277         3.The arbitration conference must be held on the scheduled
 1278  date and may be rescheduled if a rescheduled date is approved by
 1279  the arbitrator. However, the arbitration hearing may not be held
 1280  later than 90 days after the notice of presuit arbitration was
 1281  first served, unless all parties mutually agree in writing
 1282  otherwise. If the arbitration hearing is not completed within
 1283  the required time limits, the arbitrator may issue an
 1284  arbitration award, unless the time for the hearing is extended
 1285  as provided herein. If the responding party fails to respond
 1286  within 20 days after the date of statutory notice of presuit
 1287  arbitration, fails to agree to at least one of the arbitrators
 1288  that have been listed by the aggrieved party in the presuit
 1289  notice of arbitration, fails to pay or prepay to the arbitrator
 1290  one-half of the costs involved, or fails to appear and
 1291  participate at the scheduled arbitration, the aggrieved party is
 1292  authorized to proceed with a request that the arbitrator issue
 1293  an arbitration award.
 1294         (d)1.The failure of any party to respond to the statutory
 1295  notice of presuit arbitration within 20 days, the failure to
 1296  select one of the five arbitrators listed by the aggrieved
 1297  party, the failure to provide a listing of dates and times in
 1298  which the responding party is available to participate in the
 1299  arbitration conference within 90 days after the date of the
 1300  responding party being served with the statutory notice of
 1301  presuit arbitration, the failure to make payment of fees and
 1302  costs as required within the time established by the arbitrator,
 1303  or the failure to appear for an arbitration conference without
 1304  the approval of the arbitrator, entitles the other party to
 1305  request the arbitrator to enter an arbitration award, including
 1306  an award of the reasonable costs and attorney’s fees associated
 1307  with the arbitration.
 1308         2.Persons who fail or refuse to participate in the entire
 1309  arbitration process may not recover attorney’s fees and costs in
 1310  any subsequent litigation proceeding relating to the same
 1311  dispute involving the same parties.
 1312         (3)(a)In an arbitration proceeding, the arbitrator may not
 1313  consider any unsuccessful mediation of the dispute.
 1314         (b)An arbitrator in a proceeding initiated pursuant to the
 1315  provisions of this part may shorten the time for discovery or
 1316  otherwise limit discovery in a manner consistent with the policy
 1317  goals of this part to reduce the time and expense of litigating
 1318  homeowners’ association disputes initiated pursuant to this
 1319  chapter and to promote an expeditious alternative dispute
 1320  resolution procedure for parties to such actions.
 1321         (4)At the request of any party to the arbitration, the
 1322  arbitrator may issue subpoenas for the attendance of witnesses
 1323  and the production of books, records, documents, and other
 1324  evidence, and any party on whose behalf a subpoena is issued may
 1325  apply to the court for orders compelling such attendance and
 1326  production. Subpoenas shall be served and are enforceable in the
 1327  manner provided by the Florida Rules of Civil Procedure.
 1328  Discovery may, at the discretion of the arbitrator, be permitted
 1329  in the manner provided by the Florida Rules of Civil Procedure.
 1330         (5)The final arbitration award shall be sent to the
 1331  parties in writing no later than 30 days after the date of the
 1332  arbitration hearing, absent extraordinary circumstances
 1333  necessitating a later filing the reasons for which shall be
 1334  stated in the final award if filed more than 30 days after the
 1335  date of the final session of the arbitration conference. An
 1336  agreed arbitration award is final in those disputes in which the
 1337  parties have mutually agreed to be bound. An arbitration award
 1338  decided by the arbitrator is final unless a lawsuit seeking a
 1339  trial de novo is filed in a court of competent jurisdiction
 1340  within 30 days after the date of the arbitration award. The
 1341  right to file for a trial de novo entitles the parties to file a
 1342  complaint in the appropriate trial court for a judicial
 1343  resolution of the dispute. The prevailing party in an
 1344  arbitration proceeding shall be awarded the costs of the
 1345  arbitration and reasonable attorney’s fees in an amount
 1346  determined by the arbitrator.
