HB 419

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	20.165, F.S.; providing certain inspection powers for
4	employees of the Division of Florida Condominiums,
5	Timeshares, and Mobile Homes; amending s. 468.436, F.S.;
6	revising a ground for disciplinary action relating to
7	misconduct or negligence; requiring the Department of
8	Business and Professional Regulation to enter an order
9	permanently revoking the license of a community
10	association manager under certain circumstances; amending
11	s. 718.103, F.S.; revising the definition of the term
12	"developer"; amending s. 718.111, F.S.; providing
13	requirements for association access to a unit, including
14	prior notice; providing an exception for emergencies;
15	providing requirements for the selection of condominium
16	association board meeting times and locations; providing
17	restrictions on the times set for certain meetings;
18	prohibiting certain expenditures and contributions by a
19	condominium association; providing liability; amending s.
20	718.112, F.S.; revising notice requirements for board of
21	administration meetings; revising location requirements
22	for the annual meeting of unit owners; revising terms of
23	board members; revising election notice requirements;
24	providing requirements for the amendment of association
25	bylaws; providing for the removal of certain directors and
26	officers; providing qualifications for service on the
27	board of directors; providing requirements for the
28	borrowing of funds or committing to a line of credit by
29	the board; amending s. 718.113, F.S.; authorizing the
30	association to install code-compliant impact glass as
31	hurricane protection in certain areas; amending s.
32	718.116, F.S.; authorizing an association to demand future
33	regular assessments related to the condominium unit under
34	specified conditions; providing that the demand is
35	continuing in nature; requiring that a tenant continue to
36	pay assessments until the occurrence of specified events;
37	requiring the delivery of notice of such demand; limiting
38	the liability of a tenant; providing requirements for a
39	notice of delinquency; limiting collection fees; amending
40	s. 718.1265, F.S.; providing conditions under which the
41	association may use certain emergency powers; 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.; authorizing an
46	association to suspend, for a reasonable time, the right
47	of a unit owner or the unit's occupant, licensee, or
48	invitee to use certain common elements under certain
49	conditions; excluding certain common elements from such
50	authorization; prohibiting a fine from being levied or a
51	suspension from being imposed unless the association meets
52	certain notice requirements; providing circumstances under
53	which such notice requirements do not apply; providing
54	procedures and notice requirements for levying a fine or
55	imposing a suspension; amending s. 718.501, F.S.; revising
56	condominium matters over which the Division of Florida
57	Condominiums, Timeshares, and Mobile Homes has
58	jurisdiction; revising and providing powers of the
59	division; requiring the division to create a specified
60	booklet for association directors; amending s. 718.5012,
61	F.S.; authorizing the Office of the Condominium Ombudsman
62	to assist in the resolution of certain disputes; amending
63	s. 718.50151, F.S.; redesignating the Community
64	Association Living Study Council as the Community
65	Association Study Council; revising council membership;
66	amending s. 719.103, F.S.; revising definitions; changing
67	references from unit owner to shareholder in statutes
68	relating to cooperatives; amending s. 719.104, F.S.;
69	providing requirements for association access to a unit,
70	including prior notice; providing an exception for
71	emergencies; providing civil penalties for violations of
72	accounting records requirements; exempting certain
73	personal information from unit owner records requests;
74	providing immunity from liability for certain information
75	provided by associations to prospective purchasers or
76	lienholders under certain circumstances; providing
77	requirements with respect to financial statements and
78	reports; providing that the operation of the cooperative
79	shall be by the association; providing that shareholders
80	shall be members of the association; providing legislative
81	intent; providing that a director of the association who
82	abstains from voting on any action taken on any corporate
83	matter shall be presumed to have taken no position with
84	regard to the action; providing duties of officers,
85	directors, and agents of a cooperative association and
86	liability for monetary damages under certain
87	circumstances; providing that the association may
88	contract, sue, or be sued with respect to the exercise or
89	nonexercise of its powers; providing powers of the
90	association with respect to title to property and purchase
91	of units; providing requirements for the selection of
92	cooperative association board of directors meeting times
93	and locations; providing restrictions on the times set for
94	certain meetings; prohibiting certain expenditures and
95	contributions by a cooperative association; providing
96	liability; amending s. 719.106, F.S.; requiring certain
97	items to be placed on the agenda of board meetings;
98	revising notice requirements for board meetings; providing
99	requirements for shareholder meetings; providing terms of
100	office and election requirements for the board of
101	directors; providing criteria for the amendment of the
102	bylaws; providing eligibility to vote on certain questions
103	involving reserve funds; requiring proxy questions
104	relating to reserves to contain a specified statement;
105	requiring the bylaws to contain certain provisions;
106	requiring that directors and officers who are delinquent
107	in certain payments owed in excess of certain periods of
108	time be deemed to have abandoned their offices; requiring
109	that directors and officers charged with certain offenses
110	involving an association's funds or property be suspended
111	from office pending resolution of the charge; providing
112	for the reinstatement of such directors and officers under
113	certain circumstances; providing qualifications for
114	directors; providing requirements for the borrowing of
115	funds or committing to a line of credit by the board;
116	repealing s. 719.1064, F.S., relating to the failure to
117	fill vacancies on board of administration and the
118	appointment of a receiver upon petition of a shareholder;
119	amending s. 719.107, F.S.; providing that the expense of
120	installation, replacement, operation, repair, and
121	maintenance of hurricane shutters or other hurricane
122	protection shall either constitute a common expense or be
123	charged individually to the shareholders under certain
124	conditions; amending s. 719.108, F.S.; providing grounds
125	for disapproval of the proposed lease of a unit by an
126	association; providing lien requirements; providing for
127	the extension of certain liens; providing lien notice and
128	filing requirements; providing requirements for a notice
129	of delinquency; providing foreclosure requirements;
130	providing the association with the power to purchase a
131	cooperative unit at a foreclosure sale; requiring the
132	association to provide a certificate of assessment under
133	certain conditions; providing for the establishment of
134	fees for the preparation of such certificates; providing
135	for the refund of certain fees; authorizing the
136	association to demand payment of future assessments under
137	specified conditions; providing that the demand is
138	continuing in nature; requiring that a tenant continue to
139	pay assessments until the occurrence of specified events;
140	requiring the delivery of notice of such demand; limiting
141	the liability of a tenant; creating s. 719.113, F.S.;
142	providing that maintenance of common areas is the
143	responsibility of the association; providing that the
144	cooperative documents may include reference that the
145	association provide certain maintenance for the
146	condominium; providing that there shall be no material
147	alteration or substantial additions to the common areas or
148	to real property which is association property; providing
149	for protection of the common areas; allowing shareholders
150	to display a United States flag as well as other specified
151	flags on designated days and patriotic holidays; requiring
152	the board to adopt hurricane shutter specifications;
153	authorizing the board to install certain hurricane
154	protection; prohibiting the board from installing certain
155	hurricane shutters or other hurricane protection under
156	certain circumstances; providing for the maintenance,
157	repair, and replacement of hurricane shutters or other
158	hurricane protection; authorizing the board to operate
159	hurricane shutters without shareholder permission under
160	certain circumstances; prohibiting the board from refusing
161	to approve the installation or replacement of hurricane
162	shutters under certain conditions; requiring that the
163	board inspect certain buildings and issue a report under
164	certain conditions; providing an exception; prohibiting
165	the board from refusing a request for reasonable
166	accommodation for the attachment to a unit of religious
167	objects meeting certain size specifications; authorizing
168	the board to install solar collectors, clotheslines, or
169	other energy-efficient devices upon or within common areas
170	or association property; creating s. 719.117, F.S.;
171	providing legislative findings; providing provisions
172	relating to the termination of the cooperative form of
173	ownership of a property due to economic waste or
174	impossibility or optional termination; providing grounds
175	for termination; providing an exemption; providing that
176	the approval of a plan of termination by certain mortgage
177	lienholders is not required under certain conditions;
178	providing powers and duties of the board relating to the
179	plan of termination; providing requirements following
180	natural disasters; providing reporting requirements;
181	providing requirements for a plan of termination;
182	providing for the allocation of proceeds from the sale of
183	cooperative property; providing powers and duties of a
184	termination trustee; providing notice requirements;
185	providing a procedure for contesting a plan of
186	termination; providing for recovery of attorney's fees and
187	costs; providing rules for the distribution of property
188	and sale proceeds; providing for the association's status
189	following termination; allowing the creation of another
190	cooperative by the trustee; creating s. 719.1224, F.S.;
191	prohibiting strategic lawsuits against public
192	participation; providing legislative findings and intent;
193	prohibiting a governmental entity, business organization,
194	or individual from filing certain lawsuits made upon
195	specified bases against a shareholder; providing rights of
196	a shareholder who has been served with such a lawsuit;
197	providing procedures for the resolution of certain claims;
198	providing for the award of damages and attorney's fees;
199	prohibiting associations from expending association funds
200	in prosecuting such a suit against a shareholder; amending
201	s. 719.1255, F.S.; requiring the division to provide
202	alternative dispute resolution for certain matters;
203	creating s. 719.1265, F.S.; authorizing an association to
204	exercise certain powers in instances involving damage
205	caused by an event for which a state of emergency has been
206	declared; limiting the applicability of such powers;
207	amending s. 719.301, F.S.; providing circumstances under
208	which shareholders other than a developer may elect not
209	less than a majority of the members of the board;
210	requiring a turnover inspection report; requiring that the
211	report contain certain information; creating s. 719.3025,
212	F.S.; requiring written contracts for the operation,
213	maintenance, or management of a cooperative association or
214	cooperative property; providing contract requirements;
215	authorizing the association to procure outside services
216	under certain circumstances; providing that services or
217	obligations not stated on the face of the contract are
218	unenforceable; providing applicability; amending s.
219	719.3026, F.S.; revising a provision authorizing certain
220	associations to opt out of provisions relating to
221	contracts for products and services; removing provisions
222	exempting contracts executed before a specified date from
223	certain competitive bid requirements; providing
224	requirements for any contract or transaction between an
225	association and one or more of its directors or a
226	specified other entity in which one or more of its
227	directors are directors or officers or have a financial
228	interest; amending s. 719.303, F.S.; authorizing an
229	association to suspend, for a reasonable time, the right
230	of a shareholder or a shareholder's occupant, licensee, or
231	invitee to use certain common elements under certain
232	conditions; excluding certain common elements from such
233	authorization; providing that hearings regarding
234	noncompliance with a declaration be held before certain
235	persons; providing an exception to certain notice and
236	hearing requirements; amending s. 719.501, F.S.; providing
237	authority and responsibilities of the division; providing
238	for enforcement actions brought by the division in its own
239	name; providing for the imposition of penalties by the
240	division; requiring that the division issue a subpoena
241	requiring production of certain requested records under
242	certain circumstances; providing for the issuance of
243	notice of a declaratory statement with respect to
244	documents governing a cooperative; deleting requirement
245	that the division adopt certain accounting principles;
246	requiring that the division provide training and
247	educational programs for association board members and
248	shareholders; providing that the division shall include
249	certain training components, may review or approve
250	training and educational programs offered by providers,
251	and shall maintain a list of approved programs and
252	providers; requiring that certain individuals cooperate
253	with the division in any investigation conducted by the
254	division; requiring the division to cooperate with similar
255	agencies in other jurisdictions to establish certain
256	procedures, standards, and forms; specifying what
257	constitutes completeness of notice to a developer;
258	authorizing the division to issue a notice to show cause;
259	requiring the division to include certain information
260	relating to cooperatives in a specified annual report
261	relating to condominiums; requiring an association to pay
262	any penalty due to the division before having standing to
263	maintain or defend any action in the courts of this state;
264	amending s. 719.503, F.S.; providing nondeveloper
265	shareholder disclosure requirements for the sale of
266	interest in a cooperative association, including a
267	governance form; requiring the division to provide the
268	governance form; providing requirements for the governance
269	form; amending s. 720.303, F.S.; revising notice
270	requirements for board meetings; providing requirements
271	for the borrowing of funds or committing to a line of
272	credit by the board of directors of a homeowners'
273	association; providing requirements relating to transfer
274	fees; prohibiting certain expenditures and contributions
275	by a homeowners' association; providing liability;
276	amending s. 720.304, F.S.; revising requirements with
277	respect to the display of flags by a homeowner; amending
278	s. 720.306, F.S.; revising instances in which the
279	governing documents of the association may be amended;
280	providing circumstances and methods by which the
281	association bylaws may be amended; creating s. 720.3065,
282	F.S.; providing circumstances for removal of a director or
283	officer of, and providing qualifications for service on,
284	the board of directors of a homeowners' association;
285	creating s. 720.3068, F.S.; providing requirements for the
286	selection of homeowners' association board meeting times
287	and locations; providing restrictions on the times set for
288	certain meetings; amending s. 720.3085, F.S.; revising
289	provisions relating to the effectiveness and priority of
290	homeowners' association liens; providing requirements for
291	a notice of delinquency; authorizing an association to
292	demand future regular assessments related to the parcel
293	under specified conditions; providing that the demand is
294	continuing in nature; requiring that a tenant continue to
295	pay assessments until the occurrence of specified events;
296	requiring the delivery of written notice of such demand;
297	limiting the liability of a tenant; creating s. 720.314,
298	F.S.; providing for parcel owners to file informational
299	complaints regarding homeowners' associations and their
300	officers and directors with the Office of Program Policy
301	Analysis and Government Accountability; providing for an
302	informational complaint form and the format of such form;
303	amending s. 721.16, F.S.; conforming a cross-reference;
304	providing an effective date.
305
306	Be It Enacted by the Legislature of the State of Florida:
307
308	Section 1.  Subsection (10) is added to section 20.165,
309	Florida Statutes, to read:
310	20.165  Department of Business and Professional
311	Regulation.-There is created a Department of Business and
312	Professional Regulation.
313	(10)  All employees authorized by the Division of Florida
314	Condominiums, Timeshares, and Mobile Homes shall have access to
315	and shall have the right to examine and inspect the premises,
316	books, and records of any condominium, cooperative, timeshare,
317	or mobile home park regulated by the division. Such employees
318	shall also have access to and shall have the right to examine
319	and inspect the books and records of any community association
320	manager or firm employed by any condominium, cooperative,
321	timeshare, or mobile home park regulated by the division.
322	Section 2.  Paragraph (b) of subsection (2) of section
323	468.436, Florida Statutes, is amended, and subsection (6) is
324	added to that section, to read:
325	468.436  Disciplinary proceedings.-
326	(2)  The following acts constitute grounds for which the
327	disciplinary actions in subsection (4) may be taken:
328	(b)1.  Violation of any provision of this part.
329	2.  Violation of any lawful order or rule rendered or
330	adopted by the department or the council.
331	3.  Being convicted of or pleading nolo contendere to a
332	felony in any court in the United States.
333	4.  Obtaining a license or certification or any other
334	order, ruling, or authorization by means of fraud,
335	misrepresentation, or concealment of material facts.
336	5.  Committing acts of gross misconduct or gross negligence
337	in connection with the profession.
338	6.  Contracting, on behalf of an association, with any
339	entity in which the licensee has a financial interest that is
340	not disclosed.
341	(6)  Upon the fifth or later finding that a community
342	association manager is guilty of any of the grounds set forth in
343	subsection (2), or upon the third or later finding that a
344	community association manager is guilty of a specific ground for
345	which the disciplinary actions set forth in subsection (2) may
346	be taken, the department's discretion under subsection (4) shall
347	not apply and the division shall enter an order permanently
348	revoking the license.
349	Section 3.  Subsection (16) of section 718.103, Florida
350	Statutes, is amended to read:
351	718.103  Definitions.-As used in this chapter, the term:
352	(16)  "Developer" means a person who creates a condominium
353	or offers condominium parcels for sale or lease in the ordinary
354	course of business, but does not include:
355	(a)  An owner or lessee of a condominium or cooperative
356	unit who has acquired the unit for his or her own occupancy;,
357	nor does it include
358	(b)  A cooperative association that which creates a
359	condominium by conversion of an existing residential cooperative
360	after control of the association has been transferred to the
361	unit owners if, following the conversion, the unit owners will
362	be the same persons who were unit owners of the cooperative and
363	no units are offered for sale or lease to the public as part of
364	the plan of conversion; or.
365	(c)  A state, county, or municipal entity is not a
366	developer for any purposes under this act when it is acting as a
367	lessor and not otherwise named as a developer in the declaration
368	of condominium association.
369	Section 4.  Subsection (5) and paragraph (b) of subsection
370	(12) of section 718.111, Florida Statutes, are amended, and
371	subsections (15) and (16) are added to that section, to read:
372	718.111  The association.-
373	(5)  RIGHT OF ACCESS TO UNITS.-The association has the
374	irrevocable right of access to each unit during reasonable
375	hours, when necessary for the maintenance, repair, or
376	replacement of any common elements or of any portion of a unit
377	to be maintained by the association pursuant to the declaration
378	or as necessary to prevent damage to the common elements or to a
379	unit or units. Except in cases of emergency, the association
380	must give the unit owner advance written notice of not less than
381	24 hours of its intent to access the unit and such access must
382	be by two persons, one of whom must be a member of the board of
383	administration or a manager or employee of the association and
384	one of whom must be an authorized representative of the
385	association. The identity of the authorized representative
386	seeking access to the unit must be provided to the unit owner
387	prior to entering the unit.
388	(12)  OFFICIAL RECORDS.-
389	(b)  The official records of the association shall be
390	maintained within the state for at least 7 years. The records of
391	the association shall be made available to a unit owner within
392	45 miles of the condominium property or within the county in
393	which the condominium property is located within 5 working days
394	after receipt of written request by the board or its designee.
395	However, such distance requirement does not apply to an
396	association governing a timeshare condominium. This paragraph
397	may be complied with by having a copy of the official records of
398	the association available for inspection or copying on the
399	condominium property or association property., or The
400	association may offer the option of making the records of the
401	association available to a unit owner either electronically via
402	the Internet or by allowing the records to be viewed in
403	electronic format on a computer screen and printed upon request.
404	(15)  MEETINGS.-Regular meetings of the board of
405	administration shall be held at such time and place as provided
406	in the bylaws until the first regular meeting of the board held
407	on or after October 1, 2010. Thereafter, the location and time
408	for regular meetings of the board shall be determined by a
409	majority vote of the unit owners at the next regular meeting
410	held on or after October 1, 2010. Once the time and place for
411	regular meetings of the board have been selected, neither may be
412	changed unless approved by a majority vote of the unit owners.
413	Regular meetings of the board of administration held on weekdays
414	may be held no earlier than 6 p.m. local time.
415	(16)  LIMIT ON EXPENDITURES AND CONTRIBUTIONS.-It shall be
416	unlawful for an association to make any expenditure of
417	association funds or to make any in-kind contribution of
418	association assets that does not relate to the purposes for
419	which the association is organized.
420	(a)  The association shall not make any contribution to a
421	campaign or committee of continuous existence governed by
422	chapter 105 or chapter 106.
423	(b)  The association shall not make any contribution to a
424	charitable organization if the association does not receive a
425	direct benefit from the organization.
426	(c)  Members of the board of administration shall be
427	jointly and severely liable to reimburse the association for any
428	contribution, expenditure, or in-kind contribution made in
429	violation of this subsection.
430	Section 5.  Paragraphs (c), (d), (h), and (o) of subsection
431	(2) of section 718.112, Florida Statutes, are amended, and
432	paragraphs (p) and (q) are added to that subsection, to read:
433	718.112  Bylaws.-
434	(2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
435	following and, if they do not do so, shall be deemed to include
436	the following:
437	(c)  Board of administration meetings.-Meetings of the
438	board of administration at which a quorum of the members is
439	present shall be open to all unit owners. Any unit owner may
440	tape record or videotape meetings of the board of
441	administration. The right to attend such meetings includes the
442	right to speak at such meetings with reference to all designated
443	agenda items. The division shall adopt reasonable rules
444	governing the tape recording and videotaping of the meeting. The
445	association may adopt written reasonable rules governing the
446	frequency, duration, and manner of unit owner statements.
447	Adequate notice of all meetings, which notice shall specifically
448	incorporate an identification of agenda items, shall be posted
449	conspicuously on the condominium property at least 48 continuous
450	hours preceding the meeting except in an emergency. If 20
451	percent of the voting interests petition the board to address an
452	item of business, the board shall at its next regular board
453	meeting or at a special meeting of the board, but not later than
454	60 days after the receipt of the petition, place the item on the
455	agenda. Any item not included on the notice may be taken up on
456	an emergency basis by at least a majority plus one of the
457	members of the board. Such emergency action shall be noticed and
458	ratified at the next regular meeting of the board. However,
459	written notice of any meeting at which nonemergency special
460	assessments, or at which amendment to rules regarding unit use,
461	will be considered shall be mailed, delivered, or electronically
462	transmitted to the unit owners and posted conspicuously on the
463	condominium property not less than 14 days prior to the meeting.
464	Evidence of compliance with this 14-day notice shall be made by
465	an affidavit executed by the person providing the notice and
466	filed among the official records of the association. Upon notice
467	to the unit owners, the board shall by duly adopted rule
468	designate a specific location on the condominium property or
469	association property upon which all notices of board meetings
470	shall be posted. If there is no condominium property or
471	association property upon which notices can be posted, notices
472	of board meetings shall be mailed, delivered, or electronically
473	transmitted at least 14 days before the meeting to the owner of
474	each unit. In lieu of or in addition to the physical posting of
475	notice of any meeting of the board of administration on the
476	condominium property, the association may, by reasonable rule,
477	adopt a procedure for conspicuously posting and repeatedly
478	broadcasting the notice and the agenda on a closed-circuit cable
479	television system serving the condominium association. However,
480	if broadcast notice is used in lieu of a notice posted
481	physically on the condominium property, the notice and agenda
482	must be broadcast at least four times every broadcast hour of
483	each day that a posted notice is otherwise required under this
484	section. When broadcast notice is provided, the notice and
485	agenda must be broadcast in a manner and for a sufficient
486	continuous length of time so as to allow an average reader to
487	observe the notice and read and comprehend the entire content of
488	the notice and the agenda. Notice of any meeting in which
489	regular or special assessments against unit owners are to be
490	considered for any reason shall specifically state that
491	assessments will be considered and the nature of, the actual
492	estimated cost of, and a description of the purposes for such
493	assessments. Meetings of a committee to take final action on
494	behalf of the board or make recommendations to the board
495	regarding the association budget are subject to the provisions
496	of this paragraph. Meetings of a committee that does not take
497	final action on behalf of the board or make recommendations to
498	the board regarding the association budget are subject to the
499	provisions of this section, unless those meetings are exempted
500	from this section by the bylaws of the association.
501	Notwithstanding any other law, the requirement that board
502	meetings and committee meetings be open to the unit owners is
503	inapplicable to meetings between the board or a committee and
504	the association's attorney, with respect to proposed or pending
505	litigation, when the meeting is held for the purpose of seeking
506	or rendering legal advice.
507	(d)  Unit owner meetings.-
508	1.  There shall be an annual meeting of the unit owners
509	held at the location provided in the association bylaws and, if
510	the bylaws are silent as to the location, the meeting shall be
511	held within 45 miles of the condominium property or, if
512	facilities are available on the condominium property, the
513	meeting shall be held at such facilities. However, such distance
514	requirement does not apply to an association governing a
515	timeshare condominium. Unless the bylaws provide otherwise, a
516	vacancy on the board caused by the expiration of a director's
517	term shall be filled by electing a new board member, and the
518	election shall be by secret ballot; however, if the number of
519	vacancies equals or exceeds the number of candidates, no
520	election is required. Except in timeshare condominiums, the
521	terms of all members of the board shall expire at the first
522	annual meeting after July 1, 2010, and at each the annual
523	meeting thereafter and such board members may stand for
524	reelection unless otherwise permitted by the bylaws. In the
525	event that the bylaws permit staggered terms of no more than 2
526	years and upon approval of a majority of the total voting
527	interests, the association board members may serve 2-year
528	staggered terms. If no person is interested in or demonstrates
529	an intention to run for the position of a board member whose
530	term has expired according to the provisions of this
531	subparagraph, such board member whose term has expired shall be
532	automatically reappointed to the board of administration and
533	need not stand for reelection. In a condominium association of
534	more than 10 units, coowners of a unit may not serve as members
535	of the board of directors at the same time. Any unit owner
536	desiring to be a candidate for board membership shall comply
537	with subparagraph 3. A person who has been suspended or removed
538	by the division under this chapter, or who is delinquent in the
539	payment of any fee or assessment as provided in paragraph (n),
540	is not eligible for board membership. A person who has been
541	convicted of any felony in this state or in a United States
542	District or Territorial Court, or who has been convicted of any
543	offense in another jurisdiction that would be considered a
544	felony if committed in this state, is not eligible for board
545	membership unless such felon's civil rights have been restored
546	for a period of no less than 5 years as of the date on which
547	such person seeks election to the board. The validity of an
548	action by the board is not affected if it is later determined
549	that a member of the board is ineligible for board membership
550	due to having been convicted of a felony.
551	2.  The bylaws shall provide the method of calling meetings
552	of unit owners, including annual meetings. Written notice, which
553	notice must include an agenda, shall be mailed, hand delivered,
554	or electronically transmitted to each unit owner at least 14
555	days prior to the annual meeting and shall be posted in a
556	conspicuous place on the condominium property at least 14
557	continuous days preceding the annual meeting. Upon notice to the
558	unit owners, the board shall by duly adopted rule designate a
559	specific location on the condominium property or association
560	property upon which all notices of unit owner meetings shall be
561	posted; however, if there is no condominium property or
562	association property upon which notices can be posted, this
563	requirement does not apply. In lieu of or in addition to the
564	physical posting of notice of any meeting of the unit owners on
565	the condominium property, the association may, by reasonable
566	rule, adopt a procedure for conspicuously posting and repeatedly
567	broadcasting the notice and the agenda on a closed-circuit cable
568	television system serving the condominium association. However,
569	if broadcast notice is used in lieu of a notice posted
570	physically on the condominium property, the notice and agenda
571	must be broadcast at least four times every broadcast hour of
572	each day that a posted notice is otherwise required under this
573	section. When broadcast notice is provided, the notice and
574	agenda must be broadcast in a manner and for a sufficient
575	continuous length of time so as to allow an average reader to
576	observe the notice and read and comprehend the entire content of
577	the notice and the agenda. Unless a unit owner waives in writing
578	the right to receive notice of the annual meeting, such notice
579	shall be hand delivered, mailed, or electronically transmitted
580	to each unit owner. Notice for meetings and notice for all other
581	purposes shall be mailed to each unit owner at the address last
582	furnished to the association by the unit owner, or hand
583	delivered to each unit owner. However, if a unit is owned by
584	more than one person, the association shall provide notice, for
585	meetings and all other purposes, to that one address which the
586	developer initially identifies for that purpose and thereafter
587	as one or more of the owners of the unit shall so advise the
588	association in writing, or if no address is given or the owners
589	of the unit do not agree, to the address provided on the deed of
590	record. An officer of the association, or the manager or other
591	person providing notice of the association meeting, shall
592	provide an affidavit or United States Postal Service certificate
593	of mailing, to be included in the official records of the
594	association affirming that the notice was mailed or hand
595	delivered, in accordance with this provision.
596	3.  The members of the board shall be elected by written
597	ballot or voting machine. Proxies shall in no event be used in
598	electing the board, either in general elections or elections to
599	fill vacancies caused by recall, resignation, or otherwise,
600	unless otherwise provided in this chapter. Not less than 60 days
601	before a scheduled election, the association shall mail,
602	deliver, or electronically transmit, whether by separate
603	association mailing or included in another association mailing,
604	delivery, or transmission, including regularly published
605	newsletters, to each unit owner entitled to a vote, a first
606	notice of the date of the election along with a certification
607	form provided by the division attesting that he or she has read
608	and understands, to the best of his or her ability, the
609	governing documents of the association and the provisions of
610	this chapter and any applicable rules. Any unit owner or other
611	eligible person desiring to be a candidate for the board must
612	give written notice to the association not less than 40 days
613	before a scheduled election. Together with the written notice
614	and agenda as set forth in subparagraph 2., the association
615	shall mail, deliver, or electronically transmit a second notice
616	of the election to all unit owners entitled to vote therein,
617	together with a ballot which shall list all candidates. Upon
618	request of a candidate, the association shall include an
619	information sheet, no larger than 8 1/2 inches by 11 inches,
620	which must be furnished by the candidate not less than 35 days
621	before the election, along with the signed certification form
622	provided for in this subparagraph, to be included with the
623	mailing, delivery, or transmission of the ballot, with the costs
624	of mailing, delivery, or electronic transmission and copying to
625	be borne by the association. The association is not liable for
626	the contents of the information sheets prepared by the
627	candidates. In order to reduce costs, the association may print
628	or duplicate the information sheets on both sides of the paper.
629	The division shall by rule establish voting procedures
630	consistent with the provisions contained herein, including rules
631	establishing procedures for giving notice by electronic
632	transmission and rules providing for the secrecy of ballots.
633	Elections shall be decided by a plurality of those ballots cast.
634	There shall be no quorum requirement; however, at least 20
635	percent of the eligible voters must cast a ballot in order to
636	have a valid election of members of the board. No unit owner
637	shall permit any other person to vote his or her ballot, and any
638	such ballots improperly cast shall be deemed invalid, provided
639	any unit owner who violates this provision may be fined by the
640	association in accordance with s. 718.303. A unit owner who
641	needs assistance in casting the ballot for the reasons stated in
642	s. 101.051 may obtain assistance in casting the ballot. The
643	regular election shall occur on the date of the annual meeting.
644	The provisions of this subparagraph shall not apply to timeshare
645	condominium associations. Notwithstanding the provisions of this
646	subparagraph, an election is not required unless more candidates
647	file notices of intent to run or are nominated than board
648	vacancies exist.
