((LATE FILED FOR: APRIL 22 SPECIAL ORDER ))	Amendment
Bill No. CS/CS/CS/HB 27

Amendment No. 691245

CHAMBER ACTION
Senate		House
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1	Representative Robaina offered the following:
2
3	Amendment (with title amendment)
4	Between lines 278 and 279, insert:
5	Section 2.  Subsections (11) and (26) of section 719.103,
6	Florida Statutes, are amended to read:
7	719.103  Definitions.--As used in this chapter:
8	(11)  "Conspicuous type" means bold type in capital letters
9	no smaller than the largest type, exclusive of headings, on the
10	page on which it appears and, in all cases, at least 10-point
11	type. When conspicuous type is required, it must be separated on
12	all sides from other type and print. Conspicuous type may be
13	used in a contract for purchase and sale of a unit, a lease of a
14	unit for more than 5 years, or a prospectus or offering circular
15	only when required by law.
16	(26)  "Unit owner," or "owner of a unit," or "shareholder"
17	means the person holding a share in the cooperative association
18	and a lease or other muniment of title or possession of a unit
19	that is granted by the association as the owner of the
20	cooperative property.
21	Section 3.  Section 719.104, Florida Statutes, is amended
22	to read:
23	719.104  The association Cooperatives; access to units;
24	records; financial reports; assessments; purchase of leases.--
25	(1)  RIGHT OF ACCESS TO UNITS.--The association has the
26	irrevocable right of access to each unit from time to time
27	during reasonable hours when necessary for the maintenance,
28	repair, or replacement of any structural components of the
29	building or of any mechanical, electrical, or plumbing elements
30	necessary to prevent damage to the building or to another unit.
31	Except in cases of emergency, the association must give the
32	shareholder advance written notice of not less than 24 hours of
33	its intent to access the unit and such access must be by two
34	persons, one of whom must be a member of the board of
35	administration or a manager or employee of the association and
36	one of whom must be an authorized representative of the
37	association. The identity of the authorized representative
38	seeking access to the unit shall be provided to the unit owner
39	prior to entering the unit.
40	(2)  OFFICIAL RECORDS.--
41	(a)  From the inception of the association, the association
42	shall maintain a copy of each of the following, where
43	applicable, which shall constitute the official records of the
44	association:
45	1.  The plans, permits, warranties, and other items
46	provided by the developer pursuant to s. 719.301(4).
47	2.  A photocopy of the cooperative documents.
48	3.  A copy of the current rules of the association.
49	4.  A book or books containing the minutes of all meetings
50	of the association, of the board of directors, and of the
51	shareholders unit owners, which minutes shall be retained for a
52	period of not less than 7 years.
53	5.  A current roster of all shareholders unit owners and
54	their mailing addresses, unit identifications, voting
55	certifications, and, if known, telephone numbers. The
56	association shall also maintain the electronic mailing addresses
57	and the numbers designated by shareholders unit owners for
58	receiving notice sent by electronic transmission of those
59	shareholders unit owners consenting to receive notice by
60	electronic transmission. The electronic mailing addresses and
61	numbers provided by shareholders unit owners to receive notice
62	by electronic transmission shall be removed from association
63	records when consent to receive notice by electronic
64	transmission is revoked. However, the association is not liable
65	for an erroneous disclosure of the electronic mail address or
66	the number for receiving electronic transmission of notices.
67	6.  All current insurance policies of the association.
68	7.  A current copy of any management agreement, lease, or
69	other contract to which the association is a party or under
70	which the association or the shareholders unit owners have an
71	obligation or responsibility.
72	8.  Bills of sale or transfer for all property owned by the
73	association.
74	9.  Accounting records for the association and separate
75	accounting records for each unit it operates, according to good
76	accounting practices. Any person who knowingly or intentionally
77	defaces or destroys accounting records required to be maintained
78	by this chapter, or who knowingly or intentionally fails to
79	create or maintain accounting records required to be maintained
80	by this chapter, is personally subject to a civil penalty
81	pursuant to s. 719.501(1)(d). All accounting records shall be
82	maintained for a period of not less than 7 years. The accounting
83	records shall include, but not be limited to:
84	a.  Accurate, itemized, and detailed records of all
85	receipts and expenditures.
86	b.  A current account and a monthly, bimonthly, or
87	quarterly statement of the account for each unit designating the
88	name of the shareholder unit owner, the due date and amount of
89	each assessment, the amount paid upon the account, and the
90	balance due.
91	c.  All audits, reviews, accounting statements, and
92	financial reports of the association.
93	d.  All contracts for work to be performed. Bids for work
94	to be performed shall also be considered official records and
95	shall be maintained for a period of 1 year.
96	10.  Ballots, sign-in sheets, voting proxies, and all other
97	papers relating to voting by shareholders unit owners, which
98	shall be maintained for a period of 1 year after the date of the
99	election, vote, or meeting to which the document relates.
100	11.  All rental records where the association is acting as
101	agent for the rental of units.
102	12.  A copy of the current question and answer sheet as
103	described in s. 719.504.
104	13.  All other records of the association not specifically
105	included in the foregoing which are related to the operation of
106	the association.
107	(b)  The official records of the association shall be
108	maintained within the state for at least 7 years. The records of
109	the association shall be made available to a shareholder unit
110	owner within 5 working days after receipt of written request by
111	the board or its designee. This paragraph may be complied with
112	by having a copy of the official records available for
113	inspection or copying on the cooperative property.
114	(c)  The official records of the association shall be open
115	to inspection by any association member or the authorized
116	representative of such member at all reasonable times. Failure
117	to permit inspection of the association records as provided
118	herein entitles any person prevailing in an enforcement action
119	to recover reasonable attorney's fees from the person in control
120	of the records who, directly or indirectly, knowingly denies
121	access to the records for inspection. The right to inspect the
122	records includes the right to make or obtain copies, at the
123	reasonable expense, if any, of the association member. The
124	association may adopt reasonable rules regarding the frequency,
125	time, location, notice, and manner of record inspections and
126	copying. The failure of an association to provide the records
127	within 10 working days after receipt of a written request
128	creates a rebuttable presumption that the association willfully
129	failed to comply with this paragraph. A shareholder unit owner
130	who is denied access to official records is entitled to the
131	actual damages or minimum damages for the association's willful
132	failure to comply with this paragraph. The minimum damages shall
133	be $50 per calendar day up to 10 days, the calculation to begin
134	on the 11th day after receipt of the written request. Any person
135	who knowingly or intentionally defaces or destroys records that
136	are required by this chapter, or knowingly or intentionally
137	fails to create or maintain records that are required by this
138	chapter, is personally subject to a civil penalty pursuant to s.
139	719.501(1)(d). The association shall maintain an adequate number
140	of copies of the declaration, articles of incorporation, bylaws,
141	and rules, and all amendments to each of the foregoing, as well
142	as the question and answer sheet provided for in s. 719.504, on
143	the cooperative property to ensure their availability to
144	shareholders unit owners and prospective purchasers, and may
145	charge its actual costs for preparing and furnishing these
146	documents to those requesting the same. Notwithstanding the
147	provisions of this paragraph, the following records shall not be
148	accessible to shareholders unit owners:
149	1.  A record that was prepared by an association attorney
150	or prepared at the attorney's express direction; that reflects a
151	mental impression, conclusion, litigation strategy, or legal
152	theory of the attorney or the association; or that was prepared
153	exclusively for civil or criminal litigation or for adversarial
154	administrative proceedings or in anticipation of imminent civil
155	or criminal litigation or imminent adversarial administrative
156	proceedings, until the conclusion of the litigation or
157	adversarial administrative proceedings.
158	2.  Information obtained by an association in connection
159	with the approval of the lease, sale, or other transfer of a
160	unit.
161	3.  Medical records of shareholders unit owners.
162	4.  Social security numbers, driver's license numbers,
163	credit card numbers, and other personal identifying information
164	of any person.
165	(d)  The association or its authorized agent shall not be
166	required to provide a prospective purchaser or lienholder with
167	information about the cooperative or association other than the
168	information or documents required by this chapter to be made
169	available or disclosed. The association or its authorized agent
170	shall be entitled to charge a reasonable fee to the prospective
171	purchaser, lienholder, or the current shareholder unit owner for
172	its time in providing good faith responses to requests for
173	information by or on behalf of a prospective purchaser or
174	lienholder, other than that required by law, provided that such
175	fee shall not exceed $150 plus the reasonable cost of
176	photocopying and any attorney's fees incurred by the association
177	in connection with the association's response. An association
178	and its authorized agent are not liable for providing such
179	information in good faith pursuant to a written request if the
180	person providing the information includes a written statement in
181	substantially the following form: "The responses herein are made
182	in good faith and to the best of my ability as to their
183	accuracy."
184	(3)  INSURANCE.--The association shall use its best efforts
185	to obtain and maintain adequate insurance to protect the
186	association property. The association may also obtain and
187	maintain liability insurance for directors and officers,
188	insurance for the benefit of association employees, and flood
189	insurance. A copy of each policy of insurance in effect shall be
190	made available for inspection by unit owners at reasonable
191	times.
192	(a)  Windstorm insurance coverage for a group of no fewer
193	than three communities created and operating under chapter 718,
194	this chapter, chapter 720, or chapter 721 may be obtained and
195	maintained for the communities if the insurance coverage is
196	sufficient to cover an amount equal to the probable maximum loss
197	for the communities for a 250-year windstorm event. Such
198	probable maximum loss must be determined through the use of a
199	competent model that has been accepted by the Florida Commission
200	on Hurricane Loss Projection Methodology. Such insurance
201	coverage is deemed adequate windstorm insurance for the purposes
202	of this section.
203	(b)  An association or group of associations may self-
204	insure against claims against the association, the association
205	property, and the cooperative property required to be insured by
206	an association, upon compliance with the applicable provisions
207	of ss. 624.460-624.488, which shall be considered adequate
208	insurance for purposes of this section.
209	(4)  FINANCIAL REPORTING REPORT.--Within 90 days after the
210	end of the fiscal year, or annually on a date provided in the
211	bylaws, the association shall prepare and complete, or contract
212	for the preparation and completion of, a financial report for
213	the preceding fiscal year. Within 21 days after the final
214	financial report is completed by the association or received
215	from the third party, but not later than 120 days after the end
216	of the fiscal year or other date as provided in the bylaws, the
217	association shall mail to each shareholder at the address last
218	furnished to the association by the shareholder, or hand deliver
219	to each shareholder, a copy of the financial report or a notice
220	that a copy of the financial report will be mailed or hand
221	delivered to the shareholder, without charge, upon receipt of a
222	written request from the shareholder. The division shall adopt
223	rules setting forth uniform accounting principles and standards
224	to be used by all associations. The rules shall include, but not
225	be limited to, uniform accounting principles and standards for
226	stating the disclosure of at least a summary of the reserves,
227	including information as to whether such reserves are being
228	funded at a level sufficient to prevent the need for a special
229	assessment and, if not, the amount of assessments necessary to
230	bring the reserves up to the level necessary to avoid a special
231	assessment. The person preparing the financial reports shall be
232	entitled to rely on an inspection report prepared for or
233	provided to the association to meet the fiscal and fiduciary
234	standards of this chapter. In adopting such rules, the division
235	shall consider the number of members and annual revenues of an
236	association. Financial reports shall be prepared as follows:
237	(a)  An association that meets the criteria of this
238	paragraph shall prepare or cause to be prepared a complete set
239	of financial statements in accordance with generally accepted
240	accounting principles. The financial statements shall be based
241	upon the association's total annual revenues, as follows:
242	1.  An association with total annual revenues of $100,000
243	or more, but less than $200,000, shall prepare compiled
244	financial statements.
245	2.  An association with total annual revenues of at least
246	$200,000, but less than $400,000, shall prepare reviewed
247	financial statements.
248	3.  An association with total annual revenues of $400,000
249	or more shall prepare audited financial statements.
250	(b)1.  An association with total annual revenues of less
251	than $100,000 shall prepare a report of cash receipts and
252	expenditures.
253	2.  An association which operates less than 50 units,
254	regardless of the association's annual revenues, shall prepare a
255	report of cash receipts and expenditures in lieu of financial
256	statements required by paragraph (a).
257	3.  A report of cash receipts and disbursements must
258	disclose the amount of receipts by accounts and receipt
259	classifications and the amount of expenses by accounts and
260	expense classifications, including, but not limited to, the
261	following, as applicable: costs for security, professional and
262	management fees and expenses, taxes, costs for recreation
263	facilities, expenses for refuse collection and utility services,
264	expenses for lawn care, costs for building maintenance and
265	repair, insurance costs, administration and salary expenses, and
266	reserves accumulated and expended for capital expenditures,
267	deferred maintenance, and any other category for which the
268	association maintains reserves.
269	(c)  An association may prepare or cause to be prepared,
270	without a meeting of or approval by the shareholders:
271	1.  Compiled, reviewed, or audited financial statements, if
272	the association is required to prepare a report of cash receipts
273	and expenditures;
274	2.  Reviewed or audited financial statements, if the
275	association is required to prepare compiled financial
276	statements; or
277	3.  Audited financial statements, if the association is
278	required to prepare reviewed financial statements.
279	(d)  If approved by a majority of the voting interests
280	present at a properly called meeting of the association, an
281	association may prepare or cause to be prepared:
282	1.  A report of cash receipts and expenditures in lieu of a
283	compiled, reviewed, or audited financial statement;
284	2.  A report of cash receipts and expenditures or a
285	compiled financial statement in lieu of a reviewed or audited
286	financial statement; or
287	3.  A report of cash receipts and expenditures, a compiled
288	financial statement, or a reviewed financial statement in lieu
289	of an audited financial statement.
290
291	Such meeting and approval must occur prior to the end of the
292	fiscal year and is effective only for the fiscal year in which
293	the vote is taken, except that the approval also may be
294	effective for the following fiscal year. With respect to an
295	association to which the developer has not turned over control
296	of the association, all shareholders, including the developer,
297	may vote on issues related to the preparation of financial
298	reports for the first 2 fiscal years of the association's
299	operation, beginning with the fiscal year in which the
300	declaration is recorded. Thereafter, all shareholders except the
301	developer may vote on such issues until control is turned over
302	to the association by the developer. Any audit or review
303	prepared under this section shall be paid for by the developer
304	if done prior to turnover of control of the association. An
305	association may not waive the financial reporting requirements
306	of this subsection for more than 3 consecutive years.
307	(a)  Within 60 days following the end of the fiscal or
308	calendar year or annually on such date as is otherwise provided
309	in the bylaws of the association, the board of administration of
310	the association shall mail or furnish by personal delivery to
311	each unit owner a complete financial report of actual receipts
312	and expenditures for the previous 12 months, or a complete set
313	of financial statements for the preceding fiscal year prepared
314	in accordance with generally accepted accounting procedures. The
315	report shall show the amounts of receipts by accounts and
316	receipt classifications and shall show the amounts of expenses
317	by accounts and expense classifications including, if
318	applicable, but not limited to, the following:
319	1.  Costs for security;
320	2.  Professional and management fees and expenses;
321	3.  Taxes;
322	4.  Costs for recreation facilities;
323	5.  Expenses for refuse collection and utility services;
324	6.  Expenses for lawn care;
325	7.  Costs for building maintenance and repair;
326	8.  Insurance costs;
327	9.  Administrative and salary expenses; and
328	10.  Reserves for capital expenditures, deferred
329	maintenance, and any other category for which the association
330	maintains a reserve account or accounts.
331	(b)  The division shall adopt rules that may require that
332	the association deliver to the unit owners, in lieu of the
333	financial report required by this section, a complete set of
334	financial statements for the preceding fiscal year. The
335	financial statements shall be delivered within 90 days following
336	the end of the previous fiscal year or annually on such other
337	date as provided in the bylaws. The rules of the division may
338	require that the financial statements be compiled, reviewed, or
339	audited, and the rules shall take into consideration the
340	criteria set forth in s. 719.501(1)(j). The requirement to have
341	the financial statements compiled, reviewed, or audited does not
342	apply to associations if a majority of the voting interests of
343	the association present at a duly called meeting of the
344	association have determined for a fiscal year to waive this
345	requirement. In an association in which turnover of control by
346	the developer has not occurred, the developer may vote to waive
347	the audit requirement for the first 2 years of the operation of
348	the association, after which time waiver of an applicable audit
349	requirement shall be by a majority of voting interests other
350	than the developer. The meeting shall be held prior to the end
351	of the fiscal year, and the waiver shall be effective for only
352	one fiscal year. This subsection does not apply to a cooperative
353	that consists of 50 or fewer units.
354	(5)  ASSESSMENTS.--The association has the power to make
355	and collect assessments and to lease, maintain, repair, and
356	replace the common areas. However, the association may not
357	charge a use fee against a shareholder the unit owner for the
358	use of common areas unless otherwise provided for in the
359	cooperative documents or by a majority vote of the association
360	or unless the charges relate to expenses incurred by a
361	shareholder an owner having exclusive use of common areas.
362	(6)  PURCHASE OF LEASES.--The association has the power to
363	purchase any land or recreation lease upon the approval of such
364	voting interest as is required by the cooperative documents. If
365	the cooperative documents make no provision for acquisition of
366	the land or recreational lease, the vote required is that
367	required to amend the cooperative documents to permit the
368	acquisition.
