HB 115

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	34.01, F.S.; correcting a cross-reference to conform to
4	changes made by the act; amending s. 468.436, F.S.;
5	revising a ground for disciplinary action relating to
6	misconduct or negligence; requiring the Department of
7	Business and Professional Regulation to enter an order
8	permanently revoking the license of a community
9	association manager under certain circumstances; amending
10	s. 718.103, F.S.; revising the definition of the term
11	"developer" to exclude a bulk assignee or bulk buyer;
12	amending s. 718.111, F.S.; providing requirements for an
13	association to borrow funds or commit to a line of credit,
14	including a meeting of the board of administration and
15	prior notice; providing requirements for association
16	access to a unit, including prior notice; providing an
17	exception for emergencies; amending s. 718.112, F.S.;
18	revising notice requirements for board of administration
19	meetings; revising requirements for the reappointment of
20	certain board members; providing an exception to the
21	expiration of the terms of members of certain boards;
22	revising board eligibility requirements; revising notice
23	requirements for board candidates; establishing
24	requirements for newly elected board members; providing
25	requirements for bylaw amendments by a board of
26	administration; amending s. 718.115, F.S.; requiring that
27	certain services obtained pursuant to a bulk contract as
28	provided in the declaration be deemed a common expense;
29	requiring that such contracts contain certain provisions;
30	authorizing the cancellation of certain contracts;
31	amending s. 718.116, F.S.; authorizing association demands
32	for assessment payments from tenants of delinquent owners
33	during pendency of a foreclosure action of a condominium
34	unit; providing for notice; providing for credits against
35	rent for assessment payments by tenants; providing for
36	eviction proceedings for nonpayment; providing for effect
37	of provisions on rights and duties of the tenant and
38	association; amending s. 718.1265, F.S.; limiting the
39	exercise of specified special powers under a declared
40	state of emergency unless a certain number of units are
41	rendered uninhabitable by the emergency; amending s.
42	718.301, F.S.; revising conditions under which unit owners
43	other than the developer may elect not less than a
44	majority of the members of the board of administration of
45	an association; amending s. 718.303, F.S.; revising
46	provisions relating to levy of fines; providing for
47	suspension of certain rights of access and voting rights
48	under certain circumstances relating to nonpayment of
49	assessments, fines, or other charges payable to the
50	association; amending s. 718.501, F.S.; providing for
51	jurisdiction of the Division of Florida Condominiums,
52	Timeshares, and Mobile Homes of the department to
53	investigate complaints concerning failure to maintain
54	common elements; prohibiting an officer or director from
55	acting as such for a specified period after having been
56	found to have committed specified violations; providing
57	for payment of restitution and costs of investigation and
58	prosecution in certain circumstances; amending s.
59	718.5012, F.S.; providing a responsibility of the
60	ombudsman to prepare and adopt a "Florida Condominium
61	Handbook"; requiring the publishing and updating of the
62	handbook to be done in conjunction with the division;
63	providing the purpose of the handbook; requiring the
64	handbook to be published on the ombudsman's Internet
65	website; creating part VII of ch. 718, F.S., relating to
66	distressed condominium relief; creating s. 718.701, F.S.;
67	providing a short title; creating s. 718.702, F.S.;
68	providing legislative findings and intent; creating s.
69	718.703, F.S.; defining the terms "bulk assignee" and
70	"bulk buyer"; creating s. 718.704, F.S.; providing for the
71	assignment of developer rights to and the assumption of
72	developer rights by a bulk assignee; specifying
73	liabilities of bulk assignees and bulk buyers; providing
74	exceptions; providing additional responsibilities of bulk
75	assignees and bulk buyers; authorizing certain entities to
76	assign developer rights to a bulk assignee; limiting the
77	number of bulk assignees at any given time; creating s.
78	718.705, F.S.; providing for the transfer of control of a
79	board of administration; providing effects of such
80	transfer on parcels acquired by a bulk assignee; providing
81	obligations of a bulk assignee upon the transfer of
82	control of a board of administration; requiring that a
83	bulk assignee certify certain information in writing;
84	providing for the resolution of a conflict between
85	specified provisions of state law; providing that the
86	failure of a bulk assignee or bulk buyer to comply with
87	specified provisions of state law results in the loss of
88	certain protections and exemptions; creating s. 718.706,
89	F.S.; requiring that a bulk assignee or bulk buyer file
90	certain information with the division before offering any
91	units for sale or lease in excess of a specified term;
92	requiring that a copy of such information be provided to a
93	prospective purchaser; requiring that certain contracts
94	and disclosure statements contain specified statements;
95	requiring that a bulk assignee or bulk buyer comply with
96	certain disclosure requirements; prohibiting a bulk
97	assignee from taking certain actions on behalf of an
98	association while the bulk assignee is in control of the
99	board of administration of the association and requiring
100	that such bulk assignee comply with certain requirements;
101	requiring that a bulk assignee or bulk buyer comply with
102	certain requirements regarding certain contracts;
103	providing unit owners with specified protections regarding
104	certain contracts; requiring that a bulk buyer comply with
105	certain requirements regarding the transfer of a unit;
106	creating s. 718.707, F.S.; prohibiting a person from being
107	classified as a bulk assignee or bulk buyer unless
108	condominium parcels were acquired before a specified date;
109	providing for the determination of the date of acquisition
110	of a parcel; creating s. 718.708, F.S.; providing that the
111	assignment of developer rights to a bulk assignee or bulk
112	buyer does not release a developer from certain
113	liabilities; preserving certain liabilities for certain
114	parties; amending s. 720.302, F.S.; correcting a cross-
115	reference to conform to changes made by the act;
116	establishing legislative intent; amending s. 720.303,
117	F.S.; revising provisions relating to homeowners'
118	association board meetings, inspection and copying of
119	records, reserve accounts of budgets, and recall of
120	directors; prohibiting a salary or compensation for
121	certain association personnel; providing exceptions;
122	providing requirements for the borrowing of funds or
123	committing to a line of credit by the board; providing
124	requirements relating to transfer fees; amending s.
125	720.304, F.S.; revising requirements with respect to the
126	display of flags; amending s. 720.305, F.S.; authorizing
127	fines assessed against members which exceed a certain
128	amount to become a lien against a parcel; amending s.
129	720.306, F.S.; providing requirements for secret ballots;
130	requiring newly elected members of a board of directors to
131	make certain certifications in writing to the association;
132	providing for disqualification for failure to make such
133	certifications; requiring an association to retain
134	certifications for a specified time; amending s. 720.3085,
135	F.S.; requiring a tenant in a unit in which the regular
136	assessments are delinquent to pay future regular
137	assessments to the association; requiring notice;
138	providing for eviction by the association; specifying
139	rights of the tenant; creating s. 720.3095, F.S.;
140	providing requirements of maintenance and management
141	contracts of a homeowners' association; requiring
142	disclosures; providing a penalty; providing exceptions;
143	creating s. 720.3096, F.S.; limiting contracts entered
144	into by a homeowners' association; providing requirements
145	for such contracts; repealing s. 720.311, F.S., relating
146	to a procedure for dispute resolution in homeowners'
147	associations; amending s. 720.401, F.S.; requiring that
148	the disclosure summary to prospective parcel owners
149	include additional provisions; creating part IV of ch.
150	720, F.S., relating to dispute resolution; creating s.
151	720.501, F.S.; providing a short title; creating s.
152	720.502, F.S.; providing legislative findings; creating s.
153	720.503, F.S.; specifying applicability of provisions for
154	mediation and arbitration of disputes in homeowners'
155	associations; providing exceptions; providing for
156	injunctive relief; providing for the tolling of applicable
157	statutes of limitations; creating s. 720.504, F.S.;
158	requiring that the notice of dispute be delivered before
159	referral to mediation or arbitration; providing notice
160	requirements; creating s. 720.505, F.S.; creating a
161	statutory notice form for referral to mediation; providing
162	delivery requirements; requiring parties to share costs;
163	requiring the selection of a mediator and times to meet;
164	providing penalties for failure to mediate; creating s.
165	720.506, F.S.; creating an opt-out provision and
166	procedures; creating s. 720.507, F.S.; creating a
167	statutory notice form for referral to arbitration;
168	providing delivery requirements; requiring parties to
169	share costs; requiring the selection of an arbitrator and
170	times to meet; providing penalties for failure to
171	arbitrate; providing subpoena powers and requirements;
172	providing requirements for and repercussions of subsequent
173	judicial resolution of the dispute; creating s. 720.508,
174	F.S.; providing for rules of procedure; providing for
175	confidentiality; providing applicability to other rules of
176	procedure and provisions of law; specifying that
177	arbitration awards have certain precedential value;
178	creating s. 720.509, F.S.; specifying qualifications for
179	mediators and arbitrators; creating s. 720.510, F.S.;
180	providing for enforcement of mediation agreements and
181	arbitration awards; requiring all new residential
182	construction in a deed-restricted community that requires
183	mandatory membership in the association under specified
184	provisions of Florida law to comply with specified
185	provisions of federal law; providing an effective date.
186
187	Be It Enacted by the Legislature of the State of Florida:
188
189	Section 1.  Paragraph (d) of subsection (1) of section
190	34.01, Florida Statutes, is amended to read:
191	34.01  Jurisdiction of county court.--
192	(1)  County courts shall have original jurisdiction:
193	(d)  Of disputes occurring in the homeowners' associations
194	as described in part IV of chapter 720 s. 720.311(2)(a), which
195	shall be concurrent with jurisdiction of the circuit courts.
196	Section 2.  Paragraph (b) of subsection (2) of section
197	468.436, Florida Statutes, is amended, and subsection (6) is
198	added to that section, to read:
199	468.436  Disciplinary proceedings.--
200	(2)  The following acts constitute grounds for which the
201	disciplinary actions in subsection (4) may be taken:
202	(b)1.  Violation of any provision of this part.
203	2.  Violation of any lawful order or rule rendered or
204	adopted by the department or the council.
205	3.  Being convicted of or pleading nolo contendere to a
206	felony in any court in the United States.
207	4.  Obtaining a license or certification or any other
208	order, ruling, or authorization by means of fraud,
209	misrepresentation, or concealment of material facts.
210	5.  Committing acts of gross misconduct or gross negligence
211	in connection with the profession.
212	6.  Contracting, on behalf of an association, with any
213	entity in which the licensee has a financial interest that is
214	not disclosed.
215	(6)  Upon the fifth or later finding that a community
216	association manager is guilty of any of the grounds set forth in
217	subsection (2), or upon the third or later finding that a
218	community association manager is guilty of a specific ground for
219	which the disciplinary actions set forth in subsection (2) may
220	be taken, the department's discretion under subsection (4) shall
221	not apply and the division shall enter an order permanently
222	revoking the license.
223	Section 3.  Subsection (16) of section 718.103, Florida
224	Statutes, is amended to read:
225	718.103  Definitions.--As used in this chapter, the term:
226	(16)  "Developer" means a person who creates a condominium
227	or offers condominium parcels for sale or lease in the ordinary
228	course of business, but does not include:
229	(a)  An owner or lessee of a condominium or cooperative
230	unit who has acquired the unit for his or her own occupancy;,
231	nor does it include
232	(b)  A cooperative association which creates a condominium
233	by conversion of an existing residential cooperative after
234	control of the association has been transferred to the unit
235	owners if, following the conversion, the unit owners will be the
236	same persons who were unit owners of the cooperative and no
237	units are offered for sale or lease to the public as part of the
238	plan of conversion;.
239	(c)  A bulk assignee or bulk buyer as defined in s.
240	718.703; or
241	(d)  A state, county, or municipal entity is not a
242	developer for any purposes under this act when it is acting as a
243	lessor and not otherwise named as a developer in the declaration
244	of condominium association.
245	Section 4.  Subsections (3) and (5) of section 718.111,
246	Florida Statutes, are amended to read:
247	718.111  The association.--
248	(3)  POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
249	SUE, AND BE SUED.--
250	(a)  The association may contract, sue, or be sued with
251	respect to the exercise or nonexercise of its powers. For these
252	purposes, the powers of the association include, but are not
253	limited to, the maintenance, management, and operation of the
254	condominium property.
255	(b)  After control of the association is obtained by unit
256	owners other than the developer, the association may institute,
257	maintain, settle, or appeal actions or hearings in its name on
258	behalf of all unit owners concerning matters of common interest
259	to most or all unit owners, including, but not limited to, the
260	common elements; the roof and structural components of a
261	building or other improvements; mechanical, electrical, and
262	plumbing elements serving an improvement or a building;
263	representations of the developer pertaining to any existing or
264	proposed commonly used facilities; and protesting ad valorem
265	taxes on commonly used facilities and on units; and may defend
266	actions in eminent domain or bring inverse condemnation actions.
267	(c)  If the association has the authority to maintain a
268	class action, the association may be joined in an action as
269	representative of that class with reference to litigation and
270	disputes involving the matters for which the association could
271	bring a class action. Nothing herein limits any statutory or
272	common-law right of any individual unit owner or class of unit
273	owners to bring any action without participation by the
274	association which may otherwise be available.
275	(d)  The borrowing of funds or committing to a line of
276	credit by the board of administration shall be considered a
277	special assessment, and any meeting of the board of
278	administration to discuss such matters must be noticed as
279	provided in s. 718.112(2)(c). The board may not borrow funds or
280	enter into a line of credit for any purpose unless the specific
281	use of the funds from the loan or line of credit is set forth in
282	the notice of meeting with the same specificity as required for
283	a special assessment or unless the borrowing or line of credit
284	has received the prior approval of at least two-thirds of the
285	voting interests of the association.
286	(5)  RIGHT OF ACCESS TO UNITS.--The association has the
287	irrevocable right of access to each unit during reasonable
288	hours, when necessary for the maintenance, repair, or
289	replacement of any common elements or of any portion of a unit
290	to be maintained by the association pursuant to the declaration
291	or as necessary to prevent damage to the common elements or to a
292	unit or units. Except in cases of emergency, the association
293	must give the unit owner advance written notice of not less than
294	24 hours of its intent to access the unit and such access must
295	be by two persons, one of whom must be a member of the board of
296	administration or a manager or employee of the association and
297	one of whom must be an authorized representative of the
298	association. The identity of the authorized representative
299	seeking access to the unit shall be provided to the unit owner
300	prior to entering the unit.
301	Section 5.  Paragraphs (b), (c), (d), and (h) of subsection
302	(2) of section 718.112, Florida Statutes, are amended to read:
303	718.112  Bylaws.--
304	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
305	following and, if they do not do so, shall be deemed to include
306	the following:
307	(b)  Quorum; voting requirements; proxies.--
308	1.  Unless a lower number is provided in the bylaws, the
309	percentage of voting interests required to constitute a quorum
310	at a meeting of the members shall be a majority of the voting
311	interests. Unless otherwise provided in this chapter or in the
312	declaration, articles of incorporation, or bylaws, and except as
313	provided in sub-subparagraph subparagraph (d)3.a., decisions
314	shall be made by owners of a majority of the voting interests
315	represented at a meeting at which a quorum is present.
316	2.  Except as specifically otherwise provided herein, after
317	January 1, 1992, unit owners may not vote by general proxy, but
318	may vote by limited proxies substantially conforming to a
319	limited proxy form adopted by the division. No voting interest
320	or consent right allocated to a unit owned by the association
321	shall be exercised or considered for any purpose, whether for a
322	quorum, an election, or otherwise. Limited proxies and general
323	proxies may be used to establish a quorum. Limited proxies shall
324	be used for votes taken to waive or reduce reserves in
325	accordance with subparagraph (f)2.; for votes taken to waive the
326	financial reporting requirements of s. 718.111(13); for votes
327	taken to amend the declaration pursuant to s. 718.110; for votes
328	taken to amend the articles of incorporation or bylaws pursuant
329	to this section; and for any other matter for which this chapter
330	requires or permits a vote of the unit owners. Except as
331	provided in paragraph (d), after January 1, 1992, no proxy,
332	limited or general, shall be used in the election of board
333	members. General proxies may be used for other matters for which
334	limited proxies are not required, and may also be used in voting
335	for nonsubstantive changes to items for which a limited proxy is
336	required and given. Notwithstanding the provisions of this
337	subparagraph, unit owners may vote in person at unit owner
338	meetings. Nothing contained herein shall limit the use of
339	general proxies or require the use of limited proxies for any
340	agenda item or election at any meeting of a timeshare
341	condominium association.
342	3.  Any proxy given shall be effective only for the
343	specific meeting for which originally given and any lawfully
344	adjourned meetings thereof. In no event shall any proxy be valid
345	for a period longer than 90 days after the date of the first
346	meeting for which it was given. Every proxy is revocable at any
347	time at the pleasure of the unit owner executing it.
