Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. CS for SB 766
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  03/01/2016           .                                
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       The Committee on Appropriations (Hays) recommended the
       following:
       
    1         Senate Amendment to Amendment (152060) (with title
    2  amendment)
    3  
    4         Between lines 524 and 525
    5  insert:
    6         Section 14. Subsection (2) of section 720.302, Florida
    7  Statutes, is amended to read:
    8         720.302 Purposes, scope, and application.—
    9         (2) The Legislature recognizes that it is not in the best
   10  interest of homeowners’ associations or the individual
   11  association members thereof to allow create or impose a bureau
   12  or other agency of state government to regulate a limited number
   13  of the affairs of homeowners’ associations. However,
   14         (a) In accordance with s. 720.311, the Legislature finds
   15  that homeowners’ associations and their individual members will
   16  benefit from an expedited alternative process for resolution of
   17  election and recall disputes and presuit mediation of other
   18  disputes involving covenant enforcement and authorizes the
   19  department to hear, administer, and determine these disputes as
   20  more fully set forth in this chapter.
   21         (b) The Legislature finds that homeowners’ associations and
   22  their individual members will benefit from having access to all
   23  records and financial documents. Therefore, the Legislature
   24  authorizes the department to receive and make a determination on
   25  complaints against homeowners’ associations, their officers, or
   26  any directors which involve association financial matters,
   27  access to official records, passage of an annual budget, reserve
   28  funds, or misappropriation of funds.
   29         (c) The Legislature recognizes that certain existing
   30  contract rights were created for the benefit of homeowners’
   31  associations and their members before July 1, 2016, and that ss.
   32  720.301-720.407 are not intended to impair such contract rights,
   33  including, but not limited to, the rights of a developer to
   34  complete a community as initially contemplated. Notwithstanding
   35  this, the Legislature finds that homeowners’ associations and
   36  their individual members will benefit from being afforded
   37  reasonable protections of their property through contractual
   38  rights and authorizes the department to receive and make a
   39  determination on complaints against any association or a
   40  director or an officer of an association that is still subject
   41  to developer control Further, the Legislature recognizes that
   42  certain contract rights have been created for the benefit of
   43  homeowners’ associations and members thereof before the
   44  effective date of this act and that ss. 720.301-720.407 are not
   45  intended to impair such contract rights, including, but not
   46  limited to, the rights of the developer to complete the
   47  community as initially contemplated.
   48         Section 15. Subsection (13) of section 720.303, Florida
   49  Statutes, is amended to read:
   50         720.303 Association powers and duties; meetings of board;
   51  official records; budgets; financial reporting; association
   52  funds; recalls.—
   53         (13) REPORTING REQUIREMENT.—The community association
   54  manager or management firm, or the association when there is no
   55  community association manager or management firm, shall submit a
   56  report to the division by November 22, 2016 2013, and each year
   57  thereafter in a manner and form prescribed by the division.
   58         (a) The report must shall include the association’s:
   59         1. Legal name.
   60         2. Federal employer identification number.
   61         3. Mailing and physical addresses.
   62         4. Total number of parcels.
   63         5. Total amount of revenues and expenses from the
   64  association’s annual budget.
   65         (b) For associations in which control of the association
   66  has not been transitioned to nondeveloper members, as set forth
   67  in s. 720.307, the report shall also include the developer’s:
   68         1. Legal name.
   69         2. Mailing address.
   70         3. Total number of parcels owned on the date of reporting.
   71         (c) The reporting requirement provided in this subsection
   72  shall be a continuing obligation on each association until the
   73  required information is reported to the division. The community
   74  association manager or management firm, or the association if
   75  there is no community association manager or management firm,
   76  must resubmit the report required under this subsection upon the
   77  occurrence of a material change in the information required to
   78  be reported pursuant to paragraphs (a) and (b).
   79         (d) By October 1, 2016 2013, the department shall establish
   80  and implement a registration system through a an Internet
   81  website that provides for the reporting requirements of
   82  paragraphs (a) and (b).
   83         (e) The department shall prepare an annual report of the
   84  data reported pursuant to this subsection and present it to the
   85  Governor, the President of the Senate, and the Speaker of the
   86  House of Representatives by December 1, 2016 2013, and each year
   87  thereafter.
   88         (f) The division shall adopt rules pursuant to ss.
   89  120.536(1) and 120.54 to implement the provisions of this
   90  subsection.
   91         (g) This subsection shall expire on July 1, 2026 2016,
   92  unless reenacted by the Legislature.