369	(7)  COMMINGLING.--All funds shall be maintained separately
370	in the association's name. Reserve and operating funds of the
371	association shall not be commingled unless combined for
372	investment purposes. This subsection is not meant to prohibit
373	prudent investment of association funds even if combined with
374	operating or other reserve funds of the same association, but
375	such funds must be accounted for separately, and the combined
376	account balance may not, at any time, be less than the amount
377	identified as reserve funds in the combined account. No manager
378	or business entity required to be licensed or registered under
379	s. 468.432, or an agent, employee, officer, or director of a
380	cooperative association may commingle any association funds with
381	his or her own funds or with the funds of any other cooperative
382	association or community association as defined in s. 468.431.
383	(8)  CORPORATE ENTITY.--
384	(a)  The operation of the cooperative shall be by the
385	association, which must be a Florida corporation not for profit.
386	The shareholders shall be members of the association. The
387	officers and directors of the association have a fiduciary
388	relationship to the shareholders unit owners. It is the intent
389	of the Legislature that nothing in this paragraph shall be
390	construed as providing for or removing a requirement of a
391	fiduciary relationship between any manager employed by the
392	association and the shareholders. An officer, director, or
393	manager may not solicit, offer to accept, or accept any thing or
394	service of value for which consideration has not been provided
395	for his or her own benefit or that of his or her immediate
396	family, from any person providing or proposing to provide goods
397	or services to the association. Any such officer, director, or
398	manager who knowingly solicits, offers to accept, or accepts any
399	thing or service of value is subject to a civil penalty pursuant
400	to s. 719.501(1)(d). However, this paragraph does not prohibit
401	an officer, director, or manager from accepting services or
402	items received in connection with trade fairs or education
403	programs.
404	(b)  A director of the association who is present at a
405	meeting of its board at which action on any corporate matter is
406	taken is presumed to have assented to the action taken unless
407	the director votes against such action or abstains from voting
408	in respect thereto because of an asserted conflict of interest.
409	A director of the association who abstains from voting on any
410	action taken on any corporate matter shall be presumed to have
411	taken no position with regard to the action. Directors may not
412	vote by proxy or by secret ballot at board meetings, except that
413	officers may be elected by secret ballot. A vote or abstention
414	for each member present shall be recorded in the minutes.
415	(c)  A shareholder unit owner does not have any authority
416	to act for the association by reason of being a shareholder unit
417	owner.
418	(d)  As required by s. 617.0830, an officer, director, or
419	agent shall discharge his or her duties in good faith, with the
420	care an ordinarily prudent person in a like position would
421	exercise under similar circumstances, and in a manner he or she
422	reasonably believes to be in the interests of the association.
423	An officer, director, or agent shall be liable for monetary
424	damages as provided in s. 617.0834 if such officer, director, or
425	agent breached or failed to perform his or her duties and the
426	breach of, or failure to perform, his or her duties constitutes
427	a violation of criminal law as provided in s. 617.0834;
428	constitutes a transaction from which the officer or director
429	derived an improper personal benefit, either directly or
430	indirectly; or constitutes recklessness or an act or omission
431	that was in bad faith, with malicious purpose, or in a manner
432	exhibiting wanton and willful disregard of human rights, safety,
433	or property.
434	(9)  EASEMENTS.--Unless prohibited by the cooperative
435	documents, the board of administration has the authority,
436	without the joinder of any shareholder unit owner, to grant,
437	modify, or move any easement, if the easement constitutes part
438	of or crosses the common areas or association property. This
439	subsection does not authorize the board of administration to
440	modify, move, or vacate any easement created in whole or in part
441	for the use or benefit of anyone other than the shareholders
442	unit owners, or crossing the property of anyone other than the
443	shareholders unit owners, without the consent or approval of
444	those other persons having the use or benefit of the easement,
445	as required by law or by the instrument creating the easement.
446	(10)  POWERS AND DUTIES.--The powers and duties of the
447	association include those set forth in this section and, except
448	as expressly limited or restricted in this chapter, those set
449	forth in the articles of incorporation and bylaws and chapters
450	607 and 617, as applicable.
451	(11)  NOTIFICATION OF DIVISION.--When the board of
452	directors intends to dissolve or merge the cooperative
453	association, the board shall so notify the division before
454	taking any action to dissolve or merge the cooperative
455	association.
456	(12)  POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT,
457	SUE, BE SUED, AND BORROW MONEY.--
458	(a)  The association may contract, sue, or be sued with
459	respect to the exercise or nonexercise of its powers. For these
460	purposes, the powers of the association include, but are not
461	limited to, the maintenance, management, and operation of the
462	cooperative property.
463	(b)  After control of the association is obtained by
464	shareholders other than the developer, the association may
465	institute, maintain, settle, or appeal actions or hearings in
466	its name on behalf of all shareholders concerning matters of
467	common interest to most or all shareholders, including, but not
468	limited to, the common areas; the roof and structural components
469	of a building or other improvements; mechanical, electrical, and
470	plumbing elements serving an improvement or a building;
471	representations of the developer pertaining to any existing or
472	proposed commonly used facilities; and protesting ad valorem
473	taxes on commonly used facilities and units; and the association
474	may defend actions in eminent domain or bring inverse
475	condemnation actions.
476	(c)  If the association has the authority to maintain a
477	class action, the association may be joined in an action as
478	representative of that class with reference to litigation and
479	disputes involving the matters for which the association could
480	bring a class action. Nothing herein limits any statutory or
481	common-law right of any individual shareholder or class of
482	shareholders to bring any action without participation by the
483	association which may otherwise be available.
484	(d)  The borrowing of funds or committing to a line of
485	credit by the board of administration shall be considered a
486	special assessment, and any meeting of the board of
487	administration to discuss such matters shall be noticed in the
488	same manner as provided in s. 719.106(1)(c). The board shall not
489	have the authority to enter in a line of credit or borrow funds
490	for any purpose unless the specific use of the funds from the
491	line of credit or loan is set forth in the notice of meeting
492	with the same specificity as required for a special assessment
493	or unless the borrowing or line of credit has received the prior
494	approval of not less than two-thirds of the voting interests of
495	the association.
496	(13)  TITLE TO PROPERTY.--
497	(a)  The association has the power to acquire title to
498	property or otherwise hold, convey, lease, and mortgage
499	association property for the use and benefit of its
500	shareholders. The power to acquire personal property shall be
501	exercised by the board of directors. Except as otherwise
502	provided in subsections (6) and (14), no association may
503	acquire, convey, lease, or mortgage association real property
504	except in the manner provided in the cooperative documents, and
505	if the cooperative documents do not specify the procedure, then
506	approval of 75 percent of the total voting interests shall be
507	required.
508	(b)  Subject to the provisions of s. 719.106(1)(m), the
509	association, through its board, has the limited power to convey
510	a portion of the common areas to a condemning authority for the
511	purposes of providing utility easements, right-of-way expansion,
512	or other public purposes, whether negotiated or as a result of
513	eminent domain proceedings.
514	(14)  PURCHASE OF UNITS.--The association has the power,
515	unless prohibited by the cooperative documents, to purchase
516	units in the cooperative and to acquire and hold, lease,
517	mortgage, and convey the units. There shall be no limitation on
518	the association's right to purchase a unit at a foreclosure sale
519	resulting from the association's foreclosure of its lien for
520	unpaid assessments, or to take title by deed in lieu of
521	foreclosure.
522	(15)  MEETINGS.--Regular meetings of the board of directors
523	shall be held at such time and place as provided in the bylaws
524	until the first regular meeting of the board held on or after
525	October 1, 2009. Thereafter, the location and time for regular
526	meetings of the board shall be determined by a majority vote of
527	the shareholders at the next regular meeting held on or after
528	October 1, 2009. Once the time and place for regular meetings of
529	the board have been selected, neither may be changed unless
530	approved by a majority vote of the shareholders. Regular
531	meetings of the board of directors held on weekdays shall be
532	held no earlier than 6 p.m. local time.
533	(16)  LIMIT ON EXPENDITURES.--It shall be unlawful for an
534	association to make any expenditure of association funds or to
535	make any in-kind contribution of association assets that does
536	not relate to the purposes for which the association is
537	organized.
538	(a)  The association shall not make any contribution to a
539	campaign or committee of continuous existence governed by
540	chapter 105 or chapter 106.
541	(b)  The association shall not make any contribution to a
542	charitable organization if the association does not receive a
543	direct benefit from the organization.
544	(c)  The association shall not make any expenditure in
545	order to retain a person or firm for the purposes of lobbying.
546	(d)  Members of the board shall be jointly and severally
547	liable to reimburse the association for any contribution,
548	expenditure, or in-kind contribution made in violation of this
549	subsection.
550	Section 4.  Section 719.106, Florida Statutes, is amended
551	to read:
552	719.106  Bylaws; cooperative ownership.--
553	(1)  MANDATORY PROVISIONS.--The bylaws or other cooperative
554	documents shall provide for the following, and if they do not,
555	they shall be deemed to include the following:
556	(a)  Administration.--
557	1.  The form of administration of the association shall be
558	described, indicating the titles of the officers and board of
559	administration and specifying the powers, duties, manner of
560	selection and removal, and compensation, if any, of officers and
561	board members. In the absence of such a provision, the board of
562	administration shall be composed of five members, except in the
563	case of cooperatives having five or fewer units, in which case
564	in not-for-profit corporations, the board shall consist of not
565	fewer than three members. In the absence of provisions to the
566	contrary, the board of administration shall have a president, a
567	secretary, and a treasurer, who shall perform the duties of
568	those offices customarily performed by officers of corporations.
569	Unless prohibited in the bylaws, the board of administration may
570	appoint other officers and grant them those duties it deems
571	appropriate. Unless otherwise provided in the bylaws, the
572	officers shall serve without compensation and at the pleasure of
573	the board. Unless otherwise provided in the bylaws, the members
574	of the board shall serve without compensation.
575	2.  When a shareholder unit owner files a written inquiry
576	by certified mail with the board of administration, the board
577	shall respond in writing to the shareholder unit owner within 30
578	days of receipt of the inquiry. The board's response shall
579	either give a substantive response to the inquirer, notify the
580	inquirer that a legal opinion has been requested, or notify the
581	inquirer that advice has been requested from the division. If
582	the board requests advice from the division, the board shall,
583	within 10 days of its receipt of the advice, provide in writing
584	a substantive response to the inquirer. If a legal opinion is
585	requested, the board shall, within 60 days after the receipt of
586	the inquiry, provide in writing a substantive response to the
587	inquirer. The failure to provide a substantive response to the
588	inquirer as provided herein precludes the board from recovering
589	attorney's fees and costs in any subsequent litigation,
590	administrative proceeding, or arbitration arising out of the
591	inquiry. The association may, through its board of
592	administration, adopt reasonable rules and regulations regarding
593	the frequency and manner of responding to the shareholders' unit
594	owners' inquiries, one of which may be that the association is
595	obligated to respond to only one written inquiry per unit in any
596	given 30-day period. In such case, any additional inquiry or
597	inquiries must be responded to in the subsequent 30-day period,
598	or periods, as applicable.
599	(b)  Quorum; voting requirements; proxies.--
600	1.  Unless otherwise provided in the bylaws, the percentage
601	of voting interests required to constitute a quorum at a meeting
602	of the members shall be a majority of voting interests, and
603	decisions shall be made by owners of a majority of the voting
604	interests. Unless otherwise provided in this chapter, or in the
605	articles of incorporation, bylaws, or other cooperative
606	documents, and except as provided in subparagraph (d)1.,
607	decisions shall be made by owners of a majority of the voting
608	interests represented at a meeting at which a quorum is present.
609	2.  Except as specifically otherwise provided herein, after
610	January 1, 1992, shareholders unit owners may not vote by
611	general proxy, but may vote by limited proxies substantially
612	conforming to a limited proxy form adopted by the division.
613	Limited proxies and general proxies may be used to establish a
614	quorum. Limited proxies shall be used for votes taken to waive
615	or reduce reserves in accordance with subparagraph (j)2., for
616	votes taken to waive the financial reporting requirements of s.
617	719.104(4)(b), for votes taken to amend the articles of
618	incorporation or bylaws pursuant to this section, and for any
619	other matter for which this chapter requires or permits a vote
620	of the shareholders unit owners. Except as provided in paragraph
621	(d), after January 1, 1992, no proxy, limited or general, shall
622	be used in the election of board members. General proxies may be
623	used for other matters for which limited proxies are not
624	required, and may also be used in voting for nonsubstantive
625	changes to items for which a limited proxy is required and
626	given. Notwithstanding the provisions of this section,
627	shareholders unit owners may vote in person at shareholder unit
628	owner meetings. Nothing contained herein shall limit the use of
629	general proxies or require the use of limited proxies or require
630	the use of limited proxies for any agenda item or election at
631	any meeting of a timeshare cooperative.
632	3.  Any proxy given shall be effective only for the
633	specific meeting for which originally given and any lawfully
634	adjourned meetings thereof. In no event shall any proxy be valid
635	for a period longer than 90 days after the date of the first
636	meeting for which it was given. Every proxy shall be revocable
637	at any time at the pleasure of the shareholder unit owner
638	executing it.
639	4.  A member of the board of administration or a committee
640	may submit in writing his or her agreement or disagreement with
641	any action taken at a meeting that the member did not attend.
642	This agreement or disagreement may not be used as a vote for or
643	against the action taken and may not be used for the purposes of
644	creating a quorum.
645	5.  When some or all of the board or committee members meet
646	by telephone conference, those board or committee members
647	attending by telephone conference may be counted toward
648	obtaining a quorum and may vote by telephone. A telephone
649	speaker shall be utilized so that the conversation of those
650	board or committee members attending by telephone may be heard
651	by the board or committee members attending in person, as well
652	as by shareholders unit owners present at a meeting.
653	(c)  Board of administration meetings.--Meetings of the
654	board of administration at which a quorum of the members is
655	present shall be open to all shareholders unit owners. Any
656	shareholder unit owner may tape record or videotape meetings of
657	the board of administration. The right to attend such meetings
658	includes the right to speak at such meetings with reference to
659	all designated agenda items. The division shall adopt reasonable
660	rules governing the tape recording and videotaping of the
661	meeting. The association may adopt reasonable written rules
662	governing the frequency, duration, and manner of shareholder
663	unit owner statements. Adequate notice of all meetings shall be
664	posted in a conspicuous place upon the cooperative property at
665	least 48 continuous hours preceding the meeting, except in an
666	emergency. If 20 percent of the voting interests petition the
667	board to address an item of business, the board shall at its
668	next regular board meeting or at a special meeting of the board,
669	but not later than 60 days after the receipt of the petition,
670	place the item on the agenda. Any item not included on the
671	notice may be taken up on an emergency basis by at least a
672	majority plus one of the members of the board. Such emergency
673	action shall be noticed and ratified at the next regular meeting
674	of the board. However, written notice of any meeting at which
675	nonemergency special assessments, or at which amendment to rules
676	regarding unit use, will be considered shall be mailed,
677	delivered, or electronically transmitted to the shareholders
678	unit owners and posted conspicuously on the cooperative property
679	not less than 14 days prior to the meeting. Evidence of
680	compliance with this 14-day notice shall be made by an affidavit
681	executed by the person providing the notice and filed among the
682	official records of the association. Upon notice to the
683	shareholders unit owners, the board shall by duly adopted rule
684	designate a specific location on the cooperative property upon
685	which all notices of board meetings shall be posted. In lieu of
686	or in addition to the physical posting of notice of any meeting
687	of the board of administration on the cooperative property, the
688	association may, by reasonable rule, adopt a procedure for
689	conspicuously posting and repeatedly broadcasting the notice and
690	the agenda on a closed-circuit cable television system serving
691	the cooperative association. However, if broadcast notice is
692	used in lieu of a notice posted physically on the cooperative
693	property, the notice and agenda must be broadcast at least four
694	times every broadcast hour of each day that a posted notice is
695	otherwise required under this section. When broadcast notice is
696	provided, the notice and agenda must be broadcast in a manner
697	and for a sufficient continuous length of time so as to allow an
698	average reader to observe the notice and read and comprehend the
699	entire content of the notice and the agenda. Notice of any
700	meeting in which regular or special assessments against
701	shareholders unit owners are to be considered for any reason
702	shall specifically state contain a statement that assessments
703	will be considered and the nature of, actual amount of any bids
704	or proposals for estimated cost, and description of the purposes
705	for any such assessment assessments. Meetings of a committee to
706	take final action on behalf of the board or to make
707	recommendations to the board regarding the association budget
708	are subject to the provisions of this paragraph. Meetings of a
709	committee that does not take final action on behalf of the board
710	or make recommendations to the board regarding the association
711	budget are subject to the provisions of this section, unless
712	those meetings are exempted from this section by the bylaws of
713	the association. Notwithstanding any other law to the contrary,
714	the requirement that board meetings and committee meetings be
715	open to the shareholders unit owners is inapplicable to meetings
716	between the board or a committee and the association's attorney,
717	with respect to proposed or pending litigation, when the meeting
718	is held for the purpose of seeking or rendering legal advice.
719	(d)  Shareholder meetings.--There shall be an annual
720	meeting of the shareholders held at the location provided in the
721	association bylaws and, if the bylaws are silent as to the
722	location, the meeting shall be held within 45 miles of the
723	cooperative property. However, such distance requirement does
724	not apply to an association governing a timeshare cooperative.