348	4.  A member of the board of administration or a committee
349	may submit in writing his or her agreement or disagreement with
350	any action taken at a meeting that the member did not attend.
351	This agreement or disagreement may not be used as a vote for or
352	against the action taken and may not be used for the purposes of
353	creating a quorum.
354	5.  When any of the board or committee members meet by
355	telephone conference, those board or committee members attending
356	by telephone conference may be counted toward obtaining a quorum
357	and may vote by telephone. A telephone speaker must be used so
358	that the conversation of those board or committee members
359	attending by telephone may be heard by the board or committee
360	members attending in person as well as by any unit owners
361	present at a meeting.
362	(c)  Board of administration meetings.--Meetings of the
363	board of administration at which a quorum of the members is
364	present shall be open to all unit owners. Any unit owner may
365	tape record or videotape meetings of the board of
366	administration. The right to attend such meetings includes the
367	right to speak at such meetings with reference to all designated
368	agenda items. The division shall adopt reasonable rules
369	governing the tape recording and videotaping of the meeting. The
370	association may adopt written reasonable rules governing the
371	frequency, duration, and manner of unit owner statements.
372	Adequate notice of all meetings, which notice shall specifically
373	incorporate an identification of agenda items, shall be posted
374	conspicuously on the condominium property at least 48 continuous
375	hours preceding the meeting except in an emergency. If 20
376	percent of the voting interests petition the board to address an
377	item of business, the board shall at its next regular board
378	meeting or at a special meeting of the board, but not later than
379	60 days after the receipt of the petition, place the item on the
380	agenda. Any item not included on the notice may be taken up on
381	an emergency basis by at least a majority plus one of the
382	members of the board. Such emergency action shall be noticed and
383	ratified at the next regular meeting of the board. However,
384	written notice of any meeting at which nonemergency special
385	assessments, or at which amendment to rules regarding unit use,
386	will be considered shall be mailed, delivered, or electronically
387	transmitted to the unit owners and posted conspicuously on the
388	condominium property not less than 14 days prior to the meeting.
389	Evidence of compliance with this 14-day notice shall be made by
390	an affidavit executed by the person providing the notice and
391	filed among the official records of the association. Upon notice
392	to the unit owners, the board shall by duly adopted rule
393	designate a specific location on the condominium property or
394	association property upon which all notices of board meetings
395	shall be posted. If there is no condominium property or
396	association property upon which notices can be posted, notices
397	of board meetings shall be mailed, delivered, or electronically
398	transmitted at least 14 days before the meeting to the owner of
399	each unit. In lieu of or in addition to the physical posting of
400	notice of any meeting of the board of administration on the
401	condominium property, the association may, by reasonable rule,
402	adopt a procedure for conspicuously posting and repeatedly
403	broadcasting the notice and the agenda on a closed-circuit cable
404	television system serving the condominium association. However,
405	if broadcast notice is used in lieu of a notice posted
406	physically on the condominium property, the notice and agenda
407	must be broadcast at least four times every broadcast hour of
408	each day that a posted notice is otherwise required under this
409	section. When broadcast notice is provided, the notice and
410	agenda must be broadcast in a manner and for a sufficient
411	continuous length of time so as to allow an average reader to
412	observe the notice and read and comprehend the entire content of
413	the notice and the agenda. Notice of any meeting in which
414	regular or special assessments against unit owners are to be
415	considered for any reason shall specifically state that
416	assessments will be considered and the nature of, the actual
417	estimated cost of, and a description of the purposes for such
418	assessments. Meetings of a committee to take final action on
419	behalf of the board or make recommendations to the board
420	regarding the association budget are subject to the provisions
421	of this paragraph. Meetings of a committee that does not take
422	final action on behalf of the board or make recommendations to
423	the board regarding the association budget are subject to the
424	provisions of this section, unless those meetings are exempted
425	from this section by the bylaws of the association.
426	Notwithstanding any other law, the requirement that board
427	meetings and committee meetings be open to the unit owners is
428	inapplicable to meetings between the board or a committee and
429	the association's attorney, with respect to proposed or pending
430	litigation, when the meeting is held for the purpose of seeking
431	or rendering legal advice.
432	(d)  Unit owner meetings.--
433	1.  There shall be an annual meeting of the unit owners
434	held at the location provided in the association bylaws and, if
435	the bylaws are silent as to the location, the meeting shall be
436	held within 45 miles of the condominium property. However, such
437	distance requirement does not apply to an association governing
438	a timeshare condominium. Unless the bylaws provide otherwise, a
439	vacancy on the board caused by the expiration of a director's
440	term shall be filled by electing a new board member, and the
441	election shall be by secret ballot; however, if the number of
442	vacancies equals or exceeds the number of candidates, no
443	election is required. Except in an association governing a
444	timeshare condominium, the terms of all members of the board
445	shall expire at the annual meeting and such board members may
446	stand for reelection unless otherwise permitted by the bylaws.
447	In the event that the bylaws permit staggered terms of no more
448	than 2 years and upon approval of a majority of the total voting
449	interests, the association board members may serve 2-year
450	staggered terms. If the number no person is interested in or
451	demonstrates an intention to run for the position of a board
452	members member whose terms have term has expired according to
453	the provisions of this subparagraph exceeds the number of
454	eligible association members showing interest in or
455	demonstrating an intention to run for the vacant positions, each
456	such board member whose term has expired shall become eligible
457	for reappointment be automatically reappointed to the board of
458	administration and need not stand for reelection. In a
459	condominium association of more than 10 units, or in a
460	condominium association that does not include timeshare units,
461	coowners of a unit may not serve as members of the board of
462	directors at the same time unless they own more than one unit
463	and are not co-occupants of a unit or unless there is an
464	insufficient number of eligible association members showing
465	interest in or demonstrating an intention to run for the vacant
466	positions on the board. Any unit owner desiring to be a
467	candidate for board membership must shall comply with sub-
468	subparagraph subparagraph 3.a. A person who has been suspended
469	or removed by the division under this chapter, or who is
470	delinquent in the payment of any fee, fine, or special or
471	regular assessment as provided in paragraph (n), is not eligible
472	for board membership. A person who has been convicted of any
473	felony in this state or in a United States District or
474	Territorial Court, or who has been convicted of any offense in
475	another jurisdiction that would be considered a felony if
476	committed in this state, is not eligible for board membership
477	unless such felon's civil rights have been restored for a period
478	of no less than 5 years as of the date on which such person
479	seeks election to the board. The validity of an action by the
480	board is not affected if it is later determined that a member of
481	the board is ineligible for board membership due to having been
482	convicted of a felony.
483	2.  The bylaws shall provide the method of calling meetings
484	of unit owners, including annual meetings. Written notice, which
485	notice must include an agenda, shall be mailed, hand delivered,
486	or electronically transmitted to each unit owner at least 14
487	days prior to the annual meeting and shall be posted in a
488	conspicuous place on the condominium property at least 14
489	continuous days preceding the annual meeting. Upon notice to the
490	unit owners, the board shall by duly adopted rule designate a
491	specific location on the condominium property or association
492	property upon which all notices of unit owner meetings shall be
493	posted; however, if there is no condominium property or
494	association property upon which notices can be posted, this
495	requirement does not apply. In lieu of or in addition to the
496	physical posting of notice of any meeting of the unit owners on
497	the condominium property, the association may, by reasonable
498	rule, adopt a procedure for conspicuously posting and repeatedly
499	broadcasting the notice and the agenda on a closed-circuit cable
500	television system serving the condominium association. However,
501	if broadcast notice is used in lieu of a notice posted
502	physically on the condominium property, the notice and agenda
503	must be broadcast at least four times every broadcast hour of
504	each day that a posted notice is otherwise required under this
505	section. When broadcast notice is provided, the notice and
506	agenda must be broadcast in a manner and for a sufficient
507	continuous length of time so as to allow an average reader to
508	observe the notice and read and comprehend the entire content of
509	the notice and the agenda. Unless a unit owner waives in writing
510	the right to receive notice of the annual meeting, such notice
511	shall be hand delivered, mailed, or electronically transmitted
512	to each unit owner. Notice for meetings and notice for all other
513	purposes shall be mailed to each unit owner at the address last
514	furnished to the association by the unit owner, or hand
515	delivered to each unit owner. However, if a unit is owned by
516	more than one person, the association shall provide notice, for
517	meetings and all other purposes, to that one address which the
518	developer initially identifies for that purpose and thereafter
519	as one or more of the owners of the unit shall so advise the
520	association in writing, or if no address is given or the owners
521	of the unit do not agree, to the address provided on the deed of
522	record. An officer of the association, or the manager or other
523	person providing notice of the association meeting, shall
524	provide an affidavit or United States Postal Service certificate
525	of mailing, to be included in the official records of the
526	association affirming that the notice was mailed or hand
527	delivered, in accordance with this provision.
528	3.a.  The members of the board shall be elected by written
529	ballot or voting machine. Proxies shall in no event be used in
530	electing the board, either in general elections or elections to
531	fill vacancies caused by recall, resignation, or otherwise,
532	unless otherwise provided in this chapter. Not less than 60 days
533	before a scheduled election, the association shall mail,
534	deliver, or electronically transmit, whether by separate
535	association mailing or included in another association mailing,
536	delivery, or transmission, including regularly published
537	newsletters, to each unit owner entitled to a vote, a first
538	notice of the date of the election along with a certification
539	form provided by the division attesting that he or she has read
540	and understands, to the best of his or her ability, the
541	governing documents of the association and the provisions of
542	this chapter and any applicable rules. Any unit owner or other
543	eligible person desiring to be a candidate for the board must
544	give written notice of his or her intent to be a candidate to
545	the association not less than 40 days before a scheduled
546	election. Together with the written notice and agenda as set
547	forth in subparagraph 2., the association shall mail, deliver,
548	or electronically transmit a second notice of the election to
549	all unit owners entitled to vote therein, together with a ballot
550	which shall list all candidates. Upon request of a candidate,
551	the association shall include an information sheet, no larger
552	than 8 1/2 inches by 11 inches, which must be furnished by the
553	candidate not less than 35 days before the election, shall along
554	with the signed certification form provided for in this
555	subparagraph, to be included with the mailing, delivery, or
556	transmission of the ballot, with the costs of mailing, delivery,
557	or electronic transmission and copying to be borne by the
558	association. The association is not liable for the contents of
559	the information sheets prepared by the candidates. In order to
560	reduce costs, the association may print or duplicate the
561	information sheets on both sides of the paper. The division
562	shall by rule establish voting procedures consistent with the
563	provisions contained herein, including rules establishing
564	procedures for giving notice by electronic transmission and
565	rules providing for the secrecy of ballots. Elections shall be
566	decided by a plurality of those ballots cast. There shall be no
567	quorum requirement; however, at least 20 percent of the eligible
568	voters must cast a ballot in order to have a valid election of
569	members of the board. No unit owner shall permit any other
570	person to vote his or her ballot, and any such ballots
571	improperly cast shall be deemed invalid, provided any unit owner
572	who violates this provision may be fined by the association in
573	accordance with s. 718.303. A unit owner who needs assistance in
574	casting the ballot for the reasons stated in s. 101.051 may
575	obtain assistance in casting the ballot. The regular election
576	shall occur on the date of the annual meeting. The provisions of
577	this sub-subparagraph subparagraph shall not apply to timeshare
578	condominium associations. Notwithstanding the provisions of this
579	sub-subparagraph subparagraph, an election is not required
580	unless more candidates file notices of intent to run or are
581	nominated than board vacancies exist.
582	b.  Within 90 days after being elected to the board, each
583	newly elected director shall certify in writing to the secretary
584	of the association that he or she has read the association's
585	declarations of covenants and restrictions, articles of
586	incorporation, bylaws, and current written policies; that he or
587	she will work to uphold such documents and policies to the best
588	of his or her ability; and that he or she will faithfully
589	discharge his or her fiduciary responsibility to the
590	association's members. In lieu of this written certification,
591	the newly elected director may submit a certificate of
592	satisfactory completion of the educational curriculum
593	administered by a division-approved condominium education
594	provider. Failure to timely file the written certification or
595	educational certificate automatically disqualifies the director
596	from service on the board. The secretary shall cause the
597	association to retain a director's written certification or
598	educational certificate for inspection by the members for 5
599	years after a director's election. Failure to have such written
600	certification or educational certificate on file does not affect
601	the validity of any appropriate action.
602	4.  Any approval by unit owners called for by this chapter
603	or the applicable declaration or bylaws, including, but not
604	limited to, the approval requirement in s. 718.111(8), shall be
605	made at a duly noticed meeting of unit owners and shall be
606	subject to all requirements of this chapter or the applicable
607	condominium documents relating to unit owner decisionmaking,
608	except that unit owners may take action by written agreement,
609	without meetings, on matters for which action by written
610	agreement without meetings is expressly allowed by the
611	applicable bylaws or declaration or any statute that provides
612	for such action.
613	5.  Unit owners may waive notice of specific meetings if
614	allowed by the applicable bylaws or declaration or any statute.
615	If authorized by the bylaws, notice of meetings of the board of
616	administration, unit owner meetings, except unit owner meetings
617	called to recall board members under paragraph (j), and
618	committee meetings may be given by electronic transmission to
619	unit owners who consent to receive notice by electronic
620	transmission.
621	6.  Unit owners shall have the right to participate in
622	meetings of unit owners with reference to all designated agenda
623	items. However, the association may adopt reasonable rules
624	governing the frequency, duration, and manner of unit owner
625	participation.
626	7.  Any unit owner may tape record or videotape a meeting
627	of the unit owners subject to reasonable rules adopted by the
628	division.
629	8.  Unless otherwise provided in the bylaws, any vacancy
630	occurring on the board before the expiration of a term may be
631	filled by the affirmative vote of the majority of the remaining
632	directors, even if the remaining directors constitute less than
633	a quorum, or by the sole remaining director. In the alternative,
634	a board may hold an election to fill the vacancy, in which case
635	the election procedures must conform to the requirements of sub-
636	subparagraph subparagraph 3.a. unless the association governs 10
637	units or fewer less and has opted out of the statutory election
638	process, in which case the bylaws of the association control.
639	Unless otherwise provided in the bylaws, a board member
640	appointed or elected under this section shall fill the vacancy
641	for the unexpired term of the seat being filled. Filling
642	vacancies created by recall is governed by paragraph (j) and
643	rules adopted by the division.
644
645	Notwithstanding subparagraph subparagraphs (b)2. and sub-
646	subparagraph (d)3.a., an association of 10 or fewer units may,
647	by the affirmative vote of a majority of the total voting
648	interests, provide for different voting and election procedures
649	in its bylaws, which vote may be by a proxy specifically
650	delineating the different voting and election procedures. The
651	different voting and election procedures may provide for
652	elections to be conducted by limited or general proxy.
653	(h)  Amendment of bylaws.--
654	1.  The method by which the bylaws may be amended
655	consistent with the provisions of this chapter shall be stated.
656	If the bylaws fail to provide a method of amendment, the bylaws
657	may be amended if the amendment is approved by the owners of not
658	less than two-thirds of the voting interests.
659	2.  No bylaw shall be revised or amended by reference to
660	its title or number only. Proposals to amend existing bylaws
661	shall contain the full text of the bylaws to be amended; new
662	words shall be inserted in the text underlined, and words to be
663	deleted shall be lined through with hyphens. However, if the
664	proposed change is so extensive that this procedure would
665	hinder, rather than assist, the understanding of the proposed
666	amendment, it is not necessary to use underlining and hyphens as
667	indicators of words added or deleted, but, instead, a notation
668	must be inserted immediately preceding the proposed amendment in
669	substantially the following language: "Substantial rewording of
670	bylaw. See bylaw _____ for present text."
671	3.  Nonmaterial errors or omissions in the bylaw process
672	will not invalidate an otherwise properly promulgated amendment.
673	4.  If the bylaws provide for amendment by the board of
674	administration, no bylaw may be amended unless it is heard and
675	noticed at two consecutive meetings of the board of
676	administration that are at least 1 week apart.
677	Section 6.  Paragraph (d) of subsection (1) of section
678	718.115, Florida Statutes, is amended to read:
679	718.115  Common expenses and common surplus.--
680	(1)
681	(d)  If so provided in the declaration, the cost of
682	communications services as defined in chapter 202, information
683	services, or Internet services a master antenna television
684	system or duly franchised cable television service obtained
685	pursuant to a bulk contract shall be deemed a common expense. If
686	the declaration does not provide for the cost of communications
687	services as defined in chapter 202, information services, or
688	Internet services a master antenna television system or duly
689	franchised cable television service obtained under a bulk
690	contract as a common expense, the board may enter into such a
691	contract, and the cost of the service will be a common expense
692	but allocated on a per-unit basis rather than a percentage basis
693	if the declaration provides for other than an equal sharing of
694	common expenses, and any contract entered into before July 1,
695	1998, in which the cost of the service is not equally divided
696	among all unit owners, may be changed by vote of a majority of
697	the voting interests present at a regular or special meeting of
698	the association, to allocate the cost equally among all units.
