Bill Text: FL S0398 | 2017 | Regular Session | Enrolled
Bill Title: Estoppel Certificates
Spectrum: Bipartisan Bill
Status: (Passed) 2017-06-15 - Chapter No. 2017-93 [S0398 Detail]
Download: Florida-2017-S0398-Enrolled.html
ENROLLED 2017 Legislature CS for CS for CS for SB 398 2017398er 1 2 An act relating to estoppel certificates; amending ss. 3 718.116, 719.108, and 720.30851, F.S.; revising 4 requirements relating to the issuance of an estoppel 5 certificate to specified persons; requiring a 6 condominium, cooperative, or homeowners’ association 7 to designate a street or e-mail address on its website 8 for estoppel certificate requests; specifying delivery 9 requirements for an estoppel certificate; authorizing 10 an estoppel certificate to be completed by specified 11 persons; requiring that an estoppel certificate 12 contain certain information; providing an effective 13 period for an estoppel certificate based upon the date 14 of issuance and form of delivery; prohibiting an 15 association from charging a preparation and delivery 16 fee or making certain claims if it fails to deliver an 17 estoppel certificate within certain timeframes; 18 revising fee requirements for preparing and delivering 19 an estoppel certificate under various circumstances; 20 authorizing the statement of moneys due to be 21 delivered in one or more estoppel certificates under 22 certain circumstances; providing limits on a total fee 23 charged for the preparation and delivery of estoppel 24 certificates; requiring that the authority to charge a 25 fee for the preparation and delivery of estoppel 26 certificates be established by a specified written 27 resolution or provided by a certain type of contract; 28 providing that the right to reimbursement may not be 29 waived or modified by a contract or agreement; 30 requiring that the prevailing party in an action to 31 enforce a right to reimbursement be awarded certain 32 damages, fees, and costs; requiring that certain fees 33 be adjusted every certain number of years using a 34 specified price index; requiring the Department of 35 Business and Professional Regulation to periodically 36 calculate the fees and publish the amounts on its 37 website, subject to certain requirements; conforming 38 provisions to changes made by the act; providing an 39 effective date. 40 41 Be It Enacted by the Legislature of the State of Florida: 42 43 Section 1. Subsection (8) of section 718.116, Florida 44 Statutes, is amended to read: 45 718.116 Assessments; liability; lien and priority; 46 interest; collection.— 47 (8) Within 10 business15days after receiving a written or 48 electronic request therefor from a unit owner or the unit 49 owner’shis or herdesignee, or a unit mortgagee or the unit 50 mortgagee’shis or herdesignee, the association shall issue the 51 estoppelprovide acertificate. Each association shall designate 52 on its website a person or entity with a street or e-mail 53 address for receipt of a request for an estoppel certificate 54 issued pursuant to this section. The estoppel certificate must 55 be provided by hand delivery, regular mail, or e-mail to the 56 requestor on the date of issuance of the estoppel certificate 57signed by an officer or agent of the association stating all58assessments and other moneys owed to the association by the unit59owner with respect to the condominium parcel. 60 (a) An estoppel certificate may be completed by any board 61 member, authorized agent, or authorized representative of the 62 association, including any authorized agent, authorized 63 representative, or employee of a management company authorized 64 to complete this form on behalf of the board or association. The 65 estoppel certificate must contain all of the following 66 information and must be substantially in the following form: 67 1. Date of issuance:.... 68 2. Name(s) of the unit owner(s) as reflected in the books 69 and records of the association:.... 70 3. Unit designation and address:.... 71 4. Parking or garage space number, as reflected in the 72 books and records of the association:.... 73 5. Attorney’s name and contact information if the account 74 is delinquent and has been turned over to an attorney for 75 collection. No fee may be charged for this information. 76 6. Fee for the preparation and delivery of the estoppel 77 certificate:.... 78 7. Name of the requestor:.... 79 8. Assessment information and other information: 80 81 ASSESSMENT INFORMATION: 82 a. The regular periodic assessment levied against the unit 83 is $.... per ...(insert frequency of payment).... 84 b. The regular periodic assessment is paid through 85 ...(insert date paid through).... 86 c. The next installment of the regular periodic assessment 87 is due ...(insert due date)... in the amount of $..... 88 d. An itemized list of all assessments, special 89 assessments, and other moneys owed on the date of issuance to 90 the association by the unit owner for a specific unit is 91 provided. 