CS/CS/CS/HB 561

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	399.02, F.S.; exempting certain elevators from specific
4	code update requirements; providing a phase-in period for
5	such elevators; amending s. 617.0721, F.S.; revising the
6	limitations on the right of members to vote on corporate
7	matters for certain corporations not for profit that are
8	regulated under ch. 718 or ch. 719, F.S.; amending s.
9	617.0808, F.S.; exempting certain corporations not for
10	profit that are an association as defined in s. 720.301,
11	F.S., or a corporation regulated under ch. 718 or ch. 719,
12	F.S., from certain provisions relating to the removal of a
13	director; creating s. 617.1606, F.S.; providing that
14	certain statutory provisions providing for the inspection
15	of corporate records do not apply to a corporation not for
16	profit that is an association as defined in s. 720.301,
17	F.S., or a corporation regulated under ch. 718 or ch. 719,
18	F.S.; creating s. 627.714, F.S.; requiring that coverage
19	under a condominium unit owner's policy for certain
20	assessments include at least a minimum amount of loss
21	assessment coverage; requiring that every property
22	insurance policy to an individual condominium unit owner
23	contain a specified provision; amending s. 633.0215, F.S.;
24	exempting certain residential buildings from a requirement
25	to install a manual fire alarm system; amending s.
26	718.103, F.S.; redefining the term "developer"; amending
27	s. 718.110, F.S.; allowing the condominium association to
28	have the authority to restrict through an amendment to a
29	declaration of condominium, rather than prohibit, the
30	rental of condominium units; amending s. 718.111, F.S.;
31	deleting a requirement for the board of a condominium to
32	hold a meeting open to unit owners to establish the amount
33	of an insurance deductible; revising the property to which
34	a property insurance policy for a condominium association
35	applies; revising the requirements for a condominium unit
36	owner's property insurance policy; limiting the
37	circumstances under which a person who violates
38	requirements to maintain association records may be
39	personally liable for a civil penalty; providing that a
40	condominium association is not responsible for the use of
41	certain information provided to an association member
42	under certain circumstances; specifying records of a
43	condominium association that are exempt from a requirement
44	for records to be available for inspection by an
45	association member; revising the requirements for rules
46	relating to the financial report that must be adopted by
47	the Division of Florida Condominiums, Timeshares, and
48	Mobile Homes of the Department of Business and
49	Professional Regulation; revising the requirements for a
50	financial report based on the amount of a condominium's
51	revenues; amending s. 718.112, F.S.; revising provisions
52	relating to the terms of appointment or election of
53	condominium members to a board of administration; creating
54	exceptions to such provisions for condominiums that
55	contain timeshares; specifying a certification that a
56	person who is appointed or elected to a board of
57	administration must make or educational requirements such
58	board member must satisfy; conforming cross-references to
59	changes made by the act; deleting a provision prohibiting
60	an association from foregoing the retrofitting with a fire
61	sprinkler system of common areas in a high-rise building;
62	prohibiting local authorities having jurisdiction from
63	requiring retrofitting with a sprinkler system or other
64	engineered lifesafety system before a specified date;
65	requiring an association that has not voted to forego
66	retrofitting to file for a building permit by a certain
67	date; authorizing an association to forgo retrofitting
68	under certain circumstances; providing requirements for a
69	special meeting of unit owners which may be called every 3
70	years in order to vote to forgo retrofitting of the
71	sprinkler system or other engineered lifesafety systems;
72	providing meeting notice requirements; expanding the
73	monetary obligations that a director or officer must
74	satisfy to avoid abandoning his or her office; revising
75	provisions relating to director or officer offenses;
76	providing that a condominium association may expend moneys
77	for neighborhood marketing activities; amending s.
78	718.115, F.S.; specifying certain services provided in a
79	declaration of condominium which are obtained pursuant to
80	a bulk contract to be deemed a common expense; specifying
81	provisions that must be contained in a bulk contract;
82	specifying cancellation procedures for bulk contracts;
83	amending s. 718.116, F.S.; increasing the liability of a
84	first mortgagee or assignee of a first mortgagee for
85	assessments owed at the time of a foreclosure sale;
86	requiring a tenant in a unit owned by a person who is
87	delinquent in the payment of a monetary obligation to the
88	condominium association to pay rent to the association
89	under certain circumstances; authorizing the condominium
90	association to sue such tenant who fails to pay rent for
91	eviction under certain circumstances; providing that the
92	tenant is immune from claims from the unit owner as the
93	result of paying rent to the association under certain
94	circumstances; amending s. 718.117, F.S.; revising the
95	circumstances under which a condominium association may be
96	terminated due to economic waste or impossibility;
97	revising provisions specifying the effect of a termination
98	of condominium; amending s. 718.202, F.S.; providing that
99	certain escrow funds may be maintained in a common escrow
100	account; amending s. 718.301, F.S.; revising conditions
101	under which unit owners other than the developer may elect
102	at least a majority of the members of the board of
103	administration of an association; amending s. 718.303,
104	F.S.; authorizing an association to suspend for a
105	reasonable time the right of a unit owner or the unit's
106	occupant, licensee, or invitee to use certain common
107	elements under certain circumstances; prohibiting a fine
108	from being levied or a suspension from being imposed
109	unless the association meets certain requirements for
110	notice and provides an opportunity for a hearing;
111	authorizing an association to suspend voting rights of a
112	member due to nonpayment of assessments, fines, or other
113	charges under certain circumstances; amending s. 718.501,
114	F.S.; specifying that the jurisdiction of the Division of
115	Florida Condominiums, Timeshares, and Mobile Homes
116	includes bulk assignees and bulk buyers; creating part VII
117	of ch. 718, F.S.; creating the "Distressed Condominium
118	Relief Act"; providing legislative findings and intent;
119	defining the terms "bulk assignee" and "bulk buyer";
120	providing for the assignment of developer rights by a bulk
121	assignee; specifying liabilities of bulk assignees and
122	bulk buyers; providing exceptions; providing additional
123	responsibilities of bulk assignees and bulk buyers;
124	authorizing certain entities to assign developer rights to
125	a bulk assignee; limiting the number of bulk assignees at
126	any given time; providing for the transfer of control of a
127	board of administration to unit owners; providing effects
128	of such transfer on parcels acquired by a bulk assignee;
129	providing obligations of a bulk assignee upon the transfer
130	of control of a board of administration; requiring that a
131	bulk assignee certify certain information in writing;
132	providing for the resolution of a conflict between
133	specified provisions of state law; providing that the
134	failure of a bulk assignee or bulk buyer to comply with
135	specified provisions of state law results in the loss of
136	certain protections and exemptions; requiring that a bulk
137	assignee or bulk buyer file certain information with the
138	Division of Florida Condominiums, Timeshares, and Mobile
139	Homes of the Department of Business and Professional
140	Regulation before offering any units for sale or lease in
141	excess of a specified term; requiring that a copy of such
142	information be provided to a prospective purchaser or
143	tenant; requiring that certain contracts and disclosure
144	statements contain specified statements; requiring that a
145	bulk assignee or bulk buyer comply with certain disclosure
146	requirements; prohibiting a bulk assignee from authorizing
147	certain actions on behalf of an association while the bulk
148	assignee is in control of the board of administration of
149	the association; requiring that a bulk assignee or bulk
150	buyer comply with certain laws with respect to contracts
151	entered into by the association while the bulk assignee or
152	bulk buyer was in control of the board of administration;
153	providing parcel owners with specified protections
154	regarding certain contracts; requiring that a bulk buyer
155	comply with certain requirements regarding the transfer of
156	a parcel; prohibiting a person from being classified as a
157	bulk assignee or bulk buyer unless condominium parcels
158	were acquired before a specified date; providing that the
159	assignment of developer rights to a bulk assignee does not
160	release a developer from certain liabilities; amending s.
161	719.106, F.S.; providing for the filling of vacancies on
162	the board of administration of a cooperative; amending s.
163	719.1055, F.S.; providing an additional required provision
164	in cooperative bylaws; deleting a provision prohibiting an
165	association from foregoing the retrofitting with a fire
166	sprinkler system of common areas in a high-rise building;
167	prohibiting local authorities having jurisdiction from
168	requiring retrofitting with a sprinkler system or other
169	engineered lifesafety system before a specified date;
170	providing requirements for a special meeting of unit
171	owners which may be called every 3 years in order to vote
172	to require retrofitting of the sprinkler system or other
173	engineered lifesafety system; providing meeting notice
174	requirements; amending s. 719.108, F.S.; providing for a
175	lien by an association on a cooperative unit for certain
176	fees and costs; providing procedures and notice
177	requirements for the filing of a lien by an association;
178	requiring a tenant in a unit owned by a person who is
179	delinquent in the payment of a monetary obligation to the
180	cooperative association to pay rent to the association
181	under certain circumstances; amending s. 720.303, F.S.;
182	revising provisions relating to homeowners' association
183	board meetings, inspection and copying of records, and
184	reserve accounts of budgets; expanding the list of
185	association records that are not accessible to members and
186	parcel owners; prohibiting certain association personnel
187	from receiving a salary or compensation; providing
188	exceptions; amending s. 720.304, F.S.; providing that a
189	flagpole and any flagpole display are subject to certain
190	codes and regulations; amending s. 720.305, F.S.;
191	authorizing a homeowners' association to suspend rights to
192	use common areas and facilities if the member is
193	delinquent on the payment of a monetary obligation due for
194	a certain period of time; providing procedures and notice
195	requirements for levying a fine or imposing a suspension;
196	amending s. 720.306, F.S.; providing requirements for
197	secret ballots; providing procedures for filling a vacancy
198	on the board of directors of a homeowners' association;
199	amending s. 720.3085, F.S.; requiring a tenant in a
200	property owned by a person who is delinquent in the
201	payment of a monetary obligation to the homeowners'
202	association to pay rent to the association under certain
203	circumstances; amending s. 720.31, F.S.; authorizing an
204	association to enter into certain agreements to use lands
205	or facilities; requiring that certain items be stated and
206	fully described in the declaration; limiting an
207	association's power to enter into such agreements after a
208	specified period following the recording of a declaration;
209	requiring that certain agreements be approved by a
210	specified percentage of voting interests of an association
211	when the declaration is silent as to the authority of an
212	association to enter into such agreement; authorizing an
213	association to join with other associations or a master
214	association under certain circumstances and for specified
215	purposes; creating s. 720.315, F.S.; prohibiting the board
216	of directors of a homeowners' association from levying a
217	special assessment before turnover of the association by
218	the developer unless certain conditions are met; providing
219	an effective date.
220
221	Be It Enacted by the Legislature of the State of Florida:
222
223	Section 1. Subsection (8) is added to section 399.02,
224	Florida Statutes, to read:
225	399.02 General requirements.-
226	(8) Updates to the code requiring modifications for Phase
227	II Firefighters' Service on existing elevators, as amended into
228	the Safety Code for Existing Elevators and Escalators, ASME
229	A17.1 and A17.3, may not be enforced on elevators in
230	condominiums, cooperatives, or multifamily residential buildings
231	issued a certificate of occupancy by the local building
232	authority as of July 1, 2008, for 5 years or until the elevator
233	is replaced or requires major modification, whichever occurs
234	first. This exception does not apply to a building for which a
235	certificate of occupancy was issued after July 1, 2008. This
236	exception does not prevent an elevator owner from requesting a
237	variance from the applicable codes before or after the
238	expiration of the 5-year term. This subsection does not prohibit
239	the division from granting variances pursuant to s. 120.542. The
240	division shall adopt rules to administer this subsection.
241	Section 2. Subsection (7) of section 617.0721, Florida
242	Statutes, is amended to read:
243	617.0721 Voting by members.-
244	(7) Subsections (1), (2), (5), and (6) do not apply to a
245	corporation that is an association, as defined in s. 720.301, or
246	a corporation regulated by chapter 718 or chapter 719.
247	Section 3. Subsection (3) is added to section 617.0808,
248	Florida Statutes, to read:
249	617.0808 Removal of directors.-
250	(3) This section does not apply to any corporation that is
251	an association, as defined in s. 720.301, or a corporation
252	regulated under chapter 718 or chapter 719.
253	Section 4. Section 617.1606, Florida Statutes, is created
254	to read:
255	617.1606 Access to records.-Sections 617.1601-617.1605 do
256	not apply to a corporation that is an association, as defined in
257	s. 720.301, or a corporation regulated under chapter 718 or
258	chapter 719.
259	Section 5. Section 627.714, Florida Statutes, is created
260	to read:
261	627.714 Residential condominium unit owner coverage; loss
262	assessment coverage required.-For policies issued or renewed on
263	or after July 1, 2010, coverage under a condominium unit owner's
264	residential property policy must include at least $2,000 in
265	property loss assessment coverage for all assessments made as a
266	result of the same direct loss to the property, regardless of
267	the number of assessments, owned by all members of the
268	association collectively if such loss is of the type of loss
269	covered by the unit owner's residential property insurance
270	policy, to which a deductible of no more than $250 per direct
271	property loss applies. If a deductible was or will be applied to
272	other property loss sustained by the unit owner resulting from
273	the same direct loss to the property, no deductible applies to
274	the loss assessment coverage. The maximum amount of any
275	condominium unit owner's loss assessment coverage that can be
276	assessed for any loss shall be an amount equal to that unit
277	owner's loss assessment coverage limit that was in effect 1 day
278	before the date of the occurrence. Any changes to the limits of
279	a condominium unit owner's coverage for loss assessments that
280	are made on or after 1 day before the date that the loss occurs
281	shall not be applicable to that loss. Regardless of the number
282	of assessments, an insurer providing loss assessment coverage to
283	a condominium unit owner is not required to pay more than an
284	amount equal to that unit owner's loss assessment coverage limit
285	as a result of the same direct loss to property. Every
286	individual condominium unit owner's residential property policy
287	must contain a provision stating that the coverage afforded by
288	such policy is excess coverage over the amount recoverable under
289	any other policy covering the same property.
290	Section 6. Subsection (13) is added to section 633.0215,
291	Florida Statutes, to read:
292	633.0215 Florida Fire Prevention Code.-
293	(13) A condominium, cooperative, or multifamily
294	residential building that is less than four stories in height
295	and has a corridor providing an exterior means of egress is
296	exempt from the requirement to install a manual fire alarm
297	system under s. 9.6 of the Life Safety Code adopted in the
298	Florida Fire Prevention Code.
299	Section 7. Subsection (16) of section 718.103, Florida
300	Statutes, is amended to read:
301	718.103 Definitions.-As used in this chapter, the term:
302	(16) "Developer" means a person who creates a condominium
303	or offers condominium parcels for sale or lease in the ordinary
304	course of business, but does not include:
305	(a) An owner or lessee of a condominium or cooperative
306	unit who has acquired the unit for his or her own occupancy;,
307	nor does it include
308	(b) A cooperative association that which creates a
309	condominium by conversion of an existing residential cooperative
310	after control of the association has been transferred to the
311	unit owners if, following the conversion, the unit owners are
312	will be the same persons who were unit owners of the cooperative
313	and no units are offered for sale or lease to the public as part
314	of the plan of conversion;.
315	(c) A bulk assignee or bulk buyer as defined in s.
316	718.703; or
317	(d) A state, county, or municipal entity is not a
318	developer for any purposes under this act when it is acting as a
319	lessor and not otherwise named as a developer in the declaration
320	of condominium association.
321	Section 8. Subsection (13) of section 718.110, Florida
322	Statutes, is amended to read:
323	718.110 Amendment of declaration; correction of error or
324	omission in declaration by circuit court.-
325	(13) An Any amendment prohibiting restricting unit owners
326	from renting their units or altering the duration of the rental
327	term or specifying or limiting the number of times unit owners
328	are entitled to rent their units during a specified period
329	owners' rights relating to the rental of units applies only to
330	unit owners who consent to the amendment and unit owners who
331	acquire title to purchase their units after the effective date
332	of that amendment.
333	Section 9. Paragraphs (a), (b), (c), (d), (f), (g), (j),
334	and (n) of subsection (11) and subsections (12) and (13) of
335	section 718.111, Florida Statutes, are amended to read:
336	718.111 The association.-
337	(11) INSURANCE.-In order to protect the safety, health,
338	and welfare of the people of the State of Florida and to ensure
339	consistency in the provision of insurance coverage to
340	condominiums and their unit owners, this subsection applies to
341	every residential condominium in the state, regardless of the
342	date of its declaration of condominium. It is the intent of the
343	Legislature to encourage lower or stable insurance premiums for
344	associations described in this subsection.
345	(a) Adequate property hazard insurance, regardless of any
346	requirement in the declaration of condominium for coverage by
347	the association for full insurable value, replacement cost, or
348	similar coverage, must shall be based on upon the replacement
349	cost of the property to be insured as determined by an
350	independent insurance appraisal or update of a prior appraisal.
351	The replacement cost must full insurable value shall be
352	determined at least once every 36 months.
353	1. An association or group of associations may provide
354	adequate property hazard insurance through a self-insurance fund
355	that complies with the requirements of ss. 624.460-624.488.
356	2. The association may also provide adequate property
357	hazard insurance coverage for a group of at least no fewer than
358	three communities created and operating under this chapter,
359	chapter 719, chapter 720, or chapter 721 by obtaining and
360	maintaining for such communities insurance coverage sufficient
361	to cover an amount equal to the probable maximum loss for the
362	communities for a 250-year windstorm event. Such probable
363	maximum loss must be determined through the use of a competent
364	model that has been accepted by the Florida Commission on
365	Hurricane Loss Projection Methodology. A No policy or program
366	providing such coverage may not shall be issued or renewed after
367	July 1, 2008, unless it has been reviewed and approved by the
368	Office of Insurance Regulation. The review and approval must
369	shall include approval of the policy and related forms pursuant
370	to ss. 627.410 and 627.411, approval of the rates pursuant to s.
371	627.062, a determination that the loss model approved by the
372	commission was accurately and appropriately applied to the
373	insured structures to determine the 250-year probable maximum
374	loss, and a determination that complete and accurate disclosure
375	of all material provisions is provided to condominium unit
376	owners before prior to execution of the agreement by a
377	condominium association.