699	The contract shall be for a term of not less than 2 years.
700	1.  Any contract made by the board after the effective date
701	hereof for communications services as defined in chapter 202,
702	information services, or Internet services a community antenna
703	system or duly franchised cable television service may be
704	canceled by a majority of the voting interests present at the
705	next regular or special meeting of the association. Any member
706	may make a motion to cancel the said contract, but if no motion
707	is made or if such motion fails to obtain the required majority
708	at the next regular or special meeting, whichever occurs is
709	sooner, following the making of the contract, then such contract
710	shall be deemed ratified for the term therein expressed.
711	2.  Any such contract shall provide, and shall be deemed to
712	provide if not expressly set forth, that any hearing-impaired or
713	legally blind unit owner who does not occupy the unit with a
714	non-hearing-impaired or sighted person, or any unit owner
715	receiving supplemental security income under Title XVI of the
716	Social Security Act or food stamps as administered by the
717	Department of Children and Family Services pursuant to s.
718	414.31, may discontinue the cable or video service without
719	incurring disconnect fees, penalties, or subsequent service
720	charges, and, as to such units, the owners shall not be required
721	to pay any common expenses charge related to such service. If
722	fewer less than all members of an association share the expenses
723	of cable or video service television, the expense shall be
724	shared equally by all participating unit owners. The association
725	may use the provisions of s. 718.116 to enforce payment of the
726	shares of such costs by the unit owners receiving cable or video
727	service television.
728	Section 7.  Subsection (11) is added to section 718.116,
729	Florida Statutes, to read:
730	718.116  Assessments; liability; lien and priority;
731	interest; collection.--
732	(11)  During the pendency of any foreclosure action of a
733	condominium unit, if the unit is occupied by a tenant and the
734	unit owner is delinquent in the payment of regular assessments,
735	the association may demand that the tenant pay to the
736	association the future regular assessments related to the
737	condominium unit. The demand shall be continuing in nature, and
738	upon demand the tenant shall continue to pay the regular
739	assessments to the association until the association releases
740	the tenant or the tenant discontinues tenancy in the unit. The
741	association shall mail written notice to the unit owner of the
742	association's demand that the tenant pay regular assessments to
743	the association. The tenant shall not be liable for increases in
744	the amount of the regular assessment due unless the tenant was
745	reasonably notified of the increase prior to the day that the
746	rent is due. The tenant shall be given a credit against rents
747	due to the unit owner in the amount of assessments paid to the
748	association. The association shall, upon request, provide the
749	tenant with written receipts for payments made. The association
750	may issue notices under s. 83.56 and may sue for eviction under
751	ss. 83.59-83.625 as if the association were a landlord under
752	part II of chapter 83 should the tenant fail to pay an
753	assessment. However, the association shall not otherwise be
754	considered a landlord under chapter 83 and shall specifically
755	not have any duty under s. 83.51. The tenant shall not, by
756	virtue of payment of assessments, have any of the rights of a
757	unit owner to vote in any election or to examine the books and
758	records of the association. A court may supersede the effect of
759	this subsection by appointing a receiver.
760	Section 8.  Subsection (2) of section 718.1265, Florida
761	Statutes, is amended to read:
762	718.1265  Association emergency powers.--
763	(2)  The special powers authorized under subsection (1)
764	shall be limited to that time reasonably necessary to protect
765	the health, safety, and welfare of the association and the unit
766	owners and the unit owners' family members, tenants, guests,
767	agents, or invitees and shall be reasonably necessary to
768	mitigate further damage and make emergency repairs.
769	Additionally, unless 20 percent or more of the units are made
770	uninhabitable by the emergency, the special powers authorized
771	under subsection (1) may only be exercised during the term of
772	the Governor's executive order or proclamation declaring the
773	state of emergency in the locale in which the condominium is
774	located.
775	Section 9.  Subsection (1) of section 718.301, Florida
776	Statutes, is amended to read:
777	718.301  Transfer of association control; claims of defect
778	by association.--
779	(1)  When unit owners other than the developer own 15
780	percent or more of the units in a condominium that will be
781	operated ultimately by an association, the unit owners other
782	than the developer shall be entitled to elect no less than one-
783	third of the members of the board of administration of the
784	association. Unit owners other than the developer are entitled
785	to elect not less than a majority of the members of the board of
786	administration of an association:
787	(a)  Three years after 50 percent of the units that will be
788	operated ultimately by the association have been conveyed to
789	purchasers;
790	(b)  Three months after 90 percent of the units that will
791	be operated ultimately by the association have been conveyed to
792	purchasers;
793	(c)  When all the units that will be operated ultimately by
794	the association have been completed, some of them have been
795	conveyed to purchasers, and none of the others are being offered
796	for sale by the developer in the ordinary course of business;
797	(d)  When some of the units have been conveyed to
798	purchasers and none of the others are being constructed or
799	offered for sale by the developer in the ordinary course of
800	business;
801	(e)  When the developer files a petition seeking protection
802	in bankruptcy;
803	(f)  When a receiver for the developer is appointed by a
804	circuit court and is not discharged within 30 days after such
805	appointment, unless the court determines within 30 days after
806	appointment of the receiver that transfer of control would be
807	detrimental to the association or its members; or
808	(g)  Seven years after recordation of the declaration of
809	condominium; or, in the case of an association which may
810	ultimately operate more than one condominium, 7 years after
811	recordation of the declaration for the first condominium it
812	operates; or, in the case of an association operating a phase
813	condominium created pursuant to s. 718.403, 7 years after
814	recordation of the declaration creating the initial phase,
815
816	whichever occurs first. The developer is entitled to elect at
817	least one member of the board of administration of an
818	association as long as the developer holds for sale in the
819	ordinary course of business at least 5 percent, in condominiums
820	with fewer than 500 units, and 2 percent, in condominiums with
821	more than 500 units, of the units in a condominium operated by
822	the association. Following the time the developer relinquishes
823	control of the association, the developer may exercise the right
824	to vote any developer-owned units in the same manner as any
825	other unit owner except for purposes of reacquiring control of
826	the association or selecting the majority members of the board
827	of administration.
828	Section 10.  Subsection (3) of section 718.303, Florida
829	Statutes, is amended, and subsections (4) and (5) are added to
830	that section, to read:
831	718.303  Obligations of owners; waiver; suspension of
832	access or voting rights or levy of fine against unit by
833	association.--
834	(3)  If a unit owner is delinquent for more than 90 days in
835	the payment of regular or special assessments or the declaration
836	or bylaws so provide, the association may suspend, for a
837	reasonable time, the right of a unit owner or a unit's occupant,
838	licensee, or invitee to use common elements, common facilities,
839	or any other association property. This subsection does not
840	apply to limited common elements intended to be used only by
841	that unit, common elements that must be used to access the unit,
842	utility services provided to the unit, parking spaces, or
843	elevators. The association may also levy reasonable fines
844	against a unit for the failure of the owner of the unit, or its
845	occupant, licensee, or invitee, to comply with any provision of
846	the declaration, the association bylaws, or reasonable rules of
847	the association. No fine will become a lien against a unit. A No
848	fine may not exceed $100 per violation. However, a fine may be
849	levied on the basis of each day of a continuing violation, with
850	a single notice and opportunity for hearing, provided that no
851	such fine shall in the aggregate exceed $1,000. A No fine may
852	not be levied and a suspension may not be imposed unless the
853	association first gives except after giving reasonable notice
854	and opportunity for a hearing to the unit owner and, if
855	applicable, its occupant, licensee, or invitee. The hearing must
856	be held before a committee of other unit owners who are neither
857	board members nor persons residing in a board member's
858	household. If the committee does not agree with the fine or
859	suspension, the fine or suspension may not be levied or imposed.
860	The provisions of this subsection do not apply to unoccupied
861	units.
862	(4)  The notice and hearing requirements of subsection (3)
863	do not apply to the imposition of suspensions or fines against a
864	unit owner or a unit's occupant, licensee, or invitee because of
865	the failure to pay any amounts due the association. If such a
866	fine or suspension is imposed, the association must levy the
867	fine or impose a reasonable suspension at a properly noticed
868	board meeting, and after the imposition of such fine or
869	suspension, the association must notify the unit owner and, if
870	applicable, the unit's occupant, licensee, or invitee by mail or
871	hand delivery.
872	(5)  If the declaration or bylaws so provide, an
873	association may also suspend the voting rights of a member due
874	to nonpayment of assessments, fines, or other charges payable to
875	the association which are delinquent in excess of 90 days.
876	Section 11.  Subsection (1) of section 718.501, Florida
877	Statutes, is amended to read:
878	718.501  Authority, responsibility, and duties of Division
879	of Florida Condominiums, Timeshares, and Mobile Homes.--
880	(1)  The Division of Florida Condominiums, Timeshares, and
881	Mobile Homes of the Department of Business and Professional
882	Regulation, referred to as the "division" in this part, has the
883	power to enforce and ensure compliance with the provisions of
884	this chapter and rules relating to the development,
885	construction, sale, lease, ownership, operation, and management
886	of residential condominium units. In performing its duties, the
887	division has complete jurisdiction to investigate complaints and
888	enforce compliance with the provisions of this chapter with
889	respect to associations that are still under developer control
890	and complaints against developers involving improper turnover or
891	failure to turnover, pursuant to s. 718.301. However, after
892	turnover has occurred, the division shall only have jurisdiction
893	to investigate complaints related to financial issues, failure
894	to maintain common elements, elections, and unit owner access to
895	association records pursuant to s. 718.111(12).
896	(a)1.  The division may make necessary public or private
897	investigations within or outside this state to determine whether
898	any person has violated this chapter or any rule or order
899	hereunder, to aid in the enforcement of this chapter, or to aid
900	in the adoption of rules or forms hereunder.
901	2.  The division may submit any official written report,
902	worksheet, or other related paper, or a duly certified copy
903	thereof, compiled, prepared, drafted, or otherwise made by and
904	duly authenticated by a financial examiner or analyst to be
905	admitted as competent evidence in any hearing in which the
906	financial examiner or analyst is available for cross-examination
907	and attests under oath that such documents were prepared as a
908	result of an examination or inspection conducted pursuant to
909	this chapter.
910	(b)  The division may require or permit any person to file
911	a statement in writing, under oath or otherwise, as the division
912	determines, as to the facts and circumstances concerning a
913	matter to be investigated.
914	(c)  For the purpose of any investigation under this
915	chapter, the division director or any officer or employee
916	designated by the division director may administer oaths or
917	affirmations, subpoena witnesses and compel their attendance,
918	take evidence, and require the production of any matter which is
919	relevant to the investigation, including the existence,
920	description, nature, custody, condition, and location of any
921	books, documents, or other tangible things and the identity and
922	location of persons having knowledge of relevant facts or any
923	other matter reasonably calculated to lead to the discovery of
924	material evidence. Upon the failure by a person to obey a
925	subpoena or to answer questions propounded by the investigating
926	officer and upon reasonable notice to all persons affected
927	thereby, the division may apply to the circuit court for an
928	order compelling compliance.
929	(d)  Notwithstanding any remedies available to unit owners
930	and associations, if the division has reasonable cause to
931	believe that a violation of any provision of this chapter or
932	related rule has occurred, the division may institute
933	enforcement proceedings in its own name against any developer,
934	association, officer, or member of the board of administration,
935	or its assignees or agents, as follows:
936	1.  The division may permit a person whose conduct or
937	actions may be under investigation to waive formal proceedings
938	and enter into a consent proceeding whereby orders, rules, or
939	letters of censure or warning, whether formal or informal, may
940	be entered against the person.
941	2.  The division may issue an order requiring the
942	developer, association, developer-designated officer, or
943	developer-designated member of the board of administration,
944	developer-designated assignees or agents, community association
945	manager, or community association management firm to cease and
946	desist from the unlawful practice and take such affirmative
947	action as in the judgment of the division will carry out the
948	purposes of this chapter. If the division finds that a
949	developer, association, officer, or member of the board of
950	administration, or its assignees or agents, is violating or is
951	about to violate any provision of this chapter, any rule adopted
952	or order issued by the division, or any written agreement
953	entered into with the division, and presents an immediate danger
954	to the public requiring an immediate final order, it may issue
955	an emergency cease and desist order reciting with particularity
956	the facts underlying such findings. The emergency cease and
957	desist order is effective for 90 days. If the division begins
958	nonemergency cease and desist proceedings, the emergency cease
959	and desist order remains effective until the conclusion of the
960	proceedings under ss. 120.569 and 120.57.
961	3.  If a developer fails to pay any restitution determined
962	by the division to be owed, plus any accrued interest at the
963	highest rate permitted by law, within 30 days after expiration
964	of any appellate time period of a final order requiring payment
965	of restitution or the conclusion of any appeal thereof,
966	whichever is later, the division shall bring an action in
967	circuit or county court on behalf of any association, class of
968	unit owners, lessees, or purchasers for restitution, declaratory
969	relief, injunctive relief, or any other available remedy. The
970	division may also temporarily revoke its acceptance of the
971	filing for the developer to which the restitution relates until
972	payment of restitution is made.
973	4.  The division may petition the court for the appointment
974	of a receiver or conservator. If appointed, the receiver or
975	conservator may take action to implement the court order to
976	ensure the performance of the order and to remedy any breach
977	thereof. In addition to all other means provided by law for the
978	enforcement of an injunction or temporary restraining order, the
979	circuit court may impound or sequester the property of a party
980	defendant, including books, papers, documents, and related
981	records, and allow the examination and use of the property by
982	the division and a court-appointed receiver or conservator.
983	5.  The division may apply to the circuit court for an
984	order of restitution whereby the defendant in an action brought
985	pursuant to subparagraph 4. shall be ordered to make restitution
986	of those sums shown by the division to have been obtained by the
987	defendant in violation of this chapter. Such restitution shall,
988	at the option of the court, be payable to the conservator or
989	receiver appointed pursuant to subparagraph 4. or directly to
990	the persons whose funds or assets were obtained in violation of
991	this chapter.
992	6.  The division may impose a civil penalty against a
993	developer or association, or its assignee or agent, for any
994	violation of this chapter or a rule adopted under this chapter.
995	The division may impose a civil penalty individually against any
996	officer or board member who willfully and knowingly violates a
997	provision of this chapter, adopted rule, or a final order of the
998	division; may order the removal of such individual as an officer
999	or from the board of administration or as an officer of the
1000	association; and may prohibit such individual from serving as an
1001	officer or on the board of a community association for a period
1002	of time. The term "willfully and knowingly" means that the
1003	division informed the officer or board member that his or her
1004	action or intended action violates this chapter, a rule adopted
1005	under this chapter, or a final order of the division and that
1006	the officer or board member refused to comply with the
1007	requirements of this chapter, a rule adopted under this chapter,
1008	or a final order of the division. The division, prior to
1009	initiating formal agency action under chapter 120, shall afford
1010	the officer or board member an opportunity to voluntarily comply
1011	with this chapter, a rule adopted under this chapter, or a final
1012	order of the division. An officer or board member who complies
1013	within 10 days is not subject to a civil penalty. A penalty may
1014	be imposed on the basis of each day of continuing violation, but
1015	in no event shall the penalty for any offense exceed $5,000. By
1016	January 1, 1998, the division shall adopt, by rule, penalty
1017	guidelines applicable to possible violations or to categories of
1018	violations of this chapter or rules adopted by the division. The
1019	guidelines must specify a meaningful range of civil penalties
1020	for each such violation of the statute and rules and must be
1021	based upon the harm caused by the violation, the repetition of
1022	the violation, and upon such other factors deemed relevant by
1023	the division. For example, the division may consider whether the
1024	violations were committed by a developer or owner-controlled
1025	association, the size of the association, and other factors. The
1026	guidelines must designate the possible mitigating or aggravating
1027	circumstances that justify a departure from the range of
1028	penalties provided by the rules. It is the legislative intent
1029	that minor violations be distinguished from those which endanger
1030	the health, safety, or welfare of the condominium residents or
1031	other persons and that such guidelines provide reasonable and
1032	meaningful notice to the public of likely penalties that may be
1033	imposed for proscribed conduct. This subsection does not limit
1034	the ability of the division to informally dispose of
1035	administrative actions or complaints by stipulation, agreed
1036	settlement, or consent order. All amounts collected shall be
1037	deposited with the Chief Financial Officer to the credit of the
1038	Division of Florida Condominiums, Timeshares, and Mobile Homes
1039	Trust Fund. If a developer fails to pay the civil penalty and
1040	the amount deemed to be owed to the association, the division
1041	shall issue an order directing that such developer cease and
1042	desist from further operation until such time as the civil
1043	penalty is paid or may pursue enforcement of the penalty in a
1044	court of competent jurisdiction. If an association fails to pay
1045	the civil penalty, the division shall pursue enforcement in a
1046	court of competent jurisdiction, and the order imposing the
1047	civil penalty or the cease and desist order will not become
1048	effective until 20 days after the date of such order. Any action
1049	commenced by the division shall be brought in the county in
1050	which the division has its executive offices or in the county
1051	where the violation occurred.