92 e. An itemized list of any additional assessments, special 93 assessments, and other moneys that are scheduled to become due 94 for each day after the date of issuance for the effective period 95 of the estoppel certificate is provided. In calculating the 96 amounts that are scheduled to become due, the association may 97 assume that any delinquent amounts will remain delinquent during 98 the effective period of the estoppel certificate. 99 100 OTHER INFORMATION: 101 f. Is there a capital contribution fee, resale fee, 102 transfer fee, or other fee due? ...(Yes)... ...(No).... If yes, 103 specify the type and the amount of the fee. 104 g. Is there any open violation of rule or regulation 105 noticed to the unit owner in the association official records? 106 ...(Yes)... ...(No).... 107 h. Do the rules and regulations of the association 108 applicable to the unit require approval by the board of 109 directors of the association for the transfer of the unit? 110 ...(Yes)... ...(No).... If yes, has the board approved the 111 transfer of the unit? ...(Yes)... ...(No).... 112 i. Is there a right of first refusal provided to the 113 members or the association? ...(Yes)... ...(No).... If yes, have 114 the members or the association exercised that right of first 115 refusal? ...(Yes)... ...(No).... 116 j. Provide a list of, and contact information for, all 117 other associations of which the unit is a member. 118 k. Provide contact information for all insurance maintained 119 by the association. 120 l. Provide the signature of an officer or authorized agent 121 of the association. 122 123 The association, at its option, may include additional 124 information in the estoppelAny person other than the owner who125relies upon suchcertificateshall be protected thereby. 126 (b) An estoppel certificate that is hand delivered or sent 127 by electronic means has a 30-day effective period. An estoppel 128 certificate that is sent by regular mail has a 35-day effective 129 period. If additional information or a mistake related to the 130 estoppel certificate becomes known to the association within the 131 effective period, an amended estoppel certificate may be 132 delivered and becomes effective if a sale or refinancing of the 133 unit has not been completed during the effective period. A fee 134 may not be charged for an amended estoppel certificate. An 135 amended estoppel certificate must be delivered on the date of 136 issuance, and a new 30-day or 35-day effective period begins on 137 such date. 138 (c) An association waives the right to collect any moneys 139 owed in excess of the amounts specified in the estoppel 140 certificate from any person who in good faith relies upon the 141 estoppel certificate and from the person’s successors and 142 assigns. 143 (d) If an association receives a request for an estoppel 144 certificate from a unit owner or the unit owner’s designee, or a 145 unit mortgagee or the unit mortgagee’s designee, and fails to 146 deliver the estoppel certificate within 10 business days, a fee 147 may not be charged for the preparation and delivery of that 148 estoppel certificate. 149 (e)(b)A summary proceeding pursuant to s. 51.011 may be 150 brought to compel compliance with this subsection, and in any 151 such action the prevailing party is entitled to recover 152 reasonable attorneyattorney’sfees. 153 (f)(c)Notwithstanding any limitation on transfer fees 154 contained in s. 718.112(2)(i), antheassociation or its 155 authorized agent may charge a reasonable fee for the preparation 156 and delivery of an estoppel certificate, which may not exceed 157 $250, if, on the date the certificate is issued, no delinquent 158 amounts are owed to the association for the applicable unit. If 159 an estoppel certificate is requested on an expedited basis and 160 delivered within 3 business days after the request, the 161 association may charge an additional fee of $100. If a 162 delinquent amount is owed to the association for the applicable 163 unit, an additional fee for the estoppel certificate may not 164 exceed $150for the preparationof the certificate.The amount165of the fee must be included onthe certificate. 166 (g) If estoppel certificates for multiple units owned by 167 the same owner are simultaneously requested from the same 168 association and there are no past due monetary obligations owed 169 to the association, the statement of moneys due for those units 170 may be delivered in one or more estoppel certificates, and, even 171 though the fee for each unit shall be computed as set forth in 172 paragraph (f), the total fee that the association may charge for 173 the preparation and delivery of the estoppel certificates may 174 not exceed, in the aggregate: 175 1. For 25 or fewer units, $750. 176 2. For 26 to 50 units, $1,000. 177 3. For 51 to 100 units, $1,500. 178 4. For more than 100 units, $2,500. 179 (h)(d)The authority to charge a fee for the preparation 180 and delivery of the estoppel certificate mustshallbe 181 established by a written resolution adopted by the board or 182 provided by a written management, bookkeeping, or maintenance 183 contract and is payable upon the preparation of the certificate. 