HB 831

1	A bill to be entitled
2	An act relating to community associations; repealing
3	s. 553.509(2), F.S., relating to public elevators and
4	emergency operation plans in certain condominiums and
5	multifamily dwellings; creating s. 627.714, F.S.;
6	requiring that condominium unit owners' policies
7	issued on or after a specified date include a
8	specified minimum amount of loss-assessment coverage;
9	providing requirements for such coverage; amending s.
10	718.111, F.S.; providing guidelines for property
11	insurance coverage obtained by specified types of
12	associations; authorizing an association to obtain
13	certain other types of coverage; providing
14	requirements regarding notice of board meetings
15	conducted for the purpose of establishing the amounts
16	of certain deductibles; providing that insurance for
17	property excluded from the list of items required to
18	be covered under a property policy is the
19	responsibility of a unit owner; requiring that certain
20	policies issued on or after a specified date conform
21	to specified requirements of state law; requiring that
22	certain policies include loss-assessment coverage;
23	specifying a minimum amount for such coverage;
24	deleting provisions relating to the responsibility to
25	provide property insurance for certain improvements or
26	additions; requiring that an association require unit
27	owners to provide evidence of a currently effective
28	personal liability policy; limiting the number of
29	times an association may enforce such requirement;
30	specifying a minimum amount for such coverage;
31	requiring that such coverage contain certain
32	provisions; deleting a provision requiring that an
33	association be an additional named insured and loss
34	payee on all casualty policies issued to unit owners
35	in a condominium operated by an association; providing
36	conditions under which a unit owner is responsible for
37	costs of replacement or repair of portions of
38	condominium property not paid by insurance proceeds;
39	providing penalties for any person who knowingly or
40	intentionally defaces or destroys certain records of
41	an association with the intent to harm the association
42	or any of its members; providing that an association
43	is not responsible for the use or misuse of certain
44	information obtained pursuant to state law requiring
45	the maintenance of certain records of an association;
46	providing that, notwithstanding certain requirements,
47	certain records are not accessible to unit owners;
48	requiring that any rules adopted for the purpose of
49	setting forth uniform accounting principles and
50	standards or addressing financial reporting
51	requirements include certain provisions and standards;
52	amending s. 718.112, F.S.; providing that the board of
53	administration of an association has no obligation to
54	take action with regard to certain items on its
55	agenda; providing for the expiration of the terms of
56	members of the board of administration if no
57	provisions in that regard exist in the bylaws;
58	authorizing the reappointment of members under certain
59	conditions; prohibiting coowners or cooccupants from
60	simultaneously serving as members of the board of
61	certain associations; providing an exception; deleting
62	a provision requiring an association to mail a
63	certification containing certain provisions to unit
64	owners before an election of board members; requiring
65	that any unit owner desiring to be a candidate for
66	election as a member of the board give written notice;
67	requiring that such notice contain certain
68	attestations; requiring that such notice be signed and
69	acknowledged by the candidate on or before a specified
70	deadline; requiring that certain expenses be detailed
71	in an association's annual budget; providing that a
72	director or officer delinquent in the payment of
73	regular or special assessments by more than a
74	specified number of days is deemed to have abandoned
75	the office; requiring that a director charged by
76	information or indictment of certain offenses
77	involving an association's funds or property be
78	removed from office; amending s. 718.115, F.S.;
79	requiring that broadband or Internet service obtained
80	pursuant to a bulk contract as provided in the
81	declaration be deemed a common expense; conforming a
82	cross-reference; amending s. 718.116, F.S.; limiting
83	the liability for certain unpaid assessments of
84	certain entities acquiring title to a unit by
85	foreclosure or deed in lieu of foreclosure; providing
86	that the failure of such an entity to pay such unpaid
87	assessments within a specified period after acquiring
88	title entitles the association to recover all
89	outstanding special and regular assessments that were
90	due before the acquisition of title; expanding the
91	definition of the term "successor or assignee" to
92	include certain affiliates and subsidiaries;
93	prohibiting an association from filing a lien against
94	a condominium unit for a specified period after notice
95	of intent to file such lien is delivered to the owner;
96	providing means for completion of such delivery;
97	correcting a cross-reference; repealing s. 718.121(4),
98	F.S., relating to the filing of liens by an
99	association against a condominium unit; amending s.
100	720.304, F.S.; providing that a flagpole and any
101	flagpole display are subject to certain codes and
102	regulations; amending s. 721.16, F.S., relating to
103	liens for overdue assessments; conforming a cross-
104	reference; providing an effective date.
105
106	Be It Enacted by the Legislature of the State of Florida:
107
108	Section 1.  Subsection (2) of section 553.509, Florida
109	Statutes, is repealed.
110	Section 2.  Section 627.714, Florida Statutes, is created
111	to read:
112	627.714  Condominium unit owner's coverage; loss-assessment
113	coverage required.--For policies issued or renewed on or after
114	October 1, 2009, coverage under a condominium unit owner's
115	policy shall include loss-assessment coverage of at least
116	$2,000. Such loss-assessment coverage shall cover the unit
117	owner's share of the master policy deductible and the unit
118	owner's share of an assessment against all condominium unit
119	owners by the association, up to the limit of liability in
120	effect at the time of the loss that results in the assessment.
121	At a minimum, the loss-assessment coverage must cover
122	assessments for a loss to property for a peril insured by the
123	association.
124	Section 3.  Paragraphs (a), (b), (c), (d), (e), (f), (g),
125	and (j) of subsection (11), paragraphs (a), (b), and (c) of
126	subsection (12), and subsection (13) of section 718.111, Florida
127	Statutes, are amended to read:
128	718.111  The association.--
129	(11)  INSURANCE.--In order to protect the safety, health,
130	and welfare of the people of the State of Florida and to ensure
131	consistency in the provision of insurance coverage to
132	condominiums and their unit owners, this subsection applies to
133	every residential condominium in the state, regardless of the
134	date of its declaration of condominium. It is the intent of the
135	Legislature to encourage lower or stable insurance premiums for
136	associations described in this subsection.
137	(a)  Adequate property hazard insurance, regardless of any
138	requirement in the declaration of condominium for coverage by
139	the association for full insurable value, replacement cost, or
140	similar coverage, shall be based upon the replacement cost of
141	the property to be insured as determined by an independent
142	insurance appraisal or update of a prior appraisal. The full
143	insurable value shall be determined at least once every 36
144	months. The association may also obtain other coverage as
145	appropriate, including, but not limited to, liability insurance
146	for directors and officers, insurance for the benefit of
147	association employees, and flood insurance for common elements,
148	association property, and units.
149	1.  An association or group of associations may provide
150	adequate property hazard insurance through a self-insurance fund
151	that complies with the requirements of ss. 624.460-624.488.