1052	7.  If a unit owner presents the division with proof that
1053	the unit owner has requested access to official records in
1054	writing by certified mail, and that after 10 days the unit owner
1055	again made the same request for access to official records in
1056	writing by certified mail, and that more than 10 days has
1057	elapsed since the second request and the association has still
1058	failed or refused to provide access to official records as
1059	required by this chapter, the division shall issue a subpoena
1060	requiring production of the requested records where the records
1061	are kept pursuant to s. 718.112.
1062	8.  In addition to subparagraph 6., the division may seek
1063	the imposition of a civil penalty through the circuit court for
1064	any violation for which the division may issue a notice to show
1065	cause under paragraph (r). The civil penalty shall be at least
1066	$500 but no more than $5,000 for each violation. The court may
1067	also award to the prevailing party court costs and reasonable
1068	attorney's fees and, if the division prevails, may also award
1069	reasonable costs of investigation.
1070	9.  Notwithstanding subparagraph 6., when the division
1071	finds that an officer or director has intentionally falsified
1072	association records with the intent to conceal material facts
1073	from the division, the board, or unit owners, the division shall
1074	prohibit the officer or director from acting as an officer or
1075	director of any condominium, cooperative, or homeowners'
1076	association for at least 1 year.
1077	10.  When the division finds that any person has derived an
1078	improper personal benefit from a condominium association, the
1079	division shall order the person to pay restitution to the
1080	association and shall order the person to pay to the division
1081	the costs of investigation and prosecution.
1082	(e)  The division may prepare and disseminate a prospectus
1083	and other information to assist prospective owners, purchasers,
1084	lessees, and developers of residential condominiums in assessing
1085	the rights, privileges, and duties pertaining thereto.
1086	(f)  The division has authority to adopt rules pursuant to
1087	ss. 120.536(1) and 120.54 to implement and enforce the
1088	provisions of this chapter.
1089	(g)  The division shall establish procedures for providing
1090	notice to an association and the developer during the period
1091	where the developer controls the association when the division
1092	is considering the issuance of a declaratory statement with
1093	respect to the declaration of condominium or any related
1094	document governing in such condominium community.
1095	(h)  The division shall furnish each association which pays
1096	the fees required by paragraph (2)(a) a copy of this act,
1097	subsequent changes to this act on an annual basis, an amended
1098	version of this act as it becomes available from the Secretary
1099	of State's office on a biennial basis, and the rules adopted
1100	thereto on an annual basis.
1101	(i)  The division shall annually provide each association
1102	with a summary of declaratory statements and formal legal
1103	opinions relating to the operations of condominiums which were
1104	rendered by the division during the previous year.
1105	(j)  The division shall provide training and educational
1106	programs for condominium association board members and unit
1107	owners. The training may, in the division's discretion, include
1108	web-based electronic media, and live training and seminars in
1109	various locations throughout the state. The division shall have
1110	the authority to review and approve education and training
1111	programs for board members and unit owners offered by providers
1112	and shall maintain a current list of approved programs and
1113	providers and shall make such list available to board members
1114	and unit owners in a reasonable and cost-effective manner.
1115	(k)  The division shall maintain a toll-free telephone
1116	number accessible to condominium unit owners.
1117	(l)  The division shall develop a program to certify both
1118	volunteer and paid mediators to provide mediation of condominium
1119	disputes. The division shall provide, upon request, a list of
1120	such mediators to any association, unit owner, or other
1121	participant in arbitration proceedings under s. 718.1255
1122	requesting a copy of the list. The division shall include on the
1123	list of volunteer mediators only the names of persons who have
1124	received at least 20 hours of training in mediation techniques
1125	or who have mediated at least 20 disputes. In order to become
1126	initially certified by the division, paid mediators must be
1127	certified by the Supreme Court to mediate court cases in county
1128	or circuit courts. However, the division may adopt, by rule,
1129	additional factors for the certification of paid mediators,
1130	which factors must be related to experience, education, or
1131	background. Any person initially certified as a paid mediator by
1132	the division must, in order to continue to be certified, comply
1133	with the factors or requirements imposed by rules adopted by the
1134	division.
1135	(m)  When a complaint is made, the division shall conduct
1136	its inquiry with due regard to the interests of the affected
1137	parties. Within 30 days after receipt of a complaint, the
1138	division shall acknowledge the complaint in writing and notify
1139	the complainant whether the complaint is within the jurisdiction
1140	of the division and whether additional information is needed by
1141	the division from the complainant. The division shall conduct
1142	its investigation and shall, within 90 days after receipt of the
1143	original complaint or of timely requested additional
1144	information, take action upon the complaint. However, the
1145	failure to complete the investigation within 90 days does not
1146	prevent the division from continuing the investigation,
1147	accepting or considering evidence obtained or received after 90
1148	days, or taking administrative action if reasonable cause exists
1149	to believe that a violation of this chapter or a rule of the
1150	division has occurred. If an investigation is not completed
1151	within the time limits established in this paragraph, the
1152	division shall, on a monthly basis, notify the complainant in
1153	writing of the status of the investigation. When reporting its
1154	action to the complainant, the division shall inform the
1155	complainant of any right to a hearing pursuant to ss. 120.569
1156	and 120.57.
1157	(n)  Condominium association directors, officers, and
1158	employees; condominium developers; community association
1159	managers; and community association management firms have an
1160	ongoing duty to reasonably cooperate with the division in any
1161	investigation pursuant to this section. The division shall refer
1162	to local law enforcement authorities any person whom the
1163	division believes has altered, destroyed, concealed, or removed
1164	any record, document, or thing required to be kept or maintained
1165	by this chapter with the purpose to impair its verity or
1166	availability in the department's investigation.
1167	(o)  The division may:
1168	1.  Contract with agencies in this state or other
1169	jurisdictions to perform investigative functions; or
1170	2.  Accept grants-in-aid from any source.
1171	(p)  The division shall cooperate with similar agencies in
1172	other jurisdictions to establish uniform filing procedures and
1173	forms, public offering statements, advertising standards, and
1174	rules and common administrative practices.
1175	(q)  The division shall consider notice to a developer to
1176	be complete when it is delivered to the developer's address
1177	currently on file with the division.
1178	(r)  In addition to its enforcement authority, the division
1179	may issue a notice to show cause, which shall provide for a
1180	hearing, upon written request, in accordance with chapter 120.
1181	(s)  The division shall submit to the Governor, the
1182	President of the Senate, the Speaker of the House of
1183	Representatives, and the chairs of the legislative
1184	appropriations committees an annual report that includes, but
1185	need not be limited to, the number of training programs provided
1186	for condominium association board members and unit owners, the
1187	number of complaints received by type, the number and percent of
1188	complaints acknowledged in writing within 30 days and the number
1189	and percent of investigations acted upon within 90 days in
1190	accordance with paragraph (m), and the number of investigations
1191	exceeding the 90-day requirement. The annual report shall also
1192	include an evaluation of the division's core business processes
1193	and make recommendations for improvements, including statutory
1194	changes. The report shall be submitted by September 30 following
1195	the end of the fiscal year.
1196	Section 12.  Subsection (4) of section 718.5012, Florida
1197	Statutes, is amended to read:
1198	718.5012  Ombudsman; powers and duties.--The ombudsman
1199	shall have the powers that are necessary to carry out the duties
1200	of his or her office, including the following specific powers:
1201	(4)  To act as liaison between the division, unit owners,
1202	boards of directors, board members, community association
1203	managers, and other affected parties. The ombudsman shall
1204	develop policies and procedures to assist unit owners, boards of
1205	directors, board members, community association managers, and
1206	other affected parties to understand their rights and
1207	responsibilities as set forth in this chapter and the
1208	condominium documents governing their respective association.
1209	The ombudsman shall coordinate and assist in the preparation and
1210	adoption of educational and reference material, and shall
1211	endeavor to coordinate with private or volunteer providers of
1212	these services, so that the availability of these resources is
1213	made known to the largest possible audience. In conjunction with
1214	the division, included in the preparation and adoption of
1215	educational and reference materials shall be the publishing and
1216	updating of a "Florida Condominium Handbook" to facilitate
1217	understanding of this chapter, the contents of which are stated
1218	in a clear, conspicuous, and easily understandable manner. The
1219	handbook shall be made publicly available on the ombudsman's
1220	Internet website.
1221	Section 13.  Part VII of chapter 718, Florida Statutes,
1222	consisting of sections 718.701, 718.702, 718.703, 718.704,
1223	718.705, 718.706, 718.707, and 718.708, is created to read:
1224	PART VII
1225	DISTRESSED CONDOMINIUM RELIEF
1226	718.701  Short title.--This part may be cited as the
1227	"Distressed Condominium Relief Act."
1228	718.702  Legislative intent.--
1229	(1)  The Legislature acknowledges the massive downturn in
1230	the condominium market which has transpired throughout the state
1231	and the impact of such downturn on developers, lenders, unit
1232	owners, and condominium associations. Numerous condominium
1233	projects have either failed or are in the process of failing,
1234	whereby the condominium has a small percentage of third-party
1235	unit owners as compared to the unsold inventory of units. As a
1236	result of the inability to find purchasers for this inventory of
1237	units, which results in part from the devaluing of real estate
1238	in this state, developers are unable to satisfy the requirements
1239	of their lenders, leading to defaults on mortgages.
1240	Consequently, lenders are faced with the task of finding a
1241	solution to the problem in order to be paid for their
1242	investments.
1243	(2)  The Legislature recognizes that all of the factors
1244	listed in this section lead to condominiums becoming distressed,
1245	resulting in detriment to the unit owners and the condominium
1246	association on account of the resulting shortage of assessment
1247	moneys available to support the financial requirements for
1248	proper maintenance of the condominium. Such shortage and the
1249	resulting lack of proper maintenance further erode property
1250	values. The Legislature finds that individuals and entities
1251	within Florida and in other states have expressed interest in
1252	purchasing unsold inventory in one or more condominium projects,
1253	but are reticent to do so because of accompanying liabilities
1254	inherited from the original developer, which are by definition
1255	imputed to the successor purchaser, including a foreclosing
1256	mortgagee. This results in the potential purchaser having
1257	unknown and unquantifiable risks, and potential successor
1258	purchasers are unwilling to accept such risks. The result is
1259	that condominium projects stagnate, leaving all parties involved
1260	at an impasse without the ability to find a solution.
1261	(3)  The Legislature finds and declares that it is the
1262	public policy of this state to protect the interests of
1263	developers, lenders, unit owners, and condominium associations
1264	with regard to distressed condominiums, and that there is a need
1265	for relief from certain provisions of the Florida Condominium
1266	Act geared toward enabling economic opportunities within these
1267	condominiums for successor purchasers, including foreclosing
1268	mortgagees. Such relief would benefit existing unit owners and
1269	condominium associations. The Legislature further finds and
1270	declares that this situation cannot be open-ended without
1271	potentially prejudicing the rights of unit owners and
1272	condominium associations, and thereby declares that the
1273	provisions of this part shall be used by purchasers of
1274	condominium inventory for a specific and defined period.
1275	718.703  Definitions.--As used in this part, the term:
1276	(1)  "Bulk assignee" means a person who:
1277	(a)  Acquires more than seven condominium parcels as set
1278	forth in s. 718.707; and
1279	(b)  Receives an assignment of some or all of the rights of
1280	the developer as are set forth in the declaration of condominium
1281	or in this chapter by a written instrument recorded as an
1282	exhibit to the deed or as a separate instrument in the public
1283	records of the county in which the condominium is located.
1284	(2)  "Bulk buyer" means a person who acquires more than
1285	seven condominium parcels as set forth in s. 718.707 but who
1286	does not receive an assignment of any developer rights other
1287	than the right to conduct sales, leasing, and marketing
1288	activities within the condominium.
1289	718.704  Assignment of developer rights to and assumption
1290	of developer rights by bulk assignee; bulk buyer.--
1291	(1)  A bulk assignee shall be deemed to have assumed and is
1292	liable for all duties and responsibilities of the developer
1293	under the declaration and this chapter, except:
1294	(a)  Warranties of the developer under s. 718.203(1) or s.
1295	718.618, except for design, construction, development, or repair
1296	work performed by or on behalf of such bulk assignee.
1297	(b)  The obligation to:
1298	1.  Fund converter reserves under s. 718.618 for a unit
1299	which was not acquired by the bulk assignee; or
1300	2.  Provide converter warranties on any portion of the
1301	condominium property except as may be expressly provided by the
1302	bulk assignee in the contract for purchase and sale executed
1303	with a purchaser and pertaining to any design, construction,
1304	development, or repair work performed by or on behalf of the
1305	bulk assignee.
1306	(c)  The requirement to provide the association with a
1307	cumulative audit of the association's finances from the date of
1308	formation of the condominium association as required by s.
1309	718.301. However, the bulk assignee shall provide an audit for
1310	the period for which the bulk assignee elects a majority of the
1311	members of the board of administration.
1312	(d)  Any liability arising out of or in connection with
1313	actions taken by the board of administration or the developer-
1314	appointed directors before the bulk assignee elects a majority
1315	of the members of the board of administration.
1316	(e)  Any liability for or arising out of the developer's
1317	failure to fund previous assessments or to resolve budgetary
1318	deficits in relation to a developer's right to guarantee
1319	assessments, except as otherwise provided in subsection (2).
1320
1321	Further, the bulk assignee is responsible for delivering
1322	documents and materials in accordance with s. 718.705(3). A bulk
1323	assignee may expressly assume some or all of the obligations of
1324	the developer described in paragraphs (a)-(e).
1325	(2)  A bulk assignee receiving the assignment of the rights
1326	of the developer to guarantee the level of assessments and fund
1327	budgetary deficits pursuant to s. 718.116 shall be deemed to
1328	have assumed and is liable for all obligations of the developer
1329	with respect to such guarantee, including any applicable funding
1330	of reserves to the extent required by law, for as long as the
1331	guarantee remains in effect. A bulk assignee not receiving an
1332	assignment of the right of the developer to guarantee the level
1333	of assessments and fund budgetary deficits pursuant to s.
1334	718.116 or a bulk buyer is not deemed to have assumed and is not
1335	liable for the obligations of the developer with respect to such
1336	guarantee, but is responsible for payment of assessments in the
1337	same manner as all other owners of condominium parcels.
1338	(3)  A bulk buyer is liable for the duties and
1339	responsibilities of the developer under the declaration and this
1340	chapter only to the extent provided in this part, together with
1341	any other duties or responsibilities of the developer expressly
1342	assumed in writing by the bulk buyer.
1343	(4)  An acquirer of condominium parcels is not considered a
1344	bulk assignee or a bulk buyer if the transfer to such acquirer
1345	was made with the intent to hinder, delay, or defraud any
1346	purchaser, unit owner, or the association, or if the acquirer is
1347	a person who would constitute an insider under s. 726.102(7).
1348	(5)  An assignment of developer rights to a bulk assignee
1349	may be made by the developer, a previous bulk assignee, or a
1350	court of competent jurisdiction acting on behalf of the
1351	developer or the previous bulk assignee. At any particular time,
1352	there may be no more than one bulk assignee within a
1353	condominium, but there may be more than one bulk buyer. If more
1354	than one acquirer of condominium parcels receives an assignment
1355	of developer rights from the same person, the bulk assignee is
1356	the acquirer whose instrument of assignment is recorded first in
1357	applicable public records.
1358	718.705  Board of administration; transfer of control.--
1359	(1)  For purposes of determining the timing for transfer of
1360	control of the board of administration of the association to
1361	unit owners other than the developer under s. 718.301(1)(a) or
1362	(b), if a bulk assignee is entitled to elect a majority of the
1363	members of the board, a condominium parcel acquired by the bulk
1364	assignee shall not be deemed to be conveyed to a purchaser, or
1365	to be owned by an owner other than the developer, until such
1366	condominium parcel is conveyed to an owner who is not a bulk
1367	assignee.
1368	(2)  Unless control of the board of administration of the
1369	association has already been relinquished pursuant to s.
1370	718.301(1), the bulk assignee is obligated to relinquish control
1371	of the association in accordance with s. 718.301 and this part.
1372	(3)  When a bulk assignee relinquishes control of the board
1373	of administration as set forth in s. 718.301, the bulk assignee
1374	shall deliver all of those items required by s. 718.301(4).