184 If the certificate is requested in conjunction with the sale or 185 mortgage of a unit but the closing does not occur and no later 186 than 30 days after the closing date for which the certificate 187 was sought the preparer receives a written request, accompanied 188 by reasonable documentation, that the sale did not occur from a 189 payor that is not the unit owner, the fee shall be refunded to 190 that payor within 30 days after receipt of the request. The 191 refund is the obligation of the unit owner, and the association 192 may collect it from that owner in the same manner as an 193 assessment as provided in this section. The right to 194 reimbursement may not be waived or modified by any contract or 195 agreement. The prevailing party in any action brought to enforce 196 a right of reimbursement shall be awarded damages and all 197 applicable attorney fees and costs. 198 (i) The fees specified in this subsection shall be adjusted 199 every 5 years in an amount equal to the total of the annual 200 increases for that 5-year period in the Consumer Price Index for 201 All Urban Consumers, U.S. City Average, All Items. The 202 Department of Business and Professional Regulation shall 203 periodically calculate the fees, rounded to the nearest dollar, 204 and publish the amounts, as adjusted, on its website. 205 Section 2. Subsection (6) of section 719.108, Florida 206 Statutes, is amended to read: 207 719.108 Rents and assessments; liability; lien and 208 priority; interest; collection; cooperative ownership.— 209 (6) Within 10 business15days after receiving a written or 210 electronic request for an estoppel certificate from a unit owner 211 or the unit owner’s designee, or a unit mortgagee or the unit 212 mortgagee’s designee, the association shall issue the estoppel 213 certificate. Each association shall designate on its website a 214 person or entity with a street or e-mail address for receipt of 215 a request for an estoppel certificate issued pursuant to this 216 section. The estoppel certificate must be provided by hand 217 delivery, regular mail, or e-mail to the requestor on the date 218 of issuance of the estoppel certificate. 219 (a) An estoppel certificate may be completed by any board 220 member, authorized agent, or authorized representative of the 221 association, including any authorized agent, authorized 222 representative, or employee of a management company authorized 223 to complete this form on behalf of the board or association. The 224 estoppel certificate must contain all of the following 225 information and must be substantially in the following form: 226 1. Date of issuance:.... 227 2. Name(s) of the unit owner(s) as reflected in the books 228 and records of the association:.... 229 3. Unit designation and address:.... 230 4. Parking or garage space number, as reflected in the 231 books and records of the association:.... 232 5. Attorney’s name and contact information if the account 233 is delinquent and has been turned over to an attorney for 234 collection. No fee may be charged for this information. 235 6. Fee for the preparation and delivery of the estoppel 236 certificate:.... 237 7. Name of the requestor:.... 238 8. Assessment information and other information: 239 240 ASSESSMENT INFORMATION: 241 a. The regular periodic assessment levied against the unit 242 is $.... per ...(insert frequency of payment).... 243 b. The regular periodic assessment is paid through 244 ...(insert date paid through).... 245 c. The next installment of the regular periodic assessment 246 is due ...(insert due date)... in the amount of $..... 247 d. An itemized list of all assessments, special 248 assessments, and other moneys owed by the unit owner on the date 249 of issuance to the association for a specific unit is provided. 250 e. An itemized list of any additional assessments, special 251 assessments, and other moneys that are scheduled to become due 252 for each day after the date of issuance for the effective period 253 of the estoppel certificate is provided. In calculating the 254 amounts that are scheduled to become due, the association may 255 assume that any delinquent amounts will remain delinquent during 256 the effective period of the estoppel certificate. 257 258 OTHER INFORMATION: 259 f. Is there a capital contribution fee, resale fee, 260 transfer fee, or other fee due? ...(Yes)... ...(No).... If yes, 261 specify the type and amount of the fee. 262 g. Is there any open violation of rule or regulation 263 noticed to the unit owner in the association official records? 264 ...(Yes)... ...(No).... 265 h. Do the rules and regulations of the association 266 applicable to the unit require approval by the board of 267 directors of the association for the transfer of the unit? 268 ...Yes... ...(No).... If yes, has the board approved the 269 transfer of the unit? ...(Yes)... .. .(No).... 