725	All members of the board of administration shall be elected at
726	the first annual meeting after July 1, 2009, and annually
727	thereafter, except that if unless the bylaws provide for
728	staggered election terms of no more than 2 years, the
729	association board members may serve 2-year staggered terms. If
730	no person is interested in or demonstrates an intention to run
731	for the position of a board member whose term has expired, such
732	board member whose term has expired shall be automatically
733	reappointed to the board of administration and need not stand
734	for reelection or for their election at another meeting. Any
735	shareholder unit owner desiring to be a candidate for board
736	membership shall comply with subparagraph 1. The bylaws shall
737	provide the method for calling meetings, including annual
738	meetings. Written notice, which notice shall incorporate an
739	identification of agenda items, shall be given to each
740	shareholder unit owner at least 14 days prior to the annual
741	meeting and shall be posted in a conspicuous place on the
742	cooperative property at least 14 continuous days preceding the
743	annual meeting. Upon notice to the shareholders unit owners, the
744	board shall by duly adopted rule designate a specific location
745	on the cooperative property upon which all notice of shareholder
746	unit owner meetings shall be posted. In lieu of or in addition
747	to the physical posting of notice of any meeting of the
748	shareholders on the cooperative property, the association may,
749	by reasonable rule, adopt a procedure for conspicuously posting
750	and repeatedly broadcasting the notice and the agenda on a
751	closed-circuit cable television system serving the cooperative
752	association. However, if broadcast notice is used in lieu of a
753	notice posted physically on the cooperative property, the notice
754	and agenda must be broadcast at least four times every broadcast
755	hour of each day that a posted notice is otherwise required
756	under this section. When broadcast notice is provided, the
757	notice and agenda must be broadcast in a manner and for a
758	sufficient continuous length of time so as to allow an average
759	reader to observe the notice and read and comprehend the entire
760	content of the notice and the agenda. Unless a shareholder unit
761	owner waives in writing the right to receive notice of the
762	annual meeting, the notice of the annual meeting shall be sent
763	by mail, hand delivered, or electronically transmitted to each
764	shareholder unit owner. An officer of the association shall
765	provide an affidavit or United States Postal Service certificate
766	of mailing, to be included in the official records of the
767	association, affirming that notices of the association meeting
768	were mailed, hand delivered, or electronically transmitted, in
769	accordance with this provision, to each shareholder unit owner
770	at the address last furnished to the association.
771	1.  After January 1, 1992, the board of administration
772	shall be elected by written ballot or voting machine. Proxies
773	shall in no event be used in electing the board of
774	administration, either in general elections or elections to fill
775	vacancies caused by recall, resignation, or otherwise unless
776	otherwise provided in this chapter. Not less than 60 days before
777	a scheduled election, the association shall mail, deliver, or
778	transmit, whether by separate association mailing, delivery, or
779	electronic transmission or included in another association
780	mailing, delivery, or electronic transmission, including
781	regularly published newsletters, to each shareholder unit owner
782	entitled to vote, a first notice of the date of the election.
783	Any shareholder unit owner or other eligible person desiring to
784	be a candidate for the board of administration shall give
785	written notice to the association not less than 40 days before a
786	scheduled election. Together with the written notice and agenda
787	as set forth in this section, the association shall mail,
788	deliver, or electronically transmit a second notice of election
789	to all shareholders unit owners entitled to vote therein,
790	together with a ballot which shall list all candidates. Upon
791	request of a candidate, the association shall include an
792	information sheet, no larger than 81/2 inches by 11 inches,
793	which must be furnished by the candidate not less than 35 days
794	prior to the election, to be included with the mailing,
795	delivery, or electronic transmission of the ballot, with the
796	costs of mailing, delivery, or transmission and copying to be
797	borne by the association. The association has no liability for
798	the contents of the information sheets provided by the
799	candidates. In order to reduce costs, the association may print
800	or duplicate the information sheets on both sides of the paper.
801	The division shall by rule establish voting procedures
802	consistent with the provisions contained herein, including rules
803	establishing procedures for giving notice by electronic
804	transmission and rules providing for the secrecy of ballots.
805	Elections shall be decided by a plurality of those ballots cast.
806	There shall be no quorum requirement. However, at least 20
807	percent of the eligible voters must cast a ballot in order to
808	have a valid election of members of the board of administration.
809	No shareholder unit owner shall permit any other person to vote
810	his or her ballot, and any such ballots improperly cast shall be
811	deemed invalid. A shareholder unit owner who needs assistance in
812	casting the ballot for the reasons stated in s. 101.051 may
813	obtain assistance in casting the ballot. Any shareholder unit
814	owner violating this provision may be fined by the association
815	in accordance with s. 719.303. The regular election shall occur
816	on the date of the annual meeting. The provisions of this
817	subparagraph shall not apply to timeshare cooperatives.
818	Notwithstanding the provisions of this subparagraph, an election
819	and balloting are not required unless more candidates file a
820	notice of intent to run or are nominated than vacancies exist on
821	the board.
822	2.  Any approval by shareholders unit owners called for by
823	this chapter, or the applicable cooperative documents, shall be
824	made at a duly noticed meeting of shareholders unit owners and
825	shall be subject to all requirements of this chapter or the
826	applicable cooperative documents relating to shareholder unit
827	owner decisionmaking, except that shareholders unit owners may
828	take action by written agreement, without meetings, on matters
829	for which action by written agreement without meetings is
830	expressly allowed by the applicable cooperative documents or any
831	Florida statute which provides for the shareholder unit owner
832	action.
833	3.  Shareholders Unit owners may waive notice of specific
834	meetings if allowed by the applicable cooperative documents or
835	any Florida statute. If authorized by the bylaws, notice of
836	meetings of the board of administration, shareholder meetings,
837	except shareholder meetings called to recall board members under
838	paragraph (f), and committee meetings may be given by electronic
839	transmission to shareholders unit owners who consent to receive
840	notice by electronic transmission.
841	4.  Shareholders Unit owners shall have the right to
842	participate in meetings of shareholders unit owners with
843	reference to all designated agenda items. However, the
844	association may adopt reasonable rules governing the frequency,
845	duration, and manner of shareholder unit owner participation.
846	5.  Any shareholder unit owner may tape record or videotape
847	meetings of the shareholders unit owners subject to reasonable
848	rules adopted by the division.
849
850	Notwithstanding subparagraphs (b)2. and (d)1., an association of
851	10 units or less may, by the affirmative vote of a majority of
852	the total voting interests, provide for a different voting and
853	election procedure in its bylaws, which vote may be by a proxy
854	specifically delineating the different voting and election
855	procedures. The different voting and election procedures may
856	provide for elections to be conducted by limited or general
857	proxy.
858	(e)  Budget procedures.--
859	1.  The board of administration shall mail, hand deliver,
860	or electronically transmit to each shareholder unit owner at the
861	address last furnished to the association, a meeting notice and
862	copies of the proposed annual budget of common expenses to the
863	shareholders unit owners not less than 14 days prior to the
864	meeting at which the budget will be considered. Evidence of
865	compliance with this 14-day notice must be made by an affidavit
866	executed by an officer of the association or the manager or
867	other person providing notice of the meeting and filed among the
868	official records of the association. The meeting must be open to
869	the shareholders unit owners.
870	2.  If an adopted budget requires assessment against the
871	shareholders unit owners in any fiscal or calendar year which
872	exceeds 115 percent of the assessments for the preceding year,
873	the board upon written application of 10 percent of the voting
874	interests to the board, shall call a special meeting of the
875	shareholders unit owners within 30 days, upon not less than 10
876	days' written notice to each shareholder unit owner. At the
877	special meeting, shareholders unit owners shall consider and
878	enact a budget. Unless the bylaws require a larger vote, the
879	adoption of the budget requires a vote of not less than a
880	majority of all the voting interests.
881	3.  The board of administration may, in any event, propose
882	a budget to the shareholders unit owners at a meeting of members
883	or by writing, and if the budget or proposed budget is approved
884	by the shareholders unit owners at the meeting or by a majority
885	of all voting interests in writing, the budget is adopted. If a
886	meeting of the shareholders unit owners has been called and a
887	quorum is not attained or a substitute budget is not adopted by
888	the shareholders unit owners, the budget adopted by the board of
889	directors goes into effect as scheduled.
890	4.  In determining whether assessments exceed 115 percent
891	of similar assessments for prior years, any authorized
892	provisions for reasonable reserves for repair or replacement of
893	cooperative property, anticipated expenses by the association
894	which are not anticipated to be incurred on a regular or annual
895	basis, or assessments for betterments to the cooperative
896	property must be excluded from computation. However, as long as
897	the developer is in control of the board of administration, the
898	board may not impose an assessment for any year greater than 115
899	percent of the prior fiscal or calendar year's assessment
900	without approval of a majority of all voting interests.
901	(f)  Recall of board members.--Subject to the provisions of
902	s. 719.301, any member of the board of administration may be
903	recalled and removed from office with or without cause by the
904	vote or agreement in writing by a majority of all the voting
905	interests. A special meeting of the voting interests to recall
906	any member of the board of administration may be called by 10
907	percent of the shareholders unit owners giving notice of the
908	meeting as required for a meeting of shareholders unit owners,
909	and the notice shall state the purpose of the meeting.
910	Electronic transmission may not be used as a method of giving
911	notice of a meeting called in whole or in part for this purpose.
912	1.  If the recall is approved by a majority of all voting
913	interests by a vote at a meeting, the recall shall be effective
914	as provided herein. The board shall duly notice and hold a board
915	meeting within 5 full business days of the adjournment of the
916	shareholder unit owner meeting to recall one or more board
917	members. At the meeting, the board shall either certify the
918	recall, in which case such member or members shall be recalled
919	effective immediately and shall turn over to the board within 5
920	full business days any and all records and property of the
921	association in their possession, or shall proceed as set forth
922	in subparagraph 3.
923	2.  If the proposed recall is by an agreement in writing by
924	a majority of all voting interests, the agreement in writing or
925	a copy thereof shall be served on the association by certified
926	mail or by personal service in the manner authorized by chapter
927	48 and the Florida Rules of Civil Procedure. The board of
928	administration shall duly notice and hold a meeting of the board
929	within 5 full business days after receipt of the agreement in
930	writing. At the meeting, the board shall either certify the
931	written agreement to recall members of the board, in which case
932	such members shall be recalled effective immediately and shall
933	turn over to the board, within 5 full business days, any and all
934	records and property of the association in their possession, or
935	proceed as described in subparagraph 3.
936	3.  If the board determines not to certify the written
937	agreement to recall members of the board, or does not certify
938	the recall by a vote at a meeting, the board shall, within 5
939	full business days after the board meeting, file with the
940	division a petition for binding arbitration pursuant to the
941	procedures of s. 719.1255. For purposes of this paragraph, the
942	shareholders unit owners who voted at the meeting or who
943	executed the agreement in writing shall constitute one party
944	under the petition for arbitration. If the arbitrator certifies
945	the recall as to any member of the board, the recall shall be
946	effective upon mailing of the final order of arbitration to the
947	association. If the association fails to comply with the order
948	of the arbitrator, the division may take action pursuant to s.
949	719.501. Any member so recalled shall deliver to the board any
950	and all records and property of the association in the member's
951	possession within 5 full business days of the effective date of
952	the recall.
953	4.  If the board fails to duly notice and hold a board
954	meeting within 5 full business days of service of an agreement
955	in writing or within 5 full business days of the adjournment of
956	the shareholder unit owner recall meeting, the recall shall be
957	deemed effective and the board members so recalled shall
958	immediately turn over to the board any and all records and
959	property of the association.
960	5.  If a vacancy occurs on the board as a result of a
961	recall or removal and less than a majority of the board members
962	are removed, the vacancy may be filled by the affirmative vote
963	of a majority of the remaining directors, notwithstanding any
964	provision to the contrary contained in this chapter. If
965	vacancies occur on the board as a result of a recall and a
966	majority or more of the board members are removed, the vacancies
967	shall be filled in accordance with procedural rules to be
968	adopted by the division, which rules need not be consistent with
969	this chapter. The rules must provide procedures governing the
970	conduct of the recall election as well as the operation of the
971	association during the period after a recall but prior to the
972	recall election.
973	(g)  Common expenses.--The manner of collecting from the
974	shareholders unit owners their shares of the common expenses
975	shall be stated. Assessments shall be made against shareholders
976	unit owners not less frequently than quarterly, in an amount no
977	less than is required to provide funds in advance for payment of
978	all of the anticipated current operating expense and for all of
979	the unpaid operating expense previously incurred. Nothing in
980	this paragraph shall preclude the right of an association to
981	accelerate assessments of a shareholder an owner delinquent in
982	payment of common expenses in actions taken pursuant to s.
983	719.104(5)(4).
984	(h)  Amendment of bylaws.--
985	1.  The method by which the bylaws may be amended
986	consistent with the provisions of this chapter shall be stated.
987	If the bylaws fail to provide a method of amendment, the bylaws
988	may be amended if the amendment is approved by shareholders
989	owners of not less than two-thirds of the voting interests.
990	2.  No bylaw shall be revised or amended by reference to
991	its title or number only. Proposals to amend existing bylaws
992	shall contain the full text of the bylaws to be amended; new
993	words shall be inserted in the text underlined, and words to be
994	deleted shall be lined through with hyphens. However, if the
995	proposed change is so extensive that this procedure would
996	hinder, rather than assist, the understanding of the proposed
997	amendment, it is not necessary to use underlining and hyphens as
998	indicators of words added or deleted, but, instead, a notation
999	must be inserted immediately preceding the proposed amendment in
1000	substantially the following language: "Substantial rewording of
1001	bylaw. See bylaw _____ for present text."
1002	3.  Nonmaterial errors or omissions in the bylaw process
1003	shall not invalidate an otherwise properly promulgated
1004	amendment.
1005	4.  If the bylaws provide for amendment by the board of
1006	directors, no bylaw may be amended unless it is heard and
1007	noticed at two consecutive meetings of the board of directors
1008	that are at least 1 week apart.
1009	(i)  Transfer fees.--No charge may be made by the
1010	association or any body thereof in connection with the sale,
1011	mortgage, lease, sublease, or other transfer of a unit unless
1012	the association is required to approve such transfer and a fee
1013	for such approval is provided for in the cooperative documents.
1014	Any such fee may be preset, but in no event shall it exceed $100
1015	per applicant other than husband/wife or parent/dependent child,
1016	which are considered one applicant. However, if the lease or
1017	sublease is a renewal of a lease or sublease with the same
1018	lessee or sublessee, no charge shall be made. Nothing in this
1019	paragraph shall be construed to prohibit an association from
1020	requiring as a condition to permitting the letting or renting of
1021	a unit, when the association has such authority in the
1022	documents, the depositing into an escrow account maintained by
1023	the association a security deposit in an amount not to exceed
1024	the equivalent of 1 month's rent. The security deposit shall
1025	protect against damages to the common areas or cooperative
1026	property. Within 15 days after a tenant vacates the premises,
1027	the association shall refund the full security deposit or give
1028	written notice to the tenant of any claim made against the
1029	security. Disputes under this paragraph shall be handled in the
1030	same fashion as disputes concerning security deposits under s.
1031	83.49.
1032	(j)  Annual budget.--
1033	1.  The proposed annual budget of estimated revenues and
1034	common expenses shall be detailed and shall show the amounts
1035	budgeted by accounts and expense classifications, including, if
1036	applicable, but not limited to, those expenses listed in s.
1037	719.504(20).
1038	2.  In addition to annual operating expenses, the budget
1039	shall include reserve accounts for capital expenditures and
1040	deferred maintenance. These accounts shall include, but not be
1041	limited to, roof replacement, building painting, and pavement
1042	resurfacing, regardless of the amount of deferred maintenance
1043	expense or replacement cost, and for any other items for which
1044	the deferred maintenance expense or replacement cost exceeds
1045	$10,000. The amount to be reserved shall be computed by means of
1046	a formula which is based upon estimated remaining useful life
1047	and estimated replacement cost or deferred maintenance expense
1048	of each reserve item. The association may adjust replacement
1049	reserve assessments annually to take into account any changes in
1050	estimates or extension of the useful life of a reserve item
1051	caused by deferred maintenance. This paragraph shall not apply
1052	to any budget in which the members of an association have, at a
1053	duly called meeting of the association, determined for a fiscal
1054	year to provide no reserves or reserves less adequate than
1055	required by this subsection. However, prior to turnover of
1056	control of an association by a developer to shareholders unit
1057	owners other than a developer pursuant to s. 719.301, the
1058	developer may vote to waive the reserves or reduce the funding
1059	of reserves for the first 2 years of the operation of the
1060	association after which time reserves may only be waived or
1061	reduced upon the vote of a majority of all nondeveloper voting
1062	interests voting in person or by limited proxy at a duly called
1063	meeting of the association. If a meeting of the shareholders
1064	unit owners has been called to determine to provide no reserves,
1065	or reserves less adequate than required, and such result is not
1066	attained or a quorum is not attained, the reserves as included
1067	in the budget shall go into effect.
1068	3.  Reserve funds and any interest accruing thereon shall
1069	remain in the reserve account or accounts, and shall be used
1070	only for authorized reserve expenditures unless their use for
1071	other purposes is approved in advance by a vote of the majority
1072	of the voting interests, voting in person or by limited proxy at
1073	a duly called meeting of the association. Prior to turnover of
1074	control of an association by a developer to shareholders unit
1075	owners other than the developer under s. 719.301, the developer
1076	may not vote to use reserves for purposes other than that for
1077	which they were intended without the approval of a majority of
1078	all nondeveloper voting interests, voting in person or by
1079	limited proxy at a duly called meeting of the association.
