Bill Text: FL S0630 | 2021 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Community Associations
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-17 - Chapter No. 2021-99, companion bill(s) passed, see CS/CS/SB 56 (Ch. 2021-91), CS/CS/SB 1966 (Ch. 2021-135) [S0630 Detail]
Download: Florida-2021-S0630-Comm_Sub.html
Bill Title: Community Associations
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-17 - Chapter No. 2021-99, companion bill(s) passed, see CS/CS/SB 56 (Ch. 2021-91), CS/CS/SB 1966 (Ch. 2021-135) [S0630 Detail]
Download: Florida-2021-S0630-Comm_Sub.html
Florida Senate - 2021 CS for SB 630 By the Committee on Regulated Industries; and Senators Baxley, Hutson, and Rodriguez 580-02171-21 2021630c1 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 627.714, F.S.; prohibiting insurance policies from 4 providing specified rights of subrogation under 5 certain circumstances; amending s. 718.103, F.S.; 6 revising the definition of the terms 7 “multicondominium,” “operation,” and “operation of the 8 condominium”; amending s. 718.111, F.S.; requiring 9 that certain records be maintained for a specified 10 time; prohibiting an association from requiring 11 certain actions relating to the inspection of records; 12 revising requirements relating to the posting of 13 digital copies of certain documents by certain 14 condominium associations; amending s. 718.112, F.S.; 15 authorizing a condominium association to extinguish 16 discriminatory restrictions; revising the calculation 17 used in determining a board member’s term limit; 18 providing requirements for certain notices; revising 19 the fees that an association may charge for transfers; 20 deleting a prohibition against employing or 21 contracting with certain service providers; amending 22 s. 718.113, F.S.; revising legislative findings; 23 defining the terms “natural gas fuel” and “natural gas 24 fuel vehicle”; revising requirements for electric 25 vehicle charging stations; providing requirements for 26 natural gas fuel stations on property governed by 27 condominium associations; amending s. 718.117, F.S.; 28 conforming provisions to changes made by the act; 29 amending s. 718.121, F.S.; providing that labor and 30 materials associated with the installation of a 31 natural gas fuel station may not serve as the basis 32 for filing a lien against an association but may serve 33 as the basis for filing a lien against a unit owner; 34 requiring that notices of intent to record a claim of 35 lien specify certain dates; amending s. 718.1255, 36 F.S.; authorizing parties to initiate presuit 37 mediation under certain circumstances; specifying the 38 circumstances under which arbitration is binding on 39 the parties; providing requirements for presuit 40 mediation; making technical changes; amending s. 41 718.1265, F.S.; revising the emergency powers of 42 condominium associations; prohibiting condominium 43 associations from taking certain actions during a 44 declared state of emergency; amending s. 718.202, 45 F.S.; revising the allowable uses of certain escrow 46 funds withdrawn by developers; defining the term 47 “actual costs”; amending s. 718.303, F.S.; revising 48 requirements for certain actions for failure to comply 49 with specified provisions relating to condominium 50 associations; revising requirements for certain fines; 51 amending s. 718.405, F.S.; providing clarifying 52 language relating to certain multicondominium 53 declarations; providing applicability; amending s. 54 718.501, F.S.; conforming provisions to changes made 55 by the act; amending s. 718.5014, F.S.; revising a 56 requirement regarding the location of the principal 57 office of the Office of the Condominium Ombudsman; 58 amending s. 719.103, F.S.; revising the definition of 59 the term “unit” to specify that an interest in a 60 cooperative unit is an interest in real property; 61 amending s. 719.104, F.S.; prohibiting an association 62 from requiring certain actions relating to the 63 inspection of records; amending s. 719.106, F.S.; 64 revising provisions relating to a quorum and voting 65 rights for members remotely participating in meetings; 66 revising the procedure to challenge a board member 67 recall; authorizing cooperative associations to 68 extinguish discriminatory restrictions; amending s. 69 719.128, F.S.; revising emergency powers for 70 cooperative associations; prohibiting cooperative 71 associations from taking certain actions during a 72 declared state of emergency; amending s. 720.301, 73 F.S.; revising the definition of the term “governing 74 documents”; amending s. 720.303, F.S.; authorizing an 75 association to adopt procedures for electronic meeting 76 notices; revising the documents that constitute the 77 official records of an association; revising the types 78 of records that are not accessible to members or 79 parcel owners; revising the circumstances under which 80 a specified statement must be included in an 81 association’s financial report; revising requirements 82 for such statement; revising the circumstances under 83 which an association is deemed to have provided for 84 reserve accounts; revising the procedure to challenge 85 a board member recall; amending s. 720.305, F.S.; 86 providing requirements for certain fines levied by a 87 board of administration; amending s. 720.306, F.S.; 88 revising requirements for providing certain notices; 89 providing limitations on associations when a parcel 90 owner attempts to rent or lease his or her parcel; 91 defining the term “affiliated entity”; amending the 92 procedure for election disputes; amending s. 720.307, 93 F.S.; revising the circumstances under which members 94 other than the developer are entitled to elect members 95 to the board of directors of the homeowners’ 96 association; amending s. 720.311, F.S.; revising the 97 dispute resolution requirements for election disputes 98 and recall disputes; amending s. 720.3075, F.S.; 99 authorizing homeowners’ associations to extinguish 100 discriminatory restrictions; amending s. 720.316, 101 F.S.; revising emergency powers of homeowners’ 102 associations; prohibiting homeowners’ associations 103 from taking certain actions during a declared state of 104 emergency; providing an effective date. 105 106 Be It Enacted by the Legislature of the State of Florida: 107 108 Section 1. Subsection (4) of section 627.714, Florida 109 Statutes, is amended to read: 110 627.714 Residential condominium unit owner coverage; loss 111 assessment coverage required.— 112 (4) Every individual unit owner’s residential property 113 policy must contain a provision stating that the coverage 114 afforded by such policy is excess coverage over the amount 115 recoverable under any other policy covering the same property. 116 If a condominium association’s insurance policy does not provide 117 rights for subrogation against the unit owners in the 118 association, an insurance policy issued to an individual unit 119 owner in the association may not provide rights of subrogation 120 against the condominium association. 121 Section 2. Subsections (20) and (21) of section 718.103, 122 Florida Statutes, are amended to read: 123 718.103 Definitions.—As used in this chapter, the term: 124 (20) “Multicondominium” means real propertya real estate125developmentcontaining two or more condominiums, all of which 126 are operated by the same association. 127 (21) “Operation” or “operation of the condominium” includes 128 the administration and management of the condominium property 129 and the association. 130 Section 3. Paragraphs (a), (b), (c), and (g) of subsection 131 (12) of section 718.111, Florida Statutes, are amended to read: 132 718.111 The association.— 133 (12) OFFICIAL RECORDS.— 134 (a) From the inception of the association, the association 135 shall maintain each of the following items, if applicable, which 136 constitutes the official records of the association: 137 1. A copy of the plans, permits, warranties, and other 138 items provided by the developer underpursuant tos. 718.301(4). 139 2. A photocopy of the recorded declaration of condominium 140 of each condominium operated by the association and each 141 amendment to each declaration. 142 3. A photocopy of the recorded bylaws of the association 143 and each amendment to the bylaws. 144 4. A certified copy of the articles of incorporation of the 145 association, or other documents creating the association, and 146 each amendment thereto. 147 5. A copy of the current rules of the association. 148 6. A book or books that contain the minutes of all meetings 149 of the association, the board of administration, and the unit 150 owners. 151 7. A current roster of all unit owners and their mailing 152 addresses, unit identifications, voting certifications, and, if 153 known, telephone numbers. The association shall also maintain 154 the e-mail addresses and facsimile numbers of unit owners 155 consenting to receive notice by electronic transmission. The e 156 mail addresses and facsimile numbers are not accessible to unit 157 owners if consent to receive notice by electronic transmission 158 is not provided in accordance with sub-subparagraph (c)3.e. 159 However, the association is not liable for an inadvertent 160 disclosure of the e-mail address or facsimile number for 161 receiving electronic transmission of notices. 162 8. All current insurance policies of the association and 163 condominiums operated by the association. 164 9. A current copy of any management agreement, lease, or 165 other contract to which the association is a party or under 166 which the association or the unit owners have an obligation or 167 responsibility. 168 10. Bills of sale or transfer for all property owned by the 169 association. 170 11. Accounting records for the association and separate 171 accounting records for each condominium that the association 172 operates. Any person who knowingly or intentionally defaces or 173 destroys such records, or who knowingly or intentionally fails 174 to create or maintain such records, with the intent of causing 175 harm to the association or one or more of its members, is 176 personally subject to a civil penalty pursuant to s. 177 718.501(1)(d). The accounting records must include, but are not 178 limited to: 179 a. Accurate, itemized, and detailed records of all receipts 180 and expenditures. 181 b. A current account and a monthly, bimonthly, or quarterly 182 statement of the account for each unit designating the name of 183 the unit owner, the due date and amount of each assessment, the 184 amount paid on the account, and the balance due. 185 c. All audits, reviews, accounting statements, and 186 financial reports of the association or condominium. 187 d. All contracts for work to be performed. Bids for work to 188 be performed are also considered official records and must be 189 maintained by the association for at least 1 year after receipt 190 of the bid. 191 12. Ballots, sign-in sheets, voting proxies, and all other 192 papers and electronic records relating to voting by unit owners, 193 which must be maintained for 1 year from the date of the 194 election, vote, or meeting to which the document relates, 195 notwithstanding paragraph (b). 196 13. All rental records if the association is acting as 197 agent for the rental of condominium units. 198 14. A copy of the current question and answer sheet as 199 described in s. 718.504. 200 15.All other written records of the association not201specifically included in the foregoing which are related to the202operation of the association.20316.A copy of the inspection report as described in s. 204 718.301(4)(p). 205 16.17.Bids for materials, equipment, or services. 206 17. All other written records of the association not 207 specified in subparagraphs 1.-16. which are related to the 208 operation of the association. 209 (b) The official records specified in subparagraphs (a)1. 210 6. must be permanently maintained from the inception of the 211 association. Bids for work to be performed or for materials, 212 equipment, or services must be maintained for at least 1 year 213 after receipt of the bid. All other official records must be 214 maintained within the state for at least 7 years, unless 215 otherwise provided by general law. The records of the 216 association shall be made available to a unit owner within 45 217 miles of the condominium property or within the county in which 218 the condominium property is located within 10 working days after 219 receipt of a written request by the board or its designee. 220 However, such distance requirement does not apply to an 221 association governing a timeshare condominium. This paragraph 222 may be complied with by having a copy of the official records of 223 the association available for inspection or copying on the 224 condominium property or association property, or the association 225 may offer the option of making the records available to a unit 226 owner electronically via the Internet or by allowing the records 227 to be viewed in electronic format on a computer screen and 228 printed upon request. The association is not responsible for the 229 use or misuse of the information provided to an association 230 member or his or her authorized representative inpursuant to231thecompliance withrequirements ofthis chapter unless the 232 association has an affirmative duty not to disclose such 233 information underpursuant tothis chapter. 234 (c)1. The official records of the association are open to 235 inspection by any association member or the authorized 236 representative of such member at all reasonable times. The right 237 to inspect the records includes the right to make or obtain 238 copies, at the reasonable expense, if any, of the member or 239 authorized representative of such member. A renter of a unit has 240 a right to inspect and copy only the declaration of condominium 241 and the association’s bylaws and rules. The association may 242 adopt reasonable rules regarding the frequency, time, location, 243 notice, and manner of record inspections and copying, but may 244 not require a member to demonstrate any purpose or state any 245 reason for the inspection. The failure of an association to 246 provide the records within 10 working days after receipt of a 247 written request creates a rebuttable presumption that the 248 association willfully failed to comply with this paragraph. A 249 unit owner who is denied access to official records is entitled 250 to the actual damages or minimum damages for the association’s 251 willful failure to comply. Minimum damages are $50 per calendar 252 day for up to 10 days, beginning on the 11th working day after 253 receipt of the written request. The failure to permit inspection 254 entitles any person prevailing in an enforcement action to 255 recover reasonable attorney fees from the person in control of 256 the records who, directly or indirectly, knowingly denied access 257 to the records. 258 2. Any person who knowingly or intentionally defaces or 259 destroys accounting records that are required by this chapter to 260 be maintained during the period for which such records are 261 required to be maintained, or who knowingly or intentionally 262 fails to create or maintain accounting records that are required 263 to be created or maintained, with the intent of causing harm to 264 the association or one or more of its members, is personally 265 subject to a civil penalty pursuant to s. 718.501(1)(d). 266 3. The association shall maintain an adequate number of 267 copies of the declaration, articles of incorporation, bylaws, 268 and rules, and all amendments to each of the foregoing, as well 269 as the question and answer sheet as described in s. 718.504 and 270 year-end financial information required under this section, on 271 the condominium property to ensure their availability to unit 272 owners and prospective purchasers, and may charge its actual 273 costs for preparing and furnishing these documents to those 274 requesting the documents. An association shall allow a member or 275 his or her authorized representative to use a portable device, 276 including a smartphone, tablet, portable scanner, or any other 277 technology capable of scanning or taking photographs, to make an 278 electronic copy of the official records in lieu of the 279 association’s providing the member or his or her authorized 280 representative with a copy of such records. The association may 281 not charge a member or his or her authorized representative for 282 the use of a portable device. Notwithstanding this paragraph, 283 the following records are not accessible to unit owners: 284 a. Any record protected by the lawyer-client privilege as 285 described in s. 90.502 and any record protected by the work 286 product privilege, including a record prepared by an association 287 attorney or prepared at the attorney’s express direction, which 288 reflects a mental impression, conclusion, litigation strategy, 289 or legal theory of the attorney or the association, and which 290 was prepared exclusively for civil or criminal litigation or for 291 adversarial administrative proceedings, or which was prepared in 292 anticipation of such litigation or proceedings until the 293 conclusion of the litigation or proceedings. 294 b. Information obtained by an association in connection 295 with the approval of the lease, sale, or other transfer of a 296 unit. 297 c. Personnel records of association or management company 298 employees, including, but not limited to, disciplinary, payroll, 299 health, and insurance records. For purposes of this sub 300 subparagraph, the term “personnel records” does not include 301 written employment agreements with an association employee or 302 management company, or budgetary or financial records that 303 indicate the compensation paid to an association employee. 304 d. Medical records of unit owners. 305 e. Social security numbers, driver license numbers, credit 306 card numbers, e-mail addresses, telephone numbers, facsimile 307 numbers, emergency contact information, addresses of a unit 308 owner other than as provided to fulfill the association’s notice 309 requirements, and other personal identifying information of any 310 person, excluding the person’s name, unit designation, mailing 311 address, property address, and any address, e-mail address, or 312 facsimile number provided to the association to fulfill the 313 association’s notice requirements. Notwithstanding the 314 restrictions in this sub-subparagraph, an association may print 315 and distribute to unitparcelowners a directory containing the 316 name, unitparceladdress, and all telephone numbers of each 317 unitparcelowner. However, an owner may exclude his or her 318 telephone numbers from the directory by so requesting in writing 319 to the association. An owner may consent in writing to the 320 disclosure of other contact information described in this sub 321 subparagraph. The association is not liable for the inadvertent 322 disclosure of information that is protected under this sub 323 subparagraph if the information is included in an official 324 record of the association and is voluntarily provided by an 325 owner and not requested by the association. 326 f. Electronic security measures that are used by the 327 association to safeguard data, including passwords. 328 g. The software and operating system used by the 329 association which allow the manipulation of data, even if the 330 owner owns a copy of the same software used by the association. 331 The data is part of the official records of the association. 332 (g)1. By January 1, 2019, an association managing a 333 condominium with 150 or more units which does not contain 334 timeshare units shall post digital copies of the documents 335 specified in subparagraph 2. on its website or make such 336 documents available through an application that can be 337 downloaded on a mobile device. 338 a. The association’s website or application must be: 339 (I) An independent website, application, or web portal 340 wholly owned and operated by the association; or 341 (II) A website, application, or web portal operated by a 342 third-party provider with whom the association owns, leases, 343 rents, or otherwise obtains the right to operate a web page, 344 subpage, web portal,orcollection of subpages or web portals, 345 or an application which is dedicated to the association’s 346 activities and on which required notices, records, and documents 347 may be posted or made available by the association. 348 b. The association’s website or application must be 349 accessible through the Internet and must contain a subpage, web 350 portal, or other protected electronic location that is 351 inaccessible to the general public and accessible only to unit 352 owners and employees of the association. 353 c. Upon a unit owner’s written request, the association 354 must provide the unit owner with a username and password and 355 access to the protected sections of the association’s website or 356 application whichthatcontain any notices, records, or 357 documents that must be electronically provided. 358 2. A current copy of the following documents must be posted 359 in digital format on the association’s website or application: 360 a. The recorded declaration of condominium of each 361 condominium operated by the association and each amendment to 362 each declaration. 363 b. The recorded bylaws of the association and each 364 amendment to the bylaws. 365 c. The articles of incorporation of the association, or 366 other documents creating the association, and each amendment to 367 the articles of incorporation or other documentsthereto. The 368 copy posted pursuant to this sub-subparagraph must be a copy of 369 the articles of incorporation filed with the Department of 370 State. 