152	2.  The association may also provide adequate property
153	hazard insurance coverage for a group of no fewer than three
154	communities created and operating under this chapter, chapter
155	719, chapter 720, or chapter 721 by obtaining and maintaining
156	for such communities insurance coverage sufficient to cover an
157	amount equal to the probable maximum loss for the communities
158	for a 250-year windstorm event. Such probable maximum loss must
159	be determined through the use of a competent model that has been
160	accepted by the Florida Commission on Hurricane Loss Projection
161	Methodology. No policy or program providing such coverage shall
162	be issued or renewed after July 1, 2008, unless it has been
163	reviewed and approved by the Office of Insurance Regulation. The
164	review and approval shall include approval of the policy and
165	related forms pursuant to ss. 627.410 and 627.411, approval of
166	the rates pursuant to s. 627.062, a determination that the loss
167	model approved by the commission was accurately and
168	appropriately applied to the insured structures to determine the
169	250-year probable maximum loss, and a determination that
170	complete and accurate disclosure of all material provisions is
171	provided to condominium unit owners prior to execution of the
172	agreement by a condominium association.
173	3.  When determining the adequate amount of property hazard
174	insurance coverage, the association may consider deductibles as
175	determined by this subsection.
176	(b)  If an association is a developer-controlled
177	association, the association shall exercise its best efforts to
178	obtain and maintain insurance as described in paragraph (a).
179	Failure to obtain and maintain adequate property hazard
180	insurance during any period of developer control constitutes a
181	breach of fiduciary responsibility by the developer-appointed
182	members of the board of directors of the association, unless the
183	members can show that, despite such failure, they have made
184	their best efforts to maintain the required coverage.
185	(c)  Policies may include deductibles as determined by the
186	board.
187	1.  The deductibles shall be consistent with industry
188	standards and prevailing practice for communities of similar
189	size and age, and having similar construction and facilities in
190	the locale where the condominium property is situated.
191	2.  The deductibles may be based upon prevailing industry
192	deductibles, available funds, including reserve accounts, or
193	predetermined assessment authority at the time the insurance is
194	obtained.
195	3.  The board shall establish the amount of deductibles
196	based upon the level of available funds and predetermined
197	assessment authority at a meeting of the board. Such meeting
198	shall be open to all unit owners in the manner set forth in s.
199	718.112(2)(e). The notice of such meeting must state the
200	current, prevailing, or proposed deductible and the available
201	funds and the assessment authority relied upon by the board and
202	estimate any potential assessment amount against each unit, if
203	any. The meeting described in this paragraph may be held in
204	conjunction with a meeting to consider the proposed budget or an
205	amendment thereto.
206	(d)  An association controlled by unit owners operating as
207	a residential condominium shall use its best efforts to obtain
208	and maintain adequate insurance to protect the association, the
209	association property, the common elements, and the condominium
210	property that is required to be insured by the association
211	pursuant to this subsection. Such insurance shall include
212	property insurance, which must insure, at a minimum, loss due to
213	the perils of fire, lightning, windstorm, and hail.
214	(e)  The declaration of condominium, as originally
215	recorded, or as amended pursuant to procedures provided therein,
216	may provide that condominium property consisting of freestanding
217	buildings comprised of no more than one building in or on such
218	unit need not be insured by the association if the declaration
219	requires the unit owner to obtain adequate insurance for the
220	condominium property. An association may also obtain and
221	maintain liability insurance for directors and officers,
222	insurance for the benefit of association employees, and flood
223	insurance for common elements, association property, and units.
224	(f)  Every property hazard insurance policy issued or
225	renewed on or after January 1, 2009, for the purpose of
226	protecting the condominium shall provide primary coverage for:
227	1.  All portions of the condominium property as originally
228	installed or replacement of like kind and quality, in accordance
229	with the original plans and specifications.
230	2.  All alterations or additions made to the condominium
231	property or association property pursuant to s. 718.113(2).
232	3.  The coverage shall exclude all personal property within
233	the unit or limited common elements, and floor, wall, and
234	ceiling coverings, electrical fixtures, appliances, water
235	heaters, water filters, built-in cabinets and countertops, and
236	window treatments, including curtains, drapes, blinds, hardware,
237	and similar window treatment components, or replacements of any
238	of the foregoing. Such property and any insurance thereupon is
239	the responsibility of the unit owner.
240	(g)  A condominium unit owner's policy issued after October
241	1, 2009, shall conform to the requirements of s. 627.714. Every
242	hazard insurance policy issued or renewed on or after January 1,
243	2009, to an individual unit owner must contain a provision
244	stating that the coverage afforded by such policy is excess
245	coverage over the amount recoverable under any other policy
246	covering the same property. Such policies must include loss-
247	assessment special assessment coverage of no less than $2,000
248	per occurrence without a deductible. An insurance policy issued
249	to an individual unit owner providing such coverage does not
250	provide rights of subrogation against the condominium
251	association operating the condominium in which such individual's
252	unit is located.
253	1.  All improvements or additions to the condominium
254	property that benefit fewer than all unit owners shall be
255	insured by the unit owner or owners having the use thereof, or
256	may be insured by the association at the cost and expense of the
257	unit owners having the use thereof.
258	1.2.  The association shall require each owner to provide
259	evidence of a currently effective policy of personal hazard and
260	liability insurance upon request, but not more than once per
261	year. Such insurance must provide limits of no less than
262	$300,000 per occurrence and shall insure the unit owner for
263	losses to others resulting from conditions and occurrences
264	within the unit or the limited common elements without regard to
265	fault. Upon the failure of an owner to provide a certificate of
266	insurance issued by an insurer approved to write such insurance
267	in this state within 30 days after the date on which a written
268	request is delivered, the association may purchase a policy of
269	insurance on behalf of an owner. The cost of such a policy,
270	together with reconstruction costs undertaken by the association
271	but which are the responsibility of the unit owner, may be
272	collected in the manner provided for the collection of
273	assessments in s. 718.116.
274	2.3.  All reconstruction work after a casualty loss shall
275	be undertaken by the association except as otherwise authorized
276	in this section. A unit owner may undertake reconstruction work
277	on portions of the unit with the prior written consent of the
278	board of administration. However, such work may be conditioned
279	upon the approval of the repair methods, the qualifications of
280	the proposed contractor, or the contract that is used for that
281	purpose. A unit owner shall obtain all required governmental
282	permits and approvals prior to commencing reconstruction.
283	3.4.  Unit owners are responsible for the cost of
284	reconstruction of any portions of the condominium property for
285	which the unit owner is required to carry casualty insurance,
286	and any such reconstruction work undertaken by the association
287	shall be chargeable to the unit owner and enforceable as an
288	assessment pursuant to s. 718.116. The association must be an
289	additional named insured and loss payee on all casualty
290	insurance policies issued to unit owners in the condominium
291	operated by the association.
292	4.5.  A multicondominium association may elect, by a
293	majority vote of the collective members of the condominiums
294	operated by the association, to operate such condominiums as a
295	single condominium for purposes of insurance matters, including,
296	but not limited to, the purchase of the property hazard
297	insurance required by this section and the apportionment of
298	deductibles and damages in excess of coverage. The election to
299	aggregate the treatment of insurance premiums, deductibles, and
300	excess damages constitutes an amendment to the declaration of
301	all condominiums operated by the association, and the costs of
302	insurance shall be stated in the association budget. The
303	amendments shall be recorded as required by s. 718.110.