649	4.  Any approval by unit owners called for by this chapter
650	or the applicable declaration or bylaws, including, but not
651	limited to, the approval requirement in s. 718.111(8), shall be
652	made at a duly noticed meeting of unit owners and shall be
653	subject to all requirements of this chapter or the applicable
654	condominium documents relating to unit owner decisionmaking,
655	except that unit owners may take action by written agreement,
656	without meetings, on matters for which action by written
657	agreement without meetings is expressly allowed by the
658	applicable bylaws or declaration or any statute that provides
659	for such action.
660	5.  Unit owners may waive notice of specific meetings if
661	allowed by the applicable bylaws or declaration or any statute.
662	If authorized by the bylaws, notice of meetings of the board of
663	administration, unit owner meetings, except unit owner meetings
664	called to recall board members under paragraph (j), and
665	committee meetings may be given by electronic transmission to
666	unit owners who consent to receive notice by electronic
667	transmission.
668	6.  Unit owners shall have the right to participate in
669	meetings of unit owners with reference to all designated agenda
670	items. However, the association may adopt reasonable rules
671	governing the frequency, duration, and manner of unit owner
672	participation.
673	7.  Any unit owner may tape record or videotape a meeting
674	of the unit owners subject to reasonable rules adopted by the
675	division.
676	8.  Unless otherwise provided in the bylaws, any vacancy
677	occurring on the board before the expiration of a term may be
678	filled by the affirmative vote of the majority of the remaining
679	directors, even if the remaining directors constitute less than
680	a quorum, or by the sole remaining director. In the alternative,
681	a board may hold an election to fill the vacancy, in which case
682	the election procedures must conform to the requirements of
683	subparagraph 3. unless the association governs 10 or fewer units
684	or less and has opted out of the statutory election process, in
685	which case the bylaws of the association control. Unless
686	otherwise provided in the bylaws, a board member appointed or
687	elected under this section shall fill the vacancy for the
688	unexpired term of the seat being filled. Filling vacancies
689	created by recall is governed by paragraph (j) and rules adopted
690	by the division.
691	9.  Notwithstanding subparagraphs (b)2. and (d)3., an
692	association of 10 or fewer units may, by the affirmative vote of
693	a majority of the total voting interests, provide for different
694	voting and election procedures in its bylaws, which vote may be
695	by a proxy specifically delineating the different voting and
696	election procedures. The different voting and election
697	procedures may provide for elections to be conducted by limited
698	or general proxy.
699	(h)  Amendment of bylaws.-
700	1.  The method by which the bylaws may be amended
701	consistent with the provisions of this chapter shall be stated.
702	If the bylaws fail to provide a method of amendment, the bylaws
703	may be amended if the amendment is approved by the owners of not
704	less than two-thirds of the voting interests.
705	2.  No bylaw shall be revised or amended by reference to
706	its title or number only. Proposals to amend existing bylaws
707	shall contain the full text of the bylaws to be amended; new
708	words shall be inserted in the text underlined, and words to be
709	deleted shall be lined through with hyphens. However, if the
710	proposed change is so extensive that this procedure would
711	hinder, rather than assist, the understanding of the proposed
712	amendment, it is not necessary to use underlining and hyphens as
713	indicators of words added or deleted, but, instead, a notation
714	must be inserted immediately preceding the proposed amendment in
715	substantially the following language: "Substantial rewording of
716	bylaw. See bylaw _____ for present text."
717	3.  Nonmaterial errors or omissions in the bylaw process
718	will not invalidate an otherwise properly promulgated amendment.
719	4.  If the bylaws provide for amendment by the board of
720	administration, no bylaw may be amended unless it is heard and
721	noticed at two consecutive meetings of the board of
722	administration that are at least 1 week apart.
723	(o)  Director or officer offenses.-A director or officer
724	charged by information or indictment with a felony theft or
725	embezzlement offense involving the association's funds or
726	property shall be removed from office, creating a vacancy in the
727	office to be filled according to law. While such director or
728	officer has such criminal charge pending in the state or federal
729	court system, he or she may not be appointed or elected to a
730	position as a director or officer. However, should the charges
731	be resolved without a finding of guilt, the director or officer
732	shall be reinstated for the remainder of his or her term of
733	office, if any.
734	(p)  Qualification of directors.-In addition to any other
735	requirement for office in statute, a person running for, seeking
736	appointment to, or serving as a director of the board must meet
737	the following qualifications:
738	1.  In a condominium association of 10 or more units, only
739	one individual coowner of a unit may serve on the board of
740	administration.
741	2.  No person may serve as a director of any condominium
742	association in the state if restricted from serving by action of
743	the division pursuant to s. 718.501(1)(d)6.
744	3.  A person who has been convicted of any felony in this
745	state or in a United States District or Territorial Court, or
746	who has been convicted of any offense in another jurisdiction
747	that would be considered a felony if committed in this state, is
748	not eligible for board membership unless such felon's civil
749	rights have been restored for a period of no less than 5 years
750	as of the date on which such person seeks election to the board.
751	4.  A director more than 90 days delinquent in the payment
752	of regular assessments shall be deemed to have abandoned his or
753	her office.
754	5.  Within 30 days after being elected or appointed to the
755	board of administration, a director must certify in writing to
756	the secretary of the association that he or she has read this
757	part and part III and the association's declaration of
758	condominium, articles of incorporation, bylaws, and current
759	written policies. The director shall further certify that he or
760	she will work to uphold such documents and policies to the best
761	of his or her ability and that he or she will faithfully
762	discharge his or her fiduciary responsibility to the
763	association's members. If the division finds that a director has
764	falsely certified that he or she has read the required statutes
765	and documents, the division shall order the director removed
766	from the board and shall order the director to reimburse the
767	division for the cost of prosecution and hearing.
768	6.  After turnover of the association pursuant to s.
769	718.301(2), a director must:
770	a.  If the unit is owned by an individual or individuals,
771	be one of those individuals.
772	b.  If the unit is owned by a trust, be an individual
773	qualified pursuant to s. 617.0802.
774
775	These qualifications shall operate on a continuing basis, and
776	upon the failure of a director at any time to meet a
777	qualification, the director shall be removed from office and
778	that office shall be deemed vacant. However, in the case of a
779	timeshare condominium association, the bylaws of the association
780	shall govern the terms, expiration of terms, and staggered terms
781	of board members, and the eligibility of coowners to serve on
782	the board of administration shall not be restricted except in
783	the manner provided in the bylaws of the timeshare condominium
784	association.
785	(q)  Borrowing.-The borrowing of funds or committing to a
786	line of credit by the board of administration shall be
787	considered a special assessment, and any meeting of the board of
788	administration to discuss such matters must be noticed as
789	provided in paragraph (c). The board may not borrow funds or
790	enter into a line of credit or borrow funds for any purpose
791	unless the specific use of the funds from the loan or line of
792	credit is set forth in the notice of meeting with the same
793	specificity as required for a special assessment or unless the
794	borrowing or line of credit has received the prior approval of
795	at least two-thirds of the voting interests of the association.
796	Section 6.  Paragraph (a) of subsection (5) of section
797	718.113, Florida Statutes, is amended to read:
798	718.113  Maintenance; limitation upon improvement; display
799	of flag; hurricane shutters; display of religious decorations.-
800	(5)  Each board of administration shall adopt hurricane
801	shutter specifications for each building within each condominium
802	operated by the association which shall include color, style,
803	and other factors deemed relevant by the board. All
804	specifications adopted by the board shall comply with the
805	applicable building code.
806	(a)  The board may, subject to the provisions of s.
807	718.3026, and the approval of a majority of voting interests of
808	the condominium, install hurricane shutters or hurricane
809	protection that complies with or exceeds the applicable building
810	code, or both, except that a vote of the owners is not required
811	if the maintenance, repair, and replacement of hurricane
812	shutters or other forms of hurricane protection are the
813	responsibility of the association pursuant to the declaration of
814	condominium. However, where hurricane protection or laminated
815	glass or window film architecturally designed to function as
816	hurricane protection which complies with or exceeds the current
817	applicable building code has been previously installed, the
818	board may not install hurricane shutters or other hurricane
819	protection. Code-compliant impact glass may be installed by the
820	association as hurricane protection if the area in which the
821	glass is to be installed is an area that is the responsibility
822	of the association. If a unit owner installed code-compliant
823	impact glass prior to the association voting to install such
824	glass, and such glass and the frame thereof complies with the
825	current applicable building codes and is otherwise in good
826	repair, the unit owner shall not be required to pay the unit
827	owner's pro rata share of the cost of installing code-compliant
828	impact glass to the condominium association, notwithstanding s.
829	718.116(9).
830	Section 7.  Subsections (11) and (12) are added to section
831	718.116, Florida Statutes, to read:
832	718.116  Assessments; liability; lien and priority;
833	interest; collection.-
834	(11)  During the pendency of any foreclosure action of a
835	condominium unit, if the unit is occupied by a tenant and the
836	unit owner is delinquent in the payment of regular assessments,
837	the association may demand that the tenant pay to the
838	association the future regular assessments related to the
839	condominium unit. The demand shall be continuing in nature, and
840	upon demand the tenant shall continue to pay the regular
841	assessments to the association until the association releases
842	the tenant or the tenant discontinues tenancy in the unit. The
843	association shall mail written notice to the unit owner of the
844	association's demand that the tenant pay regular assessments to
845	the association. The tenant shall not be liable for increases in
846	the amount of the regular assessments due unless the tenant was
847	reasonably notified of the increase prior to the day that the
848	rent is due. The tenant shall be given a credit against rents
849	due to the unit owner in the amount of assessments paid to the
850	association. The association shall, upon request, provide the
851	tenant with written receipts for payments made. The association
852	may issue notices under s. 83.56 and may sue for eviction under
853	ss. 83.59-83.625 as if the association were a landlord under
854	part II of chapter 83 should the tenant fail to pay an
855	assessment. However, the association shall not otherwise be
856	considered a landlord under chapter 83 and shall specifically
857	not have any duty under s. 83.51. The tenant shall not, by
858	virtue of payment of assessments, have any of the rights of a
859	unit owner to vote in any election or to examine the books and
860	records of the association. A court may supersede the effect of
861	this subsection by appointing a receiver.
862	(12)(a)  A notice of delinquency sent to a unit owner shall
863	provide an overall total of assessments claimed and shall
864	specify each assessment or charge that is claimed by the
865	association, listing for each assessment or charge the date of
866	the assessment or charge, the principal balance owed for the
867	assessment or charge, and affiliated late fees or collection
868	charges.
869	(b)  Costs to a unit owner secured by the association's
870	claim of lien with regard to collection efforts by management
871	companies or licensed managers as to any delinquent installment
872	of an assessment may not exceed $50. However, there shall be no
873	charge for the first notice of a delinquency to the unit owner.
874	Section 8.  Subsection (2) of section 718.1265, Florida
875	Statutes, is amended to read:
876	718.1265  Association emergency powers.-
877	(2)  The special powers authorized under subsection (1)
878	shall be limited to that time reasonably necessary to protect
879	the health, safety, and welfare of the association and the unit
880	owners and the unit owners' family members, tenants, guests,
881	agents, or invitees and shall be reasonably necessary to
882	mitigate further damage and make emergency repairs.
883	Additionally, unless 20 percent or more of the units are made
884	uninhabitable by the emergency, the special powers authorized
885	under subsection (1) may only be exercised during the term of
886	the Governor's executive order or proclamation declaring the
887	state of emergency in the locale in which the condominium is
888	located.
889	Section 9.  Subsection (1) of section 718.301, Florida
890	Statutes, is amended to read:
891	718.301  Transfer of association control; claims of defect
892	by association.-
893	(1)  When unit owners other than the developer own 15
894	percent or more of the units in a condominium that will be
895	operated ultimately by an association, the unit owners other
896	than the developer shall be entitled to elect no less than one-
897	third of the members of the board of administration of the
898	association. Unit owners other than the developer are entitled
899	to elect not less than a majority of the members of the board of
900	administration of an association:
901	(a)  Three years after 50 percent of the units that will be
902	operated ultimately by the association have been conveyed to
903	purchasers;
904	(b)  Three months after 90 percent of the units that will
905	be operated ultimately by the association have been conveyed to
906	purchasers;
907	(c)  When all the units that will be operated ultimately by
908	the association have been completed, some of them have been
909	conveyed to purchasers, and none of the others are being offered
910	for sale by the developer in the ordinary course of business;
911	(d)  When some of the units have been conveyed to
912	purchasers and none of the others are being constructed or
913	offered for sale by the developer in the ordinary course of
914	business;
915	(e)  When the developer files a petition seeking protection
916	in bankruptcy;
917	(f)  When a receiver for the developer is appointed by a
918	circuit court and is not discharged within 30 days after such
919	appointment, unless the court determines within 30 days after
920	appointment of the receiver that transfer of control would be
921	detrimental to the association or its members; or
922	(g)  Seven years after recordation of the declaration of
923	condominium; or, in the case of an association which may
924	ultimately operate more than one condominium, 7 years after
925	recordation of the declaration for the first condominium it
926	operates; or, in the case of an association operating a phase
927	condominium created pursuant to s. 718.403, 7 years after
928	recordation of the declaration creating the initial phase,
929
930	whichever occurs first. The developer is entitled to elect at
931	least one member of the board of administration of an
932	association as long as the developer holds for sale in the
933	ordinary course of business at least 5 percent, in condominiums
934	with fewer than 500 units, and 2 percent, in condominiums with
935	more than 500 units, of the units in a condominium operated by
936	the association. Following the time the developer relinquishes
937	control of the association, the developer may exercise the right
938	to vote any developer-owned units in the same manner as any
939	other unit owner except for purposes of reacquiring control of
940	the association or selecting the majority members of the board
941	of administration.
942	Section 10.  Section 718.303, Florida Statutes, is amended
943	to read:
944	718.303  Obligations of owners and occupants; waiver; levy
945	of fines, suspension of use or voting rights, and other
946	nonexclusive remedies in law or equity fine against unit by an
947	association.-
948	(1)  Each unit owner, each tenant and other invitee, and
949	each association shall be governed by, and shall comply with the
950	provisions of, this chapter, the declaration, the documents
951	creating the association, and the association bylaws and the
952	provisions thereof shall be deemed expressly incorporated into
953	any lease of a unit. Actions for damages or for injunctive
954	relief, or both, for failure to comply with these provisions may
955	be brought by the association or by a unit owner against:
956	(a)  The association.
957	(b)  A unit owner.
958	(c)  Directors designated by the developer, for actions
959	taken by them prior to the time control of the association is
960	assumed by unit owners other than the developer.
961	(d)  Any director who willfully and knowingly fails to
962	comply with these provisions.
963	(e)  Any tenant leasing a unit, and any other invitee
964	occupying a unit.
965
966	The prevailing party in any such action or in any action in
967	which the purchaser claims a right of voidability based upon
968	contractual provisions as required in s. 718.503(1)(a) is
969	entitled to recover reasonable attorney's fees. A unit owner
970	prevailing in an action between the association and the unit
971	owner under this section, in addition to recovering his or her
972	reasonable attorney's fees, may recover additional amounts as
973	determined by the court to be necessary to reimburse the unit
974	owner for his or her share of assessments levied by the
975	association to fund its expenses of the litigation. This relief
976	does not exclude other remedies provided by law. Actions arising
977	under this subsection shall not be deemed to be actions for
978	specific performance.
979	(2)  A provision of this chapter may not be waived if the
980	waiver would adversely affect the rights of a unit owner or the
981	purpose of the provision, except that unit owners or members of
982	a board of administration may waive notice of specific meetings
983	in writing if provided by the bylaws. Any instruction given in
984	writing by a unit owner or purchaser to an escrow agent may be
985	relied upon by an escrow agent, whether or not such instruction
986	and the payment of funds thereunder might constitute a waiver of
987	any provision of this chapter.
988	(3)  If a unit owner is delinquent for more than 90 days in
989	the payment of regular or special assessments or the declaration
990	or bylaws so provide, the association may suspend, for a
991	reasonable time, the right of a unit owner or a unit's occupant,
992	licensee, or invitee to use common elements, common facilities,
993	or any other association property. This subsection does not
994	apply to limited common elements intended to be used only by
995	that unit, common elements that must be used to access the unit,
996	utility services provided to the unit, parking spaces, or
997	elevators. The association may also levy reasonable fines
998	against a unit for the failure of the owner of the unit, or its
999	occupant, licensee, or invitee, to comply with any provision of
1000	the declaration, the association bylaws, or reasonable rules of
1001	the association. No fine will become a lien against a unit. A No
1002	fine may not exceed $100 per violation. However, a fine may be
1003	levied on the basis of each day of a continuing violation, with
1004	a single notice and opportunity for hearing, provided that no
1005	such fine shall in the aggregate exceed $1,000. A No fine may
1006	not be levied and a suspension may not be imposed unless the
1007	association first gives except after giving reasonable notice
1008	and opportunity for a hearing to the unit owner and, if
1009	applicable, its occupant, licensee, or invitee. The hearing must
1010	be held before a committee of other unit owners who are neither
1011	board members nor persons residing in a board member's
1012	household. If the committee does not agree with the fine or
1013	suspension, the fine or suspension may not be levied or imposed.
1014	The provisions of this subsection do not apply to unoccupied
1015	units.
1016	(4)  The notice and hearing requirements of subsection (3)
1017	do not apply to the imposition of suspensions or fines against a
1018	unit owner or a unit's occupant, licensee, or invitee because of
1019	the failure to pay any amounts due the association. If such a
1020	fine or suspension is imposed, the association must levy the
1021	fine or impose a reasonable suspension at a properly noticed
1022	board meeting, and after the imposition of such fine or
1023	suspension, the association must notify the unit owner and, if
1024	applicable, the unit's occupant, licensee, or invitee by mail or
1025	hand delivery.
1026	Section 11.  Subsection (1) of section 718.501, Florida
1027	Statutes, is amended, and subsection (3) is added to that
1028	section, to read:
1029	718.501  Authority, responsibility, and duties of Division
1030	of Florida Condominiums, Timeshares, and Mobile Homes.-
1031	(1)  The Division of Florida Condominiums, Timeshares, and
1032	Mobile Homes of the Department of Business and Professional
1033	Regulation, referred to as the "division" in this part, has the
1034	power to enforce and ensure compliance with the provisions of
1035	this chapter and rules relating to the development,
1036	construction, sale, lease, ownership, operation, and management
1037	of residential condominium units. In performing its duties, the
1038	division has complete jurisdiction to investigate complaints and
1039	enforce compliance with the provisions of this chapter with
1040	respect to associations that are still under developer control
1041	and complaints against developers involving improper turnover or
1042	failure to turnover, pursuant to s. 718.301. However, after
1043	turnover has occurred, the division shall only have jurisdiction
1044	to investigate complaints related to financial issues, failure
1045	to maintain common elements, elections, and unit owner access to
1046	association records pursuant to s. 718.111(12).
1047	(a)1.  The division may make necessary public or private
1048	investigations within or outside this state to determine whether
1049	any person has violated this chapter or any rule or order
1050	hereunder, to aid in the enforcement of this chapter, or to aid
1051	in the adoption of rules or forms hereunder.
1052	2.  The division may submit any official written report,
1053	worksheet, or other related paper, or a duly certified copy
1054	thereof, compiled, prepared, drafted, or otherwise made by and
1055	duly authenticated by a financial examiner or analyst to be
1056	admitted as competent evidence in any hearing in which the
1057	financial examiner or analyst is available for cross-examination
1058	and attests under oath that such documents were prepared as a
1059	result of an examination or inspection conducted pursuant to
1060	this chapter.
1061	(b)  The division may require or permit any person to file
1062	a statement in writing, under oath or otherwise, as the division
1063	determines, as to the facts and circumstances concerning a
1064	matter to be investigated.
1065	(c)  For the purpose of any investigation under this
1066	chapter, the division director or any officer or employee
1067	designated by the division director may administer oaths or
1068	affirmations, subpoena witnesses and compel their attendance,
1069	take evidence, and require the production of any matter which is
1070	relevant to the investigation, including the existence,
1071	description, nature, custody, condition, and location of any
1072	books, documents, or other tangible things and the identity and
1073	location of persons having knowledge of relevant facts or any
1074	other matter reasonably calculated to lead to the discovery of
1075	material evidence. Upon the failure by a person to obey a
1076	subpoena or to answer questions propounded by the investigating
1077	officer and upon reasonable notice to all persons affected
1078	thereby, the division may apply to the circuit court for an
1079	order compelling compliance.
1080	(d)  Notwithstanding any remedies available to unit owners
1081	and associations, if the division has reasonable cause to
1082	believe that a violation of any provision of this chapter or
1083	related rule has occurred, the division may institute
1084	enforcement proceedings in its own name against any developer,
1085	association, officer, or member of the board of administration,
1086	or its assignees or agents, as follows:
1087	1.  The division may permit a person whose conduct or
1088	actions may be under investigation to waive formal proceedings
1089	and enter into a consent proceeding whereby orders, rules, or
1090	letters of censure or warning, whether formal or informal, may
1091	be entered against the person.
1092	2.  The division may issue an order requiring the
1093	developer, association, developer-designated officer, or
1094	developer-designated member of the board of administration,
1095	developer-designated assignees or agents, community association
1096	manager, or community association management firm to cease and
1097	desist from the unlawful practice and take such affirmative
1098	action as in the judgment of the division will carry out the
1099	purposes of this chapter. If the division finds that a
1100	developer, association, officer, or member of the board of
1101	administration, or its assignees or agents, is violating or is
1102	about to violate any provision of this chapter, any rule adopted
1103	or order issued by the division, or any written agreement
1104	entered into with the division, and presents an immediate danger
1105	to the public requiring an immediate final order, it may issue
1106	an emergency cease and desist order reciting with particularity
1107	the facts underlying such findings. The emergency cease and
1108	desist order is effective for 90 days. If the division begins
1109	nonemergency cease and desist proceedings, the emergency cease
1110	and desist order remains effective until the conclusion of the
1111	proceedings under ss. 120.569 and 120.57.
1112	3.  If a developer fails to pay any restitution determined
1113	by the division to be owed, plus any accrued interest at the
1114	highest rate permitted by law, within 30 days after expiration
1115	of any appellate time period of a final order requiring payment
1116	of restitution or the conclusion of any appeal thereof,
1117	whichever is later, the division shall bring an action in
1118	circuit or county court on behalf of any association, class of
1119	unit owners, lessees, or purchasers for restitution, declaratory
1120	relief, injunctive relief, or any other available remedy. The
1121	division may also temporarily revoke its acceptance of the
1122	filing for the developer to which the restitution relates until
1123	payment of restitution is made.
1124	4.  The division may petition the court for the appointment
1125	of a receiver or conservator. If appointed, the receiver or
1126	conservator may take action to implement the court order to
1127	ensure the performance of the order and to remedy any breach
1128	thereof. In addition to all other means provided by law for the
1129	enforcement of an injunction or temporary restraining order, the
1130	circuit court may impound or sequester the property of a party
1131	defendant, including books, papers, documents, and related
1132	records, and allow the examination and use of the property by
1133	the division and a court-appointed receiver or conservator.
1134	5.  The division may apply to the circuit court for an
1135	order of restitution whereby the defendant in an action brought
1136	pursuant to subparagraph 4. shall be ordered to make restitution
1137	of those sums shown by the division to have been obtained by the
1138	defendant in violation of this chapter. Such restitution shall,
1139	at the option of the court, be payable to the conservator or
1140	receiver appointed pursuant to subparagraph 4. or directly to
1141	the persons whose funds or assets were obtained in violation of
1142	this chapter.
1143	6.  The division may impose a civil penalty against a
1144	developer or association, or its assignee or agent, for any
1145	violation of this chapter or a rule adopted under this chapter.
1146	The division may impose a civil penalty individually against any
1147	officer or board member who willfully and knowingly violates a
1148	provision of this chapter, adopted rule, or a final order of the
1149	division; may order the removal of such individual as an officer
1150	or from the board of administration or as an officer of the
1151	association; and may prohibit such individual from serving as an
1152	officer or on the board of a community association for a period
1153	of time. The term "willfully and knowingly" means that the
1154	division informed the officer or board member that his or her
1155	action or intended action violates this chapter, a rule adopted
1156	under this chapter, or a final order of the division and that
1157	the officer or board member refused to comply with the
1158	requirements of this chapter, a rule adopted under this chapter,
1159	or a final order of the division. The division, prior to
1160	initiating formal agency action under chapter 120, shall afford
1161	the officer or board member an opportunity to voluntarily comply
1162	with this chapter, a rule adopted under this chapter, or a final
1163	order of the division. An officer or board member who complies
1164	within 10 days is not subject to a civil penalty. A penalty may
1165	be imposed on the basis of each day of continuing violation, but
1166	in no event shall the penalty for any offense exceed $5,000. By
1167	January 1, 1998, the division shall adopt, by rule, penalty
1168	guidelines applicable to possible violations or to categories of
1169	violations of this chapter or rules adopted by the division. The
1170	guidelines must specify a meaningful range of civil penalties
1171	for each such violation of the statute and rules and must be
1172	based upon the harm caused by the violation, the repetition of
1173	the violation, and upon such other factors deemed relevant by
1174	the division. For example, the division may consider whether the
1175	violations were committed by a developer or owner-controlled
1176	association, the size of the association, and other factors. The
1177	guidelines must designate the possible mitigating or aggravating
1178	circumstances that justify a departure from the range of
1179	penalties provided by the rules. It is the legislative intent
1180	that minor violations be distinguished from those which endanger
1181	the health, safety, or welfare of the condominium residents or
1182	other persons and that such guidelines provide reasonable and
1183	meaningful notice to the public of likely penalties that may be
1184	imposed for proscribed conduct. This subsection does not limit
1185	the ability of the division to informally dispose of
1186	administrative actions or complaints by stipulation, agreed
1187	settlement, or consent order. All amounts collected shall be
1188	deposited with the Chief Financial Officer to the credit of the
1189	Division of Florida Condominiums, Timeshares, and Mobile Homes
1190	Trust Fund. If a developer fails to pay the civil penalty and
1191	the amount deemed to be owed to the association, the division
1192	shall issue an order directing that such developer cease and
1193	desist from further operation until such time as the civil
1194	penalty is paid or may pursue enforcement of the penalty in a
1195	court of competent jurisdiction. If an association fails to pay
1196	the civil penalty, the division shall pursue enforcement in a
1197	court of competent jurisdiction, and the order imposing the
1198	civil penalty or the cease and desist order will not become
1199	effective until 20 days after the date of such order. Any action
1200	commenced by the division shall be brought in the county in
1201	which the division has its executive offices or in the county
1202	where the violation occurred.
1203	7.  If a unit owner presents the division with proof that
1204	the unit owner has requested access to official records in
1205	writing by certified mail, and that after 10 days the unit owner
1206	again made the same request for access to official records in
1207	writing by certified mail, and that more than 10 days has
1208	elapsed since the second request and the association has still
1209	failed or refused to provide access to official records as
1210	required by this chapter, the division shall issue a subpoena
1211	requiring production of the requested records where the records
1212	are kept pursuant to s. 718.112.
1213	8.  In addition to subparagraph 6., the division may seek
1214	the imposition of a civil penalty through the circuit court for
1215	any violation for which the division may issue a notice to show
1216	cause under paragraph (r). The civil penalty shall be at least
1217	$500 but no more than $5,000 for each violation. The court may
1218	also award to the prevailing party court costs and reasonable
1219	attorney's fees and, if the division prevails, may also award
1220	reasonable costs of investigation.
1221	9.  Notwithstanding subparagraph 6., when the division
1222	finds that an officer or director has intentionally falsified
1223	association records with the intent to conceal material facts
1224	from the division, the board, or unit owners, the division shall
1225	prohibit the officer or director from acting as an officer or
1226	director of any condominium or cooperative association for at
1227	least 1 year.
1228	10.  When the division finds that any person has derived an
1229	improper personal benefit from a condominium association, the
1230	division shall order the person to pay restitution to the
1231	association and shall order the person to pay to the division
1232	the costs of investigation and prosecution.
1233	(e)  The division may prepare and disseminate a prospectus
1234	and other information to assist prospective owners, purchasers,
1235	lessees, and developers of residential condominiums in assessing
1236	the rights, privileges, and duties pertaining thereto.
1237	(f)  The division has authority to adopt rules pursuant to
1238	ss. 120.536(1) and 120.54 to implement and enforce the
1239	provisions of this chapter.
1240	(g)  The division shall establish procedures for providing
1241	notice to an association and the developer during the period
1242	where the developer controls the association when the division
1243	is considering the issuance of a declaratory statement with
1244	respect to the declaration of condominium or any related
1245	document governing in such condominium community.
1246	(h)  The division shall furnish each association which pays
1247	the fees required by paragraph (2)(a) a copy of this act,
1248	subsequent changes to this act on an annual basis, an amended
1249	version of this act as it becomes available from the Secretary
1250	of State's office on a biennial basis, and the rules adopted
1251	thereto on an annual basis.
1252	(i)  The division shall annually provide each association
1253	with a summary of declaratory statements and formal legal
1254	opinions relating to the operations of condominiums which were
1255	rendered by the division during the previous year.
1256	(j)  The division shall provide training and educational
1257	programs for condominium association board members and unit
1258	owners. The training may, in the division's discretion, include
1259	web-based electronic media, and live training and seminars in
1260	various locations throughout the state. The division shall have
1261	the authority to review and approve education and training
1262	programs for board members and unit owners offered by providers
1263	and shall maintain a current list of approved programs and
1264	providers and shall make such list available to board members
1265	and unit owners in a reasonable and cost-effective manner.
1266	(k)  The division shall maintain a toll-free telephone
1267	number accessible to condominium unit owners.