378	3. When determining the adequate amount of property hazard
379	insurance coverage, the association may consider deductibles as
380	determined by this subsection.
381	(b) If an association is a developer-controlled
382	association, the association shall exercise its best efforts to
383	obtain and maintain insurance as described in paragraph (a).
384	Failure to obtain and maintain adequate property hazard
385	insurance during any period of developer control constitutes a
386	breach of fiduciary responsibility by the developer-appointed
387	members of the board of directors of the association, unless the
388	members can show that despite such failure, they have made their
389	best efforts to maintain the required coverage.
390	(c) Policies may include deductibles as determined by the
391	board.
392	1. The deductibles must shall be consistent with industry
393	standards and prevailing practice for communities of similar
394	size and age, and having similar construction and facilities in
395	the locale where the condominium property is situated.
396	2. The deductibles may be based upon available funds,
397	including reserve accounts, or predetermined assessment
398	authority at the time the insurance is obtained.
399	3. The board shall establish the amount of deductibles
400	based upon the level of available funds and predetermined
401	assessment authority at a meeting of the board. Such meeting
402	shall be open to all unit owners in the manner set forth in s.
403	718.112(2)(e). The notice of such meeting must state the
404	proposed deductible and the available funds and the assessment
405	authority relied upon by the board and estimate any potential
406	assessment amount against each unit, if any. The meeting
407	described in this paragraph may be held in conjunction with a
408	meeting to consider the proposed budget or an amendment thereto.
409	(d) An association controlled by unit owners operating as
410	a residential condominium shall use its best efforts to obtain
411	and maintain adequate property insurance to protect the
412	association, the association property, the common elements, and
413	the condominium property that must is required to be insured by
414	the association pursuant to this subsection.
415	(f) Every property hazard insurance policy issued or
416	renewed on or after January 1, 2009, for the purpose of
417	protecting the condominium must shall provide primary coverage
418	for:
419	1. All portions of the condominium property as originally
420	installed or replacement of like kind and quality, in accordance
421	with the original plans and specifications.
422	2. All alterations or additions made to the condominium
423	property or association property pursuant to s. 718.113(2).
424	3. The coverage must shall exclude all personal property
425	within the unit or limited common elements, and floor, wall, and
426	ceiling coverings, electrical fixtures, appliances, water
427	heaters, water filters, built-in cabinets and countertops, and
428	window treatments, including curtains, drapes, blinds, hardware,
429	and similar window treatment components, or replacements of any
430	of the foregoing which are located within the boundaries of the
431	unit and serve only such unit. Such property and any insurance
432	thereupon is the responsibility of the unit owner.
433	(g) A condominium unit owner's policy must conform to the
434	requirements of s. 627.714. Every hazard insurance policy issued
435	or renewed on or after January 1, 2009, to an individual unit
436	owner must contain a provision stating that the coverage
437	afforded by such policy is excess coverage over the amount
438	recoverable under any other policy covering the same property.
439	Such policies must include special assessment coverage of no
440	less than $2,000 per occurrence. An insurance policy issued to
441	an individual unit owner providing such coverage does not
442	provide rights of subrogation against the condominium
443	association operating the condominium in which such individual's
444	unit is located.
445	1. All improvements or additions to the condominium
446	property that benefit fewer than all unit owners shall be
447	insured by the unit owner or owners having the use thereof, or
448	may be insured by the association at the cost and expense of the
449	unit owners having the use thereof.
450	2. The association shall require each owner to provide
451	evidence of a currently effective policy of hazard and liability
452	insurance upon request, but not more than once per year. Upon
453	the failure of an owner to provide a certificate of insurance
454	issued by an insurer approved to write such insurance in this
455	state within 30 days after the date on which a written request
456	is delivered, the association may purchase a policy of insurance
457	on behalf of an owner. The cost of such a policy, together with
458	reconstruction costs undertaken by the association but which are
459	the responsibility of the unit owner, may be collected in the
460	manner provided for the collection of assessments in s. 718.116.
461	1.3. All reconstruction work after a property casualty
462	loss must shall be undertaken by the association except as
463	otherwise authorized in this section. A unit owner may undertake
464	reconstruction work on portions of the unit with the prior
465	written consent of the board of administration. However, such
466	work may be conditioned upon the approval of the repair methods,
467	the qualifications of the proposed contractor, or the contract
468	that is used for that purpose. A unit owner must shall obtain
469	all required governmental permits and approvals before prior to
470	commencing reconstruction.
471	2.4. Unit owners are responsible for the cost of
472	reconstruction of any portions of the condominium property for
473	which the unit owner is required to carry property casualty
474	insurance, and any such reconstruction work undertaken by the
475	association is shall be chargeable to the unit owner and
476	enforceable as an assessment pursuant to s. 718.116. The
477	association must be an additional named insured and loss payee
478	on all casualty insurance policies issued to unit owners in the
479	condominium operated by the association.
480	3.5. A multicondominium association may elect, by a
481	majority vote of the collective members of the condominiums
482	operated by the association, to operate the such condominiums as
483	a single condominium for purposes of insurance matters,
484	including, but not limited to, the purchase of the property
485	hazard insurance required by this section and the apportionment
486	of deductibles and damages in excess of coverage. The election
487	to aggregate the treatment of insurance premiums, deductibles,
488	and excess damages constitutes an amendment to the declaration
489	of all condominiums operated by the association, and the costs
490	of insurance must shall be stated in the association budget. The
491	amendments must shall be recorded as required by s. 718.110.
492	(j) Any portion of the condominium property that must
493	required to be insured by the association against property
494	casualty loss pursuant to paragraph (f) which is damaged by
495	casualty shall be reconstructed, repaired, or replaced as
496	necessary by the association as a common expense. All property
497	hazard insurance deductibles, uninsured losses, and other
498	damages in excess of property hazard insurance coverage under
499	the property hazard insurance policies maintained by the
500	association are a common expense of the condominium, except
501	that:
502	1. A unit owner is responsible for the costs of repair or
503	replacement of any portion of the condominium property not paid
504	by insurance proceeds, if such damage is caused by intentional
505	conduct, negligence, or failure to comply with the terms of the
506	declaration or the rules of the association by a unit owner, the
507	members of his or her family, unit occupants, tenants, guests,
508	or invitees, without compromise of the subrogation rights of the
509	any insurer as set forth in paragraph (g).
510	2. The provisions of subparagraph 1. regarding the
511	financial responsibility of a unit owner for the costs of
512	repairing or replacing other portions of the condominium
513	property also apply to the costs of repair or replacement of
514	personal property of other unit owners or the association, as
515	well as other property, whether real or personal, which the unit
516	owners are required to insure under paragraph (g).
517	3. To the extent the cost of repair or reconstruction for
518	which the unit owner is responsible under this paragraph is
519	reimbursed to the association by insurance proceeds, and, to the
520	extent the association has collected the cost of such repair or
521	reconstruction from the unit owner, the association shall
522	reimburse the unit owner without the waiver of any rights of
523	subrogation.
524	4. The association is not obligated to pay for
525	reconstruction or repairs of property casualty losses as a
526	common expense if the property casualty losses were known or
527	should have been known to a unit owner and were not reported to
528	the association until after the insurance claim of the
529	association for that property casualty was settled or resolved
530	with finality, or denied because on the basis that it was
531	untimely filed.
532	(n) The association is not obligated to pay for any
533	reconstruction or repair expenses due to property casualty loss
534	to any improvements installed by a current or former owner of
535	the unit or by the developer if the improvement benefits only
536	the unit for which it was installed and is not part of the
537	standard improvements installed by the developer on all units as
538	part of original construction, whether or not such improvement
539	is located within the unit. This paragraph does not relieve any
540	party of its obligations regarding recovery due under any
541	insurance implemented specifically for any such improvements.
542	(12) OFFICIAL RECORDS.-
543	(a) From the inception of the association, the association
544	shall maintain each of the following items, if when applicable,
545	which shall constitute the official records of the association:
546	1. A copy of the plans, permits, warranties, and other
547	items provided by the developer pursuant to s. 718.301(4).
548	2. A photocopy of the recorded declaration of condominium
549	of each condominium operated by the association and of each
550	amendment to each declaration.
551	3. A photocopy of the recorded bylaws of the association
552	and of each amendment to the bylaws.
553	4. A certified copy of the articles of incorporation of
554	the association, or other documents creating the association,
555	and of each amendment thereto.
556	5. A copy of the current rules of the association.
557	6. A book or books which contain the minutes of all
558	meetings of the association, of the board of administration, and
559	of unit owners, which minutes must shall be retained for at
560	least a period of not less than 7 years.
561	7. A current roster of all unit owners and their mailing
562	addresses, unit identifications, voting certifications, and, if
563	known, telephone numbers. The association shall also maintain
564	the electronic mailing addresses and the numbers designated by
565	unit owners for receiving notice sent by electronic transmission
566	of those unit owners consenting to receive notice by electronic
567	transmission. The electronic mailing addresses and telephone
568	numbers must provided by unit owners to receive notice by
569	electronic transmission shall be removed from association
570	records if when consent to receive notice by electronic
571	transmission is revoked. However, the association is not liable
572	for an erroneous disclosure of the electronic mail address or
573	the number for receiving electronic transmission of notices.
574	8. All current insurance policies of the association and
575	condominiums operated by the association.
576	9. A current copy of any management agreement, lease, or
577	other contract to which the association is a party or under
578	which the association or the unit owners have an obligation or
579	responsibility.
580	10. Bills of sale or transfer for all property owned by
581	the association.
582	11. Accounting records for the association and separate
583	accounting records for each condominium which the association
584	operates. All accounting records shall be maintained for at
585	least a period of not less than 7 years. Any person who
586	knowingly or intentionally defaces or destroys accounting
587	records required to be created and maintained by this chapter
588	during the period for which such records are required to be
589	maintained, or who knowingly or intentionally fails to create or
590	maintain such accounting records required to be maintained by
591	this chapter, with the intent of causing harm to the association
592	or one or more of its members, is personally subject to a civil
593	penalty pursuant to s. 718.501(1)(d). The accounting records
594	must shall include, but are not limited to:
595	a. Accurate, itemized, and detailed records of all
596	receipts and expenditures.
597	b. A current account and a monthly, bimonthly, or
598	quarterly statement of the account for each unit designating the
599	name of the unit owner, the due date and amount of each
600	assessment, the amount paid upon the account, and the balance
601	due.
602	c. All audits, reviews, accounting statements, and
603	financial reports of the association or condominium.
604	d. All contracts for work to be performed. Bids for work
605	to be performed are shall also be considered official records
606	and must shall be maintained by the association.
607	12. Ballots, sign-in sheets, voting proxies, and all other
608	papers relating to voting by unit owners, which must shall be
609	maintained for a period of 1 year from the date of the election,
610	vote, or meeting to which the document relates, notwithstanding
611	paragraph (b).
612	13. All rental records if, when the association is acting
613	as agent for the rental of condominium units.
614	14. A copy of the current question and answer sheet as
615	described in by s. 718.504.
616	15. All other records of the association not specifically
617	included in the foregoing which are related to the operation of
618	the association.
619	16. A copy of the inspection report as provided for in s.
620	718.301(4)(p).
621	(b) The official records of the association must shall be
622	maintained within the state for at least 7 years. The records of
623	the association shall be made available to a unit owner within
624	45 miles of the condominium property or within the county in
625	which the condominium property is located within 5 working days
626	after receipt of a written request by the board or its designee.
627	However, such distance requirement does not apply to an
628	association governing a timeshare condominium. This paragraph
629	may be complied with by having a copy of the official records of
630	the association available for inspection or copying on the
631	condominium property or association property, or the association
632	may offer the option of making the records of the association
633	available to a unit owner either electronically via the Internet
634	or by allowing the records to be viewed in electronic format on
635	a computer screen and printed upon request. The association is
636	not responsible for the use or misuse of the information
637	provided to an association member or his or her authorized
638	representative pursuant to the compliance requirements of this
639	chapter unless the association has an affirmative duty not to
640	disclose such information pursuant to this chapter.
641	(c) The official records of the association are open to
642	inspection by any association member or the authorized
643	representative of such member at all reasonable times. The right
644	to inspect the records includes the right to make or obtain
645	copies, at the reasonable expense, if any, of the association
646	member. The association may adopt reasonable rules regarding the
647	frequency, time, location, notice, and manner of record
648	inspections and copying. The failure of an association to
649	provide the records within 10 working days after receipt of a
650	written request creates shall create a rebuttable presumption
651	that the association willfully failed to comply with this
652	paragraph. A unit owner who is denied access to official records
653	is entitled to the actual damages or minimum damages for the
654	association's willful failure to comply with this paragraph. The
655	Minimum damages shall be $50 per calendar day up to 10 days, the
656	calculation to begin on the 11th working day after receipt of
657	the written request. The failure to permit inspection of the
658	association records as provided herein entitles any person
659	prevailing in an enforcement action to recover reasonable
660	attorney's fees from the person in control of the records who,
661	directly or indirectly, knowingly denied access to the records
662	for inspection. Any person who knowingly or intentionally
663	defaces or destroys accounting records that are required by this
664	chapter to be maintained during the period for which such
665	records are required to be maintained, or who knowingly or
666	intentionally fails to create or maintain accounting records
667	that are required to be created or maintained by this chapter,
668	with the intent of causing harm to the association or one or
669	more of its members, is personally subject to a civil penalty
670	pursuant to s. 718.501(1)(d). The association shall maintain an
671	adequate number of copies of the declaration, articles of
672	incorporation, bylaws, and rules, and all amendments to each of
673	the foregoing, as well as the question and answer sheet provided
674	for in s. 718.504 and year-end financial information required in
675	this section, on the condominium property to ensure their
676	availability to unit owners and prospective purchasers, and may
677	charge its actual costs for preparing and furnishing these
678	documents to those requesting the documents same.
679	Notwithstanding the provisions of this paragraph, the following
680	records are shall not be accessible to unit owners:
681	1. Any record protected by the lawyer-client privilege as
682	described in s. 90.502; and any record protected by the work-
683	product privilege, including any record prepared by an
684	association attorney or prepared at the attorney's express
685	direction; which reflects a mental impression, conclusion,
686	litigation strategy, or legal theory of the attorney or the
687	association, and which was prepared exclusively for civil or
688	criminal litigation or for adversarial administrative
689	proceedings, or which was prepared in anticipation of imminent
690	civil or criminal litigation or imminent adversarial
691	administrative proceedings until the conclusion of the
692	litigation or adversarial administrative proceedings.
693	2. Information obtained by an association in connection
694	with the approval of the lease, sale, or other transfer of a
695	unit.
696	3. Personnel records of association employees, including,
697	but not limited to, disciplinary, payroll, health, and insurance
698	records.
699	4.3. Medical records of unit owners.
700	5.4. Social security numbers, driver's license numbers,
701	credit card numbers, e-mail addresses, telephone numbers,
702	emergency contact information, any addresses of a unit owner
703	other than as provided to fulfill the association's notice
704	requirements, and other personal identifying information of any
705	person, excluding the person's name, unit designation, mailing
706	address, and property address.
707	6. Any electronic security measure that is used by the
708	association to safeguard data, including passwords.
709	7. The software and operating system used by the
710	association which allows manipulation of data, even if the owner
711	owns a copy of the same software used by the association. The
712	data is part of the official records of the association.
713	(d) The association shall prepare a question and answer
714	sheet as described in s. 718.504, and shall update it annually.
715	(e)1. The association or its authorized agent is not
716	required to provide a prospective purchaser or lienholder with
717	information about the condominium or the association other than
718	information or documents required by this chapter to be made
719	available or disclosed. The association or its authorized agent
720	may charge a reasonable fee to the prospective purchaser,
721	lienholder, or the current unit owner for providing good faith
722	responses to requests for information by or on behalf of a
723	prospective purchaser or lienholder, other than that required by
724	law, if the fee does not exceed $150 plus the reasonable cost of
725	photocopying and any attorney's fees incurred by the association
726	in connection with the response.
727	2. An association and its authorized agent are not liable
728	for providing such information in good faith pursuant to a
729	written request if the person providing the information includes
730	a written statement in substantially the following form: "The
731	responses herein are made in good faith and to the best of my
732	ability as to their accuracy."
733	(13) FINANCIAL REPORTING.-Within 90 days after the end of
734	the fiscal year, or annually on a date provided in the bylaws,
735	the association shall prepare and complete, or contract for the
736	preparation and completion of, a financial report for the
737	preceding fiscal year. Within 21 days after the final financial
738	report is completed by the association or received from the
739	third party, but not later than 120 days after the end of the
740	fiscal year or other date as provided in the bylaws, the
741	association shall mail to each unit owner at the address last
742	furnished to the association by the unit owner, or hand deliver
743	to each unit owner, a copy of the financial report or a notice
744	that a copy of the financial report will be mailed or hand
745	delivered to the unit owner, without charge, upon receipt of a
746	written request from the unit owner. The division shall adopt
747	rules setting forth uniform accounting principles and standards
748	to be used by all associations and shall adopt rules addressing
749	the financial reporting requirements for multicondominium
750	associations. The rules must shall include, but not be limited
751	to, standards for presenting a summary of association reserves,
752	including a good faith estimate disclosing the annual amount of
753	reserve funds that would be necessary for the association to
754	fully fund reserves for each reserve item based on the straight-
755	line accounting method. This disclosure is not applicable to
756	reserves funded via the pooling method. uniform accounting
757	principles and standards for stating the disclosure
758	a summary of the reserves, including information as
759	such reserves are being funded at a level sufficient
760	the need for a special assessment and, if not, the amount of
761	assessments necessary to bring the reserves up to the level
762	necessary to avoid a special assessment. The person preparing
763	the financial reports shall be entitled to rely on an inspection
764	report prepared for or provided to the association to meet the
765	fiscal and fiduciary standards of this chapter. In adopting such
766	rules, the division shall consider the number of members and
767	annual revenues of an association. Financial reports shall be
768	prepared as follows:
769	(a) An association that meets the criteria of this
770	paragraph shall prepare or cause to be prepared a complete set
771	of financial statements in accordance with generally accepted
772	accounting principles. The financial statements must shall be
773	based upon the association's total annual revenues, as follows:
774	1. An association with total annual revenues of $100,000
775	or more, but less than $200,000, shall prepare compiled
776	financial statements.