304	(j)  Any portion of the condominium property required to be
305	insured by the association against casualty loss pursuant to
306	paragraph (f) which is damaged by casualty shall be
307	reconstructed, repaired, or replaced as necessary by the
308	association as a common expense. All property hazard insurance
309	deductibles, uninsured losses, and other damages in excess of
310	property hazard insurance coverage under the property hazard
311	insurance policies maintained by the association are a common
312	expense of the condominium, except that:
313	1.  A unit owner is responsible for the costs of repair or
314	replacement of any portion of the condominium property not paid
315	by insurance proceeds, if such damage is caused by conditions
316	and occurrences within the unit or the limited common elements
317	without regard to fault, by intentional conduct, negligence, or
318	failure to comply with the terms of the declaration or the rules
319	of the association, or by a unit owner, the members of a unit
320	owner's his or her family, unit occupants, tenants, guests, or
321	invitees, without compromise of the subrogation rights of any
322	insurer as set forth in paragraph (g).
323	2.  The provisions of subparagraph 1. regarding the
324	financial responsibility of a unit owner for the costs of
325	repairing or replacing other portions of the condominium
326	property also apply to the costs of repair or replacement of
327	personal property of other unit owners or the association, as
328	well as other property, whether real or personal, which the unit
329	owners are required to insure under paragraph (g).
330	3.  To the extent the cost of repair or reconstruction for
331	which the unit owner is responsible under this paragraph is
332	reimbursed to the association by insurance proceeds, and, to the
333	extent the association has collected the cost of such repair or
334	reconstruction from the unit owner, the association shall
335	reimburse the unit owner without the waiver of any rights of
336	subrogation.
337	4.  The association is not obligated to pay for repair or
338	reconstruction or repairs of casualty losses as a common expense
339	if the casualty losses were known or should have been known to a
340	unit owner and were not reported to the association until after
341	the insurance claim of the association for that casualty was
342	settled or resolved with finality, or denied on the basis that
343	it was untimely filed.
344	(12)  OFFICIAL RECORDS.--
345	(a)  From the inception of the association, the association
346	shall maintain each of the following items, when applicable,
347	which shall constitute the official records of the association:
348	1.  A copy of the plans, permits, warranties, and other
349	items provided by the developer pursuant to s. 718.301(4).
350	2.  A photocopy of the recorded declaration of condominium
351	of each condominium operated by the association and of each
352	amendment to each declaration.
353	3.  A photocopy of the recorded bylaws of the association
354	and of each amendment to the bylaws.
355	4.  A certified copy of the articles of incorporation of
356	the association, or other documents creating the association,
357	and of each amendment thereto.
358	5.  A copy of the current rules of the association.
359	6.  A book or books which contain the minutes of all
360	meetings of the association, of the board of administration, and
361	of unit owners, which minutes shall be retained for a period of
362	not less than 7 years.
363	7.  A current roster of all unit owners and their mailing
364	addresses, unit identifications, voting certifications, and, if
365	known, telephone numbers. The association shall also maintain
366	the electronic mailing addresses and the numbers designated by
367	unit owners for receiving notice sent by electronic transmission
368	of those unit owners consenting to receive notice by electronic
369	transmission. The electronic mailing addresses and numbers
370	provided by unit owners to receive notice by electronic
371	transmission shall be removed from association records when
372	consent to receive notice by electronic transmission is revoked.
373	However, the association is not liable for an erroneous
374	disclosure of the electronic mail address or the number for
375	receiving electronic transmission of notices.
376	8.  All current insurance policies of the association and
377	condominiums operated by the association.
378	9.  A current copy of any management agreement, lease, or
379	other contract to which the association is a party or under
380	which the association or the unit owners have an obligation or
381	responsibility.
382	10.  Bills of sale or transfer for all property owned by
383	the association.
384	11.  Accounting records for the association and separate
385	accounting records for each condominium which the association
386	operates. All accounting records shall be maintained for a
387	period of not less than 7 years. Any person who knowingly or
388	intentionally defaces or destroys accounting records required to
389	be created and maintained by this chapter, during the period for
390	which such records are required to be maintained pursuant to
391	this chapter, or who knowingly or intentionally fails to create
392	or maintain accounting records required to be maintained by this
393	chapter, with the intent of causing harm to the association or
394	one or more of its members, is personally subject to a civil
395	penalty pursuant to s. 718.501(1)(d). The accounting records
396	shall include, but are not limited to:
397	a.  Accurate, itemized, and detailed records of all
398	receipts and expenditures.
399	b.  A current account and a monthly, bimonthly, or
400	quarterly statement of the account for each unit designating the
401	name of the unit owner, the due date and amount of each
402	assessment, the amount paid upon the account, and the balance
403	due.
404	c.  All audits, reviews, accounting statements, and
405	financial reports of the association or condominium.
406	d.  All contracts for work to be performed. Bids for work
407	to be performed shall also be considered official records and
408	shall be maintained by the association.
409	12.  Ballots, sign-in sheets, voting proxies, and all other
410	papers relating to voting by unit owners, which shall be
411	maintained for a period of 1 year from the date of the election,
412	vote, or meeting to which the document relates, notwithstanding
413	paragraph (b).
414	13.  All rental records, when the association is acting as
415	agent for the rental of condominium units.
416	14.  A copy of the current question and answer sheet as
417	described by s. 718.504.
418	15.  All other records of the association not specifically
419	included in the foregoing which are related to the operation of
420	the association.
421	16.  A copy of the inspection report as provided for in s.
422	718.301(4)(p).
423	(b)  The official records of the association shall be
424	maintained within the state for at least 7 years. The records of
425	the association shall be made available to a unit owner within
426	45 miles of the condominium property or within the county in
427	which the condominium property is located within 5 working days
428	after receipt of written request by the board or its designee.
429	However, such distance requirement does not apply to an
430	association governing a timeshare condominium. This paragraph
431	may be complied with by having a copy of the official records of
432	the association available for inspection or copying on the
433	condominium property or association property, or the association
434	may offer the option of making the records of the association
435	available to a unit owner either electronically via the Internet
436	or by allowing the records to be viewed in electronic format on
437	a computer screen and printed upon request. The association is
438	not responsible for the use or misuse of the information
439	provided pursuant to the compliance requirements of this
440	chapter.
441	(c)  The official records of the association are open to
442	inspection by any association member or the authorized
443	representative of such member at all reasonable times. The right
444	to inspect the records includes the right to make or obtain
445	copies, at the reasonable expense, if any, of the association
446	member. The association may adopt reasonable rules regarding the
447	frequency, time, location, notice, and manner of record
448	inspections and copying. The failure of an association to
449	provide the records within 10 working days after receipt of a
450	written request shall create a rebuttable presumption that the
451	association willfully failed to comply with this paragraph. A
452	unit owner who is denied access to official records is entitled
453	to the actual damages or minimum damages for the association's
454	willful failure to comply with this paragraph. The minimum
455	damages shall be $50 per calendar day up to 10 days, the
456	calculation to begin on the 11th working day after receipt of
457	the written request. The failure to permit inspection of the
458	association records as provided herein entitles any person
459	prevailing in an enforcement action to recover reasonable
460	attorney's fees from the person in control of the records who,
461	directly or indirectly, knowingly denied access to the records
462	for inspection. Any person who knowingly or intentionally
463	defaces or destroys accounting records that are required by this
464	chapter to be created and maintained, during the period for
465	which such records are required to be maintained pursuant to
466	this chapter, or who knowingly or intentionally fails to create
467	or maintain accounting records that are required to be
468	maintained by this chapter, with the intent of causing harm to
469	the association or one or more of its members, is personally
470	subject to a civil penalty pursuant to s. 718.501(1)(d). The
471	association shall maintain an adequate number of copies of the
472	declaration, articles of incorporation, bylaws, and rules, and
473	all amendments to each of the foregoing, as well as the question
474	and answer sheet provided for in s. 718.504 and year-end
475	financial information required in this section, on the
476	condominium property to ensure their availability to unit owners
477	and prospective purchasers, and may charge its actual costs for
478	preparing and furnishing these documents to those requesting the
479	documents same. Notwithstanding the provisions of this
480	paragraph, the following records shall not be accessible to unit
481	owners:
482	1.  Any record protected by the lawyer-client privilege as
483	described in s. 90.502; and any record protected by the work-
484	product privilege, including any record prepared by an
485	association attorney or prepared at the attorney's express
486	direction; which reflects a mental impression, conclusion,
487	litigation strategy, or legal theory of the attorney or the
488	association, and which was prepared exclusively for civil or
489	criminal litigation or for adversarial administrative
490	proceedings, or which was prepared in anticipation of imminent
491	civil or criminal litigation or imminent adversarial
492	administrative proceedings until the conclusion of the
493	litigation or adversarial administrative proceedings.