1268	(l)  The division shall develop a program to certify both
1269	volunteer and paid mediators to provide mediation of condominium
1270	disputes. The division shall provide, upon request, a list of
1271	such mediators to any association, unit owner, or other
1272	participant in arbitration proceedings under s. 718.1255
1273	requesting a copy of the list. The division shall include on the
1274	list of volunteer mediators only the names of persons who have
1275	received at least 20 hours of training in mediation techniques
1276	or who have mediated at least 20 disputes. In order to become
1277	initially certified by the division, paid mediators must be
1278	certified by the Supreme Court to mediate court cases in county
1279	or circuit courts. However, the division may adopt, by rule,
1280	additional factors for the certification of paid mediators,
1281	which factors must be related to experience, education, or
1282	background. Any person initially certified as a paid mediator by
1283	the division must, in order to continue to be certified, comply
1284	with the factors or requirements imposed by rules adopted by the
1285	division.
1286	(m)  When a complaint is made, the division shall conduct
1287	its inquiry with due regard to the interests of the affected
1288	parties. Within 30 days after receipt of a complaint, the
1289	division shall acknowledge the complaint in writing and notify
1290	the complainant whether the complaint is within the jurisdiction
1291	of the division and whether additional information is needed by
1292	the division from the complainant. The division shall conduct
1293	its investigation and shall, within 90 days after receipt of the
1294	original complaint or of timely requested additional
1295	information, take action upon the complaint. However, the
1296	failure to complete the investigation within 90 days does not
1297	prevent the division from continuing the investigation,
1298	accepting or considering evidence obtained or received after 90
1299	days, or taking administrative action if reasonable cause exists
1300	to believe that a violation of this chapter or a rule of the
1301	division has occurred. If an investigation is not completed
1302	within the time limits established in this paragraph, the
1303	division shall, on a monthly basis, notify the complainant in
1304	writing of the status of the investigation. When reporting its
1305	action to the complainant, the division shall inform the
1306	complainant of any right to a hearing pursuant to ss. 120.569
1307	and 120.57.
1308	(n)  Condominium association directors, officers, and
1309	employees; condominium developers; community association
1310	managers; and community association management firms have an
1311	ongoing duty to reasonably cooperate with the division in any
1312	investigation pursuant to this section. The division shall refer
1313	to local law enforcement authorities any person whom the
1314	division believes has altered, destroyed, concealed, or removed
1315	any record, document, or thing required to be kept or maintained
1316	by this chapter with the purpose to impair its verity or
1317	availability in the department's investigation.
1318	(o)  The division may:
1319	1.  Contract with agencies in this state or other
1320	jurisdictions to perform investigative functions; or
1321	2.  Accept grants-in-aid from any source.
1322	(p)  The division shall cooperate with similar agencies in
1323	other jurisdictions to establish uniform filing procedures and
1324	forms, public offering statements, advertising standards, and
1325	rules and common administrative practices.
1326	(q)  The division shall consider notice to a developer to
1327	be complete when it is delivered to the developer's address
1328	currently on file with the division.
1329	(r)  In addition to its enforcement authority, the division
1330	may issue a notice to show cause, which shall provide for a
1331	hearing, upon written request, in accordance with chapter 120.
1332	(s)  The division shall submit to the Governor, the
1333	President of the Senate, the Speaker of the House of
1334	Representatives, and the chairs of the legislative
1335	appropriations committees an annual report that includes, but
1336	need not be limited to, the number of training programs provided
1337	for condominium association board members and unit owners, the
1338	number of complaints received by type, the number and percent of
1339	complaints acknowledged in writing within 30 days and the number
1340	and percent of investigations acted upon within 90 days in
1341	accordance with paragraph (m), and the number of investigations
1342	exceeding the 90-day requirement. The annual report shall also
1343	include an evaluation of the division's core business processes
1344	and make recommendations for improvements, including statutory
1345	changes. The report shall be submitted by September 30 following
1346	the end of the fiscal year.
1347	(3)  The division shall create a booklet of the laws that a
1348	director must read as required by s. 718.112(2)(p)5. The booklet
1349	shall be available for free download from the division's
1350	website. The division may provide a printed version to directors
1351	for free or for a cost not to exceed the division's actual cost
1352	of production and mailing.
1353	Section 12.  Subsection (9) of section 718.5012, Florida
1354	Statutes, is amended to read:
1355	718.5012  Ombudsman; powers and duties.-The ombudsman shall
1356	have the powers that are necessary to carry out the duties of
1357	his or her office, including the following specific powers:
1358	(9)  To assist with the resolution of disputes between unit
1359	owners and the association or between unit owners when the
1360	dispute is not within the jurisdiction of the division to
1361	resolve or the division has declined to resolve a dispute.
1362	Section 13.  Subsection (1) of section 718.50151, Florida
1363	Statutes, is amended to read:
1364	718.50151  Community Association Living Study Council;
1365	membership functions.-
1366	(1)  There is created the Community Association Living
1367	Study Council. The council shall consist of seven appointed
1368	members. Two members shall be appointed by the President of the
1369	Senate, two members shall be appointed by the Speaker of the
1370	House of Representatives, and three members shall be appointed
1371	by the Governor. One member that is appointed by the Governor
1372	may represent timeshare condominiums. The council shall be
1373	created as of October 1 every 5 years, commencing October 1,
1374	2008, and shall exist for a 6-month term. The director of the
1375	division shall appoint an ex officio nonvoting member. The
1376	Legislature intends that the persons appointed represent a
1377	cross-section of persons experienced interested in community
1378	association issues. The council shall be located within the
1379	division for administrative purposes. Members of the council
1380	shall serve without compensation but are entitled to receive per
1381	diem and travel expenses pursuant to s. 112.061 while on
1382	official business.
1383	Section 14.  Subsections (11) and (26) of section 719.103,
1384	Florida Statutes, are amended to read:
1385	719.103  Definitions.-As used in this chapter:
1386	(11)  "Conspicuous type" means bold type in capital letters
1387	no smaller than the largest type, exclusive of headings, on the
1388	page on which it appears and, in all cases, at least 10-point
1389	type. When conspicuous type is required, it must be separated on
1390	all sides from other type and print. Conspicuous type may be
1391	used in a contract for purchase and sale of a unit, a lease of a
1392	unit for more than 5 years, or a prospectus or offering circular
1393	only when required by law.
1394	(26)  "Unit owner," or "owner of a unit," or "shareholder"
1395	means the person holding a share in the cooperative association
1396	and a lease or other muniment of title or possession of a unit
1397	that is granted by the association as the owner of the
1398	cooperative property.
1399	Section 15.  Section 719.104, Florida Statutes, is amended
1400	to read:
1401	719.104  The association Cooperatives; access to units;
1402	records; financial reports; assessments; purchase of leases.-
1403	(1)  RIGHT OF ACCESS TO UNITS.-The association has the
1404	irrevocable right of access to each unit from time to time
1405	during reasonable hours when necessary for the maintenance,
1406	repair, or replacement of any structural components of the
1407	building or of any mechanical, electrical, or plumbing elements
1408	necessary to prevent damage to the building or to another unit.
1409	Except in cases of emergency, the association must give the
1410	shareholder advance written notice of not less than 24 hours of
1411	its intent to access the unit and such access must be by two
1412	persons, one of whom must be a member of the board of
1413	administration or a manager or employee of the association and
1414	one of whom must be an authorized representative of the
1415	association. The identity of the authorized representative
1416	seeking access to the unit must be provided to the unit owner
1417	prior to entering the unit.
1418	(2)  OFFICIAL RECORDS.-
1419	(a)  From the inception of the association, the association
1420	shall maintain a copy of each of the following, where
1421	applicable, which shall constitute the official records of the
1422	association:
1423	1.  The plans, permits, warranties, and other items
1424	provided by the developer pursuant to s. 719.301(4).
1425	2.  A photocopy of the cooperative documents.
1426	3.  A copy of the current rules of the association.
1427	4.  A book or books containing the minutes of all meetings
1428	of the association, of the board of directors, and of the
1429	shareholders unit owners, which minutes shall be retained for a
1430	period of not less than 7 years.
1431	5.  A current roster of all shareholders unit owners and
1432	their mailing addresses, unit identifications, voting
1433	certifications, and, if known, telephone numbers. The
1434	association shall also maintain the electronic mailing addresses
1435	and the numbers designated by shareholders unit owners for
1436	receiving notice sent by electronic transmission of those
1437	shareholders unit owners consenting to receive notice by
1438	electronic transmission. The electronic mailing addresses and
1439	numbers provided by shareholders unit owners to receive notice
1440	by electronic transmission shall be removed from association
1441	records when consent to receive notice by electronic
1442	transmission is revoked. However, the association is not liable
1443	for an erroneous disclosure of the electronic mail address or
1444	the number for receiving electronic transmission of notices.
1445	6.  All current insurance policies of the association.
1446	7.  A current copy of any management agreement, lease, or
1447	other contract to which the association is a party or under
1448	which the association or the shareholders unit owners have an
1449	obligation or responsibility.
1450	8.  Bills of sale or transfer for all property owned by the
1451	association.
1452	9.  Accounting records for the association and separate
1453	accounting records for each unit it operates, according to good
1454	accounting practices. Any person who knowingly or intentionally
1455	defaces or destroys accounting records required to be maintained
1456	by this chapter, or who knowingly or intentionally fails to
1457	create or maintain accounting records required to be maintained
1458	by this chapter, is personally subject to a civil penalty
1459	pursuant to s. 719.501(1)(d). All accounting records shall be
1460	maintained for a period of not less than 7 years. The accounting
1461	records shall include, but not be limited to:
1462	a.  Accurate, itemized, and detailed records of all
1463	receipts and expenditures.
1464	b.  A current account and a monthly, bimonthly, or
1465	quarterly statement of the account for each unit designating the
1466	name of the shareholder unit owner, the due date and amount of
1467	each assessment, the amount paid upon the account, and the
1468	balance due.
1469	c.  All audits, reviews, accounting statements, and
1470	financial reports of the association.
1471	d.  All contracts for work to be performed. Bids for work
1472	to be performed shall also be considered official records and
1473	shall be maintained for a period of 1 year.
1474	10.  Ballots, sign-in sheets, voting proxies, and all other
1475	papers relating to voting by shareholders unit owners, which
1476	shall be maintained for a period of 1 year after the date of the
1477	election, vote, or meeting to which the document relates.
1478	11.  All rental records where the association is acting as
1479	agent for the rental of units.
1480	12.  A copy of the current question and answer sheet as
1481	described in s. 719.504.
1482	13.  All other records of the association not specifically
1483	included in the foregoing which are related to the operation of
1484	the association.
1485	(b)  The official records of the association shall be
1486	maintained within the state for at least 7 years. The records of
1487	the association shall be made available to a shareholder unit
1488	owner within 5 working days after receipt of written request by
1489	the board or its designee. This paragraph may be complied with
1490	by having a copy of the official records available for
1491	inspection or copying on the cooperative property.
1492	(c)  The official records of the association shall be open
1493	to inspection by any association member or the authorized
1494	representative of such member at all reasonable times. Failure
1495	to permit inspection of the association records as provided
1496	herein entitles any person prevailing in an enforcement action
1497	to recover reasonable attorney's fees from the person in control
1498	of the records who, directly or indirectly, knowingly denies
1499	access to the records for inspection. The right to inspect the
1500	records includes the right to make or obtain copies, at the
1501	reasonable expense, if any, of the association member. The
1502	association may adopt reasonable rules regarding the frequency,
1503	time, location, notice, and manner of record inspections and
1504	copying. The failure of an association to provide the records
1505	within 10 working days after receipt of a written request
1506	creates a rebuttable presumption that the association willfully
1507	failed to comply with this paragraph. A shareholder unit owner
1508	who is denied access to official records is entitled to the
1509	actual damages or minimum damages for the association's willful
1510	failure to comply with this paragraph. The minimum damages shall
1511	be $50 per calendar day up to 10 days, the calculation to begin
1512	on the 11th day after receipt of the written request. Any person
1513	who knowingly or intentionally defaces or destroys records that
1514	are required by this chapter, or knowingly or intentionally
1515	fails to create or maintain records that are required by this
1516	chapter, is personally subject to a civil penalty pursuant to s.
1517	719.501(1)(d). The association shall maintain an adequate number
1518	of copies of the cooperative documents declaration, articles of
1519	incorporation, bylaws, and rules, and all amendments to each of
1520	the foregoing, as well as the question and answer sheet provided
1521	for in s. 719.504, on the cooperative property to ensure their
1522	availability to shareholders unit owners and prospective
1523	purchasers, and may charge its actual costs for preparing and
1524	furnishing these documents to those requesting the same.
1525	Notwithstanding the provisions of this paragraph, the following
1526	records shall not be accessible to shareholders unit owners:
1527	1.  A record that was prepared by an association attorney
1528	or prepared at the attorney's express direction; that reflects a
1529	mental impression, conclusion, litigation strategy, or legal
1530	theory of the attorney or the association; or that was prepared
1531	exclusively for civil or criminal litigation or for adversarial
1532	administrative proceedings or in anticipation of imminent civil
1533	or criminal litigation or imminent adversarial administrative
1534	proceedings, until the conclusion of the litigation or
1535	adversarial administrative proceedings.
1536	2.  Information obtained by an association in connection
1537	with the approval of the lease, sale, or other transfer of a
1538	unit.
1539	3.  Medical records of shareholders unit owners.
1540	4.  Social security numbers, driver's license numbers,
1541	credit card numbers, and other personal identifying information
1542	of any person.
1543	(d)  The association or its authorized agent shall not be
1544	required to provide a prospective purchaser or lienholder with
1545	information about the cooperative or association other than the
1546	information or documents required by this chapter to be made
1547	available or disclosed. The association or its authorized agent
1548	shall be entitled to charge a reasonable fee to the prospective
1549	purchaser, lienholder, or the current shareholder unit owner for
1550	its time in providing good faith responses to requests for
1551	information by or on behalf of a prospective purchaser or
1552	lienholder, other than that required by law, provided that such
1553	fee shall not exceed $150 plus the reasonable cost of
1554	photocopying and any attorney's fees incurred by the association
1555	in connection with the association's response. An association
1556	and its authorized agent are not liable for providing such
1557	information in good faith pursuant to a written request if the
1558	person providing the information includes a written statement in
1559	substantially the following form: "The responses herein are made
1560	in good faith and to the best of my ability as to their
1561	accuracy."
1562	(3)  INSURANCE.-The association shall use its best efforts
1563	to obtain and maintain adequate insurance to protect the
1564	association property. The association may also obtain and
1565	maintain liability insurance for directors and officers,
1566	insurance for the benefit of association employees, and flood
1567	insurance. A copy of each policy of insurance in effect shall be
1568	made available for inspection by unit owners at reasonable
1569	times.
1570	(a)  Windstorm insurance coverage for a group of no fewer
1571	than three communities created and operating under chapter 718,
1572	this chapter, chapter 720, or chapter 721 may be obtained and
1573	maintained for the communities if the insurance coverage is
1574	sufficient to cover an amount equal to the probable maximum loss
1575	for the communities for a 250-year windstorm event. Such
1576	probable maximum loss must be determined through the use of a
1577	competent model that has been accepted by the Florida Commission
1578	on Hurricane Loss Projection Methodology. Such insurance
1579	coverage is deemed adequate windstorm insurance for the purposes
1580	of this section.
1581	(b)  An association or group of associations may self-
1582	insure against claims against the association, the association
1583	property, and the cooperative property required to be insured by
1584	an association, upon compliance with the applicable provisions
1585	of ss. 624.460-624.488, which shall be considered adequate
1586	insurance for purposes of this section.
1587	(4)  FINANCIAL REPORTING REPORT.-Within 90 days after the
1588	end of the fiscal year, or annually by a date provided in the
1589	bylaws, the association shall prepare and complete, or by
1590	contract have prepared and completed, a financial report for the
1591	preceding fiscal year. Within 21 days after the final financial
1592	report is completed by the association or received from the
1593	third party, but not later than 120 days after the end of the
1594	fiscal year or other date as provided in the bylaws, the
1595	association shall mail to each shareholder at the address last
1596	furnished to the association by the shareholder, or hand deliver
1597	to each shareholder, a copy of the financial report or a notice
1598	that a copy of the financial report will be mailed or hand
1599	delivered to the shareholder, without charge, upon receipt of a
1600	written request from the shareholder. The division shall adopt
1601	rules setting forth uniform accounting principles and standards
1602	to be used by all associations. The rules shall include, but not
1603	be limited to, uniform accounting principles and standards for
1604	stating the disclosure of at least a summary of the reserves,
1605	including information as to whether such reserves are being
1606	funded at a level sufficient to prevent the need for a special
1607	assessment and, if not, the amount of assessments necessary to
1608	bring the reserves up to the level necessary to avoid a special
1609	assessment. The person preparing the financial reports shall be
1610	entitled to rely on an inspection report prepared for or
1611	provided to the association to meet the fiscal and fiduciary
1612	standards of this chapter. In adopting such rules, the division
1613	shall consider the number of members and annual revenues of an
1614	association. Financial reports shall be prepared as follows:
1615	(a)  An association that meets the criteria of this
1616	paragraph shall prepare or cause to be prepared a complete set
1617	of financial statements in accordance with generally accepted
1618	accounting principles. The financial statements shall be based
1619	upon the association's total annual revenues, as follows:
1620	1.  An association with total annual revenues of $100,000
1621	or more, but less than $200,000, shall prepare compiled
1622	financial statements.
1623	2.  An association with total annual revenues of at least
1624	$200,000, but less than $400,000, shall prepare reviewed
1625	financial statements.
1626	3.  An association with total annual revenues of $400,000
1627	or more shall prepare audited financial statements.
1628	(b)1.  An association with total annual revenues of less
1629	than $100,000 shall prepare a report of cash receipts and
1630	expenditures.
1631	2.  An association which operates fewer than 50 units,
1632	regardless of the association's annual revenues, shall prepare a
1633	report of cash receipts and expenditures in lieu of financial
1634	statements required by paragraph (a).
1635	3.  A report of cash receipts and disbursements must
1636	disclose the amount of receipts by accounts and receipt
1637	classifications and the amount of expenses by accounts and
1638	expense classifications, including, but not limited to, the
1639	following, as applicable: costs for security, professional and
1640	management fees and expenses, taxes, costs for recreation
1641	facilities, expenses for refuse collection and utility services,
1642	expenses for lawn care, costs for building maintenance and
1643	repair, insurance costs, administration and salary expenses, and
1644	reserves accumulated and expended for capital expenditures,
1645	deferred maintenance, and any other category for which the
1646	association maintains reserves.
1647	(c)  An association may prepare or cause to be prepared,
1648	without a meeting of or approval by the shareholders:
1649	1.  Compiled, reviewed, or audited financial statements, if
1650	the association is required to prepare a report of cash receipts
1651	and expenditures;
1652	2.  Reviewed or audited financial statements, if the
1653	association is required to prepare compiled financial
1654	statements; or
1655	3.  Audited financial statements, if the association is
1656	required to prepare reviewed financial statements.
1657	(d)  If approved by a majority of the voting interests
1658	present at a properly called meeting of the association, an
1659	association may prepare or cause to be prepared:
1660	1.  A report of cash receipts and expenditures in lieu of a
1661	compiled, reviewed, or audited financial statement;
1662	2.  A report of cash receipts and expenditures or a
1663	compiled financial statement in lieu of a reviewed or audited
1664	financial statement; or
1665	3.  A report of cash receipts and expenditures, a compiled
1666	financial statement, or a reviewed financial statement in lieu
1667	of an audited financial statement.
1668
1669	Such meeting and approval must occur prior to the end of the
1670	fiscal year and is effective only for the fiscal year in which
1671	the vote is taken, except that the approval also may be
1672	effective for the following fiscal year. With respect to an
1673	association to which the developer has not turned over control
1674	of the association, all shareholders, including the developer,
1675	may vote on issues related to the preparation of financial
1676	reports for the first 2 fiscal years of the association's
1677	operation, beginning with the fiscal year in which the
1678	cooperative documents are recorded. Thereafter, all shareholders
1679	except the developer may vote on such issues until control is
1680	turned over to the association by the developer. Any audit or
1681	review prepared under this section shall be paid for by the
1682	developer if done prior to turnover of control of the
1683	association. An association may not waive the financial
1684	reporting requirements of this subsection for more than 3
1685	consecutive years.
1686	(a)  Within 60 days following the end of the fiscal or
1687	calendar year or annually on such date as is otherwise provided
1688	in the bylaws of the association, the board of administration of
1689	the association shall mail or furnish by personal delivery to
1690	each unit owner a complete financial report of actual receipts
1691	and expenditures for the previous 12 months, or a complete set
1692	of financial statements for the preceding fiscal year prepared
1693	in accordance with generally accepted accounting procedures. The
1694	report shall show the amounts of receipts by accounts and
1695	receipt classifications and shall show the amounts of expenses
1696	by accounts and expense classifications including, if
1697	applicable, but not limited to, the following:
1698	1.  Costs for security;
1699	2.  Professional and management fees and expenses;
1700	3.  Taxes;
1701	4.  Costs for recreation facilities;
1702	5.  Expenses for refuse collection and utility services;
1703	6.  Expenses for lawn care;
1704	7.  Costs for building maintenance and repair;
1705	8.  Insurance costs;
1706	9.  Administrative and salary expenses; and
1707	10.  Reserves for capital expenditures, deferred
1708	maintenance, and any other category for which the association
1709	maintains a reserve account or accounts.
1710	(b)  The division shall adopt rules that may require that
1711	the association deliver to the unit owners, in lieu of the
1712	financial report required by this section, a complete set of
1713	financial statements for the preceding fiscal year. The
1714	financial statements shall be delivered within 90 days following
1715	the end of the previous fiscal year or annually on such other
1716	date as provided in the bylaws. The rules of the division may
1717	require that the financial statements be compiled, reviewed, or
1718	audited, and the rules shall take into consideration the
1719	criteria set forth in s. 719.501(1)(j). The requirement to have
1720	the financial statements compiled, reviewed, or audited does not
1721	apply to associations if a majority of the voting interests of
1722	the association present at a duly called meeting of the
1723	association have determined for a fiscal year to waive this
1724	requirement. In an association in which turnover of control by
1725	the developer has not occurred, the developer may vote to waive
1726	the audit requirement for the first 2 years of the operation of
1727	the association, after which time waiver of an applicable audit
1728	requirement shall be by a majority of voting interests other
1729	than the developer. The meeting shall be held prior to the end
1730	of the fiscal year, and the waiver shall be effective for only
1731	one fiscal year. This subsection does not apply to a cooperative
1732	that consists of 50 or fewer units.
1733	(5)  ASSESSMENTS.-The association has the power to make and
1734	collect assessments and to lease, maintain, repair, and replace
1735	the common areas. However, the association may not charge a use
1736	fee against a shareholder the unit owner for the use of common
1737	areas unless otherwise provided for in the cooperative documents
1738	or by a majority vote of the association or unless the charges
1739	relate to expenses incurred by a shareholder an owner having
1740	exclusive use of common areas.
1741	(6)  PURCHASE OF LEASES.-The association has the power to
1742	purchase any land or recreation lease upon the approval of such
1743	voting interest as is required by the cooperative documents. If
1744	the cooperative documents make no provision for acquisition of
1745	the land or recreational lease, the vote required is that
1746	required to amend the cooperative documents to permit the
1747	acquisition.
1748	(7)  COMMINGLING.-All funds shall be maintained separately
1749	in the association's name. Reserve and operating funds of the
1750	association shall not be commingled unless combined for
1751	investment purposes. This subsection is not meant to prohibit
1752	prudent investment of association funds even if combined with
1753	operating or other reserve funds of the same association, but
1754	such funds must be accounted for separately, and the combined
1755	account balance may not, at any time, be less than the amount
1756	identified as reserve funds in the combined account. No manager
1757	or business entity required to be licensed or registered under
1758	s. 468.432, or an agent, employee, officer, or director of a
1759	cooperative association may commingle any association funds with
1760	his or her own funds or with the funds of any other cooperative
1761	association or community association as defined in s. 468.431.
1762	(8)  CORPORATE ENTITY.-
1763	(a)  The operation of the cooperative shall be by the
1764	association, which must be a Florida corporation not for profit.
1765	The shareholders shall be members of the association. The
1766	officers and directors of the association have a fiduciary
1767	relationship to the shareholders unit owners. It is the intent
1768	of the Legislature that nothing in this paragraph shall be
1769	construed as providing for or removing a requirement of a
1770	fiduciary relationship between any manager employed by the
1771	association and the shareholders. An officer, director, or
1772	manager may not solicit, offer to accept, or accept any thing or
1773	service of value for which consideration has not been provided
1774	for his or her own benefit or that of his or her immediate
1775	family, from any person providing or proposing to provide goods
1776	or services to the association. Any such officer, director, or
1777	manager who knowingly solicits, offers to accept, or accepts any
1778	thing or service of value is subject to a civil penalty pursuant
1779	to s. 719.501(1)(d). However, this paragraph does not prohibit
1780	an officer, director, or manager from accepting services or
1781	items received in connection with trade fairs or education
1782	programs.
1783	(b)  A director of the association who is present at a
1784	meeting of its board at which action on any corporate matter is
1785	taken is presumed to have assented to the action taken unless
1786	the director votes against such action or abstains from voting
1787	in respect thereto because of an asserted conflict of interest.
1788	A director of the association who abstains from voting on any
1789	action taken on any corporate matter shall be presumed to have
1790	taken no position with regard to the action. Directors may not
1791	vote by proxy or by secret ballot at board meetings, except that
1792	officers may be elected by secret ballot. A vote or abstention
1793	for each member present shall be recorded in the minutes.
1794	(c)  A shareholder unit owner does not have any authority
1795	to act for the association by reason of being a shareholder unit
1796	owner.
1797	(d)  As required by s. 617.0830, an officer, director, or
1798	agent shall discharge his or her duties in good faith, with the
1799	care an ordinarily prudent person in a like position would
1800	exercise under similar circumstances, and in a manner he or she
1801	reasonably believes to be in the interests of the association.
1802	An officer, director, or agent shall be liable for monetary
1803	damages as provided in s. 617.0834 if the officer, director, or
1804	agent breached or failed to perform his or her duties and the
1805	breach of, or failure to perform, those duties constitutes a
1806	violation of criminal law as provided in s. 617.0834;
1807	constitutes a transaction from which the officer or director
1808	derived an improper personal benefit, either directly or
1809	indirectly; or constitutes recklessness or an act or omission
1810	that was in bad faith, with malicious purpose, or in a manner
1811	exhibiting wanton and willful disregard of human rights, safety,
1812	or property.
1813	(9)  EASEMENTS.-Unless prohibited by the cooperative
1814	documents, the board of administration has the authority,
1815	without the joinder of any shareholder unit owner, to grant,
1816	modify, or move any easement, if the easement constitutes part
1817	of or crosses the common areas or association property. This
1818	subsection does not authorize the board of administration to
1819	modify, move, or vacate any easement created in whole or in part
1820	for the use or benefit of anyone other than the shareholders
1821	unit owners, or crossing the property of anyone other than the
1822	shareholders unit owners, without the consent or approval of
1823	those other persons having the use or benefit of the easement,
1824	as required by law or by the instrument creating the easement.
1825	(10)  POWERS AND DUTIES.-The powers and duties of the
1826	association include those set forth in this section and, except
1827	as expressly limited or restricted in this chapter, those set
1828	forth in the articles of incorporation and bylaws and chapters
1829	607 and 617, as applicable.
1830	(11)  NOTIFICATION OF DIVISION.-When the board of directors
1831	intends to dissolve or merge the cooperative association, the
1832	board shall so notify the division before taking any action to
1833	dissolve or merge the cooperative association.
1834	(12)  POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT,
1835	SUE, BE SUED, AND BORROW MONEY.-
1836	(a)  The association may contract, sue, or be sued with
1837	respect to the exercise or nonexercise of its powers. For these
1838	purposes, the powers of the association include, but are not
1839	limited to, the maintenance, management, and operation of the
1840	cooperative property.
1841	(b)  After control of the association is obtained by
1842	shareholders other than the developer, the association may
1843	institute, maintain, settle, or appeal actions or hearings in
1844	its name on behalf of all shareholders concerning matters of
1845	common interest to most or all shareholders, including, but not
1846	limited to, the common areas; the roof and structural components
1847	of a building or other improvements; mechanical, electrical, and
1848	plumbing elements serving an improvement or a building;
1849	representations of the developer pertaining to any existing or
1850	proposed commonly used facilities; and protests of ad valorem
1851	taxes on commonly used facilities and units; and the association
1852	may defend actions in eminent domain or bring inverse
1853	condemnation actions.
1854	(c)  If the association has the authority to maintain a
1855	class action, the association may be joined in an action as
1856	representative of that class with reference to litigation and
1857	disputes involving the matters for which the association could
1858	bring a class action. Nothing in this paragraph limits any
1859	statutory or common-law right of any individual shareholder or
1860	class of shareholders to bring any action without participation
1861	by the association which may otherwise be available.
1862	(13)  TITLE TO PROPERTY.-
1863	(a)  The association has the power to acquire title to
1864	property or otherwise hold, convey, lease, and mortgage
1865	association property for the use and benefit of its
1866	shareholders. The power to acquire personal property shall be
1867	exercised by the board of directors. Except as otherwise
1868	provided in subsections (6) and (14), an association may not
1869	acquire, convey, lease, or mortgage association real property
1870	except in the manner provided in the cooperative documents, and
1871	if the cooperative documents do not specify the procedure, then
1872	approval of 75 percent of the total voting interests shall be
1873	required.
1874	(b)  Subject to the provisions of s. 719.106(1)(m), the
1875	association, through its board, has the limited power to convey
1876	a portion of the common areas to a condemning authority for the
1877	purposes of providing utility easements, right-of-way expansion,
1878	or other public purposes, whether negotiated or as a result of
1879	eminent domain proceedings.
1880	(14)  PURCHASE OF UNITS.-The association has the power,
1881	unless prohibited by the cooperative documents, to purchase
1882	units in the cooperative and to acquire and hold, lease,
1883	mortgage, and convey the units. There shall be no limitation on
1884	the association's right to purchase a unit at a foreclosure sale
1885	resulting from the association's foreclosure of its lien for
1886	unpaid assessments or to take title by deed in lieu of
1887	foreclosure.