1080	4.  The only voting interests which are eligible to vote on
1081	questions that involve waiving or reducing the funding of
1082	reserves, or using existing reserve funds for purposes other
1083	than purposes for which the reserves were intended, are the
1084	voting interests of the units subject to assessment to fund the
1085	reserves in question. Proxy questions relating to waiving or
1086	reducing the funding of reserves or using existing reserve funds
1087	for purposes other than purposes for which the reserves were
1088	intended shall contain the following statement in capitalized,
1089	bold letters in a font size larger than any other used on the
1090	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1091	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1092	RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED
1093	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1094	(k)  Insurance or fidelity bonds.--The association shall
1095	obtain and maintain adequate insurance or fidelity bonding of
1096	all persons who control or disburse funds of the association.
1097	The insurance policy or fidelity bond must cover the maximum
1098	funds that will be in the custody of the association or its
1099	management agent at any one time. As used in this paragraph, the
1100	term "persons who control or disburse funds of the association"
1101	includes, but is not limited to, those individuals authorized to
1102	sign checks, and the president, secretary, and treasurer of the
1103	association. The association shall bear the cost of bonding and
1104	insurance.
1105	(l)  Arbitration.--There shall be a provision for mandatory
1106	nonbinding arbitration of internal disputes arising from the
1107	operation of the cooperative in accordance with s. 719.1255.
1108	(m)  Common areas; limited power to convey.--
1109	1.  The bylaws shall include a provision granting the
1110	association a limited power to convey a portion of the common
1111	areas to a condemning authority for the purpose of providing
1112	utility easements, right-of-way expansion, or other public
1113	purposes, whether negotiated or as a result of eminent domain
1114	proceedings.
1115	2.  In any case in which the bylaws are silent as to the
1116	association's power to convey common areas as described in
1117	subparagraph 1., the bylaws shall be deemed to include the
1118	provision described in subparagraph 1.
1119	(n)  Director or officer delinquencies.--A director or
1120	officer more than 90 days delinquent in the payment of regular
1121	assessments shall be deemed to have abandoned his or her office,
1122	creating a vacancy in the office to be filled according to law.
1123	(o)  Director or officer offenses.--A director or officer
1124	charged by information or indictment with a felony theft or
1125	embezzlement offense involving the association's funds or
1126	property shall be removed from office, creating a vacancy in the
1127	office to be filled according to law. While such director or
1128	officer has such criminal charge pending in the state or federal
1129	court system, he or she may not be appointed or elected to a
1130	position as a director or officer. However, should the charges
1131	be resolved without a finding of guilt, the director or officer
1132	shall be reinstated for the remainder of his or her term of
1133	office, if any.
1134	(p)  Qualifications of directors.--In addition to any other
1135	requirement for office in statute, a person running for or
1136	seeking appointment to the board must meet the following
1137	qualifications:
1138	1.  In a cooperative association of 10 or more units, only
1139	one individual coowner of a unit may serve on the board of
1140	administration.
1141	2.  No person may serve as a director of any cooperative
1142	association in the state if restricted from serving by action of
1143	the division pursuant to s. 719.501.
1144	3.  A person who has been convicted of any felony in this
1145	state or in a United States District or Territorial Court, or
1146	who has been convicted of any offense in another jurisdiction
1147	that would be considered a felony if committed in this state, is
1148	not eligible for board membership unless such felon's civil
1149	rights have been restored for a period of no less than 5 years
1150	as of the date on which such person seeks election to the board.
1151	4.  A director more than 90 days delinquent in the payment
1152	of regular assessments shall be deemed to have abandoned his or
1153	her office.
1154	5.  Within 30 days after being elected or appointed to the
1155	board of directors, a director shall certify in writing to the
1156	secretary of the association that he or she has read parts I and
1157	III of chapter 719 and the association's cooperative documents,
1158	bylaws, and current written policies. The director shall further
1159	certify that he or she will work to uphold such documents and
1160	policies to the best of his or her ability, and that he or she
1161	will faithfully discharge his or her fiduciary responsibility to
1162	the association's members. If the division finds that a director
1163	has falsely certified that he or she has read the required
1164	statutes and documents, the division shall order the director
1165	removed the board and shall order the director to reimburse the
1166	division for the cost of prosecution and hearing.
1167	6.  After turnover of the association pursuant to s.
1168	719.301(4), a director must:
1169	a.  If the unit is owned by an individual or individuals,
1170	be one of those individuals.
1171	b.  If the unit is owned by a trust, be an individual
1172	qualified pursuant to s. 617.0802.
1173
1174	These qualifications shall operate on a continuing basis, and
1175	upon the failure of a director at any time to meet a
1176	qualification, the director shall be removed from office and
1177	that office shall be deemed vacant.
1178	(q)  Borrowing.--The borrowing of funds or committing to a
1179	line of credit by the board of administration shall be
1180	considered a special assessment, and any meeting of the board of
1181	administration to discuss such matters shall be noticed as
1182	provided in paragraph (c). The board shall not have the
1183	authority to enter into a line of credit or borrow funds for any
1184	purpose unless the specific use of the funds from the line of
1185	credit or loan is set forth in the notice of meeting with the
1186	same specificity as required for a special assessment or unless
1187	the borrowing or line of credit has received the prior approval
1188	of not less than two-thirds of the voting interests of the
1189	association.
1190	(2)  OPTIONAL PROVISIONS.--The bylaws may provide for the
1191	following:
1192	(a)  Administrative rules.--A method of adopting and of
1193	amending administrative rules and regulations governing the
1194	details of the operation and use of the common areas.
1195	(b)  Use and maintenance restrictions.--Restrictions on,
1196	and requirements for, the use, maintenance, and appearance of
1197	the units and the use of the common areas, not inconsistent with
1198	the cooperative documents, designed to prevent unreasonable
1199	interference with the use of the units and common areas.
1200	(c)  Notice of meetings.--Provisions for giving notice by
1201	electronic transmissions in a manner authorized by law of
1202	meetings of the board of directors and committees and of annual
1203	and special meetings of the members.
1204	(d)  Other matters.--Other provisions not inconsistent with
1205	this chapter or with the cooperative documents as may be
1206	desired.
1207	Section 5.  Section 719.1064, Florida Statutes, is
1208	repealed.
1209	Section 6.  Paragraphs (b) and (c) of subsection (1) and
1210	subsection (2) of section 719.107, Florida Statutes, are
1211	amended, and subsection (3) is added to that section, to read:
1212	719.107  Common expenses; assessment.--
1213	(1)
1214	(b)  If so provided in the bylaws, the cost of a master
1215	antenna television system or duly franchised cable television
1216	service obtained pursuant to a bulk contract shall be deemed a
1217	common expense, and if not obtained pursuant to a bulk contract,
1218	such cost shall be considered common expense if it is designated
1219	as such in a written contract between the board of
1220	administration and the company providing the master television
1221	antenna system or the cable television service. The contract
1222	shall be for a term of not less than 2 years.
1223	1.  Any contract made by the board after April 2, 1992, for
1224	a community antenna system or duly franchised cable television
1225	service may be canceled by a majority of the voting interests
1226	present at the next regular or special meeting of the
1227	association. Any member may make a motion to cancel the
1228	contract, but if no motion is made or if such motion fails to
1229	obtain the required majority at the next regular or special
1230	meeting, whichever is sooner, following the making of the
1231	contract, then such contract shall be deemed ratified for the
1232	term therein expressed.
1233	2.  Any such contract shall provide, and shall be deemed to
1234	provide if not expressly set forth, that any hearing impaired or
1235	legally blind shareholder unit owner who does not occupy the
1236	unit with a nonhearing impaired or sighted person may
1237	discontinue the service without incurring disconnect fees,
1238	penalties, or subsequent service charges, and as to such units,
1239	the shareholders owners shall not be required to pay any common
1240	expenses charge related to such service. If less than all
1241	members of an association share the expenses of cable
1242	television, the expense shall be shared equally by all
1243	participating shareholders unit owners. The association may use
1244	the provisions of s. 719.108 to enforce payment of the shares of
1245	such costs by the shareholders unit owners receiving cable
1246	television.
1247	(c)  If any unpaid share of common expenses or assessments
1248	is extinguished by foreclosure of a superior lien or by a deed
1249	in lieu of foreclosure thereof, the unpaid share of common
1250	expenses or assessments are common expenses collectible from all
1251	the shareholders unit owners in the cooperative in which the
1252	unit is located.
1253	(2)  Funds for the payment of common expenses shall be
1254	collected by assessments against shareholders unit owners in the
1255	proportions or percentages of sharing common expenses provided
1256	in the cooperative documents.
1257	(3)  The expense of installation, replacement, operation,
1258	repair, and maintenance of hurricane shutters or other hurricane
1259	protection by the board pursuant to s. 719.113(5) shall
1260	constitute a common expense as defined in this section and shall
1261	be collected as provided in this section if the association is
1262	responsible for the maintenance, repair, and replacement of the
1263	hurricane shutters or other hurricane protection pursuant to the
1264	cooperative documents. However, if the maintenance, repair, and
1265	replacement of the hurricane shutters or other hurricane
1266	protection is the responsibility of the shareholders pursuant to
1267	the cooperative documents, the cost of the installation of the
1268	hurricane shutters or other hurricane protection shall not be a
1269	common expense, but shall be charged individually to the
1270	shareholders based on the cost of installation of the hurricane
1271	shutters or other hurricane protection appurtenant to the unit.
1272	Notwithstanding the provisions of s. 719.108(8), and regardless
1273	of whether or not the cooperative documents requires the
1274	association or shareholders maintain, repair, or replace
1275	hurricane shutters or other hurricane protection, a shareholder
1276	who has previously installed hurricane shutters in accordance
1277	with s. 719.113(5), other hurricane protection, or laminated
1278	glass architecturally designed to function as hurricane
1279	protection, which hurricane shutters or other hurricane
1280	protection or laminated glass comply with the current applicable
1281	building code, shall receive a credit equal to the pro rata
1282	portion of the assessed installation cost assigned to each unit.
1283	However, such shareholder shall remain responsible for the pro
1284	rata share of expenses for hurricane shutters or other hurricane
1285	protection installed on common areas by the board pursuant to s.
1286	719.113(5), and shall remain responsible for a pro rata share of
1287	the expense of the replacement, operation, repair, and
1288	maintenance of such shutters or other hurricane protection.
1289	Section 7.  Section 719.108, Florida Statutes, is amended
1290	to read:
1291	719.108  Rents and assessments; liability; lien and
1292	priority; interest; collection; cooperative ownership.--
1293	(1)(a)  A shareholder unit owner, regardless of how title
1294	is acquired, including, without limitation, a purchaser at a
1295	judicial sale or by deed in lieu of foreclosure, shall be liable
1296	for all rents and assessments coming due while the shareholder
1297	unit owner is in exclusive possession of a unit. In a voluntary
1298	transfer, The shareholder unit owner in exclusive possession
1299	shall be jointly and severally liable with the previous
1300	shareholder unit owner for all unpaid rents and assessments
1301	against the previous shareholder unit owner for his or her share
1302	of the common expenses up to the time of the transfer, without
1303	prejudice to the rights of the shareholder unit owner in
1304	exclusive possession to recover from a the previous shareholder
1305	unit owner the amounts paid by the shareholder unit owner in
1306	exclusive possession therefor.
1307	(b)  The liability of a first mortgagee or its successor or
1308	assignees who acquire title to a unit by foreclosure or by deed
1309	in lieu of foreclosure for the unpaid assessments that became
1310	due prior to the mortgagee's acquisition of title is limited to
1311	the lesser of:
1312	1.  The unit's unpaid common expenses and regular periodic
1313	assessments which accrued or came due during the 6 months
1314	immediately preceding the acquisition of title and for which
1315	payment in full has not been received by the association; or
1316	2.  One percent of the original mortgage debt. The
1317	provisions of this paragraph apply only if the first mortgagee
1318	joined the association as a defendant in the foreclosure action.
1319	Joinder of the association is not required if, on the date the
1320	complaint is filed, the association was dissolved or did not
1321	maintain an office or agent for service of process at a location
1322	which was known to or reasonably discoverable by the mortgagee.
1323
1324	(c)  The person acquiring title shall pay the amount owed
1325	to the association within 30 days after transfer of title.
1326	Failure to pay the full amount when due shall entitle the
1327	association to record a claim of lien against the parcel and
1328	proceed in the same manner as provided in this section for the
1329	collection of unpaid assessments.
1330	(d)  The provisions of this subsection are intended to
1331	clarify existing law and shall not be available in any case
1332	where the unpaid assessments sought to be recovered by the
1333	association are secured by a lien recorded prior to the
1334	recording of the mortgage. Notwithstanding the provisions of
1335	chapter 48, the association shall be a proper party to intervene
1336	in any foreclosure proceeding to seek equitable relief. For
1337	purposes of this subsection, the term "successor or assignee" as
1338	used with respect to a first mortgagee includes only a
1339	subsequent holder of the first mortgage.
1340	(2)  The liability for rents and assessments may not be
1341	avoided by waiver of the use or enjoyment of any common areas or
1342	by abandonment of the unit for which the rents and assessments
1343	are made.
1344	(3)  Rents and assessments, and installments on them, not
1345	paid when due bear interest at the rate provided in the
1346	cooperative documents from the date due until paid. This rate
1347	may not exceed the rate allowed by law, and, if no rate is
1348	provided in the cooperative documents, then interest shall
1349	accrue at 18 percent per annum. Also, if the cooperative
1350	documents or bylaws so provide, the association may charge an
1351	administrative late fee in addition to such interest, in an
1352	amount not to exceed the greater of $25 or 5 percent of each
1353	installment of the assessment for each delinquent installment
1354	that the payment is late. Any payment received by an association
1355	shall be applied first to any interest accrued by the
1356	association, then to any administrative late fee, then to any
1357	costs and reasonable attorney's fees incurred in collection, and
1358	then to the delinquent assessment. The foregoing shall be
1359	applicable notwithstanding any restrictive endorsement,
1360	designation, or instruction placed on or accompanying a payment.
1361	A late fee is not subject to chapter 687 or s. 719.303(3).
1362	(4)  If the association is authorized by the cooperative
1363	documents or bylaws to approve or disapprove a proposed lease of
1364	a unit, the grounds for disapproval may include, but are not
1365	limited to, a shareholder being delinquent in the payment of an
1366	assessment at the time approval is sought.
1367	(5)(a)(4)  The association has shall have a lien on each
1368	cooperative parcel to secure the payment of for any unpaid rents
1369	and assessments, plus interest, against the shareholder who owns
1370	unit owner of the cooperative parcel. If authorized by the
1371	cooperative documents, said lien shall also secure reasonable
1372	attorney's fees incurred by the association incident to the
1373	collection of the rents and assessments or enforcement of such
1374	lien. The lien is effective from and shall relate back to and
1375	after the recording of the cooperative documents a claim of lien
1376	in the public records in the county in which the cooperative
1377	parcel is located which states the description of the
1378	cooperative parcel, the name of the unit owner, the amount due,
1379	and the due dates.
1380	(b)  To be valid, a claim of lien must state the
1381	description of the cooperative parcel, the name of the record
1382	owner, the name and address of the association, the amount due,
1383	and the due dates. The claim of lien must be executed and
1384	acknowledged by an officer or authorized agent of the
1385	association. The lien shall expire if a claim of lien is not
1386	filed within 1 year after the date the assessment was due, and
1387	no such lien shall continue for a longer period than 1 year
1388	after the claim of lien has been recorded unless, within that
1389	time, an action to enforce the lien is commenced in a court of
1390	competent jurisdiction. The 1-year period shall automatically be
1391	extended for any length of time during which the association is
1392	prevented from filing a foreclosure action by an automatic stay
1393	resulting from a bankruptcy petition filed by the shareholder or
1394	any other person claiming an interest in the parcel. The claim
1395	of lien shall secure all unpaid assessments which are due and
1396	which may accrue subsequent to the recording of the claim of
1397	lien and prior to the entry of a certificate of title, as well
1398	as interest and all reasonable costs and attorney's fees
1399	incurred by the association incident to the collection process.
1400	A notice of delinquency sent to a shareholder shall provide an
1401	overall total of assessments claimed by the association, and
1402	shall specify for each assessment or charge the date of the
1403	assessment or charge, the principal balance owed for the
1404	assessment or charge, and affiliated late fees or collection
1405	charges. Costs to a shareholder secured by the association's
1406	claim of lien with regard to collection letters or other
1407	collection efforts by management companies or licensed managers
1408	as to any delinquent installment of an assessment may not exceed
1409	$50, provided, however, that there shall be no charge for the
1410	first notice of a delinquency to the shareholder. Upon payment
1411	in full, the person making the payment is entitled to a
1412	satisfaction of the lien. No lien may be filed by the
1413	association against a cooperative parcel until 30 days after the
1414	date on which a notice of intent to file a lien has been served
1415	on the unit owner of the cooperative parcel by certified mail or
1416	by personal service in the manner authorized by chapter 48 and
1417	the Florida Rules of Civil Procedure.
1418	(c)  By recording a notice in substantially the following
1419	form, a shareholder or the shareholder's agent or attorney may
1420	require the association to enforce a recorded claim of lien
1421	against his or her cooperative parcel:
1422
1423	NOTICE OF CONTEST OF LIEN
1424
1425	TO:   (Name and address of association)   You are notified
1426	that the undersigned contests the claim of lien filed by you on
1427	_____,   (year)  , and recorded in Official Records Book _____
1428	at Page _____, of the public records of _____ County, Florida,
1429	and that the time within which you may file suit to enforce your
1430	lien is limited to 90 days after the date of service of this
1431	notice. Executed this _____ day of _____,   (year)  .