494	2.  Information obtained by an association in connection
495	with the approval of the lease, sale, or other transfer of a
496	unit.
497	3.  Disciplinary, health, insurance, and personnel records
498	of the association's employees.
499	4.3.  Medical records of unit owners.
500	5.4.  Social security numbers, driver's license numbers,
501	credit card numbers, and other personal identifying information
502	of any person, excluding the person's name, lot or unit
503	designation, mailing address, property address, and other
504	contact information.
505	6.  Any electronic security measure that is used by the
506	association to safeguard data, including passwords.
507
508	The functionality included within software used by the
509	association which allows manipulation of data is not a part of
510	the official records of the association, even if the owner owns
511	a copy of the same software used by the association.
512	(13)  FINANCIAL REPORTING.--Within 90 days after the end of
513	the fiscal year, or annually on a date provided in the bylaws,
514	the association shall prepare and complete, or contract for the
515	preparation and completion of, a financial report for the
516	preceding fiscal year. Within 21 days after the final financial
517	report is completed by the association or received from the
518	third party, but not later than 120 days after the end of the
519	fiscal year or other date as provided in the bylaws, the
520	association shall mail to each unit owner at the address last
521	furnished to the association by the unit owner, or hand deliver
522	to each unit owner, a copy of the financial report or a notice
523	that a copy of the financial report will be mailed or hand
524	delivered to the unit owner, without charge, upon receipt of a
525	written request from the unit owner. The division shall adopt
526	rules setting forth uniform accounting principles and standards
527	to be used by all associations and shall adopt rules addressing
528	financial reporting requirements for multicondominium
529	associations. The rules shall include, but not be limited to,
530	standards for presenting a summary of association reserves,
531	including, but not limited to, a good faith estimate disclosing
532	the annual amount of reserve funds that would be necessary for
533	the association to fully fund reserves for each reserve item
534	based upon on the straight-line method. This disclosure is not
535	applicable to reserves funded via the pooling method uniform
536	accounting principles and standards for stating the disclosure
537	of at least a summary of the reserves, including information as
538	to whether such reserves are being funded at a level sufficient
539	to prevent the need for a special assessment and, if not, the
540	amount of assessments necessary to bring the reserves up to the
541	level necessary to avoid a special assessment. The person
542	preparing the financial reports shall be entitled to rely on an
543	inspection report prepared for or provided to the association to
544	meet the fiscal and fiduciary standards of this chapter. In
545	adopting such rules, the division shall consider the number of
546	members and annual revenues of an association. Financial reports
547	shall be prepared as follows:
548	(a)  An association that meets the criteria of this
549	paragraph shall prepare or cause to be prepared a complete set
550	of financial statements in accordance with generally accepted
551	accounting principles. The financial statements shall be based
552	upon the association's total annual revenues, as follows:
553	1.  An association with total annual revenues of $100,000
554	or more, but less than $200,000, shall prepare compiled
555	financial statements.
556	2.  An association with total annual revenues of at least
557	$200,000, but less than $400,000, shall prepare reviewed
558	financial statements.
559	3.  An association with total annual revenues of $400,000
560	or more shall prepare audited financial statements.
561	(b)1.  An association with total annual revenues of less
562	than $100,000 shall prepare a report of cash receipts and
563	expenditures.
564	2.  An association that which operates fewer less than 50
565	units, regardless of the association's annual revenues, shall
566	prepare a report of cash receipts and expenditures in lieu of
567	financial statements required by paragraph (a).
568	3.  A report of cash receipts and disbursements must
569	disclose the amount of receipts by accounts and receipt
570	classifications and the amount of expenses by accounts and
571	expense classifications, including, but not limited to, the
572	following, as applicable: costs for security, professional and
573	management fees and expenses, taxes, costs for recreation
574	facilities, expenses for refuse collection and utility services,
575	expenses for lawn care, costs for building maintenance and
576	repair, insurance costs, administration and salary expenses, and
577	reserves accumulated and expended for capital expenditures,
578	deferred maintenance, and any other category for which the
579	association maintains reserves.
580	(c)  An association may prepare or cause to be prepared,
581	without a meeting of or approval by the unit owners:
582	1.  Compiled, reviewed, or audited financial statements, if
583	the association is required to prepare a report of cash receipts
584	and expenditures;
585	2.  Reviewed or audited financial statements, if the
586	association is required to prepare compiled financial
587	statements; or
588	3.  Audited financial statements if the association is
589	required to prepare reviewed financial statements.
590	(d)  If approved by a majority of the voting interests
591	present at a properly called meeting of the association, an
592	association may prepare or cause to be prepared:
593	1.  A report of cash receipts and expenditures in lieu of a
594	compiled, reviewed, or audited financial statement;
595	2.  A report of cash receipts and expenditures or a
596	compiled financial statement in lieu of a reviewed or audited
597	financial statement; or
598	3.  A report of cash receipts and expenditures, a compiled
599	financial statement, or a reviewed financial statement in lieu
600	of an audited financial statement.
601
602	Such meeting and approval must occur before prior to the end of
603	the fiscal year and is effective only for the fiscal year in
604	which the vote is taken, except that the approval also may be
605	effective for the following fiscal year if agreed upon by the
606	members. With respect to an association to which the developer
607	has not turned over control of the association, all unit owners,
608	including the developer, may vote on issues related to the
609	preparation of financial reports for the first 2 fiscal years of
610	the association's operation, beginning with the fiscal year in
611	which the declaration is recorded. Thereafter, all unit owners
612	except the developer may vote on such issues until control is
613	turned over to the association by the developer. Any audit or
614	review prepared under this section shall be paid for by the
615	developer if done prior to turnover of control of the
616	association. An association may not waive the financial
617	reporting requirements of this section for more than 3
618	consecutive years.