371 d. The rules of the association. 372 e. A list of all executory contracts or documents to which 373 the association is a party or under which the association or the 374 unit owners have an obligation or responsibility and, after 375 bidding for the related materials, equipment, or services has 376 closed, a list of bids received by the association within the 377 past year. Summaries of bids for materials, equipment, or 378 services which exceed $500 must be maintained on the website or 379 application for 1 year. In lieu of summaries, complete copies of 380 the bids may be posted. 381 f. The annual budget required by s. 718.112(2)(f) and any 382 proposed budget to be considered at the annual meeting. 383 g. The financial report required by subsection (13) and any 384 monthly income or expense statement to be considered at a 385 meeting. 386 h. The certification of each director required by s. 387 718.112(2)(d)4.b. 388 i. All contracts or transactions between the association 389 and any director, officer, corporation, firm, or association 390 that is not an affiliated condominium association or any other 391 entity in which an association director is also a director or 392 officer and financially interested. 393 j. Any contract or document regarding a conflict of 394 interest or possible conflict of interest as provided in ss. 395 468.436(2)(b)6. and 718.3027(3). 396 k. The notice of any unit owner meeting and the agenda for 397 the meeting, as required by s. 718.112(2)(d)3., no later than 14 398 days before the meeting. The notice must be posted in plain view 399 on the front page of the website or application, or on a 400 separate subpage of the website or application labeled “Notices” 401 which is conspicuously visible and linked from the front page. 402 The association must also post on its website or application any 403 document to be considered and voted on by the owners during the 404 meeting or any document listed on the agenda at least 7 days 405 before the meeting at which the document or the information 406 within the document will be considered. 407 l. Notice of any board meeting, the agenda, and any other 408 document required for the meeting as required by s. 409 718.112(2)(c), which must be posted no later than the date 410 required for notice underpursuant tos. 718.112(2)(c). 411 3. The association shall ensure that the information and 412 records described in paragraph (c), which are not allowed to be 413 accessible to unit owners, are not posted on the association’s 414 website or application. If protected information or information 415 restricted from being accessible to unit owners is included in 416 documents that are required to be posted on the association’s 417 website or application, the association shall ensure the 418 information is redacted before posting the documentsonline. 419 Notwithstanding the foregoing, the association or its agent is 420 not liable for disclosing information that is protected or 421 restricted underpursuant tothis paragraph unless such 422 disclosure was made with a knowing or intentional disregard of 423 the protected or restricted nature of such information. 424 4. The failure of the association to post information 425 required under subparagraph 2. is not in and of itself 426 sufficient to invalidate any action or decision of the 427 association’s board or its committees. 428 Section 4. Paragraphs (d), (i), (j), (k), and (p) of 429 subsection (2) of section 718.112, Florida Statutes, are 430 amended, and paragraph (c) is added to subsection (1) of that 431 section, to read: 432 718.112 Bylaws.— 433 (1) GENERALLY.— 434 (c) The association may extinguish a discriminatory 435 restriction as provided under s. 712.065. 436 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 437 following and, if they do not do so, shall be deemed to include 438 the following: 439 (d) Unit owner meetings.— 440 1. An annual meeting of the unit owners must be held at the 441 location provided in the association bylaws and, if the bylaws 442 are silent as to the location, the meeting must be held within 443 45 miles of the condominium property. However, such distance 444 requirement does not apply to an association governing a 445 timeshare condominium. 446 2. Unless the bylaws provide otherwise, a vacancy on the 447 board caused by the expiration of a director’s term must be 448 filled by electing a new board member, and the election must be 449 by secret ballot. An election is not required if the number of 450 vacancies equals or exceeds the number of candidates. For 451 purposes of this paragraph, the term “candidate” means an 452 eligible person who has timely submitted the written notice, as 453 described in sub-subparagraph 4.a., of his or her intention to 454 become a candidate. Except in a timeshare or nonresidential 455 condominium, or if the staggered term of a board member does not 456 expire until a later annual meeting, or if all members’ terms 457 would otherwise expire but there are no candidates, the terms of 458 all board members expire at the annual meeting, and such members 459 may stand for reelection unless prohibited by the bylaws. Board 460 members may serve terms longer than 1 year if permitted by the 461 bylaws or articles of incorporation. A board member may not 462 serve more than 8 consecutive years unless approved by an 463 affirmative vote of unit owners representing two-thirds of all 464 votes cast in the election or unless there are not enough 465 eligible candidates to fill the vacancies on the board at the 466 time of the vacancy. Only board service that occurs on or after 467 July 1, 2018, may be used when calculating a board member’s term 468 limit. If the number of board members whose terms expire at the 469 annual meeting equals or exceeds the number of candidates, the 470 candidates become members of the board effective upon the 471 adjournment of the annual meeting. Unless the bylaws provide 472 otherwise, any remaining vacancies shall be filled by the 473 affirmative vote of the majority of the directors making up the 474 newly constituted board even if the directors constitute less 475 than a quorum or there is only one director. In a residential 476 condominium association of more than 10 units or in a 477 residential condominium association that does not include 478 timeshare units or timeshare interests, co-owners of a unit may 479 not serve as members of the board of directors at the same time 480 unless they own more than one unit or unless there are not 481 enough eligible candidates to fill the vacancies on the board at 482 the time of the vacancy. A unit owner in a residential 483 condominium desiring to be a candidate for board membership must 484 comply with sub-subparagraph 4.a. and must be eligible to be a 485 candidate to serve on the board of directors at the time of the 486 deadline for submitting a notice of intent to run in order to 487 have his or her name listed as a proper candidate on the ballot 488 or to serve on the board. A person who has been suspended or 489 removed by the division under this chapter, or who is delinquent 490 in the payment of any monetary obligation due to the 491 association, is not eligible to be a candidate for board 492 membership and may not be listed on the ballot. A person who has 493 been convicted of any felony in this state or in a United States 494 District or Territorial Court, or who has been convicted of any 495 offense in another jurisdiction which would be considered a 496 felony if committed in this state, is not eligible for board 497 membership unless such felon’s civil rights have been restored 498 for at least 5 years as of the date such person seeks election 499 to the board. The validity of an action by the board is not 500 affected if it is later determined that a board member is 501 ineligible for board membership due to having been convicted of 502 a felony. This subparagraph does not limit the term of a member 503 of the board of a nonresidential or timeshare condominium. 504 3. The bylaws must provide the method of calling meetings 505 of unit owners, including annual meetings. Written notice of an 506 annual meeting must include an agenda;, mustbe mailed, hand 507 delivered, or electronically transmitted to each unit owner at 508 least 14 days before the annual meeting;,andmustbe posted in 509 a conspicuous place on the condominium property or association 510 property at least 14 continuous days before the annual meeting. 511 Written notice of a meeting other than an annual meeting must 512 include an agenda; be mailed, hand delivered, or electronically 513 transmitted to each unit owner; and be posted in a conspicuous 514 place on the condominium property or association property within 515 the timeframe specified in the bylaws. If the bylaws do not 516 specify a timeframe for written notice of a meeting other than 517 an annual meeting, notice must be provided at least 14 518 continuous days before the meeting. Upon notice to the unit 519 owners, the board shall, by duly adopted rule, designate a 520 specific location on the condominium property or association 521 property where all notices of unit owner meetings must be 522 posted. This requirement does not apply if there is no 523 condominium property for posting notices. In lieu of, or in 524 addition to, the physical posting of meeting notices, the 525 association may, by reasonable rule, adopt a procedure for 526 conspicuously posting and repeatedly broadcasting the notice and 527 the agenda on a closed-circuit cable television system serving 528 the condominium association. However, if broadcast notice is 529 used in lieu of a notice posted physically on the condominium 530 property, the notice and agenda must be broadcast at least four 531 times every broadcast hour of each day that a posted notice is 532 otherwise required under this section. If broadcast notice is 533 provided, the notice and agenda must be broadcast in a manner 534 and for a sufficient continuous length of time so as to allow an 535 average reader to observe the notice and read and comprehend the 536 entire content of the notice and the agenda. In addition to any 537 of the authorized means of providing notice of a meeting of the 538 board, the association may, by rule, adopt a procedure for 539 conspicuously posting the meeting notice and the agenda on a 540 website serving the condominium association for at least the 541 minimum period of time for which a notice of a meeting is also 542 required to be physically posted on the condominium property. 543 Any rule adopted shall, in addition to other matters, include a 544 requirement that the association send an electronic notice in 545 the same manner as a notice for a meeting of the members, which 546 must include a hyperlink to the website where the notice is 547 posted, to unit owners whose e-mail addresses are included in 548 the association’s official records. Unless a unit owner waives 549 in writing the right to receive notice of the annual meeting, 550 such notice must be hand delivered, mailed, or electronically 551 transmitted to each unit owner. Notice for meetings and notice 552 for all other purposes must be mailed to each unit owner at the 553 address last furnished to the association by the unit owner, or 554 hand delivered to each unit owner. However, if a unit is owned 555 by more than one person, the association must provide notice to 556 the address that the developer identifies for that purpose and 557 thereafter as one or more of the owners of the unit advise the 558 association in writing, or if no address is given or the owners 559 of the unit do not agree, to the address provided on the deed of 560 record. An officer of the association, or the manager or other 561 person providing notice of the association meeting, must provide 562 an affidavit or United States Postal Service certificate of 563 mailing, to be included in the official records of the 564 association affirming that the notice was mailed or hand 565 delivered in accordance with this provision. 566 4. The members of the board of a residential condominium 567 shall be elected by written ballot or voting machine. Proxies 568 may not be used in electing the board in general elections or 569 elections to fill vacancies caused by recall, resignation, or 570 otherwise, unless otherwise provided in this chapter. This 571 subparagraph does not apply to an association governing a 572 timeshare condominium. 573 a. At least 60 days before a scheduled election, the 574 association shall mail, deliver, or electronically transmit, by 575 separate association mailing or included in another association 576 mailing, delivery, or transmission, including regularly 577 published newsletters, to each unit owner entitled to a vote, a 578 first notice of the date of the election. A unit owner or other 579 eligible person desiring to be a candidate for the board must 580 give written notice of his or her intent to be a candidate to 581 the association at least 40 days before a scheduled election. 582 Together with the written notice and agenda as set forth in 583 subparagraph 3., the association shall mail, deliver, or 584 electronically transmit a second notice of the election to all 585 unit owners entitled to vote, together with a ballot that lists 586 all candidates not less than 14 days or more than 34 days before 587 the date of the election. Upon request of a candidate, an 588 information sheet, no larger than 8 1/2 inches by 11 inches, 589 which must be furnished by the candidate at least 35 days before 590 the election, must be included with the mailing, delivery, or 591 transmission of the ballot, with the costs of mailing, delivery, 592 or electronic transmission and copying to be borne by the 593 association. The association is not liable for the contents of 594 the information sheets prepared by the candidates. In order to 595 reduce costs, the association may print or duplicate the 596 information sheets on both sides of the paper. The division 597 shall by rule establish voting procedures consistent with this 598 sub-subparagraph, including rules establishing procedures for 599 giving notice by electronic transmission and rules providing for 600 the secrecy of ballots. Elections shall be decided by a 601 plurality of ballots cast. There is no quorum requirement; 602 however, at least 20 percent of the eligible voters must cast a 603 ballot in order to have a valid election. A unit owner may not 604 authorize any other person to vote his or her ballot, and any 605 ballots improperly cast are invalid. A unit owner who violates 606 this provision may be fined by the association in accordance 607 with s. 718.303. A unit owner who needs assistance in casting 608 the ballot for the reasons stated in s. 101.051 may obtain such 609 assistance. The regular election must occur on the date of the 610 annual meeting. Notwithstanding this sub-subparagraph, an 611 election is not required unless more candidates file notices of 612 intent to run or are nominated than board vacancies exist. 613 b. Within 90 days after being elected or appointed to the 614 board of an association of a residential condominium, each newly 615 elected or appointed director shall certify in writing to the 616 secretary of the association that he or she has read the 617 association’s declaration of condominium, articles of 618 incorporation, bylaws, and current written policies; that he or 619 she will work to uphold such documents and policies to the best 620 of his or her ability; and that he or she will faithfully 621 discharge his or her fiduciary responsibility to the 622 association’s members. In lieu of this written certification, 623 within 90 days after being elected or appointed to the board, 624 the newly elected or appointed director may submit a certificate 625 of having satisfactorily completed the educational curriculum 626 administered by a division-approved condominium education 627 provider within 1 year before or 90 days after the date of 628 election or appointment. The written certification or 629 educational certificate is valid and does not have to be 630 resubmitted as long as the director serves on the board without 631 interruption. A director of an association of a residential 632 condominium who fails to timely file the written certification 633 or educational certificate is suspended from service on the 634 board until he or she complies with this sub-subparagraph. The 635 board may temporarily fill the vacancy during the period of 636 suspension. The secretary shall cause the association to retain 637 a director’s written certification or educational certificate 638 for inspection by the members for 5 years after a director’s 639 election or the duration of the director’s uninterrupted tenure, 640 whichever is longer. Failure to have such written certification 641 or educational certificate on file does not affect the validity 642 of any board action. 643 c. Any challenge to the election process must be commenced 644 within 60 days after the election results are announced. 645 5. Any approval by unit owners called for by this chapter 646 or the applicable declaration or bylaws, including, but not 647 limited to, the approval requirement in s. 718.111(8), must be 648 made at a duly noticed meeting of unit owners and is subject to 649 all requirements of this chapter or the applicable condominium 650 documents relating to unit owner decisionmaking, except that 651 unit owners may take action by written agreement, without 652 meetings, on matters for which action by written agreement 653 without meetings is expressly allowed by the applicable bylaws 654 or declaration or any law that provides for such action. 655 6. Unit owners may waive notice of specific meetings if 656 allowed by the applicable bylaws or declaration or any law. 657 Notice of meetings of the board of administration, unit owner 658 meetings, except unit owner meetings called to recall board 659 members under paragraph (j), and committee meetings may be given 660 by electronic transmission to unit owners who consent to receive 661 notice by electronic transmission. A unit owner who consents to 662 receiving notices by electronic transmission is solely 663 responsible for removing or bypassing filters that block receipt 664 of mass e-mailsemailssent to members on behalf of the 665 association in the course of giving electronic notices. 666 7. Unit owners have the right to participate in meetings of 667 unit owners with reference to all designated agenda items. 668 However, the association may adopt reasonable rules governing 669 the frequency, duration, and manner of unit owner participation. 670 8. A unit owner may tape record or videotape a meeting of 671 the unit owners subject to reasonable rules adopted by the 672 division. 673 9. Unless otherwise provided in the bylaws, any vacancy 674 occurring on the board before the expiration of a term may be 675 filled by the affirmative vote of the majority of the remaining 676 directors, even if the remaining directors constitute less than 677 a quorum, or by the sole remaining director. In the alternative, 678 a board may hold an election to fill the vacancy, in which case 679 the election procedures must conform to sub-subparagraph 4.a. 680 unless the association governs 10 units or fewer and has opted 681 out of the statutory election process, in which case the bylaws 682 of the association control. Unless otherwise provided in the 683 bylaws, a board member appointed or elected under this section 684 shall fill the vacancy for the unexpired term of the seat being 685 filled. Filling vacancies created by recall is governed by 686 paragraph (j) and rules adopted by the division. 687 10. This chapter does not limit the use of general or 688 limited proxies, require the use of general or limited proxies, 689 or require the use of a written ballot or voting machine for any 690 agenda item or election at any meeting of a timeshare 691 condominium association or nonresidential condominium 692 association. 693 694 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an 695 association of 10 or fewer units may, by affirmative vote of a 696 majority of the total voting interests, provide for different 697 voting and election procedures in its bylaws, which may be by a 698 proxy specifically delineating the different voting and election 699 procedures. The different voting and election procedures may 700 provide for elections to be conducted by limited or general 701 proxy. 702 (i) Transfer fees.—An association may notnocharge a fee 703shall be made by the association or any body thereofin 704 connection with the sale, mortgage, lease, sublease, or other 705 transfer of a unit unless the association is required to approve 706 such transfer and a fee for such approval is provided for in the 707 declaration, articles, or bylaws. Any such fee may be preset, 708 but may notin no event may such feeexceed $150$100per 709 applicant. For the purpose of calculating the fee, spouses or a 710 parent or parents and any dependent childrenother than711husband/wife or parent/dependent child, whichare considered one 712 applicant. However, if the lease or sublease is a renewal of a 713 lease or sublease with the same lessee or sublessee, a charge 714 may notno charge shallbe made. Such fees must be adjusted 715 every 5 years in an amount equal to the total of the annual 716 increases occurring in the Consumer Price Index for All Urban 717 Consumers, U.S. City Average, All Items during that 5-year 718 period. The Department of Business and Professional Regulation 719 shall periodically calculate the fees, rounded to the nearest 720 dollar, and publish the amounts, as adjusted, on its website. 