1375	However, the bulk assignee is not required to deliver items and
1376	documents not in the possession of the bulk assignee during the
1377	period during which the bulk assignee was the owner of
1378	condominium parcels. In conjunction with the acquisition of
1379	condominium parcels, a bulk assignee shall undertake a good
1380	faith effort to obtain the documents and materials required to
1381	be provided to the association pursuant to s. 718.301(4). To the
1382	extent the bulk assignee is not able to obtain all of such
1383	documents and materials, the bulk assignee shall certify in
1384	writing to the association the names or descriptions of the
1385	documents and materials that were not obtainable by the bulk
1386	assignee. Delivery of the certificate relieves the bulk assignee
1387	of responsibility for the delivery of the documents and
1388	materials referenced in the certificate as otherwise required
1389	under ss. 718.112 and 718.301 and this part. The responsibility
1390	of the bulk assignee for the audit required by s. 718.301(4)
1391	shall commence as of the date on which the bulk assignee elected
1392	a majority of the members of the board of administration.
1393	(4)  If a conflict arises between the provisions or
1394	application of this section and s. 718.301, this section shall
1395	prevail.
1396	(5)  Failure of a bulk assignee or bulk buyer to comply
1397	with all the requirements contained in this part shall result in
1398	the loss of any and all protections or exemptions provided under
1399	this part.
1400	718.706  Specific provisions pertaining to offering of
1401	units by a bulk assignee or bulk buyer.--
1402	(1)  Before offering any units for sale or for lease for a
1403	term exceeding 5 years, a bulk assignee or bulk buyer must file
1404	the following documents with the division and provide such
1405	documents to a prospective purchaser:
1406	(a)  An updated prospectus or offering circular, or a
1407	supplement to the prospectus or offering circular, filed by the
1408	creating developer prepared in accordance with s. 718.504, which
1409	shall include the form of contract for purchase and sale in
1410	compliance with s. 718.503(2).
1411	(b)  An updated Frequently Asked Questions and Answers
1412	sheet.
1413	(c)  The executed escrow agreement if required under s.
1414	718.202.
1415	(d)  The financial information required by s. 718.111(13).
1416	However, if a financial information report does not exist for
1417	the fiscal year before acquisition of title by the bulk assignee
1418	or bulk buyer, or accounting records cannot be obtained in good
1419	faith by the bulk assignee or bulk buyer which would permit
1420	preparation of the required financial information report, the
1421	bulk assignee or bulk buyer is excused from the requirement of
1422	this paragraph. However, the bulk assignee or bulk buyer must
1423	include in the purchase contract the following statement in
1424	conspicuous type:
1425
1426	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1427	SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1428	IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1429	IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1430	A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1431	ASSOCIATION.
1432
1433	(2)  Before offering any units for sale or for lease for a
1434	term exceeding 5 years, a bulk assignee must file with the
1435	division and provide to a prospective purchaser a disclosure
1436	statement that must include, but is not limited to:
1437	(a)  A description to the purchaser of any rights of the
1438	developer which have been assigned to the bulk assignee.
1439	(b)  The following statement in conspicuous type:
1440
1441	SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1442	DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1443	FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1444	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1445	OR ON BEHALF OF SELLER.
1446
1447	(c)  If the condominium is a conversion subject to part VI,
1448	the following statement in conspicuous type:
1449
1450	SELLER HAS NO OBLIGATION TO FUND CONVERTER RESERVES OR
1451	TO PROVIDE CONVERTER WARRANTIES UNDER SECTION 718.618,
1452	FLORIDA STATUTES, ON ANY PORTION OF THE CONDOMINIUM
1453	PROPERTY EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE
1454	SELLER IN THE CONTRACT FOR PURCHASE AND SALE EXECUTED
1455	BY THE SELLER AND THE PREVIOUS DEVELOPER AND
1456	PERTAINING TO ANY DESIGN, CONSTRUCTION, DEVELOPMENT,
1457	OR REPAIR WORK PERFORMED BY OR ON BEHALF OF THE
1458	SELLER.
1459
1460	(3)  In addition to the requirements set forth in
1461	subsection (1), a bulk assignee or bulk buyer must comply with
1462	the nondeveloper disclosure requirements set forth in s.
1463	718.503(2) before offering any units for sale or for lease for a
1464	term exceeding 5 years.
1465	(4)  A bulk assignee, while in control of the board of
1466	administration of the association, may not authorize, on behalf
1467	of the association:
1468	(a)  The waiver of reserves or the reduction of funding of
1469	the reserves in accordance with s. 718.112(2)(f)2., unless
1470	approved by a majority of the voting interests not controlled by
1471	the developer, bulk assignee, or bulk buyer; or
1472	(b)  The use of reserve expenditures for other purposes in
1473	accordance with s. 718.112(2)(f)3., unless approved by a
1474	majority of the voting interests not controlled by the
1475	developer, bulk assignee, or bulk buyer.
1476	(5)  A bulk assignee, while in control of the board of
1477	administration of the association, must comply with the
1478	requirements imposed upon developers to transfer control of the
1479	association to the unit owners in accordance with s. 718.301.
1480	(6)  A bulk assignee or bulk buyer must comply with all the
1481	requirements of s. 718.302 regarding any contracts entered into
1482	by the association during the period the bulk assignee or bulk
1483	buyer maintains control of the board of administration. Unit
1484	owners shall be afforded all the protections contained in s.
1485	718.302 regarding agreements entered into by the association
1486	before unit owners other than the developer, bulk assignee, or
1487	bulk buyer elected a majority of the board of administration.
1488	(7)  A bulk buyer must comply with the requirements
1489	contained in the declaration regarding any transfer of a unit,
1490	including sales, leases, and subleases. A bulk buyer is not
1491	entitled to any exemptions afforded a developer or successor
1492	developer under this chapter regarding any transfer of a unit,
1493	including sales, leases, or subleases.
1494	718.707  Time limitation for classification as bulk
1495	assignee or bulk buyer.--A person acquiring condominium parcels
1496	may not be classified as a bulk assignee or bulk buyer unless
1497	the condominium parcels were acquired before July 1, 2012. The
1498	date of such acquisition shall be determined by the date of
1499	recording of a deed or other instrument of conveyance for such
1500	parcels in the public records of the county in which the
1501	condominium is located or by the date of issuance of a
1502	certificate of title in a foreclosure proceeding with respect to
1503	such condominium parcels.
1504	718.708  Liability of developers and others.--An assignment
1505	of developer rights to a bulk assignee or bulk buyer does not
1506	release the developer from any liabilities under the declaration
1507	or this chapter. This part does not limit the liability of the
1508	developer for claims brought by unit owners, bulk assignees, or
1509	bulk buyers for violations of this chapter by the developer,
1510	unless specifically excluded in this part. Nothing contained
1511	within this part waives, releases, compromises, or limits the
1512	liability of contractors, subcontractors, materialmen,
1513	manufacturers, architects, engineers, or any participant in the
1514	design or construction of a condominium for any claim brought by
1515	an association, unit owners, bulk assignees, or bulk buyers
1516	arising from the design of the condominium, construction
1517	defects, misrepresentations associated with condominium
1518	property, or violations of this chapter, unless specifically
1519	excluded in this part.
1520	Section 14.  Subsection (2) of section 720.302, Florida
1521	Statutes, is amended to read:
1522	720.302  Purposes, scope, and application.--
1523	(2)  The Legislature recognizes that it is not in the best
1524	interest of homeowners' associations or the individual
1525	association members thereof to create or impose a bureau or
1526	other agency of state government to regulate the affairs of
1527	homeowners' associations. However, in accordance with part IV of
1528	this chapter s. 720.311, the Legislature finds that homeowners'
1529	associations and their individual members will benefit from an
1530	expedited alternative process for resolution of election and
1531	recall disputes and presuit mediation of other disputes
1532	involving covenant enforcement in homeowners' associations and
1533	deed-restricted communities using the procedures provided in
1534	part IV of and authorizes the department to hear, administer,
1535	and determine these disputes as more fully set forth in this
1536	chapter. Further, the Legislature recognizes that certain
1537	contract rights have been created for the benefit of homeowners'
1538	associations and members thereof as well as deed-restricted
1539	communities before the effective date of this act and that part
1540	IV of this chapter is ss. 720.301-720.407 are not intended to
1541	impair such contract rights, including, but not limited to, the
1542	rights of the developer to complete the community as initially
1543	contemplated.
1544	Section 15.  Paragraph (b) of subsection (2), paragraphs
1545	(a) and (c) of subsection (5), paragraphs (b), (c), (d), (f),
1546	and (g) of subsection (6), and paragraphs (c) and (d) of
1547	subsection (10) of section 720.303, Florida Statutes, are
1548	amended, and subsections (12), (13), and (14) are added to that
1549	section, to read:
1550	720.303  Association powers and duties; meetings of board;
1551	official records; budgets; financial reporting; association
1552	funds; recalls; prohibited compensation; borrowing; transfer
1553	fees.--
1554	(2)  BOARD MEETINGS.--
1555	(b)  Members have the right to attend all meetings of the
1556	board and to speak on any matter placed on the agenda by
1557	petition of the voting interests for at least 3 minutes. The
1558	association may adopt written reasonable rules expanding the
1559	right of members to speak and governing the frequency, duration,
1560	and other manner of member statements, which rules must be
1561	consistent with this paragraph and may include a sign-up sheet
1562	for members wishing to speak. Notwithstanding any other law, the
1563	requirement that board meetings and committee meetings be open
1564	to the members is inapplicable to meetings between the board or
1565	a committee and the association's attorney to discuss proposed
1566	or pending litigation, or with respect to meetings of the board
1567	held for the purpose of discussing personnel matters are not
1568	required to be open to the members.
1569	(5)  INSPECTION AND COPYING OF RECORDS.--The official
1570	records shall be maintained within the state and must be open to
1571	inspection and available for photocopying by members or their
1572	authorized agents at reasonable times and places within 10
1573	business days after receipt of a written request for access.
1574	This subsection may be complied with by having a copy of the
1575	official records available for inspection or copying in the
1576	community. If the association has a photocopy machine available
1577	where the records are maintained, it must provide parcel owners
1578	with copies on request during the inspection if the entire
1579	request is limited to no more than 25 pages.
1580	(a)  The failure of an association to provide access to the
1581	records within 10 business days after receipt of a written
1582	request submitted by certified mail, return receipt requested,
1583	creates a rebuttable presumption that the association willfully
1584	failed to comply with this subsection.
1585	(c)  The association may adopt reasonable written rules
1586	governing the frequency, time, location, notice, records to be
1587	inspected, and manner of inspections, but may not require impose
1588	a requirement that a parcel owner to demonstrate any proper
1589	purpose for the inspection, state any reason for the inspection,
1590	or limit a parcel owner's right to inspect records to less than
1591	one 8-hour business day per month. The association may impose
1592	fees to cover the costs of providing copies of the official
1593	records, including, without limitation, the costs of copying.
1594	The association may charge up to 50 cents per page for copies
1595	made on the association's photocopier. If the association does
1596	not have a photocopy machine available where the records are
1597	kept, or if the records requested to be copied exceed 25 pages
1598	in length, the association may have copies made by an outside
1599	vendor or association management company personnel and may
1600	charge the actual cost of copying, including any reasonable
1601	costs involving personnel fees and charges at an hourly rate for
1602	employee time to cover administrative costs to the association.
1603	The association shall maintain an adequate number of copies of
1604	the recorded governing documents, to ensure their availability
1605	to members and prospective members. Notwithstanding the
1606	provisions of this paragraph, the following records are shall
1607	not be accessible to members or parcel owners:
1608	1.  Any record protected by the lawyer-client privilege as
1609	described in s. 90.502 and any record protected by the work-
1610	product privilege, including, but not limited to, any record
1611	prepared by an association attorney or prepared at the
1612	attorney's express direction which reflects a mental impression,
1613	conclusion, litigation strategy, or legal theory of the attorney
1614	or the association and which was prepared exclusively for civil
1615	or criminal litigation or for adversarial administrative
1616	proceedings or which was prepared in anticipation of imminent
1617	civil or criminal litigation or imminent adversarial
1618	administrative proceedings until the conclusion of the
1619	litigation or adversarial administrative proceedings.
1620	2.  Information obtained by an association in connection
1621	with the approval of the lease, sale, or other transfer of a
1622	parcel.
1623	3.  Disciplinary, health, insurance, and personnel records
1624	of the association's employees.
1625	4.  Medical records of parcel owners or community
1626	residents.
1627	(6)  BUDGETS.--
1628	(b)  In addition to annual operating expenses, the budget
1629	may include reserve accounts for capital expenditures and
1630	deferred maintenance for which the association is responsible.
1631	If reserve accounts are not established pursuant to paragraph
1632	(d), funding of such reserves shall be limited to the extent
1633	that the governing documents do not limit increases in
1634	assessments, including reserves. If the budget of the
1635	association includes reserve accounts established pursuant to
1636	paragraph (d), such reserves shall be determined, maintained,
1637	and waived in the manner provided in this subsection. Once an
1638	association provides for reserve accounts pursuant to paragraph
1639	(d) in the budget, the association shall thereafter determine,
1640	maintain, and waive reserves in compliance with this subsection.
1641	This section does not preclude the termination of a reserve
1642	account established pursuant to this paragraph upon approval of
1643	a majority of the voting interests of the association. Upon such
1644	approval, the terminating reserve account shall be removed from
1645	the budget.
1646	(c)1.  If the budget of the association does not provide
1647	for reserve accounts pursuant to paragraph (d) governed by this
1648	subsection and the association is responsible for the repair and
1649	maintenance of capital improvements that may result in a special
1650	assessment if reserves are not provided, each financial report
1651	for the preceding fiscal year required under by subsection (7)
1652	shall contain the following statement in conspicuous type:
1653
1654	THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
1655	RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
1656	MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
1657	OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
1658	PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
1659	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
1660	LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
1661	THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
1662	BY WRITTEN CONSENT.
1663
1664	2.  If the budget of the association does provide for
1665	funding accounts for deferred expenditures, including, but not
1666	limited to, funds for capital expenditures and deferred
1667	maintenance, but such accounts are not created or established
1668	pursuant to paragraph (d), each financial report for the
1669	preceding fiscal year required under subsection (7) must also
1670	contain the following statement in conspicuous type:
1671
1672	THE BUDGET OF THE ASSOCIATION DOES PROVIDE FOR LIMITED
1673	VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
1674	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
1675	TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
1676	DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
1677	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
1678	720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
1679	SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
1680	FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
1681	ACCORDANCE WITH THAT STATUTE.
1682
1683	(d)  An association shall be deemed to have provided for
1684	reserve accounts if when reserve accounts have been initially
1685	established by the developer or if when the membership of the
1686	association affirmatively elects to provide for reserves. If
1687	reserve accounts are not initially provided for by the
1688	developer, the membership of the association may elect to do so
1689	upon the affirmative approval of not less than a majority of the
1690	total voting interests of the association. Such approval may be
1691	obtained attained by vote of the members at a duly called
1692	meeting of the membership or by the upon a written consent of
1693	executed by not less than a majority of the total voting
1694	interests in the community. The approval action of the
1695	membership shall state that reserve accounts shall be provided
1696	for in the budget and shall designate the components for which
1697	the reserve accounts are to be established. Upon approval by the
1698	membership, the board of directors shall include provide for the
1699	required reserve accounts for inclusion in the budget in the
1700	next fiscal year following the approval and in each year
1701	thereafter. Once established as provided in this subsection, the
1702	reserve accounts shall be funded or maintained or shall have
1703	their funding waived in the manner provided in paragraph (f).
1704	(f)  After one or more Once a reserve account or reserve
1705	accounts are established, the membership of the association,
1706	upon a majority vote at a meeting at which a quorum is present,
1707	may provide for no reserves or less reserves than required by
1708	this section. If a meeting of the unit owners has been called to
1709	determine whether to waive or reduce the funding of reserves and
1710	no such result is achieved or a quorum is not present, the
1711	reserves as included in the budget shall go into effect. After
1712	the turnover, the developer may vote its voting interest to
1713	waive or reduce the funding of reserves. Any vote taken pursuant
1714	to this subsection to waive or reduce reserves is shall be
1715	applicable only to one budget year.
1716	(g)  Funding formulas for reserves authorized by this
1717	section shall be based on either a separate analysis of each of
1718	the required assets or a pooled analysis of two or more of the
1719	required assets.
1720	1.  If the association maintains separate reserve accounts
1721	for each of the required assets, the amount of the contribution
1722	to each reserve account is shall be the sum of the following two
1723	calculations:
1724	a.  The total amount necessary, if any, to bring a negative
1725	component balance to zero.