619	Section 4.  Paragraphs (c), (d), (f), (n), and (o) of
620	subsection (2) of section 718.112, Florida Statutes, are amended
621	to read:
622	718.112  Bylaws.--
623	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
624	following and, if they do not do so, shall be deemed to include
625	the following:
626	(c)  Board of administration meetings.--Meetings of the
627	board of administration at which a quorum of the members is
628	present shall be open to all unit owners. Any unit owner may
629	tape record or videotape meetings of the board of
630	administration. The right to attend such meetings includes the
631	right to speak at such meetings with reference to all designated
632	agenda items. The division shall adopt reasonable rules
633	governing the tape recording and videotaping of the meeting. The
634	association may adopt written reasonable rules governing the
635	frequency, duration, and manner of unit owner statements.
636	Adequate notice of all meetings, which notice shall specifically
637	incorporate an identification of agenda items, shall be posted
638	conspicuously on the condominium property at least 48 continuous
639	hours preceding the meeting except in an emergency. If 20
640	percent of the voting interests petition the board to address an
641	item of business, the board shall at its next regular board
642	meeting or at a special meeting of the board, but not later than
643	60 days after the receipt of the petition, place the item on the
644	agenda. However, the board shall have no obligation to take any
645	action on the item. Any item not included on the notice may be
646	taken up on an emergency basis by at least a majority plus one
647	of the members of the board. Such emergency action shall be
648	noticed and ratified at the next regular meeting of the board.
649	However, written notice of any meeting at which nonemergency
650	special assessments, or at which amendment to rules regarding
651	unit use, will be considered shall be mailed, delivered, or
652	electronically transmitted to the unit owners and posted
653	conspicuously on the condominium property not less than 14 days
654	prior to the meeting. Evidence of compliance with this 14-day
655	notice shall be made by an affidavit executed by the person
656	providing the notice and filed among the official records of the
657	association. Upon notice to the unit owners, the board shall by
658	duly adopted rule designate a specific location on the
659	condominium property or association property upon which all
660	notices of board meetings shall be posted. If there is no
661	condominium property or association property upon which notices
662	can be posted, notices of board meetings shall be mailed,
663	delivered, or electronically transmitted at least 14 days before
664	the meeting to the owner of each unit. In lieu of or in addition
665	to the physical posting of notice of any meeting of the board of
666	administration on the condominium property, the association may,
667	by reasonable rule, adopt a procedure for conspicuously posting
668	and repeatedly broadcasting the notice and the agenda on a
669	closed-circuit cable television system serving the condominium
670	association. However, if broadcast notice is used in lieu of a
671	notice posted physically on the condominium property, the notice
672	and agenda must be broadcast at least four times every broadcast
673	hour of each day that a posted notice is otherwise required
674	under this section. When broadcast notice is provided, the
675	notice and agenda must be broadcast in a manner and for a
676	sufficient continuous length of time so as to allow an average
677	reader to observe the notice and read and comprehend the entire
678	content of the notice and the agenda. Notice of any meeting in
679	which regular or special assessments against unit owners are to
680	be considered for any reason shall specifically state that
681	assessments will be considered and the nature, estimated cost,
682	and description of the purposes for such assessments. Meetings
683	of a committee to take final action on behalf of the board or
684	make recommendations to the board regarding the association
685	budget are subject to the provisions of this paragraph. Meetings
686	of a committee that does not take final action on behalf of the
687	board or make recommendations to the board regarding the
688	association budget are subject to the provisions of this
689	section, unless those meetings are exempted from this section by
690	the bylaws of the association. Notwithstanding any other law,
691	the requirement that board meetings and committee meetings be
692	open to the unit owners is inapplicable to meetings between the
693	board or a committee and the association's attorney, with
694	respect to proposed or pending litigation, when the meeting is
695	held for the purpose of seeking or rendering legal advice.
696	(d)  Unit owner meetings.--
697	1.  There shall be an annual meeting of the unit owners
698	held at the location provided in the association bylaws and, if
699	the bylaws are silent as to the location, the meeting shall be
700	held within 45 miles of the condominium property. However, such
701	distance requirement does not apply to an association governing
702	a timeshare condominium. Unless the bylaws provide otherwise, a
703	vacancy on the board caused by the expiration of a director's
704	term shall be filled by electing a new board member, and the
705	election shall be by secret ballot; however, if the number of
706	vacancies equals or exceeds the number of candidates, no
707	election is required. The terms of all members of the board
708	shall expire at the annual meeting and such board members may
709	stand for reelection unless otherwise permitted by the bylaws.
710	If In the event that the bylaws permit staggered terms of no
711	more than 2 years and upon approval of a majority of the total
712	voting interests, the association board members may serve 2-year
713	staggered terms. If there is no provision in the bylaws for
714	terms of the members of the board, the terms of all members of
715	the board shall expire upon the election of their successors at
716	the annual meeting or at a special meeting called for that
717	purpose and such board members may stand for reelection unless
718	otherwise provided in the bylaws. If the number of vacancies
719	exceeds the number of candidates, any no person is interested in
720	or demonstrates an intention to run for the position of a board
721	member whose term would expire upon the election of a successor
722	has expired according to the provisions of this subparagraph may
723	be reappointed to serve by the remaining directors and, such
724	board member whose term has expired shall be automatically
725	reappointed to the board of administration and need not stand
726	for reelection if there are no other directors whose term would
727	similarly expire. In a condominium association of more than 10
728	units, coowners or cooccupants of a unit may not serve as
729	members of the board of directors at the same time unless one
730	coowner or cooccupant owns more than one unit. Any unit owner
731	desiring to be a candidate for board membership shall comply
732	with subparagraph 3. A person who has been suspended or removed
733	by the division under this chapter, or who is delinquent in the
734	payment of any fee, fine, or special or regular assessment as
735	provided in paragraph (n), is not eligible for board membership.
736	A person who has been convicted of any felony in this state or
737	in a United States District or Territorial Court, or who has
738	been convicted of any offense in another jurisdiction that would
739	be considered a felony if committed in this state, is not
740	eligible for board membership unless such felon's civil rights
741	have been restored for a period of no less than 5 years as of
742	the date on which such person seeks election to the board. The
743	validity of an action by the board is not affected if it is
744	later determined that a member of the board is ineligible for
745	board membership due to having been convicted of a felony.
746	2.  The bylaws shall provide the method of calling meetings
747	of unit owners, including annual meetings. Written notice, which
748	notice must include an agenda, shall be mailed, hand delivered,
749	or electronically transmitted to each unit owner at least 14
750	days prior to the annual meeting and shall be posted in a
751	conspicuous place on the condominium property at least 14
752	continuous days preceding the annual meeting. Upon notice to the
753	unit owners, the board shall by duly adopted rule designate a
754	specific location on the condominium property or association
755	property where upon which all notices of unit owner meetings
756	shall be posted; however, if there is no condominium property or
757	association property upon which notices can be posted, this
758	requirement does not apply. In lieu of or in addition to the
759	physical posting of notice of any meeting of the unit owners on
760	the condominium property, the association may, by reasonable
761	rule, adopt a procedure for conspicuously posting and repeatedly
762	broadcasting the notice and the agenda on a closed-circuit cable
763	television system serving the condominium association. However,
764	if broadcast notice is used in lieu of a notice posted
765	physically on the condominium property, the notice and agenda
766	must be broadcast at least four times every broadcast hour of
767	each day that a posted notice is otherwise required under this
768	section. When broadcast notice is provided, the notice and
769	agenda must be broadcast in a manner and for a sufficient
770	continuous length of time so as to allow an average reader to
771	observe the notice and read and comprehend the entire content of
772	the notice and the agenda. Unless a unit owner waives in writing
773	the right to receive notice of the annual meeting, such notice
774	shall be hand delivered, mailed, or electronically transmitted
775	to each unit owner. Notice for meetings and notice for all other
776	purposes shall be mailed to each unit owner at the address last
777	furnished to the association by the unit owner, or hand
778	delivered to each unit owner. However, if a unit is owned by
779	more than one person, the association shall provide notice, for
780	meetings and all other purposes, to that one address which the
781	developer initially identifies for that purpose and thereafter
782	as one or more of the owners of the unit shall so advise the
783	association in writing, or if no address is given or the owners
784	of the unit do not agree, to the address provided on the deed of
785	record. An officer of the association, or the manager or other
786	person providing notice of the association meeting, shall
787	provide an affidavit or United States Postal Service certificate
788	of mailing, to be included in the official records of the
789	association affirming that the notice was mailed or hand
790	delivered, in accordance with this provision.