   93         Section 16. Subsection (2) of section 720.305, Florida
   94  Statutes, is amended to read:
   95         720.305 Obligations of members; remedies at law or in
   96  equity; levy of fines and suspension of use rights.—
   97         (2) The association may levy reasonable fines. A fine may
   98  not exceed $100 per violation against any member or any member’s
   99  tenant, guest, or invitee for the failure of the owner of the
  100  parcel or its occupant, licensee, or invitee to comply with any
  101  provision of the declaration, the association bylaws, or
  102  reasonable rules of the association unless otherwise provided in
  103  the governing documents. A fine may be levied by the board for
  104  each day of a continuing violation, with a single notice and
  105  opportunity for hearing, except that the fine may not exceed
  106  $1,000 in the aggregate unless otherwise provided in the
  107  governing documents. A fine, or an action to collect on a fine,
  108  may not result in foreclosure on of less than $1,000 may not
  109  become a lien against a parcel. In any action to recover a fine,
  110  the prevailing party is entitled to reasonable attorney fees and
  111  costs from the nonprevailing party as determined by the court.
  112         (a) An association may suspend, for a reasonable period of
  113  time, the right of a member, or a member’s tenant, guest, or
  114  invitee, to use common areas and facilities for the failure of
  115  the owner of the parcel or its occupant, licensee, or invitee to
  116  comply with any provision of the declaration, the association
  117  bylaws, or reasonable rules of the association. This paragraph
  118  does not apply to that portion of common areas used to provide
  119  access or utility services to the parcel. A suspension may not
  120  prohibit an owner or tenant of a parcel from having vehicular
  121  and pedestrian ingress to and egress from the parcel, including,
  122  but not limited to, the right to park.
  123         (b) A fine or suspension may not be imposed by the board of
  124  administration without at least 14 days’ notice to the person
  125  sought to be fined or suspended and an opportunity for a hearing
  126  before a committee of at least three members appointed by the
  127  board who are not officers, directors, or employees of the
  128  association, or the spouse, parent, child, brother, or sister of
  129  an officer, director, or employee. If the committee, by majority
  130  vote, does not approve a proposed fine or suspension, it may not
  131  be imposed. The role of the committee is limited to determining
  132  whether to confirm or reject the fine or suspension levied by
  133  the board. If the board of administration imposes a fine or
  134  suspension, the association must provide written notice of such
  135  fine or suspension by mail or hand delivery to the parcel owner
  136  and, if applicable, to any tenant, licensee, or invitee of the
  137  parcel owner.
  138         Section 17. Subsection (1) and paragraph (d) of subsection
  139  (2) of section 720.311, Florida Statutes, are amended to read:
  140         720.311 Dispute resolution.—
  141         (1) The Legislature finds that alternative dispute
  142  resolution has made progress in reducing court dockets and
  143  trials and in offering a more efficient, cost-effective option
  144  to litigation. The filing of any petition for arbitration or the
  145  serving of a demand for presuit mediation as provided for in
  146  this section shall toll the applicable statute of limitations.
  147  Any recall dispute filed with the department pursuant to s.
  148  720.303(10) shall be conducted by the department in accordance
  149  with the provisions of ss. 718.112(2)(j) and 718.1255 and the
  150  rules adopted by the division. In addition, the department shall
  151  conduct mandatory binding arbitration of election disputes
  152  between a member and an association pursuant to s. 718.1255 and
  153  rules adopted by the division. Neither Election disputes and nor
  154  recall disputes are eligible for presuit mediation; these
  155  disputes shall be arbitrated by the department. At the request
  156  of the parcel owner or the homeowners’ association, the
  157  department is authorized to, and shall provide, binding
  158  arbitration in disputes involving covenants, restrictions, rule
  159  enforcement, and duties to maintain and make safe pursuant to
  160  the declaration of covenants, rules and regulations, and other
  161  governing documents; disputes involving assessments; and
  162  disputes involving the official records of the homeowners’
  163  association. At the conclusion of the proceeding, the department
  164  shall charge the parties a fee in an amount adequate to cover
  165  all costs and expenses incurred by the department in conducting
  166  the proceeding. Initially, the petitioner shall remit a filing
  167  fee of at least $200 to the department. The fees paid to the
  168  department shall become a recoverable cost in the arbitration
  169  proceeding, and the prevailing party in an arbitration
  170  proceeding shall recover its reasonable costs and attorney
  171  attorney’s fees in an amount found reasonable by the arbitrator.
  172  The department shall adopt rules to effectuate the purposes of
  173  this section.
  174         (2)
  175         (d) A mediator or arbitrator shall be authorized to conduct
  176  mediation or arbitration under this section only if he or she
  177  has been certified as a county court or circuit court civil
  178  mediator or arbitrator, respectively, pursuant to the
  179  requirements established by the Florida Supreme Court.
  180  Settlement agreements resulting from mediation do shall not have
  181  precedential value in proceedings involving parties other than
  182  those participating in the mediation to support either a claim
  183  or defense in other disputes.