1432
1433	Signed:   (Shareholder or Attorney)
1434
1435	After notice of contest of lien has been recorded, the clerk of
1436	the circuit court shall mail a copy of the recorded notice to
1437	the association by certified mail, return receipt requested, at
1438	the address shown in the claim of lien or most recent amendment
1439	to the claim of lien and shall certify to the service on the
1440	face of the notice. Service is complete upon mailing. After
1441	service, the association has 90 days in which to file an action
1442	to enforce the lien; and, if the action is not filed within the
1443	90-day period, the lien is void. However, the 90-day period
1444	shall be extended for any length of time that the association is
1445	prevented from filing its action because of an automatic stay
1446	resulting from the filing of a bankruptcy petition by the
1447	shareholder or by any other person claiming an interest in the
1448	parcel.
1449	(6)(a)(5)  Liens for rents and assessments may be
1450	foreclosed by suit brought in the name of the association, in
1451	like manner as a foreclosure of a mortgage on real property. In
1452	any foreclosure, the shareholder unit owner shall pay a
1453	reasonable rental for the cooperative parcel, if so provided in
1454	the cooperative documents, and the plaintiff in the foreclosure
1455	is entitled to the appointment of a receiver to collect the
1456	rent. The association has the power, unless prohibited by the
1457	cooperative documents, to bid on the cooperative parcel at the
1458	foreclosure sale and to acquire and hold, lease, mortgage, or
1459	convey it. Suit to recover a money judgment for unpaid rents and
1460	assessments may be maintained without waiving the lien securing
1461	them.
1462	(b)  No foreclosure judgment may be entered until at least
1463	30 days after the association gives written notice to the
1464	shareholder of its intention to foreclose its lien to collect
1465	the unpaid rents and assessments. If this notice is not given at
1466	least 30 days before the foreclosure action is filed, and if the
1467	unpaid rents and assessments, including those coming due after
1468	the claim of lien is recorded, are paid before the entry of a
1469	final judgment of foreclosure, the association shall not recover
1470	attorney's fees or costs. The notice must be given by delivery
1471	of a copy of it to the shareholder or by certified or registered
1472	mail, return receipt requested, addressed to the shareholder at
1473	his or her last known address; and, upon such mailing, the
1474	notice shall be deemed to have been given, and the court shall
1475	proceed with the foreclosure action and may award attorney's
1476	fees and costs as permitted by law. The notice requirements of
1477	this paragraph are satisfied if the shareholder records a notice
1478	of contest of lien as provided in subsection (5). The notice
1479	requirements of this paragraph do not apply if an action to
1480	foreclose a mortgage on the cooperative unit is pending before
1481	any court; if the rights of the association would be affected by
1482	such foreclosure; and if actual, constructive, or substitute
1483	service of process has been made on the shareholder.
1484	(c)  If the shareholder remains in possession of the unit
1485	after a foreclosure judgment has been entered, the court, in its
1486	discretion, may require the shareholder to pay a reasonable
1487	rental for the unit. If the unit is rented or leased during the
1488	pendency of the foreclosure action, the association is entitled
1489	to the appointment of a receiver to collect the rent. The
1490	expenses of the receiver shall be paid by the party which does
1491	not prevail in the foreclosure action.
1492	(d)  The association has the power to purchase the
1493	cooperative unit at the foreclosure sale and to hold, lease,
1494	mortgage, or convey it.
1495	(7)  Within 15 days after receiving a written request
1496	therefor from a shareholder or his or her designee, or a unit
1497	mortgagee or his or her designee, the association shall provide
1498	a certificate signed by an officer or agent of the association
1499	stating all assessments and other moneys owed to the association
1500	by the shareholder with respect to the cooperative parcel.
1501	(a)  Any person other than the shareholder who relies upon
1502	such certificate shall be protected thereby.
1503	(b)  A summary proceeding pursuant to s. 51.011 may be
1504	brought to compel compliance with this subsection, and in any
1505	such action the prevailing party is entitled to recover
1506	reasonable attorney's fees.
1507	(c)  Notwithstanding any limitation on transfer fees
1508	contained in s. 719.106(1)(i), the association or its authorized
1509	agent may charge a reasonable fee for the preparation of the
1510	certificate. The amount of the fee must be included on the
1511	certificate.
1512	(d)  The authority to charge a fee for the certificate
1513	shall be established by a written resolution adopted by the
1514	board or provided by a written management, bookkeeping, or
1515	maintenance contract and is payable upon the preparation of the
1516	certificate. If the certificate is requested in conjunction with
1517	the sale or mortgage of a unit but the closing does not occur
1518	and no later than 30 days after the closing date for which the
1519	certificate was sought the preparer receives a written request,
1520	accompanied by reasonable documentation, that the sale did not
1521	occur from a payor that is not the shareholder, the fee shall be
1522	refunded to that payor within 30 days after receipt of the
1523	request. The refund is the obligation of the shareholder, and
1524	the association may collect the refund from that shareholder in
1525	the same manner as an assessment as provided in this section.
1526	(6)  Within 15 days after request by a unit owner or
1527	mortgagee, the association shall provide a certificate stating
1528	all assessments and other moneys owed to the association by the
1529	unit owner with respect to the cooperative parcel. Any person
1530	other than the unit owner who relies upon such certificate shall
1531	be protected thereby. Notwithstanding any limitation on transfer
1532	fees contained in s. 719.106(1)(i), the association or its
1533	authorized agent may charge a reasonable fee for the preparation
1534	of the certificate.
1535	(7)  The remedies provided in this section do not exclude
1536	other remedies provided by the cooperative documents and
1537	permitted by law.
1538	(8)(a)  No shareholder unit owner may be excused from the
1539	payment of his or her share of the rents or assessments of a
1540	cooperative unless all shareholders unit owners are likewise
1541	proportionately excused from payment, except as provided in
1542	subsection (6) and in the following cases:
1543	1.  If the cooperative documents so provide, a developer or
1544	other person owning cooperative units offered for sale may be
1545	excused from the payment of the share of the common expenses,
1546	assessments, and rents related to those units for a stated
1547	period of time. The period must terminate no later than the
1548	first day of the fourth calendar month following the month in
1549	which the right of exclusive possession is first granted to a
1550	shareholder unit owner. However, the developer must pay the
1551	portion of common expenses incurred during that period which
1552	exceed the amount assessed against other shareholders unit
1553	owners.
1554	2.  A developer, or other person with an ownership interest
1555	in cooperative units or having an obligation to pay common
1556	expenses, may be excused from the payment of his or her share of
1557	the common expenses which would have been assessed against those
1558	units during the period of time that he or she shall have
1559	guaranteed to each purchaser in the purchase contract or in the
1560	cooperative documents, or by agreement between the developer and
1561	a majority of the shareholders unit owners other than the
1562	developer, that the assessment for common expenses of the
1563	cooperative imposed upon the shareholders unit owners would not
1564	increase over a stated dollar amount and shall have obligated
1565	himself or herself to pay any amount of common expenses incurred
1566	during that period and not produced by the assessments at the
1567	guaranteed level receivable from other shareholders unit owners.
1568	(b)  If the purchase contract, cooperative documents, or
1569	agreement between the developer and a majority of shareholders
1570	unit owners other than the developer provides for the developer
1571	or another person to be excused from the payment of assessments
1572	pursuant to paragraph (a), no funds receivable from shareholders
1573	unit owners payable to the association or collected by the
1574	developer on behalf of the association, other than regular
1575	periodic assessments for common expenses as provided in the
1576	cooperative documents and disclosed in the estimated operating
1577	budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may
1578	be used for payment of common expenses prior to the expiration
1579	of the period during which the developer or other person is so
1580	excused. This restriction applies to funds including, but not
1581	limited to, capital contributions or startup funds collected
1582	from shareholders unit purchasers at closing.
1583	(9)  The specific purposes of any special assessment,
1584	including any contingent special assessment levied in
1585	conjunction with the purchase of an insurance policy authorized
1586	by s. 719.104(3), approved in accordance with the cooperative
1587	documents shall be set forth in a written notice of such
1588	assessment sent or delivered to each shareholder unit owner. The
1589	funds collected pursuant to a special assessment shall be used
1590	only for the specific purpose or purposes set forth in such
1591	notice or returned to the shareholders unit owners. However,
1592	upon completion of such specific purposes, any excess funds
1593	shall be considered common surplus and may, at the discretion of
1594	the board, either be returned to the shareholders unit owners or
1595	applied as a credit toward future assessments.
1596	(10)  During the pendency of any foreclosure action of a
1597	cooperative unit, if the unit is occupied by a tenant and the
1598	shareholder is delinquent in the payment of regular assessments,
1599	the association may demand that the tenant pay to the
1600	association the future regular assessments related to the
1601	cooperative unit. The demand shall be continuing in nature, and
1602	upon demand the tenant shall continue to pay the regular
1603	assessments to the association until the association releases
1604	the tenant or the tenant discontinues tenancy in the unit. The
1605	association shall mail written notice to the shareholder of the
1606	association's demand that the tenant pay regular assessments to
1607	the association. The tenant shall not be liable for increases in
1608	the amount of the regular assessment due unless the tenant was
1609	reasonably notified of the increase prior to the day that the
1610	rent is due. The tenant shall be given a credit against rents
1611	due to the shareholder in the amount of assessments paid to the
1612	association. The association shall, upon request, provide the
1613	tenant with written receipts for payments made. The association
1614	may issue notices under s. 83.56 and may sue for eviction under
1615	ss. 83.59-83.625 as if the association were a landlord under
1616	part II of chapter 83 should the tenant fail to pay an
1617	assessment. However, the association shall not otherwise be
1618	considered a landlord under chapter 83 and shall specifically
1619	not have any duty under s. 83.51. The tenant shall not, by
1620	virtue of payment of assessments, have any of the rights of a
1621	shareholder to vote in any election or to examine the books and
1622	records of the association. A court may supersede the effect of
1623	this subsection by appointing a receiver.
1624	Section 8.  Section 719.113, Florida Statutes, is created
1625	to read:
1626	719.113  Maintenance; limitation upon improvement; display
1627	of flag; hurricane shutters; display of religious decorations.--
1628	(1)  Maintenance of the common areas is the responsibility
1629	of the association. The cooperative documents may provide that
1630	certain limited common areas shall be maintained by those
1631	entitled to use the limited common areas or that the association
1632	shall provide the maintenance, either as a common expense or
1633	with the cost shared only by those entitled to use the limited
1634	common areas. If the maintenance is to be provided by the
1635	association at the expense of only those entitled to use the
1636	limited common areas, the cooperative documents shall describe
1637	in detail the method of apportioning such costs among those
1638	entitled to use the limited common areas. The association may
1639	use the provisions of s. 719.108 to enforce payment of the
1640	shares of such costs by the shareholders entitled to use the
1641	limited common areas.
1642	(2)  Except as otherwise provided in this section, there
1643	shall be no material alteration or substantial additions to the
1644	common areas, except in a manner provided in the cooperative
1645	documents as originally recorded or as amended under the
1646	procedures provided therein. If the cooperative documents as
1647	originally recorded or as amended under the procedures provided
1648	therein do not specify the procedure for approval of material
1649	alterations or substantial additions, 75 percent of the total
1650	voting interests of the association must approve the alterations
1651	or additions. This subsection is intended to clarify existing
1652	law and applies to associations existing on July 1, 2009.
1653	(3)  A shareholder shall not do anything within his or her
1654	unit or on the common areas which would adversely affect the
1655	safety or soundness of the common areas or any portion of the
1656	association property or cooperative property which is to be
1657	maintained by the association.
1658	(4)  Any shareholder may display within the boundaries of
1659	the shareholder's unit one portable, removable United States
1660	flag in a respectful way and, on Armed Forces Day, Memorial Day,
1661	Flag Day, Independence Day, and Veterans' Day, may display in a
1662	respectful way portable, removable official flags, not larger
1663	than 4 1/2 feet by 6 feet, that represent the United States
1664	Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless
1665	of any declaration rules or requirements dealing with flags or
1666	decorations.
1667	(5)  Each board of directors shall adopt hurricane shutter
1668	specifications for each building within each cooperative which
1669	shall include color, style, and other factors deemed relevant by
1670	the board. All specifications adopted by the board shall comply
1671	with the applicable building code.
1672	(a)  The board may, subject to the provisions of s.
1673	719.3026 and the approval of a majority of voting interests of
1674	the condominium, install hurricane shutters or hurricane
1675	protection that complies with or exceeds the applicable building
1676	code, or both, except that a vote of the shareholders is not
1677	required if the maintenance, repair, and replacement of
1678	hurricane shutters or other forms of hurricane protection are
1679	the responsibility of the association pursuant to the
1680	declaration of condominium. However, when hurricane protection
1681	or laminated glass or window film architecturally designed to
1682	function as hurricane protection which complies with or exceeds
1683	the current applicable building code has been previously
1684	installed, the board may not install hurricane shutters or other
1685	hurricane protection. Code-compliant impact glass may be
1686	installed by the association as hurricane protection if the area
1687	in which the glass is to be installed is an area that is the
1688	responsibility of the association. Notwithstanding s.
1689	719.107(3), if a shareholder installed code-compliant impact
1690	glass prior to the association voting to install such glass, and
1691	such glass and the frame thereof complies with the current
1692	applicable building codes and is otherwise in good repair, the
1693	shareholder shall not be required to pay the shareholders' pro
1694	rata share of the cost of installing code-compliant impact glass
1695	in the cooperative association.
1696	(b)  The association shall be responsible for the
1697	maintenance, repair, and replacement of the hurricane shutters
1698	or other hurricane protection authorized by this subsection if
1699	such hurricane shutters or other hurricane protection is the
1700	responsibility of the association pursuant to the declaration of
1701	condominium. If the hurricane shutters or other hurricane
1702	protection authorized by this subsection are the responsibility
1703	of the shareholders pursuant to the cooperative documents, the
1704	responsibility for the maintenance, repair, and replacement of
1705	such items shall be the responsibility of the shareholder.
1706	(c)  The board may operate hurricane shutters installed
1707	pursuant to this subsection without permission of the
1708	shareholders only when such operation is necessary to preserve
1709	and protect the cooperative property and association property.
1710	The installation, replacement, operation, repair, and
1711	maintenance of such shutters in accordance with the procedures
1712	set forth herein shall not be deemed a material alteration to
1713	the common elements or association property within the meaning
1714	of this section.
1715	(d)  Notwithstanding any provision to the contrary in the
1716	cooperative documents, if approval is required by the documents,
1717	a board shall not refuse to approve the installation or
1718	replacement of hurricane shutters by a shareholder conforming to
1719	the specifications adopted by the board.
1720	(6)  As to any cooperative building greater than three
1721	stories in height, at least every 5 years, and within 5 years if
1722	not available for inspection on July 1, 2009, the board shall
1723	have the cooperative building inspected to provide a report
1724	under seal of an architect or engineer authorized to practice in
1725	this state attesting to required maintenance, useful life, and
1726	replacement costs of the common areas. However, if approved by a
1727	majority of the voting interests present at a properly called
1728	meeting of the association, an association may waive this
1729	requirement. Such meeting and approval must occur prior to the
1730	end of the 5-year period and is effective only for that 5-year
1731	period.
1732	(7)  An association may not refuse the request of a
1733	shareholder for a reasonable accommodation for the attachment on
1734	the mantel or frame of the door of the shareholder of a
1735	religious object not to exceed 3 inches wide, 6 inches high, and
1736	1.5 inches deep.
1737	(8)  Notwithstanding the provisions of this section or the
1738	governing documents of a cooperative association, the board of
1739	directors may, without any requirement for approval of the
1740	shareholders, install upon or within the common areas or
1741	association property solar collectors, clotheslines, or other
1742	energy-efficient devices based on renewable resources for the
1743	benefit of the shareholders.
1744	Section 9.  Section 719.117, Florida Statutes, is created
1745	to read:
1746	719.117  Termination of cooperative.--
1747	(1)  LEGISLATIVE FINDINGS.--The Legislature finds that
1748	cooperatives are created as authorized by statute. In
1749	circumstances that may create economic waste, areas of
1750	disrepair, or obsolescence of a cooperative property for its
1751	intended use and thereby lower property tax values, the
1752	Legislature further finds that it is the public policy of this
1753	state to provide by statute a method to preserve the value of
1754	the property interests and the rights of alienation thereof that
1755	shareholders have in the cooperative property before and after
1756	termination. The Legislature further finds that it is contrary
1757	to the public policy of this state to require the continued
1758	operation of a cooperative when to do so constitutes economic
1759	waste or when the ability to do so is made impossible by law or
1760	regulation. This section applies to all cooperatives in this
1761	state in existence on or after July 1, 2009.
1762	(2)  TERMINATION BECAUSE OF ECONOMIC WASTE OR
1763	IMPOSSIBILITY.--
1764	(a)  Notwithstanding any provision to the contrary in the
1765	cooperative documents, the cooperative form of ownership of a
1766	property may be terminated by a plan of termination approved by
1767	the lesser of the lowest percentage of voting interests
1768	necessary to amend the articles of incorporation when:
1769	1.  The total estimated cost of repairs necessary to
1770	restore the improvements to their former condition or bring them
1771	into compliance with applicable laws or regulations exceeds the
1772	combined fair market value of all units in the cooperative after
1773	completion of the repairs; or
1774	2.  It becomes impossible to operate or reconstruct a
1775	cooperative in its prior physical configuration because of land
1776	use laws or regulations.
