Florida Senate - 2016                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1050
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Floor: WD            .                                
             03/08/2016 10:28 AM       .                                

       Senator Hays moved the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 1370 - 1405
    4  and insert:
    5         Section 51. Subsection (2) of section 720.302, Florida
    6  Statutes, is amended to read:
    7         720.302 Purposes, scope, and application.—
    8         (2) The Legislature recognizes that it is not in the best
    9  interest of homeowners’ associations or the individual
   10  association members thereof to allow create or impose a bureau
   11  or other agency of state government to regulate a limited number
   12  of the affairs of homeowners’ associations. However,
   13         (a) In accordance with s. 720.311, the Legislature finds
   14  that homeowners’ associations and their individual members will
   15  benefit from an expedited alternative process for resolution of
   16  election and recall disputes and presuit mediation of other
   17  disputes involving covenant enforcement and authorizes the
   18  department to hear, administer, and determine these disputes as
   19  more fully set forth in this chapter.
   20         (b) The Legislature finds that homeowners’ associations and
   21  their individual members will benefit from having access to all
   22  records and financial documents. Therefore, the Legislature
   23  authorizes the department to receive and make a determination on
   24  complaints against homeowners’ associations, their officers, or
   25  any directors which involve association financial matters,
   26  access to official records, passage of an annual budget, reserve
   27  funds, or misappropriation of funds.
   28         (c) The Legislature recognizes that certain existing
   29  contract rights were created for the benefit of homeowners’
   30  associations and their members before July 1, 2016, and that ss.
   31  720.301-720.407 are not intended to impair such contract rights,
   32  including, but not limited to, the rights of a developer to
   33  complete a community as initially contemplated. Notwithstanding
   34  this, the Legislature finds that homeowners’ associations and
   35  their individual members will benefit from being afforded
   36  reasonable protections of their property through contractual
   37  rights and authorizes the department to receive and make a
   38  determination on complaints against any association or a
   39  director or an officer of an association that is still subject
   40  to developer control Further, the Legislature recognizes that
   41  certain contract rights have been created for the benefit of
   42  homeowners’ associations and members thereof before the
   43  effective date of this act and that ss. 720.301-720.407 are not
   44  intended to impair such contract rights, including, but not
   45  limited to, the rights of the developer to complete the
   46  community as initially contemplated.
   47         Section 52. Paragraph (b) of subsection (7) and subsection
   48  (13) of section 720.303, Florida Statutes, are amended to read:
   49         720.303 Association powers and duties; meetings of board;
   50  official records; budgets; financial reporting; association
   51  funds; recalls.—
   52         (7) FINANCIAL REPORTING.—Within 90 days after the end of
   53  the fiscal year, or annually on the date provided in the bylaws,
   54  the association shall prepare and complete, or contract with a
   55  third party for the preparation and completion of, a financial
   56  report for the preceding fiscal year. Within 21 days after the
   57  final financial report is completed by the association or
   58  received from the third party, but not later than 120 days after
   59  the end of the fiscal year or other date as provided in the
   60  bylaws, the association shall, within the time limits set forth
   61  in subsection (5), provide each member with a copy of the annual
   62  financial report or a written notice that a copy of the
   63  financial report is available upon request at no charge to the
   64  member. Financial reports shall be prepared as follows:
   65         (b)1. An association with total annual revenues of less
   66  than $150,000 shall prepare a report of cash receipts and
   67  expenditures.
   68         2. An association in a community of fewer than 50 parcels,
   69  regardless of the association’s annual revenues, may prepare a
   70  report of cash receipts and expenditures in lieu of financial
   71  statements required by paragraph (a) unless the governing
   72  documents provide otherwise.
   73         2.3. A report of cash receipts and disbursement must
   74  disclose the amount of receipts by accounts and receipt
   75  classifications and the amount of expenses by accounts and
   76  expense classifications, including, but not limited to, the
   77  following, as applicable: costs for security, professional, and
   78  management fees and expenses; taxes; costs for recreation
   79  facilities; expenses for refuse collection and utility services;
   80  expenses for lawn care; costs for building maintenance and
   81  repair; insurance costs; administration and salary expenses; and
   82  reserves if maintained by the association.
   83         (13) REPORTING REQUIREMENT.—The community association
   84  manager or management firm, or the association when there is no
   85  community association manager or management firm, shall submit a
   86  report to the division by November 22, 2016 2013, and each year
   87  thereafter in a manner and form prescribed by the division.
   88         (a) The report must shall include the association’s:
   89         1. Legal name.