777	2. An association with total annual revenues of at least
778	$200,000, but less than $400,000, shall prepare reviewed
779	financial statements.
780	3. An association with total annual revenues of $400,000
781	or more shall prepare audited financial statements.
782	(b)1. An association with total annual revenues of less
783	than $100,000 shall prepare a report of cash receipts and
784	expenditures.
785	2. An association that which operates fewer less than 75
786	50 units, regardless of the association's annual revenues, shall
787	prepare a report of cash receipts and expenditures in lieu of
788	financial statements required by paragraph (a).
789	3. A report of cash receipts and disbursements must
790	disclose the amount of receipts by accounts and receipt
791	classifications and the amount of expenses by accounts and
792	expense classifications, including, but not limited to, the
793	following, as applicable: costs for security, professional and
794	management fees and expenses, taxes, costs for recreation
795	facilities, expenses for refuse collection and utility services,
796	expenses for lawn care, costs for building maintenance and
797	repair, insurance costs, administration and salary expenses, and
798	reserves accumulated and expended for capital expenditures,
799	deferred maintenance, and any other category for which the
800	association maintains reserves.
801	(c) An association may prepare or cause to be prepared,
802	without a meeting of or approval by the unit owners:
803	1. Compiled, reviewed, or audited financial statements, if
804	the association is required to prepare a report of cash receipts
805	and expenditures;
806	2. Reviewed or audited financial statements, if the
807	association is required to prepare compiled financial
808	statements; or
809	3. Audited financial statements if the association is
810	required to prepare reviewed financial statements.
811	(d) If approved by a majority of the voting interests
812	present at a properly called meeting of the association, an
813	association may prepare or cause to be prepared:
814	1. A report of cash receipts and expenditures in lieu of a
815	compiled, reviewed, or audited financial statement;
816	2. A report of cash receipts and expenditures or a
817	compiled financial statement in lieu of a reviewed or audited
818	financial statement; or
819	3. A report of cash receipts and expenditures, a compiled
820	financial statement, or a reviewed financial statement in lieu
821	of an audited financial statement.
822
823	Such meeting and approval must occur before prior to the end of
824	the fiscal year and is effective only for the fiscal year in
825	which the vote is taken, except that the approval may also may
826	be effective for the following fiscal year. With respect to an
827	association to which the developer has not turned over control
828	of the association, all unit owners, including the developer,
829	may vote on issues related to the preparation of financial
830	reports for the first 2 fiscal years of the association's
831	operation, beginning with the fiscal year in which the
832	declaration is recorded. Thereafter, all unit owners except the
833	developer may vote on such issues until control is turned over
834	to the association by the developer. Any audit or review
835	prepared under this section shall be paid for by the developer
836	if done before prior to turnover of control of the association.
837	An association may not waive the financial reporting
838	requirements of this section for more than 3 consecutive years.
839	Section 10. Paragraphs (d), (l), (n), and (o) of
840	subsection (2) of section 718.112, Florida Statutes, are
841	amended, and paragraph (e) is added to subsection (3) of that
842	section, to read:
843	718.112 Bylaws.-
844	(2) REQUIRED PROVISIONS.-The bylaws shall provide for the
845	following and, if they do not do so, shall be deemed to include
846	the following:
847	(d) Unit owner meetings.-
848	1. There shall be An annual meeting of the unit owners
849	shall be held at the location provided in the association bylaws
850	and, if the bylaws are silent as to the location, the meeting
851	shall be held within 45 miles of the condominium property.
852	However, such distance requirement does not apply to an
853	association governing a timeshare condominium. Unless the bylaws
854	provide otherwise, a vacancy on the board caused by the
855	expiration of a director's term shall be filled by electing a
856	new board member, and the election must shall be by secret
857	ballot.; However, if the number of vacancies equals or exceeds
858	the number of candidates, an no election is not required. Except
859	in a timeshare condominium, the terms of all members of the
860	board shall expire at the annual meeting and such board members
861	may stand for reelection unless otherwise permitted by the
862	bylaws. If In the event that the bylaws permit staggered terms
863	of no more than 2 years and upon approval of a majority of the
864	total voting interests, the association board members may serve
865	2-year staggered terms. If the number of board members whose
866	terms have expired exceeds the number of eligible members
867	showing interest in or demonstrating an intention to run for the
868	vacant positions no person is interested in or demonstrates an
869	intention to run for the position of a board
870	has expired according to the provisions of
871	each such board member whose term has expired
872	reappointment shall be automatically reappointed to the board of
873	administration and need not stand for reelection. In a
874	condominium association of more than 10 units or in a
875	condominium association that does not include timeshare units or
876	timeshare interests, coowners of a unit may not serve as members
877	of the board of directors at the same time unless they own more
878	than one unit or unless there are not enough eligible candidates
879	to fill the vacancies on the board at the time of the vacancy.
880	Any unit owner desiring to be a candidate for board membership
881	must shall comply with sub-subparagraph subparagraph 3.a. A
882	person who has been suspended or removed by the division under
883	this chapter, or who is delinquent in the payment of any fee,
884	fine, or special or regular assessment as provided in paragraph
885	(n), is not eligible for board membership. A person who has been
886	convicted of any felony in this state or in a United States
887	District or Territorial Court, or who has been convicted of any
888	offense in another jurisdiction that would be considered a
889	felony if committed in this state, is not eligible for board
890	membership unless such felon's civil rights have been restored
891	for at least a period of no less than 5 years as of the date on
892	which such person seeks election to the board. The validity of
893	an action by the board is not affected if it is later determined
894	that a member of the board is ineligible for board membership
895	due to having been convicted of a felony.
896	2. The bylaws must shall provide the method of calling
897	meetings of unit owners, including annual meetings. Written
898	notice, which notice must include an agenda, shall be mailed,
899	hand delivered, or electronically transmitted to each unit owner
900	at least 14 days before prior to the annual meeting and must
901	shall be posted in a conspicuous place on the condominium
902	property at least 14 continuous days preceding the annual
903	meeting. Upon notice to the unit owners, the board shall, by
904	duly adopted rule, designate a specific location on the
905	condominium property or association property upon which all
906	notices of unit owner meetings shall be posted.; However, if
907	there is no condominium property or association property upon
908	which notices can be posted, this requirement does not apply. In
909	lieu of or in addition to the physical posting of meeting
910	notices notice of any meeting of the unit owners on the
911	condominium property, the association may, by reasonable rule,
912	adopt a procedure for conspicuously posting and repeatedly
913	broadcasting the notice and the agenda on a closed-circuit cable
914	television system serving the condominium association. However,
915	if broadcast notice is used in lieu of a notice posted
916	physically on the condominium property, the notice and agenda
917	must be broadcast at least four times every broadcast hour of
918	each day that a posted notice is otherwise required under this
919	section. If When broadcast notice is provided, the notice and
920	agenda must be broadcast in a manner and for a sufficient
921	continuous length of time so as to allow an average reader to
922	observe the notice and read and comprehend the entire content of
923	the notice and the agenda. Unless a unit owner waives in writing
924	the right to receive notice of the annual meeting, such notice
925	must shall be hand delivered, mailed, or electronically
926	transmitted to each unit owner. Notice for meetings and notice
927	for all other purposes must shall be mailed to each unit owner
928	at the address last furnished to the association by the unit
929	owner, or hand delivered to each unit owner. However, if a unit
930	is owned by more than one person, the association shall provide
931	notice, for meetings and all other purposes, to that one address
932	which the developer initially identifies for that purpose and
933	thereafter as one or more of the owners of the unit shall so
934	advise the association in writing, or if no address is given or
935	the owners of the unit do not agree, to the address provided on
936	the deed of record. An officer of the association, or the
937	manager or other person providing notice of the association
938	meeting, shall provide an affidavit or United States Postal
939	Service certificate of mailing, to be included in the official
940	records of the association affirming that the notice was mailed
941	or hand delivered, in accordance with this provision.
942	3. The members of the board shall be elected by written
943	ballot or voting machine. Proxies may not shall in no event be
944	used in electing the board, either in general elections or
945	elections to fill vacancies caused by recall, resignation, or
946	otherwise, unless otherwise provided in this chapter.
947	a. At least Not less than 60 days before a scheduled
948	election, the association shall mail, deliver, or electronically
949	transmit, whether by separate association mailing or included in
950	another association mailing, delivery, or transmission,
951	including regularly published newsletters, to each unit owner
952	entitled to a vote, a first notice of the date of the election
953	along with a certification form provided by the division
954	attesting that he or she has read and understands, to the best
955	of his or her ability, the governing documents of the
956	association and the provisions of this chapter and any
957	applicable rules. Any unit owner or other eligible person
958	desiring to be a candidate for the board must give written
959	notice of his or her intent to be a candidate to the association
960	at least not less than 40 days before a scheduled election.
961	Together with the written notice and agenda as set forth in
962	subparagraph 2., the association shall mail, deliver, or
963	electronically transmit a second notice of the election to all
964	unit owners entitled to vote therein, together with a ballot
965	that lists which shall list all candidates. Upon request of a
966	candidate, the association shall include an information sheet,
967	no larger than 8 1/2 inches by 11 inches, which must be
968	furnished by the candidate at least not less than 35 days before
969	the election, must along with the signed certification form
970	provided for in this subparagraph, to be included with the
971	mailing, delivery, or transmission of the ballot, with the costs
972	of mailing, delivery, or electronic transmission and copying to
973	be borne by the association. The association is not liable for
974	the contents of the information sheets prepared by the
975	candidates. In order to reduce costs, the association may print
976	or duplicate the information sheets on both sides of the paper.
977	The division shall by rule establish voting procedures
978	consistent with this sub-subparagraph the provisions contained
979	herein, including rules establishing procedures for giving
980	notice by electronic transmission and rules providing for the
981	secrecy of ballots. Elections shall be decided by a plurality of
982	those ballots cast. There is shall be no quorum requirement;
983	however, at least 20 percent of the eligible voters must cast a
984	ballot in order to have a valid election of members of the
985	board. A No unit owner may not shall permit any other person to
986	vote his or her ballot, and any such ballots improperly cast are
987	shall be deemed invalid, provided any unit owner who violates
988	this provision may be fined by the association in accordance
989	with s. 718.303. A unit owner who needs assistance in casting
990	the ballot for the reasons stated in s. 101.051 may obtain such
991	assistance in casting the ballot. The regular election must
992	shall occur on the date of the annual meeting. The provisions of
993	This sub-subparagraph does subparagraph shall not apply to
994	timeshare condominium associations. Notwithstanding the
995	provisions of this sub-subparagraph subparagraph, an election is
996	not required unless more candidates file notices of intent to
997	run or are nominated than board vacancies exist.
998	b. Within 90 days after being elected or appointed to the
999	board, each newly elected or appointed director shall certify in
1000	writing to the secretary of the association that he or she has
1001	read the association's declaration of condominium, articles of
1002	incorporation, bylaws, and current written policies; that he or
1003	she will work to uphold such documents and policies to the best
1004	of his or her ability; and that he or she will faithfully
1005	discharge his or her fiduciary responsibility to the
1006	association's members. In lieu of this written certification,
1007	the newly elected or appointed director may submit a certificate
1008	of satisfactory completion of the educational curriculum
1009	administered by a division-approved condominium education
1010	provider. A director who fails to timely file the written
1011	certification or educational certificate is suspended from
1012	service on the board until he or she complies with this sub-
1013	subparagraph. The board may temporarily fill the vacancy during
1014	the period of suspension. The secretary shall cause the
1015	association to retain a director's written certification or
1016	educational certificate for inspection by the members for 5
1017	years after a director's election. Failure to have such written
1018	certification or educational certificate on file does not affect
1019	the validity of any action.
1020	4. Any approval by unit owners called for by this chapter
1021	or the applicable declaration or bylaws, including, but not
1022	limited to, the approval requirement in s. 718.111(8), shall be
1023	made at a duly noticed meeting of unit owners and is shall be
1024	subject to all requirements of this chapter or the applicable
1025	condominium documents relating to unit owner decisionmaking,
1026	except that unit owners may take action by written agreement,
1027	without meetings, on matters for which action by written
1028	agreement without meetings is expressly allowed by the
1029	applicable bylaws or declaration or any statute that provides
1030	for such action.
1031	5. Unit owners may waive notice of specific meetings if
1032	allowed by the applicable bylaws or declaration or any statute.
1033	If authorized by the bylaws, notice of meetings of the board of
1034	administration, unit owner meetings, except unit owner meetings
1035	called to recall board members under paragraph (j), and
1036	committee meetings may be given by electronic transmission to
1037	unit owners who consent to receive notice by electronic
1038	transmission.
1039	6. Unit owners shall have the right to participate in
1040	meetings of unit owners with reference to all designated agenda
1041	items. However, the association may adopt reasonable rules
1042	governing the frequency, duration, and manner of unit owner
1043	participation.
1044	7. Any unit owner may tape record or videotape a meeting
1045	of the unit owners subject to reasonable rules adopted by the
1046	division.
1047	8. Unless otherwise provided in the bylaws, any vacancy
1048	occurring on the board before the expiration of a term may be
1049	filled by the affirmative vote of the majority of the remaining
1050	directors, even if the remaining directors constitute less than
1051	a quorum, or by the sole remaining director. In the alternative,
1052	a board may hold an election to fill the vacancy, in which case
1053	the election procedures must conform to the requirements of sub-
1054	subparagraph subparagraph 3.a. unless the association governs 10
1055	units or fewer less and has opted out of the statutory election
1056	process, in which case the bylaws of the association control.
1057	Unless otherwise provided in the bylaws, a board member
1058	appointed or elected under this section shall fill the vacancy
1059	for the unexpired term of the seat being filled. Filling
1060	vacancies created by recall is governed by paragraph (j) and
1061	rules adopted by the division.
1062
1063	Notwithstanding sub-subparagraph 3.a. and subparagraph
1064	subparagraphs (b)2. and (d)3., an association of 10 or fewer
1065	units may, by the affirmative vote of a majority of the total
1066	voting interests, provide for different voting and election
1067	procedures in its bylaws, which vote may be by a proxy
1068	specifically delineating the different voting and election
1069	procedures. The different voting and election procedures may
1070	provide for elections to be conducted by limited or general
1071	proxy.
1072	(l) Certificate of compliance.-There shall be A provision
1073	that a certificate of compliance from a licensed electrical
1074	contractor or electrician may be accepted by the association's
1075	board as evidence of compliance of the condominium units with
1076	the applicable fire and life safety code must be included.
1077	Notwithstanding the provisions of chapter 633 or of any other
1078	code, statute, ordinance, administrative rule, or regulation, or
1079	any interpretation of the foregoing, an association,
1080	condominium, or unit owner is not obligated to retrofit the
1081	common elements, association property, or units of a residential
1082	condominium with a fire sprinkler system or any other form of
1083	engineered lifesafety system in a building that has been
1084	certified for occupancy by the applicable governmental entity,
1085	if the unit owners have voted to forego such retrofitting and
1086	engineered lifesafety system by the affirmative vote of two-
1087	thirds of all voting interests in the affected condominium.
1088	However, a condominium association may not vote to forego the
1089	retrofitting with a fire sprinkler system of common areas in a
1090	high-rise building. For purposes of this subsection, the term
1091	"high-rise building" means a building that is greater than 75
1092	feet in height where the building height is measured from the
1093	lowest level of fire department access to the floor of the
1094	highest occupiable story. For purposes of this subsection, the
1095	term "common areas" means any enclosed hallway, corridor, lobby,
1096	stairwell, or entryway. In no event shall The local authority
1097	having jurisdiction may not require completion of retrofitting
1098	of common areas with a sprinkler system or any other form of
1099	engineered lifesafety system before the end of 2019 2014. By
1100	December 31, 2016, an association that is not in compliance with
1101	the requirements for a fire sprinkler system or other form of
1102	engineered lifesafety system and that has not voted to forego
1103	retrofitting of such system must initiate an application for a
1104	building permit for the required installation with the local
1105	government having jurisdiction thereof demonstrating that the
1106	association will become compliant by December 31, 2019.
1107	1. A vote to forego retrofitting may be obtained by
1108	limited proxy or by a ballot personally cast at a duly called
1109	membership meeting, or by execution of a written consent by the
1110	member, and is shall be effective upon the recording of a
1111	certificate attesting to such vote in the public records of the
1112	county where the condominium is located. The association shall
1113	mail or, hand deliver, or electronically transmit to each unit
1114	owner written notice at least 14 days before the prior to such
1115	membership meeting in which the vote to forego retrofitting of
1116	the required fire sprinkler system or any other form of
1117	engineered lifesafety system is to take place. Within 30 days
1118	after the association's opt-out vote, notice of the results of
1119	the opt-out vote must shall be mailed or, hand delivered, or
1120	electronically transmitted to all unit owners. Evidence of
1121	compliance with this 30-day notice requirement must shall be
1122	made by an affidavit executed by the person providing the notice
1123	and filed among the official records of the association. After
1124	such notice is provided to each owner, a copy must of such
1125	notice shall be provided by the current owner to a new owner
1126	before prior to closing and shall be provided by a unit owner to
1127	a renter before prior to signing a lease.
1128	2. If there has been a previous vote to forego
1129	retrofitting, a vote to require retrofitting may be obtained at
1130	a special meeting of the unit owners called by a petition of at
1131	least 10 percent of the voting interests. Such a vote may only
1132	be called once every 3 years. Notice shall be provided as
1133	required for any regularly called meeting of the unit owners and
1134	must state the purpose of the meeting. Electronic transmission
1135	may not be used to provide notice of a meeting called in whole
1136	or in part for this purpose.