1726	b.  The total estimated deferred maintenance expense or
1727	estimated replacement cost of the reserve component less the
1728	estimated balance of the reserve component as of the beginning
1729	of the period for which the budget will be in effect. The
1730	remainder, if greater than zero, shall be divided by the
1731	estimated remaining useful life of the component.
1732
1733	The formula may be adjusted each year for changes in estimates
1734	and deferred maintenance performed during the year and may
1735	include factors such as inflation and earnings on invested
1736	funds.
1737	2.  If the association maintains a pooled account of two or
1738	more of the required reserve assets, the amount of the
1739	contribution to the pooled reserve account as disclosed on the
1740	proposed budget may shall not be less than that required to
1741	ensure that the balance on hand at the beginning of the period
1742	for which the budget will go into effect plus the projected
1743	annual cash inflows over the remaining estimated useful life of
1744	all of the assets that make up the reserve pool are equal to or
1745	greater than the projected annual cash outflows over the
1746	remaining estimated useful lives of all of the assets that make
1747	up the reserve pool, based on the current reserve analysis. The
1748	projected annual cash inflows may include estimated earnings
1749	from investment of principal and accounts receivable minus the
1750	allowance for doubtful accounts. The reserve funding formula may
1751	shall not include any type of balloon payments.
1752	(10)  RECALL OF DIRECTORS.--
1753	(c)1.  If the declaration, articles of incorporation, or
1754	bylaws specifically provide, the members may also recall and
1755	remove a board director or directors by a vote taken at a
1756	meeting. If so provided in the governing documents, a special
1757	meeting of the members to recall a director or directors of the
1758	board of administration may be called by 10 percent of the
1759	voting interests giving notice of the meeting as required for a
1760	meeting of members, and the notice shall state the purpose of
1761	the meeting. Electronic transmission may not be used as a method
1762	of giving notice of a meeting called in whole or in part for
1763	this purpose.
1764	2.  The board shall duly notice and hold a board meeting
1765	within 5 full business days after the adjournment of the member
1766	meeting to recall one or more directors. At the meeting, the
1767	board shall certify the recall, in which case such member or
1768	members shall be recalled effective immediately and shall turn
1769	over to the board within 5 full business days any and all
1770	records and property of the association in their possession, or
1771	shall proceed as set forth in paragraph subparagraph (d).
1772	(d)  If the board determines not to certify the written
1773	agreement or written ballots to recall a director or directors
1774	of the board or does not certify the recall by a vote at a
1775	meeting, the board shall, within 5 full business days after the
1776	meeting, initiate file with the department a petition for
1777	binding arbitration pursuant to the applicable procedures in s.
1778	720.507 ss. 718.112(2)(j) and 718.1255 and the rules adopted
1779	thereunder. For the purposes of this section, the members who
1780	voted at the meeting or who executed the agreement in writing
1781	shall constitute one party under the petition for arbitration.
1782	If the arbitrator certifies the recall as to any director or
1783	directors of the board, the recall will be effective upon
1784	mailing of the final order of arbitration to the association.
1785	The director or directors so recalled shall deliver to the board
1786	any and all records of the association in their possession
1787	within 5 full business days after the effective date of the
1788	recall.
1789	(12)  COMPENSATION PROHIBITED.--A director, officer, or
1790	committee member of the association may not receive, directly or
1791	indirectly, any salary or compensation from the association for
1792	the performance of duties as a director, officer, or committee
1793	member and may not in any other way benefit financially from
1794	service to the association. This subsection does not preclude:
1795	(a)  Participation by such person in a financial benefit
1796	accruing to all or a significant number of members as a result
1797	of actions lawfully taken by the board or a committee of which
1798	he or she is a member, including, but not limited to, routine
1799	maintenance, repair, or replacement of community assets.
1800	(b)  Reimbursement for out-of-pocket expenses incurred by
1801	such person on behalf of the association, subject to approval in
1802	accordance with procedures established by the association's
1803	governing documents or, in the absence of such procedures, in
1804	accordance with an approval process established by the board.
1805	(c)  Any recovery of insurance proceeds derived from a
1806	policy of insurance maintained by the association for the
1807	benefit of its members.
1808	(d)  Any fee or compensation authorized in the governing
1809	documents.
1810	(e)  Any fee or compensation authorized in advance by a
1811	vote of a majority of the voting interests voting in person or
1812	by proxy at a meeting of the members.
1813	(f)  A developer or its representative from serving as a
1814	director, officer, or committee member of the association and
1815	benefiting financially from service to the association.
1816	(13)  BORROWING.--The borrowing of funds or committing to a
1817	line of credit by the board of administration shall be
1818	considered a special assessment, and any meeting of the board of
1819	administration to discuss such matters must be noticed as
1820	provided in paragraph (2)(c). The board may not borrow funds or
1821	enter into a line of credit for any purpose unless the specific
1822	use of the funds from the loan or line of credit is set forth in
1823	the notice of meeting with the same specificity as required for
1824	a special assessment or unless the borrowing or line of credit
1825	has received the prior approval of at least two-thirds of the
1826	voting interests of the association.
1827	(14)  TRANSFER FEES.--No charge may be made by the
1828	association or anyone on its behalf in connection with the sale,
1829	mortgage, lease, sublease, or other transfer of a parcel.
1830	Nothing in this subsection may be construed to prohibit an
1831	association from requiring as a condition to permitting the
1832	letting or renting of a parcel, when the association has such
1833	authority in the documents, the depositing into an escrow
1834	account maintained by the association of a security deposit in
1835	an amount not to exceed the equivalent of 1 month's rent. The
1836	security deposit shall protect against damages to the common
1837	areas or association property. Within 15 days after a tenant
1838	vacates the premises, the association shall refund the full
1839	security deposit or give written notice to the tenant of any
1840	claim made against the security. Disputes under this subsection
1841	shall be handled in the same fashion as disputes concerning
1842	security deposits under s. 83.49.
1843	Section 16.  Paragraph (a) of subsection (2) of section
1844	720.304, Florida Statutes, is amended to read:
1845	720.304  Right of owners to peaceably assemble; display of
1846	flag; SLAPP suits prohibited.--
1847	(2)(a)  Any homeowner may display within the boundaries of
1848	the homeowner's parcel one portable, removable United States
1849	flag or official flag of the State of Florida in a respectful
1850	manner, and one portable, removable official flag, in a
1851	respectful way and, on Armed Forces Day, Memorial Day, Flag Day,
1852	Independence Day, and Veterans' Day, may display in a respectful
1853	way portable, removable official flags manner, not larger than 4
1854	1/2 feet by 6 feet, that represent which represents the United
1855	States Army, Navy, Air Force, Marine Corps, or Coast Guard, or a
1856	POW-MIA flag, regardless of any declaration covenants,
1857	restrictions, bylaws, rules, or requirements dealing with flags
1858	or decorations of the association.
1859	Section 17.  Subsection (2) of section 720.305, Florida
1860	Statutes, is amended to read:
1861	720.305  Obligations of members; remedies at law or in
1862	equity; levy of fines and suspension of use rights.--
1863	(2)  If the governing documents so provide, an association
1864	may suspend, for a reasonable period of time, the rights of a
1865	member or a member's tenants, guests, or invitees, or both, to
1866	use common areas and facilities and may levy reasonable fines of
1867	up to, not to exceed $100 per violation, against any member or
1868	any tenant, guest, or invitee. A fine may be levied on the basis
1869	of each day of a continuing violation, with a single notice and
1870	opportunity for hearing, except that no such fine may shall
1871	exceed $1,000 in the aggregate unless otherwise provided in the
1872	governing documents. A fine of less than $1,000 may shall not
1873	become a lien against a parcel. In any action to recover a fine,
1874	the prevailing party is entitled to collect its reasonable
1875	attorney's fees and costs from the nonprevailing party as
1876	determined by the court.
1877	(a)  A fine or suspension may not be imposed without notice
1878	of at least 14 days' notice days to the person sought to be
1879	fined or suspended and an opportunity for a hearing before a
1880	committee of at least three members appointed by the board who
1881	are not officers, directors, or employees of the association, or
1882	the spouse, parent, child, brother, or sister of an officer,
1883	director, or employee. If the committee, by majority vote, does
1884	not approve a proposed fine or suspension, it may not be
1885	imposed.
1886	(b)  The requirements of this subsection do not apply to
1887	the imposition of suspensions or fines upon any member because
1888	of the failure of the member to pay assessments or other charges
1889	when due if such action is authorized by the governing
1890	documents.
1891	(c)  Suspension of common-area-use rights do shall not
1892	impair the right of an owner or tenant of a parcel to have
1893	vehicular and pedestrian ingress to and egress from the parcel,
1894	including, but not limited to, the right to park.
1895	Section 18.  Subsections (8) and (9) of section 720.306,
1896	Florida Statutes, are amended to read:
1897	720.306  Meetings of members; voting and election
1898	procedures; amendments.--
1899	(8)  PROXY VOTING.--The members have the right, unless
1900	otherwise provided in this subsection or in the governing
1901	documents, to vote in person or by proxy.
1902	(a)  To be valid, a proxy must be dated, must state the
1903	date, time, and place of the meeting for which it was given, and
1904	must be signed by the authorized person who executed the proxy.
1905	A proxy is effective only for the specific meeting for which it
1906	was originally given, as the meeting may lawfully be adjourned
1907	and reconvened from time to time, and automatically expires 90
1908	days after the date of the meeting for which it was originally
1909	given. A proxy is revocable at any time at the pleasure of the
1910	person who executes it. If the proxy form expressly so provides,
1911	any proxy holder may appoint, in writing, a substitute to act in
1912	his or her place.
1913	(b)  If the governing documents permit voting by secret
1914	ballot by members who are not in attendance at a meeting of the
1915	members for the election of directors, such ballots shall be
1916	placed in an inner envelope with no identifying markings and
1917	mailed or delivered to the association in an outer envelope
1918	bearing identifying information reflecting the name of the
1919	member, the lot or parcel for which the vote is being cast, and
1920	the signature of the lot or parcel owner casting that ballot.
1921	After the eligibility of the member to vote and confirmation
1922	that no other ballot has been submitted for that lot or parcel,
1923	the inner envelope shall be removed from the outer envelope
1924	bearing the identification information, placed with the ballots
1925	which were personally cast, and opened when the ballots are
1926	counted. If more than one ballot is submitted for a lot or
1927	parcel, the ballots for that lot or parcel shall be
1928	disqualified. Any vote by ballot received after the closing of
1929	the balloting may not be considered.
1930	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
1931	(a)  Elections of directors must be conducted in accordance
1932	with the procedures set forth in the governing documents of the
1933	association. All members of the association are shall be
1934	eligible to serve on the board of directors, and a member may
1935	nominate himself or herself as a candidate for the board at a
1936	meeting where the election is to be held or, if the election
1937	process allows voting by absentee ballot, in advance of the
1938	balloting. Except as otherwise provided in the governing
1939	documents, boards of directors must be elected by a plurality of
1940	the votes cast by eligible voters. Any election dispute between
1941	a member and an association must be submitted to mandatory
1942	binding arbitration with the division. Such proceedings shall be
1943	conducted in the manner provided by s. 720.507 718.1255 and the
1944	procedural rules adopted by the division.
1945	(b)  Within 30 days after being elected to the board of
1946	directors, a new director shall certify in writing to the
1947	secretary of the association that he or she has read the
1948	association's declarations of covenants and restrictions,
1949	articles of incorporation, bylaws, and current written policies
1950	and that he or she will work to uphold each to the best of his
1951	or her ability and will faithfully discharge his or her
1952	fiduciary responsibility to the association's members. Failure
1953	to timely file such statement shall automatically disqualify the
1954	director from service on the association's board of directors.
1955	The secretary shall cause the association to retain a director's
1956	certification for inspection by the members for 5 years after a
1957	director's election. Failure to have such certification on file
1958	does not affect the validity of any appropriate action.
1959	Section 19.  Section (8) is added to section 720.3085,
1960	Florida Statutes, to read:
1961	720.3085  Payment for assessments; lien claims.--
1962	(8)  During the pendency of any foreclosure action of a
1963	parcel within a homeowners' association, if the home is occupied
1964	by a tenant and the parcel owner is delinquent in the payment of
1965	regular assessments, the association may demand that the tenant
1966	pay to the association the future regular assessments related to
1967	the parcel. The demand shall be continuing in nature, and upon
1968	demand the tenant shall continue to pay the regular assessments
1969	to the association until the association releases the tenant or
1970	the tenant discontinues tenancy in the unit. The association
1971	shall mail written notice to the parcel owner of the
1972	association's demand that the tenant pay regular assessments to
1973	the association. The tenant shall not be liable for increases in
1974	the amount of the regular assessment due unless the tenant was
1975	reasonably notified of the increase prior to the day that the
1976	rent is due. The tenant shall be given a credit against rents
1977	due to the parcel owner in the amount of assessments paid to the
1978	association. The association shall, upon request, provide the
1979	tenant with written receipts for payments made. The association
1980	may issue notices under s. 83.56 and may sue for eviction under
1981	ss. 83.59-83.625 as if the association were a landlord under
1982	part II of chapter 83 should the tenant fail to pay an
1983	assessment. However, the association shall not otherwise be
1984	considered a landlord under chapter 83 and shall specifically
1985	not have any duty under s. 83.51. The tenant shall not, by
1986	virtue of payment of assessments, have any of the rights of a
1987	unit owner to vote in any election or to examine the books and
1988	records of the association. A court may supersede the effect of
1989	this subsection by appointing a receiver.
1990	Section 20.  Section 720.3095, Florida Statutes, is created
1991	to read:
1992	720.3095  Management and maintenance agreements entered
1993	into by the association.--
1994	(1)  A written contract between a party contracting to
1995	provide maintenance or management services and an association
1996	which provides for operation, maintenance, or management of a
1997	homeowners' association is not valid or enforceable unless the
1998	contract:
1999	(a)  Specifies the services, obligations, and
2000	responsibilities of the party contracting to provide maintenance
2001	or management services to the unit owners.
2002	(b)  Specifies those costs incurred in the performance of
2003	those services, obligations, or responsibilities which are to be
2004	reimbursed by the association to the party contracting to
2005	provide maintenance or management services.
2006	(c)  Provides an indication of how often each service,
2007	obligation, or responsibility is to be performed, whether stated
2008	for each service, obligation, or responsibility or in categories
2009	thereof.
2010	(d)  Specifies a minimum number of personnel to be employed
2011	by the party contracting to provide maintenance or management
2012	services for the purpose of providing service to the
2013	association.
2014	(e)  Discloses any financial or ownership interest which
2015	the developer, if the developer is in control of the
2016	association, holds with regard to the party contracting to
2017	provide maintenance or management services.
2018	(f)  Discloses any financial or ownership interest a board
2019	member or any party providing maintenance or management services
2020	to the association holds with the contracting party.
2021	(2)  In any case in which the party contracting to provide
2022	maintenance or management services fails to provide such
2023	services in accordance with the contract, the association is
2024	authorized to procure such services from some other party and
2025	shall be entitled to collect any fees or charges paid for
2026	services performed by another party from the party contracting
2027	to provide maintenance or management services.
2028	(3)  Any services or obligations not stated on the face of
2029	the contract shall be unenforceable.
2030	(4)  Notwithstanding the fact that certain vendors contract
2031	with associations to maintain equipment or property which is
2032	made available to serve unit owners, it is the intent of the
2033	Legislature that this section applies to contracts for
2034	maintenance or management services for which the association
2035	pays compensation. This section does not apply to contracts for
2036	services or property made available for the convenience of unit
2037	owners by lessees or licensees of the association, such as coin-
2038	operated laundry, food, soft drink, or telephone vendors; cable
2039	television operators; retail store operators; businesses;
2040	restaurants; or similar vendors.
2041	Section 21.  Section 720.3096, Florida Statutes, is created
2042	to read:
2043	720.3096  Limitation on agreements entered into by the
2044	association.--As to any contract or other transaction between an
2045	association and one or more of its directors or any other
2046	corporation, firm, association, or entity in which one or more
2047	of its directors are directors or officers or are financially
2048	interested:
2049	(1)  The association must comply with the requirements of
2050	s. 617.0832.
2051	(2)  The disclosures required by s. 617.0832 must be
2052	entered into the written minutes of the meeting.
2053	(3)  Approval of the contract or other transaction requires
2054	an affirmative vote of at least two-thirds of the directors
2055	present.
2056	(4)  At the next regular or special meeting of the members,
2057	the existence of the contract or other transaction must be
2058	disclosed to the members. Upon motion of any member, the
2059	contract or transaction shall be brought up for a vote and may
2060	be canceled by a majority vote of the members present. If the
2061	members cancel the contract, the association is liable for only
2062	the reasonable value of goods and services provided up to the
2063	time of cancellation and is not liable for any termination fee,
2064	liquidated damages, or other form of penalty for such
2065	cancellation.