721 The foregoing notwithstanding,an association may,if the 722 authority to do so appears in the declaration, articles, or 723 bylaws, an association may require that a prospective lessee 724 place a security deposit, in an amount not to exceed the 725 equivalent of 1 month’s rent, into an escrow account maintained 726 by the association. The security deposit shall protect against 727 damages to the common elements or association property. Payment 728 of interest, claims against the deposit, refunds, and disputes 729 under this paragraph shall be handled in the same fashion as 730 provided in part II of chapter 83. 731 (j) Recall of board members.—Subject to s. 718.301, any 732 member of the board of administration may be recalled and 733 removed from office with or without cause by the vote or 734 agreement in writing by a majority of all the voting interests. 735 A special meeting of the unit owners to recall a member or 736 members of the board of administration may be called by 10 737 percent of the voting interests giving notice of the meeting as 738 required for a meeting of unit owners, and the notice shall 739 state the purpose of the meeting. Electronic transmission may 740 not be used as a method of giving notice of a meeting called in 741 whole or in part for this purpose. 742 1. If the recall is approved by a majority of all voting 743 interests by a vote at a meeting, the recall will be effective 744 as provided in this paragraph. The board shall duly notice and 745 hold a board meeting within 5 full business days after the 746 adjournment of the unit owner meeting to recall one or more 747 board members. Such member or members shall be recalled 748 effective immediately upon conclusion of the board meeting, 749 provided that the recall is facially valid. A recalled member 750 must turn over to the board, within 10 full business days after 751 the vote, any and all records and property of the association in 752 their possession. 753 2. If the proposed recall is by an agreement in writing by 754 a majority of all voting interests, the agreement in writing or 755 a copy thereof shall be served on the association by certified 756 mail or by personal service in the manner authorized by chapter 757 48 and the Florida Rules of Civil Procedure. The board of 758 administration shall duly notice and hold a meeting of the board 759 within 5 full business days after receipt of the agreement in 760 writing. Such member or members shall be recalled effective 761 immediately upon the conclusion of the board meeting, provided 762 that the recall is facially valid. A recalled member must turn 763 over to the board, within 10 full business days, any and all 764 records and property of the association in their possession. 765 3. If the board fails to duly notice and hold a board 766 meeting within 5 full business days after service of an 767 agreement in writing or within 5 full business days after the 768 adjournment of the unit owner recall meeting, the recall is 769shall bedeemed effective and the board members so recalled 770 shall turn over to the board within 10 full business days after 771 the vote any and all records and property of the association. 772 4. If the board fails to duly notice and hold the required 773 meeting or at the conclusion of the meeting determines that the 774 recall is not facially valid, the unit owner representative may 775 file a petition or court action underpursuant tos. 718.1255 776 challenging the board’s failure to act or challenging the 777 board’s determination on facial validity. The petition or action 778 must be filed within 60 days after the expiration of the 779 applicable 5-full-business-day period. The review of a petition 780 or action under this subparagraph is limited to the sufficiency 781 of service on the board and the facial validity of the written 782 agreement or ballots filed. 783 5. If a vacancy occurs on the board as a result of a recall 784 or removal and less than a majority of the board members are 785 removed, the vacancy may be filled by the affirmative vote of a 786 majority of the remaining directors, notwithstanding any 787 provision to the contrary contained in this subsection. If 788 vacancies occur on the board as a result of a recall and a 789 majority or more of the board members are removed, the vacancies 790 shall be filled in accordance with procedural rules to be 791 adopted by the division, which rules need not be consistent with 792 this subsection. The rules must provide procedures governing the 793 conduct of the recall election as well as the operation of the 794 association during the period after a recall but before the 795 recall election. 796 6. A board member who has been recalled may file a petition 797 or court action underpursuant tos. 718.1255 challenging the 798 validity of the recall. The petition or action must be filed 799 within 60 days after the recall. The association and the unit 800 owner representative shall be named as the respondents. The 801 petition or action may challenge the facial validity of the 802 written agreement or ballots filed or the substantial compliance 803 with the procedural requirements for the recall. If the 804 arbitrator or court determines the recall was invalid, the 805 petitioning board member shall immediately be reinstated and the 806 recall is null and void. A board member who is successful in 807 challenging a recall is entitled to recover reasonable attorney 808 fees and costs from the respondents. The arbitrator or court may 809 award reasonable attorney fees and costs to the respondents if 810 they prevail, if the arbitrator or court makes a finding that 811 the petitioner’s claim is frivolous. 812 7. The division or a court of competent jurisdiction may 813 not accept for filing a recall petition or court action, whether 814 filed underpursuant tosubparagraph 1., subparagraph 2., 815 subparagraph 4., or subparagraph 6., when there are 60 or fewer 816 days until the scheduled reelection of the board member sought 817 to be recalled or when 60 or fewer days have elapsed since the 818 election of the board member sought to be recalled. 819 (k) Alternative dispute resolutionArbitration.—There must 820shallbe a provision for alternative dispute resolution 821mandatory nonbinding arbitrationas provided for in s. 718.1255 822 for any residential condominium. 823(p)Service providers; conflicts of interest.—An824association, which is not a timeshare condominium association,825may not employ or contract with any service provider that is826owned or operated by a board member or with any person who has a827financial relationship with a board member or officer, or a828relative within the third degree of consanguinity by blood or829marriage of a board member or officer. This paragraph does not830apply to a service provider in which a board member or officer,831or a relative within the third degree of consanguinity by blood832or marriage of a board member or officer, owns less than 1833percent of the equity shares.834 Section 5. Subsection (8) of section 718.113, Florida 835 Statutes, is amended to read: 836 718.113 Maintenance; limitation upon improvement; display 837 of flag; hurricane shutters and protection; display of religious 838 decorations.— 839 (8) The Legislature finds that the use of electric and 840 natural gas fuel vehicles conserves and protects the state’s 841 environmental resources, provides significant economic savings 842 to drivers, and serves an important public interest. The 843 participation of condominium associations is essential to the 844 state’s efforts to conserve and protect the state’s 845 environmental resources and provide economic savings to drivers. 846 For purposes of this subsection, the term “natural gas fuel” has 847 the same meaning as in s. 206.9951, and the term “natural gas 848 fuel vehicle” means any motor vehicle, as defined in s. 320.01, 849 that is powered by natural gas fuel. Therefore, the installation 850 of an electric vehicle charging station or a natural gas fuel 851 station shall be governed as follows: 852 (a) A declaration of condominium or restrictive covenant 853 may not prohibit or be enforced so as to prohibit any unit owner 854 from installing an electric vehicle charging station or a 855 natural gas fuel station within the boundaries of the unit 856 owner’s limited common element or exclusively designated parking 857 area. The board of administration of a condominium association 858 may not prohibit a unit owner from installing an electric 859 vehicle charging station for an electric vehicle, as defined in 860 s. 320.01, or a natural gas fuel station for a natural gas fuel 861 vehicle within the boundaries of his or her limited common 862 element or exclusively designated parking area. The installation 863 of such charging or fuel stations are subject to the provisions 864 of this subsection. 865 (b) The installation may not cause irreparable damage to 866 the condominium property. 867 (c) The electricity for the electric vehicle charging 868 station or natural gas fuel station must be separately metered 869 or metered by an embedded meter and payable by the unit owner 870 installing such charging or fuel station or by his or her 871 successor. 872 (d) The cost for supply and storage of the natural gas fuel 873 must be paid by the unit owner installing the natural gas fuel 874 station or by his or her successor. 875 (e)(d)The unit owner who is installing an electric vehicle 876 charging station or a natural gas fuel station is responsible 877 for the costs of installation, operation, maintenance, and 878 repair, including, but not limited to, hazard and liability 879 insurance. The association may enforce payment of such costs 880 underpursuant tos. 718.116. 881 (f)(e)If the unit owner or his or her successor decides 882 there is no longer a need for the electricelectronicvehicle 883 charging station or natural gas fuel station, such person is 884 responsible for the cost of removal of suchthe electronic885vehiclecharging or fuel station. The association may enforce 886 payment of such costs underpursuant tos. 718.116. 887 (g) The unit owner installing, maintaining, or removing the 888 electric vehicle charging station or natural gas fuel station is 889 responsible for complying with all federal, state, or local laws 890 and regulations applicable to such installation, maintenance, or 891 removal. 892 (h)(f)The association may require the unit owner to: 893 1. Comply with bona fide safety requirements, consistent 894 with applicable building codes or recognized safety standards, 895 for the protection of persons and property. 896 2. Comply with reasonable architectural standards adopted 897 by the association that govern the dimensions, placement, or 898 external appearance of the electric vehicle charging station or 899 natural gas fuel station, provided that such standards may not 900 prohibit the installation of such charging or fuel station or 901 substantially increase the cost thereof. 902 3. Engage the services of a licensed and registered firm 903electrical contractor or engineerfamiliar with the installation 904 or removal and core requirements of an electric vehicle charging 905 station or a natural gas fuel station. 906 4. Provide a certificate of insurance naming the 907 association as an additional insured on the owner’s insurance 908 policy for any claim related to the installation, maintenance, 909 or use of the electric vehicle charging station or natural gas 910 fuel station within 14 days after receiving the association’s 911 approval to install such charging or fuel station or notice to 912 provide such a certificate. 913 5. Reimburse the association for the actual cost of any 914 increased insurance premium amount attributable to the electric 915 vehicle charging station or natural gas fuel station within 14 916 days after receiving the association’s insurance premium 917 invoice. 918 (i)(g)The association provides an implied easement across 919 the common elements of the condominium property to the unit 920 owner for purposes ofthe installation of theelectric vehicle 921 charging station or natural gas fuel station installation, and 922 the furnishing of electrical power or natural gas fuel supply, 923 including any necessary equipment, to such charging or fuel 924 station, subject to the requirements of this subsection. 925 Section 6. Subsection (16) of section 718.117, Florida 926 Statutes, is amended to read: 927 718.117 Termination of condominium.— 928 (16) RIGHT TO CONTEST.—A unit owner or lienor may contest a 929 plan of termination by initiating a petition in accordance with 930for mandatory nonbinding arbitration pursuant tos. 718.1255 931 within 90 days after the date the plan is recorded. A unit owner 932 or lienor may only contest the fairness and reasonableness of 933 the apportionment of the proceeds from the sale among the unit 934 owners, that the liens of the first mortgages of unit owners 935 other than the bulk owner have not or will not be satisfied to 936 the extent required by subsection (3), or that the required vote 937 to approve the plan was not obtained. A unit owner or lienor who 938 does not contest the plan within the 90-day period is barred 939 from asserting or prosecuting a claim against the association, 940 the termination trustee, any unit owner, or any successor in 941 interest to the condominium property. In an action contesting a 942 plan of termination, the person contesting the plan has the 943 burden of pleading and proving that the apportionment of the 944 proceeds from the sale among the unit owners was not fair and 945 reasonable or that the required vote was not obtained. The 946 apportionment of sale proceeds is presumed fair and reasonable 947 if it was determined pursuant to the methods prescribed in 948 subsection (12). If the petition is filed with the division for 949 arbitration, the arbitrator shall determine the rights and 950 interests of the parties in the apportionment of the sale 951 proceeds. If the arbitrator determines that the apportionment of 952 sales proceeds is not fair and reasonable, the arbitrator may 953 void the plan or may modify the plan to apportion the proceeds 954 in a fair and reasonable manner pursuant to this section based 955 upon the proceedings and order the modified plan of termination 956 to be implemented. If the arbitrator determines that the plan 957 was not properly approved, or that the procedures to adopt the 958 plan were not properly followed, the arbitrator may void the 959 plan or grant other relief it deems just and proper. The 960 arbitrator shall automatically void the plan upon a finding that 961 any of the disclosures required in subparagraph (3)(c)5. are 962 omitted, misleading, incomplete, or inaccurate. Any challenge to 963 a plan, other than a challenge that the required vote was not 964 obtained, does not affect title to the condominium property or 965 the vesting of the condominium property in the trustee, but 966 shall only be a claim against the proceeds of the plan. In any 967 such action, the prevailing party shall recover reasonable 968 attorney fees and costs. 969 Section 7. Subsections (2) and (4) of section 718.121, 970 Florida Statutes, are amended to read: 971 718.121 Liens.— 972 (2) Labor performed on or materials furnished to a unit may 973shallnot be the basis for the filing of a lien underpursuant974topart I of chapter 713, the Construction Lien Law, against the 975 unit or condominium parcel of any unit owner not expressly 976 consenting to or requesting the labor or materials. Labor 977 performed on or materials furnished for the installation of a 978 natural gas fuel station or an electricelectronicvehicle 979 charging station underpursuant tos. 718.113(8) may not be the 980 basis for filing a lien under part I of chapter 713 against the 981 association, but such a lien may be filed against the unit 982 owner. Labor performed on or materials furnished to the common 983 elements are not the basis for a lien on the common elements, 984 but if authorized by the association, the labor or materials are 985 deemed to be performed or furnished with the express consent of 986 each unit owner and may be the basis for the filing of a lien 987 against all condominium parcels in the proportions for which the 988 owners are liable for common expenses. 989 (4) Except as otherwise provided in this chapter, no lien 990 may be filed by the association against a condominium unit until 991 30 days after the date on which a notice of intent to file a 992 lien has been delivered to the owner by registered or certified 993 mail, return receipt requested, and by first-class United States 994 mail to the owner at his or her last address as reflected in the 995 records of the association, if the address is within the United 996 States, and delivered to the owner at the address of the unit if 997 the owner’s address as reflected in the records of the 998 association is not the unit address. If the address reflected in 999 the records is outside the United States, sending the notice to 1000 that address and to the unit address by first-class United 1001 States mail is sufficient.Delivery of theNotice isshall be1002 deemed to have been deliveredgivenupon mailing as required by 1003 this subsection, provided that it is. The notice must bein 1004 substantially the following form: 1005 1006 NOTICE OF INTENT 1007 TO RECORD A CLAIM OF LIEN 1008 1009 RE: Unit .... of ...(name of association)... 1010 1011 The following amounts are currently due on your 1012 account to ...(name of association)..., and must be 1013 paid within 30 days after your receipt of this letter. 1014 This letter shall serve as the association’s notice of 1015 intent to record a Claim of Lien against your property 1016 no sooner than 30 days after your receipt of this 1017 letter, unless you pay in full the amounts set forth 1018 below: 1019 1020 Maintenance due ...(dates)... $..... 1021 Late fee, if applicable $..... 1022 Interest through ...(dates)...* $..... 1023 Certified mail charges ...(dates)... $..... 1024 Other costs $..... 1025 TOTAL OUTSTANDING $..... 1026 1027 *Interest accrues at the rate of .... percent per annum. 1028 Section 8. Section 718.1255, Florida Statutes, is amended 1029 to read: 1030 718.1255 Alternative dispute resolution;voluntary1031 mediation;mandatorynonbinding arbitration; legislative 1032 findings.— 1033 (1) DEFINITIONS.—As used in this section, the term 1034 “dispute” means any disagreement between two or more parties 1035 that involves: 1036 (a) The authority of the board of directors, under this 1037 chapter or association document, to: 1038 1. Require any owner to take any action, or not to take any 1039 action, involving that owner’s unit or the appurtenances 1040 thereto. 1041 2. Alter or add to a common area or element. 1042 (b) The failure of a governing body, when required by this 1043 chapter or an association document, to: 1044 1. Properly conduct elections. 1045 2. Give adequate notice of meetings or other actions. 1046 3. Properly conduct meetings. 1047 4. Allow inspection of books and records. 1048 (c) A plan of termination pursuant to s. 718.117. 1049 1050 “Dispute” does not include any disagreement that primarily 1051 involves: title to any unit or common element; the 1052 interpretation or enforcement of any warranty; the levy of a fee 1053 or assessment, or the collection of an assessment levied against 1054 a party; the eviction or other removal of a tenant from a unit; 1055 alleged breaches of fiduciary duty by one or more directors; or 1056 claims for damages to a unit based upon the alleged failure of 1057 the association to maintain the common elements or condominium 1058 property. 1059 (2)VOLUNTARYMEDIATION.—VoluntaryMediation through 1060 Citizen Dispute Settlement Centers as provided for in s. 44.201 1061 is encouraged. 1062 (3) LEGISLATIVE FINDINGS.— 1063 (a) The Legislature finds that unit owners are frequently 1064 at a disadvantage when litigating against an association. 1065 Specifically, a condominium association, with its statutory 1066 assessment authority, is often more able to bear the costs and 1067 expenses of litigation than the unit owner who must rely on his 1068 or her own financial resources to satisfy the costs of 1069 litigation against the association. 1070 (b) The Legislature finds that alternative dispute 1071 resolution has been making progress in reducing court dockets 1072 and trials and in offering a more efficient, cost-effective 1073 option to court litigation. However, the Legislature also finds 1074 that alternative dispute resolution should not be used as a 1075 mechanism to encourage the filing of frivolous or nuisance 1076 suits. 1077 (c) There exists a need to develop a flexible means of 1078 alternative dispute resolution that directs disputes to the most 1079 efficient means of resolution. 1080 (d) The high cost and significant delay of circuit court 1081 litigation faced by unit owners in the state can be alleviated 1082 by requiring nonbinding arbitration and mediation in appropriate 1083 cases, thereby reducing delay and attorneyattorney’sfees while 1084 preserving the right of either party to have its case heard by a 1085 jury, if applicable, in a court of law. 1086 (4)MANDATORYNONBINDING ARBITRATION AND MEDIATION OF 1087 DISPUTES.—The Division of Florida Condominiums, Timeshares, and 1088 Mobile Homes of the Department of Business and Professional 1089 Regulation may employ full-time attorneys to act as arbitrators 1090 to conduct the arbitration hearings provided by this chapter. 