1888	(15)  MEETINGS.-Regular meetings of the board of directors
1889	shall be held at such time and place as provided in the bylaws
1890	until the first regular meeting of the board held on or after
1891	October 1, 2010. Thereafter, the location and time for regular
1892	meetings of the board shall be determined by a majority vote of
1893	the shareholders at the next regular meeting held on or after
1894	October 1, 2010. Once the time and place for regular meetings of
1895	the board have been selected, neither may be changed unless
1896	approved by a majority vote of the shareholders. Regular
1897	meetings of the board of directors held on weekdays may be held
1898	no earlier than 6 p.m. local time.
1899	(16)  LIMIT ON EXPENDITURES AND CONTRIBUTIONS.-It shall be
1900	unlawful for an association to make any expenditure of
1901	association funds or to make any in-kind contribution of
1902	association assets that does not relate to the purposes for
1903	which the association is organized.
1904	(a)  The association shall not make any contribution to a
1905	campaign or committee of continuous existence governed by
1906	chapter 105 or chapter 106.
1907	(b)  The association shall not make any contribution to a
1908	charitable organization if the association does not receive a
1909	direct benefit from the organization.
1910	(c)  Members of the board of administration shall be
1911	jointly and severely liable to reimburse the association for any
1912	contribution, expenditure, or in-kind contribution made in
1913	violation of this subsection.
1914	Section 16.  Section 719.106, Florida Statutes, is amended
1915	to read:
1916	719.106  Bylaws; cooperative ownership.-
1917	(1)  MANDATORY PROVISIONS.-The bylaws or other cooperative
1918	documents shall provide for the following, and if they do not,
1919	they shall be deemed to include the following:
1920	(a)  Administration.-
1921	1.  The form of administration of the association shall be
1922	described, indicating the titles of the officers and board of
1923	administration and specifying the powers, duties, manner of
1924	selection and removal, and compensation, if any, of officers and
1925	board members. In the absence of such a provision, the board of
1926	administration shall be composed of five members, except in the
1927	case of cooperatives having five or fewer units, in which case
1928	in not-for-profit corporations, the board shall consist of not
1929	fewer than three members. In the absence of provisions to the
1930	contrary, the board of administration shall have a president, a
1931	secretary, and a treasurer, who shall perform the duties of
1932	those offices customarily performed by officers of corporations.
1933	Unless prohibited in the bylaws, the board of administration may
1934	appoint other officers and grant them those duties it deems
1935	appropriate. Unless otherwise provided in the bylaws, the
1936	officers shall serve without compensation and at the pleasure of
1937	the board. Unless otherwise provided in the bylaws, the members
1938	of the board shall serve without compensation.
1939	2.  When a shareholder unit owner files a written inquiry
1940	by certified mail with the board of administration, the board
1941	shall respond in writing to the shareholder unit owner within 30
1942	days of receipt of the inquiry. The board's response shall
1943	either give a substantive response to the inquirer, notify the
1944	inquirer that a legal opinion has been requested, or notify the
1945	inquirer that advice has been requested from the division. If
1946	the board requests advice from the division, the board shall,
1947	within 10 days of its receipt of the advice, provide in writing
1948	a substantive response to the inquirer. If a legal opinion is
1949	requested, the board shall, within 60 days after the receipt of
1950	the inquiry, provide in writing a substantive response to the
1951	inquirer. The failure to provide a substantive response to the
1952	inquirer as provided herein precludes the board from recovering
1953	attorney's fees and costs in any subsequent litigation,
1954	administrative proceeding, or arbitration arising out of the
1955	inquiry. The association may, through its board of
1956	administration, adopt reasonable rules and regulations regarding
1957	the frequency and manner of responding to the shareholders' unit
1958	owners' inquiries, one of which may be that the association is
1959	obligated to respond to only one written inquiry per unit in any
1960	given 30-day period. In such case, any additional inquiry or
1961	inquiries must be responded to in the subsequent 30-day period,
1962	or periods, as applicable.
1963	(b)  Quorum; voting requirements; proxies.-
1964	1.  Unless otherwise provided in the bylaws, the percentage
1965	of voting interests required to constitute a quorum at a meeting
1966	of the members shall be a majority of voting interests, and
1967	decisions shall be made by owners of a majority of the voting
1968	interests. Unless otherwise provided in this chapter, or in the
1969	articles of incorporation, bylaws, or other cooperative
1970	documents, and except as provided in subparagraph (d)1.,
1971	decisions shall be made by owners of a majority of the voting
1972	interests represented at a meeting at which a quorum is present.
1973	2.  Except as specifically otherwise provided herein, after
1974	January 1, 1992, shareholders unit owners may not vote by
1975	general proxy, but may vote by limited proxies substantially
1976	conforming to a limited proxy form adopted by the division.
1977	Limited proxies and general proxies may be used to establish a
1978	quorum. Limited proxies shall be used for votes taken to waive
1979	or reduce reserves in accordance with subparagraph (j)2., for
1980	votes taken to waive the financial reporting requirements of s.
1981	719.104(4)(b), for votes taken to amend the articles of
1982	incorporation or bylaws pursuant to this section, and for any
1983	other matter for which this chapter requires or permits a vote
1984	of the shareholders unit owners. Except as provided in paragraph
1985	(d), after January 1, 1992, no proxy, limited or general, shall
1986	be used in the election of board members. General proxies may be
1987	used for other matters for which limited proxies are not
1988	required, and may also be used in voting for nonsubstantive
1989	changes to items for which a limited proxy is required and
1990	given. Notwithstanding the provisions of this section,
1991	shareholders unit owners may vote in person at shareholder unit
1992	owner meetings. Nothing contained herein shall limit the use of
1993	general proxies or require the use of limited proxies or require
1994	the use of limited proxies for any agenda item or election at
1995	any meeting of a timeshare cooperative.
1996	3.  Any proxy given shall be effective only for the
1997	specific meeting for which originally given and any lawfully
1998	adjourned meetings thereof. In no event shall any proxy be valid
1999	for a period longer than 90 days after the date of the first
2000	meeting for which it was given. Every proxy shall be revocable
2001	at any time at the pleasure of the shareholder unit owner
2002	executing it.
2003	4.  A member of the board of administration or a committee
2004	may submit in writing his or her agreement or disagreement with
2005	any action taken at a meeting that the member did not attend.
2006	This agreement or disagreement may not be used as a vote for or
2007	against the action taken and may not be used for the purposes of
2008	creating a quorum.
2009	5.  When some or all of the board or committee members meet
2010	by telephone conference, those board or committee members
2011	attending by telephone conference may be counted toward
2012	obtaining a quorum and may vote by telephone. A telephone
2013	speaker shall be utilized so that the conversation of those
2014	board or committee members attending by telephone may be heard
2015	by the board or committee members attending in person, as well
2016	as by shareholders unit owners present at a meeting.
2017	(c)  Board of administration meetings.-Meetings of the
2018	board of administration at which a quorum of the members is
2019	present shall be open to all shareholders unit owners. Any
2020	shareholder unit owner may tape record or videotape meetings of
2021	the board of administration. The right to attend such meetings
2022	includes the right to speak at such meetings with reference to
2023	all designated agenda items. The division shall adopt reasonable
2024	rules governing the tape recording and videotaping of the
2025	meeting. The association may adopt reasonable written rules
2026	governing the frequency, duration, and manner of shareholder
2027	unit owner statements. Adequate notice of all meetings shall be
2028	posted in a conspicuous place upon the cooperative property at
2029	least 48 continuous hours preceding the meeting, except in an
2030	emergency. If 20 percent of the voting interests petition the
2031	board to address an item of business, the board shall at its
2032	next regular board meeting or at a special meeting of the board,
2033	but not later than 60 days after the receipt of the petition,
2034	place the item on the agenda. Any item not included on the
2035	notice may be taken up on an emergency basis by at least a
2036	majority plus one of the members of the board. Such emergency
2037	action shall be noticed and ratified at the next regular meeting
2038	of the board. However, written notice of any meeting at which
2039	nonemergency special assessments, or at which amendment to rules
2040	regarding unit use, will be considered shall be mailed,
2041	delivered, or electronically transmitted to the shareholders
2042	unit owners and posted conspicuously on the cooperative property
2043	not less than 14 days prior to the meeting. Evidence of
2044	compliance with this 14-day notice shall be made by an affidavit
2045	executed by the person providing the notice and filed among the
2046	official records of the association. Upon notice to the
2047	shareholders unit owners, the board shall by duly adopted rule
2048	designate a specific location on the cooperative property upon
2049	which all notices of board meetings shall be posted. In lieu of
2050	or in addition to the physical posting of notice of any meeting
2051	of the board of administration on the cooperative property, the
2052	association may, by reasonable rule, adopt a procedure for
2053	conspicuously posting and repeatedly broadcasting the notice and
2054	the agenda on a closed-circuit cable television system serving
2055	the cooperative association. However, if broadcast notice is
2056	used in lieu of a notice posted physically on the cooperative
2057	property, the notice and agenda must be broadcast at least four
2058	times every broadcast hour of each day that a posted notice is
2059	otherwise required under this section. When broadcast notice is
2060	provided, the notice and agenda must be broadcast in a manner
2061	and for a sufficient continuous length of time so as to allow an
2062	average reader to observe the notice and read and comprehend the
2063	entire content of the notice and the agenda. Notice of any
2064	meeting in which regular or special assessments against
2065	shareholders unit owners are to be considered for any reason
2066	shall specifically state contain a statement that assessments
2067	will be considered and the nature of, the actual cost of, and a
2068	description of the purposes for any such assessments. Meetings
2069	of a committee to take final action on behalf of the board or to
2070	make recommendations to the board regarding the association
2071	budget are subject to the provisions of this paragraph. Meetings
2072	of a committee that does not take final action on behalf of the
2073	board or make recommendations to the board regarding the
2074	association budget are subject to the provisions of this
2075	section, unless those meetings are exempted from this section by
2076	the bylaws of the association. Notwithstanding any other law to
2077	the contrary, the requirement that board meetings and committee
2078	meetings be open to the shareholders unit owners is inapplicable
2079	to meetings between the board or a committee and the
2080	association's attorney, with respect to proposed or pending
2081	litigation, when the meeting is held for the purpose of seeking
2082	or rendering legal advice.
2083	(d)  Shareholder meetings.-There shall be an annual meeting
2084	of the shareholders held at the location provided in the
2085	association bylaws and, if the bylaws are silent as to the
2086	location, the meeting shall be held within 45 miles of the
2087	cooperative property. However, such distance requirement does
2088	not apply to an association governing a timeshare cooperative.
2089	All members of the board of administration shall be elected at
2090	the first annual meeting after July 1, 2010, and annually
2091	thereafter, except that if unless the bylaws provide for
2092	staggered election terms of no more than 2 years, the
2093	association board members may serve 2-year staggered terms. If
2094	no person is interested in or demonstrates an intention to run
2095	for the position of a board member whose term has expired, the
2096	board member whose term has expired shall be automatically
2097	reappointed to the board of administration and need not stand
2098	for reelection or for their election at another meeting. Any
2099	shareholder unit owner desiring to be a candidate for board
2100	membership must shall comply with subparagraph 1. The bylaws
2101	shall provide the method for calling meetings, including annual
2102	meetings. Written notice, which notice shall incorporate an
2103	identification of agenda items, shall be given to each
2104	shareholder unit owner at least 14 days prior to the annual
2105	meeting and shall be posted in a conspicuous place on the
2106	cooperative property at least 14 continuous days preceding the
2107	annual meeting. Upon notice to the shareholders unit owners, the
2108	board shall by duly adopted rule designate a specific location
2109	on the cooperative property upon which all notice of shareholder
2110	unit owner meetings shall be posted. In lieu of or in addition
2111	to the physical posting of notice of any meeting of the
2112	shareholders on the cooperative property, the association may,
2113	by reasonable rule, adopt a procedure for conspicuously posting
2114	and repeatedly broadcasting the notice and the agenda on a
2115	closed-circuit cable television system serving the cooperative
2116	association. However, if broadcast notice is used in lieu of a
2117	notice posted physically on the cooperative property, the notice
2118	and agenda must be broadcast at least four times every broadcast
2119	hour of each day that a posted notice is otherwise required
2120	under this section. When broadcast notice is provided, the
2121	notice and agenda must be broadcast in a manner and for a
2122	sufficient continuous length of time so as to allow an average
2123	reader to observe the notice and read and comprehend the entire
2124	content of the notice and the agenda. Unless a shareholder unit
2125	owner waives in writing the right to receive notice of the
2126	annual meeting, the notice of the annual meeting shall be sent
2127	by mail, hand delivered, or electronically transmitted to each
2128	shareholder unit owner. An officer of the association shall
2129	provide an affidavit or United States Postal Service certificate
2130	of mailing, to be included in the official records of the
2131	association, affirming that notices of the association meeting
2132	were mailed, hand delivered, or electronically transmitted, in
2133	accordance with this provision, to each shareholder unit owner
2134	at the address last furnished to the association.
2135	1.  After January 1, 1992, the board of administration
2136	shall be elected by written ballot or voting machine. Proxies
2137	shall in no event be used in electing the board of
2138	administration, either in general elections or elections to fill
2139	vacancies caused by recall, resignation, or otherwise unless
2140	otherwise provided in this chapter. Not less than 60 days before
2141	a scheduled election, the association shall mail, deliver, or
2142	transmit, whether by separate association mailing, delivery, or
2143	electronic transmission or included in another association
2144	mailing, delivery, or electronic transmission, including
2145	regularly published newsletters, to each shareholder unit owner
2146	entitled to vote, a first notice of the date of the election.
2147	Any shareholder unit owner or other eligible person desiring to
2148	be a candidate for the board of administration shall give
2149	written notice to the association not less than 40 days before a
2150	scheduled election. Together with the written notice and agenda
2151	as set forth in this section, the association shall mail,
2152	deliver, or electronically transmit a second notice of election
2153	to all shareholders unit owners entitled to vote therein,
2154	together with a ballot which shall list all candidates. Upon
2155	request of a candidate, the association shall include an
2156	information sheet, no larger than 8 1/2 inches by 11 inches,
2157	which must be furnished by the candidate not less than 35 days
2158	prior to the election, to be included with the mailing,
2159	delivery, or electronic transmission of the ballot, with the
2160	costs of mailing, delivery, or transmission and copying to be
2161	borne by the association. The association has no liability for
2162	the contents of the information sheets provided by the
2163	candidates. In order to reduce costs, the association may print
2164	or duplicate the information sheets on both sides of the paper.
2165	The division shall by rule establish voting procedures
2166	consistent with the provisions contained herein, including rules
2167	establishing procedures for giving notice by electronic
2168	transmission and rules providing for the secrecy of ballots.
2169	Elections shall be decided by a plurality of those ballots cast.
2170	There shall be no quorum requirement. However, at least 20
2171	percent of the eligible voters must cast a ballot in order to
2172	have a valid election of members of the board of administration.
2173	No shareholder unit owner shall permit any other person to vote
2174	his or her ballot, and any such ballots improperly cast shall be
2175	deemed invalid. A shareholder unit owner who needs assistance in
2176	casting the ballot for the reasons stated in s. 101.051 may
2177	obtain assistance in casting the ballot. Any shareholder unit
2178	owner violating this provision may be fined by the association
2179	in accordance with s. 719.303. The regular election shall occur
2180	on the date of the annual meeting. The provisions of this
2181	subparagraph shall not apply to timeshare cooperatives.
2182	Notwithstanding the provisions of this subparagraph, an election
2183	and balloting are not required unless more candidates file a
2184	notice of intent to run or are nominated than vacancies exist on
2185	the board.
2186	2.  Any approval by shareholders unit owners called for by
2187	this chapter, or the applicable cooperative documents, shall be
2188	made at a duly noticed meeting of shareholders unit owners and
2189	shall be subject to all requirements of this chapter or the
2190	applicable cooperative documents relating to shareholder unit
2191	owner decisionmaking, except that shareholders unit owners may
2192	take action by written agreement, without meetings, on matters
2193	for which action by written agreement without meetings is
2194	expressly allowed by the applicable cooperative documents or any
2195	Florida statute which provides for the shareholder unit owner
2196	action.
2197	3.  Shareholders Unit owners may waive notice of specific
2198	meetings if allowed by the applicable cooperative documents or
2199	any Florida statute. If authorized by the bylaws, notice of
2200	meetings of the board of administration, shareholder meetings,
2201	except shareholder meetings called to recall board members under
2202	paragraph (f), and committee meetings may be given by electronic
2203	transmission to shareholders unit owners who consent to receive
2204	notice by electronic transmission.
2205	4.  Shareholders Unit owners shall have the right to
2206	participate in meetings of shareholders unit owners with
2207	reference to all designated agenda items. However, the
2208	association may adopt reasonable rules governing the frequency,
2209	duration, and manner of shareholder unit owner participation.
2210	5.  Any shareholder unit owner may tape record or videotape
2211	meetings of the shareholders unit owners subject to reasonable
2212	rules adopted by the division.
2213
2214	Notwithstanding subparagraphs (b)2. and (d)1., an association of
2215	10 or fewer units may, by the affirmative vote of a majority of
2216	the total voting interests, provide for a different voting and
2217	election procedure in its bylaws, which vote may be by a proxy
2218	specifically delineating the different voting and election
2219	procedures. The different voting and election procedures may
2220	provide for elections to be conducted by limited or general
2221	proxy.
2222	(e)  Budget procedures.-
2223	1.  The board of administration shall mail, hand deliver,
2224	or electronically transmit to each shareholder unit owner at the
2225	address last furnished to the association, a meeting notice and
2226	copies of the proposed annual budget of common expenses to the
2227	shareholders unit owners not less than 14 days prior to the
2228	meeting at which the budget will be considered. Evidence of
2229	compliance with this 14-day notice must be made by an affidavit
2230	executed by an officer of the association or the manager or
2231	other person providing notice of the meeting and filed among the
2232	official records of the association. The meeting must be open to
2233	the shareholders unit owners.
2234	2.  If an adopted budget requires assessment against the
2235	shareholders unit owners in any fiscal or calendar year which
2236	exceeds 115 percent of the assessments for the preceding year,
2237	the board upon written application of 10 percent of the voting
2238	interests to the board, shall call a special meeting of the
2239	shareholders unit owners within 30 days, upon not less than 10
2240	days' written notice to each shareholder unit owner. At the
2241	special meeting, shareholders unit owners shall consider and
2242	enact a budget. Unless the bylaws require a larger vote, the
2243	adoption of the budget requires a vote of not less than a
2244	majority of all the voting interests.
2245	3.  The board of administration may, in any event, propose
2246	a budget to the shareholders unit owners at a meeting of members
2247	or by writing, and if the budget or proposed budget is approved
2248	by the shareholders unit owners at the meeting or by a majority
2249	of all voting interests in writing, the budget is adopted. If a
2250	meeting of the shareholders unit owners has been called and a
2251	quorum is not attained or a substitute budget is not adopted by
2252	the shareholders unit owners, the budget adopted by the board of
2253	directors goes into effect as scheduled.
2254	4.  In determining whether assessments exceed 115 percent
2255	of similar assessments for prior years, any authorized
2256	provisions for reasonable reserves for repair or replacement of
2257	cooperative property, anticipated expenses by the association
2258	which are not anticipated to be incurred on a regular or annual
2259	basis, or assessments for betterments to the cooperative
2260	property must be excluded from computation. However, as long as
2261	the developer is in control of the board of administration, the
2262	board may not impose an assessment for any year greater than 115
2263	percent of the prior fiscal or calendar year's assessment
2264	without approval of a majority of all voting interests.
2265	(f)  Recall of board members.-Subject to the provisions of
2266	s. 719.301, any member of the board of administration may be
2267	recalled and removed from office with or without cause by the
2268	vote or agreement in writing by a majority of all the voting
2269	interests. A special meeting of the voting interests to recall
2270	any member of the board of administration may be called by 10
2271	percent of the shareholders unit owners giving notice of the
2272	meeting as required for a meeting of shareholders unit owners,
2273	and the notice shall state the purpose of the meeting.
2274	Electronic transmission may not be used as a method of giving
2275	notice of a meeting called in whole or in part for this purpose.
2276	1.  If the recall is approved by a majority of all voting
2277	interests by a vote at a meeting, the recall shall be effective
2278	as provided herein. The board shall duly notice and hold a board
2279	meeting within 5 full business days of the adjournment of the
2280	shareholder unit owner meeting to recall one or more board
2281	members. At the meeting, the board shall either certify the
2282	recall, in which case such member or members shall be recalled
2283	effective immediately and shall turn over to the board within 5
2284	full business days any and all records and property of the
2285	association in their possession, or shall proceed as set forth
2286	in subparagraph 3.
2287	2.  If the proposed recall is by an agreement in writing by
2288	a majority of all voting interests, the agreement in writing or
2289	a copy thereof shall be served on the association by certified
2290	mail or by personal service in the manner authorized by chapter
2291	48 and the Florida Rules of Civil Procedure. The board of
2292	administration shall duly notice and hold a meeting of the board
2293	within 5 full business days after receipt of the agreement in
2294	writing. At the meeting, the board shall either certify the
2295	written agreement to recall members of the board, in which case
2296	such members shall be recalled effective immediately and shall
2297	turn over to the board, within 5 full business days, any and all
2298	records and property of the association in their possession, or
2299	proceed as described in subparagraph 3.
2300	3.  If the board determines not to certify the written
2301	agreement to recall members of the board, or does not certify
2302	the recall by a vote at a meeting, the board shall, within 5
2303	full business days after the board meeting, file with the
2304	division a petition for binding arbitration pursuant to the
2305	procedures of s. 719.1255. For purposes of this paragraph, the
2306	shareholders unit owners who voted at the meeting or who
2307	executed the agreement in writing shall constitute one party
2308	under the petition for arbitration. If the arbitrator certifies
2309	the recall as to any member of the board, the recall shall be
2310	effective upon mailing of the final order of arbitration to the
2311	association. If the association fails to comply with the order
2312	of the arbitrator, the division may take action pursuant to s.
2313	719.501. Any member so recalled shall deliver to the board any
2314	and all records and property of the association in the member's
2315	possession within 5 full business days of the effective date of
2316	the recall.
2317	4.  If the board fails to duly notice and hold a board
2318	meeting within 5 full business days of service of an agreement
2319	in writing or within 5 full business days of the adjournment of
2320	the shareholder unit owner recall meeting, the recall shall be
2321	deemed effective and the board members so recalled shall
2322	immediately turn over to the board any and all records and
2323	property of the association.
2324	5.  If a vacancy occurs on the board as a result of a
2325	recall or removal and less than a majority of the board members
2326	are removed, the vacancy may be filled by the affirmative vote
2327	of a majority of the remaining directors, notwithstanding any
2328	provision to the contrary contained in this chapter. If
2329	vacancies occur on the board as a result of a recall and a
2330	majority or more of the board members are removed, the vacancies
2331	shall be filled in accordance with procedural rules to be
2332	adopted by the division, which rules need not be consistent with
2333	this chapter. The rules must provide procedures governing the
2334	conduct of the recall election as well as the operation of the
2335	association during the period after a recall but prior to the
2336	recall election.
2337	(g)  Common expenses.-The manner of collecting from the
2338	shareholders unit owners their shares of the common expenses
2339	shall be stated. Assessments shall be made against shareholders
2340	unit owners not less frequently than quarterly, in an amount no
2341	less than is required to provide funds in advance for payment of
2342	all of the anticipated current operating expense and for all of
2343	the unpaid operating expense previously incurred. Nothing in
2344	this paragraph shall preclude the right of an association to
2345	accelerate assessments of a shareholder an owner delinquent in
2346	payment of common expenses in actions taken pursuant to s.
2347	719.104(5)(4).
2348	(h)  Amendment of bylaws.-
2349	1.  The method by which the bylaws may be amended
2350	consistent with the provisions of this chapter shall be stated.
2351	If the bylaws fail to provide a method of amendment, the bylaws
2352	may be amended if the amendment is approved by shareholders
2353	owners of not less than two-thirds of the voting interests.
2354	2.  No bylaw shall be revised or amended by reference to
2355	its title or number only. Proposals to amend existing bylaws
2356	shall contain the full text of the bylaws to be amended; new
2357	words shall be inserted in the text underlined, and words to be
2358	deleted shall be lined through with hyphens. However, if the
2359	proposed change is so extensive that this procedure would
2360	hinder, rather than assist, the understanding of the proposed
2361	amendment, it is not necessary to use underlining and hyphens as
2362	indicators of words added or deleted, but, instead, a notation
2363	must be inserted immediately preceding the proposed amendment in
2364	substantially the following language: "Substantial rewording of
2365	bylaw. See bylaw _____ for present text."
2366	3.  Nonmaterial errors or omissions in the bylaw process
2367	shall not invalidate an otherwise properly promulgated
2368	amendment.
2369	4.  If the bylaws provide for amendment by the board of
2370	directors, no bylaw may be amended unless it is heard and
2371	noticed at two consecutive meetings of the board of directors
2372	that are at least 1 week apart.
2373	(i)  Transfer fees.-No charge may be made by the
2374	association or any body thereof in connection with the sale,
2375	mortgage, lease, sublease, or other transfer of a unit unless
2376	the association is required to approve such transfer and a fee
2377	for such approval is provided for in the cooperative documents.
2378	Any such fee may be preset, but in no event shall it exceed $100
2379	per applicant other than husband/wife or parent/dependent child,
2380	which are considered one applicant. However, if the lease or
2381	sublease is a renewal of a lease or sublease with the same
2382	lessee or sublessee, no charge shall be made. Nothing in this
2383	paragraph shall be construed to prohibit an association from
2384	requiring as a condition to permitting the letting or renting of
2385	a unit, when the association has such authority in the
2386	documents, the depositing into an escrow account maintained by
2387	the association a security deposit in an amount not to exceed
2388	the equivalent of 1 month's rent. The security deposit shall
2389	protect against damages to the common areas or cooperative
2390	property. Within 15 days after a tenant vacates the premises,
2391	the association shall refund the full security deposit or give
2392	written notice to the tenant of any claim made against the
2393	security. Disputes under this paragraph shall be handled in the
2394	same fashion as disputes concerning security deposits under s.
2395	83.49.
2396	(j)  Annual budget.-
2397	1.  The proposed annual budget of estimated revenues and
2398	common expenses shall be detailed and shall show the amounts
2399	budgeted by accounts and expense classifications, including, if
2400	applicable, but not limited to, those expenses listed in s.
2401	719.504(20).
2402	2.  In addition to annual operating expenses, the budget
2403	shall include reserve accounts for capital expenditures and
2404	deferred maintenance. These accounts shall include, but not be
2405	limited to, roof replacement, building painting, and pavement
2406	resurfacing, regardless of the amount of deferred maintenance
2407	expense or replacement cost, and for any other items for which
2408	the deferred maintenance expense or replacement cost exceeds
2409	$10,000. The amount to be reserved shall be computed by means of
2410	a formula which is based upon estimated remaining useful life
2411	and estimated replacement cost or deferred maintenance expense
2412	of each reserve item. The association may adjust replacement
2413	reserve assessments annually to take into account any changes in
2414	estimates or extension of the useful life of a reserve item
2415	caused by deferred maintenance. This paragraph shall not apply
2416	to any budget in which the members of an association have, at a
2417	duly called meeting of the association, determined for a fiscal
2418	year to provide no reserves or reserves less adequate than
2419	required by this subsection. However, prior to turnover of
2420	control of an association by a developer to shareholders unit
2421	owners other than a developer pursuant to s. 719.301, the
2422	developer may vote to waive the reserves or reduce the funding
2423	of reserves for the first 2 years of the operation of the
2424	association after which time reserves may only be waived or
2425	reduced upon the vote of a majority of all nondeveloper voting
2426	interests voting in person or by limited proxy at a duly called
2427	meeting of the association. If a meeting of the shareholders
2428	unit owners has been called to determine to provide no reserves,
2429	or reserves less adequate than required, and such result is not
2430	attained or a quorum is not attained, the reserves as included
2431	in the budget shall go into effect.
2432	3.  Reserve funds and any interest accruing thereon shall
2433	remain in the reserve account or accounts, and shall be used
2434	only for authorized reserve expenditures unless their use for
2435	other purposes is approved in advance by a vote of the majority
2436	of the voting interests, voting in person or by limited proxy at
2437	a duly called meeting of the association. Prior to turnover of
2438	control of an association by a developer to shareholders unit
2439	owners other than the developer under s. 719.301, the developer
2440	may not vote to use reserves for purposes other than that for
2441	which they were intended without the approval of a majority of
2442	all nondeveloper voting interests, voting in person or by
2443	limited proxy at a duly called meeting of the association.
2444	4.  The only voting interests which are eligible to vote on
2445	questions that involve waiving or reducing the funding of
2446	reserves, or using existing reserve funds for purposes other
2447	than purposes for which the reserves were intended, are the
2448	voting interests of the units subject to assessment to fund the
2449	reserves in question. Proxy questions relating to waiving or
2450	reducing the funding of reserves or using existing reserve funds
2451	for purposes other than purposes for which the reserves were
2452	intended shall contain the following statement in capitalized,
2453	bold letters in a font size larger than any other used on the
2454	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
2455	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
2456	RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED
2457	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
2458	(k)  Insurance or fidelity bonds.-The association shall
2459	obtain and maintain adequate insurance or fidelity bonding of
2460	all persons who control or disburse funds of the association.
2461	The insurance policy or fidelity bond must cover the maximum
2462	funds that will be in the custody of the association or its
2463	management agent at any one time. As used in this paragraph, the
2464	term "persons who control or disburse funds of the association"
2465	includes, but is not limited to, those individuals authorized to
2466	sign checks, and the president, secretary, and treasurer of the
2467	association. The association shall bear the cost of bonding and
2468	insurance.
2469	(l)  Arbitration.-There shall be a provision for mandatory
2470	nonbinding arbitration of internal disputes arising from the
2471	operation of the cooperative in accordance with s. 719.1255.