  184         Section 18. Present subsection (2) of section 720.401,
  185  Florida Statutes, is redesignated as subsection (3), and a new
  186  subsection (2) is added to that section, to read:
  187         720.401 Prospective purchasers subject to association
  188  membership requirement; disclosure required; covenants;
  189  assessments; contract cancellation.—
  190         (2) A seller of a parcel for which membership in a
  191  homeowners’ association is a condition of ownership must provide
  192  a prospective buyer with the association’s governing documents,
  193  including the declaration of covenants, the articles and bylaws,
  194  any rules and regulations, the operating budget for the current
  195  year, and any amendments to such documents. The seller must
  196  provide the prospective buyer with such documents at least 7
  197  days before closing. The prospective buyer may terminate the
  198  contract for purchase within 3 days after receipt of such
  199  documents.
  200  
  201  ================= T I T L E  A M E N D M E N T ================
  202  And the title is amended as follows:
  203         Delete lines 644 - 691
  204  and insert:
  205         An act relating to real property; amending s.
  206         192.0105, F.S.; conforming provisions to changes made
  207         by the act; amending s. 193.073, F.S.; revising
  208         procedures for the revision of an erroneous or
  209         incomplete personal property tax return; amending s.
  210         193.122, F.S.; specifying deadlines for value
  211         adjustment boards to complete certain hearings and
  212         final assessment roll certifications; providing
  213         exceptions; providing applicability; amending ss.
  214         193.155, 193.1554, and 193.1555, F.S.; requiring a
  215         property appraiser to serve a notice of intent to
  216         record a notice of tax lien under certain
  217         circumstances; requiring certain taxpayers to be given
  218         a specified timeframe to pay taxes, penalties, and
  219         interest to avoid the filing of a lien; prohibiting
  220         the assessment of penalties and interest under certain
  221         circumstances; amending s. 194.011, F.S.; revising the
  222         procedures for filing petitions to the value
  223         adjustment board; providing applicability as to the
  224         confidentiality of certain taxpayer information;
  225         amending s. 194.014, F.S.; revising the entities
  226         authorized to determine under certain circumstances
  227         that a petitioner owes ad valorem taxes or is owed a
  228         refund of overpaid taxes; revising the rate at which
  229         interest accrues on unpaid and overpaid ad valorem
  230         taxes; defining the term “bank prime loan rate”;
  231         amending s. 194.032, F.S.; revising the purposes for
  232         which a value adjustment board may meet; revising
  233         requirements for the provision of property record
  234         cards to a petitioner for certain hearings; requiring
  235         the petitioner or property appraiser to show good
  236         cause to reschedule a hearing related to an
  237         assessment; defining the term “good cause”; amending
  238         s. 194.034, F.S.; revising requirements for an entity
  239         that may represent a taxpayer before the value
  240         adjustment board; requiring the Department of Revenue
  241         to adopt certain forms; prohibiting a taxpayer from
  242         contesting an assessment unless the return was timely
  243         filed; defining the term “timely filed”; revising
  244         provisions relating to findings of fact; amending s.
  245         194.035, F.S.; specifying that certain petitions must
  246         be heard by a special magistrate; prohibiting
  247         consideration of assessment reductions recommended in
  248         previous hearings by special magistrates when
  249         appointing or when scheduling a special magistrate;
  250         amending s. 197.3632, F.S.; extending the dates for
  251         certain counties to adopt or certify non-ad valorem
  252         assessment rolls; amending s. 720.302, F.S.; revising
  253         legislative findings; amending s. 720.303, F.S.;
  254         providing that a community association manager or
  255         management firm, or the association, must submit an
  256         annual report to the Division of Florida Condominiums,
  257         Timeshares, and Mobile Homes beginning on a specified
  258         date; requiring the community association or
  259         management firm, or the association, to resubmit the
  260         report under certain circumstances; revising the date
  261         by which the Department of Business and Professional
  262         Regulation must establish and implement a certain
  263         registration system through a website and the date by
  264         which it must prepare a certain report; revising an
  265         expiration date; amending s. 720.305, F.S.; providing
  266         that an action to collect a fine may not result in
  267         foreclosure on a parcel; deleting a provision
  268         prohibiting a fine less than $1,000 from becoming a
  269         lien against a parcel; amending s. 720.311, F.S.;
  270         providing that election and recall disputes are
  271         eligible for presuit mediation; providing that the
  272         department must provide binding arbitration for
  273         certain disputes at the request of the parcel owner or
  274         homeowners’ association; revising certification
  275         requirements to conduct mediation or arbitration in
  276         such disputes; amending s. 720.401, F.S.; providing
  277         that a seller must provide certain documents to a
  278         prospective buyer if membership in a homeowners’
  279         association is a condition of ownership; authorizing a
  280         prospective buyer to terminate a contract for purchase
  281         within a specified timeframe; reenacting and amending
  282         s.