1091 The division may also certify attorneys who are not employed by 1092 the division to act as arbitrators to conduct the arbitration 1093 hearings provided by this chapter. ANoperson may not be 1094 employed by the department as a full-time arbitrator unless he 1095 or she is a member in good standing of The Florida Bar. A person 1096 may only be certified by the division to act as an arbitrator if 1097 he or she has been a member in good standing of The Florida Bar 1098 for at least 5 years and has mediated or arbitrated at least 10 1099 disputes involving condominiums in this state during the 3 years 1100 immediately preceding the date of application, mediated or 1101 arbitrated at least 30 disputes in any subject area in this 1102 state during the 3 years immediately preceding the date of 1103 application, or attained board certification in real estate law 1104 or condominium and planned development law from The Florida Bar. 1105 Arbitrator certification is valid for 1 year. An arbitrator who 1106 does not maintain the minimum qualifications for initial 1107 certification may not have his or her certification renewed. The 1108 department may not enter into a legal services contract for an 1109 arbitration hearing under this chapter with an attorney who is 1110 not a certified arbitrator unless a certified arbitrator is not 1111 available within 50 miles of the dispute. The department shall 1112 adopt rules of procedure to govern such arbitration hearings 1113 including mediation incident thereto. The decision of an 1114 arbitrator isshall befinal; however, a decision isshallnot 1115bedeemed final agency action. Nothing in this provision shall 1116 be construed to foreclose parties from proceeding in a trial de 1117 novo unless the parties have agreed that the arbitration is 1118 binding. If judicial proceedings are initiated, the final 1119 decision of the arbitrator isshall beadmissible in evidence in 1120 the trial de novo. 1121 (a) BeforePrior tothe institution of court litigation, a 1122 party to a dispute, other than an election or recall dispute, 1123 shall either petition the division for nonbinding arbitration or 1124 initiate presuit mediation as provided in subsection (5). 1125 Arbitration is binding on the parties if all parties in 1126 arbitration agree to be bound in a writing filed in arbitration. 1127 The petition must be accompanied by a filing fee in the amount 1128 of $50. Filing fees collected under this section must be used to 1129 defray the expenses of the alternative dispute resolution 1130 program. 1131 (b) The petition must recite, and have attached thereto, 1132 supporting proof that the petitioner gave the respondents: 1133 1. Advance written notice of the specific nature of the 1134 dispute; 1135 2. A demand for relief, and a reasonable opportunity to 1136 comply or to provide the relief; and 1137 3. Notice of the intention to file an arbitration petition 1138 or other legal action in the absence of a resolution of the 1139 dispute. 1140 1141 Failure to include the allegations or proof of compliance with 1142 these prerequisites requires dismissal of the petition without 1143 prejudice. 1144 (c) Upon receipt, the petition shall be promptly reviewed 1145 by the division to determine the existence of a dispute and 1146 compliance with the requirements of paragraphs (a) and (b). If 1147 emergency relief is required and is not available through 1148 arbitration, a motion to stay the arbitration may be filed. The 1149 motion must be accompanied by a verified petition alleging facts 1150 that, if proven, would support entry of a temporary injunction, 1151 and if an appropriate motion and supporting papers are filed, 1152 the division may abate the arbitration pending a court hearing 1153 and disposition of a motion for temporary injunction. 1154 (d) Upon determination by the division that a dispute 1155 exists and that the petition substantially meets the 1156 requirements of paragraphs (a) and (b) and any other applicable 1157 rules, the division shall assign or enter into a contract with 1158 an arbitrator and serve a copy of the petition upon all 1159 respondents. The arbitrator shall conduct a hearing within 30 1160 days after being assigned or entering into a contract unless the 1161 petition is withdrawn or a continuance is granted for good cause 1162 shown. 1163 (e) Before or after the filing of the respondents’ answer 1164 to the petition, any party may request that the arbitrator refer 1165 the case to mediation under this section and any rules adopted 1166 by the division. Upon receipt of a request for mediation, the 1167 division shall promptly contact the parties to determine if 1168 there is agreement that mediation would be appropriate. If all 1169 parties agree, the dispute must be referred to mediation. 1170 Notwithstanding a lack of an agreement by all parties, the 1171 arbitrator may refer a dispute to mediation at any time. 1172 (f) Upon referral of a case to mediation, the parties must 1173 select a mutually acceptable mediator. To assist in the 1174 selection, the arbitrator shall provide the parties with a list 1175 of both volunteer and paid mediators that have been certified by 1176 the division under s. 718.501. If the parties are unable to 1177 agree on a mediator within the time allowed by the arbitrator, 1178 the arbitrator shall appoint a mediator from the list of 1179 certified mediators. If a case is referred to mediation, the 1180 parties shall attend a mediation conference, as scheduled by the 1181 parties and the mediator. If any party fails to attend a duly 1182 noticed mediation conference, without the permission or approval 1183 of the arbitrator or mediator, the arbitrator must impose 1184 sanctions against the party, including the striking of any 1185 pleadings filed, the entry of an order of dismissal or default 1186 if appropriate, and the award of costs and attorney fees 1187 incurred by the other parties. Unless otherwise agreed to by the 1188 parties or as provided by order of the arbitrator, a party is 1189 deemed to have appeared at a mediation conference by the 1190 physical presence of the party or its representative having full 1191 authority to settle without further consultation, provided that 1192 an association may comply by having one or more representatives 1193 present with full authority to negotiate a settlement and 1194 recommend that the board of administration ratify and approve 1195 such a settlement within 5 days from the date of the mediation 1196 conference. The parties shall share equally the expense of 1197 mediation, unless they agree otherwise. 1198 (g) The purpose of mediation as provided for by this 1199 section is to present the parties with an opportunity to resolve 1200 the underlying dispute in good faith, and with a minimum 1201 expenditure of time and resources. 1202 (h) Mediation proceedings must generally be conducted in 1203 accordance with the Florida Rules of Civil Procedure, and these 1204 proceedings are privileged and confidential to the same extent 1205 as court-ordered mediation. Persons who are not parties to the 1206 dispute are not allowed to attend the mediation conference 1207 without the consent of all parties, with the exception of 1208 counsel for the parties and corporate representatives designated 1209 to appear for a party. If the mediator declares an impasse after 1210 a mediation conference has been held, the arbitration proceeding 1211 terminates, unless all parties agree in writing to continue the 1212 arbitration proceeding, in which case the arbitrator’s decision 1213 shall be binding or nonbinding, as agreed upon by the parties; 1214 in the arbitration proceeding, the arbitrator shall not consider 1215 any evidence relating to the unsuccessful mediation except in a 1216 proceeding to impose sanctions for failure to appear at the 1217 mediation conference. If the parties do not agree to continue 1218 arbitration, the arbitrator shall enter an order of dismissal, 1219 and either party may institute a suit in a court of competent 1220 jurisdiction. The parties may seek to recover any costs and 1221 attorney fees incurred in connection with arbitration and 1222 mediation proceedings under this section as part of the costs 1223 and fees that may be recovered by the prevailing party in any 1224 subsequent litigation. 1225 (i) Arbitration shall be conducted according to rules 1226 adopted by the division. The filing of a petition for 1227 arbitration shall toll the applicable statute of limitations. 1228 (j) At the request of any party to the arbitration, the 1229 arbitrator shall issue subpoenas for the attendance of witnesses 1230 and the production of books, records, documents, and other 1231 evidence and any party on whose behalf a subpoena is issued may 1232 apply to the court for orders compelling such attendance and 1233 production. Subpoenas shall be served and shall be enforceable 1234 in the manner provided by the Florida Rules of Civil Procedure. 1235 Discovery may, in the discretion of the arbitrator, be permitted 1236 in the manner provided by the Florida Rules of Civil Procedure. 1237 Rules adopted by the division may authorize any reasonable 1238 sanctions except contempt for a violation of the arbitration 1239 procedural rules of the division or for the failure of a party 1240 to comply with a reasonable nonfinal order issued by an 1241 arbitrator which is not under judicial review. 1242 (k) The arbitration decision shall be rendered within 30 1243 days after the hearing and presented to the parties in writing. 1244 An arbitration decision is final in those disputes in which the 1245 parties have agreed to be bound. An arbitration decision is also 1246 final if a complaint for a trial de novo is not filed in a court 1247 of competent jurisdiction in which the condominium is located 1248 within 30 days. The right to file for a trial de novo entitles 1249 the parties to file a complaint in the appropriate trial court 1250 for a judicial resolution of the dispute. The prevailing party 1251 in an arbitration proceeding shall be awarded the costs of the 1252 arbitration and reasonable attorney fees in an amount determined 1253 by the arbitrator. Such an award shall include the costs and 1254 reasonable attorney fees incurred in the arbitration proceeding 1255 as well as the costs and reasonable attorney fees incurred in 1256 preparing for and attending any scheduled mediation. An 1257 arbitrator’s failure to render a written decision within 30 days 1258 after the hearing may result in the cancellation of his or her 1259 arbitration certification. 1260 (l) The party who files a complaint for a trial de novo 1261 shall be assessed the other party’s arbitration costs, court 1262 costs, and other reasonable costs, including attorney fees, 1263 investigation expenses, and expenses for expert or other 1264 testimony or evidence incurred after the arbitration hearing if 1265 the judgment upon the trial de novo is not more favorable than 1266 the arbitration decision. If the judgment is more favorable, the 1267 party who filed a complaint for trial de novo shall be awarded 1268 reasonable court costs and attorney fees. 1269 (m) Any party to an arbitration proceeding may enforce an 1270 arbitration award by filing a petition in a court of competent 1271 jurisdiction in which the condominium is located. A petition may 1272 not be granted unless the time for appeal by the filing of a 1273 complaint for trial de novo has expired. If a complaint for a 1274 trial de novo has been filed, a petition may not be granted with 1275 respect to an arbitration award that has been stayed. If the 1276 petition for enforcement is granted, the petitioner shall 1277 recover reasonable attorney fees and costs incurred in enforcing 1278 the arbitration award. A mediation settlement may also be 1279 enforced through the county or circuit court, as applicable, and 1280 any costs and fees incurred in the enforcement of a settlement 1281 agreement reached at mediation must be awarded to the prevailing 1282 party in any enforcement action. 1283 (5) PRESUIT MEDIATION.—In lieu of the initiation of 1284 nonbinding arbitration as provided in subsections (1)-(4), a 1285 party may submit a dispute to presuit mediation in accordance 1286 with s. 720.311; however, election and recall disputes are not 1287 eligible for mediation and such disputes must be arbitrated by 1288 the division or filed in a court of competent jurisdiction. 1289 (6) DISPUTES INVOLVING ELECTION IRREGULARITIES.—Every 1290 arbitration petition received by the division and required to be 1291 filed under this section challenging the legality of the 1292 election of any director of the board of administration must be 1293 handled on an expedited basis in the manner provided by the 1294 division’s rules for recall arbitration disputes. 1295 (7)(6)APPLICABILITY.—This section does not apply to a 1296 nonresidential condominium unless otherwise specifically 1297 provided for in the declaration of the nonresidential 1298 condominium. 1299 Section 9. Section 718.1265, Florida Statutes, is amended 1300 to read: 1301 718.1265 Association emergency powers.— 1302 (1) To the extent allowed by law,andunless specifically 1303 prohibited by the declaration of condominium, the articles, or 1304 the bylaws of an association, and consistent withthe provisions1305ofs. 617.0830, the board of administration, in response to 1306 damage or injury caused by or anticipated in connection with an 1307 emergency, as defined in s. 252.34(4),eventfor which a state 1308 of emergency is declared pursuant to s. 252.36 in the locale in 1309 which the condominium is located, may, but is not required to,1310 exercise the following powers: 1311 (a) Conduct board meetings, committee meetings, elections, 1312 and membership meetings, in whole or in part, by telephone, 1313 real-time videoconferencing, or similar real-time electronic or 1314 video communication with notice given as is practicable. Such 1315 notice may be given in any practicable manner, including 1316 publication, radio, United States mail, the Internet, electronic 1317 transmission, public service announcements, and conspicuous 1318 posting on the condominium property or association property or 1319 any other means the board deems reasonable under the 1320 circumstances. Notice ofboarddecisions also may be 1321 communicated as provided in this paragraph. 1322 (b) Cancel and reschedule any association meeting. 1323 (c) Name as assistant officers persons who are not 1324 directors, which assistant officers shall have the same 1325 authority as the executive officers to whom they are assistants 1326 during the state of emergency to accommodate the incapacity or 1327 unavailability of any officer of the association. 1328 (d) Relocate the association’s principal office or 1329 designate alternative principal offices. 1330 (e) Enter into agreements with local counties and 1331 municipalities to assist counties and municipalities with debris 1332 removal. 1333 (f) Implement a disaster plan or an emergency plan before, 1334 during, orimmediatelyfollowing the event for which a state of 1335 emergency is declared which may include, but is not limited to, 1336 shutting down or off elevators; electricity; water, sewer, or 1337 security systems; or air conditioners. 1338 (g) Based upon advice of emergency management officials or 1339 public health officials, or upon the advice of licensed 1340 professionals retained by or otherwise available to the board, 1341 determine any portion of the condominium property or association 1342 property unavailable for entry or occupancy by unit owners, 1343 family members, tenants, guests, agents, or invitees to protect 1344 the health, safety, or welfare of such persons. 1345 (h) Require the evacuation of the condominium property in 1346 the event of a mandatory evacuation order in the locale in which 1347 the condominium is located. Should any unit owner or other 1348 occupant of a condominium fail or refuse to evacuate the 1349 condominium property or association property where the board has 1350 required evacuation, the association shall be immune from 1351 liability or injury to persons or property arising from such 1352 failure or refusal. 1353 (i) Based upon advice of emergency management officials or 1354 public health officials, or upon the advice of licensed 1355 professionals retained by or otherwise available to the board, 1356 determine whether the condominium property, association 1357 property, or any portion thereof can be safely inhabited, 1358 accessed, or occupied. However, such determination is not 1359 conclusive as to any determination of habitability pursuant to 1360 the declaration. 1361 (j) Mitigate further damage, injury, or contagion, 1362 including taking action to contract for the removal of debris 1363 and to prevent or mitigate the spread of fungus or contagion, 1364 including, but not limited to, mold or mildew, by removing and 1365 disposing of wet drywall, insulation, carpet, cabinetry, or 1366 other fixtures on or within the condominium property, even if 1367 the unit owner is obligated by the declaration or law to insure 1368 or replace those fixtures and to remove personal property from a 1369 unit. 1370 (k) Contract, on behalf of any unit owner or owners, for 1371 items or services for which the owners are otherwise 1372 individually responsible, but which are necessary to prevent 1373 further injury, contagion, or damage to the condominium property 1374 or association property. In such event, the unit owner or owners 1375 on whose behalf the board has contracted are responsible for 1376 reimbursing the association for the actual costs of the items or 1377 services, and the association may use its lien authority 1378 provided by s. 718.116 to enforce collection of the charges. 1379 Without limitation, such items or services may include the 1380 drying of units, the boarding of broken windows or doors,and1381 the replacement of damaged air conditioners or air handlers to 1382 provide climate control in the units or other portions of the 1383 property, and the sanitizing of the condominium property or 1384 association property, as applicable. 1385 (l) Regardless of any provision to the contrary and even if 1386 such authority does not specifically appear in the declaration 1387 of condominium, articles, or bylaws of the association, levy 1388 special assessments without a vote of the owners. 1389 (m) Without unit owners’ approval, borrow money and pledge 1390 association assets as collateral to fund emergency repairs and 1391 carry out the duties of the association when operating funds are 1392 insufficient. This paragraph does not limit the general 1393 authority of the association to borrow money, subject to such 1394 restrictions as are contained in the declaration of condominium, 1395 articles, or bylaws of the association. 1396 (2) The special powers authorized under subsection (1) 1397 shall be limited to that time reasonably necessary to protect 1398 the health, safety, and welfare of the association and the unit 1399 owners and the unit owners’ family members, tenants, guests, 1400 agents, or invitees and shall be reasonably necessary to 1401 mitigate further damage, injury, or contagion and make emergency 1402 repairs. 1403 (3) Notwithstanding paragraphs (1)(f)-(i), during a state 1404 of emergency declared by executive order or proclamation of the 1405 Governor pursuant to s. 252.36, an association may not prohibit 1406 unit owners, tenants, guests, agents, or invitees of a unit 1407 owner from accessing the unit and the common elements and 1408 limited common elements appurtenant thereto for the purposes of 1409 ingress to and egress from the unit and when access is necessary 1410 in connection with: 1411 (a) The sale, lease, or other transfer of title of a unit; 1412 or 1413 (b) The habitability of the unit or for the health and 1414 safety of such person unless a governmental order or 1415 determination, or a public health directive from the Centers for 1416 Disease Control and Prevention, has been issued prohibiting such 1417 access to the unit. Any such access is subject to reasonable 1418 restrictions adopted by the association. 1419 Section 10. Subsection (3) of section 718.202, Florida 1420 Statutes, is amended to read: 1421 718.202 Sales or reservation deposits prior to closing.— 1422 (3) If the contract for sale of the condominium unit so 1423 provides, the developer may withdraw escrow funds in excess of 1424 10 percent of the purchase price from the special account 1425 required by subsection (2) when the construction of improvements 1426 has begun. He or she may use the funds for the actual costs 1427 incurred by the developer in theactualconstruction and 1428 development of the condominium property in which the unit to be 1429 sold is located. For purposes of this subsection, the term 1430 “actual costs” includes, but is not limited to, expenditures for 1431 demolition, site clearing, permit fees, impact fees, and utility 1432 reservation fees, as well as architectural, engineering, and 1433 surveying fees that directly relate to construction and 1434 development of the condominium property. However, no part of 1435 these funds may be used for salaries, commissions, or expenses 1436 of salespersons;orfor advertising, marketing, or promotional 1437 purposes; or for loan fees and costs, principal and interest on 1438 loans, attorney fees, accounting fees, or insurance costs. A 1439 contract which permits use of the advance payments for these 1440 purposes shall include the following legend conspicuously 1441 printed or stamped in boldfaced type on the first page of the 1442 contract and immediately above the place for the signature of 1443 the buyer: ANY PAYMENT IN EXCESS OF 10 PERCENT OF THE PURCHASE 1444 PRICE MADE TO DEVELOPER PRIOR TO CLOSING PURSUANT TO THIS 1445 CONTRACT MAY BE USED FOR CONSTRUCTION PURPOSES BY THE DEVELOPER. 