   90         2. Federal employer identification number.
   91         3. Mailing and physical addresses.
   92         4. Total number of parcels.
   93         5. Total amount of revenues and expenses from the
   94  association’s annual budget.
   95         (b) For associations in which control of the association
   96  has not been transitioned to nondeveloper members, as set forth
   97  in s. 720.307, the report shall also include the developer’s:
   98         1. Legal name.
   99         2. Mailing address.
  100         3. Total number of parcels owned on the date of reporting.
  101         (c) The reporting requirement provided in this subsection
  102  shall be a continuing obligation on each association until the
  103  required information is reported to the division. The community
  104  association manager or management firm, or the association if
  105  there is no community association manager or management firm,
  106  must resubmit the report required under this subsection upon the
  107  occurrence of a material change in the information required to
  108  be reported pursuant to paragraphs (a) and (b).
  109         (d) By October 1, 2016 2013, the department shall establish
  110  and implement a registration system through a an Internet
  111  website that provides for the reporting requirements of
  112  paragraphs (a) and (b).
  113         (e) The department shall prepare an annual report of the
  114  data reported pursuant to this subsection and present it to the
  115  Governor, the President of the Senate, and the Speaker of the
  116  House of Representatives by December 1, 2016 2013, and each year
  117  thereafter.
  118         (f) The division shall adopt rules pursuant to ss.
  119  120.536(1) and 120.54 to implement the provisions of this
  120  subsection.
  121         (g) This subsection shall expire on July 1, 2026 2016,
  122  unless reenacted by the Legislature.
  123         Section 53. Subsection (2) of section 720.305, Florida
  124  Statutes, is amended to read:
  125         720.305 Obligations of members; remedies at law or in
  126  equity; levy of fines and suspension of use rights.—
  127         (2) The association may levy reasonable fines. A fine may
  128  not exceed $100 per violation against any member or any member’s
  129  tenant, guest, or invitee for the failure of the owner of the
  130  parcel or its occupant, licensee, or invitee to comply with any
  131  provision of the declaration, the association bylaws, or
  132  reasonable rules of the association unless otherwise provided in
  133  the governing documents. A fine may be levied by the board for
  134  each day of a continuing violation, with a single notice and
  135  opportunity for hearing, except that the fine may not exceed
  136  $1,000 in the aggregate unless otherwise provided in the
  137  governing documents. A fine, or an action to collect on a fine,
  138  may not result in foreclosure on of less than $1,000 may not
  139  become a lien against a parcel. In any action to recover a fine,
  140  the prevailing party is entitled to reasonable attorney fees and
  141  costs from the nonprevailing party as determined by the court.
  142         (a) An association may suspend, for a reasonable period of
  143  time, the right of a member, or a member’s tenant, guest, or
  144  invitee, to use common areas and facilities for the failure of
  145  the owner of the parcel or its occupant, licensee, or invitee to
  146  comply with any provision of the declaration, the association
  147  bylaws, or reasonable rules of the association. This paragraph
  148  does not apply to that portion of common areas used to provide
  149  access or utility services to the parcel. A suspension may not
  150  prohibit an owner or tenant of a parcel from having vehicular
  151  and pedestrian ingress to and egress from the parcel, including,
  152  but not limited to, the right to park.
  153         (b) A fine or suspension may not be imposed by the board of
  154  administration without at least 14 days’ notice to the person
  155  sought to be fined or suspended and an opportunity for a hearing
  156  before a committee of at least three members appointed by the
  157  board who are not officers, directors, or employees of the
  158  association, or the spouse, parent, child, brother, or sister of
  159  an officer, director, or employee. If the committee, by majority
  160  vote, does not approve a proposed fine or suspension, it may not
  161  be imposed. The role of the committee is limited to determining
  162  whether to confirm or reject the fine or suspension levied by
  163  the board. If the board of administration imposes a fine or
  164  suspension, the association must provide written notice of such
  165  fine or suspension by mail or hand delivery to the parcel owner
  166  and, if applicable, to any tenant, licensee, or invitee of the
  167  parcel owner.
  168         Section 54. Subsection (1) and paragraph (d) of subsection
  169  (2) of section 720.311, Florida Statutes, are amended to read:
  170         720.311 Dispute resolution.—
  171         (1) The Legislature finds that alternative dispute
  172  resolution has made progress in reducing court dockets and
  173  trials and in offering a more efficient, cost-effective option
  174  to litigation. The filing of any petition for arbitration or the
  175  serving of a demand for presuit mediation as provided for in
  176  this section shall toll the applicable statute of limitations.