2066	Section 22.  Section 720.311, Florida Statutes, is
2067	repealed.
2068	Section 23.  Paragraph (a) of subsection (1) of section
2069	720.401, Florida Statutes, is amended to read:
2070	720.401  Prospective purchasers subject to association
2071	membership requirement; disclosure required; covenants;
2072	assessments; contract cancellation.--
2073	(1)(a)  A prospective parcel owner in a community must be
2074	presented a disclosure summary before executing the contract for
2075	sale. The disclosure summary must be in a form substantially
2076	similar to the following form:
2077
2078	DISCLOSURE SUMMARY
2079	FOR
2080	(NAME OF COMMUNITY)
2081
2082	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
2083	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
2084	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
2085	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
2086	COMMUNITY.
2087	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
2088	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
2089	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
2090	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
2091	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
2092	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
2093	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
2094	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
2095	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
2096	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
2097	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
2098	IN A LIEN ON YOUR PROPERTY.
2099	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
2100	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
2101	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
2102	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
2103	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
2104	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
2105	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
2106	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
2107	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
2108	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
2109	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
2110	DOCUMENTS BEFORE PURCHASING PROPERTY.
2111	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
2112	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
2113	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
2114	OBTAINED FROM THE DEVELOPER.
2115	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
2116	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
2117	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
2118	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
2119	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
2120	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
2121	UP TO THE TIME OF TRANSFER OF TITLE.
2122
2123	DATE:     PURCHASER:
2124	PURCHASER:
2125
2126	The disclosure must be supplied by the developer, or by the
2127	parcel owner if the sale is by an owner that is not the
2128	developer. Any contract or agreement for sale shall refer to and
2129	incorporate the disclosure summary and shall include, in
2130	prominent language, a statement that the potential buyer should
2131	not execute the contract or agreement until he or she has they
2132	have received and read the disclosure summary required by this
2133	section.
2134	Section 24.  Part IV of chapter 720, Florida Statutes,
2135	consisting of sections 720.501, 720.502, 720.503, 720.504,
2136	720.505, 720.506, 720.507, 720.508, 720.509, and 720.510, is
2137	created to read:
2138	PART IV
2139	DISPUTE RESOLUTION
2140	720.501  Short title.--This part may be cited as the "Home
2141	Court Advantage Dispute Resolution Act."
2142	720.502  Legislative findings.--The Legislature finds that
2143	alternative dispute resolution has made progress in reducing
2144	court dockets and trials and in offering a more efficient, cost-
2145	effective option to litigation.
2146	720.503  Applicability of this part.--
2147	(1)  Unless otherwise provided in this part, before a
2148	dispute described in this part between a homeowners' association
2149	and a parcel owner or owners, or a dispute between parcel owners
2150	within the same homeowners' association, may be filed in court,
2151	the dispute is subject to presuit mediation pursuant to s.
2152	720.505 or presuit arbitration pursuant to s. 720.507, at the
2153	option of the aggrieved party who initiates the first formal
2154	action of alternative dispute resolution under this part. The
2155	parties may mutually agree to participate in both presuit
2156	mediation and presuit arbitration prior to suit being filed by
2157	either party.
2158	(2)  Unless otherwise provided in this part, the mediation
2159	and arbitration provisions of this part are limited to disputes
2160	between an association and a parcel owner or owners or between
2161	parcel owners regarding the use of or changes to the parcel or
2162	the common areas under the governing documents and other
2163	disputes involving violations of the recorded declaration of
2164	covenants or other governing documents, disputes arising
2165	concerning enforcement of the governing documents or any
2166	amendments thereto, and disputes involving access to the
2167	official records of the association. A dispute concerning title
2168	to any parcel or common area, interpretation or enforcement of
2169	any warranty, the levy of a fee or assessment, the collection of
2170	an assessment levied against a party, the eviction or other
2171	removal of a tenant from a parcel, alleged breaches of fiduciary
2172	duty by one or more directors, or any action to collect mortgage
2173	indebtedness or to foreclosure a mortgage shall not be subject
2174	to the provisions of this part.
2175	(3)  A dispute arising after the effective date of this
2176	part involving the election of the board of directors for an
2177	association or the recall of any member of the board or officer
2178	of the association is ineligible for presuit mediation under s.
2179	720.505 and subject to presuit arbitration under s. 720.507.
2180	(4)  In any dispute subject to presuit mediation or presuit
2181	arbitration under this part for which emergency relief is
2182	required, a motion for temporary injunctive relief may be filed
2183	with the court without first complying with the presuit
2184	mediation or presuit arbitration requirements of this part.
2185	After any issues regarding emergency or temporary relief are
2186	resolved, the court may refer the parties to a mediation program
2187	administered by the courts or require mediation or arbitration
2188	under this part.
2189	(5)  The mailing of a statutory notice of presuit mediation
2190	or presuit arbitration as provided in this part shall toll the
2191	applicable statute of limitations during the pendency of the
2192	mediation or arbitration and for a period of 30 days following
2193	the conclusion of either proceeding. The 30-day period shall
2194	start upon the filing of the mediator's notice of impasse or the
2195	arbitrator's written arbitration award. If the parties mutually
2196	agree to participate in both presuit mediation and presuit
2197	arbitration under this part, the tolling of the applicable
2198	statute of limitations for each such alternative dispute
2199	resolution proceeding shall be consecutive.
2200	720.504  Notice of dispute.--Prior to giving the statutory
2201	notice to proceed under presuit mediation or presuit arbitration
2202	under this part, the aggrieved association or parcel owner must
2203	first provide written notice of the dispute to the responding
2204	party in the manner provided by this section.
2205	(1)  The notice of dispute shall be delivered to the
2206	responding party by certified mail, return receipt requested, or
2207	in person, and the person making delivery shall file with the
2208	notice of mediation either the proof of receipt of mailing or an
2209	affidavit stating the date and time of the delivery of the
2210	notice of dispute. If the notice is delivered by certified mail,
2211	return receipt requested, and the responding party fails or
2212	refuses to accept delivery, notice shall be considered properly
2213	delivered for purposes of this section on the date of the first
2214	attempted delivery.
2215	(2)  The notice of dispute shall state with specificity the
2216	nature of the dispute, including the date, time, and location of
2217	each event that is the subject of the dispute and the action
2218	requested to resolve the dispute. The notice shall also include
2219	the text of any provision in the governing documents, including
2220	the rules and regulations, of the association which form the
2221	basis of the dispute.
2222	(3)  Unless the parties otherwise agree in writing to a
2223	longer time period, the party receiving the notice of dispute
2224	shall have 10 days following the date of receipt of notice to
2225	resolve the dispute. If the alleged dispute has not been
2226	resolved within the 10-day period, the aggrieved party may
2227	proceed under this part at any time thereafter within the
2228	applicable statute of limitations.
2229	(4)  A copy of the notice and the text of the provision in
2230	the governing documents, or the rules and regulations, of the
2231	association which are the basis of the dispute, along with proof
2232	of service of the notice of dispute and a copy of any written
2233	responses received from the responding party, shall be included
2234	as an exhibit to any demand for mediation or arbitration under
2235	this part.
2236	720.505  Presuit mediation.--
2237	(1)  Disputes between an association and a parcel owner or
2238	owners or between parcel owners must be submitted to presuit
2239	mediation before the dispute may be filed in court; or, at the
2240	election of the party initiating the presuit procedures, such
2241	dispute may be submitted to presuit arbitration pursuant to s.
2242	720.507 before the dispute may be filed in court. An aggrieved
2243	party who elects to use the presuit mediation procedure under
2244	this section shall serve on the responding party a written
2245	notice of presuit mediation in substantially the following form:
2246
2247	STATUTORY NOTICE OF PRESUIT MEDIATION
2248
2249	THE ALLEGED AGGRIEVED PARTY, ____________________,
2250	HEREBY DEMANDS THAT ____________________, AS THE
2251	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
2252	MEDIATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)
2253	WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE
2254	SUBJECT TO PRESUIT MEDIATION:
2255
2256	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
2257	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO
2258	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
2259	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
2260	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
2261	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
2262	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
2263	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
2264	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
2265
2266	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
2267	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
2268	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
2269	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
2270	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
2271	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
2272	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
2273	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
2274	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
2275	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
2276	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
2277	SECTION 720.506, FLORIDA STATUTES, YOUR FAILURE TO
2278	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
2279	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
2280	FURTHER NOTICE.
2281
2282	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
2283	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
2284	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
2285	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
2286	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
2287	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
2288	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
2289	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
2290	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
2291	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
2292	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
2293	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
2294
2295	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
2296	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
2297	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
2298	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
2299	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
2300	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
2301	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
2302	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
2303	PARTY MAY PROCEED TO FILE A LAWSUIT ON ALL
2304	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
2305	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
2306	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
2307	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
2308	PROCEEDING INVOLVING THE SAME DISPUTE.
2309
2310	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
2311	ELIGIBLE, QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
2312	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
2313	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
2314	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
2315	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
2316	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
2317	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
2318	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
2319	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
2320	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
2321	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
2322
2323	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
2324	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
2325	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
2326	BE INCLUDED AS AN ATTACHMENT.)
2327
2328	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
2329	CONFIRM THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL
2330	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
2331	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
2332	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
2333	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
2334	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
2335	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
2336	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
2337	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
2338	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
2339	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
2340	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
2341	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
2342	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
2343	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
2344	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
2345	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
2346	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
2347	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
2348	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
2349	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
2350	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
2351	SHARE OF THE MEDIATOR FEES INCURRED.
2352
2353	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
2354	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
2355	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
2356	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
2357	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
2358
2359	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
2360	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
2361	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
2362	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
2363	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
2364	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
2365	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
2366	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
2367	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
2368	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
2369	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
2370	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
2371	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
2372	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
2373	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
2374	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
2375	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
2376	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
2377	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
2378	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
2379	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
2380	TO ONE OF THE MEDIATORS THAT THE AGGRIEVED PARTY HAS
2381	LISTED, FAIL TO PAY OR PREPAY TO THE MEDIATOR ONE-HALF
2382	OF THE COSTS INVOLVED, OR FAIL TO APPEAR AND
2383	PARTICIPATE AT THE SCHEDULED MEDIATION, THE AGGRIEVED
2384	PARTY WILL BE AUTHORIZED TO PROCEED WITH THE FILING OF
2385	A LAWSUIT AGAINST YOU WITHOUT FURTHER NOTICE. IN ANY
2386	SUBSEQUENT COURT ACTION, THE AGGRIEVED PARTY MAY SEEK
2387	AN AWARD OF REASONABLE ATTORNEY'S FEES AND COSTS
2388	INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
2389
2390	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
2391	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
2392	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
2393	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
2394	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
2395	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
2396	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
2397	OF THIS NOTICE.
2398
2399	________________________
2400	SIGNATURE OF AGGRIEVED PARTY
2401
2402	______________________
2403	PRINTED NAME OF AGGRIEVED PARTY
2404
2405	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
2406	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
2407
2408	AGREEMENT TO MEDIATE
2409
2410	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
2411	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
2412	CONDUCTED BY THE MEDIATOR LISTED BELOW AS ACCEPTABLE
2413	TO MEDIATE THIS DISPUTE:
2414
2415	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
2416	AGGRIEVED PARTY.)
2417
2418	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
2419	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
2420	FOLLOWING DATES AND TIMES:
2421
2422	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
2423	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
2424
2425	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
2426	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
2427	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
2428
2429	______________________________
2430	SIGNATURE OF RESPONDING PARTY #1
2431	______________________________
2432	TELEPHONE CONTACT INFORMATION
2433
2434	______________________________
2435	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
2436	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
2437	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
2438	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
2439	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
2440
2441	(2)(a)  Service of the notice of presuit mediation shall be
2442	effected either by personal service, as provided in chapter 48,
2443	or by certified mail, return receipt requested, in a letter in
2444	substantial conformity with the form provided in subsection (1),
2445	with an additional copy being sent by regular first-class mail,
2446	to the address of the responding party as it last appears on the
2447	books and records of the association or, if not available, then
2448	as it last appears in the official records of the county
2449	property appraiser where the parcel in dispute is located. The
2450	responding party has 20 days after the postmarked date of the
2451	mailing of the statutory notice or the date the responding party
2452	is served with a copy of the notice to serve a written response
2453	to the aggrieved party. The response shall be served by
2454	certified mail, return receipt requested, with an additional
2455	copy being sent by regular first-class mail, to the address
2456	shown on the statutory notice. The date of the postmark on the
2457	envelope for the response shall constitute the date that the
2458	response is served. Once the parties have agreed on a mediator,
2459	the mediator may schedule or reschedule the mediation for a date
2460	and time mutually convenient to the parties within 90 days after
2461	the date of service of the statutory notice. After such 90-day
2462	period, the mediator may reschedule the mediation only upon the
2463	mutual written agreement of all the parties.
2464	(b)  The parties shall share the costs of presuit mediation
2465	equally, including the fee charged by the mediator, if any,
2466	unless the parties agree otherwise, and the mediator may require
2467	advance payment of his or her reasonable fees and costs. Each
2468	party shall be responsible for that party's own attorney's fees
2469	if a party chooses to be represented by an attorney at the
2470	mediation.
2471	(c)  The party responding to the aggrieved party may
2472	provide a notice of opting out under s. 720.506 and demand
2473	arbitration or may sign the agreement to mediate included in the
2474	notice of presuit mediation. A responding party signing the
2475	agreement to mediate must clearly indicate the name of the
2476	mediator who is acceptable from the five names provided by the
2477	aggrieved party and must provide a list of dates and times in
2478	which the responding party is available to participate in the
2479	mediation within 90 days after the date the responding party was
2480	served, either by process server or by certified mail, with the
2481	statutory notice of presuit mediation.
2482	(d)  The mediator who has been selected and agreed to
2483	mediate must schedule the mediation conference at a mutually
2484	convenient time and place within that 90-day period; but, if the
2485	responding party does not provide a list of available dates and
2486	times, the mediator is authorized to schedule a mediation
2487	conference without taking the responding party's schedule and
2488	convenience into consideration. Within 10 days after the
2489	designation of the mediator, the mediator shall coordinate with
2490	the parties and notify the parties in writing of the date, time,
2491	and place of the mediation conference.
2492	(e)  The mediation conference must be held on the scheduled
2493	date and may be rescheduled if a rescheduled date is approved by
2494	the mediator. However, in no event shall the mediation be held
2495	later than 90 days after the notice of presuit mediation was
2496	first served, unless all parties mutually agree in writing
2497	otherwise. If the presuit mediation is not completed within the
2498	required time limits, the mediator shall declare an impasse
2499	unless the mediation date is extended by mutual written
2500	agreement by all parties and approved by the mediator.
2501	(f)  If the responding party fails to respond within 20
2502	days after the date of service of the statutory notice of
2503	presuit mediation, fails to agree to at least one of the
2504	mediators listed by the aggrieved party in the notice, fails to
2505	pay or prepay to the mediator one-half of the costs of the
2506	mediator, or fails to appear and participate at the scheduled
2507	mediation, the aggrieved party shall be authorized to proceed
2508	with the filing of a lawsuit without further notice.
2509	(g)1.  The failure of any party to respond to the statutory
2510	notice of presuit mediation within 20 days, the failure to agree
2511	upon a mediator, the failure to provide a listing of dates and
2512	times in which the responding party is available to participate
2513	in the mediation within 90 days after the date the responding
2514	party was served with the statutory notice of presuit mediation,
2515	the failure to make payment of fees and costs within the time
2516	established by the mediator, or the failure to appear for a
2517	scheduled mediation session without the approval of the mediator
2518	shall in each instance constitute a failure or refusal to
2519	participate in the mediation process and shall operate as an
2520	impasse in the presuit mediation by such party, entitling the
2521	other party to file a lawsuit in court and to seek an award of
2522	the costs and attorney's fees associated with the mediation.
2523	2.  Persons who fail or refuse to participate in the entire
2524	mediation process may not recover attorney's fees and costs in
2525	subsequent litigation relating to the same dispute between the
2526	same parties. If any presuit mediation session cannot be
2527	scheduled and conducted within 90 days after the offer to
2528	participate in mediation was filed, through no fault of either
2529	party, then an impasse shall be deemed to have occurred unless
2530	the parties mutually agree in writing to extend this deadline.
2531	In the event of such impasse, each party shall be responsible
2532	for its own costs and attorney's fees and one-half of any
2533	mediator fees and filing fees, and either party may file a
2534	lawsuit in court regarding the dispute.