1446 Section 11. Subsection (1) and paragraph (b) of subsection 1447 (3) of section 718.303, Florida Statutes, are amended to read: 1448 718.303 Obligations of owners and occupants; remedies.— 1449 (1) Each unit owner,eachtenant and other invitee, and 1450eachassociation is governed by, and must comply with the 1451 provisions of, this chapter, the declaration, the documents 1452 creating the association, and the association bylaws which are 1453shall be deemedexpressly incorporated into any lease of a unit. 1454 Actions at law or in equityfor damages or for injunctive1455relief, or both, for failure to comply with these provisions may 1456 be brought by the association or by a unit owner against: 1457 (a) The association. 1458 (b) A unit owner. 1459 (c) Directors designated by the developer, for actions 1460 taken by them before control of the association is assumed by 1461 unit owners other than the developer. 1462 (d) Any director who willfully and knowingly fails to 1463 comply with these provisions. 1464 (e) Any tenant leasing a unit, and any other invitee 1465 occupying a unit. 1466 1467 The prevailing party in any such action or in any action in 1468 which the purchaser claims a right of voidability based upon 1469 contractual provisions as required in s. 718.503(1)(a) is 1470 entitled to recover reasonable attorneyattorney’sfees. A unit 1471 owner prevailing in an action between the association and the 1472 unit owner under this subsectionsection, in addition to 1473 recovering his or her reasonable attorneyattorney’sfees, may 1474 recover additional amounts as determined by the court to be 1475 necessary to reimburse the unit owner for his or her share of 1476 assessments levied by the association to fund its expenses of 1477 the litigation. This relief does not exclude other remedies 1478 provided by law. Actions arising under this subsection are not 1479 consideredmay not be deemed to beactions for specific 1480 performance. 1481 (3) The association may levy reasonable fines for the 1482 failure of the owner of the unit or its occupant, licensee, or 1483 invitee to comply with any provision of the declaration, the 1484 association bylaws, or reasonable rules of the association. A 1485 fine may not become a lien against a unit. A fine may be levied 1486 by the board on the basis of each day of a continuing violation, 1487 with a single notice and opportunity for hearing before a 1488 committee as provided in paragraph (b). However, the fine may 1489 not exceed $100 per violation, or $1,000 in the aggregate. 1490 (b) A fine or suspension levied by the board of 1491 administration may not be imposed unless the board first 1492 provides at least 14 days’ written notice to the unit owner and, 1493 if applicable, any tenantoccupant, licensee, or invitee of the 1494 unit owner sought to be fined or suspended, and an opportunity 1495 for a hearing before a committee of at least three members 1496 appointed by the board who are not officers, directors, or 1497 employees of the association, or the spouse, parent, child, 1498 brother, or sister of an officer, director, or employee. The 1499 role of the committee is limited to determining whether to 1500 confirm or reject the fine or suspension levied by the board. If 1501 the committee does not approve the proposed fine or suspension 1502 by majority vote, the fine or suspension may not be imposed. If 1503 the proposed fine or suspension is approved by the committee, 1504 the fine payment is due 5 days after notice of the approved fine 1505 is provided to the unit owner and, if applicable, to any tenant, 1506 licensee, or invitee of the unit ownerthe date of the committee1507meeting at which the fine is approved. The association must 1508 provide written notice of such fine or suspension by mail or 1509 hand delivery to the unit owner and, if applicable, to any 1510 tenant, licensee, or invitee of the unit owner. 1511 Section 12. Subsection (5) is added to section 718.405, 1512 Florida Statutes, to read: 1513 718.405 Multicondominiums; multicondominium associations.— 1514 (5) This section does not prevent or restrict a 1515 multicondominium association from adopting a consolidated or 1516 combined declaration of condominium if such declaration complies 1517 with s. 718.104 and does not serve to merge the condominiums or 1518 change the legal descriptions of the condominium parcels as set 1519 forth in s. 718.109, unless accomplished in accordance with law. 1520 This section is intended to clarify existing law and applies to 1521 associations existing on July 1, 2021. 1522 Section 13. Section 718.501, Florida Statutes, is amended 1523 to read: 1524 718.501 Authority, responsibility, and duties of Division 1525 of Florida Condominiums, Timeshares, and Mobile Homes.— 1526 (1) The division may enforce and ensure compliance withthe1527provisions ofthis chapter and rules relating to the 1528 development, construction, sale, lease, ownership, operation, 1529 and management of residential condominium units. In performing 1530 its duties, the division has complete jurisdiction to 1531 investigate complaints and enforce compliance with respect to 1532 associations that are still under developer control or the 1533 control of a bulk assignee or bulk buyer pursuant to part VII of 1534 this chapter and complaints against developers, bulk assignees, 1535 or bulk buyers involving improper turnover or failure to 1536 turnover, pursuant to s. 718.301. However, after turnover has 1537 occurred, the division has jurisdiction to investigate 1538 complaints related only to financial issues, elections, and the 1539 maintenance of and unit owner access to association records 1540 underpursuant tos. 718.111(12). 1541 (a)1. The division may make necessary public or private 1542 investigations within or outside this state to determine whether 1543 any person has violated this chapter or any rule or order 1544 hereunder, to aid in the enforcement of this chapter, or to aid 1545 in the adoption of rules or forms. 1546 2. The division may submit any official written report, 1547 worksheet, or other related paper, or a duly certified copy 1548 thereof, compiled, prepared, drafted, or otherwise made by and 1549 duly authenticated by a financial examiner or analyst to be 1550 admitted as competent evidence in any hearing in which the 1551 financial examiner or analyst is available for cross-examination 1552 and attests under oath that such documents were prepared as a 1553 result of an examination or inspection conducted pursuant to 1554 this chapter. 1555 (b) The division may require or permit any person to file a 1556 statement in writing, under oath or otherwise, as the division 1557 determines, as to the facts and circumstances concerning a 1558 matter to be investigated. 1559 (c) For the purpose of any investigation under this 1560 chapter, the division director or any officer or employee 1561 designated by the division director may administer oaths or 1562 affirmations, subpoena witnesses and compel their attendance, 1563 take evidence, and require the production of any matter which is 1564 relevant to the investigation, including the existence, 1565 description, nature, custody, condition, and location of any 1566 books, documents, or other tangible things and the identity and 1567 location of persons having knowledge of relevant facts or any 1568 other matter reasonably calculated to lead to the discovery of 1569 material evidence. Upon the failure by a person to obey a 1570 subpoena or to answer questions propounded by the investigating 1571 officer and upon reasonable notice to all affected persons, the 1572 division may apply to the circuit court for an order compelling 1573 compliance. 1574 (d) Notwithstanding any remedies available to unit owners 1575 and associations, if the division has reasonable cause to 1576 believe that a violation of any provision of this chapter or 1577 related rule has occurred, the division may institute 1578 enforcement proceedings in its own name against any developer, 1579 bulk assignee, bulk buyer, association, officer, or member of 1580 the board of administration, or its assignees or agents, as 1581 follows: 1582 1. The division may permit a person whose conduct or 1583 actions may be under investigation to waive formal proceedings 1584 and enter into a consent proceeding whereby orders, rules, or 1585 letters of censure or warning, whether formal or informal, may 1586 be entered against the person. 1587 2. The division may issue an order requiring the developer, 1588 bulk assignee, bulk buyer, association, developer-designated 1589 officer, or developer-designated member of the board of 1590 administration, developer-designated assignees or agents, bulk 1591 assignee-designated assignees or agents, bulk buyer-designated 1592 assignees or agents, community association manager, or community 1593 association management firm to cease and desist from the 1594 unlawful practice and take such affirmative action as in the 1595 judgment of the division carry out the purposes of this chapter. 1596 If the division finds that a developer, bulk assignee, bulk 1597 buyer, association, officer, or member of the board of 1598 administration, or its assignees or agents, is violating or is 1599 about to violate any provision of this chapter, any rule adopted 1600 or order issued by the division, or any written agreement 1601 entered into with the division, and presents an immediate danger 1602 to the public requiring an immediate final order, it may issue 1603 an emergency cease and desist order reciting with particularity 1604 the facts underlying such findings. The emergency cease and 1605 desist order is effective for 90 days. If the division begins 1606 nonemergency cease and desist proceedings, the emergency cease 1607 and desist order remains effective until the conclusion of the 1608 proceedings under ss. 120.569 and 120.57. 1609 3. If a developer, bulk assignee, or bulk buyer, fails to 1610 pay any restitution determined by the division to be owed, plus 1611 any accrued interest at the highest rate permitted by law, 1612 within 30 days after expiration of any appellate time period of 1613 a final order requiring payment of restitution or the conclusion 1614 of any appeal thereof, whichever is later, the division must 1615 bring an action in circuit or county court on behalf of any 1616 association, class of unit owners, lessees, or purchasers for 1617 restitution, declaratory relief, injunctive relief, or any other 1618 available remedy. The division may also temporarily revoke its 1619 acceptance of the filing for the developer to which the 1620 restitution relates until payment of restitution is made. 1621 4. The division may petition the court for appointment of a 1622 receiver or conservator. If appointed, the receiver or 1623 conservator may take action to implement the court order to 1624 ensure the performance of the order and to remedy any breach 1625 thereof. In addition to all other means provided by law for the 1626 enforcement of an injunction or temporary restraining order, the 1627 circuit court may impound or sequester the property of a party 1628 defendant, including books, papers, documents, and related 1629 records, and allow the examination and use of the property by 1630 the division and a court-appointed receiver or conservator. 1631 5. The division may apply to the circuit court for an order 1632 of restitution whereby the defendant in an action brought under 1633pursuant tosubparagraph 4. is ordered to make restitution of 1634 those sums shown by the division to have been obtained by the 1635 defendant in violation of this chapter. At the option of the 1636 court, such restitution is payable to the conservator or 1637 receiver appointed underpursuant tosubparagraph 4. or directly 1638 to the persons whose funds or assets were obtained in violation 1639 of this chapter. 1640 6. The division may impose a civil penalty against a 1641 developer, bulk assignee, or bulk buyer, or association, or its 1642 assignee or agent, for any violation of this chapter or related 1643 rule. The division may impose a civil penalty individually 1644 against an officer or board member who willfully and knowingly 1645 violatesa provision ofthis chapter, adopted rule, or a final 1646 order of the division; may order the removal of such individual 1647 as an officer or from the board of administration or as an 1648 officer of the association; and may prohibit such individual 1649 from serving as an officer or on the board of a community 1650 association for a period of time. The term “willfully and 1651 knowingly” means that the division informed the officer or board 1652 member that his or her action or intended action violates this 1653 chapter, a rule adopted under this chapter, or a final order of 1654 the division and that the officer or board member refused to 1655 comply with the requirements of this chapter, a rule adopted 1656 under this chapter, or a final order of the division. The 1657 division, before initiating formal agency action under chapter 1658 120, must afford the officer or board member an opportunity to 1659 voluntarily comply, and an officer or board member who complies 1660 within 10 days is not subject to a civil penalty. A penalty may 1661 be imposed on the basis of each day of continuing violation, but 1662 the penalty for any offense may not exceed $5,000.By January 1,16631998,The division shall adopt, by rule, penalty guidelines 1664 applicable to possible violations or to categories of violations 1665 of this chapter or rules adopted by the division. The guidelines 1666 must specify a meaningful range of civil penalties for each such 1667 violation of the statute and rules and must be based upon the 1668 harm caused by the violation, the repetition of the violation, 1669 and upon such other factors deemed relevant by the division. For 1670 example, the division may consider whether the violations were 1671 committed by a developer, bulk assignee, or bulk buyer, or 1672 owner-controlled association, the size of the association, and 1673 other factors. The guidelines must designate the possible 1674 mitigating or aggravating circumstances that justify a departure 1675 from the range of penalties provided by the rules. It is the 1676 legislative intent that minor violations be distinguished from 1677 those which endanger the health, safety, or welfare of the 1678 condominium residents or other persons and that such guidelines 1679 provide reasonable and meaningful notice to the public of likely 1680 penalties that may be imposed for proscribed conduct. This 1681 subsection does not limit the ability of the division to 1682 informally dispose of administrative actions or complaints by 1683 stipulation, agreed settlement, or consent order. All amounts 1684 collected shall be deposited with the Chief Financial Officer to 1685 the credit of the Division of Florida Condominiums, Timeshares, 1686 and Mobile Homes Trust Fund. If a developer, bulk assignee, or 1687 bulk buyer fails to pay the civil penalty and the amount deemed 1688 to be owed to the association, the division shall issue an order 1689 directing that such developer, bulk assignee, or bulk buyer 1690 cease and desist from further operation until such time as the 1691 civil penalty is paid or may pursue enforcement of the penalty 1692 in a court of competent jurisdiction. If an association fails to 1693 pay the civil penalty, the division shall pursue enforcement in 1694 a court of competent jurisdiction, and the order imposing the 1695 civil penalty or the cease and desist order is not effective 1696 until 20 days after the date of such order. Any action commenced 1697 by the division shall be brought in the county in which the 1698 division has its executive offices or in the county where the 1699 violation occurred. 1700 7. If a unit owner presents the division with proof that 1701 the unit owner has requested access to official records in 1702 writing by certified mail, and that after 10 days the unit owner 1703 again made the same request for access to official records in 1704 writing by certified mail, and that more than 10 days has 1705 elapsed since the second request and the association has still 1706 failed or refused to provide access to official records as 1707 required by this chapter, the division shall issue a subpoena 1708 requiring production of the requested records where the records 1709 are kept pursuant to s. 718.112. 1710 8. In addition to subparagraph 6., the division may seek 1711 the imposition of a civil penalty through the circuit court for 1712 any violation for which the division may issue a notice to show 1713 cause under paragraph (r). The civil penalty shall be at least 1714 $500 but no more than $5,000 for each violation. The court may 1715 also award to the prevailing party court costs and reasonable 1716 attorneyattorney’sfees and, if the division prevails, may also 1717 award reasonable costs of investigation. 1718 (e) The division may prepare and disseminate a prospectus 1719 and other information to assist prospective owners, purchasers, 1720 lessees, and developers of residential condominiums in assessing 1721 the rights, privileges, and duties pertaining thereto. 1722 (f) The division may adopt rules to administer and enforce 1723the provisions ofthis chapter. 1724 (g) The division shall establish procedures for providing 1725 notice to an association and the developer, bulk assignee, or 1726 bulk buyer during the period in which the developer, bulk 1727 assignee, or bulk buyer controls the association if the division 1728 is considering the issuance of a declaratory statement with 1729 respect to the declaration of condominium or any related 1730 document governing such condominium community. 1731 (h) The division shall furnish each association that pays 1732 the fees required by paragraph (2)(a) a copy of this chapter, as 1733 amended, and the rules adopted thereto on an annual basis. 1734 (i) The division shall annually provide each association 1735 with a summary of declaratory statements and formal legal 1736 opinions relating to the operations of condominiums which were 1737 rendered by the division during the previous year. 1738 (j) The division shall provide training and educational 1739 programs for condominium association board members and unit 1740 owners. The training may, in the division’s discretion, include 1741 web-based electronic media, and live training and seminars in 1742 various locations throughout the state. The division may review 1743 and approve education and training programs for board members 1744 and unit owners offered by providers and shall maintain a 1745 current list of approved programs and providers and make such 1746 list available to board members and unit owners in a reasonable 1747 and cost-effective manner. 1748 (k) The division shall maintain a toll-free telephone 1749 number accessible to condominium unit owners. 1750 (l) The division shall develop a program to certify both 1751 volunteer and paid mediators to provide mediation of condominium 1752 disputes. The division shall provide, upon request, a list of 1753 such mediators to any association, unit owner, or other 1754 participant in alternative dispute resolutionarbitration1755 proceedings under s. 718.1255 requesting a copy of the list. The 1756 division shall include on the list of volunteer mediators only 1757 the names of persons who have received at least 20 hours of 1758 training in mediation techniques or who have mediated at least 1759 20 disputes. In order to become initially certified by the 1760 division, paid mediators must be certified by the Supreme Court 1761 to mediate court cases in county or circuit courts. However, the 1762 division may adopt, by rule, additional factors for the 1763 certification of paid mediators, which must be related to 1764 experience, education, or background. Any person initially 1765 certified as a paid mediator by the division must, in order to 1766 continue to be certified, comply with the factors or 1767 requirements adopted by rule. 1768 (m) If a complaint is made, the division must conduct its 1769 inquiry with due regard for the interests of the affected 1770 parties. Within 30 days after receipt of a complaint, the 1771 division shall acknowledge the complaint in writing and notify 1772 the complainant whether the complaint is within the jurisdiction 1773 of the division and whether additional information is needed by 1774 the division from the complainant. The division shall conduct 1775 its investigation and, within 90 days after receipt of the 1776 original complaint or of timely requested additional 1777 information, take action upon the complaint. However, the 1778 failure to complete the investigation within 90 days does not 1779 prevent the division from continuing the investigation, 1780 accepting or considering evidence obtained or received after 90 1781 days, or taking administrative action if reasonable cause exists 1782 to believe that a violation of this chapter or a rule has 1783 occurred. If an investigation is not completed within the time 1784 limits established in this paragraph, the division shall, on a 1785 monthly basis, notify the complainant in writing of the status 1786 of the investigation. When reporting its action to the 1787 complainant, the division shall inform the complainant of any 1788 right to a hearing underpursuant toss. 120.569 and 120.57. 1789 (n) Condominium association directors, officers, and 1790 employees; condominium developers; bulk assignees, bulk buyers, 1791 and community association managers; and community association 1792 management firms have an ongoing duty to reasonably cooperate 1793 with the division in any investigation underpursuant tothis 1794 section. The division shall refer to local law enforcement 1795 authorities any person whom the division believes has altered, 1796 destroyed, concealed, or removed any record, document, or thing 1797 required to be kept or maintained by this chapter with the 1798 purpose to impair its verity or availability in the department’s 1799 investigation. 