270 i. Is there a right of first refusal provided to the 271 members or the association? ...(Yes)... ...(No).... If yes, have 272 the members or the association exercised that right of first 273 refusal? ...(Yes)... ...(No).... 274 j. Provide a list of, and contact information for, all 275 other associations of which the unit is a member. 276 k. Provide contact information for all insurance maintained 277 by the association. 278 l. Provide the signature of an officer or authorized agent 279 of the association. 280 281 The association, at its option, may include additional 282 information in the estoppel certificate. 283 (b) An estoppel certificate that is hand delivered or sent 284 by electronic means has a 30-day effective period. An estoppel 285 certificate that is sent by regular mail has a 35-day effective 286 period. If additional information or a mistake related to the 287 estoppel certificate becomes known to the association within the 288 effective period, an amended estoppel certificate may be 289 delivered and becomes effective if a sale or refinancing of the 290 unit has not been completed during the effective period. A fee 291 may not be charged for an amended estoppel certificate. An 292 amended estoppel certificate must be delivered on the date of 293 issuance, and a new 30-day or 35-day effective period begins on 294 such date. 295 (c) An association waives the right to collect any moneys 296 owed in excess of the amounts specified in the estoppel 297 certificate from any person who in good faith relies upon the 298 estoppel certificate and from the person’s successors and 299 assigns. 300 (d) If an association receives a request for an estoppel 301 certificate from a unit owner or the unit owner’s designee, or a 302 unit mortgagee or the unit mortgagee’s designee, and fails to 303 deliver the estoppel certificate within 10 business days, a fee 304 may not be charged for the preparation and delivery of that 305 estoppel certificate. 306 (e) A summary proceeding pursuant to s. 51.011 may be 307 brought to compel compliance with this subsection, and in any 308 such action the prevailing party is entitled to recover 309 reasonable attorney fees. 310 (f) Notwithstanding any limitation on transfer fees 311 contained in s. 719.106(1)(i), an association or its authorized 312 agent may charge a reasonable fee for the preparation and 313 delivery of an estoppel certificate, which may not exceed $250 314 if, on the date the certificate is issued, no delinquent amounts 315 are owed to the association for the applicable unit. If an 316 estoppel certificate is requested on an expedited basis and 317 delivered within 3 business days after the request, the 318 association may charge an additional fee of $100. If a 319 delinquent amount is owed to the association for the applicable 320 unit, an additional fee for the estoppel certificate may not 321 exceed $150. 322 (g) If estoppel certificates for multiple units owned by 323 the same owner are simultaneously requested from the same 324 association and there are no past due monetary obligations owed 325 to the association, the statement of moneys due for those units 326 may be delivered in one or more estoppel certificates, and, even 327 though the fee for each unit shall be computed as set forth in 328 paragraph (f), the total fee that the association may charge for 329 the preparation and delivery of the estoppel certificates may 330 not exceed, in the aggregate: 331 1. For 25 or fewer units, $750. 332 2. For 26 to 50 units, $1,000. 333 3. For 51 to 100 units, $1,500. 334 4. For more than 100 units, $2,500. 335 (h) The authority to charge a fee for the preparation and 336 delivery of the estoppel certificate must be established by a 337 written resolution adopted by the board or provided by a written 338 management, bookkeeping, or maintenance contract and is payable 339 upon the preparation of the certificate. If the certificate is 340 requested in conjunction with the sale or mortgage of a parcel 341 but the closing does not occur and no later than 30 days after 342 the closing date for which the certificate was sought the 343 preparer receives a written request, accompanied by reasonable 344 documentation, that the sale did not occur from a payor that is 345 not the parcel owner, the fee shall be refunded to that payor 346 within 30 days after receipt of the request. The refund is the 347 obligation of the parcel owner, and the association may collect 348 it from that owner in the same manner as an assessment as 349 provided in this section. The right to reimbursement may not be 350 waived or modified by any contract or agreement. The prevailing 351 party in any action brought to enforce a right of reimbursement 352 shall be awarded damages and all applicable attorney fees and 353 costs. 