2535	720.506  Opt-out of presuit mediation.--A party served with
2536	a notice of presuit mediation under s. 720.505 may opt out of
2537	presuit mediation and demand that the dispute proceed under
2538	nonbinding arbitration as follows:
2539	(1)  In lieu of a response to the notice of presuit
2540	mediation as required under s. 720.505, the responding party may
2541	serve upon the aggrieved party, in the same manner as the
2542	response to a notice for presuit mediation under s. 720.505, a
2543	notice of opting out of mediation and demand that the dispute
2544	instead proceed to presuit arbitration under s. 720.507.
2545	(2)  The aggrieved party shall be relieved from having to
2546	satisfy the requirements of s. 720.504 as a condition precedent
2547	to filing the demand for presuit arbitration.
2548	(3)  Except as otherwise provided in this part, the choice
2549	of which presuit alternative dispute resolution procedure is
2550	used shall be at the election of the aggrieved party who first
2551	initiated such proceeding after complying with the provisions of
2552	s. 720.504.
2553	720.507  Presuit arbitration.--
2554	(1)  Disputes between an association and a parcel owner or
2555	owners or between parcel owners are subject to a demand for
2556	presuit arbitration pursuant to this section before the dispute
2557	may be filed in court. A party who elects to use the presuit
2558	arbitration procedure under this part shall serve on the
2559	responding party a written notice of presuit arbitration in
2560	substantially the following form:
2561
2562	STATUTORY NOTICE OF PRESUIT ARBITRATION
2563
2564	THE ALLEGED AGGRIEVED PARTY, ____________________,
2565	HEREBY DEMANDS THAT ____________________, AS THE
2566	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
2567	ARBITRATION IN CONNECTION WITH THE FOLLOWING
2568	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
2569	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
2570
2571	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
2572	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
2573	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
2574	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
2575	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
2576	PARTIES.)
2577
2578	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
2579	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
2580	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
2581	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
2582	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
2583	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
2584	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
2585	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
2586	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
2587	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
2588	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
2589	WARNING.
2590
2591	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
2592	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
2593	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
2594	"ARBITRATION AWARD." PURSUANT TO SECTION 720.507,
2595	FLORIDA STATUTES, THE ARBITRATION AWARD SHALL BE FINAL
2596	UNLESS A LAWSUIT IS FILED IN A COURT OF COMPETENT
2597	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
2598	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
2599	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE OF THE
2600	ARBITRATION AWARD.
2601
2602	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
2603	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
2604	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
2605	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
2606	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
2607	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
2608	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
2609	PARTIES UNDER SECTION 720.505, FLORIDA STATUTES. THE
2610	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
2611	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
2612	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
2613	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
2614	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
2615	TO RECOVER ATTORNEY'S FEES IF YOU PREVAIL IN A
2616	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME
2617	DISPUTE.
2618
2619	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
2620	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
2621	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
2622	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
2623	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
2624	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
2625	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
2626	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
2627	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
2628	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
2629	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
2630	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
2631	AND HOURLY RATES, ARE AS FOLLOWS:
2632
2633	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
2634	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.)
2635
2636	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
2637	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
2638	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
2639
2640	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
2641	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
2642	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
2643	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
2644	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
2645	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
2646	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
2647	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
2648	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
2649	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
2650	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
2651	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
2652	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
2653	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
2654	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
2655	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
2656	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
2657
2658	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
2659	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
2660	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
2661	AGGRIEVED PARTY.
2662
2663	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
2664	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
2665	PRESUIT ARBITRATION WAS PERSONALLY SERVED ON YOU OR
2666	THE POSTMARKED DATE THAT THIS NOTICE OF PRESUIT
2667	ARBITRATION WAS SENT TO YOU BY CERTIFIED MAIL. YOU
2668	MUST ALSO PROVIDE A LIST OF AT LEAST THREE DATES AND
2669	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
2670	ARBITRATION THAT ARE WITHIN 90 DAYS AFTER THE DATE YOU
2671	WERE PERSONALLY SERVED OR WITHIN 90 DAYS AFTER THE
2672	POSTMARKED DATE OF THE CERTIFIED MAILING OF THIS
2673	STATUTORY NOTICE OF PRESUIT ARBITRATION. A COPY OF
2674	THIS NOTICE AND YOUR RESPONSE WILL BE PROVIDED BY THE
2675	AGGRIEVED PARTY TO THE ARBITRATOR SELECTED, AND THE
2676	ARBITRATOR WILL SCHEDULE A MUTUALLY CONVENIENT TIME
2677	AND PLACE FOR THE ARBITRATION CONFERENCE TO BE HELD.
2678	IF YOU DO NOT PROVIDE A LIST OF AVAILABLE DATES AND
2679	TIMES, THE ARBITRATOR IS AUTHORIZED TO SCHEDULE AN
2680	ARBITRATION CONFERENCE WITHOUT TAKING YOUR SCHEDULE
2681	AND CONVENIENCE INTO CONSIDERATION. THE ARBITRATION
2682	CONFERENCE MUST BE HELD ON THE SCHEDULED DATE, OR ANY
2683	RESCHEDULED DATE APPROVED BY THE ARBITRATOR. IN NO
2684	EVENT SHALL THE ARBITRATION CONFERENCE BE LATER THAN
2685	90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS
2686	FIRST SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN
2687	WRITING OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED
2688	WITHIN THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL
2689	ISSUE AN ARBITRATION AWARD, UNLESS THE HEARING IS
2690	EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES
2691	AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
2692	FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
2693	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
2694	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
2695	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
2696	AGREE TO ONE OF THE ARBITRATORS THAT THE AGGRIEVED
2697	PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO THE
2698	ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS REQUIRED,
2699	OR FAIL TO APPEAR AND PARTICIPATE AT THE SCHEDULED
2700	ARBITRATION CONFERENCE, THE AGGRIEVED PARTY MAY
2701	REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION AWARD.
2702	IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED PARTY
2703	SHALL BE ENTITLED TO RECOVER AN AWARD OF REASONABLE
2704	ATTORNEY'S FEES AND COSTS, INCLUDING ANY FEES PAID TO
2705	THE ARBITRATOR, INCURRED IN OBTAINING AN ARBITRATION
2706	AWARD PURSUANT TO SECTION 720.507, FLORIDA STATUTES.
2707
2708	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
2709	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
2710	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
2711	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
2712	ARBITRATION.
2713
2714	_________________________
2715	SIGNATURE OF AGGRIEVED PARTY
2716
2717	______________________
2718	PRINTED NAME OF AGGRIEVED PARTY
2719
2720	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
2721	ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
2722
2723	AGREEMENT TO ARBITRATE
2724
2725	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
2726	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
2727	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
2728	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
2729	ARBITRATE THIS DISPUTE:
2730
2731	(IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR
2732	THAT IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS
2733	LISTED BY THE AGGRIEVED PARTY.)
2734
2735	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
2736	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
2737	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
2738	AND TIMES:
2739
2740	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
2741	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
2742	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
2743	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
2744	ARBITRATION.)
2745
2746	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
2747	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
2748	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
2749
2750	______________________________
2751	SIGNATURE OF RESPONDING PARTY #1
2752	______________________________
2753	TELEPHONE CONTACT INFORMATION
2754
2755	______________________________
2756	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
2757	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
2758	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
2759	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
2760	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
2761
2762	(2)(a)  Service of the notice of presuit arbitration shall
2763	be effected either by personal service, as provided in chapter
2764	48, or by certified mail, return receipt requested, in a letter
2765	in substantial conformity with the form provided in subsection
2766	(1), with an additional copy being sent by regular first-class
2767	mail, to the address of the responding party as it last appears
2768	on the books and records of the association or, if not
2769	available, the last address as it appears on the official
2770	records of the county property appraiser for the county in which
2771	the property is situated that is subject to the association
2772	documents. The responding party has 20 days after the postmarked
2773	date of the certified mailing of the statutory notice of presuit
2774	arbitration or the date the responding party is personally
2775	served with the statutory notice of presuit arbitration to serve
2776	a written response to the aggrieved party. The response shall be
2777	served by certified mail, return receipt requested, with an
2778	additional copy being sent by regular first-class mail, to the
2779	address shown on the statutory notice of presuit arbitration.
2780	The postmarked date on the envelope of the response shall
2781	constitute the date the response was served.
2782	(b)  The parties shall share the costs of presuit
2783	arbitration equally, including the fee charged by the
2784	arbitrator, if any, unless the parties agree otherwise, and the
2785	arbitrator may require advance payment of his or her reasonable
2786	fees and costs. Each party shall be responsible for that party's
2787	own attorney's fees if a party chooses to be represented by an
2788	attorney for the arbitration proceedings.
2789	(c)1.  The party responding to the aggrieved party must
2790	sign the agreement to arbitrate included in the notice of
2791	presuit arbitration and clearly indicate the name of the
2792	arbitrator who is acceptable of those arbitrators listed by the
2793	aggrieved party. The responding party must provide a list of at
2794	least three dates and times in which the responding party is
2795	available to participate in the arbitration conference within 90
2796	days after the date the responding party was served with the
2797	statutory notice of presuit arbitration.
2798	2.  The arbitrator must schedule the arbitration conference
2799	at a mutually convenient time and place, but if the responding
2800	party does not provide a list of available dates and times, the
2801	arbitrator is authorized to schedule an arbitration conference
2802	without taking the responding party's schedule and convenience
2803	into consideration. Within 10 days after the designation of the
2804	arbitrator, the arbitrator shall notify the parties in writing
2805	of the date, time, and place of the arbitration conference.
2806	3.  The arbitration conference must be held on the
2807	scheduled date and may be rescheduled if approved by the
2808	arbitrator. However, in no event shall the arbitration hearing
2809	be later than 90 days after the notice of presuit arbitration
2810	was first served, unless all parties mutually agree in writing
2811	otherwise. If the arbitration hearing is not completed within
2812	the required time limits, the arbitrator may issue an
2813	arbitration award unless the time for the hearing is extended as
2814	provided herein.
2815	4.  If the responding party fails to respond within 20 days
2816	after the date of statutory notice of presuit arbitration, fails
2817	to agree to at least one of the arbitrators that have been
2818	listed by the aggrieved party in the presuit notice of
2819	arbitration, fails to pay or prepay to the arbitrator one-half
2820	of the costs involved, or fails to appear and participate at the
2821	scheduled arbitration, the aggrieved party is authorized to
2822	proceed with a request that the arbitrator issue an arbitration
2823	award.
2824	(d)1.  The failure of any party to respond to the statutory
2825	notice of presuit arbitration within 20 days, the failure to
2826	select one of the arbitrators listed by the aggrieved party, the
2827	failure to provide a listing of dates and times in which the
2828	responding party is available to participate in the arbitration
2829	conference within 90 days after the date of the responding party
2830	being served with the statutory notice of presuit arbitration,
2831	the failure to make payment of fees and costs as required within
2832	the time established by the arbitrator, or the failure to appear
2833	for an arbitration conference without the approval of the
2834	arbitrator shall entitle the other party to request the
2835	arbitrator to enter an arbitration award, including an award of
2836	the reasonable costs and attorney's fees associated with the
2837	arbitration.
2838	2.  Persons who fail or refuse to participate in the entire
2839	arbitration process may not recover attorney's fees and costs in
2840	any subsequent litigation proceeding relating to the same
2841	dispute involving the same parties.
2842	(3)(a)  In an arbitration proceeding, the arbitrator may
2843	not consider any unsuccessful mediation of the dispute.
2844	(b)  An arbitrator in a proceeding initiated pursuant to
2845	this part may shorten the time for discovery or otherwise limit
2846	discovery in a manner consistent with the policy goals of this
2847	part to reduce the time and expense of litigating homeowners'
2848	association disputes initiated pursuant to this chapter and to
2849	promote an expeditious alternative dispute resolution procedure
2850	for parties to such actions.
2851	(4)  At the request of any party to the arbitration, the
2852	arbitrator may issue subpoenas for the attendance of witnesses
2853	and the production of books, records, documents, and other
2854	evidence, and any party on whose behalf a subpoena is issued may
2855	apply to the court for orders compelling such attendance and
2856	production. Subpoenas shall be served and are enforceable in the
2857	manner provided by the Florida Rules of Civil Procedure.
2858	Discovery may, at the discretion of the arbitrator, be permitted
2859	in the manner provided by the Florida Rules of Civil Procedure.
2860	(5)  The final arbitration award shall be sent to the
2861	parties in writing no later than 30 days after the date of the
2862	arbitration hearing, absent extraordinary circumstances
2863	necessitating a later filing the reasons for which shall be
2864	stated in the final award if filed more than 30 days after the
2865	date of the final session of the arbitration conference. An
2866	agreed arbitration award is final in those disputes in which the
2867	parties have mutually agreed to be bound. An arbitration award
2868	decided by the arbitrator is final unless a lawsuit seeking a
2869	trial de novo is filed in a court of competent jurisdiction
2870	within 30 days after the date of the arbitration award. The
2871	right to file for a trial de novo entitles the parties to file a
2872	complaint in the appropriate trial court for a judicial
2873	resolution of the dispute. The prevailing party in an
2874	arbitration proceeding shall be awarded the costs of the
2875	arbitration and reasonable attorney's fees in an amount
2876	determined by the arbitrator.
2877	(6)  The party filing a motion for a trial de novo shall be
2878	assessed the other party's arbitration costs, court costs, and
2879	other reasonable costs, including attorney's fees, investigation
2880	expenses, and expenses for expert or other testimony or evidence
2881	incurred after the arbitration hearing, if the judgment upon the
2882	trial de novo is not more favorable than the final arbitration
2883	award.
2884	720.508  Rules of procedure.--
2885	(1)  Presuit mediation and presuit arbitration proceedings
2886	under this part must be conducted in accordance with the
2887	applicable Florida Rules of Civil Procedure and rules governing
2888	mediations and arbitrations under chapter 44, except that this
2889	part shall be controlling to the extent of any conflict with
2890	other applicable rules or statutes. The arbitrator may shorten
2891	any applicable time period and otherwise limit the scope of
2892	discovery on request of the parties or within the discretion of
2893	the arbitrator exercised consistent with the purpose and
2894	objective of reducing the expense and expeditiously concluding
2895	proceedings under this part.
2896	(2)  Presuit mediation proceedings under s. 720.505 are
2897	privileged and confidential to the same extent as court-ordered
2898	mediation under chapter 44. An arbitrator or judge may not
2899	consider any information or evidence arising from the presuit
2900	mediation proceeding except in a proceeding to impose sanctions
2901	for failure to attend a presuit mediation session or to enforce
2902	a mediated settlement agreement.
2903	(3)  Persons who are not parties to the dispute may not
2904	attend the presuit mediation conference without consent of all
2905	parties, with the exception of counsel for the parties and a
2906	corporate representative designated by the association. Presuit
2907	mediations under this part are not a board meeting for purposes
2908	of notice and participation set forth in this chapter.
2909	(4)  Attendance at a mediation conference by the board of
2910	directors shall not require notice or participation by nonboard
2911	members as otherwise required by this chapter for meetings of
2912	the board.
2913	(5)  Settlement agreements resulting from a mediation or
2914	arbitration proceeding do not have precedential value in
2915	proceedings involving parties other than those participating in
2916	the mediation or arbitration.
2917	(6)  Arbitration awards by an arbitrator shall have
2918	precedential value in other proceedings involving the same
2919	association or with respect to the same parcel owner.
2920	720.509  Mediators and arbitrators; qualifications.--A
2921	person is authorized to conduct mediation or arbitration under
2922	this part if he or she has been certified as a circuit court
2923	civil mediator under the requirements adopted pursuant to s.
2924	44.106, is a member in good standing with The Florida Bar, and
2925	otherwise meets all other requirements imposed by chapter 44.
2926	720.510  Enforcement of mediation agreement or arbitration
2927	award.--
2928	(1)  A mediation settlement may be enforced through the
2929	county or circuit court, as applicable, and any costs and
2930	attorney's fees incurred in the enforcement of a settlement
2931	agreement reached at mediation shall be awarded to the
2932	prevailing party in any enforcement action.
2933	(2)  Any party to an arbitration proceeding may enforce an
2934	arbitration award by filing a petition in a court of competent
2935	jurisdiction in which the homeowners' association is located.
2936	The prevailing party in such proceeding shall be awarded
2937	reasonable attorney's fees and costs incurred in such
2938	proceeding.
2939	(3)  If a complaint is filed seeking a trial de novo, the
2940	arbitration award shall be stayed and a petition to enforce the
2941	award may not be granted. Such award, however, shall be
2942	admissible in the court proceeding seeking a trial de novo.
2943	Section 25.  All new residential construction in any deed-
2944	restricted community that requires mandatory membership in the
2945	association under chapter 718, chapter 719, or chapter 720,
2946	Florida Statutes, must comply with the provisions of Pub. L. No.
2947	110-140, Title XIV, ss. 1402 to 1406, 15 U.S.C. ss. 8001-8005.
2948	Section 26.  This act shall take effect July 1, 2010.

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