1800 (o) The division may: 1801 1. Contract with agencies in this state or other 1802 jurisdictions to perform investigative functions; or 1803 2. Accept grants-in-aid from any source. 1804 (p) The division shall cooperate with similar agencies in 1805 other jurisdictions to establish uniform filing procedures and 1806 forms, public offering statements, advertising standards, and 1807 rules and common administrative practices. 1808 (q) The division shall consider notice to a developer, bulk 1809 assignee, or bulk buyer to be complete when it is delivered to 1810 the address of the developer, bulk assignee, or bulk buyer 1811 currently on file with the division. 1812 (r) In addition to its enforcement authority, the division 1813 may issue a notice to show cause, which must provide for a 1814 hearing, upon written request, in accordance with chapter 120. 1815 (s) The division shall submit to the Governor, the 1816 President of the Senate, the Speaker of the House of 1817 Representatives, and the chairs of the legislative 1818 appropriations committees an annual report that includes, but 1819 need not be limited to, the number of training programs provided 1820 for condominium association board members and unit owners, the 1821 number of complaints received by type, the number and percent of 1822 complaints acknowledged in writing within 30 days and the number 1823 and percent of investigations acted upon within 90 days in 1824 accordance with paragraph (m), and the number of investigations 1825 exceeding the 90-day requirement. The annual report must also 1826 include an evaluation of the division’s core business processes 1827 and make recommendations for improvements, including statutory 1828 changes. The report shall be submitted by September 30 following 1829 the end of the fiscal year. 1830 (2)(a) Each condominium association which operates more 1831 than two units shall pay to the division an annual fee in the 1832 amount of $4 for each residential unit in condominiums operated 1833 by the association. If the fee is not paid by March 1, the 1834 association shall be assessed a penalty of 10 percent of the 1835 amount due, and the association will not have standing to 1836 maintain or defend any action in the courts of this state until 1837 the amount due, plus any penalty, is paid. 1838 (b) All fees shall be deposited in the Division of Florida 1839 Condominiums, Timeshares, and Mobile Homes Trust Fund as 1840 provided by law. 1841 Section 14. Section 718.5014, Florida Statutes, is amended 1842 to read: 1843 718.5014 Ombudsman location.—The ombudsman shall maintain 1844 his or her principal office in aLeon County on the premises of1845the division or, if suitable space cannot be provided there, at1846anotherplace convenient to the offices of the division which 1847 will enable the ombudsman to expeditiously carry out the duties 1848 and functions of his or her office. The ombudsman may establish 1849 branch offices elsewhere in the state upon the concurrence of 1850 the Governor. 1851 Section 15. Subsection (25) of section 719.103, Florida 1852 Statutes, is amended to read: 1853 719.103 Definitions.—As used in this chapter: 1854 (25) “Unit” means a part of the cooperative property which 1855 is subject to exclusive use and possession. A unit may be 1856 improvements, land, or land and improvements together, as 1857 specified in the cooperative documents. An interest in a unit is 1858 an interest in real property. 1859 Section 16. Paragraph (c) of subsection (2) of section 1860 719.104, Florida Statutes, is amended to read: 1861 719.104 Cooperatives; access to units; records; financial 1862 reports; assessments; purchase of leases.— 1863 (2) OFFICIAL RECORDS.— 1864 (c)The official records of the association are open to 1865 inspection by any association member or the authorized 1866 representative of such member at all reasonable times. The right 1867 to inspect the records includes the right to make or obtain 1868 copies, at the reasonable expense, if any, of the association 1869 member. The association may adopt reasonable rules regarding the 1870 frequency, time, location, notice, and manner of record 1871 inspections and copying, but may not require a member to 1872 demonstrate any purpose or state any reason for the inspection. 1873 The failure of an association to provide the records within 10 1874 working days after receipt of a written request creates a 1875 rebuttable presumption that the association willfully failed to 1876 comply with this paragraph. A memberunit ownerwho is denied 1877 access to official records is entitled to the actual damages or 1878 minimum damages for the association’s willful failure to comply. 1879 The minimum damages are $50 per calendar day for up to 10 days, 1880 beginning on the 11th working day after receipt of the written 1881 request. The failure to permit inspection entitles any person 1882 prevailing in an enforcement action to recover reasonable 1883 attorney fees from the person in control of the records who, 1884 directly or indirectly, knowingly denied access to the records. 1885 Any person who knowingly or intentionally defaces or destroys 1886 accounting records that are required by this chapter to be 1887 maintained during the period for which such records are required 1888 to be maintained, or who knowingly or intentionally fails to 1889 create or maintain accounting records that are required to be 1890 created or maintained, with the intent of causing harm to the 1891 association or one or more of its members, is personally subject 1892 to a civil penalty underpursuant tos. 719.501(1)(d). The 1893 association shall maintain an adequate number of copies of the 1894 declaration, articles of incorporation, bylaws, and rules, and 1895 all amendments to each of the foregoing, as well as the question 1896 and answer sheet as described in s. 719.504 and year-end 1897 financial information required by the department, on the 1898 cooperative property to ensure their availability to members 1899unit ownersand prospective purchasers, and may charge its 1900 actual costs for preparing and furnishing these documents to 1901 those requesting the same. An association shall allow a member 1902 or his or her authorized representative to use a portable 1903 device, including a smartphone, tablet, portable scanner, or any 1904 other technology capable of scanning or taking photographs, to 1905 make an electronic copy of the official records in lieu of the 1906 association providing the member or his or her authorized 1907 representative with a copy of such records. The association may 1908 not charge a member or his or her authorized representative for 1909 the use of a portable device. Notwithstanding this paragraph, 1910 the following records shall not be accessible to membersunit1911owners: 1912 1. Any record protected by the lawyer-client privilege as 1913 described in s. 90.502 and any record protected by the work 1914 product privilege, including any record prepared by an 1915 association attorney or prepared at the attorney’s express 1916 direction which reflects a mental impression, conclusion, 1917 litigation strategy, or legal theory of the attorney or the 1918 association, and which was prepared exclusively for civil or 1919 criminal litigation or for adversarial administrative 1920 proceedings, or which was prepared in anticipation of such 1921 litigation or proceedings until the conclusion of the litigation 1922 or proceedings. 1923 2. Information obtained by an association in connection 1924 with the approval of the lease, sale, or other transfer of a 1925 unit. 1926 3. Personnel records of association or management company 1927 employees, including, but not limited to, disciplinary, payroll, 1928 health, and insurance records. For purposes of this 1929 subparagraph, the term “personnel records” does not include 1930 written employment agreements with an association employee or 1931 management company, or budgetary or financial records that 1932 indicate the compensation paid to an association employee. 1933 4. Medical records of unit owners. 1934 5. Social security numbers, driver license numbers, credit 1935 card numbers, e-mail addresses, telephone numbers, facsimile 1936 numbers, emergency contact information, addresses of a unit 1937 owner other than as provided to fulfill the association’s notice 1938 requirements, and other personal identifying information of any 1939 person, excluding the person’s name, unit designation, mailing 1940 address, property address, and any address, e-mail address, or 1941 facsimile number provided to the association to fulfill the 1942 association’s notice requirements. Notwithstanding the 1943 restrictions in this subparagraph, an association may print and 1944 distribute to unitparcelowners a directory containing the 1945 name, unitparceladdress, and all telephone numbers of each 1946 unitparcelowner. However, an owner may exclude his or her 1947 telephone numbers from the directory by so requesting in writing 1948 to the association. An owner may consent in writing to the 1949 disclosure of other contact information described in this 1950 subparagraph. The association is not liable for the inadvertent 1951 disclosure of information that is protected under this 1952 subparagraph if the information is included in an official 1953 record of the association and is voluntarily provided by an 1954 owner and not requested by the association. 1955 6. Electronic security measures that are used by the 1956 association to safeguard data, including passwords. 1957 7. The software and operating system used by the 1958 association which allow the manipulation of data, even if the 1959 owner owns a copy of the same software used by the association. 1960 The data is part of the official records of the association. 1961 Section 17. Paragraphs (b), (f), and (l) of subsection (1) 1962 of section 719.106, Florida Statutes, are amended, and 1963 subsection (3) is added to that section, to read: 1964 719.106 Bylaws; cooperative ownership.— 1965 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 1966 documents shall provide for the following, and if they do not, 1967 they shall be deemed to include the following: 1968 (b) Quorum; voting requirements; proxies.— 1969 1. Unless otherwise provided in the bylaws, the percentage 1970 of voting interests required to constitute a quorum at a meeting 1971 of the members shall be a majority of voting interests, and 1972 decisions shall be made by owners of a majority of the voting 1973 interests. Unless otherwise provided in this chapter, or in the 1974 articles of incorporation, bylaws, or other cooperative 1975 documents, and except as provided in subparagraph (d)1., 1976 decisions shall be made by owners of a majority of the voting 1977 interests represented at a meeting at which a quorum is present. 1978 2. Except as specifically otherwise provided herein, after 1979 January 1, 1992, unit owners may not vote by general proxy, but 1980 may vote by limited proxies substantially conforming to a 1981 limited proxy form adopted by the division. Limited proxies and 1982 general proxies may be used to establish a quorum. Limited 1983 proxies shall be used for votes taken to waive or reduce 1984 reserves in accordance with subparagraph (j)2., for votes taken 1985 to waive the financial reporting requirements of s. 1986 719.104(4)(b), for votes taken to amend the articles of 1987 incorporation or bylaws pursuant to this section, and for any 1988 other matter for which this chapter requires or permits a vote 1989 of the unit owners. Except as provided in paragraph (d), after 1990 January 1, 1992, no proxy, limited or general, shall be used in 1991 the election of board members. General proxies may be used for 1992 other matters for which limited proxies are not required, and 1993 may also be used in voting for nonsubstantive changes to items 1994 for which a limited proxy is required and given. Notwithstanding 1995 the provisions of this section, unit owners may vote in person 1996 at unit owner meetings. Nothing contained herein shall limit the 1997 use of general proxies or require the use of limited proxies or 1998 require the use of limited proxies for any agenda item or 1999 election at any meeting of a timeshare cooperative. 2000 3. Any proxy given shall be effective only for the specific 2001 meeting for which originally given and any lawfully adjourned 2002 meetings thereof. In no event shall any proxy be valid for a 2003 period longer than 90 days after the date of the first meeting 2004 for which it was given. Every proxy shall be revocable at any 2005 time at the pleasure of the unit owner executing it. 2006 4. A member of the board of administration or a committee 2007 may submit in writing his or her agreement or disagreement with 2008 any action taken at a meeting that the member did not attend. 2009 This agreement or disagreement may not be used as a vote for or 2010 against the action taken and may not be used for the purposes of 2011 creating a quorum. 2012 5. A board member or committee member participating in a 2013 meeting via telephone, real-time videoconferencing, or similar 2014 real-time electronic or video communication counts toward a 2015 quorum, and such member may vote as if physically presentWhen2016some or all of the board or committee members meet by telephone2017conference, those board or committee members attending by2018telephone conference may be counted toward obtaining a quorum2019and may vote by telephone. Atelephonespeaker mustshallbe 2020 usedutilizedso that the conversation of suchthose board or2021committeemembersattending by telephonemay be heard by the 2022 board or committee members attending in person, as well as by 2023 any unit owners present at a meeting. 2024 (f) Recall of board members.—Subject to s. 719.301, any 2025 member of the board of administration may be recalled and 2026 removed from office with or without cause by the vote or 2027 agreement in writing by a majority of all the voting interests. 2028 A special meeting of the voting interests to recall any member 2029 of the board of administration may be called by 10 percent of 2030 the unit owners giving notice of the meeting as required for a 2031 meeting of unit owners, and the notice shall state the purpose 2032 of the meeting. Electronic transmission may not be used as a 2033 method of giving notice of a meeting called in whole or in part 2034 for this purpose. 2035 1. If the recall is approved by a majority of all voting 2036 interests by a vote at a meeting, the recall shall be effective 2037 as provided in this paragraph. The board shall duly notice and 2038 hold a board meeting within 5 full business days after the 2039 adjournment of the unit owner meeting to recall one or more 2040 board members. At the meeting, the board shall either certify 2041 the recall, in which case such member or members shall be 2042 recalled effective immediately and shall turn over to the board 2043 within 5 full business days any and all records and property of 2044 the association in their possession, or shall proceed as set 2045 forth in subparagraph 3. 2046 2. If the proposed recall is by an agreement in writing by 2047 a majority of all voting interests, the agreement in writing or 2048 a copy thereof shall be served on the association by certified 2049 mail or by personal service in the manner authorized by chapter 2050 48 and the Florida Rules of Civil Procedure. The board of 2051 administration shall duly notice and hold a meeting of the board 2052 within 5 full business days after receipt of the agreement in 2053 writing. At the meeting, the board shall either certify the 2054 written agreement to recall members of the board, in which case 2055 such members shall be recalled effective immediately and shall 2056 turn over to the board, within 5 full business days, any and all 2057 records and property of the association in their possession, or 2058 proceed as described in subparagraph 3. 2059 3. If the board determines not to certify the written 2060 agreement to recall members of the board, or does not certify 2061 the recall by a vote at a meeting, the board shall, within 5 2062 full business days after the board meeting, file with the 2063 division a petition for binding arbitration underpursuant to2064the procedures ofs. 719.1255 or file an action with a court of 2065 competent jurisdiction. For purposes of this paragraph, the unit 2066 owners who voted at the meeting or who executed the agreement in 2067 writing shall constitute one party under the petition for 2068 arbitration or in a court action. If the arbitrator or court 2069 certifies the recall as to any member of the board, the recall 2070 isshall beeffective upon the mailing of the final order of 2071 arbitration to the association or the final order of the court. 2072 If the association fails to comply with the order of the court 2073 or the arbitrator, the division may take action underpursuant2074tos. 719.501. Any member so recalled shall deliver to the board 2075 any and all records and property of the association in the 2076 member’s possession within 5 full business days after the 2077 effective date of the recall. 2078 4. If the board fails to duly notice and hold a board 2079 meeting within 5 full business days after service of an 2080 agreement in writing or within 5 full business days after the 2081 adjournment of the unit owner recall meeting, the recall is 2082shall bedeemed effective and the board members so recalled 2083 shall immediately turn over to the board any and all records and 2084 property of the association. 2085 5. If the board fails to duly notice and hold the required 2086 meeting or fails to file the required petition or action, the 2087 unit owner representative may file a petition underpursuant to2088 s. 719.1255 or file an action in a court of competent 2089 jurisdiction challenging the board’s failure to act. The 2090 petition or action must be filed within 60 days after the 2091 expiration of the applicable 5-full-business-day period. The 2092 review of a petition or action under this subparagraph is 2093 limited to the sufficiency of service on the board and the 2094 facial validity of the written agreement or ballots filed. 2095 6. If a vacancy occurs on the board as a result of a recall 2096 and less than a majority of the board members are removed, the 2097 vacancy may be filled by the affirmative vote of a majority of 2098 the remaining directors, notwithstanding any provision to the 2099 contrary contained in this chapter. If vacancies occur on the 2100 board as a result of a recall and a majority or more of the 2101 board members are removed, the vacancies shall be filled in 2102 accordance with procedural rules to be adopted by the division, 2103 which rules need not be consistent with this chapter. The rules 2104 must provide procedures governing the conduct of the recall 2105 election as well as the operation of the association during the 2106 period after a recall but before the recall election. 2107 7. A board member who has been recalled may file a petition 2108 underpursuant tos. 719.1255 or file an action in a court of 2109 competent jurisdiction challenging the validity of the recall. 2110 The petition or action must be filed within 60 days after the 2111 recall is deemed certified. The association and the unit owner 2112 representative shall be named as the respondents. 2113 8. The division or court may not accept for filing a recall 2114 petition or action, whether filed underpursuant tosubparagraph 2115 1., subparagraph 2., subparagraph 5., or subparagraph 7. and 2116 regardless of whether the recall was certified, when there are 2117 60 or fewer days until the scheduled reelection of the board 2118 member sought to be recalled or when 60 or fewer days have not 2119 elapsed since the election of the board member sought to be 2120 recalled. 2121 (l) Alternative dispute resolutionArbitration.—There shall 2122 be a provision for alternative dispute resolutionmandatory2123nonbinding arbitrationof internal disputes arising from the 2124 operation of the cooperative in accordance with s. 719.1255. 2125 (3) GENERALLY.—The association may extinguish a 2126 discriminatory restriction as provided under s. 712.065. 2127 Section 18. Section 719.128, Florida Statutes, is amended 2128 to read: 2129 719.128 Association emergency powers.— 2130 (1) To the extent allowed by law, unless specifically 2131 prohibited by the cooperative documents, and consistent with s. 2132 617.0830, the board of administration, in response to damage or 2133 injury caused by or anticipated in connection with an emergency, 2134 as defined in s. 252.34(4),eventfor which a state of emergency 2135 is declared pursuant to s. 252.36 in the area encompassed by the 2136 cooperative, may exercise the following powers: 2137 (a) Conduct board meetings, committee meetings, elections, 2138 or membership meetings, in whole or in part, by telephone, real 2139 time videoconferencing, or similar real-time electronic or video 2140 communication after notice of the meetings and board decisions 2141 is provided in as practicable a manner as possible, including 2142 via publication, radio, United States mail, the Internet, 2143 electronic transmission, public service announcements, 2144 conspicuous posting on the cooperative property, or any other 2145 means the board deems appropriate under the circumstances. 