1777	(b)  Notwithstanding paragraph (a), a cooperative in which
1778	75 percent or more of the units are timeshare units may be
1779	terminated only pursuant to a plan of termination approved by 80
1780	percent of the total voting interests of the association and the
1781	holders of 80 percent of the original principal amount of
1782	outstanding recorded mortgage liens of timeshare estates in the
1783	cooperative, unless the declaration provides for a lower voting
1784	percentage.
1785	(3)  OPTIONAL TERMINATION.--Except as provided in
1786	subsection (2) or unless the declaration provides for a lower
1787	percentage, the cooperative form of ownership of the property
1788	may be terminated pursuant to a plan of termination approved by
1789	at least 80 percent of the total voting interests of the
1790	cooperative if not more than 10 percent of the total voting
1791	interests of the cooperative have rejected the plan of
1792	termination by negative vote or by providing written objections
1793	thereto. This subsection does not apply to cooperatives in which
1794	75 percent or more of the units are timeshare units.
1795	(4)  EXEMPTION.--A plan of termination is not an amendment
1796	subject to s. 719.1055(1).
1797	(5)  MORTGAGE LIENHOLDERS.--Notwithstanding any provision
1798	to the contrary in the declaration or this chapter, approval of
1799	a plan of termination by the holder of a recorded mortgage lien
1800	affecting a cooperative parcel in which fewer than 75 percent of
1801	the units are timeshare units is not required unless the plan of
1802	termination will result in less than the full satisfaction of
1803	the mortgage lien affecting the cooperative parcel. If such
1804	approval is required and not given, a holder of a recorded
1805	mortgage lien who objects to the plan of termination may contest
1806	the plan as provided in subsection (16). At the time of sale,
1807	the lien shall be transferred to the proportionate share of the
1808	proceeds assigned to the cooperative parcel in the plan of
1809	termination or as subsequently modified by the court.
1810	(6)  POWERS IN CONNECTION WITH TERMINATION.--The approval
1811	of the plan of termination does not terminate the association.
1812	The association shall continue in existence following approval
1813	of the plan of termination with all powers and duties it had
1814	before approval of the plan. Notwithstanding any provision to
1815	the contrary in the declaration or bylaws, after approval of the
1816	plan the board shall:
1817	(a)  Employ directors, agents, attorneys, and other
1818	professionals to liquidate or conclude its affairs.
1819	(b)  Conduct the affairs of the association as necessary
1820	for the liquidation or termination.
1821	(c)  Carry out contracts and collect, pay, and settle debts
1822	and claims for and against the association.
1823	(d)  Defend suits brought against the association.
1824	(e)  Sue in the name of the association for all sums due or
1825	owed to the association or to recover any of its property.
1826	(f)  Perform any act necessary to maintain, repair, or
1827	demolish unsafe or uninhabitable improvements or other
1828	cooperative property in compliance with applicable codes.
1829	(g)  Sell at public or private sale or exchange, convey, or
1830	otherwise dispose of assets of the association for an amount
1831	deemed to be in the best interests of the association, and
1832	execute bills of sale and deeds of conveyance in the name of the
1833	association.
1834	(h)  Collect and receive rents, profits, accounts
1835	receivable, income, maintenance fees, special assessments, or
1836	insurance proceeds for the association.
1837	(i)  Contract and do anything in the name of the
1838	association which is proper or convenient to terminate the
1839	affairs of the association.
1840	(7)  NATURAL DISASTERS.--
1841	(a)  If, after a natural disaster, the identity of the
1842	directors or their right to hold office is in doubt, if they are
1843	deceased or unable to act, if they fail or refuse to act, or if
1844	they cannot be located, any interested person may petition the
1845	circuit court to determine the identity of the directors or, if
1846	found to be in the best interests of the shareholders, to
1847	appoint a receiver to conclude the affairs of the association
1848	after a hearing following notice to such persons as the court
1849	directs. Lienholders shall be given notice of the petition and
1850	have the right to propose persons for the consideration by the
1851	court as receiver. If a receiver is appointed, the court shall
1852	direct the receiver to provide to all shareholders written
1853	notice of his or her appointment as receiver. Such notice shall
1854	be mailed or delivered within 10 days after the appointment.
1855	Notice by mail to a shareholder shall be sent to the address
1856	used by the county property appraiser for notice to the
1857	shareholder.
1858	(b)  The receiver shall have all powers given to the board
1859	pursuant to the declaration, bylaws, and subsection (6), and any
1860	other powers that are necessary to conclude the affairs of the
1861	association and are set forth in the order of appointment. The
1862	appointment of the receiver is subject to the bonding
1863	requirements of such order. The order shall also provide for the
1864	payment of a reasonable fee to the receiver from the sources
1865	identified in the order, which may include rents, profits,
1866	incomes, maintenance fees, or special assessments collected from
1867	the cooperative property.
1868	(8)  REPORTS AND REPLACEMENT OF RECEIVER.--
1869	(a)  The association, receiver, or termination trustee
1870	shall prepare reports each quarter following the approval of the
1871	plan of termination setting forth the status and progress of the
1872	termination, the costs and fees incurred, the date the
1873	termination is expected to be completed, and the current
1874	financial condition of the association, receivership, or
1875	trusteeship and provide copies of the report by regular mail to
1876	the shareholders and lienors at the mailing address provided to
1877	the association by the shareholders and the lienors.
1878	(b)  The shareholders of an association in termination may
1879	recall or remove members of the board of administration with or
1880	without cause at any time as provided in s. 719.106(1)(f).
1881	(c)  The lienors of an association in termination
1882	representing at least 50 percent of the outstanding amount of
1883	liens may petition the court for the appointment of a
1884	termination trustee, which shall be granted upon good cause
1885	shown.
1886	(9)  PLAN OF TERMINATION.--The plan of termination must be
1887	a written document executed in the same manner as a deed by
1888	shareholders having the requisite percentage of voting interests
1889	to approve the plan and by the termination trustee. A copy of
1890	the proposed plan of termination shall be given to all
1891	shareholders, in the same manner as provided for notice of an
1892	annual meeting, at least 14 days prior to the meeting at which
1893	the plan of termination is to be voted upon or prior to or
1894	simultaneously with the distribution of the solicitation seeking
1895	execution of the plan of termination or written consent to or
1896	joinder in the plan. A shareholder may document assent to the
1897	plan by executing the plan or by consent to or joinder in the
1898	plan in the manner of a deed. A plan of termination and the
1899	consents or joinders of shareholders and, if required, consents
1900	or joinders of mortgagees must be recorded in the public records
1901	of each county in which any portion of the cooperative is
1902	located. The plan is effective only upon recordation or at a
1903	later date specified in the plan.
1904	(10)  PLAN OF TERMINATION; REQUIRED PROVISIONS.--The plan
1905	of termination must specify:
1906	(a)  The name, address, and powers of the termination
1907	trustee.
1908	(b)  A date after which the plan of termination is void if
1909	it has not been recorded.
1910	(c)  The interests of the respective shareholders in the
1911	association property, common surplus, and other assets of the
1912	association, which shall be the same as the respective interests
1913	of the shareholders in the common areas immediately before the
1914	termination, unless otherwise provided in the declaration.
1915	(d)  The interests of the respective shareholders in any
1916	proceeds from the sale of the cooperative property. The plan of
1917	termination may apportion those proceeds pursuant to any method
1918	prescribed in subsection (12). If, pursuant to the plan of
1919	termination, cooperative property or real property owned by the
1920	association is to be sold following termination, the plan must
1921	provide for the sale and may establish any minimum sale terms.
1922	(e)  Any interests of the respective shareholders in
1923	insurance proceeds or condemnation proceeds that are not used
1924	for repair or reconstruction at the time of termination. Unless
1925	the declaration expressly addresses the distribution of
1926	insurance proceeds or condemnation proceeds, the plan of
1927	termination may apportion those proceeds pursuant to any method
1928	prescribed in subsection (12).
1929	(11)  PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
1930	TERMINATION.--
1931	(a)  The plan of termination may provide that each
1932	shareholder retains the exclusive right of possession to the
1933	portion of the real estate that formerly constituted the unit,
1934	in which case the plan must specify the conditions of
1935	possession.
1936	(b)  In a conditional termination, the plan must specify
1937	the conditions for termination. A conditional plan does not vest
1938	title in the termination trustee until the plan and a
1939	certificate executed by the association with the formalities of
1940	a deed, confirming that the conditions in the conditional plan
1941	have been satisfied or waived by the requisite percentage of the
1942	voting interests, have been recorded.
1943	(12)  ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE
1944	PROPERTY.--
1945	(a)  Unless the declaration expressly provides for the
1946	allocation of the proceeds of sale of cooperative property, the
1947	plan of termination must first apportion the proceeds between
1948	the aggregate value of all units and the value of the common
1949	areas, based on their respective fair market values immediately
1950	before the termination, as determined by one or more independent
1951	appraisers selected by the association or termination trustee.
1952	(b)  The portion of proceeds allocated to the units shall
1953	be further apportioned among the individual units. The
1954	apportionment is deemed fair and reasonable if it is so
1955	determined by the shareholders, who may approve the plan of
1956	termination by any of the following methods:
1957	1.  The respective values of the units based on the fair
1958	market values of the units immediately before the termination,
1959	as determined by one or more independent appraisers selected by
1960	the association or termination trustee;
1961	2.  The respective values of the units based on the most
1962	recent market value of the units before the termination, as
1963	provided in the county property appraiser's records; or
1964	3.  The respective interests of the units in the common
1965	elements specified in the cooperative documents immediately
1966	before the termination.
1967	(c)  The methods of apportionment in paragraph (b) do not
1968	prohibit any other method of apportioning the proceeds of sale
1969	allocated to the units agreed upon in the plan of termination.
1970	The portion of the proceeds allocated to the common elements
1971	shall be apportioned among the units based upon their respective
1972	interests in the common areas as provided in the declaration.
1973	(d)  Liens that encumber a unit shall be transferred to the
1974	proceeds of sale of the cooperative property and the proceeds of
1975	sale or other distribution of association property, common
1976	surplus, or other association assets attributable to such unit
1977	in their same priority. The proceeds of any sale of cooperative
1978	property pursuant to a plan of termination may not be deemed to
1979	be common surplus or association property.
1980	(13)  TERMINATION TRUSTEE.--The association shall serve as
1981	termination trustee unless another person is appointed in the
1982	plan of termination. If the association is unable, unwilling, or
1983	fails to act as trustee, any shareholder may petition the court
1984	to appoint a trustee. Upon the date of the recording or at a
1985	later date specified in the plan, title to the cooperative
1986	property vests in the trustee. Unless prohibited by the plan,
1987	the termination trustee shall be vested with the powers given to
1988	the board pursuant to the cooperative documents, bylaws, and
1989	subsection (6). If the association is not the termination
1990	trustee, the trustee's powers shall be coextensive with those of
1991	the association to the extent not prohibited in the plan of
1992	termination or the order of appointment. If the association is
1993	not the termination trustee, the association shall transfer any
1994	association property to the trustee. If the association is
1995	dissolved, the trustee shall also have such other powers
1996	necessary to conclude the affairs of the association.
1997	(14)  TITLE VESTED IN TERMINATION TRUSTEE.--If termination
1998	is pursuant to a plan of termination under subsection (2) or
1999	subsection (3), the shareholders' rights and title as tenants in
2000	common in undivided interests in the cooperative property vest
2001	in the termination trustee when the plan is recorded or at a
2002	later date specified in the plan. The shareholders thereafter
2003	become the beneficiaries of the proceeds realized from the plan
2004	of termination. The termination trustee may deal with the
2005	cooperative property or any interest therein if the plan confers
2006	on the trustee the authority to protect, conserve, manage, sell,
2007	or dispose of the cooperative property. The trustee, on behalf
2008	of the shareholders, may contract for the sale of real property,
2009	but the contract is not binding on the shareholders until the
2010	plan is approved pursuant to subsection (2) or subsection (3).
2011	(15)  NOTICE.--
2012	(a)  Within 30 days after a plan of termination has been
2013	recorded, the termination trustee shall deliver by certified
2014	mail, return receipt requested, notice to all shareholders,
2015	lienors of the cooperative property, and lienors of all units at
2016	their last known addresses that a plan of termination has been
2017	recorded. The notice must include the book and page number of
2018	the public records in which the plan was recorded, notice that a
2019	copy of the plan shall be furnished upon written request, and
2020	notice that the shareholder or lienor has the right to contest
2021	the fairness of the plan.
2022	(b)  The trustee, within 90 days after the effective date
2023	of the plan, shall provide to the division a certified copy of
2024	the recorded plan, the date the plan was recorded, and the
2025	county, book, and page number of the public records in which the
2026	plan is recorded.
2027	(16)  RIGHT TO CONTEST.--A shareholder or lienor may
2028	contest a plan of termination by initiating a summary procedure
2029	pursuant to s. 51.011 within 90 days after the date the plan is
2030	recorded. A shareholder or lienor who does not contest the plan
2031	within the 90-day period is barred from asserting or prosecuting
2032	a claim against the association, the termination trustee, any
2033	shareholder, or any successor in interest to the cooperative
2034	property. In an action contesting a plan of termination, the
2035	person contesting the plan has the burden of pleading and
2036	proving that the apportionment of the proceeds from the sale
2037	among the shareholders was not fair and reasonable. The
2038	apportionment of sale proceeds is presumed fair and reasonable
2039	if it was determined pursuant to the methods prescribed in
2040	subsection (12). The court shall determine the rights and
2041	interests of the parties and order the plan of termination to be
2042	implemented if it is fair and reasonable. If the court
2043	determines that the plan of termination is not fair and
2044	reasonable, the court may void the plan or may modify the plan
2045	to apportion the proceeds in a fair and reasonable manner
2046	pursuant to this section based upon the proceedings and order
2047	the modified plan of termination to be implemented. In such
2048	action, the prevailing party shall recover reasonable attorney's
2049	fees and costs.
2050	(17)  DISTRIBUTION.--
2051	(a)  Following termination of the cooperative, the
2052	cooperative property, association property, common surplus, and
2053	other assets of the association shall be held by the termination
2054	trustee, as trustee for shareholders and holders of liens on the
2055	units, in their order of priority.
2056	(b)  Not less than 30 days before the first distribution,
2057	the termination trustee shall deliver by certified mail, return
2058	receipt requested, a notice of the estimated distribution to all
2059	shareholders, lienors of the cooperative property, and lienors
2060	of each unit at their last known addresses stating a good faith
2061	estimate of the amount of the distributions to each class and
2062	the procedures and deadline for notifying the termination
2063	trustee of any objections to the amount. The deadline must be at
2064	least 15 days after the date the notice was mailed. The notice
2065	may be sent with or after the notice required by subsection
2066	(15). If a shareholder or lienor files a timely objection with
2067	the termination trustee, the trustee need not distribute the
2068	funds and property allocated to the respective shareholder or
2069	lienor until the trustee has had a reasonable time to determine
2070	the validity of the adverse claim. In the alternative, the
2071	trustee may interplead the shareholder, lienor, and any other
2072	person claiming an interest in the unit and deposit the funds
2073	allocated to the unit in the court registry, at which time the
2074	cooperative property, association property, common surplus, and
2075	other assets of the association are free of all claims and liens
2076	of the parties to the suit. In an interpleader action, the
2077	trustee and prevailing party may recover reasonable attorney's
2078	fees and costs.
2079	(c)  The proceeds from any sale of cooperative property or
2080	association property and any remaining cooperative property or
2081	association property, common surplus, and other assets shall be
2082	distributed in the following priority:
2083	1.  To pay the reasonable termination trustee's fees and
2084	costs and accounting fees and costs.
2085	2.  To lienholders of liens recorded prior to the recording
2086	of the cooperative documents.
2087	3.  To purchase-money lienholders on units to the extent
2088	necessary to satisfy their liens; however, the distribution may
2089	not exceed a shareholder's share of the proceeds.
2090	4.  To creditors of the association, as their interests
2091	appear.
2092	5.  To shareholders, the proceeds of any sale of
2093	cooperative property subject to satisfaction of liens on each
2094	unit in their order of priority, in shares specified in the plan
2095	of termination, unless objected to by a shareholder or lienor as
2096	provided in paragraph (b).
2097	6.  To shareholders, the remaining cooperative property,
2098	subject to satisfaction of liens on each unit in their order of
2099	priority, in shares specified in the plan of termination, unless
2100	objected to by a shareholder or a lienor as provided in
2101	paragraph (b).
2102	7.  To shareholders, the proceeds of any sale of
2103	association property, the remaining association property, common
2104	surplus, and other assets of the association, subject to
2105	satisfaction of liens on each unit in their order of priority,
2106	in shares specified in the plan of termination, unless objected
2107	to by a shareholder or a lienor as provided in paragraph (b).
2108	(d)  After determining that all known debts and liabilities
2109	of an association in the process of termination have been paid
2110	or adequately provided for, the termination trustee shall
2111	distribute the remaining assets pursuant to the plan of
2112	termination. If the termination is by court proceeding or
2113	subject to court supervision, the distribution may not be made
2114	until any period for the presentation of claims ordered by the
2115	court has elapsed.
2116	(e)  Assets held by an association upon a valid condition
2117	requiring return, transfer, or conveyance, which condition has
2118	occurred or will occur, shall be returned, transferred, or
2119	conveyed in accordance with the condition. The remaining
2120	association assets shall be distributed pursuant to paragraph
2121	(c).