1137	3.2. As part of the information collected annually from
1138	condominiums, the division shall require condominium
1139	associations to report the membership vote and recording of a
1140	certificate under this subsection and, if retrofitting has been
1141	undertaken, the per-unit cost of such work. The division shall
1142	annually report to the Division of State Fire Marshal of the
1143	Department of Financial Services the number of condominiums that
1144	have elected to forego retrofitting.
1145	4. Notwithstanding s. 553.509, an association may not be
1146	obligated to comply with, and may forego the retrofitting of,
1147	any improvements required by s. 553.509(2) upon an affirmative
1148	vote of a majority of the voting interests in the affected
1149	condominium.
1150	(n) Director or officer delinquencies.-A director or
1151	officer more than 90 days delinquent in the payment of any
1152	monetary obligation due the association regular assessments
1153	shall be deemed to have abandoned the office, creating a vacancy
1154	in the office to be filled according to law.
1155	(o) Director or officer offenses.-A director or officer
1156	charged by information or indictment with a felony theft or
1157	embezzlement offense involving the association's funds or
1158	property must shall be removed from office, creating a vacancy
1159	in the office to be filled according to law until the end of the
1160	period of the suspension or the end of the director's term of
1161	office, whichever occurs first. While such director or officer
1162	has such criminal charge pending, he or she may not be appointed
1163	or elected to a position as a director or officer. However, if
1164	should the charges are be resolved without a finding of guilt,
1165	the director or officer shall be reinstated for the remainder of
1166	his or her term of office, if any.
1167	(3) OPTIONAL PROVISIONS.-The bylaws as originally recorded
1168	or as amended under the procedures provided therein may provide
1169	for the following:
1170	(e) Provisions which authorize a community umbrella
1171	organization for a community containing a minimum of 1,000
1172	units, or a committee thereof, to employ an entity to market the
1173	amenities of the community and financed as a common expense of
1174	all of the unit owners, provided that no unit owner has a
1175	controlling interest in any marketing firm employed by the
1176	association. Any such funds are also prohibited from being
1177	utilized for any purposes except marketing expenses for the
1178	benefit of all unit owners.
1179	Section 11. Paragraph (d) of subsection (1) of section
1180	718.115, Florida Statutes, is amended to read:
1181	718.115 Common expenses and common surplus.-
1182	(1)
1183	(d) If so provided in the declaration, the cost of
1184	communications services as defined in chapter 202, information
1185	services, or Internet services a master antenna television
1186	system or duly franchised cable television service obtained
1187	pursuant to a bulk contract is shall be deemed a common expense.
1188	If the declaration does not provide for the cost of such
1189	services a master antenna television system or duly franchised
1190	cable television service obtained under a bulk contract as a
1191	common expense, the board may enter into such a contract, and
1192	the cost of the service will be a common expense. The cost for
1193	the services under a bulk-rate contract may be but allocated on
1194	a per-unit basis rather than a percentage basis if the
1195	declaration provides for other than an equal sharing of common
1196	expenses, and any contract entered into before July 1, 1998, in
1197	which the cost of the service is not equally divided among all
1198	unit owners, may be changed by vote of a majority of the voting
1199	interests present at a regular or special meeting of the
1200	association, to allocate the cost equally among all units. The
1201	contract must be for at least shall be for a term of not less
1202	than 2 years.
1203	1. Any contract made by the board on or after July 1,
1204	1998, the effective date hereof for a community antenna system
1205	or duly franchised cable television service may be
1206	majority of the voting interests present at the next regular or
1207	special meeting of the association. Any member may make a motion
1208	to cancel the said contract, but if no motion is made or if such
1209	motion fails to obtain the required majority at the next regular
1210	or special meeting, whichever occurs first is sooner, following
1211	the making of the contract, then such contract shall be deemed
1212	ratified for the term therein expressed.
1213	2. Any Such contract must shall provide, and is shall be
1214	deemed to provide if not expressly set forth, that any hearing-
1215	impaired or legally blind unit owner who does not occupy the
1216	unit with a non-hearing-impaired or sighted person, or any unit
1217	owner receiving supplemental security income under Title XVI of
1218	the Social Security Act or food stamps as administered by the
1219	Department of Children and Family Services pursuant to s.
1220	414.31, may discontinue the cable or video service without
1221	incurring disconnect fees, penalties, or subsequent service
1222	charges, and, as to such units, the owners are shall not be
1223	required to pay any common expenses charge related to such
1224	service. If fewer less than all members of an association share
1225	the expenses of cable or video service television, the expense
1226	shall be shared equally by all participating unit owners. The
1227	association may use the provisions of s. 718.116 to enforce
1228	payment of the shares of such costs by the unit owners receiving
1229	cable or video service television.
1230	Section 12. Paragraph (b) of subsection (1), subsection
1231	(3), and paragraph (b) of subsection (5) of section 718.116,
1232	Florida Statutes, are amended, and subsection (11) is added to
1233	that section, to read:
1234	718.116 Assessments; liability; lien and priority;
1235	interest; collection.-
1236	(1)
1237	(b) The liability of a first mortgagee or its successor or
1238	assignees who acquire title to a unit by foreclosure or by deed
1239	in lieu of foreclosure for the unpaid assessments that became
1240	due prior to the mortgagee's acquisition of title is limited to
1241	the lesser of:
1242	1. The unit's unpaid common expenses and regular periodic
1243	assessments which accrued or came due during the 12 6 months
1244	immediately preceding the acquisition of title and for which
1245	payment in full has not been received by the association; or
1246	2. One percent of the original mortgage debt. The
1247	provisions of this paragraph apply only if the first mortgagee
1248	joined the association as a defendant in the foreclosure action.
1249	Joinder of the association is not required if, on the date the
1250	complaint is filed, the association was dissolved or did not
1251	maintain an office or agent for service of process at a location
1252	which was known to or reasonably discoverable by the mortgagee.
1253	(3) Assessments and installments on assessments them which
1254	are not paid when due bear interest at the rate provided in the
1255	declaration, from the due date until paid. This rate may not
1256	exceed the rate allowed by law, and, if no rate is provided in
1257	the declaration, interest accrues shall accrue at the rate of 18
1258	percent per year. Also, if provided by the declaration or bylaws
1259	so provide, the association may, in addition to such interest,
1260	charge an administrative late fee of up to in addition to such
1261	interest, in an amount not to exceed the greater of $25
1262	percent of each installment of the assessment for each
1263	delinquent installment for which that the payment is late. Any
1264	payment received by an association must shall be applied first
1265	to any interest accrued by the association, then to any
1266	administrative late fee, then to any costs and reasonable
1267	attorney's fees incurred in collection, and then to the
1268	delinquent assessment. The foregoing is shall be applicable
1269	notwithstanding any restrictive endorsement, designation, or
1270	instruction placed on or accompanying a payment. A late fee is
1271	shall not be subject to the provisions in chapter 687 or s.
1272	718.303(3).
1273	(5)
1274	(b) To be valid, a claim of lien must state the
1275	description of the condominium parcel, the name of the record
1276	owner, the name and address of the association, the amount due,
1277	and the due dates. It must be executed and acknowledged by an
1278	officer or authorized agent of the association. The No such lien
1279	is not shall be effective longer than 1 year after the claim of
1280	lien was recorded unless, within that time, an action to enforce
1281	the lien is commenced. The 1-year period is shall automatically
1282	be extended for any length of time during which the association
1283	is prevented from filing a foreclosure action by an automatic
1284	stay resulting from a bankruptcy petition filed by the parcel
1285	owner or any other person claiming an interest in the parcel.
1286	The claim of lien secures shall secure all unpaid assessments
1287	that which are due and that which may accrue after subsequent to
1288	the recording of the claim of lien is recorded and through prior
1289	to the entry of a final judgment certificate of title, as well
1290	as interest and all reasonable costs and attorney's fees
1291	incurred by the association incident to the collection process.
1292	Upon payment in full, the person making the payment is entitled
1293	to a satisfaction of the lien.
1294
1295	After notice of contest of lien has been recorded, the clerk of
1296	the circuit court shall mail a copy of the recorded notice to
1297	the association by certified mail, return receipt requested, at
1298	the address shown in the claim of lien or most recent amendment
1299	to it and shall certify to the service on the face of the
1300	notice. Service is complete upon mailing. After service, the
1301	association has 90 days in which to file an action to enforce
1302	the lien; and, if the action is not filed within the 90-day
1303	period, the lien is void. However, the 90-day period shall be
1304	extended for any length of time that the association is
1305	prevented from filing its action because of an automatic stay
1306	resulting from the filing of a bankruptcy petition by the unit
1307	owner or by any other person claiming an interest in the parcel.
1308	(11) If the unit is occupied by a tenant and the unit
1309	owner is delinquent in paying any monetary obligation due to the
1310	association, the association may make a written demand that the
1311	tenant pay the future monetary obligations related to the
1312	condominium unit to the association, and the tenant must make
1313	such payment. The demand is continuing in nature and, upon
1314	demand, the tenant must pay the monetary obligations to the
1315	association until the association releases the tenant or the
1316	tenant discontinues tenancy in the unit. The association must
1317	mail written notice to the unit owner of the association's
1318	demand that the tenant make payments to the association. The
1319	association shall, upon request, provide the tenant with written
1320	receipts for payments made. A tenant who acts in good faith in
1321	response to a written demand from an association is immune from
1322	any claim from the unit owner.
1323	(a) If the tenant prepaid rent to the unit owner before
1324	receiving the demand from the association and provides written
1325	evidence of paying the rent to the association within 14 days
1326	after receiving the demand, the tenant shall receive credit for
1327	the prepaid rent for the applicable period and must make any
1328	subsequent rental payments to the association to be credited
1329	against the monetary obligations of the unit owner to the
1330	association.
1331	(b) The tenant is not liable for increases in the amount
1332	of the monetary obligations due unless the tenant was notified
1333	in writing of the increase at least 10 days before the date the
1334	rent is due. The liability of the tenant may not exceed the
1335	amount due from the tenant to the tenant's landlord. The
1336	tenant's landlord shall provide the tenant a credit against
1337	rents due to the unit owner in the amount of moneys paid to the
1338	association under this subsection.
1339	(c) The association may issue notices under s. 83.56 and
1340	may sue for eviction under ss. 83.59-83.625 as if the
1341	association were a landlord under part II of chapter 83 if the
1342	tenant fails to pay a required payment to the association.
1343	However, the association is not otherwise considered a landlord
1344	under chapter 83 and specifically has no duties under s. 83.51.
1345	(d) The tenant does not, by virtue of payment of monetary
1346	obligations to the association, have any of the rights of a unit
1347	owner to vote in any election or to examine the books and
1348	records of the association.
1349	(e) A court may supersede the effect of this subsection by
1350	appointing a receiver.
1351	Section 13. Subsections (2) and (19) of section 718.117,
1352	Florida Statutes, are amended to read:
1353	718.117 Termination of condominium.-
1354	(2) TERMINATION BECAUSE OF ECONOMIC WASTE OR
1355	IMPOSSIBILITY.-
1356	(a) Notwithstanding any provision to the contrary in the
1357	declaration, the condominium form of ownership of a property may
1358	be terminated by a plan of termination approved by the lesser of
1359	the lowest percentage of voting interests necessary to amend the
1360	declaration or as otherwise provided in the declaration for
1361	approval of termination if when:
1362	1. The total estimated cost of construction or repairs
1363	necessary to construct the intended improvements or restore the
1364	improvements to their former condition or bring them into
1365	compliance with applicable laws or regulations exceeds the
1366	combined fair market value of the all units in the condominium
1367	after completion of the construction or repairs; or
1368	2. It becomes impossible to operate or reconstruct a
1369	condominium to in its prior physical configuration because of
1370	land use laws or regulations.
1371	(b) Notwithstanding paragraph (a), a condominium in which
1372	75 percent or more of the units are timeshare units may be
1373	terminated only pursuant to a plan of termination approved by 80
1374	percent of the total voting interests of the association and the
1375	holders of 80 percent of the original principal amount of
1376	outstanding recorded mortgage liens of timeshare estates in the
1377	condominium, unless the declaration provides for a lower voting
1378	percentage.
1379	(19) CREATION OF ANOTHER CONDOMINIUM.-The termination of a
1380	condominium does not bar the filing of a declaration of
1381	condominium or an amended and restated declaration of
1382	condominium creation by the termination trustee of another
1383	condominium affecting any portion of the same property.
1384	Section 14. Subsection (11) is added to section 718.202,
1385	Florida Statutes, to read:
1386	718.202 Sales or reservation deposits prior to closing.-
1387	(11) All funds deposited into escrow under subsections (1)
1388	and (2) shall be held in one or more escrow accounts by the
1389	escrow agent. If only one escrow account is utilized, the escrow
1390	agent shall be required to maintain separate accounting records
1391	for each purchaser and for amounts which are separately covered
1392	under subsections (1) and (2) and, if applicable, released to
1393	the developer under subsection (3). Separate accounting by the
1394	escrow agent of the escrow funds constitutes compliance with the
1395	requirements of this section even if the funds are held by the
1396	escrow agent in a single escrow account. It is the intent of
1397	this paragraph to clarify existing law.
1398	Section 15. Subsection (1) of section 718.301, Florida
1399	Statutes, is amended to read:
1400	718.301 Transfer of association control; claims of defect
1401	by association.-
1402	(1) If When unit owners other than the developer own 15
1403	percent or more of the units in a condominium that will be
1404	operated ultimately by an association, the unit owners other
1405	than the developer are shall be entitled to elect at least no
1406	less than one-third of the members of the board of
1407	administration of the association. Unit owners other than the
1408	developer are entitled to elect at least not less than a
1409	majority of the members of the board of administration of an
1410	association:
1411	(a) Three years after 50 percent of the units that will be
1412	operated ultimately by the association have been conveyed to
1413	purchasers;
1414	(b) Three months after 90 percent of the units that will
1415	be operated ultimately by the association have been conveyed to
1416	purchasers;
1417	(c) When all the units that will be operated ultimately by
1418	the association have been completed, some of them have been
1419	conveyed to purchasers, and none of the others are being offered
1420	for sale by the developer in the ordinary course of business;
1421	(d) When some of the units have been conveyed to
1422	purchasers and none of the others are being constructed or
1423	offered for sale by the developer in the ordinary course of
1424	business;
1425	(e) When the developer files a petition seeking protection
1426	in bankruptcy;
1427	(f) When a receiver for the developer is appointed by a
1428	circuit court and is not discharged within 30 days after such
1429	appointment, unless the court determines within 30 days after
1430	appointment of the receiver that transfer of control would be
1431	detrimental to the association or its members; or
1432	(g) Seven years after recordation of the declaration of
1433	condominium; or, in the case of an association that which may
1434	ultimately operate more than one condominium, 7 years after
1435	recordation of the declaration for the first condominium it
1436	operates; or, in the case of an association operating a phase
1437	condominium created pursuant to s. 718.403, 7 years after
1438	recordation of the declaration creating the initial phase,
1439
1440	whichever occurs first. The developer is entitled to elect at
1441	least one member of the board of administration of an
1442	association as long as the developer holds for sale in the
1443	ordinary course of business at least 5 percent, in condominiums
1444	with fewer than 500 units, and 2 percent, in condominiums with
1445	more than 500 units, of the units in a condominium operated by
1446	the association. After Following the time the developer
1447	relinquishes control of the association, the developer may
1448	exercise the right to vote any developer-owned units in the same
1449	manner as any other unit owner except for purposes of
1450	reacquiring control of the association or selecting the majority
1451	members of the board of administration.
1452	Section 16. Section 718.303, Florida Statutes, is amended
1453	to read:
1454	718.303 Obligations of owners and occupants; remedies
1455	waiver; levy of fine against unit by association.-
1456	(1) Each unit owner, each tenant and other invitee, and
1457	each association is shall be governed by, and must shall comply
1458	with the provisions of, this chapter, the declaration, the
1459	documents creating the association, and the association bylaws
1460	which and the provisions thereof shall be deemed expressly
1461	incorporated into any lease of a unit. Actions for damages or
1462	for injunctive relief, or both, for failure to comply with these
1463	provisions may be brought by the association or by a unit owner
1464	against:
1465	(a) The association.
1466	(b) A unit owner.
1467	(c) Directors designated by the developer, for actions
1468	taken by them before prior to the time control of the
1469	association is assumed by unit owners other than the developer.
1470	(d) Any director who willfully and knowingly fails to
1471	comply with these provisions.
1472	(e) Any tenant leasing a unit, and any other invitee
1473	occupying a unit.
1474
1475	The prevailing party in any such action or in any action in
1476	which the purchaser claims a right of voidability based upon
1477	contractual provisions as required in s. 718.503(1)(a) is
1478	entitled to recover reasonable attorney's fees. A unit owner
1479	prevailing in an action between the association and the unit
1480	owner under this section, in addition to recovering his or her
1481	reasonable attorney's fees, may recover additional amounts as
1482	determined by the court to be necessary to reimburse the unit
1483	owner for his or her share of assessments levied by the
1484	association to fund its expenses of the litigation. This relief
1485	does not exclude other remedies provided by law. Actions arising
1486	under this subsection may shall not be deemed to be actions for
1487	specific performance.
1488	(2) A provision of this chapter may not be waived if the
1489	waiver would adversely affect the rights of a unit owner or the
1490	purpose of the provision, except that unit owners or members of
1491	a board of administration may waive notice of specific meetings
1492	in writing if provided by the bylaws. Any instruction given in
1493	writing by a unit owner or purchaser to an escrow agent may be
1494	relied upon by an escrow agent, whether or not such instruction
1495	and the payment of funds thereunder might constitute a waiver of
1496	any provision of this chapter.