791	3.  The members of the board shall be elected by written
792	ballot or voting machine. Proxies shall in no event be used in
793	electing the board, either in general elections or elections to
794	fill vacancies caused by recall, resignation, or otherwise,
795	unless otherwise provided in this chapter. Not less than 60 days
796	before a scheduled election, the association shall mail,
797	deliver, or electronically transmit, whether by separate
798	association mailing or included in another association mailing,
799	delivery, or transmission, including regularly published
800	newsletters, to each unit owner entitled to a vote, a first
801	notice of the date of the election along with a certification
802	form provided by the division attesting that he or she has read
803	and understands, to the best of his or her ability, the
804	governing documents of the association and the provisions of
805	this chapter and any applicable rules. Any unit owner or other
806	eligible person desiring to be a candidate for the board must
807	provide a give written notice of intent to be a candidate to the
808	association, which must contain a certification, in the form
809	designated by the division, attesting that he or she has read
810	and understands, to the best of his or her ability, the
811	governing documents of the association and the provisions of
812	this chapter and any applicable rules. The notice must be
813	acknowledged and signed by the candidate not less than 40 days
814	before a scheduled election. Together with the written notice
815	and agenda as set forth in subparagraph 2., the association
816	shall mail, deliver, or electronically transmit a second notice
817	of the election to all unit owners entitled to vote therein,
818	together with a ballot which shall list all candidates. Upon
819	request of a candidate, the association shall include an
820	information sheet, no larger than 8 1/2 inches by 11 inches,
821	which must be furnished by the candidate not less than 35 days
822	before the election and, along with the signed certification
823	form provided for in this subparagraph, to be included with the
824	mailing, delivery, or transmission of the ballot., with The
825	costs of mailing, delivery, or electronic transmission and
826	copying shall to be borne by the association. The association is
827	not liable for the contents of the information sheets prepared
828	by the candidates. In order to reduce costs, the association may
829	print or duplicate the information sheets on both sides of the
830	paper. The division shall by rule establish voting procedures
831	consistent with the provisions contained herein, including rules
832	establishing procedures for giving notice by electronic
833	transmission and rules providing for the secrecy of ballots.
834	Elections shall be decided by a plurality of those ballots cast.
835	There shall be no quorum requirement; however, at least 20
836	percent of the eligible voters must cast a ballot in order to
837	have a valid election of members of the board. No unit owner
838	shall permit any other person to vote his or her ballot, and any
839	such ballots improperly cast shall be deemed invalid, provided
840	any unit owner who violates this provision may be fined by the
841	association in accordance with s. 718.303. A unit owner who
842	needs assistance in casting the ballot for the reasons stated in
843	s. 101.051 may obtain assistance in casting the ballot. The
844	regular election shall occur on the date of the annual meeting.
845	The provisions of this subparagraph shall not apply to timeshare
846	condominium associations. Notwithstanding the provisions of this
847	subparagraph, an election is not required unless more candidates
848	file notices of intent to run or are nominated than board
849	vacancies exist.
850	4.  Any approval by unit owners called for by this chapter
851	or the applicable declaration or bylaws, including, but not
852	limited to, the approval requirement in s. 718.111(8), shall be
853	made at a duly noticed meeting of unit owners and shall be
854	subject to all requirements of this chapter or the applicable
855	condominium documents relating to unit owner decisionmaking,
856	except that unit owners may take action by written agreement,
857	without meetings, on matters for which action by written
858	agreement without meetings is expressly allowed by the
859	applicable bylaws or declaration or any statute that provides
860	for such action.
861	5.  Unit owners may waive notice of specific meetings if
862	allowed by the applicable bylaws or declaration or any statute.
863	If authorized by the bylaws, notice of meetings of the board of
864	administration, unit owner meetings, except unit owner meetings
865	called to recall board members under paragraph (j), and
866	committee meetings may be given by electronic transmission to
867	unit owners who consent to receive notice by electronic
868	transmission.
869	6.  Unit owners shall have the right to participate in
870	meetings of unit owners with reference to all designated agenda
871	items. However, the association may adopt reasonable rules
872	governing the frequency, duration, and manner of unit owner
873	participation.
874	7.  Any unit owner may tape record or videotape a meeting
875	of the unit owners subject to reasonable rules adopted by the
876	division.
877	8.  Unless otherwise provided in the bylaws, any vacancy
878	occurring on the board before the expiration of a term may be
879	filled by the affirmative vote of the majority of the remaining
880	directors, even if the remaining directors constitute less than
881	a quorum, or by the sole remaining director. In the alternative,
882	a board may hold an election to fill the vacancy, in which case
883	the election procedures must conform to the requirements of
884	subparagraph 3. unless the association governs 10 units or less
885	and has opted out of the statutory election process, in which
886	case the bylaws of the association control. Unless otherwise
887	provided in the bylaws, a board member appointed or elected
888	under this section shall fill the vacancy for the unexpired term
889	of the seat being filled. Filling vacancies created by recall is
890	governed by paragraph (j) and rules adopted by the division.
891
892	Notwithstanding subparagraphs (b)2. and (d)3., an association of
893	10 or fewer units may, by the affirmative vote of a majority of
894	the total voting interests, provide for different voting and
895	election procedures in its bylaws, which vote may be by a proxy
896	specifically delineating the different voting and election
897	procedures. The different voting and election procedures may
898	provide for elections to be conducted by limited or general
899	proxy.
900	(f)  Annual budget.--
901	1.  The proposed annual budget of estimated revenues and
902	common expenses shall be detailed and shall show the amounts
903	budgeted by accounts and expense classifications, including, if
904	applicable, but not limited to, those expenses listed in s.
905	718.504(21). A multicondominium association shall adopt a
906	separate budget of common expenses for each condominium the
907	association operates and shall adopt a separate budget of common
908	expenses for the association. In addition, if the association
909	maintains limited common elements with the cost to be shared
910	only by those entitled to use the limited common elements as
911	provided for in s. 718.113(1), the budget or a schedule attached
912	thereto shall show amounts budgeted therefor. If, after turnover
913	of control of the association to the unit owners, any of the
914	expenses listed in s. 718.504(21) are not applicable, they need
915	not be listed.