2122	(f)  Distribution may be made in money, property, or
2123	securities and in installments or as a lump sum, if it can be
2124	done fairly and ratably and in conformity with the plan of
2125	termination. Distribution shall be made as soon as is reasonably
2126	consistent with the beneficial liquidation of the assets.
2127	(18)  ASSOCIATION STATUS.--The termination of a cooperative
2128	does not change the corporate status of the association that
2129	operated the cooperative property. The association continues to
2130	exist to conclude its affairs, prosecute and defend actions by
2131	or against it, collect and discharge obligations, dispose of and
2132	convey its property, and collect and divide its assets, but not
2133	to act except as necessary to conclude its affairs.
2134	(19)  CREATION OF ANOTHER COOPERATIVE.--The termination of
2135	a cooperative does not bar the creation by the termination
2136	trustee of another cooperative affecting any portion of the same
2137	property.
2138	Section 10.  Section 719.1224, Florida Statutes, is created
2139	to read:
2140	719.1224  Prohibition against SLAPP suits.--
2141	(1)  It is the intent of the Legislature to protect the
2142	right of cooperative shareholders to exercise their rights to
2143	instruct their representatives and petition for redress of
2144	grievances before the various governmental entities of this
2145	state as protected by the First Amendment to the United States
2146	Constitution and s. 5, Art. I of the State Constitution. The
2147	Legislature recognizes that strategic lawsuits against public
2148	participation, or "SLAPP suits," as they are typically referred
2149	to, have occurred when association members are sued by
2150	individuals, business entities, or governmental entities arising
2151	out of a cooperative shareholder's appearance and presentation
2152	before a governmental entity on matters related to the
2153	cooperative association. However, it is the public policy of
2154	this state that governmental entities, business organizations,
2155	and individuals not engage in SLAPP suits because such actions
2156	are inconsistent with the right of cooperative shareholders to
2157	participate in the state's institutions of government.
2158	Therefore, the Legislature finds and declares that prohibiting
2159	such lawsuits by governmental entities, business entities, and
2160	individuals against cooperative shareholders who address matters
2161	concerning their cooperative association will preserve this
2162	fundamental state policy, preserve the constitutional rights of
2163	cooperative shareholders, and ensure the continuation of
2164	representative government in this state. It is the intent of the
2165	Legislature that such lawsuits be expeditiously disposed of by
2166	the courts. As used in this subsection, the term "governmental
2167	entity" means the state, including the executive, legislative,
2168	and judicial branches of government; the independent
2169	establishments of the state, counties, municipalities,
2170	districts, authorities, boards, or commissions; or any agencies
2171	of these branches that are subject to chapter 286.
2172	(2)  A governmental entity, business organization, or
2173	individual in this state may not file or cause to be filed
2174	through its employees or agents any lawsuit, cause of action,
2175	claim, cross-claim, or counterclaim against a cooperative
2176	shareholder without merit and solely because such cooperative
2177	shareholder has exercised the right to instruct his or her
2178	representatives or the right to petition for redress of
2179	grievances before the various governmental entities of this
2180	state, as protected by the First Amendment to the United States
2181	Constitution and s. 5, Art. I of the State Constitution.
2182	(3)  A cooperative shareholder sued by a governmental
2183	entity, business organization, or individual in violation of
2184	this section has a right to an expeditious resolution of a claim
2185	that the suit is in violation of this section. A cooperative
2186	shareholder may petition the court for an order dismissing the
2187	action or granting final judgment in favor of that cooperative
2188	shareholder. The petitioner may file a motion for summary
2189	judgment, together with supplemental affidavits, seeking a
2190	determination that the governmental entity's, business
2191	organization's, or individual's lawsuit has been brought in
2192	violation of this section. The governmental entity, business
2193	organization, or individual shall thereafter file its response
2194	and any supplemental affidavits. As soon as practicable, the
2195	court shall set a hearing on the petitioner's motion, which
2196	shall be held at the earliest possible time after the filing of
2197	the governmental entity's, business organization's, or
2198	individual's response. The court may award the cooperative
2199	shareholder sued by the governmental entity, business
2200	organization, or individual actual damages arising from the
2201	governmental entity's, individual's, or business organization's
2202	violation of this section. A court may treble the damages
2203	awarded to a prevailing cooperative shareholder and shall state
2204	the basis for the treble damages award in its judgment. The
2205	court shall award the prevailing party reasonable attorney's
2206	fees and costs incurred in connection with a claim that an
2207	action was filed in violation of this section.
2208	(4)  Cooperative associations may not expend association
2209	funds in prosecuting a SLAPP suit against a cooperative
2210	shareholder.
2211	Section 11.  Section 719.1255, Florida Statutes, is amended
2212	to read:
2213	719.1255  Alternative resolution of disputes.--The Division
2214	of Florida Condominiums, Timeshares, and Mobile Homes of the
2215	Department of Business and Professional Regulation shall provide
2216	for alternative dispute resolution of matters related to
2217	cooperative associations and shareholders in a manner like that
2218	provided to condominium associations and unit owners in
2219	accordance with s. 718.1255.
2220	Section 12.  Section 719.1265, Florida Statutes, is created
2221	to read:
2222	719.1265  Association emergency powers.--
2223	(1)  To the extent allowed by law and unless specifically
2224	prohibited by the cooperative documents or the bylaws of an
2225	association, and consistent with the provisions of s. 617.0830,
2226	the board of directors, in response to damage caused by an event
2227	for which a state of emergency is declared pursuant to s. 252.36
2228	in the locale in which the cooperative is located, may, but is
2229	not required to, exercise the following powers:
2230	(a)  Conduct board meetings and shareholder meetings with
2231	notice given as is practicable. Such notice may be given in any
2232	practicable manner, including publication, radio, United States
2233	mail, the Internet, public service announcements, and
2234	conspicuous posting on the cooperative property or any other
2235	means the board deems reasonable under the circumstances. Notice
2236	of board decisions may be communicated as provided in this
2237	paragraph.
2238	(b)  Cancel and reschedule any association meeting.
2239	(c)  Name as assistant officers persons who are not
2240	directors, which assistant officers shall have the same
2241	authority as the executive officers to whom they are assistants
2242	for during the state of emergency to accommodate the incapacity
2243	or unavailability of any officer of the association.
2244	(d)  Relocate the association's principal office or
2245	designate alternative principal offices.
2246	(e)  Enter into agreements with local counties and
2247	municipalities to assist counties and municipalities with debris
2248	removal.
2249	(f)  Implement a disaster plan before or immediately
2250	following the event for which a state of emergency is declared
2251	which may include, but is not limited to, shutting down or off
2252	elevators; electricity; water, sewer, or security systems; or
2253	air conditioners.
2254	(g)  Based upon advice of emergency management officials or
2255	upon the advice of licensed professionals retained by the board,
2256	determine any portion of the cooperative property unavailable
2257	for entry or occupancy by shareholders, family members, tenants,
2258	guests, agents, or invitees to protect the health, safety, or
2259	welfare of such persons.
2260	(h)  Require the evacuation of the cooperative property in
2261	the event of a mandatory evacuation order in the locale in which
2262	the cooperative is located. Should any shareholder or other
2263	occupant of a cooperative fail or refuse to evacuate the
2264	cooperative property when the board has required evacuation, the
2265	association shall be immune from liability or injury to persons
2266	or property arising from such failure or refusal.
2267	(i)  Based upon advice of emergency management officials or
2268	upon the advice of licensed professionals retained by the board,
2269	determine whether the cooperative property can be safely
2270	inhabited or occupied. However, such determination is not
2271	conclusive as to any determination of habitability pursuant to
2272	the declaration.
2273	(j)  Mitigate further damage, including taking action to
2274	contract for the removal of debris and to prevent or mitigate
2275	the spread of fungus, including, but not limited to, mold or
2276	mildew, by removing and disposing of wet drywall, insulation,
2277	carpet, cabinetry, or other fixtures on or within the
2278	cooperative property, even if the shareholder is obligated by
2279	the cooperative documents or law to insure or replace those
2280	fixtures and to remove personal property from a unit.
2281	(k)  Contract, on behalf of any shareholder or
2282	shareholders, for items or services for which the shareholder or
2283	shareholders are otherwise individually responsible, but which
2284	are necessary to prevent further damage to the cooperative
2285	property. In such event, the shareholder or shareholders on
2286	whose behalf the board has contracted are responsible for
2287	reimbursing the association for the actual costs of the items or
2288	services, and the association may use its lien authority
2289	provided by s. 719.108 to enforce collection of the charges.
2290	Without limitation, such items or services may include the
2291	drying of units, the boarding of broken windows or doors, and
2292	the replacement of damaged air conditioners or air handlers to
2293	provide climate control in the units or other portions of the
2294	property.
2295	(l)  Regardless of any provision to the contrary and even
2296	if such authority does not specifically appear in the
2297	cooperative documents or bylaws of the association, levy special
2298	assessments without a vote of the shareholders.
2299	(m)  Without shareholders' approval, borrow money and
2300	pledge association assets as collateral to fund emergency
2301	repairs and carry out the duties of the association when
2302	operating funds are insufficient. This paragraph does not limit
2303	the general authority of the association to borrow money,
2304	subject to such restrictions as are contained in the cooperative
2305	documents or bylaws of the association.
2306	(2)  The special powers authorized under subsection (1)
2307	shall be limited to the time reasonably necessary to protect the
2308	health, safety, and welfare of the association and the
2309	shareholders and the shareholders' family members, tenants,
2310	guests, agents, or invitees and the time reasonably necessary to
2311	mitigate further damage and make emergency repairs.
2312	Additionally, unless 20 percent or more of the units are made
2313	uninhabitable by the emergency, the special powers authorized
2314	under subsection (1) shall only be exercised during the term of
2315	the Governor's executive order or proclamation declaring the
2316	state of emergency in the locale in which the condominium is
2317	located.
2318	Section 13.  Subsections (1) and (4) of section 719.301,
2319	Florida Statutes, are amended to read:
2320	719.301  Transfer of association control.--
2321	(1)  When shareholders unit owners other than the developer
2322	own 15 percent or more of the units in a cooperative that will
2323	be operated ultimately by an association, the shareholders unit
2324	owners other than the developer shall be entitled to elect not
2325	less than one-third of the members of the board of
2326	administration of the association. Shareholders Unit owners
2327	other than the developer are entitled to elect not less than a
2328	majority of the members of the board of administration of an
2329	association:
2330	(a)  Three years after 50 percent of the units that will be
2331	operated ultimately by the association have been conveyed to
2332	purchasers;
2333	(b)  Three months after 90 percent of the units that will
2334	be operated ultimately by the association have been conveyed to
2335	purchasers;
2336	(c)  When all the units that will be operated ultimately by
2337	the association have been completed, some have been conveyed to
2338	purchasers, and none of the others are being offered for sale by
2339	the developer in the ordinary course of business;
2340	(d)  When some of the units have been conveyed to
2341	purchasers and none of the others are being constructed or
2342	offered for sale by the developer in the ordinary course of
2343	business; or
2344	(e)  When the developer files a petition seeking protection
2345	in bankruptcy;
2346	(f)  When a receiver for the developer is appointed by a
2347	circuit court and is not discharged within 30 days after such
2348	appointment; or
2349	(g)(e)  Seven years after creation of the cooperative
2350	association,
2351
2352	whichever occurs first. The developer is entitled to elect at
2353	least one member of the board of administration of an
2354	association as long as the developer holds for sale in the
2355	ordinary course of business at least 5 percent in cooperatives
2356	with fewer than 500 units and 2 percent in cooperatives with 500
2357	or more units in a cooperative operated by the association.
2358	After the developer relinquishes control of the association, the
2359	developer may exercise the right to vote any developer-owned
2360	units in the same manner as any other shareholder unit owner
2361	except for purposes of reacquiring control of the association or
2362	selecting the majority of the members of the board.
2363	(4)  When shareholders unit owners other than the developer
2364	elect a majority of the members of the board of administration
2365	of an association, the developer shall relinquish control of the
2366	association, and the shareholders unit owners shall accept
2367	control. Simultaneously, or for the purpose of paragraph (c) not
2368	more than 90 days thereafter, the developer shall deliver to the
2369	association, at the developer's expense, all property of the
2370	shareholders unit owners and of the association held or
2371	controlled by the developer, including, but not limited to, the
2372	following items, if applicable, as to each cooperative operated
2373	by the association:
2374	(a)1.  The original or a photocopy of the recorded
2375	cooperative documents and all amendments thereto. If a photocopy
2376	is provided, it shall be certified by affidavit of the
2377	developer, or an officer or agent of the developer, as being a
2378	complete copy of the actual recorded cooperative documents.
2379	2.  A certified copy of the association's articles of
2380	incorporation, or if it is not incorporated, then copies of the
2381	documents creating the association.
2382	3.  A copy of the bylaws.
2383	4.  The minute books, including all minutes, and other
2384	books and records of the association, if any.
2385	5.  Any house rules and regulations which have been
2386	promulgated.
2387	(b)  Resignations of officers and members of the board of
2388	administration who are required to resign because the developer
2389	is required to relinquish control of the association.
2390	(c)  The financial records, including financial statements
2391	of the association, and source documents since the incorporation
2392	of the association through the date of turnover. The records
2393	shall be audited for the period of the incorporation of the
2394	association or for the period covered by the last audit, if an
2395	audit has been performed for each fiscal year since
2396	incorporation, by an independent certified public accountant.
2397	All financial statements shall be prepared in accordance with
2398	generally accepted accounting standards and shall be audited in
2399	accordance with generally accepted auditing standards as
2400	prescribed by the Board of Accountancy. The accountant
2401	performing the review shall examine to the extent necessary
2402	supporting documents and records, including the cash
2403	disbursements and related paid invoices to determine if
2404	expenditures were for association purposes and the billings,
2405	cash receipts, and related records to determine that the
2406	developer was charged and paid the proper amounts of
2407	assessments.
2408	(d)  Association funds or control thereof.
2409	(e)  All tangible personal property that is property of the
2410	association, represented by the developer to be part of the
2411	common areas or ostensibly part of the common areas, and an
2412	inventory of that property.
2413	(f)  A copy of the plans and specifications utilized in the
2414	construction or remodeling of improvements and the supplying of
2415	equipment to the cooperative and in the construction and
2416	installation of all mechanical components serving the
2417	improvements and the site, with a certificate in affidavit form
2418	of the developer, the developer's agent, or an architect or
2419	engineer authorized to practice in this state that such plans
2420	and specifications represent, to the best of their knowledge and
2421	belief, the actual plans and specifications utilized in the
2422	construction and improvement of the cooperative property and for
2423	the construction and installation of the mechanical components
2424	serving the improvements. If the cooperative property has been
2425	organized as a cooperative more than 3 years after the
2426	completion of construction or remodeling of the improvements,
2427	the requirements of this paragraph shall not apply.
2428	(g)  A list of the names and addresses, of which the
2429	developer had knowledge at any time in the development of the
2430	cooperative, of all contractors, subcontractors, and suppliers
2431	utilized in the construction or remodeling of the improvements
2432	and in the landscaping.
2433	(h)  Insurance policies.
2434	(i)  Copies of any certificates of occupancy which may have
2435	been issued for the cooperative property.
2436	(j)  Any other permits issued by governmental bodies
2437	applicable to the cooperative property in force or issued within
2438	1 year prior to the date the shareholders unit owners other than
2439	the developer take control of the association.
2440	(k)  All written warranties of the contractor,
2441	subcontractors, suppliers, and manufacturers, if any, that are
2442	still effective.
2443	(l)  A roster of shareholders unit owners and their
2444	addresses and telephone numbers, if known, as shown on the
2445	developer's records.
2446	(m)  Leases of the common areas and other leases to which
2447	the association is a party.
2448	(n)  Employment contracts or service contracts in which the
2449	association is one of the contracting parties or service
2450	contracts in which the association or the shareholders unit
2451	owners have an obligation or responsibility, directly or
2452	indirectly, to pay some or all of the fee or charge of the
2453	person or persons performing the service.
2454	(o)  All other contracts to which the association is a
2455	party.
2456	(p)  A turnover inspection report included in the official
2457	records, under seal of an architect or engineer authorized to
2458	practice in this state, attesting to required maintenance,
2459	useful life, and replacement costs of the following applicable
2460	common areas:
2461	1.  Roof.
2462	2.  Structure.
2463	3.  Fireproofing and fire protection systems.
2464	4.  Elevators.
2465	5.  Heating and cooling systems.
2466	6.  Plumbing.
2467	7.  Electrical systems.
2468	8.  Swimming pool or spa and equipment.
2469	9.  Seawalls.
2470	10.  Pavement and parking areas.
2471	11.  Drainage systems.
2472	12.  Painting.
2473	13.  Irrigation systems.
2474	Section 14.  Section 719.3025, Florida Statutes, is created
2475	to read:
2476	719.3025  Agreements for operation, maintenance, or
2477	management of cooperatives; specific requirements.--
2478	(1)  No written contract between a party contracting to
2479	provide maintenance or management services and an association
2480	which contract provides for operation, maintenance, or
2481	management of a cooperative association or property serving the
2482	shareholders of a cooperative shall be valid or enforceable
2483	unless the contract:
2484	(a)  Specifies the services, obligations, and
2485	responsibilities of the party contracting to provide maintenance
2486	or management services to the shareholders.
2487	(b)  Specifies those costs incurred in the performance of
2488	those services, obligations, or responsibilities which are to be
2489	reimbursed by the association to the party contracting to
2490	provide maintenance or management services.