1497	(3) If a unit owner is delinquent for more than 90 days in
1498	paying a monetary obligation due to the association the
1499	declaration or bylaws so provide, the association may suspend
1500	the right of a unit owner or a unit's occupant, licensee, or
1501	invitee to use common elements, common facilities, or any other
1502	association property until the monetary obligation is paid. This
1503	subsection does not apply to limited common elements intended to
1504	be used only by that unit, common elements that must be used to
1505	access the unit, utility services provided to the unit, parking
1506	spaces, or elevators. The association may also levy reasonable
1507	fines against a unit for the failure of the owner of the unit,
1508	or its occupant, licensee, or invitee, to comply with any
1509	provision of the declaration, the association bylaws, or
1510	reasonable rules of the association. A No fine does not will
1511	become a lien against a unit. A No fine may not exceed $100 per
1512	violation. However, a fine may be levied on the basis of each
1513	day of a continuing violation, with a single notice and
1514	opportunity for hearing. However, the provided that no such fine
1515	may not shall in the aggregate exceed $1,000. A No fine may not
1516	be levied and a suspension may not be imposed unless the
1517	association first provides at least 14 days' written except
1518	after giving reasonable notice and an opportunity for a hearing
1519	to the unit owner and, if applicable, its occupant, licensee, or
1520	invitee. The hearing must be held before a committee of other
1521	unit owners who are neither board members nor persons residing
1522	in a board member's household. If the committee does not agree
1523	with the fine or suspension, the fine or suspension may not be
1524	levied or imposed. The provisions of this subsection do not
1525	apply to unoccupied units.
1526	(4) The notice and hearing requirements of subsection (3)
1527	do not apply to the imposition of suspensions or fines against a
1528	unit owner or a unit's occupant, licensee, or invitee because of
1529	failing to pay any amounts due the association. If such a fine
1530	or suspension is imposed, the association must levy the fine or
1531	impose a reasonable suspension at a properly noticed board
1532	meeting, and after the imposition of such fine or suspension,
1533	the association must notify the unit owner and, if applicable,
1534	the unit's occupant, licensee, or invitee by mail or hand
1535	delivery.
1536	(5) An association may also suspend the voting rights of a
1537	member due to nonpayment of any monetary obligation due to the
1538	association which is more than 90 days delinquent. The
1539	suspension ends upon full payment of all obligations currently
1540	due or overdue the association.
1541	Section 17. Subsection (1) of section 718.501, Florida
1542	Statutes, is amended to read:
1543	718.501 Authority, responsibility, and duties of Division
1544	of Florida Condominiums, Timeshares, and Mobile Homes.-
1545	(1) The division may of Florida Condominiums, Timeshares,
1546	and Mobile Homes of the Department of Business and Professional
1547	Regulation, referred to as the "division" in this part, has the
1548	power to enforce and ensure compliance with the provisions of
1549	this chapter and rules relating to the development,
1550	construction, sale, lease, ownership, operation, and management
1551	of residential condominium units. In performing its duties, the
1552	division has complete jurisdiction to investigate complaints and
1553	enforce compliance with the provisions of this chapter with
1554	respect to associations that are still under developer control
1555	or the control of a bulk assignee or bulk buyer pursuant to part
1556	VII of this chapter and complaints against developers, bulk
1557	assignees, or bulk buyers involving improper turnover or failure
1558	to turnover, pursuant to s. 718.301. However, after turnover has
1559	occurred, the division has shall only have jurisdiction to
1560	investigate complaints related only to financial issues,
1561	elections, and unit owner access to association records pursuant
1562	to s. 718.111(12).
1563	(a)1. The division may make necessary public or private
1564	investigations within or outside this state to determine whether
1565	any person has violated this chapter or any rule or order
1566	hereunder, to aid in the enforcement of this chapter, or to aid
1567	in the adoption of rules or forms hereunder.
1568	2. The division may submit any official written report,
1569	worksheet, or other related paper, or a duly certified copy
1570	thereof, compiled, prepared, drafted, or otherwise made by and
1571	duly authenticated by a financial examiner or analyst to be
1572	admitted as competent evidence in any hearing in which the
1573	financial examiner or analyst is available for cross-examination
1574	and attests under oath that such documents were prepared as a
1575	result of an examination or inspection conducted pursuant to
1576	this chapter.
1577	(b) The division may require or permit any person to file
1578	a statement in writing, under oath or otherwise, as the division
1579	determines, as to the facts and circumstances concerning a
1580	matter to be investigated.
1581	(c) For the purpose of any investigation under this
1582	chapter, the division director or any officer or employee
1583	designated by the division director may administer oaths or
1584	affirmations, subpoena witnesses and compel their attendance,
1585	take evidence, and require the production of any matter which is
1586	relevant to the investigation, including the existence,
1587	description, nature, custody, condition, and location of any
1588	books, documents, or other tangible things and the identity and
1589	location of persons having knowledge of relevant facts or any
1590	other matter reasonably calculated to lead to the discovery of
1591	material evidence. Upon the failure by a person to obey a
1592	subpoena or to answer questions propounded by the investigating
1593	officer and upon reasonable notice to all persons affected
1594	persons thereby, the division may apply to the circuit court for
1595	an order compelling compliance.
1596	(d) Notwithstanding any remedies available to unit owners
1597	and associations, if the division has reasonable cause to
1598	believe that a violation of any provision of this chapter or
1599	related rule has occurred, the division may institute
1600	enforcement proceedings in its own name against any developer,
1601	bulk assignee, bulk buyer, association, officer, or member of
1602	the board of administration, or its assignees or agents, as
1603	follows:
1604	1. The division may permit a person whose conduct or
1605	actions may be under investigation to waive formal proceedings
1606	and enter into a consent proceeding whereby orders, rules, or
1607	letters of censure or warning, whether formal or informal, may
1608	be entered against the person.
1609	2. The division may issue an order requiring the
1610	developer, bulk assignee, bulk buyer, association, developer-
1611	designated officer, or developer-designated member of the board
1612	of administration, developer-designated assignees or agents,
1613	bulk assignee-designated assignees or agents, bulk buyer-
1614	designated assignees or agents, community association manager,
1615	or community association management firm to cease and desist
1616	from the unlawful practice and take such affirmative action as
1617	in the judgment of the division will carry out the purposes of
1618	this chapter. If the division finds that a developer, bulk
1619	assignee, bulk buyer, association, officer, or member of the
1620	board of administration, or its assignees or agents, is
1621	violating or is about to violate any provision of this chapter,
1622	any rule adopted or order issued by the division, or any written
1623	agreement entered into with the division, and presents an
1624	immediate danger to the public requiring an immediate final
1625	order, it may issue an emergency cease and desist order reciting
1626	with particularity the facts underlying such findings. The
1627	emergency cease and desist order is effective for 90 days. If
1628	the division begins nonemergency cease and desist proceedings,
1629	the emergency cease and desist order remains effective until the
1630	conclusion of the proceedings under ss. 120.569 and 120.57.
1631	3. If a developer, bulk assignee, or bulk buyer, fails to
1632	pay any restitution determined by the division to be owed, plus
1633	any accrued interest at the highest rate permitted by law,
1634	within 30 days after expiration of any appellate time period of
1635	a final order requiring payment of restitution or the conclusion
1636	of any appeal thereof, whichever is later, the division must
1637	shall bring an action in circuit or county court on behalf of
1638	any association, class of unit owners, lessees, or purchasers
1639	for restitution, declaratory relief, injunctive relief, or any
1640	other available remedy. The division may also temporarily revoke
1641	its acceptance of the filing for the developer to which the
1642	restitution relates until payment of restitution is made.
1643	4. The division may petition the court for the appointment
1644	of a receiver or conservator. If appointed, the receiver or
1645	conservator may take action to implement the court order to
1646	ensure the performance of the order and to remedy any breach
1647	thereof. In addition to all other means provided by law for the
1648	enforcement of an injunction or temporary restraining order, the
1649	circuit court may impound or sequester the property of a party
1650	defendant, including books, papers, documents, and related
1651	records, and allow the examination and use of the property by
1652	the division and a court-appointed receiver or conservator.
1653	5. The division may apply to the circuit court for an
1654	order of restitution whereby the defendant in an action brought
1655	pursuant to subparagraph 4. is shall be ordered to make
1656	restitution of those sums shown by the division to have been
1657	obtained by the defendant in violation of this chapter. Such
1658	restitution shall, At the option of the court, such restitution
1659	is be payable to the conservator or receiver appointed pursuant
1660	to subparagraph 4. or directly to the persons whose funds or
1661	assets were obtained in violation of this chapter.
1662	6. The division may impose a civil penalty against a
1663	developer, bulk assignee, or bulk buyer, or association, or its
1664	assignee or agent, for any violation of this chapter or related
1665	a rule adopted under this chapter. The division may impose a
1666	civil penalty individually against an any officer or board
1667	member who willfully and knowingly violates a provision of this
1668	chapter, adopted rule, or a final order of the division; may
1669	order the removal of such individual as an officer or from the
1670	board of administration or as an officer of the association; and
1671	may prohibit such individual from serving as an officer or on
1672	the board of a community association for a period of time. The
1673	term "willfully and knowingly" means that the division informed
1674	the officer or board member that his or her action or intended
1675	action violates this chapter, a rule adopted under this chapter,
1676	or a final order of the division and that the officer or board
1677	member refused to comply with the requirements of this chapter,
1678	a rule adopted under this chapter, or a final order of the
1679	division. The division, before prior to initiating formal agency
1680	action under chapter 120, must shall afford the officer or board
1681	member an opportunity to voluntarily comply and with this
1682	chapter, a rule adopted under this chapter, or a final order of
1683	the division. an officer or board member who complies within 10
1684	days is not subject to a civil penalty. A penalty may be imposed
1685	on the basis of each day of continuing violation, but in no
1686	event shall the penalty for any offense may not exceed $5,000.
1687	By January 1, 1998, the division shall adopt, by rule, penalty
1688	guidelines applicable to possible violations or to categories of
1689	violations of this chapter or rules adopted by the division. The
1690	guidelines must specify a meaningful range of civil penalties
1691	for each such violation of the statute and rules and must be
1692	based upon the harm caused by the violation, the repetition of
1693	the violation, and upon such other factors deemed relevant by
1694	the division. For example, the division may consider whether the
1695	violations were committed by a developer, bulk assignee, or bulk
1696	buyer, or owner-controlled association, the size of the
1697	association, and other factors. The guidelines must designate
1698	the possible mitigating or aggravating circumstances that
1699	justify a departure from the range of penalties provided by the
1700	rules. It is the legislative intent that minor violations be
1701	distinguished from those which endanger the health, safety, or
1702	welfare of the condominium residents or other persons and that
1703	such guidelines provide reasonable and meaningful notice to the
1704	public of likely penalties that may be imposed for proscribed
1705	conduct. This subsection does not limit the ability of the
1706	division to informally dispose of administrative actions or
1707	complaints by stipulation, agreed settlement, or consent order.
1708	All amounts collected shall be deposited with the Chief
1709	Financial Officer to the credit of the Division of Florida
1710	Condominiums, Timeshares, and Mobile Homes Trust Fund. If a
1711	developer, bulk assignee, or bulk buyer fails to pay the civil
1712	penalty and the amount deemed to be owed to the association, the
1713	division shall issue an order directing that such developer,
1714	bulk assignee, or bulk buyer cease and desist from further
1715	operation until such time as the civil penalty is paid or may
1716	pursue enforcement of the penalty in a court of competent
1717	jurisdiction. If an association fails to pay the civil penalty,
1718	the division shall pursue enforcement in a court of competent
1719	jurisdiction, and the order imposing the civil penalty or the
1720	cease and desist order is will not become effective until 20
1721	days after the date of such order. Any action commenced by the
1722	division shall be brought in the county in which the division
1723	has its executive offices or in the county where the violation
1724	occurred.
1725	7. If a unit owner presents the division with proof that
1726	the unit owner has requested access to official records in
1727	writing by certified mail, and that after 10 days the unit owner
1728	again made the same request for access to official records in
1729	writing by certified mail, and that more than 10 days has
1730	elapsed since the second request and the association has still
1731	failed or refused to provide access to official records as
1732	required by this chapter, the division shall issue a subpoena
1733	requiring production of the requested records where the records
1734	are kept pursuant to s. 718.112.
1735	8. In addition to subparagraph 6., the division may seek
1736	the imposition of a civil penalty through the circuit court for
1737	any violation for which the division may issue a notice to show
1738	cause under paragraph (r). The civil penalty shall be at least
1739	$500 but no more than $5,000 for each violation. The court may
1740	also award to the prevailing party court costs and reasonable
1741	attorney's fees and, if the division prevails, may also award
1742	reasonable costs of investigation.
1743	(e) The division may prepare and disseminate a prospectus
1744	and other information to assist prospective owners, purchasers,
1745	lessees, and developers of residential condominiums in assessing
1746	the rights, privileges, and duties pertaining thereto.
1747	(f) The division may has authority to adopt rules pursuant
1748	to ss. 120.536(1) and 120.54 to administer implement and enforce
1749	the provisions of this chapter.
1750	(g) The division shall establish procedures for providing
1751	notice to an association and the developer, bulk assignee, or
1752	bulk buyer during the period in which where the developer, bulk
1753	assignee, or bulk buyer controls the association if when the
1754	division is considering the issuance of a declaratory statement
1755	with respect to the declaration of condominium or any related
1756	document governing in such condominium community.
1757	(h) The division shall furnish each association that which
1758	pays the fees required by paragraph (2)(a) a copy of this
1759	chapter, as amended act, subsequent changes to this act on an
1760	annual basis, an amended version of this act as it becomes
1761	available from the Secretary of State's office on a biennial
1762	basis, and the rules adopted thereto on an annual basis.
1763	(i) The division shall annually provide each association
1764	with a summary of declaratory statements and formal legal
1765	opinions relating to the operations of condominiums which were
1766	rendered by the division during the previous year.
1767	(j) The division shall provide training and educational
1768	programs for condominium association board members and unit
1769	owners. The training may, in the division's discretion, include
1770	web-based electronic media, and live training and seminars in
1771	various locations throughout the state. The division may shall
1772	have the authority to review and approve education and training
1773	programs for board members and unit owners offered by providers
1774	and shall maintain a current list of approved programs and
1775	providers and shall make such list available to board members
1776	and unit owners in a reasonable and cost-effective manner.
1777	(k) The division shall maintain a toll-free telephone
1778	number accessible to condominium unit owners.
1779	(l) The division shall develop a program to certify both
1780	volunteer and paid mediators to provide mediation of condominium
1781	disputes. The division shall provide, upon request, a list of
1782	such mediators to any association, unit owner, or other
1783	participant in arbitration proceedings under s. 718.1255
1784	requesting a copy of the list. The division shall include on the
1785	list of volunteer mediators only the names of persons who have
1786	received at least 20 hours of training in mediation techniques
1787	or who have mediated at least 20 disputes. In order to become
1788	initially certified by the division, paid mediators must be
1789	certified by the Supreme Court to mediate court cases in county
1790	or circuit courts. However, the division may adopt, by rule,
1791	additional factors for the certification of paid mediators,
1792	which factors must be related to experience, education, or
1793	background. Any person initially certified as a paid mediator by
1794	the division must, in order to continue to be certified, comply
1795	with the factors or requirements adopted by rule imposed by
1796	rules adopted by the division.
1797	(m) If When a complaint is made, the division must shall
1798	conduct its inquiry with due regard for to the interests of the
1799	affected parties. Within 30 days after receipt of a complaint,
1800	the division shall acknowledge the complaint in writing and
1801	notify the complainant whether the complaint is within the
1802	jurisdiction of the division and whether additional information
1803	is needed by the division from the complainant. The division
1804	shall conduct its investigation and shall, within 90 days after
1805	receipt of the original complaint or of timely requested
1806	additional information, take action upon the complaint. However,
1807	the failure to complete the investigation within 90 days does
1808	not prevent the division from continuing the investigation,
1809	accepting or considering evidence obtained or received after 90
1810	days, or taking administrative action if reasonable cause exists
1811	to believe that a violation of this chapter or a rule of the
1812	division has occurred. If an investigation is not completed
1813	within the time limits established in this paragraph, the
1814	division shall, on a monthly basis, notify the complainant in
1815	writing of the status of the investigation. When reporting its
1816	action to the complainant, the division shall inform the
1817	complainant of any right to a hearing pursuant to ss. 120.569
1818	and 120.57.
1819	(n) Condominium association directors, officers, and
1820	employees; condominium developers; bulk assignees, bulk buyers,
1821	and community association managers; and community association
1822	management firms have an ongoing duty to reasonably cooperate
1823	with the division in any investigation pursuant to this section.
1824	The division shall refer to local law enforcement authorities
1825	any person whom the division believes has altered, destroyed,
1826	concealed, or removed any record, document, or thing required to
1827	be kept or maintained by this chapter with the purpose to impair
1828	its verity or availability in the department's investigation.
1829	(o) The division may:
1830	1. Contract with agencies in this state or other
1831	jurisdictions to perform investigative functions; or
1832	2. Accept grants-in-aid from any source.
1833	(p) The division shall cooperate with similar agencies in
1834	other jurisdictions to establish uniform filing procedures and
1835	forms, public offering statements, advertising standards, and
1836	rules and common administrative practices.
1837	(q) The division shall consider notice to a developer,
1838	bulk assignee, or bulk buyer to be complete when it is delivered
1839	to the developer's address of the developer, bulk assignee, or
1840	bulk buyer currently on file with the division.
1841	(r) In addition to its enforcement authority, the division
1842	may issue a notice to show cause, which must shall provide for a
1843	hearing, upon written request, in accordance with chapter 120.
1844	(s) The division shall submit to the Governor, the
1845	President of the Senate, the Speaker of the House of
1846	Representatives, and the chairs of the legislative
1847	appropriations committees an annual report that includes, but
1848	need not be limited to, the number of training programs provided
1849	for condominium association board members and unit owners, the
1850	number of complaints received by type, the number and percent of
1851	complaints acknowledged in writing within 30 days and the number
1852	and percent of investigations acted upon within 90 days in
1853	accordance with paragraph (m), and the number of investigations
1854	exceeding the 90-day requirement. The annual report must shall
1855	also include an evaluation of the division's core business
1856	processes and make recommendations for improvements, including
1857	statutory changes. The report shall be submitted by September 30
1858	following the end of the fiscal year.