354 (i) The fees specified in this subsection shall be adjusted 355 every 5 years in an amount equal to the total of the annual 356 increases for that 5-year period in the Consumer Price Index for 357 All Urban Consumers, U.S. City Average, All Items. The 358 Department of Business and Professional Regulation shall 359 periodically calculate the fees, rounded to the nearest dollar, 360 and publish the amounts, as adjusted, on its websiteby a unit361owner or mortgagee, theassociation shall provide a certificate362stating all assessments and other moneys owed to the association363by the unit owner with respect to the cooperative parcel.Any364person other than the unit owner who relies upon such365certificate shall be protected thereby. Notwithstanding any366limitation on transfer fees contained in s. 719.106(1)(i), the367association or its authorized agent may charge a reasonable fee368for the preparation of the certificate.369 Section 3. Section 720.30851, Florida Statutes, is amended 370 to read: 371 720.30851 Estoppel certificates.—Within 10 business15days 372 after receiving a written or electronicthe date on which a373 request for an estoppel certificate from a parcel owner or the 374 parcel owner’s designee, or a parcel mortgagee or the parcel 375 mortgagee’s designee, the association shall issue the estoppel 376 certificate. Each association shall designate on its website a 377 person or entity with a street or e-mail address for receipt of 378 a request for an estoppel certificate issued pursuant to this 379 section. The estoppel certificate must be provided by hand 380 delivery, regular mail, or e-mail to the requestor on the date 381 of issuance of the estoppel certificate. 382 (1) An estoppel certificate may be completed by any board 383 member, authorized agent, or authorized representative of the 384 association, including any authorized agent, authorized 385 representative, or employee of a management company authorized 386 to complete this form on behalf of the board or association. The 387 estoppel certificate must contain all of the following 388 information and must be substantially in the following form: 389 (a) Date of issuance:.... 390 (b) Name(s) of the parcel owner(s) as reflected in the 391 books and records of the association:.... 392 (c) Parcel designation and address:.... 393 (d) Parking or garage space number, as reflected in the 394 books and records of the association:.... 395 (e) Attorney’s name and contact information if the account 396 is delinquent and has been turned over to an attorney for 397 collection. No fee may be charged for this information. 398 (f) Fee for the preparation and delivery of the estoppel 399 certificate:.... 400 (g) Name of the requestor:.... 401 (h) Assessment information and other information: 402 403 ASSESSMENT INFORMATION: 404 1. The regular periodic assessment levied against the 405 parcel is $.... per ...(insert frequency of payment).... 406 2. The regular periodic assessment is paid through 407 ...(insert date paid through).... 408 3. The next installment of the regular periodic assessment 409 is due ...(insert due date)... in the amount of $..... 410 4. An itemized list of all assessments, special 411 assessments, and other moneys owed on the date of issuance to 412 the association by the parcel owner for a specific parcel is 413 provided. 414 5. An itemized list of any additional assessments, special 415 assessments, and other moneys that are scheduled to become due 416 for each day after the date of issuance for the effective period 417 of the estoppel certificate is provided. In calculating the 418 amounts that are scheduled to become due, the association may 419 assume that any delinquent amounts will remain delinquent during 420 the effective period of the estoppel certificate. 421 422 OTHER INFORMATION: 423 6. Is there a capital contribution fee, resale fee, 424 transfer fee, or other fee due? ...(Yes)... ...(No).... If yes, 425 specify the type and amount of the fee. 426 7. Is there any open violation of rule or regulation 427 noticed to the parcel owner in the association official records? 428 ...(Yes)... ...(No).... 429 8. Do the rules and regulations of the association 430 applicable to the parcel require approval by the board of 431 directors of the association for the transfer of the parcel? 432 ...(Yes)... ...(No).... If yes, has the board approved the 433 transfer of the parcel? ...(Yes)... ...(No).... 434 9. Is there a right of first refusal provided to the 435 members or the association? ...(Yes)... ...(No).... If yes, have 436 the members or the association exercised that right of first 437 refusal? ...(Yes)... ...(No).... 438 10. Provide a list of, and contact information for, all 439 other associations of which the parcel is a member. 440 11. Provide contact information for all insurance 441 maintained by the association. 442 12. Provide the signature of an officer or authorized agent 443 of the association. 444 445 The association, at its option, may include additional 446 information in the estoppel certificate. 