 1347         (6)The party filing a motion for a trial de novo shall be
 1348  assessed the other party’s arbitration costs, court costs, and
 1349  other reasonable costs, including attorney’s fees, investigation
 1350  expenses, and expenses for expert or other testimony or evidence
 1351  incurred after the arbitration hearing, if the judgment upon the
 1352  trial de novo is not more favorable than the final arbitration
 1353  award.
 1354         720.508Rules of procedure.—
 1355         (1)Presuit mediation and presuit arbitration proceedings
 1356  under this part must be conducted in accordance with the
 1357  applicable Florida Rules of Civil Procedure and rules governing
 1358  mediations and arbitrations under chapter 44, except that this
 1359  part shall be controlling to the extent of any conflict with
 1360  other applicable rules or statutes. The arbitrator may shorten
 1361  any applicable time period and otherwise limit the scope of
 1362  discovery on request of the parties or within the discretion of
 1363  the arbitrator exercised consistent with the purpose and
 1364  objective of reducing the expense and expeditiously concluding
 1365  proceedings under this part.
 1366         (2)Presuit mediation proceedings under s. 720.505 are
 1367  privileged and confidential to the same extent as court-ordered
 1368  mediation under chapter 44. An arbitrator or judge may not
 1369  consider any information or evidence arising from the presuit
 1370  mediation proceeding except in a proceeding to impose sanctions
 1371  for failure to attend a presuit mediation session or to enforce
 1372  a mediated settlement agreement.
 1373         (3)Persons who are not parties to the dispute may not
 1374  attend the presuit mediation conference without consent of all
 1375  parties, with the exception of counsel for the parties and a
 1376  corporate representative designated by the association. Presuit
 1377  mediations under this part are not a board meeting for purposes
 1378  of notice and participation set forth in this chapter.
 1379         (4)Attendance at a mediation conference by the board of
 1380  directors does not require notice or participation by nonboard
 1381  members as otherwise required by this chapter for meetings of
 1382  the board.
 1383         (5)Settlement agreements resulting from a mediation or
 1384  arbitration proceeding do not have precedential value in
 1385  proceedings involving parties other than those participating in
 1386  the mediation or arbitration.
 1387         (6)Arbitration awards by an arbitrator have precedential
 1388  value in other proceedings involving the same association or
 1389  with respect to the same parcel owner.
 1390         720.509Mediators and arbitrators; qualifications and
 1391  registration.—A person is authorized to conduct mediation or
 1392  arbitration under this part if he or she has been certified as a
 1393  circuit court civil mediator under the requirements adopted
 1394  pursuant to s. 44.106, is a member in good standing with The
 1395  Florida Bar, and otherwise meets all other requirements imposed
 1396  by chapter 44.
 1397         720.510Enforcement of mediation agreement or arbitration
 1398  award.—
 1399         (1)A mediation settlement may be enforced through the
 1400  county or circuit court, as applicable, and any costs and
 1401  attorney’s fees incurred in the enforcement of a settlement
 1402  agreement reached at mediation shall be awarded to the
 1403  prevailing party in any enforcement action.
 1404         (2)Any party to an arbitration proceeding may enforce an
 1405  arbitration award by filing a petition in a court of competent
 1406  jurisdiction in which the homeowners’ association is located.
 1407  The prevailing party in such proceeding shall be awarded
 1408  reasonable attorney’s fees and costs incurred in such
 1409  proceeding.
 1410         (3)If a complaint is filed seeking a trial de novo, the
 1411  arbitration award shall be stayed and a petition to enforce the
 1412  award may not be granted. Such award, however, is admissible in
 1413  the court proceeding seeking a trial de novo.
 1414         Section 10. Sections 720.303(10)(b) and 720.306(9), Florida
 1415  Statutes, are repealed to the extent that they are inconsistent
 1416  with part IV of chapter 720, Florida Statutes.