2491	(c)  Provides an indication of how often each service,
2492	obligation, or responsibility is to be performed, whether stated
2493	for each service, obligation, or responsibility or in categories
2494	thereof.
2495	(d)  Specifies a minimum number of personnel to be employed
2496	by the party contracting to provide maintenance or management
2497	services for the purpose of providing service to the
2498	association.
2499	(e)  Discloses any financial or ownership interest which
2500	the developer, if the developer is in control of the
2501	association, holds with regard to the party contracting to
2502	provide maintenance or management services.
2503	(f)  Discloses any financial or ownership interest a board
2504	member or any party providing maintenance or management services
2505	to the association holds with the contracting party.
2506	(2)  In any case in which the party contracting to provide
2507	maintenance or management services fails to provide such
2508	services in accordance with the contract, the association is
2509	authorized to procure such services from some other party and
2510	shall be entitled to collect any fees or charges paid for
2511	services performed by another party from the party contracting
2512	to provide maintenance or management services.
2513	(3)  Any services or obligations not stated on the face of
2514	the contract shall be unenforceable.
2515	(4)  Notwithstanding the fact that certain vendors contract
2516	with associations to maintain equipment or property which is
2517	made available to serve shareholders, it is the intent of the
2518	Legislature that this section applies to contracts for
2519	maintenance or management services for which the association
2520	pays compensation. This section does not apply to contracts for
2521	services or property made available for the convenience of
2522	shareholders by lessees or licensees of the association, such as
2523	coin-operated laundry, food, soft drink, or telephone vendors;
2524	cable television operators; retail store operators; businesses;
2525	restaurants; or similar vendors.
2526	Section 15.  Section 719.3026, Florida Statutes, is amended
2527	to read:
2528	719.3026  Contracts for products and services; in writing;
2529	bids; exceptions.--Associations with 10 or fewer less than 100
2530	units may opt out of the provisions of this section if two-
2531	thirds of the shareholders unit owners vote to do so, which opt-
2532	out may be accomplished by a proxy specifically setting forth
2533	the exception from this section.
2534	(1)  All contracts as further described herein or any
2535	contract that is not to be fully performed within 1 year after
2536	the making thereof, for the purchase, lease, or renting of
2537	materials or equipment to be used by the association in
2538	accomplishing its purposes under this chapter, and all contracts
2539	for the provision of services, shall be in writing. If a
2540	contract for the purchase, lease, or renting of materials or
2541	equipment, or for the provision of services, requires payment by
2542	the association in an amount which in the aggregate exceeds 5
2543	percent of the association's budget, including reserves, the
2544	association shall obtain competitive bids for the materials,
2545	equipment, or services. Nothing contained herein shall be
2546	construed to require the association to accept the lowest bid.
2547	(2)(a)1.  Notwithstanding the foregoing, contracts with
2548	employees of the association, and contracts for attorney,
2549	accountant, architect, community association manager, timeshare
2550	management firm, engineering, and landscape architect services
2551	shall not be subject to the provisions of this section.
2552	2.  A contract executed before January 1, 1992, and any
2553	renewal thereof, is not subject to the competitive bid
2554	requirements of this section. If a contract was awarded under
2555	the competitive bid procedures of this section, any renewal of
2556	that contract is not subject to such competitive bid
2557	requirements if the contract contains a provision that allows
2558	the board to cancel the contract on 30 days' notice. Materials,
2559	equipment, or services provided to a cooperative pursuant to a
2560	local government franchise agreement by a franchise holder are
2561	not subject to the competitive bid requirement. A contract with
2562	a manager, if made by a competitive bid, may be made for up to 3
2563	years. A condominium whose declaration or bylaws provides for
2564	competitive bidding for services may operate under the
2565	provisions of that declaration or bylaws in lieu of this section
2566	if those provisions are not less stringent than the requirements
2567	of this section.
2568	(b)  This section does not limit the ability of an
2569	association to obtain needed products and services in an
2570	emergency.
2571	(c)  This section does not apply if the business entity
2572	with which the association desires to enter into a contract is
2573	the only source of supply within the county serving the
2574	association.
2575	(d)  Nothing contained in this subsection shall excuse a
2576	party contracting to provide maintenance or management services
2577	from compliance with s. 719.3025.
2578	(3)  As to any contract or other transaction between an
2579	association and one or more of its directors or any other
2580	corporation, firm, association, or entity in which one or more
2581	of its directors are directors or officers or are financially
2582	interested:
2583	(a)  The association shall comply with the requirements of
2584	s. 617.0832.
2585	(b)  The disclosures required by s. 617.0832 shall be
2586	entered into the written minutes of the meeting.
2587	(c)  Approval of the contract or other transaction shall
2588	require an affirmative vote of two-thirds of the directors
2589	present.
2590	(d)  At the next regular or special meeting of the
2591	shareholders, the existence of the contract or other transaction
2592	shall be disclosed to the shareholders. Upon motion of any
2593	shareholder, the contract or transaction shall be brought up for
2594	a vote and may be canceled by a majority vote of the
2595	shareholders present. Should the shareholders cancel the
2596	contract, the association shall only be liable for the
2597	reasonable value of goods and services provided up to the time
2598	of cancellation and shall not be liable for any termination fee,
2599	liquidated damages, or other form of penalty for such
2600	cancellation.
2601	Section 16.  Section 719.303, Florida Statutes, is amended
2602	to read:
2603	719.303  Obligations of shareholders owners.--
2604	(1)  Each shareholder unit owner, each tenant and other
2605	invitee, and each association shall be governed by, and shall
2606	comply with the provisions of, this chapter, the cooperative
2607	documents, the documents creating the association, and the
2608	association bylaws, and the provisions thereof shall be deemed
2609	expressly incorporated into any lease of a unit. Actions for
2610	damages or for injunctive relief, or both, for failure to comply
2611	with these provisions may be brought by the association or by a
2612	shareholder unit owner against:
2613	(a)  The association.
2614	(b)  A shareholder unit owner.
2615	(c)  Directors designated by the developer, for actions
2616	taken by them prior to the time control of the association is
2617	assumed by shareholders unit owners other than the developer.
2618	(d)  Any director who willfully and knowingly fails to
2619	comply with these provisions.
2620	(e)  Any tenant leasing a unit, and any other invitee
2621	occupying a unit.
2622
2623	The prevailing party in any such action or in any action in
2624	which the purchaser claims a right of voidability based upon
2625	contractual provisions as required in s. 719.503(1)(a) is
2626	entitled to recover reasonable attorney's fees. A shareholder
2627	unit owner prevailing in an action between the association and
2628	the shareholder unit owner under this section, in addition to
2629	recovering his or her reasonable attorney's fees, may recover
2630	additional amounts as determined by the court to be necessary to
2631	reimburse the shareholder unit owner for his or her share of
2632	assessments levied by the association to fund its expenses of
2633	the litigation. This relief does not exclude other remedies
2634	provided by law. Actions arising under this subsection shall not
2635	be deemed to be actions for specific performance.
2636	(2)  A provision of this chapter may not be waived if the
2637	waiver would adversely affect the rights of a shareholder unit
2638	owner or the purpose of the provision, except that shareholders
2639	unit owners or members of a board of administration may waive
2640	notice of specific meetings in writing if provided by the
2641	bylaws. Any instrument given in writing by the shareholder unit
2642	owner or purchaser to an escrow agent may be relied upon by an
2643	escrow agent, whether or not such instruction and the payment of
2644	funds thereunder might constitute a waiver of any provision of
2645	this chapter.
2646	(3)  If a shareholder is delinquent for more than 90 days
2647	in the payment of a regular or special assessment or if the
2648	cooperative documents so provide, the association may suspend,
2649	for a reasonable time, the right of a shareholder or a
2650	shareholder's occupant, licensee, or invitee to use the common
2651	areas, common facilities, or any other association property.
2652	This subsection does not apply to limited common areas intended
2653	to be used by that unit, common areas that must be used to
2654	access the unit, utility services provided to the unit, parking
2655	areas, or elevators. The association may also levy reasonable
2656	fines against a shareholder unit owner for failure of the
2657	shareholder unit owner or his or her licensee or invitee or the
2658	unit's occupant to comply with any provision of the cooperative
2659	documents or reasonable rules of the association. No fine shall
2660	become a lien against a unit. No fine shall exceed $100 per
2661	violation. However, a fine may be levied on the basis of each
2662	day of a continuing violation, with a single notice and
2663	opportunity for hearing, provided that no such fine shall in the
2664	aggregate exceed $1,000. No fine may be levied except after
2665	giving reasonable notice and opportunity for a hearing to the
2666	shareholder unit owner and, if applicable, his or her licensee
2667	or invitee. The hearing shall be held before a committee of
2668	other shareholders who are neither board members nor persons
2669	residing in a board member's household unit owners. If the
2670	committee does not agree with the fine, it shall not be levied.
2671	This subsection does not apply to unoccupied units.
2672	(4)  The notice and hearing requirements of subsection (3)
2673	do not apply to the imposition of suspensions and fines against
2674	a shareholder or a shareholder's occupant, licensee, or invitee
2675	because of the failure to pay any amounts due the association.
2676	If such a fine or suspension is imposed, the association may
2677	levy the fine or impose a reasonable suspension at a properly
2678	noticed board meeting, and after the imposition of such fine or
2679	suspension, the association must notify the shareholder and, if
2680	applicable, the shareholder's occupant, licensee, or invitee by
2681	mail or hand delivery.
2682
2683	-----------------------------------------------------
2684	T I T L E  A M E N D M E N T
2685	Between lines 14 and 15, insert:
2686	amending s. 719.103, F.S.; revising definitions; changing
2687	references from unit owner to shareholder in statutes relating
2688	to cooperatives; amending s. 719.104, F.S.; requiring that
2689	association access to a unit must be by two persons, one of whom
2690	must be a board member or manager or employee of the
2691	association; providing an exception for emergencies; providing
2692	civil penalties for violations of accounting records
2693	requirements; exempting certain personal information from unit
2694	owner records requests; providing immunity from liability for
2695	certain information provided by associations to prospective
2696	purchasers or lienholders under certain circumstances; providing
2697	requirements with respect to financial statements and reports;
2698	providing that the operation of the cooperative shall be by the
2699	association; providing that shareholders shall be members of the
2700	association; providing legislative intent; providing that a
2701	director of the association who abstains from voting on any
2702	action taken on any corporate matter shall be presumed to have
2703	taken no position with regard to the action; providing duties of
2704	officers, directors, and agents of a cooperative association and
2705	liability for monetary damages under certain circumstances;
2706	providing that the association may contract, sue, or be sued
2707	with respect to the exercise or nonexercise of its powers;
2708	providing requirements for the borrowing of funds or committing
2709	to a line of credit by the board; providing powers of the
2710	association with respect to title to property and purchase of
2711	units; providing requirements for the selection of cooperative
2712	association board of directors meeting times and locations;
2713	providing restrictions on the times set for certain meetings;
2714	prohibiting certain expenditures and contributions by the
2715	cooperative association; providing liability; amending s.
2716	719.106, F.S.; requiring certain items to be placed on the
2717	agenda of board meetings; revising notice requirements for board
2718	meetings; providing requirements for shareholder meetings;
2719	providing terms of office and election requirements for the
2720	board of directors; providing criteria for the amendment of the
2721	bylaws; providing eligibility to vote on certain questions
2722	involving reserve funds; requiring proxy questions relating to
2723	reserves to contain a specified statement; requiring the bylaws
2724	to contain certain provisions; requiring that directors and
2725	officers who are delinquent in certain payments owed in excess
2726	of certain periods of time be deemed to have abandoned their
2727	offices; requiring that directors and officers charged with
2728	certain offenses involving an association's funds or property be
2729	suspended from office pending resolution of the charge;
2730	providing for the reinstatement of such directors and officers
2731	under certain circumstances; providing qualifications for
2732	directors; providing requirements for the borrowing of funds or
2733	committing to a line of credit by the board; repealing s.
2734	719.1064, F.S., relating to the failure to fill vacancies on
2735	board of administration and the appointment of a receiver upon
2736	petition of a shareholder; amending s. 719.107, F.S.; providing
2737	the expense of installation, replacement, operation, repair, and
2738	maintenance of hurricane shutters or other hurricane protection
2739	shall constitute either a common expense or shall be charged
2740	individually to the shareholders under certain conditions;
2741	amending s. 719.108, F.S.; limiting the liability of a first
2742	mortgagee and its successor and assignees acquiring title to a
2743	unit by foreclosure or by deed in lieu of foreclosure for
2744	certain unpaid assessments; providing a statement of
2745	clarification and applicability; providing a definition;
2746	providing grounds for disapproval of the proposed lease of a
2747	unit by an association; providing lien requirements; providing
2748	for the extension of certain liens; providing lien notice and
2749	filing requirements; providing foreclosure requirements;
2750	providing the association with the power to purchase a
2751	cooperative unit at a foreclosure sale; requiring the
2752	association to provide a certificate of assessment under certain
2753	conditions; providing for the establishment of fees for the
2754	preparation of such certificates; providing for the refund of
2755	certain fees; authorizing the association to demand payment of
2756	future assessments under certain circumstances; creating s.
2757	719.113, F.S.; providing that maintenance of common areas is the
2758	responsibility of the association; providing that the
2759	cooperative documents may include reference that the association
2760	provide certain maintenance for the condominium; providing that
2761	there shall be no material alteration or substantial additions
2762	to the common areas or to real property which is association
2763	property; providing for protection of the common areas; allowing
2764	shareholders to display a United States flag as well as other
2765	specified flags on designated days and patriotic holidays;
2766	requiring the board to adopt hurricane shutter specifications;
2767	authorizing the board to install certain hurricane protection;
2768	prohibiting the board from installing certain hurricane shutters
2769	or other hurricane protection under certain circumstances;
2770	providing for the maintenance, repair, and replacement of
2771	hurricane shutters or other hurricane protection; authorizing
2772	the board to operate hurricane shutters without shareholder
2773	permission under certain circumstances; prohibiting the board
2774	from refusing to approve the installation or replacement of
2775	hurricane shutters under certain conditions; requiring that the
2776	board inspect certain buildings and issue a report under certain
2777	conditions; providing an exception; prohibiting the board from
2778	refusing a request for reasonable accommodation for the
2779	attachment to a unit of religious objects meeting certain size
2780	specifications; authorizing the board to install solar
2781	collectors, clotheslines, or other energy-efficient devices upon
2782	or within common areas or association property; creating s.
2783	719.117, F.S.; providing legislative findings; providing
2784	provisions relating to the termination of the cooperative form
2785	of ownership of a property due to economic waste or
2786	impossibility or optional termination; providing grounds for
2787	termination; providing an exemption; providing that the approval
2788	of a plan of termination by certain mortgage lienholders is not
2789	required under certain conditions; providing powers and duties
2790	of the board relating to the plan of termination; providing
2791	requirements following natural disasters; providing reporting
2792	requirements; providing requirements for a plan of termination;
2793	providing for the allocation of proceeds from the sale of
2794	cooperative property; providing powers and duties of a
2795	termination trustee; providing notice requirements; providing a
2796	procedure for contesting a plan of termination; providing for
2797	recovery of attorney's fees and costs; providing rules for the
2798	distribution of property and sale proceeds; providing for the
2799	association's status following termination; allowing the
2800	creation of another cooperative by the trustee; creating s.
2801	719.1224, F.S.; prohibiting strategic lawsuits against public
2802	participation; providing legislative findings and intent;
2803	prohibiting a governmental entity, business organization, or
2804	individual from filing certain lawsuits made upon specified
2805	bases against a shareholder; providing rights of a shareholder
2806	who has been served with such a lawsuit; providing procedures
2807	for the resolution of certain claims; providing for the award of
2808	damages and attorney's fees; prohibiting associations from
2809	expending association funds in prosecuting such a suit against a
2810	shareholder; amending s. 719.1255, F.S.; requiring the division
2811	to provide alternative dispute resolution for certain matters;
2812	creating s. 719.1265, F.S.; authorizing an association to
2813	exercise certain powers in instances involving damage caused by
2814	an event for which a state of emergency has been declared;
2815	limiting the applicability of such powers; amending s. 719.301,
2816	F.S.; providing circumstances under which shareholders other
2817	than a developer may elect not less than a majority of the
2818	members of the board; requiring a turnover inspection report;
2819	requiring that the report contain certain information; creating
2820	s. 719.3025, F.S.; requiring written contracts for the
2821	operation, maintenance, or management of a cooperative
2822	association or cooperative property; providing contract
2823	requirements; authorizing the association to procure outside
2824	services under certain circumstances; providing that services or
2825	obligations not stated on the face of the contract shall be
2826	unenforceable; providing applicability; amending s. 719.3026,
2827	F.S.; revising a provision authorizing certain associations to
2828	opt out of provisions relating to contracts for products and
2829	services; removing provisions exempting contracts executed
2830	before a specified date from certain competitive bid
2831	requirements; providing requirements for any contract or
2832	transaction between an association and one or more of its
2833	directors or a specified other entity in which one or more of
2834	its directors are directors or officers or have a financial
2835	interest; amending s. 719.303, F.S.; authorizing an association
2836	to suspend, for a reasonable time, the right of a shareholder or
2837	the shareholders' occupant, licensee, or invitee to use certain
2838	common elements under certain conditions; excluding certain
2839	common elements from such authorization; providing that hearings
2840	regarding noncompliance with a declaration be held before
2841	certain persons; providing an exception to certain notice and
2842	hearing requirements;

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