Bill Text: FL S0864 | 2010 | Regular Session | Introduced
Bill Title: Community Associations [CPSC]
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-03-18 - Withdrawn from Regulated Industries; Community Affairs; Banking and Insurance; Judiciary; General Government Appropriations -SJ 00268; Withdrawn from further consideration, companion bill(s) passed, see CS/CS/CS/SB 1196 (Ch. 2010-174) -SJ 00268 [S0864 Detail]
Download: Florida-2010-S0864-Introduced.html
Florida Senate - 2010 SB 864 By Senator Garcia 40-00877A-10 2010864__ 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 20.165, F.S.; providing certain inspection powers for 4 employees of the Division of Florida Condominiums, 5 Timeshares, and Mobile Homes; amending s. 468.436, 6 F.S.; revising a ground for disciplinary action 7 relating to misconduct or negligence; requiring the 8 Department of Business and Professional Regulation to 9 enter an order permanently revoking the license of a 10 community association manager under certain 11 circumstances; amending s. 718.103, F.S.; revising the 12 definition of the term “developer”; amending s. 13 718.111, F.S.; providing requirements for association 14 access to a unit, including prior notice; providing an 15 exception for emergencies; providing requirements for 16 the selection of condominium association board meeting 17 times and locations; providing restrictions on the 18 times set for certain meetings; prohibiting certain 19 expenditures and contributions by a condominium 20 association; providing liability; amending s. 718.112, 21 F.S.; revising notice requirements for board of 22 administration meetings; revising location 23 requirements for the annual meeting of unit owners; 24 revising terms of board members; revising election 25 notice requirements; providing requirements for the 26 amendment of association bylaws; providing for the 27 removal of certain directors and officers; providing 28 qualifications for service on the board of directors; 29 providing requirements for the borrowing of funds or 30 committing to a line of credit by the board; amending 31 s. 718.113, F.S.; authorizing the association to 32 install code-compliant impact glass as hurricane 33 protection in certain areas; amending s. 718.116, 34 F.S.; authorizing an association to demand future 35 regular assessments related to the condominium unit 36 under specified conditions; providing that the demand 37 is continuing in nature; requiring that a tenant 38 continue to pay assessments until the occurrence of 39 specified events; requiring the delivery of notice of 40 such demand; limiting the liability of a tenant; 41 providing requirements for a notice of delinquency; 42 limiting collection fees; amending s. 718.1265, F.S.; 43 providing conditions under which the association may 44 use certain emergency powers; amending s. 718.301, 45 F.S.; revising conditions under which unit owners 46 other than the developer may elect not less than a 47 majority of the members of the board of administration 48 of an association; amending s. 718.303, F.S.; 49 authorizing an association to suspend, for a 50 reasonable time, the right of a unit owner or the 51 unit’s occupant, licensee, or invitee to use certain 52 common elements under certain conditions; excluding 53 certain common elements from such authorization; 54 prohibiting a fine from being levied or a suspension 55 from being imposed unless the association meets 56 certain notice requirements; providing circumstances 57 under which such notice requirements do not apply; 58 providing procedures and notice requirements for 59 levying a fine or imposing a suspension; amending s. 60 718.501, F.S.; revising condominium matters over which 61 the Division of Florida Condominiums, Timeshares, and 62 Mobile Homes has jurisdiction; revising and providing 63 powers of the division; requiring the division to 64 create a specified booklet for association directors; 65 amending s. 718.5012, F.S.; authorizing the Office of 66 the Condominium Ombudsman to assist in the resolution 67 of certain disputes; amending s. 718.50151, F.S.; 68 redesignating the Community Association Living Study 69 Council as the Community Association Study Council; 70 revising council membership; amending s. 719.103, 71 F.S.; revising definitions; changing references from 72 unit owner to shareholder in statutes relating to 73 cooperatives; amending s. 719.104, F.S.; providing 74 requirements for association access to a unit, 75 including prior notice; providing an exception for 76 emergencies; providing civil penalties for violations 77 of accounting records requirements; exempting certain 78 personal information from unit owner records requests; 79 providing immunity from liability for certain 80 information provided by associations to prospective 81 purchasers or lienholders under certain circumstances; 82 providing requirements with respect to financial 83 statements and reports; providing that the operation 84 of the cooperative shall be by the association; 85 providing that shareholders shall be members of the 86 association; providing legislative intent; providing 87 that a director of the association who abstains from 88 voting on any action taken on any corporate matter 89 shall be presumed to have taken no position with 90 regard to the action; providing duties of officers, 91 directors, and agents of a cooperative association and 92 liability for monetary damages under certain 93 circumstances; providing that the association may 94 contract, sue, or be sued with respect to the exercise 95 or nonexercise of its powers; providing powers of the 96 association with respect to title to property and 97 purchase of units; providing requirements for the 98 selection of cooperative association board of 99 directors meeting times and locations; providing 100 restrictions on the times set for certain meetings; 101 prohibiting certain expenditures and contributions by 102 a cooperative association; providing liability; 103 amending s. 719.106, F.S.; requiring certain items to 104 be placed on the agenda of board meetings; revising 105 notice requirements for board meetings; providing 106 requirements for shareholder meetings; providing terms 107 of office and election requirements for the board of 108 directors; providing criteria for the amendment of the 109 bylaws; providing eligibility to vote on certain 110 questions involving reserve funds; requiring proxy 111 questions relating to reserves to contain a specified 112 statement; requiring the bylaws to contain certain 113 provisions; requiring that directors and officers who 114 are delinquent in certain payments owed in excess of 115 certain periods of time be deemed to