2146 Notice of decisions may also be communicated as provided in this 2147 paragraph. 2148 (b) Cancel and reschedule an association meeting. 2149 (c) Designate assistant officers who are not directors. If 2150 the executive officer is incapacitated or unavailable, the 2151 assistant officer has the same authority during the state of 2152 emergency as the executive officer he or she assists. 2153 (d) Relocate the association’s principal office or 2154 designate an alternative principal office. 2155 (e) Enter into agreements with counties and municipalities 2156 to assist counties and municipalities with debris removal. 2157 (f) Implement a disaster or an emergency plan before, 2158 during, orimmediatelyfollowing the event for which a state of 2159 emergency is declared, which may include turning on or shutting 2160 off elevators; electricity; water, sewer, or security systems; 2161 or air conditioners for association buildings. 2162 (g) Based upon the advice of emergency management officials 2163 or public health officials, or upon the advice of licensed 2164 professionals retained by or otherwise available to the board of 2165 administration, determine any portion of the cooperative 2166 property unavailable for entry or occupancy by unit owners or 2167 their family members, tenants, guests, agents, or invitees to 2168 protect their health, safety, or welfare. 2169 (h) Based upon the advice of emergency management officials 2170 or public health officials, or upon the advice of licensed 2171 professionals retained by or otherwise available to the board of 2172 administration, determine whether the cooperative property or 2173 any portion thereof can be safely inhabited or occupied. 2174 However, such determination is not conclusive as to any 2175 determination of habitability pursuant to the cooperative 2176 documentsdeclaration. 2177 (i) Require the evacuation of the cooperative property in 2178 the event of a mandatory evacuation order in the area where the 2179 cooperative is located or prohibit or restrict access to the 2180 cooperative property in the event of a public health threat. If 2181 a unit owner or other occupant of a cooperative fails to 2182 evacuate the cooperative property for which the board has 2183 required evacuation, the association is immune from liability 2184 for injury to persons or property arising from such failure. 2185 (j) Mitigate further damage, injury, or contagion, 2186 including taking action to contract for the removal of debris 2187 and to prevent or mitigate the spread of fungus, including mold 2188 or mildew, by removing and disposing of wet drywall, insulation, 2189 carpet, cabinetry, or other fixtures on or within the 2190 cooperative property, regardless of whether the unit owner is 2191 obligated by the cooperative documentsdeclarationor law to 2192 insure or replace those fixtures and to remove personal property 2193 from a unit or to sanitize the cooperative property. 2194 (k) Contract, on behalf of a unit owner, for items or 2195 services for which the owner is otherwise individually 2196 responsible, but which are necessary to prevent further injury, 2197 contagion, or damage to the cooperative property. In such event, 2198 the unit owner on whose behalf the board has contracted is 2199 responsible for reimbursing the association for the actual costs 2200 of the items or services, and the association may use its lien 2201 authority provided by s. 719.108 to enforce collection of the 2202 charges. Such items or services may include the drying of the 2203 unit, the boarding of broken windows or doors,andthe 2204 replacement of a damaged air conditioner or air handler to 2205 provide climate control in the unit or other portions of the 2206 property, and the sanitizing of the cooperative property. 2207 (l) Notwithstanding a provision to the contrary, and 2208 regardless of whether such authority does not specifically 2209 appear in the cooperative documents, levy special assessments 2210 without a vote of the owners. 2211 (m) Without unit owners’ approval, borrow money and pledge 2212 association assets as collateral to fund emergency repairs and 2213 carry out the duties of the association if operating funds are 2214 insufficient. This paragraph does not limit the general 2215 authority of the association to borrow money, subject to such 2216 restrictions contained in the cooperative documents. 2217 (2) The authority granted under subsection (1) is limited 2218 to that time reasonably necessary to protect the health, safety, 2219 and welfare of the association and the unit owners and their 2220 family members, tenants, guests, agents, or invitees, and to 2221 mitigate further damage, injury, or contagion and make emergency 2222 repairs. 2223 (3) Notwithstanding paragraphs (1)(f)-(i), during a state 2224 of emergency declared by executive order or proclamation of the 2225 Governor pursuant to s. 252.36, an association may not prohibit 2226 unit owners, tenants, guests, agents, or invitees of a unit 2227 owner from accessing the common elements and limited common 2228 elements appurtenant thereto for the purposes of ingress to and 2229 egress from the unit when access is necessary in connection 2230 with: 2231 (a) The sale, lease, or other transfer of title of a unit; 2232 or 2233 (b) The habitability of the unit or for the health and 2234 safety of such person unless a governmental order or 2235 determination, or a public health directive from the Centers for 2236 Disease Control and Prevention, has been issued prohibiting such 2237 access to the unit. Any such access is subject to reasonable 2238 restrictions adopted by the association. 2239 Section 19. Subsection (8) of section 720.301, Florida 2240 Statutes, is amended to read: 2241 720.301 Definitions.—As used in this chapter, the term: 2242 (8) “Governing documents” means: 2243 (a) The recorded declaration of covenants for a community 2244 and all duly adopted and recorded amendments, supplements, and 2245 recorded exhibits thereto; and 2246 (b) The articles of incorporation and bylaws of the 2247 homeowners’ association and any duly adopted amendments thereto;2248and2249(c) Rules and regulations adopted under the authority of2250the recorded declaration, articles of incorporation, or bylaws2251and duly adopted amendments thereto. 2252 Section 20. Present paragraph (l) of subsection (4) of 2253 section 720.303, Florida Statutes, is redesignated as paragraph 2254 (m) and amended, a new paragraph (l) is added to that 2255 subsection, and paragraph (c) of subsection (2), paragraph (c) 2256 of subsection (5), paragraphs (c) and (d) of subsection (6), and 2257 paragraphs (b), (d), (g), (k), and (l) of subsection (10) are 2258 amended, to read: 2259 720.303 Association powers and duties; meetings of board; 2260 official records; budgets; financial reporting; association 2261 funds; recalls.— 2262 (2) BOARD MEETINGS.— 2263 (c) The bylaws shall provide the following for giving 2264 notice to parcel owners and members of all board meetings and, 2265 if they do not do so, shall be deemed to include the following: 2266 1. Notices of all board meetings must be posted in a 2267 conspicuous place in the community at least 48 hours in advance 2268 of a meeting, except in an emergency. In the alternative, if 2269 notice is not posted in a conspicuous place in the community, 2270 notice of each board meeting must be mailed or delivered to each 2271 member at least 7 days before the meeting, except in an 2272 emergency. Notwithstanding this general notice requirement, for 2273 communities with more than 100 members, the association bylaws 2274 may provide for a reasonable alternative to posting or mailing 2275 of notice for each board meeting, including publication of 2276 notice, provision of a schedule of board meetings, or the 2277 conspicuous posting and repeated broadcasting of the notice on a 2278 closed-circuit cable television system serving the homeowners’ 2279 association. However, if broadcast notice is used in lieu of a 2280 notice posted physically in the community, the notice must be 2281 broadcast at least four times every broadcast hour of each day 2282 that a posted notice is otherwise required. When broadcast 2283 notice is provided, the notice and agenda must be broadcast in a 2284 manner and for a sufficient continuous length of time so as to 2285 allow an average reader to observe the notice and read and 2286 comprehend the entire content of the notice and the agenda. In 2287 addition to any of the authorized means of providing notice of a 2288 meeting of the board, the association may, by rule, adopt a 2289 procedure for conspicuously posting the meeting notice and the 2290 agenda on the association’s website or an application that can 2291 be downloaded on a mobile device for at least the minimum period 2292 of time for which a notice of a meeting is also required to be 2293 physically posted on the association property. Any rule adopted 2294 must, in addition to other matters, include a requirement that 2295 the association send an electronic notice to members whose e 2296 mail addresses are included in the association’s official 2297 records in the same manner as is required for a notice of a 2298 meeting of the members. Such notice must include a hyperlink to 2299 the website or such mobile application on which the meeting 2300 notice is posted. The association may provide notice by 2301 electronic transmission in a manner authorized by law for 2302 meetings of the board of directors, committee meetings requiring 2303 notice under this section, and annual and special meetings of 2304 the members to any member who has provided a facsimile number or 2305 e-mail address to the association to be used for such purposes; 2306 however, a member must consent in writing to receiving notice by 2307 electronic transmission. 2308 2. An assessment may not be levied at a board meeting 2309 unless the notice of the meeting includes a statement that 2310 assessments will be considered and the nature of the 2311 assessments. Written notice of any meeting at which special 2312 assessments will be considered or at which amendments to rules 2313 regarding parcel use will be considered must be mailed, 2314 delivered, or electronically transmitted to the members and 2315 parcel owners and posted conspicuously on the property or 2316 broadcast on closed-circuit cable television not less than 14 2317 days before the meeting. 2318 3. Directors may not vote by proxy or by secret ballot at 2319 board meetings, except that secret ballots may be used in the 2320 election of officers. This subsection also applies to the 2321 meetings of any committee or other similar body, when a final 2322 decision will be made regarding the expenditure of association 2323 funds, and to any body vested with the power to approve or 2324 disapprove architectural decisions with respect to a specific 2325 parcel of residential property owned by a member of the 2326 community. 2327 (4) OFFICIAL RECORDS.—The association shall maintain each 2328 of the following items, when applicable, which constitute the 2329 official records of the association: 2330 (l) Ballots, sign-in sheets, voting proxies, and all other 2331 papers and electronic records relating to voting by parcel 2332 owners, which must be maintained for at least 1 year after the 2333 date of the election, vote, or meeting. 2334 (m)(l)All other written records of the association not 2335 specifically included in this subsectionthe foregoingwhich are 2336 related to the operation of the association. 2337 (5) INSPECTION AND COPYING OF RECORDS.—The official records 2338 shall be maintained within the state for at least 7 years and 2339 shall be made available to a parcel owner for inspection or 2340 photocopying within 45 miles of the community or within the 2341 county in which the association is located within 10 business 2342 days after receipt by the board or its designee of a written 2343 request. This subsection may be complied with by having a copy 2344 of the official records available for inspection or copying in 2345 the community or, at the option of the association, by making 2346 the records available to a parcel owner electronically via the 2347 Internet or by allowing the records to be viewed in electronic 2348 format on a computer screen and printed upon request. If the 2349 association has a photocopy machine available where the records 2350 are maintained, it must provide parcel owners with copies on 2351 request during the inspection if the entire request is limited 2352 to no more than 25 pages. An association shall allow a member or 2353 his or her authorized representative to use a portable device, 2354 including a smartphone, tablet, portable scanner, or any other 2355 technology capable of scanning or taking photographs, to make an 2356 electronic copy of the official records in lieu of the 2357 association’s providing the member or his or her authorized 2358 representative with a copy of such records. The association may 2359 not charge a fee to a member or his or her authorized 2360 representative for the use of a portable device. 2361 (c) The association may adopt reasonable written rules 2362 governing the frequency, time, location, notice, records to be 2363 inspected, and manner of inspections, but may not require a 2364 parcel owner to demonstrate any proper purpose for the 2365 inspection, state any reason for the inspection, or limit a 2366 parcel owner’s right to inspect records to less than one 8-hour 2367 business day per month. The association may impose fees to cover 2368 the costs of providing copies of the official records, including 2369 the costs of copying and the costs required for personnel to 2370 retrieve and copy the records if the time spent retrieving and 2371 copying the records exceeds one-half hour and if the personnel 2372 costs do not exceed $20 per hour. Personnel costs may not be 2373 charged for records requests that result in the copying of 25 or 2374 fewer pages. The association may charge up to 25 cents per page 2375 for copies made on the association’s photocopier. If the 2376 association does not have a photocopy machine available where 2377 the records are kept, or if the records requested to be copied 2378 exceed 25 pages in length, the association may have copies made 2379 by an outside duplicating service and may charge the actual cost 2380 of copying, as supported by the vendor invoice. The association 2381 shall maintain an adequate number of copies of the recorded 2382 governing documents, to ensure their availability to members and 2383 prospective members. Notwithstanding this paragraph, the 2384 following records are not accessible to members or parcel 2385 owners: 2386 1. Any record protected by the lawyer-client privilege as 2387 described in s. 90.502 and any record protected by the work 2388 product privilege, including, but not limited to, a record 2389 prepared by an association attorney or prepared at the 2390 attorney’s express direction which reflects a mental impression, 2391 conclusion, litigation strategy, or legal theory of the attorney 2392 or the association and which was prepared exclusively for civil 2393 or criminal litigation or for adversarial administrative 2394 proceedings or which was prepared in anticipation of such 2395 litigation or proceedings until the conclusion of the litigation 2396 or proceedings. 2397 2. Information obtained by an association in connection 2398 with the approval of the lease, sale, or other transfer of a 2399 parcel. 2400 3. Information an association obtains in a gated community 2401 in connection with guests’ visits to parcel owners or community 2402 residents. 2403 4. Personnel records of association or management company 2404 employees, including, but not limited to, disciplinary, payroll, 2405 health, and insurance records. For purposes of this 2406 subparagraph, the term “personnel records” does not include 2407 written employment agreements with an association or management 2408 company employee or budgetary or financial records that indicate 2409 the compensation paid to an association or management company 2410 employee. 2411 5.4.Medical records of parcel owners or community 2412 residents. 2413 6.5.Social security numbers, driver license numbers, 2414 credit card numbers, electronic mailing addresses, telephone 2415 numbers, facsimile numbers, emergency contact information, any 2416 addresses for a parcel owner other than as provided for 2417 association notice requirements, and other personal identifying 2418 information of any person, excluding the person’s name, parcel 2419 designation, mailing address, and property address. 2420 Notwithstanding the restrictions in this subparagraph, an 2421 association may print and distribute to parcel owners a 2422 directory containing the name, parcel address, and all telephone 2423 numbers of each parcel owner. However, an owner may exclude his 2424 or her telephone numbers from the directory by so requesting in 2425 writing to the association. An owner may consent in writing to 2426 the disclosure of other contact information described in this 2427 subparagraph. The association is not liable for the disclosure 2428 of information that is protected under this subparagraph if the 2429 information is included in an official record of the association 2430 and is voluntarily provided by an owner and not requested by the 2431 association. 2432 7.6.Any electronic security measure that is used by the 2433 association to safeguard data, including passwords. 2434 8.7.The software and operating system used by the 2435 association which allows the manipulation of data, even if the 2436 owner owns a copy of the same software used by the association. 2437 The data is part of the official records of the association. 2438 (6) BUDGETS.— 2439 (c)1. If the budget of the association does not provide for 2440 reserve accounts underpursuant toparagraph (d), or the 2441 declaration of covenants, articles, or bylaws do not obligate 2442 the developer to create reserves, and the association is 2443 responsible for the repair and maintenance of capital 2444 improvements that may result in a special assessment if reserves 2445 are not provided or not fully funded, each financial report for 2446 the preceding fiscal year required by subsection (7) must 2447 contain the following statement in conspicuous type: 2448 2449 THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR FULLY FUNDED 2450 RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED 2451 MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS REGARDING 2452 THOSE ITEMS. OWNERS MAY ELECT TO PROVIDE FOR FULLY FUNDED 2453 RESERVE ACCOUNTS UNDERPURSUANT TOSECTION 720.303(6), FLORIDA 2454 STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL 2455 VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A 2456 MEETING OR BY WRITTEN CONSENT. 2457 2. If the budget of the association does provide for 2458 funding accounts for deferred expenditures, including, but not 2459 limited to, funds for capital expenditures and deferred 2460 maintenance, but such accounts are not created or established 2461 underpursuant toparagraph (d), each financial report for the 2462 preceding fiscal year required under subsection (7) must also 2463 contain the following statement in conspicuous type: 2464 THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY 2465 DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES 2466 AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED 2467 IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED 2468 TO PROVIDE FOR RESERVE ACCOUNTS UNDERPURSUANT TOSECTION 2469 720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE 2470 RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR 2471 ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE. 2472 (d) An association is deemed to have provided for reserve 2473 accountsif reserve accounts have been initially established by2474the developer or if the membership of the association2475affirmatively elects to provide for reserves. If reserve2476accounts are established by the developer, the budget must2477designate the components for which the reserve accounts may be2478used. If reserve accounts are not initially provided by the2479developer, the membership of the association may elect to do so2480 upon the affirmative approval of a majority of the total voting 2481 interests of the association. Such approval may be obtained by 2482 vote of the members at a duly called meeting of the membership 2483 or by the written consent of a majority of the total voting 2484 interests of the association. The approval action of the 2485 membership must state that reserve accounts shall be provided 2486 for in the budget and must designate the components for which 2487 the reserve accounts are to be established. Upon approval by the 2488 membership, the board of directors shall include the required 2489 reserve accounts in the budget in the next fiscal year following 2490 the approval and each year thereafter. Once established as 2491 provided in this subsection, the reserve accounts must be funded 2492 or maintained or have their funding waived in the manner 2493 provided in paragraph (f). 2494 (10) RECALL OF DIRECTORS.— 2495 (b)1. Board directors may be recalled by an agreement in 2496 writing or by written ballot without a membership meeting. The 2497 agreement in writing or the written ballots, or a copy thereof, 2498 shall be served on the association by certified mail or by 2499 personal service in the manner authorized by chapter 48 and the 2500 Florida Rules of Civil Procedure. 