447 (2) An estoppel certificate that is hand delivered or sent 448 by electronic means has a 30-day effective period. An estoppel 449 certificate that is sent by regular mail has a 35-day effective 450 period. If additional information or a mistake related to the 451 estoppel certificate becomes known to the association within the 452 effective period, an amended estoppel certificate may be 453 delivered and becomes effective if a sale or refinancing of the 454 parcel has not been completed during the effective period. A fee 455 may not be charged for an amended estoppel certificate. An 456 amended estoppel certificate must be delivered on the date of 457 issuance, and a new 30-day or 35-day effective period begins on 458 such date. 459 (3) An association waives the right to collect any moneys 460 owed in excess of the amounts specified in the estoppel 461 certificate from any person who in good faith relies upon the 462 estoppel certificate and from the person’s successors and 463 assigns. 464 (4) If an association receives a request for an estoppel 465 certificate from a parcel owner or the parcel owner’s designee, 466 or a parcel mortgagee or the parcel mortgagee’s designee, and 467 fails to deliver the estoppel certificate within 10 business 468 days, a fee may not be charged for the preparation and delivery 469 of that estoppel certificateforan estoppel certificate is470received from a parcel owner or mortgagee, or his or her471designee, the association shall provide a certificate signed by472an officer or authorized agent of the association stating all473assessments and other moneys owed to the association by the474parcel owner or mortgagee with respect to the parcel.An475association may charge a fee for the preparation of such476certificate, and the amount of such fee must be stated on the477certificate.478(1) Any person other than a parcel owner who relies upon a479certificate receives the benefits and protection thereof.480 (5)(2)A summary proceeding pursuant to s. 51.011 may be 481 brought to compel compliance with this section, and the 482 prevailing party is entitled to recover reasonable attorney 483attorney’sfees. 484 (6) An association or its authorized agent may charge a 485 reasonable fee for the preparation and delivery of an estoppel 486 certificate, which may not exceed $250, if, on the date the 487 certificate is issued, no delinquent amounts are owed to the 488 association for the applicable parcel. If an estoppel 489 certificate is requested on an expedited basis and delivered 490 within 3 business days after the request, the association may 491 charge an additional fee of $100. If a delinquent amount is owed 492 to the association for the applicable parcel, an additional fee 493 for the estoppel certificate may not exceed $150. 494 (7) If estoppel certificates for multiple parcels owned by 495 the same owner are simultaneously requested from the same 496 association and there are no past due monetary obligations owed 497 to the association, the statement of moneys due for those 498 parcels may be delivered in one or more estoppel certificates, 499 and, even though the fee for each parcel shall be computed as 500 set forth in subsection (6), the total fee that the association 501 may charge for the preparation and delivery of the estoppel 502 certificates may not exceed, in the aggregate: 503 (a) For 25 or fewer parcels, $750. 504 (b) For 26 to 50 parcels, $1,000. 505 (c) For 51 to 100 parcels, $1,500. 506 (d) For more than 100 parcels, $2,500. 507 (8)(3)The authority to charge a fee for the preparation 508 and delivery of the estoppel certificate mustshallbe 509 established by a written resolution adopted by the board or 510 provided by a written management, bookkeeping, or maintenance 511 contract and is payable upon the preparation of the certificate. 512 If the certificate is requested in conjunction with the sale or 513 mortgage of a parcel but the closing does not occur and no later 514 than 30 days after the closing date for which the certificate 515 was sought the preparer receives a written request, accompanied 516 by reasonable documentation, that the sale did not occur from a 517 payor that is not the parcel owner, the fee shall be refunded to 518 that payor within 30 days after receipt of the request. The 519 refund is the obligation of the parcel owner, and the 520 association may collect it from that owner in the same manner as 521 an assessment as provided in this section. The right to 522 reimbursement may not be waived or modified by any contract or 523 agreement. The prevailing party in any action brought to enforce 524 a right of reimbursement shall be awarded damages and all 525 applicable attorney fees and costs. 526 (9) The fees specified in this section shall be adjusted 527 every 5 years in an amount equal to the total of the annual 528 increases for that 5-year period in the Consumer Price Index for 529 All Urban Consumers, U.S. City Average, All Items. The 530 Department of Business and Professional Regulation shall 531 periodically calculate the fees, rounded to the nearest dollar, 532 and publish the amounts, as adjusted, on its website. 533 Section 4. This act shall take effect July 1, 2017.