 1417         Section 11. This act shall take effect July 1, 2009.
 1418  
 1419  ================= T I T L E  A M E N D M E N T ================
 1420         And the title is amended as follows:
 1421         Delete everything before the enacting clause
 1422  and insert:
 1423                        A bill to be entitled                      
 1424         An act relating to residential properties; amending s.
 1425         718.112, F.S.; requiring that each newly elected
 1426         director certify certain information to the secretary
 1427         of the association; providing that a failure to timely
 1428         file the statement of certification automatically
 1429         disqualifies the director from service on the
 1430         association’s board of directors; requiring that the
 1431         secretary of the association retain a director’s
 1432         certification for inspection by the members for a
 1433         specified period after a director’s election; amending
 1434         s. 720.303, F.S.; revising provisions relating to
 1435         homeowners’ association board meetings, inspection and
 1436         copying of records, and reserve accounts of budgets;
 1437         prohibiting certain association personnel from
 1438         receiving a salary or compensation; providing
 1439         exceptions; conforming a cross-reference to changes
 1440         made by the act; amending s. 720.305, F.S.;
 1441         authorizing fines assessed against members in excess
 1442         of a specified amount to become a lien against a
 1443         parcel; amending s. 720.306, F.S.; providing
 1444         requirements for secret ballots; requiring newly
 1445         elected members of a board of directors to make
 1446         certain certifications in writing to the association;
 1447         providing for disqualification for failure to make
 1448         such certifications; requiring that an association
 1449         retain certifications for a specified period; amending
 1450         s. 720.401, F.S.; requiring that the disclosure
 1451         summary to prospective parcel owners include
 1452         additional provisions; amending s. 34.01, F.S.;
 1453         correcting a cross-reference to conform to changes
 1454         made by the act; amending s. 720.302, F.S.; correcting
 1455         a cross-reference to conform to changes made by the
 1456         act; providing legislative intent; repealing s.
 1457         720.311, F.S., relating to a procedure for dispute
 1458         resolution in homeowners’ associations; creating part
 1459         IV of ch. 720, F.S., relating to dispute resolution;
 1460         creating s. 720.501, F.S.; providing a short title;
 1461         creating s. 720.502, F.S.; providing legislative
 1462         findings; creating s. 720.503, F.S.; providing
 1463         applicability of provisions for mediation and
 1464         arbitration applicable to disputes in homeowners’
 1465         associations; providing exceptions; providing for
 1466         applicability; tolling applicable statutes of
 1467         limitations; creating s. 720.504, F.S.; requiring that
 1468         a notice of dispute be delivered before referral to
 1469         mediation or arbitration; creating s. 720.505, F.S.;
 1470         creating a statutory notice form for referral to
 1471         mediation; requiring delivery by certified mail or
 1472         personal delivery; setting deadlines; requiring that
 1473         parties share certain costs; requiring the selection
 1474         of a mediator and meeting times; providing penalties
 1475         for failure to mediate; creating s. 720.506, F.S.;
 1476         providing an opt-out provision; creating s. 720.507,
 1477         F.S.; providing a statutory notice form for referral
 1478         to arbitration; requiring delivery by certified mail
 1479         or personal delivery; providing deadlines; requiring
 1480         that parties share certain costs; requiring the
 1481         selection of an arbitrator and meeting times;
 1482         providing penalties for failure to arbitrate; creating
 1483         s. 720.508, F.S.; providing rules of procedure;
 1484         providing for confidentiality; providing that
 1485         settlement agreements resulting from a mediation or
 1486         arbitration proceeding do not have precedential value
 1487         in other proceedings involving other parties;
 1488         providing that arbitration awards have precedential
 1489         value under specified conditions; creating s. 720.509,
 1490         F.S.; setting qualifications for mediators and
 1491         arbitrators; creating s. 720.510, F.S.; providing for
 1492         the enforcement of mediation agreements and
 1493         arbitration awards; repealing ss. 720.303(10)(b) and
 1494         720.306(9), F.S., relating to the recall and election
 1495         of directors, to the extent that such provisions are
 1496         inconsistent with part IV of ch. 720, F.S., which
 1497         provides for dispute resolution; providing an
 1498         effective date.