2501 2. The board shall duly notice and hold a meeting of the 2502 board within 5 full business days after receipt of the agreement 2503 in writing or written ballots. At the meeting, the board shall 2504 either certify the written ballots or written agreement to 2505 recall a director or directors of the board, in which case such 2506 director or directors shall be recalled effective immediately 2507 and shall turn over to the board within 5 full business days any 2508 and all records and property of the association in their 2509 possession, or proceed as described in paragraph (d). 2510 3. When it is determined by the department pursuant to 2511 binding arbitration proceedings or the court in an action filed 2512 in a court of competent jurisdiction that an initial recall 2513 effort was defective, written recall agreements or written 2514 ballots used in the first recall effort and not found to be 2515 defective may be reused in one subsequent recall effort. 2516 However, in no event is a written agreement or written ballot 2517 valid for more than 120 days after it has been signed by the 2518 member. 2519 4. Any rescission or revocation of a member’s written 2520 recall ballot or agreement must be in writing and, in order to 2521 be effective, must be delivered to the association before the 2522 association is served with the written recall agreements or 2523 ballots. 2524 5. The agreement in writing or ballot shall list at least 2525 as many possible replacement directors as there are directors 2526 subject to the recall, when at least a majority of the board is 2527 sought to be recalled; the person executing the recall 2528 instrument may vote for as many replacement candidates as there 2529 are directors subject to the recall. 2530 (d) If the board determines not to certify the written 2531 agreement or written ballots to recall a director or directors 2532 of the board or does not certify the recall by a vote at a 2533 meeting, the board shall, within 5 full business days after the 2534 meeting, file an action with a court of competent jurisdiction 2535 or file with the department a petition for binding arbitration 2536 underpursuant tothe applicable procedures in ss. 718.112(2)(j) 2537 and 718.1255 and the rules adopted thereunder. For the purposes 2538 of this section, the members who voted at the meeting or who 2539 executed the agreement in writing shall constitute one party 2540 under the petition for arbitration or in a court action. If the 2541 arbitrator or court certifies the recall as to any director or 2542 directors of the board, the recall will be effective upon the 2543 final order of the court or the mailing of the final order of 2544 arbitration to the association. The director or directors so 2545 recalled shall deliver to the board any and all records of the 2546 association in their possession within 5 full business days 2547 after the effective date of the recall. 2548 (g) If the board fails to duly notice and hold the required 2549 meeting or fails to file the required petition or action, the 2550 parcelunitowner representative may file a petition or a court 2551 action underpursuant tos. 718.1255 challenging the board’s 2552 failure to act. The petition or action must be filed within 60 2553 days after the expiration of the applicable 5-full-business-day 2554 period. The review of a petition or action under this paragraph 2555 is limited to the sufficiency of service on the board and the 2556 facial validity of the written agreement or ballots filed. 2557 (k) A board member who has been recalled may file an action 2558 with a court of competent jurisdiction or a petition under 2559pursuant toss. 718.112(2)(j) and 718.1255 and the rules adopted 2560 challenging the validity of the recall. The petition or action 2561 must be filed within 60 days after the recall is deemed 2562 certified. The association and the parcelunitowner 2563 representative shall be named as respondents. 2564 (l) The division or a court of competent jurisdiction may 2565 not accept for filing a recall petition or action, whether filed 2566 underpursuant toparagraph (b), paragraph (c), paragraph (g), 2567 or paragraph (k) and regardless of whether the recall was 2568 certified, when there are 60 or fewer days until the scheduled 2569 reelection of the board member sought to be recalled or when 60 2570 or fewer days have not elapsed since the election of the board 2571 member sought to be recalled. 2572 Section 21. Subsection (2) of section 720.305, Florida 2573 Statutes, is amended to read: 2574 720.305 Obligations of members; remedies at law or in 2575 equity; levy of fines and suspension of use rights.— 2576 (2) AnTheassociation may levy reasonable fines. A fine 2577 may not exceed $100 per violation against any member or any 2578 member’s tenant, guest, or invitee for the failure of the owner 2579 of the parcel or its occupant, licensee, or invitee to comply 2580 with any provision of the declaration, the association bylaws, 2581 or reasonable rules of the association unless otherwise provided 2582 in the governing documents. A fine may be levied by the board 2583 for each day of a continuing violation, with a single notice and 2584 opportunity for hearing, except that the fine may not exceed 2585 $1,000 in the aggregate unless otherwise provided in the 2586 governing documents. A fine of less than $1,000 may not become a 2587 lien against a parcel. In any action to recover a fine, the 2588 prevailing party is entitled to reasonable attorney fees and 2589 costs from the nonprevailing party as determined by the court. 2590 (a) An association may suspend, for a reasonable period of 2591 time, the right of a member, or a member’s tenant, guest, or 2592 invitee, to use common areas and facilities for the failure of 2593 the owner of the parcel or its occupant, licensee, or invitee to 2594 comply with any provision of the declaration, the association 2595 bylaws, or reasonable rules of the association. This paragraph 2596 does not apply to that portion of common areas used to provide 2597 access or utility services to the parcel. A suspension may not 2598 prohibit an owner or tenant of a parcel from having vehicular 2599 and pedestrian ingress to and egress from the parcel, including, 2600 but not limited to, the right to park. 2601 (b) A fine or suspension levied by the board of 2602 administration may not be imposed unless the board first 2603 provides at least 14 days’ notice to the parcel owner and, if 2604 applicable, any occupant, licensee, or invitee of the parcel 2605 owner, sought to be fined or suspended and an opportunity for a 2606 hearing before a committee of at least three members appointed 2607 by the board who are not officers, directors, or employees of 2608 the association, or the spouse, parent, child, brother, or 2609 sister of an officer, director, or employee. If the committee, 2610 by majority vote, does not approve a proposed fine or 2611 suspension, the proposed fine or suspension may not be imposed. 2612 The role of the committee is limited to determining whether to 2613 confirm or reject the fine or suspension levied by the board. If 2614 the proposed fine or suspension levied by the board is approved 2615 by the committee, the fine payment is due 5 days after notice of 2616 the approved fine is provided to the parcel owner and, if 2617 applicable, to any occupant, licensee, or invitee of the parcel 2618 ownerthe date of the committee meeting at which the fine is2619approved. The association must provide written notice of such 2620 fine or suspension by mail or hand delivery to the parcel owner 2621 and, if applicable, to any occupanttenant, licensee, or invitee 2622 of the parcel owner. 2623 Section 22. Paragraph (g) of subsection (1) and paragraph 2624 (c) of subsection (9) of section 720.306, Florida Statutes, are 2625 amended, and paragraph (h) is added to subsection (1) of that 2626 section, to read: 2627 720.306 Meetings of members; voting and election 2628 procedures; amendments.— 2629 (1) QUORUM; AMENDMENTS.— 2630 (g) A notice required under this section must be mailed or 2631 delivered to the address identified as the parcel owner’s 2632 mailing address in the official records of the association as 2633 required under s. 720.303(4)on the property appraiser’s website2634for the county in which the parcel is located, or electronically 2635 transmitted in a manner authorized by the association if the 2636 parcel owner has consented, in writing, to receive notice by 2637 electronic transmission. 2638 (h)1. Except as provided herein, an amendment to a 2639 governing document, rule, or regulation enacted after July 1, 2640 2021, which prohibits a parcel owner from renting his or her 2641 parcel, alters the authorized duration of a rental term, or 2642 specifies or limits the number of times that a parcel owner may 2643 rent his or her parcel during a specified period, applies only 2644 to a parcel owner who consents, individually or through a 2645 representative, to the amendment, and to parcel owners who 2646 acquire title to a parcel after the effective date of the 2647 amendment. 2648 2. Notwithstanding subparagraph 1., an association may 2649 amend its governing documents to prohibit or regulate rental 2650 durations that are for terms of less than 6 months and to 2651 prohibit a parcel owner from renting his or parcel more than 2652 three times in a calendar year. Such amendments apply to all 2653 parcel owners. 2654 3. This paragraph does not affect the amendment 2655 restrictions for associations of 15 or fewer parcel owners as 2656 provided in s. 720.303(1). 2657 4. For purposes of this paragraph, a change of ownership 2658 does not occur when a parcel owner conveys the parcel to an 2659 affiliated entity, when beneficial ownership of the parcel does 2660 not change, or when an heir becomes a parcel owner. For purposes 2661 of this paragraph, the term “affiliated entity” means an entity 2662 that controls, is controlled by, or is under common control with 2663 the parcel owner or that becomes a parent or successor entity by 2664 reason of transfer, merger, consolidation, public offering, 2665 reorganization, dissolution or sale of stock, or transfer of 2666 membership partnership interests. For a conveyance to be 2667 recognized as one made to an affiliated entity, the entity must 2668 furnish the association a document certifying that this 2669 paragraph applies, as well as providing any organizational 2670 documents for the parcel owner and the affiliated entity that 2671 support the representations in the certificate, as requested by 2672 the association. 2673 (9) ELECTIONS AND BOARD VACANCIES.— 2674 (c) Any election dispute between a member and an 2675 association must be submitted tomandatorybinding arbitration 2676 with the division or filed with a court of competent 2677 jurisdiction. Such proceedings that are submitted to binding 2678 arbitration with the division must be conducted in the manner 2679 provided by s. 718.1255 and the procedural rules adopted by the 2680 division. Unless otherwise provided in the bylaws, any vacancy 2681 occurring on the board before the expiration of a term may be 2682 filled by an affirmative vote of the majority of the remaining 2683 directors, even if the remaining directors constitute less than 2684 a quorum, or by the sole remaining director. In the alternative, 2685 a board may hold an election to fill the vacancy, in which case 2686 the election procedures must conform to the requirements of the 2687 governing documents. Unless otherwise provided in the bylaws, a 2688 board member appointed or elected under this section is 2689 appointed for the unexpired term of the seat being filled. 2690 Filling vacancies created by recall is governed by s. 2691 720.303(10) and rules adopted by the division. 2692 Section 23. Subsections (1) and (2) of section 720.307, 2693 Florida Statutes, are amended to read: 2694 720.307 Transition of association control in a community. 2695 With respect to homeowners’ associations: 2696 (1) Members other than the developer are entitled to elect 2697 at least a majority of the members of the board of directors of 2698 the homeowners’ association when the earlier of the following 2699 events occurs: 2700 (a) Three months after 90 percent of the parcels in all 2701 phases of the community that will ultimately be operated by the 2702 homeowners’ association have been conveyed to members other than 2703 the developer; 2704 (b) Such other percentage of the parcels has been conveyed 2705 to members, or such other date or event has occurred, as is set 2706 forth in the governing documents in order to comply with the 2707 requirements of any governmentally chartered entity with regard 2708 to the mortgage financing of parcels; 2709 (c) Upon the developer abandoning or deserting its 2710 responsibility to maintain and complete the amenities or 2711 infrastructure as disclosed in the governing documents. There is 2712 a rebuttable presumption that the developer has abandoned and 2713 deserted the property if the developer has unpaid assessments or 2714 guaranteed amounts under s. 720.308 for a period of more than 2 2715 years; 2716 (d) Upon the developer filing a petition seeking protection 2717 under chapter 7 of the federal Bankruptcy Code; 2718 (e) Upon the developer losing title to the property through 2719 a foreclosure action or the transfer of a deed in lieu of 2720 foreclosure, unless the successor owner has accepted an 2721 assignment of developer rights and responsibilities first 2722 arising after the date of such assignment; or 2723 (f) Upon a receiver for the developer being appointed by a 2724 circuit court and not being discharged within 30 days after such 2725 appointment, unless the court determines within 30 days after 2726 such appointment that transfer of control would be detrimental 2727 to the association or its members. 2728 2729 For purposes of this section, the term “members other than the 2730 developer” shall not include builders, contractors, or others 2731 who purchase a parcel for the purpose of constructing 2732 improvements thereon for resale. 2733 (2) Members other than the developer are entitled to elect 2734 at least one member of the board of directors of the homeowners’ 2735 association if 50 percent of the parcels in all phases of the 2736 community which will ultimately be operated by the association 2737 have been conveyed to members other than the developer. 2738 Section 24. Subsection (1) of section 720.311, Florida 2739 Statutes, is amended to read: 2740 720.311 Dispute resolution.— 2741 (1) The Legislature finds that alternative dispute 2742 resolution has made progress in reducing court dockets and 2743 trials and in offering a more efficient, cost-effective option 2744 to litigation. The filing of any petition for arbitration or the 2745 serving of a demand for presuit mediation as provided for in 2746 this section shall toll the applicable statute of limitations. 2747 Any recall dispute filed with the department underpursuant to2748 s. 720.303(10) shall be conducted by the department in 2749 accordance with the provisions of ss. 718.112(2)(j) and 718.1255 2750 and the rules adopted by the division. In addition, the 2751 department shall conductmandatorybinding arbitration of 2752 election disputes between a member and an association in 2753 accordance withpursuant tos. 718.1255 and rules adopted by the 2754 division.NeitherElection disputes andnorrecall disputes are 2755 not eligible for presuit mediation; these disputes mustshallbe 2756 arbitrated by the department or filed in a court of competent 2757 jurisdiction. At the conclusion of an arbitrationthe2758 proceeding, the department shall charge the parties a fee in an 2759 amount adequate to cover all costs and expenses incurred by the 2760 department in conducting the proceeding. Initially, the 2761 petitioner shall remit a filing fee of at least $200 to the 2762 department. The fees paid to the department shall become a 2763 recoverable cost in the arbitration proceeding, and the 2764 prevailing party in an arbitration proceeding shall recover its 2765 reasonable costs and attorneyattorney’sfees in an amount found 2766 reasonable by the arbitrator. The department shall adopt rules 2767 to effectuate the purposes of this section. 2768 Section 25. Subsection (6) is added to section 720.3075, 2769 Florida Statutes, to read: 2770 720.3075 Prohibited clauses in association documents.— 2771 (6) An association may extinguish a discriminatory 2772 restriction as provided in s. 712.065. 2773 Section 26. Section 720.316, Florida Statutes, is amended 2774 to read: 2775 720.316 Association emergency powers.— 2776 (1) To the extent allowed by law, unless specifically 2777 prohibited by the declaration or other recorded governing 2778 documents, and consistent with s. 617.0830, the board of 2779 directors, in response to damage or injury caused by or 2780 anticipated in connection with an emergency, as defined in s. 2781 252.34(4),eventfor which a state of emergency is declared 2782 pursuant to s. 252.36 in the area encompassed by the 2783 association, may exercise the following powers: 2784 (a) Conduct board meetings, committee meetings, elections, 2785 or membership meetings, in whole or in part, by telephone, real 2786 time videoconferencing, or similar real-time electronic or video 2787 communication after notice of the meetings and board decisions 2788 is provided in as practicable a manner as possible, including 2789 via publication, radio, United States mail, the Internet, 2790 electronic transmission, public service announcements, 2791 conspicuous posting on the common areaassociation property, or 2792 any other means the board deems appropriate under the 2793 circumstances. Notice of decisions may also be communicated as 2794 provided in this paragraph. 2795 (b) Cancel and reschedule an association meeting. 2796 (c) Designate assistant officers who are not directors. If 2797 the executive officer is incapacitated or unavailable, the 2798 assistant officer has the same authority during the state of 2799 emergency as the executive officer he or she assists. 2800 (d) Relocate the association’s principal office or 2801 designate an alternative principal office. 2802 (e) Enter into agreements with counties and municipalities 2803 to assist counties and municipalities with debris removal. 2804 (f) Implement a disaster or an emergency plan before, 2805 during, orimmediatelyfollowing the event for which a state of 2806 emergency is declared, which may include, but is not limited to, 2807 turning on or shutting off elevators; electricity; water, sewer, 2808 or security systems; or air conditioners for association 2809 buildings. 2810 (g) Based upon the advice of emergency management officials 2811 or public health officials, or upon the advice of licensed 2812 professionals retained by or otherwise available to the board, 2813 determine any portion of the common areas or facilities 2814association propertyunavailable for entry or occupancy by 2815 owners or their family members, tenants, guests, agents, or 2816 invitees to protect their health, safety, or welfare. 2817 (h) Based upon the advice of emergency management officials 2818 or public health officials or upon the advice of licensed 2819 professionals retained by or otherwise available to the board, 2820 determine whether the common areas or facilitiesassociation2821propertycan be safely inhabited, accessed, or occupied. 2822 However, such determination is not conclusive as to any 2823 determination of habitability pursuant to the declaration. 2824 (i) Mitigate further damage, injury, or contagion, 2825 including taking action to contract for the removal of debris 2826 and to prevent or mitigate the spread of fungus, including mold 2827 or mildew, by removing and disposing of wet drywall, insulation, 2828 carpet, cabinetry, or other fixtures on or within the common 2829 areas or facilities or sanitizing the common areas or facilities 2830association property. 2831 (j) Notwithstanding a provision to the contrary, and 2832 regardless of whether such authority does not specifically 2833 appear in the declaration or other recorded governing documents, 2834 levy special assessments without a vote of the owners. 2835 (k) Without owners’ approval, borrow money and pledge 2836 association assets as collateral to fund emergency repairs and 2837 carry out the duties of the association if operating funds are 2838 insufficient. This paragraph does not limit the general 2839 authority of the association to borrow money, subject to such 2840 restrictions contained in the declaration or other recorded 2841 governing documents. 2842 (2) The authority granted under subsection (1) is limited 2843 to that time reasonably necessary to protect the health, safety, 2844 and welfare of the association and the parcel owners and their 2845 family members, tenants, guests, agents, or invitees, and to 2846 mitigate further damage, injury, or contagion and make emergency 2847 repairs. 2848 (3) Notwithstanding paragraphs (1)(f)-(i), during a state 2849 of emergency declared by executive order or proclamation of the 2850 Governor pursuant to s. 252.36, an association may not prohibit 2851 parcel owners, tenants, guests, agents, or invitees of a parcel 2852 owner from accessing the common areas and facilities for the 2853 purposes of ingress to and egress from the parcel when access is 2854 necessary in connection with: 2855 (a) The sale, lease, or other transfer of title of a 2856 parcel; or 2857 (b) The habitability of the parcel or for the health and 2858 safety of such person unless a governmental order or 2859 determination, or a public health directive from the Centers for 2860 Disease Control and Prevention, has been issued prohibiting such 2861 access to the parcel. Any such access is subject to reasonable 2862 restrictions adopted by the association. 2863 Section 27. This act shall take effect July 1, 2021.