2472	(m)  Common areas; limited power to convey.-
2473	1.  The bylaws shall include a provision granting the
2474	association a limited power to convey a portion of the common
2475	areas to a condemning authority for the purpose of providing
2476	utility easements, right-of-way expansion, or other public
2477	purposes, whether negotiated or as a result of eminent domain
2478	proceedings.
2479	2.  In any case in which the bylaws are silent as to the
2480	association's power to convey common areas as described in
2481	subparagraph 1., the bylaws shall be deemed to include the
2482	provision described in subparagraph 1.
2483	(n)  Director or officer delinquencies.-A director or
2484	officer more than 90 days delinquent in the payment of regular
2485	assessments shall be deemed to have abandoned his or her office,
2486	creating a vacancy in the office to be filled according to law.
2487	(o)  Director or officer offenses.-A director or officer
2488	charged by information or indictment with a felony theft or
2489	embezzlement offense involving the association's funds or
2490	property shall be removed from office, creating a vacancy in the
2491	office to be filled according to law. While such director or
2492	officer has such criminal charge pending in the state or federal
2493	court system, he or she may not be appointed or elected to a
2494	position as a director or officer. However, should the charges
2495	be resolved without a finding of guilt, the director or officer
2496	shall be reinstated for the remainder of his or her term of
2497	office, if any.
2498	(p)  Qualifications of directors.-In addition to any other
2499	requirement for office in statute, a person running for, seeking
2500	appointment to, or serving as a director of the board must meet
2501	the following qualifications:
2502	1.  In a cooperative association of 10 or more units, only
2503	one individual coowner of a unit may serve on the board of
2504	administration.
2505	2.  No person may serve as a director of any cooperative
2506	association in the state if restricted from serving by action of
2507	the division pursuant to s. 719.501.
2508	3.  A person who has been convicted of any felony in this
2509	state or in a United States District or Territorial Court, or
2510	who has been convicted of any offense in another jurisdiction
2511	that would be considered a felony if committed in this state, is
2512	not eligible for board membership unless such felon's civil
2513	rights have been restored for a period of no less than 5 years
2514	as of the date on which such person seeks election to the board.
2515	4.  A director more than 90 days delinquent in the payment
2516	of regular assessments shall be deemed to have abandoned his or
2517	her office.
2518	5.  Within 30 days after being elected or appointed to the
2519	board of directors, a director shall certify in writing to the
2520	secretary of the association that he or she has read this part
2521	and part III and the association's cooperative documents,
2522	bylaws, and current written policies. The director shall further
2523	certify that he or she will work to uphold such documents and
2524	policies to the best of his or her ability and that he or she
2525	will faithfully discharge his or her fiduciary responsibility to
2526	the association's members. If the division finds that a director
2527	has falsely certified that he or she has read the required
2528	statutes and documents, the division shall order the director
2529	removed the board and shall order the director to reimburse the
2530	division for the cost of prosecution and hearing.
2531	6.  After turnover of the association pursuant to s.
2532	719.301(4), a director must:
2533	a.  If the unit is owned by an individual or individuals,
2534	be one of those individuals.
2535	b.  If the unit is owned by a trust, be an individual
2536	qualified pursuant to s. 617.0802.
2537
2538	These qualifications shall operate on a continuing basis, and
2539	upon the failure of a director at any time to meet a
2540	qualification, the director shall be removed from office and
2541	that office shall be deemed vacant.
2542	(q)  Borrowing.-The borrowing of funds or committing to a
2543	line of credit by the board of administration shall be
2544	considered a special assessment, and any meeting of the board of
2545	administration to discuss such matters must be noticed as
2546	provided in paragraph (c). The board may not borrow funds or
2547	enter into a line of credit or borrow funds for any purpose
2548	unless the specific use of the funds from the loan or line of
2549	credit is set forth in the notice of meeting with the same
2550	specificity as required for a special assessment or unless the
2551	borrowing or line of credit has received the prior approval of
2552	at least two-thirds of the voting interests of the association.
2553	(2)  OPTIONAL PROVISIONS.-The bylaws may provide for the
2554	following:
2555	(a)  Administrative rules.-A method of adopting and of
2556	amending administrative rules and regulations governing the
2557	details of the operation and use of the common areas.
2558	(b)  Use and maintenance restrictions.-Restrictions on, and
2559	requirements for, the use, maintenance, and appearance of the
2560	units and the use of the common areas, not inconsistent with the
2561	cooperative documents, designed to prevent unreasonable
2562	interference with the use of the units and common areas.
2563	(c)  Notice of meetings.-Provisions for giving notice by
2564	electronic transmissions in a manner authorized by law of
2565	meetings of the board of directors and committees and of annual
2566	and special meetings of the members.
2567	(d)  Other matters.-Other provisions not inconsistent with
2568	this chapter or with the cooperative documents as may be
2569	desired.
2570	Section 17.  Section 719.1064, Florida Statutes, is
2571	repealed.
2572	Section 18.  Paragraphs (b) and (c) of subsection (1) and
2573	subsection (2) of section 719.107, Florida Statutes, are
2574	amended, and subsection (3) is added to that section, to read:
2575	719.107  Common expenses; assessment.-
2576	(1)
2577	(b)  If so provided in the bylaws, the cost of a master
2578	antenna television system or duly franchised cable television
2579	service obtained pursuant to a bulk contract shall be deemed a
2580	common expense, and if not obtained pursuant to a bulk contract,
2581	such cost shall be considered common expense if it is designated
2582	as such in a written contract between the board of
2583	administration and the company providing the master television
2584	antenna system or the cable television service. The contract
2585	shall be for a term of not less than 2 years.
2586	1.  Any contract made by the board after April 2, 1992, for
2587	a community antenna system or duly franchised cable television
2588	service may be canceled by a majority of the voting interests
2589	present at the next regular or special meeting of the
2590	association. Any member may make a motion to cancel the
2591	contract, but if no motion is made or if such motion fails to
2592	obtain the required majority at the next regular or special
2593	meeting, whichever is sooner, following the making of the
2594	contract, then such contract shall be deemed ratified for the
2595	term therein expressed.
2596	2.  Any such contract shall provide, and shall be deemed to
2597	provide if not expressly set forth, that any hearing impaired or
2598	legally blind shareholder unit owner who does not occupy the
2599	unit with a nonhearing impaired or sighted person may
2600	discontinue the service without incurring disconnect fees,
2601	penalties, or subsequent service charges, and as to such units,
2602	the shareholders owners shall not be required to pay any common
2603	expenses charge related to such service. If less than all
2604	members of an association share the expenses of cable
2605	television, the expense shall be shared equally by all
2606	participating shareholders unit owners. The association may use
2607	the provisions of s. 719.108 to enforce payment of the shares of
2608	such costs by the shareholders unit owners receiving cable
2609	television.
2610	(c)  If any unpaid share of common expenses or assessments
2611	is extinguished by foreclosure of a superior lien or by a deed
2612	in lieu of foreclosure thereof, the unpaid share of common
2613	expenses or assessments are common expenses collectible from all
2614	the shareholders unit owners in the cooperative in which the
2615	unit is located.
2616	(2)  Funds for the payment of common expenses shall be
2617	collected by assessments against shareholders unit owners in the
2618	proportions or percentages of sharing common expenses provided
2619	in the cooperative documents.
2620	(3)  The expense of installation, replacement, operation,
2621	repair, and maintenance of hurricane shutters or other hurricane
2622	protection by the board pursuant to s. 719.113(5) shall
2623	constitute a common expense as defined in this section and shall
2624	be collected as provided in this section if the association is
2625	responsible for the maintenance, repair, and replacement of the
2626	hurricane shutters or other hurricane protection pursuant to the
2627	cooperative documents. However, if the maintenance, repair, and
2628	replacement of the hurricane shutters or other hurricane
2629	protection is the responsibility of the shareholders pursuant to
2630	the cooperative documents, the cost of the installation of the
2631	hurricane shutters or other hurricane protection shall not be a
2632	common expense, but shall be charged individually to the
2633	shareholders based on the cost of installation of the hurricane
2634	shutters or other hurricane protection appurtenant to the unit.
2635	Notwithstanding the provisions of s. 719.108(8), and regardless
2636	of whether or not the cooperative documents require the
2637	association or shareholders to maintain, repair, or replace
2638	hurricane shutters or other hurricane protection, a shareholder
2639	who has previously installed hurricane shutters in accordance
2640	with s. 719.113(5), other hurricane protection, or laminated
2641	glass architecturally designed to function as hurricane
2642	protection, which hurricane shutters or other hurricane
2643	protection or laminated glass complies with the current
2644	applicable building code, shall receive a credit equal to the
2645	pro rata portion of the assessed installation cost assigned to
2646	each unit. However, such shareholder shall remain responsible
2647	for the pro rata share of expenses for hurricane shutters or
2648	other hurricane protection installed on common areas by the
2649	board pursuant to s. 719.113(5) and shall remain responsible for
2650	a pro rata share of the expense of the replacement, operation,
2651	repair, and maintenance of such shutters or other hurricane
2652	protection.
2653	Section 19.  Section 719.108, Florida Statutes, is amended
2654	to read:
2655	719.108  Rents and assessments; liability; lien and
2656	priority; interest; collection; cooperative ownership.-
2657	(1)  A shareholder unit owner, regardless of how title is
2658	acquired, including, without limitation, a purchaser at a
2659	judicial sale, shall be liable for all rents and assessments
2660	coming due while the shareholder unit owner is in exclusive
2661	possession of a unit. In a voluntary transfer, The shareholder
2662	unit owner in exclusive possession shall be jointly and
2663	severally liable with the previous shareholder unit owner for
2664	all unpaid rents and assessments against the previous
2665	shareholder unit owner for his or her share of the common
2666	expenses up to the time of the transfer, without prejudice to
2667	the rights of the shareholder unit owner in exclusive possession
2668	to recover from a the previous shareholder unit owner the
2669	amounts paid by the shareholder unit owner in exclusive
2670	possession therefor.
2671	(2)  The liability for rents and assessments may not be
2672	avoided by waiver of the use or enjoyment of any common areas or
2673	by abandonment of the unit for which the rents and assessments
2674	are made.
2675	(3)  Rents and assessments, and installments on them, not
2676	paid when due bear interest at the rate provided in the
2677	cooperative documents from the date due until paid. This rate
2678	may not exceed the rate allowed by law, and, if no rate is
2679	provided in the cooperative documents, then interest shall
2680	accrue at 18 percent per annum. Also, if the cooperative
2681	documents or bylaws so provide, the association may charge an
2682	administrative late fee in addition to such interest, in an
2683	amount not to exceed the greater of $25 or 5 percent of each
2684	installment of the assessment for each delinquent installment
2685	that the payment is late. Any payment received by an association
2686	shall be applied first to any interest accrued by the
2687	association, then to any administrative late fee, then to any
2688	costs and reasonable attorney's fees incurred in collection, and
2689	then to the delinquent assessment. The foregoing shall be
2690	applicable notwithstanding any restrictive endorsement,
2691	designation, or instruction placed on or accompanying a payment.
2692	A late fee is not subject to chapter 687 or s. 719.303(3).
2693	(4)  If the association is authorized by the cooperative
2694	documents or bylaws to approve or disapprove a proposed lease of
2695	a unit, the grounds for disapproval may include, but are not
2696	limited to, a shareholder being delinquent in the payment of an
2697	assessment at the time approval is sought.
2698	(5)(a)(4)  The association has shall have a lien on each
2699	cooperative parcel to secure the payment of for any unpaid rents
2700	and assessments, plus interest, against the shareholder who owns
2701	unit owner of the cooperative parcel. If authorized by the
2702	cooperative documents, the said lien shall also secure
2703	reasonable attorney's fees incurred by the association incident
2704	to the collection of the rents and assessments or enforcement of
2705	such lien. The lien is effective from and shall relate back to
2706	and after the recording of the cooperative documents a claim of
2707	lien in the public records in the county in which the
2708	cooperative parcel is located which states the description of
2709	the cooperative parcel, the name of the unit owner, the amount
2710	due, and the due dates.
2711	(b)  To be valid, a claim of lien must state the
2712	description of the cooperative parcel, the name of the record
2713	owner, the name and address of the association, the amount due,
2714	and the due dates. The claim of lien must be executed and
2715	acknowledged by an officer or authorized agent of the
2716	association. The lien shall expire if a claim of lien is not
2717	filed within 1 year after the date the assessment was due, and
2718	no such lien shall continue for a longer period than 1 year
2719	after the claim of lien has been recorded unless, within that
2720	time, an action to enforce the lien is commenced in a court of
2721	competent jurisdiction. The 1-year period shall automatically be
2722	extended for any length of time during which the association is
2723	prevented from filing a foreclosure action by an automatic stay
2724	resulting from a bankruptcy petition filed by the shareholder or
2725	any other person claiming an interest in the parcel. The claim
2726	of lien shall secure all unpaid assessments which are due and
2727	which may accrue subsequent to the recording of the claim of
2728	lien and prior to the entry of a certificate of title, as well
2729	as interest and all reasonable costs and attorney's fees
2730	incurred by the association incident to the collection process.
2731	A notice of delinquency sent to a shareholder shall provide an
2732	overall total of assessments claimed by the association and
2733	shall specify for each assessment or charge the date of the
2734	assessment or charge, the principal balance owed for the
2735	assessment or charge, and affiliated late fees or collection
2736	charges. Costs to a shareholder secured by the association's
2737	claim of lien with regard to collection efforts by management
2738	companies or licensed managers as to any delinquent installment
2739	of an assessment may not exceed $50. However, there shall be no
2740	charge for the first notice of a delinquency to the shareholder.
2741	Upon payment in full, the person making the payment is entitled
2742	to a satisfaction of the lien. No lien may be filed by the
2743	association against a cooperative parcel until 30 days after the
2744	date on which a notice of intent to file a lien has been served
2745	on the unit owner of the cooperative parcel by certified mail or
2746	by personal service in the manner authorized by chapter 48 and
2747	the Florida Rules of Civil Procedure.
2748	(c)  By recording a notice in substantially the following
2749	form, a shareholder or the shareholder's agent or attorney may
2750	require the association to enforce a recorded claim of lien
2751	against his or her cooperative parcel:
2752
2753	NOTICE OF CONTEST OF LIEN
2754
2755	TO:   (Name and address of association)   You are notified
2756	that the undersigned contests the claim of lien filed by you on
2757	_____,   (year)  , and recorded in Official Records Book _____
2758	at Page _____, of the public records of _____ County, Florida,
2759	and that the time within which you may file suit to enforce your
2760	lien is limited to 90 days after the date of service of this
2761	notice. Executed this _____ day of _____,   (year)  .
2762
2763	Signed:   (Shareholder or Attorney)
2764
2765	After notice of contest of lien has been recorded, the clerk of
2766	the circuit court shall mail a copy of the recorded notice to
2767	the association by certified mail, return receipt requested, at
2768	the address shown in the claim of lien or most recent amendment
2769	to the claim of lien and shall certify to the service on the
2770	face of the notice. Service is complete upon mailing. After
2771	service, the association has 90 days in which to file an action
2772	to enforce the lien; and, if the action is not filed within the
2773	90-day period, the lien is void. However, the 90-day period
2774	shall be extended for any length of time that the association is
2775	prevented from filing its action because of an automatic stay
2776	resulting from the filing of a bankruptcy petition by the
2777	shareholder or by any other person claiming an interest in the
2778	parcel.
2779	(6)(a)(5)  Liens for rents and assessments may be
2780	foreclosed by suit brought in the name of the association, in
2781	like manner as a foreclosure of a mortgage on real property. In
2782	any foreclosure, the shareholder unit owner shall pay a
2783	reasonable rental for the cooperative parcel, if so provided in
2784	the cooperative documents, and the plaintiff in the foreclosure
2785	is entitled to the appointment of a receiver to collect the
2786	rent. The association has the power, unless prohibited by the
2787	cooperative documents, to bid on the cooperative parcel at the
2788	foreclosure sale and to acquire and hold, lease, mortgage, or
2789	convey it. Suit to recover a money judgment for unpaid rents and
2790	assessments may be maintained without waiving the lien securing
2791	them.
2792	(b)  A foreclosure judgment may not be entered until at
2793	least 30 days after the association gives written notice to the
2794	shareholder of its intention to foreclose its lien to collect
2795	the unpaid rents and assessments. If this notice is not given at
2796	least 30 days before the foreclosure action is filed and if the
2797	unpaid rents and assessments, including those coming due after
2798	the claim of lien is recorded, are paid before the entry of a
2799	final judgment of foreclosure, the association may not recover
2800	attorney's fees or costs. The notice must be given by delivery
2801	of a copy of it to the shareholder or by certified or registered
2802	mail, return receipt requested, addressed to the shareholder at
2803	his or her last known address; and, upon such mailing, the
2804	notice shall be deemed to have been given, and the court shall
2805	proceed with the foreclosure action and may award attorney's
2806	fees and costs as permitted by law. The notice requirements of
2807	this paragraph are satisfied if the shareholder records a notice
2808	of contest of lien as provided in subsection (5). The notice
2809	requirements of this paragraph do not apply if an action to
2810	foreclose a mortgage on the cooperative unit is pending before
2811	any court; if the rights of the association would be affected by
2812	such foreclosure; and if actual, constructive, or substitute
2813	service of process has been made on the shareholder.
2814	(c)  If the shareholder remains in possession of the unit
2815	after a foreclosure judgment has been entered, the court, in its
2816	discretion, may require the shareholder to pay a reasonable
2817	rental for the unit. If the unit is rented or leased during the
2818	pendency of the foreclosure action, the association is entitled
2819	to the appointment of a receiver to collect the rent. The
2820	expenses of the receiver shall be paid by the party that does
2821	not prevail in the foreclosure action.
2822	(d)  The association has the power to purchase the
2823	cooperative unit at the foreclosure sale and to hold, lease,
2824	mortgage, or convey it.
2825	(7)  Within 15 days after receiving a written request
2826	therefor from a shareholder or his or her designee, or a unit
2827	mortgagee or his or her designee, the association shall provide
2828	a certificate signed by an officer or agent of the association
2829	stating all assessments and other moneys owed to the association
2830	by the shareholder with respect to the cooperative parcel.
2831	(a)  Any person other than the shareholder who relies upon
2832	such certificate shall be protected thereby.
2833	(b)  A summary proceeding pursuant to s. 51.011 may be
2834	brought to compel compliance with this subsection, and in any
2835	such action the prevailing party is entitled to recover
2836	reasonable attorney's fees.
2837	(c)  Notwithstanding any limitation on transfer fees
2838	contained in s. 719.106(1)(i), the association or its authorized
2839	agent may charge a reasonable fee for the preparation of the
2840	certificate. The amount of the fee must be included on the
2841	certificate.
2842	(d)  The authority to charge a fee for the certificate
2843	shall be established by a written resolution adopted by the
2844	board or provided by a written management, bookkeeping, or
2845	maintenance contract and is payable upon the preparation of the
2846	certificate. If the certificate is requested in conjunction with
2847	the sale or mortgage of a unit but the closing does not occur
2848	and no later than 30 days after the closing date for which the
2849	certificate was sought the preparer receives a written request,
2850	accompanied by reasonable documentation, that the sale did not
2851	occur from a payor that is not the shareholder, the fee shall be
2852	refunded to that payor within 30 days after receipt of the
2853	request. The refund is the obligation of the shareholder, and
2854	the association may collect the refund from that shareholder in
2855	the same manner as an assessment as provided in this section.
2856	(6)  Within 15 days after request by a unit owner or
2857	mortgagee, the association shall provide a certificate stating
2858	all assessments and other moneys owed to the association by the
2859	unit owner with respect to the cooperative parcel. Any person
2860	other than the unit owner who relies upon such certificate shall
2861	be protected thereby. Notwithstanding any limitation on transfer
2862	fees contained in s. 719.106(1)(i), the association or its
2863	authorized agent may charge a reasonable fee for the preparation
2864	of the certificate.
2865	(7)  The remedies provided in this section do not exclude
2866	other remedies provided by the cooperative documents and
2867	permitted by law.
2868	(8)(a)  No shareholder unit owner may be excused from the
2869	payment of his or her share of the rents or assessments of a
2870	cooperative unless all shareholders unit owners are likewise
2871	proportionately excused from payment, except as provided in
2872	subsection (6) and in the following cases:
2873	1.  If the cooperative documents so provide, a developer or
2874	other person owning cooperative units offered for sale may be
2875	excused from the payment of the share of the common expenses,
2876	assessments, and rents related to those units for a stated
2877	period of time. The period must terminate no later than the
2878	first day of the fourth calendar month following the month in
2879	which the right of exclusive possession is first granted to a
2880	shareholder unit owner. However, the developer must pay the
2881	portion of common expenses incurred during that period which
2882	exceed the amount assessed against other shareholders unit
2883	owners.
2884	2.  A developer, or other person with an ownership interest
2885	in cooperative units or having an obligation to pay common
2886	expenses, may be excused from the payment of his or her share of
2887	the common expenses which would have been assessed against those
2888	units during the period of time that he or she shall have
2889	guaranteed to each purchaser in the purchase contract or in the
2890	cooperative documents, or by agreement between the developer and
2891	a majority of the shareholders unit owners other than the
2892	developer, that the assessment for common expenses of the
2893	cooperative imposed upon the shareholders unit owners would not
2894	increase over a stated dollar amount and shall have obligated
2895	himself or herself to pay any amount of common expenses incurred
2896	during that period and not produced by the assessments at the
2897	guaranteed level receivable from other shareholders unit owners.
2898	(b)  If the purchase contract, cooperative documents, or
2899	agreement between the developer and a majority of shareholders
2900	unit owners other than the developer provides for the developer
2901	or another person to be excused from the payment of assessments
2902	pursuant to paragraph (a), no funds receivable from shareholders
2903	unit owners payable to the association or collected by the
2904	developer on behalf of the association, other than regular
2905	periodic assessments for common expenses as provided in the
2906	cooperative documents and disclosed in the estimated operating
2907	budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may
2908	be used for payment of common expenses prior to the expiration
2909	of the period during which the developer or other person is so
2910	excused. This restriction applies to funds including, but not
2911	limited to, capital contributions or startup funds collected
2912	from shareholders unit purchasers at closing.
2913	(9)  The specific purposes of any special assessment,
2914	including any contingent special assessment levied in
2915	conjunction with the purchase of an insurance policy authorized
2916	by s. 719.104(3), approved in accordance with the cooperative
2917	documents shall be set forth in a written notice of such
2918	assessment sent or delivered to each shareholder unit owner. The
2919	funds collected pursuant to a special assessment shall be used
2920	only for the specific purpose or purposes set forth in such
2921	notice or returned to the shareholders unit owners. However,
2922	upon completion of such specific purposes, any excess funds
2923	shall be considered common surplus and may, at the discretion of
2924	the board, either be returned to the shareholders unit owners or
2925	applied as a credit toward future assessments.
2926	(10)  During the pendency of any foreclosure action of a
2927	cooperative unit, if the unit is occupied by a tenant and the
2928	shareholder is delinquent in the payment of regular assessments,
2929	the association may demand that the tenant pay to the
2930	association the future regular assessments related to the
2931	cooperative unit. The demand shall be continuing in nature, and
2932	upon demand the tenant shall continue to pay the regular
2933	assessments to the association until the association releases
2934	the tenant or the tenant discontinues tenancy in the unit. The
2935	association shall mail written notice to the shareholder of the
2936	association's demand that the tenant pay regular assessments to
2937	the association. The tenant shall not be liable for increases in
2938	the amount of the regular assessment due unless the tenant was
2939	reasonably notified of the increase prior to the day that the
2940	rent is due. The tenant shall be given a credit against rents
2941	due to the shareholder in the amount of assessments paid to the
2942	association. The association shall, upon request, provide the
2943	tenant with written receipts for payments made. The association
2944	may issue notices under s. 83.56 and may sue for eviction under
2945	ss. 83.59-83.625 as if the association were a landlord under
2946	part II of chapter 83 should the tenant fail to pay an
2947	assessment. However, the association shall not otherwise be
2948	considered a landlord under chapter 83 and shall specifically
2949	not have any duty under s. 83.51. The tenant shall not, by
2950	virtue of payment of assessments, have any of the rights of a
2951	shareholder to vote in any election or to examine the books and
2952	records of the association. A court may supersede the effect of
2953	this subsection by appointing a receiver.
2954	Section 20.  Section 719.113, Florida Statutes, is created
2955	to read:
2956	719.113  Maintenance; limitation upon improvement; display
2957	of flag; hurricane shutters; display of religious decorations.-
2958	(1)  Maintenance of the common areas is the responsibility
2959	of the association. The cooperative documents may provide that
2960	certain limited common areas shall be maintained by those
2961	entitled to use the limited common areas or that the association
2962	shall provide the maintenance, either as a common expense or
2963	with the cost shared only by those entitled to use the limited
2964	common areas. If the maintenance is to be provided by the
2965	association at the expense of only those entitled to use the
2966	limited common areas, the cooperative documents shall describe
2967	in detail the method of apportioning such costs among those
2968	entitled to use the limited common areas. The association may
2969	use the provisions of s. 719.108 to enforce payment of the
2970	shares of such costs by the shareholders entitled to use the
2971	limited common areas.
2972	(2)  Except as otherwise provided in this section, there
2973	shall be no material alteration or substantial additions to the
2974	common areas, except in a manner provided in the cooperative
2975	documents as originally recorded or as amended under the
2976	procedures provided therein. If the cooperative documents as
2977	originally recorded or as amended under the procedures provided
2978	therein do not specify the procedure for approval of material
2979	alterations or substantial additions, 75 percent of the total
2980	voting interests of the association must approve the alterations
2981	or additions. This subsection is intended to clarify existing
2982	law and applies to associations existing on July 1, 2010.
2983	(3)  A shareholder shall not do anything within his or her
2984	unit or on the common areas which would adversely affect the
2985	safety or soundness of the common areas or any portion of the
2986	association property or cooperative property which is to be
2987	maintained by the association.
2988	(4)  Any shareholder may display within the boundaries of
2989	the shareholder's unit one portable, removable United States
2990	flag in a respectful way and, on Armed Forces Day, Memorial Day,
2991	Flag Day, Independence Day, and Veterans' Day, may display in a
2992	respectful way portable, removable official flags, not larger
2993	than 4 1/2 feet by 6 feet, that represent the United States
2994	Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless
2995	of any rule or requirement in the cooperative documents dealing
2996	with flags or decorations.
2997	(5)  Each board of directors shall adopt hurricane shutter
2998	specifications for each building within each cooperative which
2999	shall include color, style, and other factors deemed relevant by
3000	the board. All specifications adopted by the board shall comply
3001	with the applicable building code.
3002	(a)  The board may, subject to the provisions of s.
3003	719.3026 and the approval of a majority of voting interests of
3004	the cooperative, install hurricane shutters or hurricane
3005	protection that complies with or exceeds the applicable building
3006	code, or both, except that a vote of the shareholders is not
3007	required if the maintenance, repair, and replacement of
3008	hurricane shutters or other forms of hurricane protection are
3009	the responsibility of the association pursuant to the
3010	cooperative documents. However, when hurricane protection or
3011	laminated glass or window film architecturally designed to
3012	function as hurricane protection which complies with or exceeds
3013	the current applicable building code has been previously
3014	installed, the board may not install hurricane shutters or other
3015	hurricane protection. Code-compliant impact glass may be
3016	installed by the association as hurricane protection if the area
3017	in which the glass is to be installed is an area that is the
3018	responsibility of the association. Notwithstanding s.
3019	719.107(3), if a shareholder installed code-compliant impact
3020	glass prior to the association voting to install such glass, and
3021	such glass and the frame thereof comply with the current
3022	applicable building codes and are otherwise in good repair, the
3023	shareholder shall not be required to pay the shareholder's pro
3024	rata share of the cost of installing code-compliant impact glass
3025	in the cooperative association.
3026	(b)  The association shall be responsible for the
3027	maintenance, repair, and replacement of the hurricane shutters
3028	or other hurricane protection authorized by this subsection if
3029	such hurricane shutters or other hurricane protection is the
3030	responsibility of the association pursuant to the cooperative
3031	documents. If the hurricane shutters or other hurricane
3032	protection authorized by this subsection are the responsibility
3033	of the shareholders pursuant to the cooperative documents, the
3034	responsibility for the maintenance, repair, and replacement of
3035	such items shall be the responsibility of the shareholder.
3036	(c)  The board may operate hurricane shutters installed
3037	pursuant to this subsection without permission of the
3038	shareholders only when such operation is necessary to preserve
3039	and protect the cooperative property and association property.
3040	The installation, replacement, operation, repair, and
3041	maintenance of such shutters in accordance with the procedures
3042	set forth in this subsection shall not be deemed a material
3043	alteration to the common elements or association property within
3044	the meaning of this section.
3045	(d)  Notwithstanding any provision to the contrary in the
3046	cooperative documents, if approval is required by the documents,
3047	a board may not refuse to approve the installation or
3048	replacement of hurricane shutters by a shareholder conforming to
3049	the specifications adopted by the board.
3050	(6)  As to any cooperative building greater than three
3051	stories in height, at least every 5 years, and within 5 years if
3052	not available for inspection on July 1, 2010, the board shall
3053	have the cooperative building inspected to provide a report
3054	under seal of an architect or engineer authorized to practice in
3055	this state attesting to required maintenance, useful life, and
3056	replacement costs of the common areas. However, if approved by a
3057	majority of the voting interests present at a properly called
3058	meeting of the association, an association may waive this
3059	requirement. Such meeting and approval must occur prior to the
3060	end of the 5-year period and is effective only for that 5-year
3061	period.
3062	(7)  An association may not refuse the request of a
3063	shareholder for a reasonable accommodation for the attachment on
3064	the mantel or frame of the door of the shareholder of a
3065	religious object not to exceed 3 inches wide, 6 inches high, and
3066	1.5 inches deep.