1859	Section 18. Part VII of chapter 718, Florida Statutes,
1860	consisting of sections 718.701, 718.702, 718.703, 718.704,
1861	718.705, 718.706, 718.707, and 718.708, is created to read:
1862	718.701 Short title.-This part may be cited as the
1863	"Distressed Condominium Relief Act."
1864	718.702 Legislative intent.-
1865	(1) The Legislature acknowledges the massive downturn in
1866	the condominium market which has occurred throughout the state
1867	and the impact of such downturn on developers, lenders, unit
1868	owners, and condominium associations. Numerous condominium
1869	projects have failed or are in the process of failing such that
1870	the condominium has a small percentage of third-party unit
1871	owners as compared to the unsold inventory of units. As a result
1872	of the inability to find purchasers for this inventory of units,
1873	which results in part from the devaluing of real estate in this
1874	state, developers are unable to satisfy the requirements of
1875	their lenders, leading to defaults on mortgages. Consequently,
1876	lenders are faced with the task of finding a solution to the
1877	problem in order to receive payment for their investments.
1878	(2) The Legislature recognizes that all of the factors
1879	listed in this section lead to condominiums becoming distressed,
1880	resulting in detriment to the unit owners and the condominium
1881	association due to the resulting shortage of assessment moneys
1882	available for proper maintenance of the condominium. Such
1883	shortage and the resulting lack of proper maintenance further
1884	erodes property values. The Legislature finds that individuals
1885	and entities within this state and in other states have
1886	expressed interest in purchasing unsold inventory in one or more
1887	condominium projects, but are reticent to do so because of
1888	accompanying liabilities inherited from the original developer,
1889	which are by definition imputed to the successor purchaser,
1890	including a foreclosing mortgagee. This results in the potential
1891	successor purchaser having unknown and unquantifiable risks that
1892	the potential purchaser is unwilling to accept. As a result,
1893	condominium projects stagnate, leaving all parties involved at
1894	an impasse and without the ability to find a solution.
1895	(3) The Legislature declares that it is the public policy
1896	of this state to protect the interests of developers, lenders,
1897	unit owners, and condominium associations with regard to
1898	distressed condominiums, and that there is a need for relief
1899	from certain provisions of the Florida Condominium Act geared
1900	toward enabling economic opportunities for successor purchasers,
1901	including foreclosing mortgagees. Such relief would benefit
1902	existing unit owners and condominium associations. The
1903	Legislature further finds and declares that this situation
1904	cannot be open-ended without potentially prejudicing the rights
1905	of unit owners and condominium associations, and thereby
1906	declares that the provisions of this part may be used by
1907	purchasers of condominium inventory for only a specific and
1908	defined period.
1909	718.703 Definitions.-As used in this part, the term:
1910	(1) "Bulk assignee" means a person who:
1911	(a) Acquires more than seven condominium parcels as set
1912	forth in s. 718.707; and
1913	(b) Receives an assignment of some or all of the rights of
1914	the developer as set forth in the declaration of condominium or
1915	this chapter by a written instrument recorded as an exhibit to
1916	the deed or as a separate instrument in the public records of
1917	the county in which the condominium is located.
1918	(2) "Bulk buyer" means a person who acquires more than
1919	seven condominium parcels as set forth in s. 718.707 but who
1920	does not receive an assignment of developer rights other than
1921	the right to conduct sales, leasing, and marketing activities
1922	within the condominium; the right to be exempt from the payment
1923	of working capital contributions to the condominium association
1924	arising out of, or in connection with, the bulk buyer's
1925	acquisition of a bulk number of units; and the right to be
1926	exempt from any rights of first refusal which may be held by the
1927	condominium association and would otherwise be applicable to
1928	subsequent transfers of title from the bulk buyer to a third
1929	party purchaser concerning one or more units.
1930	718.704 Assignment and assumption of developer rights by
1931	bulk assignee; bulk buyer.-
1932	(1) A bulk assignee assumes and is liable for all duties
1933	and responsibilities of the developer under the declaration and
1934	this chapter, except:
1935	(a) Warranties of the developer under s. 718.203(1) or s.
1936	718.618, except for design, construction, development, or repair
1937	work performed by or on behalf of such bulk assignee;
1938	(b) The obligation to:
1939	1. Fund converter reserves under s. 718.618 for a unit
1940	that was not acquired by the bulk assignee; or
1941	2. Provide converter warranties on any portion of the
1942	condominium property except as expressly provided by the bulk
1943	assignee in the contract for purchase and sale executed with a
1944	purchaser and pertaining to any design, construction,
1945	development, or repair work performed by or on behalf of the
1946	bulk assignee;
1947	(c) The requirement to provide the association with a
1948	cumulative audit of the association's finances from the date of
1949	formation of the condominium association as required by s.
1950	718.301(4)(c). However, the bulk assignee must provide an audit
1951	for the period during which the bulk assignee elects a majority
1952	of the members of the board of administration;
1953	(d) Any liability arising out of or in connection with
1954	actions taken by the board of administration or the developer-
1955	appointed directors before the bulk assignee elects a majority
1956	of the members of the board of administration; and
1957	(e) Any liability for or arising out of the developer's
1958	failure to fund previous assessments or to resolve budgetary
1959	deficits in relation to a developer's right to guarantee
1960	assessments, except as otherwise provided in subsection (2).
1961
1962	The bulk assignee is also responsible for delivering documents
1963	and materials in accordance with s. 718.705(3). A bulk assignee
1964	may expressly assume some or all of the obligations of the
1965	developer described in paragraphs (a)-(e).
1966	(2) A bulk assignee receiving the assignment of the rights
1967	of the developer to guarantee the level of assessments and fund
1968	budgetary deficits pursuant to s. 718.116 assumes and is liable
1969	for all obligations of the developer with respect to such
1970	guarantee, including any applicable funding of reserves to the
1971	extent required by law, for as long as the guarantee remains in
1972	effect. A bulk assignee not receiving such assignment or a bulk
1973	buyer does not assume and is not liable for the obligations of
1974	the developer with respect to such guarantee, but is responsible
1975	for payment of assessments in the same manner as all other
1976	owners of condominium parcels.
1977	(3) A bulk buyer is liable for the duties and
1978	responsibilities of the developer under the declaration and this
1979	chapter only to the extent provided in this part, together with
1980	any other duties or responsibilities of the developer expressly
1981	assumed in writing by the bulk buyer.
1982	(4) An acquirer of condominium parcels is not a bulk
1983	assignee or a bulk buyer if the transfer to such acquirer was
1984	made before the effective date of this part with the intent to
1985	hinder, delay, or defraud any purchaser, unit owner, or the
1986	association, or if the acquirer is a person who would be
1987	considered an insider under s. 726.102(7).
1988	(5) An assignment of developer rights to a bulk assignee
1989	may be made by the developer, a previous bulk assignee, or a
1990	court acting on behalf of the developer or the previous bulk
1991	assignee. At any particular time, there may be no more than one
1992	bulk assignee within a condominium, but there may be more than
1993	one bulk buyer. If more than one acquirer of condominium parcels
1994	in the same condominium receives an assignment of developer
1995	rights from the same person, the bulk assignee is the acquirer
1996	whose instrument of assignment is recorded first.
1997	718.705 Board of administration; transfer of control.-
1998	(1) For purposes of determining the timing for transfer of
1999	control of the board of administration of the association to
2000	unit owners other than the developer under s. 718.301(1)(a) and
2001	(b), if a bulk assignee is entitled to elect a majority of the
2002	members of the board, a condominium parcel acquired by the bulk
2003	assignee is conveyed to a purchaser, or owned by an owner other
2004	than the developer, until the condominium parcel is conveyed to
2005	an owner who is not a bulk assignee.
2006	(2) Unless control of the board of administration of the
2007	association has already been relinquished pursuant to s.
2008	718.301(1), the bulk assignee must relinquish control of the
2009	association pursuant to s. 718.301 and this part, as if the bulk
2010	assignee were the developer.
2011	(3) If a bulk assignee relinquishes control of the board
2012	of administration as set forth in s. 718.301, the bulk assignee
2013	must deliver all of those items required by s. 718.301(4).
2014	However, the bulk assignee is not required to deliver items and
2015	documents not in the possession of the bulk assignee during the
2016	period during which the bulk assignee was entitled to elect at
2017	least a majority of the members of the board of administration.
2018	In conjunction with acquisition of condominium parcels, a bulk
2019	assignee shall undertake a good faith effort to obtain the
2020	documents and materials that must be provided to the association
2021	pursuant to s. 718.301(4). If the bulk assignee is not able to
2022	obtain all of such documents and materials, the bulk assignee
2023	must certify in writing to the association the names or
2024	descriptions of the documents and materials that were not
2025	obtainable by the bulk assignee. Delivery of the certificate
2026	relieves the bulk assignee of responsibility for delivering the
2027	documents and materials referenced in the certificate as
2028	otherwise required under ss. 718.112 and 718.301 and this part.
2029	The responsibility of the bulk assignee for the audit required
2030	by s. 718.301(4) commences as of the date on which the bulk
2031	assignee elected a majority of the members of the board of
2032	administration.
2033	(4) If a conflict arises between the provisions or
2034	application of this section and s. 718.301, this section
2035	prevails.
2036	(5) Failure of a bulk assignee or bulk buyer to
2037	substantially comply with all the requirements in this part
2038	results in the loss of any and all protections or exemptions
2039	provided under this part.
2040	718.706 Specific provisions pertaining to offering of
2041	units by a bulk assignee or bulk buyer.-
2042	(1) Before offering any units for sale or for lease for a
2043	term exceeding 5 years, a bulk assignee or a bulk buyer must
2044	file the following documents with the division and provide such
2045	documents to a prospective purchaser or tenant:
2046	(a) An updated prospectus or offering circular, or a
2047	supplement to the prospectus or offering circular, filed by the
2048	original developer prepared in accordance with s. 718.504, which
2049	must include the form of contract for sale and for lease in
2050	compliance with s. 718.503(2);
2051	(b) An updated Frequently Asked Questions and Answers
2052	sheet;
2053	(c) The executed escrow agreement if required under s.
2054	718.202; and
2055	(d) The financial information required by s. 718.111(13).
2056	However, if a financial information report does not exist for
2057	the fiscal year before acquisition of title by the bulk assignee
2058	or bulk buyer, or accounting records cannot be obtained in good
2059	faith by the bulk assignee or the bulk buyer which would permit
2060	preparation of the required financial information report, the
2061	bulk assignee or bulk buyer is excused from the requirement of
2062	this paragraph. However, the bulk assignee or bulk buyer must
2063	include in the purchase contract the following statement in
2064	conspicuous type:
2065
2066	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
2067	718.111(13), FLORIDA STATUTES, FOR THE IMMEDIATELY
2068	PRECEDING FISCAL YEAR OF THE ASSOCIATION IS NOT
2069	AVAILABLE OR CANNOT BE CREATED BY THE SELLER DUE TO
2070	THE INSUFFICIENT ACCOUNTING RECORDS OF THE
2071	ASSOCIATION.
2072
2073	(2) Before offering any units for sale or for lease for a
2074	term exceeding 5 years, a bulk assignee must file with the
2075	division and provide to a prospective purchaser a disclosure
2076	statement that includes, but is not limited to:
2077	(a) A description of any rights of the developer which
2078	have been assigned to the bulk assignee or bulk buyer.
2079	(b) The following statement in conspicuous type:
2080
2081	THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
2082	DEVELOPER UNDER S. 718.203(1) OR S. 718.618, FLORIDA
2083	STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
2084	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
2085	OR ON BEHALF OF SELLER.
2086
2087	(c) If the condominium is a conversion subject to part VI,
2088	the following statement in conspicuous type:
2089
2090	THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
2091	RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
2092	718.618, FLORIDA STATUTES, ON ANY PORTION OF THE
2093	CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
2094	REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
2095	AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
2096	DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
2097	DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
2098	OF THE SELLER.
2099
2100	(3) A bulk assignee, while it is in control of the board
2101	of administration of the association, may not authorize, on
2102	behalf of the association:
2103	(a) The waiver of reserves or the reduction of funding of
2104	the reserves pursuant to s. 718.112(2)(f)2., unless approved by
2105	a majority of the voting interests not controlled by the
2106	developer, bulk assignee, and bulk buyer; or
2107	(b) The use of reserve expenditures for other purposes
2108	pursuant to s. 718.112(2)(f)3., unless approved by a majority of
2109	the voting interests not controlled by the developer, bulk
2110	assignee, and bulk buyer.
2111	(4) A bulk assignee or a bulk buyer must comply with all
2112	the requirements of s. 718.302 regarding any contracts entered
2113	into by the association during the period the bulk assignee or
2114	bulk buyer maintains control of the board of administration.
2115	Unit owners shall be afforded all the protections contained in
2116	s. 718.302 regarding agreements entered into by the association
2117	before unit owners other than the developer, bulk assignee, or
2118	bulk buyer elected a majority of the board of administration.
2119	(5) A bulk buyer must comply with the requirements
2120	contained in the declaration regarding any transfer of a unit,
2121	including sales, leases, and subleases. A bulk buyer is not
2122	entitled to any exemptions afforded a developer or successor
2123	developer under this chapter regarding the transfer of a unit,
2124	including sales, leases, or subleases.
2125	718.707 Time limitation for classification as bulk
2126	assignee or bulk buyer.-A person acquiring condominium parcels
2127	may not be classified as a bulk assignee or bulk buyer unless
2128	the condominium parcels were acquired before July 1, 2012. The
2129	date of such acquisition shall be determined by the date of
2130	recording of a deed or other instrument of conveyance for such
2131	parcels in the public records of the county in which the
2132	condominium is located, or by the date of issuance of a
2133	certificate of title in a foreclosure proceeding with respect to
2134	such condominium parcels.
2135	718.708 Liability of developers and others.-An assignment
2136	of developer rights to a bulk assignee or bulk buyer does not
2137	release the original developer from liabilities under the
2138	declaration or this chapter. This part does not limit the
2139	liability of the original developer for claims brought by unit
2140	owners, bulk assignees, or bulk buyers for violations of this
2141	chapter by the creating developer, unless specifically excluded
2142	in this part. This part does not waive, release, compromise, or
2143	limit liability established under chapter 718 except as
2144	specifically excluded under this part.
2145	Section 19. Paragraph (d) of subsection (1) of section
2146	719.106, Florida Statutes, is amended to read:
2147	719.106 Bylaws; cooperative ownership.-
2148	(1) MANDATORY PROVISIONS.-The bylaws or other cooperative
2149	documents shall provide for the following, and if they do not,
2150	they shall be deemed to include the following:
2151	(d) Shareholder meetings.-There shall be an annual meeting
2152	of the shareholders. All members of the board of administration
2153	shall be elected at the annual meeting unless the bylaws provide
2154	for staggered election terms or for their election at another
2155	meeting. Any unit owner desiring to be a candidate for board
2156	membership must shall comply with subparagraph 1. The bylaws
2157	must shall provide the method for calling meetings, including
2158	annual meetings. Written notice, which must notice shall
2159	incorporate an identification of agenda items, shall be given to
2160	each unit owner at least 14 days before prior to the annual
2161	meeting and shall be posted in a conspicuous place on the
2162	cooperative property at least 14 continuous days preceding the
2163	annual meeting. Upon notice to the unit owners, the board must
2164	shall by duly adopted rule designate a specific location on the
2165	cooperative property upon which all notice of unit owner
2166	meetings are shall be posted. In lieu of or in addition to the
2167	physical posting of the meeting notice of any meeting of the
2168	shareholders on the cooperative property, the association may,
2169	by reasonable rule, adopt a procedure for conspicuously posting
2170	and repeatedly broadcasting the notice and the agenda on a
2171	closed-circuit cable television system serving the cooperative
2172	association. However, if broadcast notice is used in lieu of a
2173	posted notice posted physically on the cooperative property, the
2174	notice and agenda must be broadcast at least four times every
2175	broadcast hour of each day that a posted notice is otherwise
2176	required under this section. If When broadcast notice is
2177	provided, the notice and agenda must be broadcast in a manner
2178	and for a sufficient continuous length of time so as to allow an
2179	average reader to observe the notice and read and comprehend the
2180	entire content of the notice and the agenda. Unless a unit owner
2181	waives in writing the right to receive notice of the annual
2182	meeting, the notice of the annual meeting must shall be sent by
2183	mail, hand delivered, or electronically transmitted to each unit
2184	owner. An officer of the association must shall provide an
2185	affidavit or United States Postal Service certificate of
2186	mailing, to be included in the official records of the
2187	association, affirming that notices of the association meeting
2188	were mailed, hand delivered, or electronically transmitted, in
2189	accordance with this provision, to each unit owner at the
2190	address last furnished to the association.