  177  Any recall dispute filed with the department pursuant to s.
  178  720.303(10) shall be conducted by the department in accordance
  179  with the provisions of ss. 718.112(2)(j) and 718.1255 and the
  180  rules adopted by the division. In addition, the department shall
  181  conduct mandatory binding arbitration of election disputes
  182  between a member and an association pursuant to s. 718.1255 and
  183  rules adopted by the division. Neither Election disputes and nor
  184  recall disputes are eligible for presuit mediation; these
  185  disputes shall be arbitrated by the department. At the request
  186  of the parcel owner or the homeowners’ association, the
  187  department is authorized to, and shall provide, binding
  188  arbitration in disputes involving covenants, restrictions, rule
  189  enforcement, and duties to maintain and make safe pursuant to
  190  the declaration of covenants, rules and regulations, and other
  191  governing documents; disputes involving assessments; and
  192  disputes involving the official records of the homeowners’
  193  association. At the conclusion of the proceeding, the department
  194  shall charge the parties a fee in an amount adequate to cover
  195  all costs and expenses incurred by the department in conducting
  196  the proceeding. Initially, the petitioner shall remit a filing
  197  fee of at least $200 to the department. The fees paid to the
  198  department shall become a recoverable cost in the arbitration
  199  proceeding, and the prevailing party in an arbitration
  200  proceeding shall recover its reasonable costs and attorney
  201  attorney’s fees in an amount found reasonable by the arbitrator.
  202  The department shall adopt rules to effectuate the purposes of
  203  this section.
  204         (2)
  205         (d) A mediator or arbitrator shall be authorized to conduct
  206  mediation or arbitration under this section only if he or she
  207  has been certified as a county court or circuit court civil
  208  mediator or arbitrator, respectively, pursuant to the
  209  requirements established by the Florida Supreme Court.
  210  Settlement agreements resulting from mediation do shall not have
  211  precedential value in proceedings involving parties other than
  212  those participating in the mediation to support either a claim
  213  or defense in other disputes.
  214         Section 55. Present subsection (2) of section 720.401,
  215  Florida Statutes, is redesignated as subsection (3), and a new
  216  subsection (2) is added to that section, to read:
  217         720.401 Prospective purchasers subject to association
  218  membership requirement; disclosure required; covenants;
  219  assessments; contract cancellation.—
  220         (2) A seller of a parcel for which membership in a
  221  homeowners’ association is a condition of ownership must provide
  222  a prospective buyer with the association’s governing documents,
  223  including the declaration of covenants, the articles and bylaws,
  224  any rules and regulations, the operating budget for the current
  225  year, and any amendments to such documents. The seller must
  226  provide the prospective buyer with such documents at least 7
  227  days before closing. The prospective buyer may terminate the
  228  contract for purchase within 3 days after receipt of such
  229  documents.
  231  ================= T I T L E  A M E N D M E N T ================
  232  And the title is amended as follows:
  233         Delete lines 146 - 148
  234  and insert:
  235         financial report; amending s. 720.302, F.S.; revising
  236         legislative findings; amending s. 720.303, F.S.;
  237         deleting a provision authorizing a certain association
  238         to prepare a specified report; providing that a
  239         community association manager or management firm, or
  240         the association, must submit an annual report to the
  241         Division of Florida Condominiums, Timeshares, and
  242         Mobile Homes beginning on a specified date; requiring
  243         the community association or management firm, or the
  244         association, to resubmit the report under certain
  245         circumstances; revising the date by which the
  246         Department of Business and Professional Regulation
  247         must establish and implement a certain registration
  248         system through a website and the date by which it must
  249         prepare a certain report; revising an expiration date;
  250         amending s. 720.305, F.S.; providing that an action to
  251         collect a fine may not result in foreclosure on a
  252         parcel; deleting a provision prohibiting a fine less
  253         than $1,000 from becoming a lien against a parcel;
  254         amending s. 720.311, F.S.; providing that election and
  255         recall disputes are eligible for presuit mediation;
  256         providing that the department must provide binding
  257         arbitration for certain disputes at the request of the
  258         parcel owner or homeowners’ association; revising
  259         certification requirements to conduct mediation or
  260         arbitration in such disputes; amending s. 720.401,
  261         F.S.; providing that a seller must provide certain
  262         documents to a prospective buyer if membership in a
  263         homeowners’ association is a condition of ownership;
  264         authorizing a prospective buyer to terminate a
  265         contract for purchase within a specified timeframe;
  266         providing an effective