3067	(8)  Notwithstanding the provisions of this section or the
3068	governing documents of a cooperative association, the board of
3069	directors may, without any requirement for approval of the
3070	shareholders, install upon or within the common areas or
3071	association property solar collectors, clotheslines, or other
3072	energy-efficient devices based on renewable resources for the
3073	benefit of the shareholders.
3074	Section 21.  Section 719.117, Florida Statutes, is created
3075	to read:
3076	719.117  Termination of cooperative.-
3077	(1)  LEGISLATIVE FINDINGS.-The Legislature finds that
3078	cooperatives are created as authorized by statute. In
3079	circumstances that may create economic waste, areas of
3080	disrepair, or obsolescence of a cooperative property for its
3081	intended use and thereby lower property tax values, the
3082	Legislature further finds that it is the public policy of this
3083	state to provide by statute a method to preserve the value of
3084	the property interests and the rights of alienation thereof that
3085	shareholders have in the cooperative property before and after
3086	termination. The Legislature further finds that it is contrary
3087	to the public policy of this state to require the continued
3088	operation of a cooperative when to do so constitutes economic
3089	waste or when the ability to do so is made impossible by law or
3090	regulation. This section applies to all cooperatives in this
3091	state in existence on or after July 1, 2010.
3092	(2)  TERMINATION BECAUSE OF ECONOMIC WASTE OR
3093	IMPOSSIBILITY.-
3094	(a)  Notwithstanding any provision to the contrary in the
3095	cooperative documents, the cooperative form of ownership of a
3096	property may be terminated by a plan of termination approved by
3097	the lesser of the lowest percentage of voting interests
3098	necessary to amend the articles of incorporation when:
3099	1.  The total estimated cost of repairs necessary to
3100	restore the improvements to their former condition or bring them
3101	into compliance with applicable laws or regulations exceeds the
3102	combined fair market value of all units in the cooperative after
3103	completion of the repairs; or
3104	2.  It becomes impossible to operate or reconstruct a
3105	cooperative in its prior physical configuration because of land
3106	use laws or regulations.
3107	(b)  Notwithstanding paragraph (a), a cooperative in which
3108	75 percent or more of the units are timeshare units may be
3109	terminated only pursuant to a plan of termination approved by 80
3110	percent of the total voting interests of the association and the
3111	holders of 80 percent of the original principal amount of
3112	outstanding recorded mortgage liens of timeshare estates in the
3113	cooperative, unless the cooperative documents provide for a
3114	lower voting percentage.
3115	(3)  OPTIONAL TERMINATION.-Except as provided in subsection
3116	(2) or unless the cooperative documents provide for a lower
3117	percentage, the cooperative form of ownership of the property
3118	may be terminated pursuant to a plan of termination approved by
3119	at least 80 percent of the total voting interests of the
3120	cooperative if not more than 10 percent of the total voting
3121	interests of the cooperative have rejected the plan of
3122	termination by negative vote or by providing written objections
3123	thereto. This subsection does not apply to cooperatives in which
3124	75 percent or more of the units are timeshare units.
3125	(4)  EXEMPTION.-A plan of termination is not an amendment
3126	subject to s. 719.1055(1).
3127	(5)  MORTGAGE LIENHOLDERS.-Notwithstanding any provision to
3128	the contrary in the cooperative documents or this chapter,
3129	approval of a plan of termination by the holder of a recorded
3130	mortgage lien affecting a cooperative parcel in which fewer than
3131	75 percent of the units are timeshare units is not required
3132	unless the plan of termination will result in less than the full
3133	satisfaction of the mortgage lien affecting the cooperative
3134	parcel. If such approval is required and not given, a holder of
3135	a recorded mortgage lien who objects to the plan of termination
3136	may contest the plan as provided in subsection (16). At the time
3137	of sale, the lien shall be transferred to the proportionate
3138	share of the proceeds assigned to the cooperative parcel in the
3139	plan of termination or as subsequently modified by the court.
3140	(6)  POWERS IN CONNECTION WITH TERMINATION.-The approval of
3141	the plan of termination does not terminate the association. The
3142	association shall continue in existence following approval of
3143	the plan of termination with all powers and duties it had before
3144	approval of the plan. Notwithstanding any provision to the
3145	contrary in the cooperative documents or bylaws, after approval
3146	of the plan the board shall:
3147	(a)  Employ directors, agents, attorneys, and other
3148	professionals to liquidate or conclude its affairs.
3149	(b)  Conduct the affairs of the association as necessary
3150	for the liquidation or termination.
3151	(c)  Carry out contracts and collect, pay, and settle debts
3152	and claims for and against the association.
3153	(d)  Defend suits brought against the association.
3154	(e)  Sue in the name of the association for all sums due or
3155	owed to the association or to recover any of its property.
3156	(f)  Perform any act necessary to maintain, repair, or
3157	demolish unsafe or uninhabitable improvements or other
3158	cooperative property in compliance with applicable codes.
3159	(g)  Sell at public or private sale or exchange, convey, or
3160	otherwise dispose of assets of the association for an amount
3161	deemed to be in the best interests of the association, and
3162	execute bills of sale and deeds of conveyance in the name of the
3163	association.
3164	(h)  Collect and receive rents, profits, accounts
3165	receivable, income, maintenance fees, special assessments, or
3166	insurance proceeds for the association.
3167	(i)  Contract and do anything in the name of the
3168	association which is proper or convenient to terminate the
3169	affairs of the association.
3170	(7)  NATURAL DISASTERS.-
3171	(a)  If, after a natural disaster, the identity of the
3172	directors or their right to hold office is in doubt, if they are
3173	deceased or unable to act, if they fail or refuse to act, or if
3174	they cannot be located, any interested person may petition the
3175	circuit court to determine the identity of the directors or, if
3176	found to be in the best interests of the shareholders, to
3177	appoint a receiver to conclude the affairs of the association
3178	after a hearing following notice to such persons as the court
3179	directs. Lienholders shall be given notice of the petition and
3180	have the right to propose persons for the consideration by the
3181	court as receiver. If a receiver is appointed, the court shall
3182	direct the receiver to provide to all shareholders written
3183	notice of his or her appointment as receiver. Such notice shall
3184	be mailed or delivered within 10 days after the appointment.
3185	Notice by mail to a shareholder shall be sent to the address
3186	used by the county property appraiser for notice to the
3187	shareholder.
3188	(b)  The receiver shall have all powers given to the board
3189	pursuant to the cooperative documents, bylaws, and subsection
3190	(6) and any other powers that are necessary to conclude the
3191	affairs of the association and are set forth in the order of
3192	appointment. The appointment of the receiver is subject to the
3193	bonding requirements of such order. The order shall also provide
3194	for the payment of a reasonable fee to the receiver from the
3195	sources identified in the order, which may include rents,
3196	profits, incomes, maintenance fees, or special assessments
3197	collected from the cooperative property.
3198	(8)  REPORTS AND REPLACEMENT OF RECEIVER.-
3199	(a)  The association, receiver, or termination trustee
3200	shall prepare reports each quarter following the approval of the
3201	plan of termination setting forth the status and progress of the
3202	termination, the costs and fees incurred, the date the
3203	termination is expected to be completed, and the current
3204	financial condition of the association, receivership, or
3205	trusteeship and provide copies of the report by regular mail to
3206	the shareholders and lienors at the mailing address provided to
3207	the association by the shareholders and the lienors.
3208	(b)  The shareholders of an association in termination may
3209	recall or remove members of the board of administration with or
3210	without cause at any time as provided in s. 718.106(1)(f).
3211	(c)  The lienors of an association in termination
3212	representing at least 50 percent of the outstanding amount of
3213	liens may petition the court for the appointment of a
3214	termination trustee, which shall be granted upon good cause
3215	shown.
3216	(9)  PLAN OF TERMINATION.-The plan of termination must be a
3217	written document executed in the same manner as a deed by
3218	shareholders having the requisite percentage of voting interests
3219	to approve the plan and by the termination trustee. A copy of
3220	the proposed plan of termination shall be given to all
3221	shareholders, in the same manner as provided for notice of an
3222	annual meeting, at least 14 days prior to the meeting at which
3223	the plan of termination is to be voted upon or prior to or
3224	simultaneously with the distribution of the solicitation seeking
3225	execution of the plan of termination or written consent to or
3226	joinder in the plan. A shareholder may document assent to the
3227	plan by executing the plan or by consent to or joinder in the
3228	plan in the manner of a deed. A plan of termination and the
3229	consents or joinders of shareholders and, if required, consents
3230	or joinders of mortgagees must be recorded in the public records
3231	of each county in which any portion of the cooperative is
3232	located. The plan is effective only upon recordation or at a
3233	later date specified in the plan.
3234	(10)  PLAN OF TERMINATION; REQUIRED PROVISIONS.-The plan of
3235	termination must specify:
3236	(a)  The name, address, and powers of the termination
3237	trustee.
3238	(b)  A date after which the plan of termination is void if
3239	it has not been recorded.
3240	(c)  The interests of the respective shareholders in the
3241	association property, common surplus, and other assets of the
3242	association, which shall be the same as the respective interests
3243	of the shareholders in the common areas immediately before the
3244	termination, unless otherwise provided in the cooperative
3245	documents.
3246	(d)  The interests of the respective shareholders in any
3247	proceeds from the sale of the cooperative property. The plan of
3248	termination may apportion those proceeds pursuant to any method
3249	prescribed in subsection (12). If, pursuant to the plan of
3250	termination, cooperative property or real property owned by the
3251	association is to be sold following termination, the plan must
3252	provide for the sale and may establish any minimum sale terms.
3253	(e)  Any interests of the respective shareholders in
3254	insurance proceeds or condemnation proceeds that are not used
3255	for repair or reconstruction at the time of termination. Unless
3256	the cooperative documents expressly address the distribution of
3257	insurance proceeds or condemnation proceeds, the plan of
3258	termination may apportion those proceeds pursuant to any method
3259	prescribed in subsection (12).
3260	(11)  PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
3261	TERMINATION.-
3262	(a)  The plan of termination may provide that each
3263	shareholder retains the exclusive right of possession to the
3264	portion of the real estate that formerly constituted the unit,
3265	in which case the plan must specify the conditions of
3266	possession.
3267	(b)  In a conditional termination, the plan must specify
3268	the conditions for termination. A conditional plan does not vest
3269	title in the termination trustee until the plan and a
3270	certificate executed by the association with the formalities of
3271	a deed, confirming that the conditions in the conditional plan
3272	have been satisfied or waived by the requisite percentage of the
3273	voting interests, have been recorded.
3274	(12)  ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE
3275	PROPERTY.-
3276	(a)  Unless the cooperative documents expressly provide for
3277	the allocation of the proceeds of sale of cooperative property,
3278	the plan of termination must first apportion the proceeds
3279	between the aggregate value of all units and the value of the
3280	common areas, based on their respective fair market values
3281	immediately before the termination, as determined by one or more
3282	independent appraisers selected by the association or
3283	termination trustee.
3284	(b)  The portion of proceeds allocated to the units shall
3285	be further apportioned among the individual units. The
3286	apportionment is deemed fair and reasonable if it is so
3287	determined by the shareholders, who may approve the plan of
3288	termination by any of the following methods:
3289	1.  The respective values of the units based on the fair
3290	market values of the units immediately before the termination,
3291	as determined by one or more independent appraisers selected by
3292	the association or termination trustee;
3293	2.  The respective values of the units based on the most
3294	recent market value of the units before the termination, as
3295	provided in the county property appraiser's records; or
3296	3.  The respective interests of the units in the common
3297	elements specified in the cooperative documents immediately
3298	before the termination.
3299	(c)  The methods of apportionment in paragraph (b) do not
3300	prohibit any other method of apportioning the proceeds of sale
3301	allocated to the units agreed upon in the plan of termination.
3302	The portion of the proceeds allocated to the common elements
3303	shall be apportioned among the units based upon their respective
3304	interests in the common areas as provided in the cooperative
3305	documents.
3306	(d)  Liens that encumber a unit shall be transferred to the
3307	proceeds of sale of the cooperative property and the proceeds of
3308	sale or other distribution of association property, common
3309	surplus, or other association assets attributable to such unit
3310	in their same priority. The proceeds of any sale of cooperative
3311	property pursuant to a plan of termination may not be deemed to
3312	be common surplus or association property.
3313	(13)  TERMINATION TRUSTEE.-The association shall serve as
3314	termination trustee unless another person is appointed in the
3315	plan of termination. If the association is unable or unwilling
3316	or fails to act as trustee, any shareholder may petition the
3317	court to appoint a trustee. Upon the date of the recording or at
3318	a later date specified in the plan, title to the cooperative
3319	property vests in the trustee. Unless prohibited by the plan,
3320	the termination trustee shall be vested with the powers given to
3321	the board pursuant to the cooperative documents, bylaws, and
3322	subsection (6). If the association is not the termination
3323	trustee, the trustee's powers shall be coextensive with those of
3324	the association to the extent not prohibited in the plan of
3325	termination or the order of appointment. If the association is
3326	not the termination trustee, the association shall transfer any
3327	association property to the trustee. If the association is
3328	dissolved, the trustee shall also have such other powers
3329	necessary to conclude the affairs of the association.
3330	(14)  TITLE VESTED IN TERMINATION TRUSTEE.-If termination
3331	is pursuant to a plan of termination under subsection (2) or
3332	subsection (3), the shareholders' rights and title as tenants in
3333	common in undivided interests in the cooperative property vest
3334	in the termination trustee when the plan is recorded or at a
3335	later date specified in the plan. The shareholders thereafter
3336	become the beneficiaries of the proceeds realized from the plan
3337	of termination. The termination trustee may deal with the
3338	cooperative property or any interest therein if the plan confers
3339	on the trustee the authority to protect, conserve, manage, sell,
3340	or dispose of the cooperative property. The trustee, on behalf
3341	of the shareholders, may contract for the sale of real property,
3342	but the contract is not binding on the shareholders until the
3343	plan is approved pursuant to subsection (2) or subsection (3).
3344	(15)  NOTICE.-
3345	(a)  Within 30 days after a plan of termination has been
3346	recorded, the termination trustee shall deliver by certified
3347	mail, return receipt requested, notice to all shareholders,
3348	lienors of the cooperative property, and lienors of all units at
3349	their last known addresses that a plan of termination has been
3350	recorded. The notice must include the book and page number of
3351	the public records in which the plan was recorded, notice that a
3352	copy of the plan shall be furnished upon written request, and
3353	notice that the shareholder or lienor has the right to contest
3354	the fairness of the plan.
3355	(b)  The trustee, within 90 days after the effective date
3356	of the plan, shall provide to the division a certified copy of
3357	the recorded plan, the date the plan was recorded, and the
3358	county, book, and page number of the public records in which the
3359	plan is recorded.
3360	(16)  RIGHT TO CONTEST.-A shareholder or lienor may contest
3361	a plan of termination by initiating a summary procedure pursuant
3362	to s. 51.011 within 90 days after the date the plan is recorded.
3363	A shareholder or lienor who does not contest the plan within the
3364	90-day period is barred from asserting or prosecuting a claim
3365	against the association, the termination trustee, any
3366	shareholder, or any successor in interest to the cooperative
3367	property. In an action contesting a plan of termination, the
3368	person contesting the plan has the burden of pleading and
3369	proving that the apportionment of the proceeds from the sale
3370	among the shareholders was not fair and reasonable. The
3371	apportionment of sale proceeds is presumed fair and reasonable
3372	if it was determined pursuant to the methods prescribed in
3373	subsection (12). The court shall determine the rights and
3374	interests of the parties and order the plan of termination to be
3375	implemented if it is fair and reasonable. If the court
3376	determines that the plan of termination is not fair and
3377	reasonable, the court may void the plan or may modify the plan
3378	to apportion the proceeds in a fair and reasonable manner
3379	pursuant to this section based upon the proceedings and order
3380	the modified plan of termination to be implemented. In such
3381	action, the prevailing party shall recover reasonable attorney's
3382	fees and costs.
3383	(17)  DISTRIBUTION.-
3384	(a)  Following termination of the cooperative, the
3385	cooperative property, association property, common surplus, and
3386	other assets of the association shall be held by the termination
3387	trustee, as trustee for shareholders and holders of liens on the
3388	units, in their order of priority.
3389	(b)  Not less than 30 days before the first distribution,
3390	the termination trustee shall deliver by certified mail, return
3391	receipt requested, a notice of the estimated distribution to all
3392	shareholders, lienors of the cooperative property, and lienors
3393	of each unit at their last known addresses stating a good faith
3394	estimate of the amount of the distributions to each class and
3395	the procedures and deadline for notifying the termination
3396	trustee of any objections to the amount. The deadline must be at
3397	least 15 days after the date the notice was mailed. The notice
3398	may be sent with or after the notice required by subsection
3399	(15). If a shareholder or lienor files a timely objection with
3400	the termination trustee, the trustee need not distribute the
3401	funds and property allocated to the respective shareholder or
3402	lienor until the trustee has had a reasonable time to determine
3403	the validity of the adverse claim. In the alternative, the
3404	trustee may interplead the shareholder, the lienor, and any
3405	other person claiming an interest in the unit and deposit the
3406	funds allocated to the unit in the court registry, at which time
3407	the cooperative property, association property, common surplus,
3408	and other assets of the association are free of all claims and
3409	liens of the parties to the suit. In an interpleader action, the
3410	trustee and prevailing party may recover reasonable attorney's
3411	fees and costs.
3412	(c)  The proceeds from any sale of cooperative property or
3413	association property and any remaining cooperative property or
3414	association property, common surplus, and other assets shall be
3415	distributed in the following priority:
3416	1.  To pay the reasonable termination trustee's fees and
3417	costs and accounting fees and costs.
3418	2.  To lienholders of liens recorded prior to the recording
3419	of the cooperative documents.
3420	3.  To purchase-money lienholders on units to the extent
3421	necessary to satisfy their liens; however, the distribution may
3422	not exceed a shareholder's share of the proceeds.
3423	4.  To creditors of the association, as their interests
3424	appear.
3425	5.  To shareholders, the proceeds of any sale of
3426	cooperative property subject to satisfaction of liens on each
3427	unit in their order of priority, in shares specified in the plan
3428	of termination, unless objected to by a shareholder or lienor as
3429	provided in paragraph (b).
3430	6.  To shareholders, the remaining cooperative property,
3431	subject to satisfaction of liens on each unit in their order of
3432	priority, in shares specified in the plan of termination, unless
3433	objected to by a shareholder or lienor as provided in paragraph
3434	(b).
3435	7.  To shareholders, the proceeds of any sale of
3436	association property, the remaining association property, common
3437	surplus, and other assets of the association, subject to
3438	satisfaction of liens on each unit in their order of priority,
3439	in shares specified in the plan of termination, unless objected
3440	to by a shareholder or lienor as provided in paragraph (b).
3441	(d)  After determining that all known debts and liabilities
3442	of an association in the process of termination have been paid
3443	or adequately provided for, the termination trustee shall
3444	distribute the remaining assets pursuant to the plan of
3445	termination. If the termination is by court proceeding or
3446	subject to court supervision, the distribution may not be made
3447	until any period for the presentation of claims ordered by the
3448	court has elapsed.
3449	(e)  Assets held by an association upon a valid condition
3450	requiring return, transfer, or conveyance, which condition has
3451	occurred or will occur, shall be returned, transferred, or
3452	conveyed in accordance with the condition. The remaining
3453	association assets shall be distributed pursuant to paragraph
3454	(c).
3455	(f)  Distribution may be made in money, property, or
3456	securities and in installments or as a lump sum, if it can be
3457	done fairly and ratably and in conformity with the plan of
3458	termination. Distribution shall be made as soon as is reasonably
3459	consistent with the beneficial liquidation of the assets.
3460	(18)  ASSOCIATION STATUS.-The termination of a cooperative
3461	does not change the corporate status of the association that
3462	operated the cooperative property. The association continues to
3463	exist to conclude its affairs, prosecute and defend actions by
3464	or against it, collect and discharge obligations, dispose of and
3465	convey its property, and collect and divide its assets, but not
3466	to act except as necessary to conclude its affairs.
3467	(19)  CREATION OF ANOTHER COOPERATIVE.-The termination of a
3468	cooperative does not bar the creation by the termination trustee
3469	of another cooperative affecting any portion of the same
3470	property.
3471	Section 22.  Section 719.1224, Florida Statutes, is created
3472	to read:
3473	719.1224  Prohibition against SLAPP suits.-
3474	(1)  It is the intent of the Legislature to protect the
3475	right of cooperative shareholders to exercise their rights to
3476	instruct their representatives and petition for redress of
3477	grievances before the various governmental entities of this
3478	state as protected by the First Amendment to the United States
3479	Constitution and s. 5, Art. I of the State Constitution. The
3480	Legislature recognizes that strategic lawsuits against public
3481	participation, or "SLAPP suits," as they are typically referred
3482	to, have occurred when association members are sued by
3483	individuals, business entities, or governmental entities arising
3484	out of a cooperative shareholder's appearance and presentation
3485	before a governmental entity on matters related to the
3486	cooperative association. However, it is the public policy of
3487	this state that governmental entities, business organizations,
3488	and individuals not engage in SLAPP suits because such actions
3489	are inconsistent with the right of cooperative shareholders to
3490	participate in the state's institutions of government.
3491	Therefore, the Legislature finds and declares that prohibiting
3492	such lawsuits by governmental entities, business entities, and
3493	individuals against cooperative shareholders who address matters
3494	concerning their cooperative association will preserve this
3495	fundamental state policy, preserve the constitutional rights of
3496	cooperative shareholders, and ensure the continuation of
3497	representative government in this state. It is the intent of the
3498	Legislature that such lawsuits be expeditiously disposed of by
3499	the courts. As used in this subsection, the term "governmental
3500	entity" means the state, including the executive, legislative,
3501	and judicial branches of government; the independent
3502	establishments of the state, counties, municipalities,
3503	districts, authorities, boards, or commissions; or any agencies
3504	of these branches that are subject to chapter 286.
3505	(2)  A governmental entity, business organization, or
3506	individual in this state may not file or cause to be filed
3507	through its employees or agents any lawsuit, cause of action,
3508	claim, cross-claim, or counterclaim against a cooperative
3509	shareholder without merit and solely because such cooperative
3510	shareholder has exercised the right to instruct his or her
3511	representatives or the right to petition for redress of
3512	grievances before the various governmental entities of this
3513	state, as protected by the First Amendment to the United States
3514	Constitution and s. 5, Art. I of the State Constitution.
3515	(3)  A cooperative shareholder sued by a governmental
3516	entity, business organization, or individual in violation of
3517	this section has a right to an expeditious resolution of a claim
3518	that the suit is in violation of this section. A cooperative
3519	shareholder may petition the court for an order dismissing the
3520	action or granting final judgment in favor of that cooperative
3521	shareholder. The petitioner may file a motion for summary
3522	judgment, together with supplemental affidavits, seeking a
3523	determination that the lawsuit brought by the governmental
3524	entity, business organization, or individual is in violation of
3525	this section. The governmental entity, business organization, or
3526	individual shall thereafter file a response and any supplemental
3527	affidavits. As soon as practicable, the court shall set a
3528	hearing on the petitioner's motion, which shall be held at the
3529	earliest possible time after the filing of the response of the
3530	governmental entity, business organization, or individual. The
3531	court may award the cooperative shareholder sued by the
3532	governmental entity, business organization, or individual actual
3533	damages arising from the violation of this section by the
3534	governmental entity, individual, or business organization. A
3535	court may treble the damages awarded to a prevailing cooperative
3536	shareholder and shall state the basis for the treble damages
3537	award in its judgment. The court shall award the prevailing
3538	party reasonable attorney's fees and costs incurred in
3539	connection with a claim that an action was filed in violation of
3540	this section.
3541	(4)  Cooperative associations may not expend association
3542	funds in prosecuting a SLAPP suit against a cooperative
3543	shareholder.
3544	Section 23.  Section 719.1255, Florida Statutes, is amended
3545	to read:
3546	719.1255  Alternative resolution of disputes.-The Division
3547	of Florida Condominiums, Timeshares, and Mobile Homes of the
3548	Department of Business and Professional Regulation shall provide
3549	for alternative dispute resolution of matters related to
3550	cooperative associations and shareholders in a manner like that
3551	provided to condominium associations and unit owners in
3552	accordance with s. 718.1255.
3553	Section 24.  Section 719.1265, Florida Statutes, is created
3554	to read:
3555	719.1265  Association emergency powers.-
3556	(1)  To the extent allowed by law and unless specifically
3557	prohibited by the cooperative documents or the bylaws of an
3558	association, and consistent with the provisions of s. 617.0830,
3559	the board of directors, in response to damage caused by an event
3560	for which a state of emergency is declared pursuant to s. 252.36
3561	in the locale in which the cooperative is located, may, but is
3562	not required to, exercise the following powers:
3563	(a)  Conduct board meetings and shareholder meetings with
3564	notice given as is practicable. Such notice may be given in any
3565	practicable manner, including publication, radio, United States
3566	mail, the Internet, public service announcements, and
3567	conspicuous posting on the cooperative property or any other
3568	means the board deems reasonable under the circumstances. Notice
3569	of board decisions may be communicated as provided in this
3570	paragraph.
3571	(b)  Cancel and reschedule any association meeting.
3572	(c)  Name as assistant officers persons who are not
3573	directors, which assistant officers shall have the same
3574	authority as the executive officers for whom they are named as
3575	assistants during the state of emergency to accommodate the
3576	incapacity or unavailability of any officer of the association.
3577	(d)  Relocate the association's principal office or
3578	designate alternative principal offices.
3579	(e)  Enter into agreements with local counties and
3580	municipalities to assist those counties and municipalities with
3581	debris removal.
3582	(f)  Implement a disaster plan before or immediately
3583	following the event for which a state of emergency is declared,
3584	which may include, but is not limited to, shutting down or off
3585	elevators; electricity; water, sewer, or security systems; or
3586	air conditioners.
3587	(g)  Based upon the advice of emergency management
3588	officials or licensed professionals retained by the board,
3589	determine any portion of the cooperative property unavailable
3590	for entry or occupancy by shareholders, family members, tenants,
3591	guests, agents, or invitees to protect the health, safety, or
3592	welfare of such persons.
3593	(h)  Require the evacuation of the cooperative property in
3594	the event of a mandatory evacuation order in the locale in which
3595	the cooperative is located. Should any shareholder or other
3596	occupant of a cooperative fail or refuse to evacuate the
3597	cooperative property when the board has required evacuation, the
3598	association shall be immune from liability or injury to persons
3599	or property arising from such failure or refusal.
3600	(i)  Based upon the advice of emergency management
3601	officials or licensed professionals retained by the board,
3602	determine whether the cooperative property can be safely
3603	inhabited or occupied. However, such determination is not
3604	conclusive as to any determination of habitability pursuant to
3605	the cooperative documents.
3606	(j)  Mitigate further damage, including taking action to
3607	contract for the removal of debris and to prevent or mitigate
3608	the spread of fungus, including, but not limited to, mold or
3609	mildew, by removing and disposing of wet drywall, insulation,
3610	carpet, cabinetry, or other fixtures on or within the
3611	cooperative property, even if the shareholder is obligated by
3612	the cooperative documents or law to insure or replace those
3613	fixtures and to remove personal property from a unit.
3614	(k)  Contract, on behalf of any shareholder or
3615	shareholders, for items or services for which the shareholder or
3616	shareholders are otherwise individually responsible, but which
3617	are necessary to prevent further damage to the cooperative
3618	property. In such event, the shareholder or shareholders on
3619	whose behalf the board has contracted are responsible for
3620	reimbursing the association for the actual costs of the items or
3621	services, and the association may use its lien authority
3622	provided by s. 719.108 to enforce collection of the charges.
3623	Without limitation, such items or services may include the
3624	drying of units, the boarding of broken windows or doors, and
3625	the replacement of damaged air conditioners or air handlers to
3626	provide climate control in the units or other portions of the
3627	property.
3628	(l)  Regardless of any provision to the contrary and even
3629	if such authority does not specifically appear in the
3630	cooperative documents or bylaws of the association, levy special
3631	assessments without a vote of the shareholders.
3632	(m)  Without shareholders' approval, borrow money and
3633	pledge association assets as collateral to fund emergency
3634	repairs and carry out the duties of the association when
3635	operating funds are insufficient. This paragraph does not limit
3636	the general authority of the association to borrow money,
3637	subject to such restrictions as are contained in the cooperative
3638	documents or bylaws of the association.
3639	(2)  The special powers authorized under subsection (1)
3640	shall be limited to the time reasonably necessary to protect the
3641	health, safety, and welfare of the association and the
3642	shareholders and the shareholders' family members, tenants,
3643	guests, agents, or invitees and the time reasonably necessary to
3644	mitigate further damage and make emergency repairs.
3645	Additionally, unless 20 percent or more of the units are made
3646	uninhabitable by the emergency, the special powers authorized
3647	under subsection (1) may only be exercised during the term of
3648	the Governor's executive order or proclamation declaring the
3649	state of emergency in the locale in which the cooperative
3650	property is located.