2191	1. After January 1, 1992, The board of administration
2192	shall be elected by written ballot or voting machine. A proxy
2193	may not Proxies shall in no event be used in electing the board
2194	of administration, either in general elections or elections to
2195	fill vacancies caused by recall, resignation, or otherwise
2196	unless otherwise provided in this chapter. At least Not less
2197	than 60 days before a scheduled election, the association shall
2198	mail, deliver, or transmit, whether by separate association
2199	mailing, delivery, or electronic transmission or included in
2200	another association mailing, delivery, or electronic
2201	transmission, including regularly published newsletters, to each
2202	unit owner entitled to vote, a first notice of the date of the
2203	election. Any unit owner or other eligible person desiring to be
2204	a candidate for the board of administration must shall give
2205	written notice to the association at least not less than 40 days
2206	before a scheduled election. Together with the written notice
2207	and agenda as set forth in this section, the association shall
2208	mail, deliver, or electronically transmit a second notice of
2209	election to all unit owners entitled to vote therein, together
2210	with a ballot which lists shall list all candidates. Upon
2211	request of a candidate, the association shall include an
2212	information sheet, no larger than 8 1/2 inches by 11 inches,
2213	which must be furnished by the candidate at least not less than
2214	35 days before prior to the election, to be included with the
2215	mailing, delivery, or electronic transmission of the ballot,
2216	with the costs of mailing, delivery, or transmission and copying
2217	to be borne by the association. The association is not liable
2218	has no liability for the contents of the information sheets
2219	provided by the candidates. In order to reduce costs, the
2220	association may print or duplicate the information sheets on
2221	both sides of the paper. The division shall by rule establish
2222	voting procedures consistent with this subparagraph the
2223	provisions contained herein, including rules establishing
2224	procedures for giving notice by electronic transmission and
2225	rules providing for the secrecy of ballots. Elections shall be
2226	decided by a plurality of those ballots cast. There is shall be
2227	no quorum requirement. However, at least 20 percent of the
2228	eligible voters must cast a ballot in order to have a valid
2229	election of members of the board of administration. A No unit
2230	owner may not shall permit any other person to vote his or her
2231	ballot, and any such ballots improperly cast are shall be deemed
2232	invalid. A unit owner who needs assistance in casting the ballot
2233	for the reasons stated in s. 101.051 may obtain assistance in
2234	casting the ballot. Any unit owner violating this provision may
2235	be fined by the association in accordance with s. 719.303. The
2236	regular election must shall occur on the date of the annual
2237	meeting. The provisions of This subparagraph does shall not
2238	apply to timeshare cooperatives. Notwithstanding the provisions
2239	of this subparagraph, an election and balloting are not required
2240	unless more candidates file a notice of intent to run or are
2241	nominated than vacancies exist on the board.
2242	2. Any approval by unit owners called for by this chapter,
2243	or the applicable cooperative documents, must shall be made at a
2244	duly noticed meeting of unit owners and is shall be subject to
2245	all requirements of this chapter or the applicable cooperative
2246	documents relating to unit owner decisionmaking, except that
2247	unit owners may take action by written agreement, without
2248	meetings, on matters for which action by written agreement
2249	without meetings is expressly allowed by the applicable
2250	cooperative documents or law any Florida statute which provides
2251	for the unit owner action.
2252	3. Unit owners may waive notice of specific meetings if
2253	allowed by the applicable cooperative documents or law any
2254	Florida statute. If authorized by the bylaws, notice of meetings
2255	of the board of administration, shareholder meetings, except
2256	shareholder meetings called to recall board members under
2257	paragraph (f), and committee meetings may be given by electronic
2258	transmission to unit owners who consent to receive notice by
2259	electronic transmission.
2260	4. Unit owners shall have the right to participate in
2261	meetings of unit owners with reference to all designated agenda
2262	items. However, the association may adopt reasonable rules
2263	governing the frequency, duration, and manner of unit owner
2264	participation.
2265	5. Any unit owner may tape record or videotape meetings of
2266	the unit owners subject to reasonable rules adopted by the
2267	division.
2268	6. Unless otherwise provided in the bylaws, a vacancy
2269	occurring on the board before the expiration of a term may be
2270	filled by the affirmative vote of the majority of the remaining
2271	directors, even if the remaining directors constitute less than
2272	a quorum, or by the sole remaining director. In the alternative,
2273	a board may hold an election to fill the vacancy, in which case
2274	the election procedures must conform to the requirements of
2275	subparagraph 1. unless the association has opted out of the
2276	statutory election process, in which case the bylaws of the
2277	association control. Unless otherwise provided in the bylaws, a
2278	board member appointed or elected under this subparagraph shall
2279	fill the vacancy for the unexpired term of the seat being
2280	filled. Filling vacancies created by recall is governed by
2281	paragraph (f) and rules adopted by the division.
2282
2283	Notwithstanding subparagraphs (b)2. and (d)1., an association
2284	may, by the affirmative vote of a majority of the total voting
2285	interests, provide for a different voting and election procedure
2286	in its bylaws, which vote may be by a proxy specifically
2287	delineating the different voting and election procedures. The
2288	different voting and election procedures may provide for
2289	elections to be conducted by limited or general proxy.
2290	Section 20. Subsection (5) of section 719.1055, Florida
2291	Statutes, is amended to read:
2292	719.1055 Amendment of cooperative documents; alteration
2293	and acquisition of property.-
2294	(5) The bylaws must include a provision whereby a
2295	certificate of compliance from a licensed electrical contractor
2296	or electrician may be accepted by the association's board as
2297	evidence of compliance of the cooperative units with the
2298	applicable fire and life safety code. Notwithstanding the
2299	provisions of chapter 633 or of any other code, statute,
2300	ordinance, administrative rule, or regulation, or any
2301	interpretation of the foregoing, a cooperative or unit owner is
2302	not obligated to retrofit the common elements, common areas,
2303	association property, or units of a residential cooperative with
2304	a fire sprinkler system or any other form of engineered
2305	lifesafety life safety system in a building that has been
2306	certified for occupancy by the applicable governmental entity,
2307	if the unit owners have voted to forego such retrofitting and
2308	engineered lifesafety life safety system by the affirmative vote
2309	of two-thirds of all voting interests in the affected
2310	cooperative. However, a cooperative may not forego the
2311	retrofitting with a fire sprinkler system of common areas in a
2312	high-rise building. For purposes of this subsection, the term
2313	"high-rise building" means a building that is greater than 75
2314	feet in height where the building height is measured from the
2315	lowest level of fire department access to the floor of the
2316	highest occupiable story. For purposes of this subsection, the
2317	term "common areas" means any enclosed hallway, corridor, lobby,
2318	stairwell, or entryway. In no event shall The local authority
2319	having jurisdiction may not require completion of retrofitting
2320	of common areas with a sprinkler system or other form of
2321	engineered lifesafety system before the end of 2019 2014.
2322	(a) A vote to forego retrofitting may be obtained by
2323	limited proxy or by a ballot personally cast at a duly called
2324	membership meeting, or by execution of a written consent by the
2325	member, and is shall be effective upon the recording of a
2326	certificate attesting to such vote in the public records of the
2327	county where the cooperative is located. The association shall
2328	mail or, hand deliver, or electronically transmit to each unit
2329	owner written notice at least 14 days before prior to such
2330	membership meeting in which the vote to forego retrofitting of
2331	the required fire sprinkler system or any other form of
2332	engineered lifesafety system is to take place. Within 30 days
2333	after the association's opt-out vote, notice of the results of
2334	the opt-out vote shall be mailed or, hand delivered, or
2335	electronically transmitted to all unit owners. Evidence of
2336	compliance with this 30-day notice must shall be made by an
2337	affidavit executed by the person providing the notice and filed
2338	among the official records of the association. After such notice
2339	is provided to each owner, a copy of the such notice shall be
2340	provided by the current owner to a new owner before prior to
2341	closing and shall be provided by a unit owner to a renter before
2342	prior to signing a lease.
2343	(b) If there has been a previous vote to forego
2344	retrofitting, a vote to require retrofitting may be obtained at
2345	a special meeting of the unit owners called by a petition of
2346	least 10 percent of the voting interests. Such vote may only be
2347	called once every 3 years. Notice must be provided as required
2348	for any regularly called meeting of the unit owners, and the
2349	notice must state the purpose of the meeting. Electronic
2350	transmission may not be used to provide notice of a meeting
2351	called in whole or in part for this purpose.
2352	(c)(b) As part of the information collected annually from
2353	cooperatives, the division shall require associations to report
2354	the membership vote and recording of a certificate under this
2355	subsection and, if retrofitting has been undertaken, the per-
2356	unit cost of such work. The division shall annually report to
2357	the Division of State Fire Marshal of the Department of
2358	Financial Services the number of cooperatives that have elected
2359	to forego retrofitting.
2360	Section 21. Subsections (3) and (4) of section 719.108,
2361	Florida Statutes, are amended, and subsection (10) is added to
2362	that section, to read:
2363	719.108 Rents and assessments; liability; lien and
2364	priority; interest; collection; cooperative ownership.-
2365	(3) Rents and assessments, and installments on them, not
2366	paid when due bear interest at the rate provided in the
2367	cooperative documents from the date due until paid. This rate
2368	may not exceed the rate allowed by law, and, if a no rate is not
2369	provided in the cooperative documents, then interest accrues
2370	shall accrue at 18 percent per annum. Also, If the cooperative
2371	documents or bylaws so provide, the association may charge an
2372	administrative late fee in addition to such interest, in an
2373	amount not to exceed the greater of $25 or 5 percent of each
2374	installment of the assessment for each delinquent installment
2375	that the payment is late. Any payment received by an association
2376	must shall be applied first to any interest accrued by the
2377	association, then to any administrative late fee, then to any
2378	costs and reasonable attorney's fees incurred in collection, and
2379	then to the delinquent assessment. The foregoing applies shall
2380	be applicable notwithstanding any restrictive endorsement,
2381	designation, or instruction placed on or accompanying a payment.
2382	A late fee is not subject to chapter 687 or s. 719.303(3).
2383	(4) The association has shall have a lien on each
2384	cooperative parcel for any unpaid rents and assessments, plus
2385	interest, any authorized administrative late fees, and any
2386	reasonable costs for collection services for which the
2387	association has contracted against the unit owner of the
2388	cooperative parcel. If authorized by the cooperative documents,
2389	the said lien shall also secures secure reasonable attorney's
2390	fees incurred by the association incident to the collection of
2391	the rents and assessments or enforcement of such lien. The lien
2392	is effective from and after the recording of a claim of lien in
2393	the public records in the county in which the cooperative parcel
2394	is located which states the description of the cooperative
2395	parcel, the name of the unit owner, the amount due, and the due
2396	dates. The lien expires shall expire if a claim of lien is not
2397	filed within 1 year after the date the assessment was due, and
2398	the no such lien does not shall continue for a longer period
2399	than 1 year after the claim of lien has been recorded unless,
2400	within that time, an action to enforce the lien is commenced in
2401	a court of competent jurisdiction. Except as otherwise provided
2402	in this chapter, a lien may not be filed by the association
2403	against a cooperative parcel until 30 days after the date on
2404	which a notice of intent to file a lien has been delivered to
2405	the owner.
2406	(a) The notice must be sent to the unit owner at the
2407	address of the unit by first-class United States mail and:
2408	1. If the most recent address of the unit owner on the
2409	records of the association is the address of the unit, the
2410	notice must be sent by registered or certified mail, return
2411	receipt requested, to the unit owner at the address of the unit.
2412	2. If the most recent address of the unit owner on the
2413	records of the association is in the United States, but is not
2414	the address of the unit, the notice must be sent by registered
2415	or certified mail, return receipt requested, to the unit owner
2416	at his or her most recent address.
2417	3. If the most recent address of the unit owner on the
2418	records of the association is not in the United States, the
2419	notice must be sent by first-class United States mail to the
2420	unit owner at his or her most recent address.
2421	(b) A notice that is sent pursuant to this subsection is
2422	deemed delivered upon mailing. No lien may be filed by the
2423	association against a cooperative parcel until 30 days after the
2424	date on which a notice of intent to file a lien has been served
2425	on the unit owner of the cooperative parcel by certified mail or
2426	by personal service in the manner authorized by chapter 48 and
2427	the Florida Rules of Civil Procedure.
2428	(10) If the unit is occupied by a tenant and the unit
2429	owner is delinquent in paying any monetary obligation due to the
2430	association, the association may make a written demand that the
2431	tenant pay the future monetary obligations related to the
2432	cooperative share to the association and the tenant must make
2433	such payment. The demand is continuing in nature, and upon
2434	demand, the tenant must pay the monetary obligations to the
2435	association until the association releases the tenant or the
2436	tenant discontinues tenancy in the unit. The association must
2437	mail written notice to the unit owner of the association's
2438	demand that the tenant make payments to the association. The
2439	association shall, upon request, provide the tenant with written
2440	receipts for payments made. A tenant who acts in good faith in
2441	response to a written demand from an association is immune from
2442	any claim from the unit owner.
2443	(a) If the tenant prepaid rent to the unit owner before
2444	receiving the demand from the association and provides written
2445	evidence of paying the rent to the association within 14 days
2446	after receiving the demand, the tenant shall receive credit for
2447	the prepaid rent for the applicable period and must make any
2448	subsequent rental payments to the association to be credited
2449	against the monetary obligations of the unit owner to the
2450	association.
2451	(b) The tenant is not liable for increases in the amount
2452	of the regular monetary obligations due unless the tenant was
2453	notified in writing of the increase at least 10 days before the
2454	date on which the rent is due. The liability of the tenant may
2455	not exceed the amount due from the tenant to the tenant's
2456	landlord. The tenant's landlord shall provide the tenant a
2457	credit against rents due to the unit owner in the amount of
2458	moneys paid to the association under this subsection.
2459	(c) The association may issue notices under s. 83.56 and
2460	may sue for eviction under ss. 83.59-83.625 as if the
2461	association were a landlord under part II of chapter 83 if the
2462	tenant fails to pay a required payment. However, the association
2463	is not otherwise considered a landlord under chapter 83 and
2464	specifically has no duties under s. 83.51.
2465	(d) The tenant does not, by virtue of payment of monetary
2466	obligations, have any of the rights of a unit owner to vote in
2467	any election or to examine the books and records of the
2468	association.
2469	(e) A court may supersede the effect of this subsection by
2470	appointing a receiver.
2471	Section 22. Paragraph (b) of subsection (2), paragraphs
2472	(a) and (c) of subsection (5), and paragraphs (b), (c), (d),
2473	(f), and (g) of subsection (6) of section 720.303, Florida
2474	Statutes, are amended, and subsection (12) is added to that
2475	section, to read:
2476	720.303 Association powers and duties; meetings of board;
2477	official records; budgets; financial reporting; association
2478	funds; recalls.-
2479	(2) BOARD MEETINGS.-
2480	(b) Members have the right to attend all meetings of the
2481	board and to speak on any matter placed on the agenda by
2482	petition of the voting interests for at least 3 minutes. The
2483	association may adopt written reasonable rules expanding the
2484	right of members to speak and governing the frequency, duration,
2485	and other manner of member statements, which rules must be
2486	consistent with this paragraph and may include a sign-up sheet
2487	for members wishing to speak. Notwithstanding any other law, the
2488	requirement that board meetings and committee meetings be open
2489	to the members is inapplicable to meetings between the board or
2490	a committee and the association's attorney to discuss proposed
2491	or pending litigation, or with respect to meetings of the board
2492	held for the purpose of discussing personnel matters, are not
2493	required to be open to the members other than directors.
2494	(5) INSPECTION AND COPYING OF RECORDS.-The official
2495	records shall be maintained within the state and must be open to
2496	inspection and available for photocopying by members or their
2497	authorized agents at reasonable times and places within 10
2498	business days after receipt of a written request for access.
2499	This subsection may be complied with by having a copy of the
2500	official records available for inspection or copying in the
2501	community. If the association has a photocopy machine available
2502	where the records are maintained, it must provide parcel owners
2503	with copies on request during the inspection if the entire
2504	request is limited to no more than 25 pages.
2505	(a) The failure of an association to provide access to the
2506	records within 10 business days after receipt of a written
2507	request submitted by certified mail, return receipt requested,
2508	creates a rebuttable presumption that the association willfully
2509	failed to comply with this subsection.
2510	(c) The association may adopt reasonable written rules
2511	governing the frequency, time, location, notice, records to be
2512	inspected, and manner of inspections, but may not require impose
2513	a requirement that a parcel owner to demonstrate any proper
2514	purpose for the inspection, state any reason for the inspection,
2515	or limit a parcel owner's right to inspect records to less than
2516	one 8-hour business day per month. The association may impose
2517	fees to cover the costs of providing copies of the official
2518	records, including, without limitation, the costs of copying.
2519	The association may charge up to 50 cents per page for copies
2520	made on the association's photocopier. If the association does
2521	not have a photocopy machine available where the records are
2522	kept, or if the records requested to be copied exceed 25 pages
2523	in length, the association may have copies made by an outside
2524	vendor or association management company personnel and may
2525	charge the actual cost of copying, including any reasonable
2526	costs involving personnel fees and charges at an hourly rate for
2527	vendor or employee time to cover administrative costs to the
2528	vendor or association. The association shall maintain an
2529	adequate number of copies of the recorded governing documents,
2530	to ensure their availability to members and prospective members.
2531	Notwithstanding the provisions of this paragraph, the following
2532	records are shall not be accessible to members or parcel owners:
2533	1. Any record protected by the lawyer-client privilege as
2534	described in s. 90.502 and any record protected by the work-
2535	product privilege, including, but not limited to, any record
2536	prepared by an association attorney or prepared at the
2537	attorney's express direction which reflects a mental impression,
2538	conclusion, litigation strategy, or legal theory of the attorney
2539	or the association and which was prepared exclusively for civil
2540	or criminal litigation or for adversarial administrative
2541	proceedings or which was prepared in anticipation of imminent
2542	civil or criminal litigation or imminent adversarial
2543	administrative proceedings until the conclusion of the
2544	litigation or adversarial administrative proceedings.
2545	2. Information obtained by an association in connection
2546	with the approval of the lease, sale, or other transfer of a
2547	parcel.
2548	3. Disciplinary, health, insurance, and Personnel records
2549	of the association's employees, including, but not limited to,
2550	disciplinary, payroll, health, and insurance records.
2551	4. Medical records of parcel owners or community
2552	residents.
2553	5. Social security numbers, driver's license numbers,
2554	credit card numbers, electronic mailing addresses, telephone
2555	numbers, emergency contact information, any addresses for a
2556	parcel owner other than as provided for association notice
2557	requirements, and other personal identifying information of any
2558	person, excluding the person's name, parcel designation, mailing
2559	address, and property address.
2560	6. Any electronic security measure that is used by the
2561	association to safeguard data, including passwords.
2562	7. The software and operating system used by the
2563	association which allows the manipulation of data, even if the
2564	owner owns a copy of the same software used by the association.
2565	The data is part of the official records of the association.
2566	(6) BUDGETS.-
2567	(b) In addition to annual operating expenses, the budget
2568	may include reserve accounts for capital expenditures and
2569	deferred maintenance for which the association is responsible.