916	2.  In addition to annual operating expenses, the budget
917	shall include reserve accounts for capital expenditures and
918	deferred maintenance. These accounts shall include, but are not
919	limited to, roof replacement, building painting, and pavement
920	resurfacing, regardless of the amount of deferred maintenance
921	expense or replacement cost, and for any other item for which
922	the deferred maintenance expense or replacement cost exceeds
923	$10,000. The amount to be reserved shall be computed by means of
924	a formula which is based upon estimated remaining useful life
925	and estimated replacement cost or deferred maintenance expense
926	of each reserve item. The association may adjust replacement
927	reserve assessments annually to take into account any changes in
928	estimates or extension of the useful life of a reserve item
929	caused by deferred maintenance. This subsection does not apply
930	to an adopted budget in which the members of an association have
931	determined, by a majority vote at a duly called meeting of the
932	association, to provide no reserves or less reserves than
933	required by this subsection. However, prior to turnover of
934	control of an association by a developer to unit owners other
935	than a developer pursuant to s. 718.301, the developer may vote
936	to waive the reserves or reduce the funding of reserves for the
937	first 2 fiscal years of the association's operation, beginning
938	with the fiscal year in which the initial declaration is
939	recorded, after which time reserves may be waived or reduced
940	only upon the vote of a majority of all nondeveloper voting
941	interests voting in person or by limited proxy at a duly called
942	meeting of the association. If a meeting of the unit owners has
943	been called to determine whether to waive or reduce the funding
944	of reserves, and no such result is achieved or a quorum is not
945	attained, the reserves as included in the budget shall go into
946	effect. After the turnover, the developer may vote its voting
947	interest to waive or reduce the funding of reserves.
948	3.  Reserve funds and any interest accruing thereon shall
949	remain in the reserve account or accounts, and shall be used
950	only for authorized reserve expenditures unless their use for
951	other purposes is approved in advance by a majority vote at a
952	duly called meeting of the association. Prior to turnover of
953	control of an association by a developer to unit owners other
954	than the developer pursuant to s. 718.301, the developer-
955	controlled association shall not vote to use reserves for
956	purposes other than that for which they were intended without
957	the approval of a majority of all nondeveloper voting interests,
958	voting in person or by limited proxy at a duly called meeting of
959	the association.
960	4.  The only voting interests which are eligible to vote on
961	questions that involve waiving or reducing the funding of
962	reserves, or using existing reserve funds for purposes other
963	than purposes for which the reserves were intended, are the
964	voting interests of the units subject to assessment to fund the
965	reserves in question. Proxy questions relating to waiving or
966	reducing the funding of reserves or using existing reserve funds
967	for purposes other than purposes for which the reserves were
968	intended shall contain the following statement in capitalized,
969	bold letters in a font size larger than any other used on the
970	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
971	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
972	RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
973	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
974	(n)  Director or officer delinquencies.--A director or
975	officer more than 90 days delinquent in the payment of regular
976	or special assessments shall be deemed to have abandoned the
977	office, creating a vacancy in the office to be filled according
978	to law.
979	(o)  Director or officer offenses.--A director or officer
980	charged by information or indictment with a felony theft or
981	embezzlement offense involving the association's funds or
982	property shall be removed from office, creating a vacancy in the
983	office to be filled according to law. While such director or
984	officer has such criminal charge pending, he or she may not be
985	appointed or elected to a position as a director or officer.
986	However, should the charges be resolved without a finding of
987	guilt, the director or officer shall be reinstated for the
988	remainder of his or her term of office, if any.
989	Section 5.  Paragraphs (d) and (e) of subsection (1) of
990	section 718.115, Florida Statutes, are amended to read:
991	718.115  Common expenses and common surplus.--
992	(1)
993	(d)  If so provided for in the declaration, the cost of a
994	master antenna television system, or duly franchised cable
995	television service, or broadband or Internet service obtained
996	pursuant to a bulk contract shall be deemed a common expense. If
997	the declaration does not provide for the cost of a master
998	antenna television system, or duly franchised cable television
999	service, or broadband or Internet service obtained under a bulk
1000	contract as a common expense, the board may enter into such a
1001	contract, and the cost of the service will be a common expense
1002	but allocated on a per-unit basis rather than a percentage basis
1003	if the declaration provides for other than an equal sharing of
1004	common expenses, and any contract entered into before July 1,
1005	1998, in which the cost of the service is not equally divided
1006	among all unit owners, may be changed by vote of a majority of
1007	the voting interests present at a regular or special meeting of
1008	the association, to allocate the cost equally among all units.
1009	The contract shall be for a term of not less than 2 years.
1010	1.  Any contract made by the board after the effective date
1011	hereof for a community antenna system, or duly franchised cable
1012	television service, or broadband or Internet service may be
1013	canceled by a majority of the voting interests present at the
1014	next regular or special meeting of the association. Any member
1015	may make a motion to cancel the said contract, but if no motion
1016	is made or if such motion fails to obtain the required majority
1017	at the next regular or special meeting, whichever occurs is
1018	sooner, following the making of the contract, then such contract
1019	shall be deemed ratified for the term therein expressed.
1020	2.  Any such contract shall provide, and shall be deemed to
1021	provide if not expressly set forth, that any hearing-impaired or
1022	legally blind unit owner who does not occupy the unit with a
1023	non-hearing-impaired or sighted person, or any unit owner
1024	receiving supplemental security income under Title XVI of the
1025	Social Security Act or food stamps as administered by the
1026	Department of Children and Family Services pursuant to s.
1027	414.31, may discontinue the service without incurring disconnect
1028	fees, penalties, or subsequent service charges, and, as to such
1029	units, the owners shall not be required to pay any common
1030	expenses charge related to such service. If less than all
1031	members of an association share the expenses of cable
1032	television, the expense shall be shared equally by all
1033	participating unit owners. The association may use the
1034	provisions of s. 718.116 to enforce payment of the shares of
1035	such costs by the unit owners receiving cable television.
1036	(e)  The expense of installation, replacement, operation,
1037	repair, and maintenance of hurricane shutters or other hurricane
1038	protection by the board pursuant to s. 718.113(5) shall
1039	constitute a common expense as defined herein and shall be
1040	collected as provided in this section if the association is
1041	responsible for the maintenance, repair, and replacement of the
1042	hurricane shutters or other hurricane protection pursuant to the
1043	declaration of condominium. However, if the maintenance, repair,
1044	and replacement of the hurricane shutters or other hurricane
1045	protection is the responsibility of the unit owners pursuant to
1046	the declaration of condominium, the cost of the installation of
1047	the hurricane shutters or other hurricane protection shall not
1048	be a common expense, but shall be charged individually to the
1049	unit owners based on the cost of installation of the hurricane
1050	shutters or other hurricane protection appurtenant to the unit.
1051	Notwithstanding the provisions of s. 718.116(10) s. 718.116(9),
1052	and regardless of whether or not the declaration requires the
1053	association or unit owners maintain, repair, or replace
1054	hurricane shutters or other hurricane protection, a unit owner
1055	who has previously installed hurricane shutters in accordance
1056	with s. 718.113(5), other hurricane protection, or laminated
1057	glass architecturally designed to function as hurricane
1058	protection, which hurricane shutters or other hurricane
1059	protection or laminated glass comply with the current applicable
1060	building code, shall receive a credit equal to the pro rata
1061	portion of the assessed installation cost assigned to each unit.