3651	Section 25.  Subsections (1) and (4) of section 719.301,
3652	Florida Statutes, are amended to read:
3653	719.301  Transfer of association control.-
3654	(1)  When shareholders unit owners other than the developer
3655	own 15 percent or more of the units in a cooperative that will
3656	be operated ultimately by an association, the shareholders unit
3657	owners other than the developer shall be entitled to elect not
3658	less than one-third of the members of the board of
3659	administration of the association. Shareholders Unit owners
3660	other than the developer are entitled to elect not less than a
3661	majority of the members of the board of administration of an
3662	association:
3663	(a)  Three years after 50 percent of the units that will be
3664	operated ultimately by the association have been conveyed to
3665	purchasers;
3666	(b)  Three months after 90 percent of the units that will
3667	be operated ultimately by the association have been conveyed to
3668	purchasers;
3669	(c)  When all the units that will be operated ultimately by
3670	the association have been completed, some have been conveyed to
3671	purchasers, and none of the others are being offered for sale by
3672	the developer in the ordinary course of business;
3673	(d)  When some of the units have been conveyed to
3674	purchasers and none of the others are being constructed or
3675	offered for sale by the developer in the ordinary course of
3676	business; or
3677	(e)  When the developer files a petition seeking protection
3678	in bankruptcy;
3679	(f)  When a receiver for the developer is appointed by a
3680	circuit court and is not discharged within 30 days after such
3681	appointment; or
3682	(g)(e)  Seven years after creation of the cooperative
3683	association,
3684
3685	whichever occurs first. The developer is entitled to elect at
3686	least one member of the board of administration of an
3687	association as long as the developer holds for sale in the
3688	ordinary course of business at least 5 percent in cooperatives
3689	with fewer than 500 units and 2 percent in cooperatives with 500
3690	or more units in a cooperative operated by the association.
3691	After the developer relinquishes control of the association, the
3692	developer may exercise the right to vote any developer-owned
3693	units in the same manner as any other shareholder unit owner
3694	except for purposes of reacquiring control of the association or
3695	selecting the majority of the members of the board.
3696	(4)  When shareholders unit owners other than the developer
3697	elect a majority of the members of the board of administration
3698	of an association, the developer shall relinquish control of the
3699	association, and the shareholders unit owners shall accept
3700	control. Simultaneously, or for the purpose of paragraph (c) not
3701	more than 90 days thereafter, the developer shall deliver to the
3702	association, at the developer's expense, all property of the
3703	shareholders unit owners and of the association held or
3704	controlled by the developer, including, but not limited to, the
3705	following items, if applicable, as to each cooperative operated
3706	by the association:
3707	(a)1.  The original or a photocopy of the recorded
3708	cooperative documents and all amendments thereto. If a photocopy
3709	is provided, it shall be certified by affidavit of the
3710	developer, or an officer or agent of the developer, as being a
3711	complete copy of the actual recorded cooperative documents.
3712	2.  A certified copy of the association's articles of
3713	incorporation, or if it is not incorporated, then copies of the
3714	documents creating the association.
3715	3.  A copy of the bylaws.
3716	4.  The minute books, including all minutes, and other
3717	books and records of the association, if any.
3718	5.  Any house rules and regulations which have been
3719	promulgated.
3720	(b)  Resignations of officers and members of the board of
3721	administration who are required to resign because the developer
3722	is required to relinquish control of the association.
3723	(c)  The financial records, including financial statements
3724	of the association, and source documents since the incorporation
3725	of the association through the date of turnover. The records
3726	shall be audited for the period of the incorporation of the
3727	association or for the period covered by the last audit, if an
3728	audit has been performed for each fiscal year since
3729	incorporation, by an independent certified public accountant.
3730	All financial statements shall be prepared in accordance with
3731	generally accepted accounting standards and shall be audited in
3732	accordance with generally accepted auditing standards as
3733	prescribed by the Board of Accountancy. The accountant
3734	performing the review shall examine to the extent necessary
3735	supporting documents and records, including the cash
3736	disbursements and related paid invoices to determine if
3737	expenditures were for association purposes and the billings,
3738	cash receipts, and related records to determine that the
3739	developer was charged and paid the proper amounts of
3740	assessments.
3741	(d)  Association funds or control thereof.
3742	(e)  All tangible personal property that is property of the
3743	association, represented by the developer to be part of the
3744	common areas or ostensibly part of the common areas, and an
3745	inventory of that property.
3746	(f)  A copy of the plans and specifications utilized in the
3747	construction or remodeling of improvements and the supplying of
3748	equipment to the cooperative and in the construction and
3749	installation of all mechanical components serving the
3750	improvements and the site, with a certificate in affidavit form
3751	of the developer, the developer's agent, or an architect or
3752	engineer authorized to practice in this state that such plans
3753	and specifications represent, to the best of their knowledge and
3754	belief, the actual plans and specifications utilized in the
3755	construction and improvement of the cooperative property and for
3756	the construction and installation of the mechanical components
3757	serving the improvements. If the cooperative property has been
3758	organized as a cooperative more than 3 years after the
3759	completion of construction or remodeling of the improvements,
3760	the requirements of this paragraph shall not apply.
3761	(g)  A list of the names and addresses, of which the
3762	developer had knowledge at any time in the development of the
3763	cooperative, of all contractors, subcontractors, and suppliers
3764	utilized in the construction or remodeling of the improvements
3765	and in the landscaping.
3766	(h)  Insurance policies.
3767	(i)  Copies of any certificates of occupancy which may have
3768	been issued for the cooperative property.
3769	(j)  Any other permits issued by governmental bodies
3770	applicable to the cooperative property in force or issued within
3771	1 year prior to the date the shareholders unit owners other than
3772	the developer take control of the association.
3773	(k)  All written warranties of the contractor,
3774	subcontractors, suppliers, and manufacturers, if any, that are
3775	still effective.
3776	(l)  A roster of shareholders unit owners and their
3777	addresses and telephone numbers, if known, as shown on the
3778	developer's records.
3779	(m)  Leases of the common areas and other leases to which
3780	the association is a party.
3781	(n)  Employment contracts or service contracts in which the
3782	association is one of the contracting parties or service
3783	contracts in which the association or the shareholders unit
3784	owners have an obligation or responsibility, directly or
3785	indirectly, to pay some or all of the fee or charge of the
3786	person or persons performing the service.
3787	(o)  All other contracts to which the association is a
3788	party.
3789	(p)  A turnover inspection report included in the official
3790	records, under seal of an architect or engineer authorized to
3791	practice in this state, attesting to required maintenance,
3792	useful life, and replacement costs of the following applicable
3793	common areas:
3794	1.  Roof.
3795	2.  Structure.
3796	3.  Fireproofing and fire protection systems.
3797	4.  Elevators.
3798	5.  Heating and cooling systems.
3799	6.  Plumbing.
3800	7.  Electrical systems.
3801	8.  Swimming pool or spa and equipment.
3802	9.  Seawalls.
3803	10.  Pavement and parking areas.
3804	11.  Drainage systems.
3805	12.  Painting.
3806	13.  Irrigation systems.
3807	Section 26.  Section 719.3025, Florida Statutes, is created
3808	to read:
3809	719.3025  Agreements for operation, maintenance, or
3810	management of cooperatives; specific requirements.-
3811	(1)  A written contract between a party contracting to
3812	provide maintenance or management services and an association
3813	which contract provides for operation, maintenance, or
3814	management of a cooperative association or property serving the
3815	shareholders of a cooperative is not valid or enforceable unless
3816	the contract:
3817	(a)  Specifies the services, obligations, and
3818	responsibilities of the party contracting to provide maintenance
3819	or management services to the shareholders.
3820	(b)  Specifies those costs incurred in the performance of
3821	those services, obligations, or responsibilities which are to be
3822	reimbursed by the association to the party contracting to
3823	provide maintenance or management services.
3824	(c)  Provides an indication of how often each service,
3825	obligation, or responsibility is to be performed, whether stated
3826	for each service, obligation, or responsibility or in categories
3827	thereof.
3828	(d)  Specifies a minimum number of personnel to be employed
3829	by the party contracting to provide maintenance or management
3830	services for the purpose of providing service to the
3831	association.
3832	(e)  Discloses any financial or ownership interest which
3833	the developer, if the developer is in control of the
3834	association, holds with regard to the party contracting to
3835	provide maintenance or management services.
3836	(f)  Discloses any financial or ownership interest a board
3837	member or any party providing maintenance or management services
3838	to the association holds with the contracting party.
3839	(2)  In any case in which the party contracting to provide
3840	maintenance or management services fails to provide such
3841	services in accordance with the contract, the association is
3842	authorized to procure such services from some other party and is
3843	entitled to collect any fees or charges paid for services
3844	performed by another party from the party contracting to provide
3845	maintenance or management services.
3846	(3)  Any services or obligations not stated on the face of
3847	the contract are unenforceable.
3848	(4)  Notwithstanding the fact that certain vendors contract
3849	with associations to maintain equipment or property which is
3850	made available to serve shareholders, it is the intent of the
3851	Legislature that this section applies to contracts for
3852	maintenance or management services for which the association
3853	pays compensation. This section does not apply to contracts for
3854	services or property made available for the convenience of
3855	shareholders by lessees or licensees of the association, such as
3856	coin-operated laundry, food, soft drink, or telephone vendors;
3857	cable television operators; retail store operators; businesses;
3858	restaurants; or similar vendors.
3859	Section 27.  Section 719.3026, Florida Statutes, is amended
3860	to read:
3861	719.3026  Contracts for products and services; in writing;
3862	bids; exceptions.-Associations with 10 or fewer less than 100
3863	units may opt out of the provisions of this section if two-
3864	thirds of the shareholders unit owners vote to do so, which opt-
3865	out may be accomplished by a proxy specifically setting forth
3866	the exception from this section.
3867	(1)  All contracts as further described herein or any
3868	contract that is not to be fully performed within 1 year after
3869	the making thereof, for the purchase, lease, or renting of
3870	materials or equipment to be used by the association in
3871	accomplishing its purposes under this chapter, and all contracts
3872	for the provision of services, shall be in writing. If a
3873	contract for the purchase, lease, or renting of materials or
3874	equipment, or for the provision of services, requires payment by
3875	the association in an amount which in the aggregate exceeds 5
3876	percent of the association's budget, including reserves, the
3877	association shall obtain competitive bids for the materials,
3878	equipment, or services. Nothing contained herein shall be
3879	construed to require the association to accept the lowest bid.
3880	(2)(a)1.  Notwithstanding the foregoing, contracts with
3881	employees of the association, and contracts for attorney,
3882	accountant, architect, community association manager, timeshare
3883	management firm, engineering, and landscape architect services
3884	shall not be subject to the provisions of this section.
3885	2.  A contract executed before January 1, 1992, and any
3886	renewal thereof, is not subject to the competitive bid
3887	requirements of this section. If a contract was awarded under
3888	the competitive bid procedures of this section, any renewal of
3889	that contract is not subject to such competitive bid
3890	requirements if the contract contains a provision that allows
3891	the board to cancel the contract on 30 days' notice. Materials,
3892	equipment, or services provided to a cooperative pursuant to a
3893	local government franchise agreement by a franchise holder are
3894	not subject to the competitive bid requirement. A contract with
3895	a manager, if made by a competitive bid, may be made for up to 3
3896	years. A condominium whose declaration or bylaws provides for
3897	competitive bidding for services may operate under the
3898	provisions of that declaration or bylaws in lieu of this section
3899	if those provisions are not less stringent than the requirements
3900	of this section.
3901	(b)  This section does not limit the ability of an
3902	association to obtain needed products and services in an
3903	emergency.
3904	(c)  This section does not apply if the business entity
3905	with which the association desires to enter into a contract is
3906	the only source of supply within the county serving the
3907	association.
3908	(d)  This section does not excuse a party contracting to
3909	provide maintenance or management services from compliance with
3910	s. 719.3025.
3911	(3)  As to any contract or other transaction between an
3912	association and one or more of its directors or any other
3913	corporation, firm, association, or entity in which one or more
3914	of its directors are directors or officers or are financially
3915	interested:
3916	(a)  The association shall comply with the requirements of
3917	s. 617.0832.
3918	(b)  The disclosures required by s. 617.0832 shall be
3919	entered into the written minutes of the meeting.
3920	(c)  Approval of the contract or other transaction shall
3921	require an affirmative vote of two-thirds of the directors
3922	present.
3923	(d)  At the next regular or special meeting of the
3924	shareholders, the existence of the contract or other transaction
3925	shall be disclosed to the shareholders. Upon motion of any
3926	shareholder, the contract or transaction shall be brought up for
3927	a vote and may be canceled by a majority vote of the
3928	shareholders present. Should the shareholders cancel the
3929	contract, the association shall only be liable for the
3930	reasonable value of goods and services provided up to the time
3931	of cancellation and shall not be liable for any termination fee,
3932	liquidated damages, or other form of penalty for such
3933	cancellation.
3934	Section 28.  Section 719.303, Florida Statutes, is amended
3935	to read:
3936	719.303  Obligations of shareholders owners.-
3937	(1)  Each shareholder unit owner, each tenant and other
3938	invitee, and each association shall be governed by, and shall
3939	comply with the provisions of, this chapter, the cooperative
3940	documents, the documents creating the association, and the
3941	association bylaws, and the provisions thereof shall be deemed
3942	expressly incorporated into any lease of a unit. Actions for
3943	damages or for injunctive relief, or both, for failure to comply
3944	with these provisions may be brought by the association or by a
3945	shareholder unit owner against:
3946	(a)  The association.
3947	(b)  A shareholder unit owner.
3948	(c)  Directors designated by the developer, for actions
3949	taken by them prior to the time control of the association is
3950	assumed by shareholders unit owners other than the developer.
3951	(d)  Any director who willfully and knowingly fails to
3952	comply with these provisions.
3953	(e)  Any tenant leasing a unit, and any other invitee
3954	occupying a unit.
3955
3956	The prevailing party in any such action or in any action in
3957	which the purchaser claims a right of voidability based upon
3958	contractual provisions as required in s. 719.503(1)(a) is
3959	entitled to recover reasonable attorney's fees. A shareholder
3960	unit owner prevailing in an action between the association and
3961	the shareholder unit owner under this section, in addition to
3962	recovering his or her reasonable attorney's fees, may recover
3963	additional amounts as determined by the court to be necessary to
3964	reimburse the shareholder unit owner for his or her share of
3965	assessments levied by the association to fund its expenses of
3966	the litigation. This relief does not exclude other remedies
3967	provided by law. Actions arising under this subsection shall not
3968	be deemed to be actions for specific performance.
3969	(2)  A provision of this chapter may not be waived if the
3970	waiver would adversely affect the rights of a shareholder unit
3971	owner or the purpose of the provision, except that shareholders
3972	unit owners or members of a board of administration may waive
3973	notice of specific meetings in writing if provided by the
3974	bylaws. Any instrument given in writing by the shareholder unit
3975	owner or purchaser to an escrow agent may be relied upon by an
3976	escrow agent, whether or not such instruction and the payment of
3977	funds thereunder might constitute a waiver of any provision of
3978	this chapter.
3979	(3)  If a shareholder is delinquent for more than 90 days
3980	in the payment of a regular or special assessment or if the
3981	cooperative documents so provide, the association may suspend,
3982	for a reasonable time, the right of a shareholder or a
3983	shareholder's occupant, licensee, or invitee to use the common
3984	areas, common facilities, or any other association property.
3985	This subsection does not apply to limited common areas intended
3986	to be used by that unit, common areas that must be used to
3987	access the unit, utility services provided to the unit, parking
3988	areas, or elevators. The association may also levy reasonable
3989	fines against a shareholder unit owner for failure of the
3990	shareholder unit owner or his or her licensee or invitee or the
3991	unit's occupant to comply with any provision of the cooperative
3992	documents or reasonable rules of the association. No fine shall
3993	become a lien against a unit. No fine shall exceed $100 per
3994	violation. However, a fine may be levied on the basis of each
3995	day of a continuing violation, with a single notice and
3996	opportunity for hearing, provided that no such fine shall in the
3997	aggregate exceed $1,000. No fine may be levied except after
3998	giving reasonable notice and opportunity for a hearing to the
3999	shareholder unit owner and, if applicable, his or her licensee
4000	or invitee. The hearing shall be held before a committee of
4001	other shareholders who are neither board members nor persons
4002	residing in a board member's household unit owners. If the
4003	committee does not agree with the fine, it shall not be levied.
4004	This subsection does not apply to unoccupied units.
4005	(4)  The notice and hearing requirements of subsection (3)
4006	do not apply to the imposition of suspensions and fines against
4007	a shareholder or a shareholder's occupant, licensee, or invitee
4008	because of the failure to pay any amounts due the association.
4009	If such a fine or suspension is imposed, the association may
4010	levy the fine or impose a reasonable suspension at a properly
4011	noticed board meeting, and after the imposition of such fine or
4012	suspension, the association must notify the shareholder and, if
4013	applicable, the shareholder's occupant, licensee, or invitee by
4014	mail or hand delivery.
4015	Section 29.  Section 719.501, Florida Statutes, is amended
4016	to read:
4017	719.501  Authority, responsibilities, Powers and duties of
4018	Division of Florida Condominiums, Timeshares, and Mobile Homes.-
4019	(1)  The Division of Florida Condominiums, Timeshares, and
4020	Mobile Homes of the Department of Business and Professional
4021	Regulation, referred to as the "division" in this part, in
4022	addition to other powers and duties prescribed by chapter 718,
4023	has the power to enforce and ensure compliance with this chapter
4024	and adopted rules relating to the development, construction,
4025	sale, lease, ownership, operation, and management of residential
4026	cooperative units. In performing its duties, the division shall
4027	have the following powers and duties:
4028	(a)  The division may make necessary public or private
4029	investigations within or outside this state to determine whether
4030	any person has violated this chapter or any rule or order
4031	hereunder, to aid in the enforcement of this chapter, or to aid
4032	in the adoption of rules or forms hereunder.
4033	(b)  The division may require or permit any person to file
4034	a statement in writing, under oath or otherwise, as the division
4035	determines, as to the facts and circumstances concerning a
4036	matter to be investigated.
4037	(c)  For the purpose of any investigation under this
4038	chapter, the division director or any officer or employee
4039	designated by the division director may administer oaths or
4040	affirmations, subpoena witnesses and compel their attendance,
4041	take evidence, and require the production of any matter which is
4042	relevant to the investigation, including the existence,
4043	description, nature, custody, condition, and location of any
4044	books, documents, or other tangible things and the identity and
4045	location of persons having knowledge of relevant facts or any
4046	other matter reasonably calculated to lead to the discovery of
4047	material evidence. Upon failure by a person to obey a subpoena
4048	or to answer questions propounded by the investigating officer
4049	and upon reasonable notice to all persons affected thereby, the
4050	division may apply to the circuit court for an order compelling
4051	compliance.
4052	(d)  Notwithstanding any remedies available to shareholders
4053	unit owners and associations, if the division has reasonable
4054	cause to believe that a violation of any provision of this
4055	chapter or related rule has occurred, the division may institute
4056	enforcement proceedings in its own name against a developer,
4057	association, officer, or member of the board, or its assignees
4058	or agents, as follows:
4059	1.  The division may permit a person whose conduct or
4060	actions may be under investigation to waive formal proceedings
4061	and enter into a consent proceeding whereby orders, rules, or
4062	letters of censure or warning, whether formal or informal, may
4063	be entered against the person.
4064	2.  The division may issue an order requiring the
4065	developer, association, officer, or member of the board, or its
4066	assignees or agents, or any community association manager or
4067	community association management firm to cease and desist from
4068	the unlawful practice and take such affirmative action as in the
4069	judgment of the division will carry out the purposes of this
4070	chapter. If the division finds that a developer, association,
4071	officer, or member of the board of directors, or its assignees
4072	or agents, or any community association manager or community
4073	association management firm is violating or is about to violate
4074	any provision of this chapter, any rule adopted or order issued
4075	by the division, or any written agreement entered into with the
4076	division, and presents an immediate danger to the public
4077	requiring an immediate final order, it may issue an emergency
4078	cease and desist order reciting with particularity the facts
4079	underlying such findings. The emergency cease and desist order
4080	is effective for 90 days. If the division begins nonemergency
4081	cease and desist proceedings, the emergency cease and desist
4082	order remains effective until the conclusion of the proceedings
4083	under ss. 120.569 and 120.57. Such affirmative action may
4084	include, but is not limited to, an order requiring a developer
4085	to pay moneys determined to be owed to a condominium
4086	association.
4087	3.  If a developer fails to pay any restitution determined
4088	by the division to be owed, plus any accrued interest at the
4089	highest rate permitted by law, within 30 days after expiration
4090	of any appellate time period of a final order requiring payment
4091	of restitution or the conclusion of any appeal thereof,
4092	whichever is later, the division shall bring an action in
4093	circuit or county court on behalf of any association, class of
4094	shareholders, lessees, or purchasers for restitution,
4095	declaratory relief, injunctive relief, or any other available
4096	remedy. The division may also temporarily revoke its acceptance
4097	of the filing for the developer to which the restitution relates
4098	until payment of restitution is made. The division may bring an
4099	action in circuit court on behalf of a class of unit owners,
4100	lessees, or purchasers for declaratory relief, injunctive
4101	relief, or restitution.
4102	4.  The division may petition the court for the appointment
4103	of a receiver or conservator. If appointed, the receiver or
4104	conservator may take action to implement the court order to
4105	ensure the performance of the order and to remedy any breach
4106	thereof. In addition to all other means provided by law for the
4107	enforcement of an injunction or temporary restraining order, the
4108	circuit court may impound or sequester the property of a party
4109	defendant, including books, papers, documents, and related
4110	records, and allow the examination and use of the property by
4111	the division and a court-appointed receiver or conservator.
4112	5.  The division may apply to the circuit court for an
4113	order of restitution in which the defendant in an action brought
4114	pursuant to subparagraph 4. shall be ordered to make restitution
4115	of those sums shown by the division to have been obtained by the
4116	defendant in violation of this chapter. Such restitution shall,
4117	at the option of the court, be payable to the conservator or
4118	receiver appointed pursuant to subparagraph 4. or directly to
4119	the persons whose funds or assets were obtained in violation of
4120	this chapter.
4121	6.4.  The division may impose a civil penalty against a
4122	developer or association, or its assignees or agents, for any
4123	violation of this chapter or related rule adopted under this
4124	chapter. The division may impose a civil penalty individually
4125	against any officer or board member who willfully and knowingly
4126	violates a provision of this chapter, a rule adopted pursuant to
4127	this chapter, or a final order of the division; may order the
4128	removal of such individual as an officer or from the board of
4129	directors or as an officer of the association; and may prohibit
4130	such individual from serving as an officer or on the board of a
4131	community association for a stated period of time. The term
4132	"willfully and knowingly" means that the division informed the
4133	officer or board member that his or her action or intended
4134	action violates this chapter, a rule adopted under this chapter,
4135	or a final order of the division, and that the officer or board
4136	member refused to comply with the requirements of this chapter,
4137	a rule adopted under this chapter, or a final order of the
4138	division. The division, prior to initiating formal agency action
4139	under chapter 120, shall afford the officer or board member an
4140	opportunity to voluntarily comply with this chapter, a rule
4141	adopted under this chapter, or a final order of the division. An
4142	officer or board member who complies within 10 days is not
4143	subject to a civil penalty. A penalty may be imposed on the
4144	basis of each day of continuing violation, but in no event shall
4145	the penalty for any offense exceed $5,000. By January 1, 1998,
4146	the division shall adopt, by rule, penalty guidelines applicable
4147	to possible violations or to categories of violations of this
4148	chapter or rules adopted by the division. The guidelines must
4149	specify a meaningful range of civil penalties for each such
4150	violation of the statute and rules and must be based upon the
4151	harm caused by the violation, the repetition of the violation,
4152	and upon such other factors deemed relevant by the division. For
4153	example, the division may consider whether the violations were
4154	committed by a developer or shareholder-controlled owner-
4155	controlled association, the size of the association, and other
4156	factors. The guidelines must designate the possible mitigating
4157	or aggravating circumstances that justify a departure from the
4158	range of penalties provided by the rules. It is the legislative
4159	intent that minor violations be distinguished from those which
4160	endanger the health, safety, or welfare of the cooperative
4161	residents or other persons and that such guidelines provide
4162	reasonable and meaningful notice to the public of likely
4163	penalties that may be imposed for proscribed conduct. This
4164	subsection does not limit the ability of the division to
4165	informally dispose of administrative actions or complaints by
4166	stipulation, agreed settlement, or consent order. All amounts
4167	collected shall be deposited with the Chief Financial Officer to
4168	the credit of the Division of Florida Condominiums, Timeshares,
4169	and Mobile Homes Trust Fund. If a developer fails to pay the
4170	civil penalty and the amount deemed to be owed to the
4171	association, the division shall thereupon issue an order
4172	directing that such developer cease and desist from further
4173	operation until such time as the civil penalty is paid or may
4174	pursue enforcement of the penalty in a court of competent
4175	jurisdiction. If an association fails to pay the civil penalty,
4176	the division shall thereupon pursue enforcement in a court of
4177	competent jurisdiction, and the order imposing the civil penalty
4178	or the cease and desist order shall not become effective until
4179	20 days after the date of such order. Any action commenced by
4180	the division shall be brought in the county in which the
4181	division has its executive offices or in the county where the
4182	violation occurred.
4183	7.  If a shareholder presents the division with proof that
4184	the shareholder has requested access to official records in
4185	writing by certified mail, and that after 10 days the
4186	shareholder again made the same request for access to official
4187	records in writing by certified mail, and that more than 10 days
4188	has elapsed since the second request and the association has
4189	still failed or refused to provide access to official records as
4190	required by this chapter, the division shall issue a subpoena
4191	requiring production of the requested records where the records
4192	are kept pursuant to s. 719.104.
4193	8.  In addition to subparagraph 6., the division may seek
4194	the imposition of a civil penalty through the circuit court for
4195	any violation for which the division may issue a notice to show
4196	cause under paragraph (r). The civil penalty shall be at least
4197	$500 but no more than $5,000 for each violation. The court may
4198	also award to the prevailing party court costs and reasonable
4199	attorney's fees and, if the division prevails, may also award
4200	reasonable costs of investigation.
4201	9.  When the division finds that any person has derived an
4202	improper personal benefit from a cooperative association, the
4203	division shall order the person to pay restitution to the
4204	association and shall order the person to pay to the division
4205	the costs of investigation and prosecution.
4206	(e)  The division may prepare and disseminate a prospectus
4207	and other information to assist prospective shareholders owners,
4208	purchasers, lessees, and developers of residential cooperatives
4209	in assessing the rights, privileges, and duties pertaining
4210	thereto.
4211	(f)  The division has authority to adopt rules pursuant to
4212	ss. 120.536(1) and 120.54 to implement and enforce the
4213	provisions of this chapter.
4214	(g)  The division shall establish procedures for providing
4215	notice to an association, and to the developer during the period
4216	when the developer controls the association, when the division
4217	is considering the issuance of a declaratory statement with
4218	respect to the cooperative documents governing such cooperative
4219	community.
4220	(h)  The division shall furnish each association which pays
4221	the fees required by paragraph (2)(a) a copy of this chapter
4222	act, subsequent changes to this act on an annual basis, as an
4223	amended version of this act as it becomes available from the
4224	Secretary of State's office on a biennial basis, and the rules
4225	adopted thereto on an annual basis.
4226	(i)  The division shall annually provide each association
4227	with a summary of declaratory statements and formal legal
4228	opinions relating to the operations of cooperatives which were
4229	rendered by the division during the previous year.
4230	(j)  The division shall adopt uniform accounting
4231	principles, policies, and standards to be used by all
4232	associations in the preparation and presentation of all
4233	financial statements required by this chapter. The principles,
4234	policies, and standards shall take into consideration the size
4235	of the association and the total revenue collected by the
4236	association.
4237	(j)(k)  The division shall provide training and educational
4238	programs for cooperative association board members and
4239	shareholders unit owners. The training may, in the division's
4240	discretion, include web-based electronic media and live training
4241	and seminars in various locations throughout the state. The
4242	division may review and approve educational and training
4243	programs for board members and shareholders offered by providers
4244	and shall maintain a current list of approved programs and
4245	providers and make such list available to board members and
4246	shareholders in a reasonable and cost-effective manner.
4247	(k)(l)  The division shall maintain a toll-free telephone
4248	number accessible to cooperative shareholders unit owners.
4249	(l)  The division shall develop a program to certify both
4250	volunteer and paid mediators to provide mediation of cooperative
4251	disputes. The division shall provide, upon request, a list of
4252	such mediators to any association, shareholder, or other
4253	participant in arbitration proceedings under s. 719.1255
4254	requesting a copy of the list. The division shall include on the
4255	list of volunteer mediators only the names of persons who have
4256	received at least 20 hours of training in mediation techniques
4257	or who have mediated at least 20 disputes. In order to become
4258	initially certified by the division, paid mediators must be
4259	certified by the Supreme Court to mediate court cases in county
4260	or circuit courts. However, the division may adopt, by rule,
4261	additional factors for the certification of paid mediators,
4262	which factors must be related to experience, education, or
4263	background. Any person initially certified as a paid mediator by
4264	the division must, in order to continue to be certified, comply
4265	with the factors or requirements imposed by rules adopted by the
4266	division.
4267	(m)  When a complaint is made to the division, the division
4268	shall conduct its inquiry with reasonable dispatch and with due
4269	regard to the interests of the affected parties. Within 30 days
4270	after receipt of a complaint, the division shall acknowledge the
4271	complaint in writing and notify the complainant whether the
4272	complaint is within the jurisdiction of the division and whether
4273	additional information is needed by the division from the
4274	complainant. The division shall conduct its investigation and
4275	shall, within 90 days after receipt of the original complaint or
4276	timely requested additional information, take action upon the
4277	complaint. However, the failure to complete the investigation
4278	within 90 days does not prevent the division from continuing the
4279	investigation, accepting or considering evidence obtained or
4280	received after 90 days, or taking administrative action if
4281	reasonable cause exists to believe that a violation of this
4282	chapter or a rule of the division has occurred. If an
4283	investigation is not completed within the time limits
4284	established in this paragraph, the division shall, on a monthly
4285	basis, notify the complainant in writing of the status of the
4286	investigation. When reporting its action to the complainant, the
4287	division shall inform the complainant of any right to a hearing
4288	pursuant to ss. 120.569 and 120.57.
4289	(n)  Cooperative association directors, officers, and
4290	employees, cooperative developers, community association
4291	managers, and community association management firms have an
4292	ongoing duty to reasonably cooperate with the division in any
4293	investigation pursuant to this section. The division shall refer
4294	to local law enforcement authorities any person who the division
4295	believes has altered, destroyed, concealed, or removed any
4296	record, document, or thing required to be kept or maintained by
4297	this chapter with the purpose to impair its verity or
4298	availability in the department's investigation.