2570	If reserve accounts are not established pursuant to paragraph
2571	(d), funding of such reserves is limited to the extent that the
2572	governing documents do not limit increases in assessments,
2573	including reserves. If the budget of the association includes
2574	reserve accounts established pursuant to paragraph (d), such
2575	reserves shall be determined, maintained, and waived in the
2576	manner provided in this subsection. Once an association provides
2577	for reserve accounts pursuant to paragraph (d) in the budget,
2578	the association shall thereafter determine, maintain, and waive
2579	reserves in compliance with this subsection. This section does
2580	not preclude the termination of a reserve account established
2581	pursuant to this paragraph upon approval of a majority of the
2582	total voting interests of the association. Upon such approval,
2583	the terminating reserve account shall be removed from the
2584	budget.
2585	(c)1. If the budget of the association does not provide
2586	for reserve accounts pursuant to paragraph (d) governed by this
2587	subsection and the association is responsible for the repair and
2588	maintenance of capital improvements that may result in a special
2589	assessment if reserves are not provided, each financial report
2590	for the preceding fiscal year required by subsection (7) must
2591	shall contain the following statement in conspicuous type:
2592
2593	THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
2594	RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
2595	MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
2596	OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
2597	PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
2598	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
2599	LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
2600	THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
2601	BY WRITTEN CONSENT.
2602
2603	2. If the budget of the association does provide for
2604	funding accounts for deferred expenditures, including, but not
2605	limited to, funds for capital expenditures and deferred
2606	maintenance, but such accounts are not created or established
2607	pursuant to paragraph (d), each financial report for the
2608	preceding fiscal year required under subsection (7) must also
2609	contain the following statement in conspicuous type:
2610
2611	THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED
2612	VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
2613	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
2614	TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
2615	DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
2616	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
2617	720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
2618	SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
2619	FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
2620	ACCORDANCE WITH THAT STATUTE.
2621
2622	(d) An association is shall be deemed to have provided for
2623	reserve accounts if when reserve accounts have been initially
2624	established by the developer or if when the membership of the
2625	association affirmatively elects to provide for reserves. If
2626	reserve accounts are not initially provided for by the
2627	developer, the membership of the association may elect to do so
2628	upon the affirmative approval of not less than a majority of the
2629	total voting interests of the association. Such approval may be
2630	obtained attained by vote of the members at a duly called
2631	meeting of the membership or by the upon a written consent of
2632	executed by not less than a majority of the total voting
2633	interests of the association in the community. The approval
2634	action of the membership must shall state that reserve accounts
2635	shall be provided for in the budget and must designate the
2636	components for which the reserve accounts are to be established.
2637	Upon approval by the membership, the board of directors shall
2638	include provide for the required reserve accounts for inclusion
2639	in the budget in the next fiscal year following the approval and
2640	in each year thereafter. Once established as provided in this
2641	subsection, the reserve accounts must shall be funded or
2642	maintained or shall have their funding waived in the manner
2643	provided in paragraph (f).
2644	(f) After one or more Once a reserve account or reserve
2645	accounts are established, the membership of the association,
2646	upon a majority vote at a meeting at which a quorum is present,
2647	may provide for no reserves or less reserves than required by
2648	this section. If a meeting of the unit owners has been called to
2649	determine whether to waive or reduce the funding of reserves and
2650	no such result is not achieved or a quorum is not present, the
2651	reserves as included in the budget shall go into effect. After
2652	the turnover, the developer may vote its voting interest to
2653	waive or reduce the funding of reserves. Any vote taken pursuant
2654	to this subsection to waive or reduce reserves is shall be
2655	applicable only to one budget year.
2656	(g) Funding formulas for reserves authorized by this
2657	section must shall be based on either a separate analysis of
2658	each of the required assets or a pooled analysis of two or more
2659	of the required assets.
2660	1. If the association maintains separate reserve accounts
2661	for each of the required assets, the amount of the contribution
2662	to each reserve account is shall be the sum of the following two
2663	calculations:
2664	a. The total amount necessary, if any, to bring a negative
2665	component balance to zero.
2666	b. The total estimated deferred maintenance expense or
2667	estimated replacement cost of the reserve component less the
2668	estimated balance of the reserve component as of the beginning
2669	of the period for which the budget will be in effect. The
2670	remainder, if greater than zero, shall be divided by the
2671	estimated remaining useful life of the component.
2672
2673	The formula may be adjusted each year for changes in estimates
2674	and deferred maintenance performed during the year and may
2675	include factors such as inflation and earnings on invested
2676	funds.
2677	2. If the association maintains a pooled account of two or
2678	more of the required reserve assets, the amount of the
2679	contribution to the pooled reserve account as disclosed on the
2680	proposed budget may shall not be less than that required to
2681	ensure that the balance on hand at the beginning of the period
2682	for which the budget will go into effect plus the projected
2683	annual cash inflows over the remaining estimated useful life of
2684	all of the assets that make up the reserve pool are equal to or
2685	greater than the projected annual cash outflows over the
2686	remaining estimated useful lives of all of the assets that make
2687	up the reserve pool, based on the current reserve analysis. The
2688	projected annual cash inflows may include estimated earnings
2689	from investment of principal and accounts receivable minus the
2690	allowance for doubtful accounts. The reserve funding formula may
2691	shall not include any type of balloon payments.
2692	(12) COMPENSATION PROHIBITED.-A director, officer, or
2693	committee member of the association may not directly receive any
2694	salary or compensation from the association for the performance
2695	of duties as a director, officer, or committee member and may
2696	not in any other way benefit financially from service to the
2697	association. This subsection does not preclude:
2698	(a) Participation by such person in a financial benefit
2699	accruing to all or a significant number of members as a result
2700	of actions lawfully taken by the board or a committee of which
2701	he or she is a member, including, but not limited to, routine
2702	maintenance, repair, or replacement of community assets.
2703	(b) Reimbursement for out-of-pocket expenses incurred by
2704	such person on behalf of the association, subject to approval in
2705	accordance with procedures established by the association's
2706	governing documents or, in the absence of such procedures, in
2707	accordance with an approval process established by the board.
2708	(c) Any recovery of insurance proceeds derived from a
2709	policy of insurance maintained by the association for the
2710	benefit of its members.
2711	(d) Any fee or compensation authorized in the governing
2712	documents.
2713	(e) Any fee or compensation authorized in advance by a
2714	vote of a majority of the voting interests voting in person or
2715	by proxy at a meeting of the members.
2716	(f) A developer or its representative from serving as a
2717	director, officer, or committee member of the association and
2718	benefiting financially from service to the association.
2719	Section 23. Paragraph (b) of subsection (2) of section
2720	720.304, Florida Statutes, is amended to read:
2721	720.304 Right of owners to peaceably assemble; display of
2722	flag; SLAPP suits prohibited.-
2723	(2)
2724	(b) Any homeowner may erect a freestanding flagpole no
2725	more than 20 feet high on any portion of the homeowner's real
2726	property, regardless of any covenants, restrictions, bylaws,
2727	rules, or requirements of the association, if the flagpole does
2728	not obstruct sightlines at intersections and is not erected
2729	within or upon an easement. The homeowner may further display in
2730	a respectful manner from that flagpole, regardless of any
2731	covenants, restrictions, bylaws, rules, or requirements of the
2732	association, one official United States flag, not larger than 4
2733	1/2 feet by 6 feet, and may additionally display one official
2734	flag of the State of Florida or the United States Army, Navy,
2735	Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
2736	additional flag must be equal in size to or smaller than the
2737	United States flag. The flagpole and display are subject to all
2738	building codes, zoning setbacks, and other applicable
2739	governmental regulations, including, but not limited to, noise
2740	and lighting ordinances in the county or municipality in which
2741	the flagpole is erected and all setback and locational criteria
2742	contained in the governing documents.
2743	Section 24. Subsection (2) of section 720.305, Florida
2744	Statutes, is amended to read:
2745	720.305 Obligations of members; remedies at law or in
2746	equity; levy of fines and suspension of use rights.-
2747	(2) If a member is delinquent for more than 90 days in
2748	paying a monetary obligation due the association the governing
2749	documents so provide, an association may suspend, until such
2750	monetary obligation is paid for a reasonable period of time, the
2751	rights of a member or a member's tenants, guests, or invitees,
2752	or both, to use common areas and facilities and may levy
2753	reasonable fines of up to, not to exceed $100 per violation,
2754	against any member or any tenant, guest, or invitee. A fine may
2755	be levied for on the basis of each day of a continuing
2756	violation, with a single notice and opportunity for hearing,
2757	except that a no such fine may not shall exceed $1,000 in the
2758	aggregate unless otherwise provided in the governing documents.
2759	A fine of less than $1,000 may shall not become a lien against a
2760	parcel. In any action to recover a fine, the prevailing party is
2761	entitled to collect its reasonable attorney's fees and costs
2762	from the nonprevailing party as determined by the court. The
2763	provisions regarding the suspension-of-use rights do not apply
2764	to the portion of common areas that must be used to provide
2765	access to the parcel or utility services provided to the parcel.
2766	(a) A fine or suspension may not be imposed without notice
2767	of at least 14 days' notice days to the person sought to be
2768	fined or suspended and an opportunity for a hearing before a
2769	committee of at least three members appointed by the board who
2770	are not officers, directors, or employees of the association, or
2771	the spouse, parent, child, brother, or sister of an officer,
2772	director, or employee. If the committee, by majority vote, does
2773	not approve a proposed fine or suspension, it may not be
2774	imposed. If the association imposes a fine or suspension, the
2775	association must provide written notice of such fine or
2776	suspension by mail or hand delivery to the parcel owner and, if
2777	applicable, to any tenant, licensee, or invitee of the parcel
2778	owner.
2779	(b) The requirements of this subsection do not apply to
2780	the imposition of suspensions or fines upon any member because
2781	of the failure of the member to pay assessments or other charges
2782	when due if such action is authorized by the governing
2783	documents.
2784	(b)(c) Suspension of common-area-use rights do shall not
2785	impair the right of an owner or tenant of a parcel to have
2786	vehicular and pedestrian ingress to and egress from the parcel,
2787	including, but not limited to, the right to park.
2788	Section 25. Subsections (7), (8), and (9) of section
2789	720.306, Florida Statutes, are amended to read:
2790	720.306 Meetings of members; voting and election
2791	procedures; amendments.-
2792	(7) ADJOURNMENT.-Unless the bylaws require otherwise,
2793	adjournment of an annual or special meeting to a different date,
2794	time, or place must be announced at that meeting before an
2795	adjournment is taken, or notice must be given of the new date,
2796	time, or place pursuant to s. 720.303(2). Any business that
2797	might have been transacted on the original date of the meeting
2798	may be transacted at the adjourned meeting. If a new record date
2799	for the adjourned meeting is or must be fixed under s. 607.0707
2800	s. 617.0707, notice of the adjourned meeting must be given to
2801	persons who are entitled to vote and are members as of the new
2802	record date but were not members as of the previous record date.
2803	(8) PROXY VOTING.-The members have the right, unless
2804	otherwise provided in this subsection or in the governing
2805	documents, to vote in person or by proxy.
2806	(a) To be valid, a proxy must be dated, must state the
2807	date, time, and place of the meeting for which it was given, and
2808	must be signed by the authorized person who executed the proxy.
2809	A proxy is effective only for the specific meeting for which it
2810	was originally given, as the meeting may lawfully be adjourned
2811	and reconvened from time to time, and automatically expires 90
2812	days after the date of the meeting for which it was originally
2813	given. A proxy is revocable at any time at the pleasure of the
2814	person who executes it. If the proxy form expressly so provides,
2815	any proxy holder may appoint, in writing, a substitute to act in
2816	his or her place.
2817	(b) If the governing documents permit voting by secret
2818	ballot by members who are not in attendance at a meeting of the
2819	members for the election of directors, such ballots must be
2820	placed in an inner envelope with no identifying markings and
2821	mailed or delivered to the association in an outer envelope
2822	bearing identifying information reflecting the name of the
2823	member, the lot or parcel for which the vote is being cast, and
2824	the signature of the lot or parcel owner casting that ballot. If
2825	the eligibility of the member to vote is confirmed and no other
2826	ballot has been submitted for that lot or parcel, the inner
2827	envelope shall be removed from the outer envelope bearing the
2828	identification information, placed with the ballots which were
2829	personally cast, and opened when the ballots are counted. If
2830	more than one ballot is submitted for a lot or parcel, the
2831	ballots for that lot or parcel shall be disqualified. Any vote
2832	by ballot received after the closing of the balloting may not be
2833	considered.
2834	(9) ELECTIONS AND BOARD VACANCIES.-Elections of directors
2835	must be conducted in accordance with the procedures set forth in
2836	the governing documents of the association. All members of the
2837	association are shall be eligible to serve on the board of
2838	directors, and a member may nominate himself or herself as a
2839	candidate for the board at a meeting where the election is to be
2840	held or, if the election process allows voting by absentee
2841	ballot, in advance of the balloting. Except as otherwise
2842	provided in the governing documents, boards of directors must be
2843	elected by a plurality of the votes cast by eligible voters. Any
2844	election dispute between a member and an association must be
2845	submitted to mandatory binding arbitration with the division.
2846	Such proceedings must shall be conducted in the manner provided
2847	by s. 718.1255 and the procedural rules adopted by the division.
2848	Unless otherwise provided in the bylaws, any vacancy occurring
2849	on the board before the expiration of a term may be filled by an
2850	affirmative vote of the majority of the remaining directors,
2851	even if the remaining directors constitute less than a quorum,
2852	or by the sole remaining director. In the alternative, a board
2853	may hold an election to fill the vacancy, in which case the
2854	election procedures must conform to the requirements of the
2855	governing documents. Unless otherwise provided in the bylaws, a
2856	board member appointed or elected under this section is
2857	appointed for the unexpired term of the seat being filled.
2858	Filling vacancies created by recall is governed by s.
2859	720.303(10) and rules adopted by the division.
2860	Section 26. Subsection (8) is added to section 720.3085,
2861	Florida Statutes, to read:
2862	720.3085 Payment for assessments; lien claims.-
2863	(8) If the parcel is occupied by a tenant and the parcel
2864	owner is delinquent in paying any monetary obligation due to the
2865	association, the association may demand that the tenant pay to
2866	the association the future monetary obligations related to the
2867	parcel. The demand is continuing in nature, and upon demand, the
2868	tenant must continue to pay the monetary obligations until the
2869	association releases the tenant or the tenant discontinues
2870	tenancy in the parcel. A tenant who acts in good faith in
2871	response to a written demand from an association is immune from
2872	any claim from the parcel owner.
2873	(a) If the tenant prepaid rent to the parcel owner before
2874	receiving the demand from the association and provides written
2875	evidence of paying the rent to the association within 14 days
2876	after receiving the demand, the tenant shall receive credit for
2877	the prepaid rent for the applicable period and must make any
2878	subsequent rental payments to the association to be credited
2879	against the monetary obligations of the parcel owner to the
2880	association. The association shall, upon request, provide the
2881	tenant with written receipts for payments made. The association
2882	shall mail written notice to the parcel owner of the
2883	association's demand that the tenant pay monetary obligations to
2884	the association.
2885	(b) The tenant is not liable for increases in the amount
2886	of the monetary obligations due unless the tenant was notified
2887	in writing of the increase at least 10 days before the date on
2888	which the rent is due. The tenant shall be given a credit
2889	against rents due to the parcel owner in the amount of
2890	assessments paid to the association.
2891	(c) The association may issue notices under s. 83.56 and
2892	may sue for eviction under ss. 83.59-83.625 as if the
2893	association were a landlord under part II of chapter 83 if the
2894	tenant fails to pay a monetary obligation. However, the
2895	association is not otherwise considered a landlord under chapter
2896	83 and specifically has no duties under s. 83.51.
2897	(d) The tenant does not, by virtue of payment of monetary
2898	obligations, have any of the rights of a parcel owner to vote in
2899	any election or to examine the books and records of the
2900	association.
2901	(e) A court may supersede the effect of this subsection by
2902	appointing a receiver.
2903	Section 27. Subsection (6) is added to section 720.31,
2904	Florida Statutes, to read:
2905	720.31 Recreational leaseholds; right to acquire;
2906	escalation clauses.-
2907	(6) An association may enter into agreements to acquire
2908	leaseholds, memberships, and other possessory or use interests
2909	in lands or facilities, including, but not limited to, country
2910	clubs, golf courses, marinas, submerged land, parking areas,
2911	conservation areas, and other recreational facilities. An
2912	association may enter into such agreements regardless of whether
2913	the lands or facilities are contiguous to the lands of the
2914	community or whether such lands or facilities are intended to
2915	provide enjoyment, recreation, or other use or benefit to the
2916	owners. All leaseholds, memberships, and other possessory or use
2917	interests existing or created at the time of recording the
2918	declaration must be stated and fully described in the
2919	declaration. Agreements acquiring leaseholds, memberships, or
2920	other possessory or use interests not entered into within 12
2921	months after recording the declaration may be entered into only
2922	if authorized by the declaration as a material alteration or
2923	substantial addition to the common areas or association
2924	property. If the declaration is silent, any such transaction
2925	requires the approval of 75 percent of the total voting
2926	interests of the association. The declaration may provide that
2927	the rental, membership fees, operations, replacements, or other
2928	expenses are common expenses; impose covenants and restrictions
2929	concerning their use; and contain other provisions not
2930	inconsistent with this subsection. An association exercising its
2931	rights under this subsection may join with other associations
2932	that are part of the same development or with a master
2933	association responsible for the enforcement of shared covenants,
2934	conditions, and restrictions in carrying out the intent of this
2935	subsection. This subsection is intended to clarify law in
2936	existence before July 1, 2010.
2937	Section 28. Section 720.315, Florida Statutes, is created
2938	to read:
2939	720.315 Passage of special assessments.-Before turnover,
2940	the board of directors controlled by the developer may not levy
2941	a special assessment unless a majority of the parcel owners
2942	other than the developer have approved the special assessment by
2943	a majority vote at a duly called special meeting of the
2944	membership at which a quorum is present.
2945	Section 29. This act shall take effect July 1, 2010.

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