1062	However, such unit owner shall remain responsible for the pro
1063	rata share of expenses for hurricane shutters or other hurricane
1064	protection installed on common elements and association property
1065	by the board pursuant to s. 718.113(5), and shall remain
1066	responsible for a pro rata share of the expense of the
1067	replacement, operation, repair, and maintenance of such shutters
1068	or other hurricane protection.
1069	Section 6.  Paragraphs (b), (c), and (g) of subsection (1)
1070	and paragraph (b) of subsection (6) of section 718.116, Florida
1071	Statutes, are amended, present subsections (5) through (10) of
1072	that section are renumbered as subsections (6) through (11),
1073	respectively, and a new subsection (5) is added to that section,
1074	to read:
1075	718.116  Assessments; liability; lien and priority;
1076	interest; collection.--
1077	(1)
1078	(b)  The liability of a first mortgagee or its successor or
1079	assignees who acquire title to a unit by foreclosure or by deed
1080	in lieu of foreclosure for the unpaid assessments that became
1081	due before prior to the mortgagee's acquisition of title is
1082	limited to the lesser of:
1083	1.  The unit's unpaid common expenses, special assessments,
1084	and regular periodic assessments which accrued or came due
1085	during the 12 6 months immediately preceding the acquisition of
1086	title and for which payment in full has not been received by the
1087	association; or
1088	2.  Twenty One percent of the original mortgage debt. The
1089	provisions of this paragraph apply only if the first mortgagee
1090	joined the association as a defendant in the foreclosure action.
1091	Joinder of the association is not required if, on the date the
1092	complaint is filed, the association was dissolved or did not
1093	maintain an office or agent for service of process at a location
1094	which was known to or reasonably discoverable by the mortgagee.
1095	(c)  The person acquiring title shall pay the amount owed
1096	to the association within 30 days after transfer of title.
1097	Failure to pay the full amount when due shall entitle the
1098	association to record a claim of lien against the parcel and
1099	proceed in the same manner as provided in this section for the
1100	collection of unpaid assessments. However, in the case of a
1101	first mortgagee or its successor or assignees acquiring title to
1102	a condominium parcel as a result of foreclosure of the mortgage
1103	or by deed in lieu of foreclosure of the mortgage, the failure
1104	to pay the full amount due within 30 days after transfer of
1105	title entitles the association to recover all outstanding
1106	special and regular assessments that became due before the
1107	acquisition of title.
1108	(g)  For purposes of this subsection, the term "successor
1109	or assignee" as used with respect to a first mortgagee includes
1110	only a subsequent holder of the first mortgage or an affiliate
1111	or subsidiary of a parent entity that acquires title in lieu of
1112	a transfer to the mortgage holder.
1113	(5)  Except as otherwise provided in this chapter, a lien
1114	may not be filed by the association against a condominium unit
1115	until 30 days after the date on which a notice of intent to file
1116	a lien is delivered to the owner by certified mail, return
1117	receipt requested, and by first-class United States mail to the
1118	owner at his or her last known address as reflected in the
1119	records of the association. However, if the address reflected in
1120	the records is outside the United States, the notice must be
1121	sent by first-class United States mail to the unit and to the
1122	last known address by regular mail with international postage.
1123	Delivery of the notice shall be deemed complete upon mailing as
1124	required by this subsection. Alternatively, notice shall be
1125	deemed complete if served upon the unit owner in the manner
1126	authorized by chapter 48 and the Florida Rules of Civil
1127	Procedure.
1128	(7)(6)
1129	(b)  No foreclosure judgment may be entered until at least
1130	30 days after the association gives written notice to the unit
1131	owner of its intention to foreclose its lien to collect the
1132	unpaid assessments. If this notice is not given at least 30 days
1133	before the foreclosure action is filed, and if the unpaid
1134	assessments, including those coming due after the claim of lien
1135	is recorded, are paid before the entry of a final judgment of
1136	foreclosure, the association shall not recover attorney's fees
1137	or costs. The notice must be given by delivery of a copy of it
1138	to the unit owner or by certified or registered mail, return
1139	receipt requested, addressed to the unit owner at his or her
1140	last known address; and, upon such mailing, the notice shall be
1141	deemed to have been given, and the court shall proceed with the
1142	foreclosure action and may award attorney's fees and costs as
1143	permitted by law. The notice requirements of this subsection are
1144	satisfied if the unit owner records a notice of contest of lien
1145	as provided in subsection (6) (5). The notice requirements of
1146	this subsection do not apply if an action to foreclose a
1147	mortgage on the condominium unit is pending before any court; if
1148	the rights of the association would be affected by such
1149	foreclosure; and if actual, constructive, or substitute service
1150	of process has been made on the unit owner.
1151	Section 7.  Subsection (4) of section 718.121, Florida
1152	Statutes, as amended by chapters 2008-28 and 2008-202, Laws of
1153	Florida, is repealed.
1154	Section 8.  Paragraph (b) of subsection (2) of section
1155	720.304, Florida Statutes, is amended to read:
1156	720.304  Right of owners to peaceably assemble; display of
1157	flag; SLAPP suits prohibited.--
1158	(2)
1159	(b)  Any homeowner may erect a freestanding flagpole no
1160	more than 20 feet high on any portion of the homeowner's real
1161	property, regardless of any covenants, restrictions, bylaws,
1162	rules, or requirements of the association, if the flagpole does
1163	not obstruct sightlines at intersections and is not erected
1164	within or upon an easement. The homeowner may further display in
1165	a respectful manner from that flagpole, regardless of any
1166	covenants, restrictions, bylaws, rules, or requirements of the
1167	association, one official United States flag, not larger than
1168	41/2 feet by 6 feet, and may additionally display one official
1169	flag of the State of Florida or the United States Army, Navy,
1170	Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
1171	additional flag must be equal in size to or smaller than the
1172	United States flag. The flagpole and display are subject to all
1173	building codes, zoning setbacks, and other applicable
1174	governmental regulations, including, but not limited to, noise
1175	and lighting ordinances in the county or municipality in which
1176	the flagpole is erected.
1177	Section 9.  Subsection (3) of section 721.16, Florida
1178	Statutes, is amended to read:
1179	721.16  Liens for overdue assessments; liens for labor
1180	performed on, or materials furnished to, a timeshare unit.--
1181	(3)  The lien is effective from the date of recording a
1182	claim of lien in the public records of the county or counties in
1183	which the accommodations and facilities constituting the
1184	timeshare plan are located. The claim of lien shall state the
1185	name of the timeshare plan and identify the timeshare interest
1186	for which the lien is effective, state the name of the
1187	purchaser, state the assessment amount due, and state the due
1188	dates. Notwithstanding any provision of s. 718.116(6)(a) s.
1189	718.116(5)(a) or s. 719.108(4) to the contrary, the lien is
1190	effective until satisfied or until 5 years have expired after
1191	the date the claim of lien is recorded unless, within that time,
1192	an action to enforce the lien is commenced pursuant to
1193	subsection (2). A claim of lien for assessments may include only
1194	assessments which are due when the claim is recorded. A claim of
1195	lien shall be signed and acknowledged by an officer or agent of
1196	the managing entity. Upon full payment, the person making the
1197	payment is entitled to receive a satisfaction of the lien.
1198	Section 10.  This act shall take effect July 1, 2009.

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