4299	(o)  The division may:
4300	1.  Contract with agencies in this state or other
4301	jurisdictions to perform investigative functions; or
4302	2.  Accept grants-in-aid from any source.
4303	(p)  The division shall cooperate with similar agencies in
4304	other jurisdictions to establish uniform filing procedures and
4305	forms, public offering statements, advertising standards, and
4306	rules and common administrative practices.
4307	(q)  The division shall consider notice to a developer to
4308	be complete when it is delivered to the developer's address
4309	currently on file with the division.
4310	(r)  In addition to its enforcement authority, the division
4311	may issue a notice to show cause, which shall provide for a
4312	hearing, upon written request, in accordance with chapter 120.
4313	(s)  In the annual report required by s. 718.501(1)(s), the
4314	division shall also report the same information for cooperative
4315	associations. The division may combine figures and issues into
4316	one report covering both condominiums and cooperatives.
4317	(n)  The division shall develop a program to certify both
4318	volunteer and paid mediators to provide mediation of cooperative
4319	disputes. The division shall provide, upon request, a list of
4320	such mediators to any association, unit owner, or other
4321	participant in arbitration proceedings under s. 718.1255
4322	requesting a copy of the list. The division shall include on the
4323	list of voluntary mediators only persons who have received at
4324	least 20 hours of training in mediation techniques or have
4325	mediated at least 20 disputes. In order to become initially
4326	certified by the division, paid mediators must be certified by
4327	the Supreme Court to mediate court cases in county or circuit
4328	courts. However, the division may adopt, by rule, additional
4329	factors for the certification of paid mediators, which factors
4330	must be related to experience, education, or background. Any
4331	person initially certified as a paid mediator by the division
4332	must, in order to continue to be certified, comply with the
4333	factors or requirements imposed by rules adopted by the
4334	division.
4335	(2)(a)  Each cooperative association shall pay to the
4336	division, on or before January 1 of each year, an annual fee in
4337	the amount of $4 for each residential unit in cooperatives
4338	operated by the association. If the fee is not paid by March 1,
4339	then the association shall be assessed a penalty of 10 percent
4340	of the amount due, and the association shall not have the
4341	standing to maintain or defend any action in the courts of this
4342	state until the amount due, plus any penalty, is paid.
4343	(b)  All fees shall be deposited in the Division of Florida
4344	Condominiums, Timeshares, and Mobile Homes Trust Fund as
4345	provided by law.
4346	Section 30.  Paragraph (b) of subsection (1) and paragraph
4347	(a) of subsection (2) of section 719.503, Florida Statutes, are
4348	amended to read:
4349	719.503  Disclosure prior to sale.-
4350	(1)  DEVELOPER DISCLOSURE.-
4351	(b)  Copies of documents to be furnished to prospective
4352	buyer or lessee.-Until such time as the developer has furnished
4353	the documents listed below to a person who has entered into a
4354	contract to purchase a unit or lease it for more than 5 years,
4355	the contract may be voided by that person, entitling the person
4356	to a refund of any deposit together with interest thereon as
4357	provided in s. 719.202. The contract may be terminated by
4358	written notice from the proposed buyer or lessee delivered to
4359	the developer within 15 days after the buyer or lessee receives
4360	all of the documents required by this section. The developer
4361	shall not close for 15 days following the execution of the
4362	agreement and delivery of the documents to the buyer as
4363	evidenced by a receipt for documents signed by the buyer unless
4364	the buyer is informed in the 15-day voidability period and
4365	agrees to close prior to the expiration of the 15 days. The
4366	developer shall retain in his or her records a separate signed
4367	agreement as proof of the buyer's agreement to close prior to
4368	the expiration of such said voidability period. Such Said proof
4369	shall be retained for a period of 5 years after the date of the
4370	closing transaction. The documents to be delivered to the
4371	prospective buyer are the prospectus or disclosure statement
4372	with all exhibits, if the development is subject to the
4373	provisions of s. 719.504, or, if not, then copies of the
4374	following which are applicable:
4375	1.  The question and answer sheet described in s. 719.504,
4376	and cooperative documents, or the proposed cooperative documents
4377	if the documents have not been recorded, which shall include the
4378	certificate of a surveyor approximately representing the
4379	locations required by s. 719.504 719.104.
4380	2.  The documents creating the association.
4381	3.  The bylaws.
4382	4.  The ground lease or other underlying lease of the
4383	cooperative.
4384	5.  The management contract, maintenance contract, and
4385	other contracts for management of the association and operation
4386	of the cooperative and facilities used by the shareholders unit
4387	owners having a service term in excess of 1 year, and any
4388	management contracts that are renewable.
4389	6.  The estimated operating budget for the cooperative and
4390	a schedule of expenses for each type of unit, including fees
4391	assessed to a shareholder who has exclusive use of limited
4392	common areas, where such costs are shared only by those entitled
4393	to use such limited common areas.
4394	7.  The lease of recreational and other facilities that
4395	will be used only by shareholders unit owners of the subject
4396	cooperative.
4397	8.  The lease of recreational and other common areas that
4398	will be used by shareholders unit owners in common with
4399	shareholders unit owners of other cooperatives.
4400	9.  The form of unit lease if the offer is of a leasehold.
4401	10.  Any declaration of servitude of properties serving the
4402	cooperative but not owned by shareholders unit owners or leased
4403	to them or the association.
4404	11.  If the development is to be built in phases or if the
4405	association is to manage more than one cooperative, a
4406	description of the plan of phase development or the arrangements
4407	for the association to manage two or more cooperatives.
4408	12.  If the cooperative is a conversion of existing
4409	improvements, the statements and disclosure required by s.
4410	719.616.
4411	13.  The form of agreement for sale or lease of units.
4412	14.  A copy of the floor plan of the unit and the plot plan
4413	showing the location of the residential buildings and the
4414	recreation and other common areas.
4415	15.  A copy of all covenants and restrictions which will
4416	affect the use of the property and which are not contained in
4417	the foregoing.
4418	16.  If the developer is required by state or local
4419	authorities to obtain acceptance or approval of any dock or
4420	marina facilities intended to serve the cooperative, a copy of
4421	any such acceptance or approval acquired by the time of filing
4422	with the division pursuant to s. 719.502(1) or a statement that
4423	such acceptance or approval has not been acquired or received.
4424	17.  Evidence demonstrating that the developer has an
4425	ownership, leasehold, or contractual interest in the land upon
4426	which the cooperative is to be developed.
4427	(2)  NONDEVELOPER DISCLOSURE.-
4428	(a)  Each shareholder unit owner who is not a developer as
4429	defined by this chapter must comply with the provisions of this
4430	subsection prior to the sale of his or her interest in the
4431	association. Each prospective purchaser who has entered into a
4432	contract for the purchase of an interest in a cooperative is
4433	entitled, at the seller's expense, to a current copy of the
4434	articles of incorporation of the association, the bylaws, and
4435	rules of the association, as well as a copy of the question and
4436	answer sheet as provided in s. 719.504. On and after July 1,
4437	2010, the prospective purchaser shall also be entitled to
4438	receive from the seller a copy of a governance form. Such form
4439	shall be provided by the division summarizing governance of
4440	cooperative associations. In addition to such other information
4441	as the division considers helpful to a prospective purchaser in
4442	understanding association governance, the governance form shall
4443	address the following subjects:
4444	1.  The role of the board in conducting the day-to-day
4445	affairs of the association on behalf of, and in the best
4446	interests of, the shareholders.
4447	2.  The board's responsibility to provide advance notice of
4448	board and shareholder meetings.
4449	3.  The rights of shareholders to attend and speak at board
4450	and shareholder meetings.
4451	4.  The responsibility of the board and shareholders with
4452	respect to maintenance of the cooperative property.
4453	5.  The responsibility of the board and shareholders to
4454	abide by the cooperative documents, this chapter, rules adopted
4455	by the division, and reasonable rules adopted by the board.
4456	6.  Shareholders' rights to inspect and copy association
4457	records and the limitations on such rights.
4458	7.  Remedies available to shareholders with respect to
4459	actions by the board which may be abusive or beyond the board's
4460	power and authority.
4461	8.  The right of the board to hire a property management
4462	firm, subject to its own primary responsibility for such
4463	management.
4464	9.  The responsibility of shareholders with regard to
4465	payment of regular or special assessments necessary for the
4466	operation of the property and the potential consequences of
4467	failure to pay such assessments.
4468	10.  The voting rights of shareholders.
4469	11.  Rights and obligations of the board in enforcement of
4470	rules in the cooperative documents and rules adopted by the
4471	board.
4472
4473	The governance form shall also include the following statement
4474	in conspicuous type: THIS PUBLICATION IS INTENDED AS AN INFORMAL
4475	EDUCATIONAL OVERVIEW OF COOPERATIVE GOVERNANCE. IN THE EVENT OF
4476	A CONFLICT, THE PROVISIONS OF CHAPTER 719, FLORIDA STATUTES,
4477	RULES ADOPTED BY THE DIVISION OF FLORIDA CONDOMINIUMS,
4478	TIMESHARES, AND MOBILE HOMES OF THE DEPARTMENT OF BUSINESS AND
4479	PROFESSIONAL REGULATION, THE PROVISIONS OF THE COOPERATIVE
4480	DOCUMENTS, AND REASONABLE RULES ADOPTED BY THE COOPERATIVE
4481	ASSOCIATION'S BOARD OF DIRECTORS PREVAIL OVER THE CONTENTS OF
4482	THIS PUBLICATION.
4483	Section 31.  Paragraph (c) of subsection (2) of section
4484	720.303, Florida Statutes, is amended, and subsections (12),
4485	(13), and (14) are added to that section, to read:
4486	720.303  Association powers and duties; meetings of board;
4487	official records; budgets; financial reporting; association
4488	funds; recalls; borrowing; transfer fees.-
4489	(2)  BOARD MEETINGS.-
4490	(c)  The bylaws shall provide for giving notice to parcel
4491	owners and members of all board meetings and, if they do not do
4492	so, shall be deemed to provide the following:
4493	1.  Notices of all board meetings must be posted in a
4494	conspicuous place in the community at least 48 hours in advance
4495	of a meeting, except in an emergency. In the alternative, if
4496	notice is not posted in a conspicuous place in the community,
4497	notice of each board meeting must be mailed or delivered to each
4498	member at least 7 days before the meeting, except in an
4499	emergency. Notwithstanding this general notice requirement, for
4500	communities with more than 100 members, the bylaws may provide
4501	for a reasonable alternative to posting or mailing of notice for
4502	each board meeting, including publication of notice, provision
4503	of a schedule of board meetings, or the conspicuous posting and
4504	repeated broadcasting of the notice on a closed-circuit cable
4505	television system serving the homeowners' association. However,
4506	if broadcast notice is used in lieu of a notice posted
4507	physically in the community, the notice must be broadcast at
4508	least four times every broadcast hour of each day that a posted
4509	notice is otherwise required. When broadcast notice is provided,
4510	the notice and agenda must be broadcast in a manner and for a
4511	sufficient continuous length of time so as to allow an average
4512	reader to observe the notice and read and comprehend the entire
4513	content of the notice and the agenda. The bylaws or amended
4514	bylaws may provide for giving notice by electronic transmission
4515	in a manner authorized by law for meetings of the board of
4516	directors, committee meetings requiring notice under this
4517	section, and annual and special meetings of the members;
4518	however, a member must consent in writing to receiving notice by
4519	electronic transmission.
4520	2.  An assessment may not be levied at a board meeting
4521	unless the notice of the meeting includes a statement that
4522	assessments will be considered and the nature of, the actual
4523	cost of, and a description of the purposes for such the
4524	assessments. Written notice of any meeting at which special
4525	assessments will be considered or at which amendments to rules
4526	regarding parcel use will be considered must be mailed,
4527	delivered, or electronically transmitted to the members and
4528	parcel owners and posted conspicuously on the property or
4529	broadcast on closed-circuit cable television not less than 14
4530	days before the meeting.
4531	3.  Directors may not vote by proxy or by secret ballot at
4532	board meetings, except that secret ballots may be used in the
4533	election of officers. This subsection also applies to the
4534	meetings of any committee or other similar body, when a final
4535	decision will be made regarding the expenditure of association
4536	funds, and to any body vested with the power to approve or
4537	disapprove architectural decisions with respect to a specific
4538	parcel of residential property owned by a member of the
4539	community.
4540	(12)  BORROWING.-The borrowing of funds or committing to a
4541	line of credit by the board shall be considered a special
4542	assessment, and any meeting of the board to discuss such matters
4543	must be noticed as provided in paragraph (2)(c). The board may
4544	not borrow funds or enter into a line of credit for any purpose
4545	unless the specific use of the funds from the loan or line of
4546	credit is set forth in the notice of meeting with the same
4547	specificity as required for a special assessment or unless the
4548	borrowing or line of credit has received the prior approval of
4549	at least two-thirds of the voting interests of the association.
4550	(13)  TRANSFER FEES.-No charge may be made by the
4551	association or anyone on its behalf in connection with the sale,
4552	mortgage, lease, sublease, or other transfer of a parcel.
4553	Nothing in this subsection may be construed to prohibit an
4554	association from requiring as a condition to permitting the
4555	letting or renting of a parcel, when the association has such
4556	authority in the documents, the depositing into an escrow
4557	account maintained by the association of a security deposit in
4558	an amount not to exceed the equivalent of 1 month's rent. The
4559	security deposit shall protect against damages to the common
4560	areas or association property. Within 15 days after a tenant
4561	vacates the premises, the association shall refund the full
4562	security deposit or give written notice to the tenant of any
4563	claim made against the security. Disputes under this subsection
4564	shall be handled in the same fashion as disputes concerning
4565	security deposits under s. 83.49.
4566	(14)  LIMIT ON EXPENDITURES AND CONTRIBUTIONS.-It shall be
4567	unlawful for an association to make any expenditure of
4568	association funds or to make any in-kind contribution of
4569	association assets that does not relate to the purposes for
4570	which the association is organized.
4571	(a)  The association shall not make any contribution to a
4572	campaign or committee of continuous existence governed by
4573	chapter 105 or chapter 106.
4574	(b)  The association shall not make any contribution to a
4575	charitable organization if the association does not receive a
4576	direct benefit from the organization.
4577	(c)  Members of the board shall be jointly and severely
4578	liable to reimburse the association for any contribution,
4579	expenditure, or in-kind contribution made in violation of this
4580	subsection.
4581	Section 32.  Paragraph (a) of subsection (2) of section
4582	720.304, Florida Statutes, is amended to read:
4583	720.304  Right of owners to peaceably assemble; display of
4584	flag; SLAPP suits prohibited.-
4585	(2)(a)  Any homeowner may display within the boundaries of
4586	the homeowner's parcel one portable, removable United States
4587	flag or official flag of the State of Florida in a respectful
4588	manner, and one portable, removable official flag, in a
4589	respectful way and, on Armed Forces Day, Memorial Day, Flag Day,
4590	Independence Day, and Veterans' Day, may display in a respectful
4591	way portable, removable official flags manner, not larger than 4
4592	1/2 feet by 6 feet, that represent which represents the United
4593	States Army, Navy, Air Force, Marine Corps, or Coast Guard, or a
4594	POW-MIA flag, regardless of any declaration covenants,
4595	restrictions, bylaws, rules, or requirements dealing with flags
4596	or decorations of the association.
4597	Section 33.  Subsection (1) of section 720.306, Florida
4598	Statutes, is amended to read:
4599	720.306  Meetings of members; voting and election
4600	procedures; amendments.-
4601	(1)  QUORUM; AMENDMENTS.-
4602	(a)  Unless a lower number is provided in the bylaws, the
4603	percentage of voting interests required to constitute a quorum
4604	at a meeting of the members shall be 30 percent of the total
4605	voting interests. Unless otherwise provided in this chapter or
4606	in the articles of incorporation or bylaws, decisions that
4607	require a vote of the members must be made by the concurrence of
4608	at least a majority of the voting interests present, in person
4609	or by proxy, at a meeting at which a quorum has been attained.
4610	(b)  Unless otherwise provided in the governing documents
4611	or required by law, and other than those matters set forth in
4612	paragraphs paragraph (c) and (d), any governing document of an
4613	association may be amended by the affirmative vote of two-thirds
4614	of the voting interests of the association.
4615	(c)  Unless otherwise provided in the governing documents
4616	as originally recorded or permitted by this chapter or chapter
4617	617, an amendment may not materially and adversely alter the
4618	proportionate voting interest appurtenant to a parcel or
4619	increase the proportion or percentage by which a parcel shares
4620	in the common expenses of the association unless the record
4621	parcel owner and all record owners of liens on the parcels join
4622	in the execution of the amendment. For purposes of this section,
4623	a change in quorum requirements is not an alteration of voting
4624	interests. The merger or consolidation of one or more
4625	associations under a plan of merger or consolidation under
4626	chapter 607 or chapter 617 shall not be considered a material or
4627	adverse alteration of the proportionate voting interest
4628	appurtenant to a parcel.
4629	(d)  The method by which the bylaws may be amended
4630	consistent with the provisions of this chapter shall be stated.
4631	No bylaw shall be revised or amended by reference to its title
4632	or number only. Proposals to amend existing bylaws shall contain
4633	the full text of the bylaws to be amended. New words shall be
4634	inserted in the text underlined, and words to be deleted shall
4635	be lined through with hyphens. However, if the proposed change
4636	is so extensive that this procedure would hinder, rather than
4637	assist, the understanding of the proposed amendment, it is not
4638	necessary to use underlining and hyphens as indicators of words
4639	added or deleted, but, instead, a notation must be inserted
4640	immediately preceding the proposed amendment in substantially
4641	the following language: "Substantial rewording of bylaw. See
4642	bylaw _____ for present text." Nonmaterial errors or omissions
4643	in the bylaw process will not invalidate an otherwise properly
4644	adopted amendment.
4645	Section 34.  Section 720.3065, Florida Statutes, is created
4646	to read:
4647	720.3065  Qualifications of directors and officers.-
4648	(1)  DIRECTOR OR OFFICER OFFENSES.-A director or officer
4649	charged by information or indictment with a felony theft or
4650	embezzlement offense involving the association's funds or
4651	property shall be removed from office, creating a vacancy in the
4652	office to be filled according to law. While such director or
4653	officer has such criminal charge pending in the state or federal
4654	court system, he or she may not be appointed or elected to a
4655	position as a director or officer. However, should the charges
4656	be resolved without a finding of guilt, the director or officer
4657	shall be reinstated for the remainder of his or her term of
4658	office, if any.
4659	(2)  QUALIFICATION OF DIRECTORS.-In addition to any other
4660	requirement for office in statute, a person running for, seeking
4661	appointment to, or serving as a director of the board must meet
4662	the following qualifications:
4663	(a)  In a homeowners' association of 10 or more units, only
4664	one individual coowner of a unit may serve on the board.
4665	(b)  No person may serve as a director of any homeowners'
4666	association in the state if restricted from serving as director
4667	of a condominium or cooperative association by action of the
4668	division pursuant to s. 718.501(1)(d)6.
4669	(c)  A person who has been convicted of any felony in this
4670	state or in a United States District or Territorial Court, or
4671	who has been convicted of any offense in another jurisdiction
4672	that would be considered a felony if committed in this state, is
4673	not eligible for board membership unless such felon's civil
4674	rights have been restored for a period of no less than 5 years
4675	as of the date on which such person seeks election to the board.
4676	(d)  A director more than 90 days delinquent in the payment
4677	of regular assessments shall be deemed to have abandoned his or
4678	her office.
4679	(e)  Within 30 days after being elected or appointed to the
4680	board, a director must certify in writing to the secretary of
4681	the association that he or she has read this chapter and the
4682	association's covenants, articles of incorporation, bylaws, and
4683	current written policies. The director shall further certify
4684	that he or she will work to uphold such documents and policies
4685	to the best of his or her ability and that he or she will
4686	faithfully discharge his or her fiduciary responsibility to the
4687	association's members. If a court finds that a director has
4688	falsely certified that he or she has read the required statutes
4689	and documents, the court shall order the director removed from
4690	the board and shall order the director to reimburse the opposing
4691	party in the litigation for all reasonable costs and attorney's
4692	fees.
4693	(f)  After turnover of the association pursuant to s.
4694	720.307(1), a director must:
4695	1.  If the parcel is owned by an individual or individuals,
4696	be one of those individuals.
4697	2.  If the parcel is owned by a trust, be an individual
4698	qualified pursuant to s. 617.0802.
4699
4700	These qualifications shall operate on a continuing basis, and,
4701	upon the failure of a director at any time to meet a
4702	qualification, the director shall be removed from office and
4703	that office shall be deemed vacant.
4704	Section 35.  Section 720.3068, Florida Statutes, is created
4705	to read:
4706	720.3068  Meetings.-Regular meetings of the board shall be
4707	held at such time and place as provided in the bylaws until the
4708	first regular meeting held on or after July 1, 2010. Thereafter,
4709	the location and time for regular board meetings shall be
4710	determined by a majority vote of the parcel owners at the next
4711	regular meeting held on or after July 1, 2010. Once the time and
4712	place for regular board meetings have been selected, neither may
4713	be changed unless approved by a majority vote of the parcel
4714	owners. Regular meetings of the board held on weekdays may be
4715	held no earlier than 6 p.m. local time.
4716	Section 36.  Subsection (1) of section 720.3085, Florida
4717	Statutes, is amended, and subsection (8) is added to that
4718	section, to read:
4719	720.3085  Payment for assessments; lien claims.-
4720	(1)  When authorized by the governing documents, the
4721	association has a lien on each parcel to secure the payment of
4722	assessments and other amounts provided for by this section.
4723	Except as otherwise set forth in this section, the lien is
4724	effective from and shall relate back to the date on which the
4725	original declaration of the community was recorded. However, as
4726	to first mortgages of record, the lien is effective from and
4727	after recording of a claim of lien in the public records of the
4728	county in which the parcel is located. This subsection does not
4729	bestow upon any lien, mortgage, or certified judgment of record
4730	on July 1, 2008, including the lien for unpaid assessments
4731	created in this section, a priority that, by law, the lien,
4732	mortgage, or judgment did not have before July 1, 2008.
4733	(a)  To be valid, a claim of lien must state the
4734	description of the parcel, the name of the record owner, the
4735	name and address of the association, the assessment amount due,
4736	and the due date. The claim of lien shall secure all unpaid
4737	assessments that are due and that may accrue subsequent to the
4738	recording of the claim of lien and before entry of a certificate
4739	of title, as well as interest, late charges, and reasonable
4740	costs and attorney's fees incurred by the association incident
4741	to the collection process. A notice of delinquency sent to a
4742	parcel owner shall provide an overall total of assessments
4743	claimed by the association and shall specify for each assessment
4744	or charge the date of the assessment or charge, the principal
4745	balance owed for the assessment or charge, and affiliated late
4746	fees or collection charges. Costs to a parcel owner secured by
4747	the association's claim of lien with regard to collection
4748	efforts by management companies or licensed managers as to any
4749	delinquent installment of an assessment may not exceed $50.
4750	However, there shall be no charge for the first notice of a
4751	delinquency to the parcel owner. The person making the payment
4752	is entitled to a satisfaction of the lien upon payment in full.
4753	(b)  By recording a notice in substantially the following
4754	form, a parcel owner or the parcel owner's agent or attorney may
4755	require the association to enforce a recorded claim of lien
4756	against his or her parcel:
4757
4758	NOTICE OF CONTEST OF LIEN
4759
4760	TO: ...(Name and address of association)...
4761
4762	You are notified that the undersigned contests the claim of lien
4763	filed by you on _____, ...(year)..., and recorded in Official
4764	Records Book _____ at page _____, of the public records of _____
4765	County, Florida, and that the time within which you may file
4766	suit to enforce your lien is limited to 90 days following the
4767	date of service of this notice. Executed this _____ day of
4768	_____, ...(year)....
4769
4770	Signed: ...(Owner or Attorney)...
4771
4772	After the notice of a contest of lien has been recorded, the
4773	clerk of the circuit court shall mail a copy of the recorded
4774	notice to the association by certified mail, return receipt
4775	requested, at the address shown in the claim of lien or the most
4776	recent amendment to it and shall certify to the service on the
4777	face of the notice. Service is complete upon mailing. After
4778	service, the association has 90 days in which to file an action
4779	to enforce the lien and, if the action is not filed within the
4780	90-day period, the lien is void. However, the 90-day period
4781	shall be extended for any length of time that the association is
4782	prevented from filing its action because of an automatic stay
4783	resulting from the filing of a bankruptcy petition by the parcel
4784	owner or by any other person claiming an interest in the parcel.
4785	(c)  The association may bring an action in its name to
4786	foreclose a lien for assessments in the same manner in which a
4787	mortgage of real property is foreclosed and may also bring an
4788	action to recover a money judgment for the unpaid assessments
4789	without waiving any claim of lien. The association is entitled
4790	to recover its reasonable attorney's fees incurred in an action
4791	to foreclose a lien or an action to recover a money judgment for
4792	unpaid assessments.
4793	(d)  If the parcel owner remains in possession of the
4794	parcel after a foreclosure judgment has been entered, the court
4795	may require the parcel owner to pay a reasonable rent for the
4796	parcel. If the parcel is rented or leased during the pendency of
4797	the foreclosure action, the association is entitled to the
4798	appointment of a receiver to collect the rent. The expenses of
4799	the receiver must be paid by the party who does not prevail in
4800	the foreclosure action.
4801	(e)  The association may purchase the parcel at the
4802	foreclosure sale and hold, lease, mortgage, or convey the
4803	parcel.
4804	(8)  During the pendency of any foreclosure action of a
4805	parcel in a homeowners' association, if the parcel is occupied
4806	by a tenant and the parcel owner is delinquent in the payment of
4807	regular assessments, the association may demand that the tenant
4808	pay to the association the future regular assessments related to
4809	the parcel. The demand shall be continuing in nature, and upon
4810	demand the tenant shall continue to pay the regular assessments
4811	to the association until the association releases the tenant or
4812	the tenant discontinues tenancy in the unit. The association
4813	shall mail written notice to the unit owner of the association's
4814	demand that the tenant pay regular assessments to the
4815	association. The tenant shall not be liable for increases in the
4816	amount of the regular assessments due unless the tenant was
4817	reasonably notified of the increase prior to the day that the
4818	rent is due. The tenant shall be given a credit against rents
4819	due to the parcel owner in the amount of assessments paid to the
4820	association. The association shall, upon request, provide the
4821	tenant with written receipts for payments made. The association
4822	may issue notices under s. 83.56 and may sue for eviction under
4823	ss. 83.59-83.625 as if the association were a landlord under
4824	part II of chapter 83 should the tenant fail to pay an
4825	assessment. However, the association shall not otherwise be
4826	considered a landlord under chapter 83 and shall specifically
4827	not have any duty under s. 83.51. The tenant shall not, by
4828	virtue of payment of assessments, have any of the rights of a
4829	parcel owner to vote in any election or to examine the books and
4830	records of the association. A court may supersede the effect of
4831	this subsection when appointing a receiver at the request of a
4832	mortgagee.
4833	Section 37.  Section 720.314, Florida Statutes, is created
4834	to read:
4835	720.314  Parcel owner informational complaint.-
4836	(1)  Any parcel owner may file an informational complaint
4837	to report alleged failures by the homeowners' association or
4838	officers or directors of the association to comply with the
4839	provisions of this chapter. The informational complaint shall be
4840	in writing and signed by the complainant, and the accuracy of
4841	the facts alleged shall be sworn to before a notary public.
4842	Properly filed informational complaints shall be used for
4843	analysis and recommendations to the Legislature for changes to
4844	this chapter.
4845	(2)  The informational complaint shall be in the format
4846	provided in subsection (3) and shall be filed with the Office of
4847	Program Policy Analysis and Government Accountability. If the
4848	form does not comply with the requirements provided in
4849	subsection (3), it shall be returned to the complainant as not
4850	in compliance with the requirements of this section and may not
4851	be considered by the Office of Program Policy Analysis and
4852	Government Accountability for any purpose.
4853	(3)  The informational complaint shall be in substantially
4854	the following form:
4855
4856	PARCEL OWNER COMPLAINT
4857
4858	Name of complainant:
4859	Address of complainant:
4860	Name of association:
4861	Address of association:
4862	Statute not complied with:
4863	Name of officer:
4864	Name of director:
4865	Facts supporting violation (50 words or less):
4866
4867	________________________
4868	Signature of Complainant
4869
4870	Sworn to and subscribed to this _____ day of ______, (year)
4871
4872	_____________
4873	Notary Public
4874	Section 38.  Subsection (3) of section 721.16, Florida
4875	Statutes, is amended to read:
4876	721.16  Liens for overdue assessments; liens for labor
4877	performed on, or materials furnished to, a timeshare unit.-
4878	(3)  The lien is effective from the date of recording a
4879	claim of lien in the public records of the county or counties in
4880	which the accommodations and facilities constituting the
4881	timeshare plan are located. The claim of lien shall state the
4882	name of the timeshare plan and identify the timeshare interest
4883	for which the lien is effective, state the name of the
4884	purchaser, state the assessment amount due, and state the due
4885	dates. Notwithstanding any provision of s. 718.116(5)(a) or s.
4886	719.108(5)(4) to the contrary, the lien is effective until
4887	satisfied or until 5 years have expired after the date the claim
4888	of lien is recorded unless, within that time, an action to
4889	enforce the lien is commenced pursuant to subsection (2). A
4890	claim of lien for assessments may include only assessments which
4891	are due when the claim is recorded. A claim of lien shall be
4892	signed and acknowledged by an officer or agent of the managing
4893	entity. Upon full payment, the person making the payment is
4894	entitled to receive a satisfaction of the lien.
4895	Section 39.  This act shall take effect July 1, 2010.

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