have abandoned 116 their offices; requiring that directors and officers 117 charged with certain offenses involving an 118 association’s funds or property be suspended from 119 office pending resolution of the charge; providing for 120 the reinstatement of such directors and officers under 121 certain circumstances; providing qualifications for 122 directors; providing requirements for the borrowing of 123 funds or committing to a line of credit by the board; 124 repealing s. 719.1064, F.S., relating to the failure 125 to fill vacancies on board of administration and the 126 appointment of a receiver upon petition of a 127 shareholder; amending s. 719.107, F.S.; providing that 128 the expense of installation, replacement, operation, 129 repair, and maintenance of hurricane shutters or other 130 hurricane protection shall either constitute a common 131 expense or be charged individually to the shareholders 132 under certain conditions; amending s. 719.108, F.S.; 133 providing grounds for disapproval of the proposed 134 lease of a unit by an association; providing lien 135 requirements; providing for the extension of certain 136 liens; providing lien notice and filing requirements; 137 providing requirements for a notice of delinquency; 138 providing foreclosure requirements; providing the 139 association with the power to purchase a cooperative 140 unit at a foreclosure sale; requiring the association 141 to provide a certificate of assessment under certain 142 conditions; providing for the establishment of fees 143 for the preparation of such certificates; providing 144 for the refund of certain fees; authorizing the 145 association to demand payment of future assessments 146 under specified conditions; providing that the demand 147 is continuing in nature; requiring that a tenant 148 continue to pay assessments until the occurrence of 149 specified events; requiring the delivery of notice of 150 such demand; limiting the liability of a tenant; 151 creating s. 719.113, F.S.; providing that maintenance 152 of common areas is the responsibility of the 153 association; providing that the cooperative documents 154 may include reference that the association provide 155 certain maintenance for the condominium; providing 156 that there shall be no material alteration or 157 substantial additions to the common areas or to real 158 property which is association property; providing for 159 protection of the common areas; allowing shareholders 160 to display a United States flag as well as other 161 specified flags on designated days and patriotic 162 holidays; requiring the board to adopt hurricane 163 shutter specifications; authorizing the board to 164 install certain hurricane protection; prohibiting the 165 board from installing certain hurricane shutters or 166 other hurricane protection under certain 167 circumstances; providing for the maintenance, repair, 168 and replacement of hurricane shutters or other 169 hurricane protection; authorizing the board to operate 170 hurricane shutters without shareholder permission 171 under certain circumstances; prohibiting the board 172 from refusing to approve the installation or 173 replacement of hurricane shutters under certain 174 conditions; requiring that the board inspect certain 175 buildings and issue a report under certain conditions; 176 providing an exception; prohibiting the board from 177 refusing a request for reasonable accommodation for 178 the attachment to a unit of religious objects meeting 179 certain size specifications; authorizing the board to 180 install solar collectors, clotheslines, or other 181 energy-efficient devices upon or within common areas 182 or association property; creating s. 719.117, F.S.; 183 providing legislative findings; providing provisions 184 relating to the termination of the cooperative form of 185 ownership of a property due to economic waste or 186 impossibility or optional termination; providing 187 grounds for termination; providing an exemption; 188 providing that the approval of a plan of termination 189 by certain mortgage lienholders is not required under 190 certain conditions; providing powers and duties of the 191 board relating to the plan of termination; providing 192 requirements following natural disasters; providing 193 reporting requirements; providing requirements for a 194 plan of termination; providing for the allocation of 195 proceeds from the sale of cooperative property; 196 providing powers and duties of a termination trustee; 197 providing notice requirements; providing a procedure 198 for contesting a plan of termination; providing for 199 recovery of attorney’s fees and costs; providing rules 200 for the distribution of property and sale proceeds; 201 providing for the association’s status following 202 termination; allowing the creation of another 203 cooperative by the trustee; creating s. 719.1224, 204 F.S.; prohibiting strategic lawsuits against public 205 participation; providing legislative findings and 206 intent; prohibiting a governmental entity, business 207 organization, or individual from filing certain 208 lawsuits made upon specified bases against a 209 shareholder; providing rights of a shareholder who has 210 been served with such a lawsuit; providing procedures 211 for the resolution of certain claims; providing for 212 the award of damages and attorney’s fees; prohibiting 213 associations from expending association funds in 214 prosecuting such a suit against a shareholder; 215 amending s. 719.1255, F.S.; requiring the division to 216 provide alternative dispute resolution for certain 217 matters; creating s. 719.1265, F.S.; authorizing an 218 association to exercise certain powers in instances 219 involving damage caused by an event for which a state 220 of emergency has been declared; limiting the 221 applicability of such powers; amending s. 719.301, 222 F.S.; providing circumstances under which shareholders 223 other than a developer may elect not less than a 224 majority of the members of the board; requiring a 225 turnover inspection report; requiring that the report 226 contain certain information; creating s. 719.3025, 227 F.S.; requiring written contracts for the operation, 228 maintenance, or management of a cooperative 229 association or cooperative property; providing 230 contract requirements; authorizing the association to 231 procure outside services under certain circumstances; 232 providing that services or obligations not stated on 233 the face of the contract are unenforceable; providing 234 applicability; amending s. 719.3026, F.S.; revising a 235 provision authorizing certain associations to opt out 236 of provisions relating to contracts for products and 237 services; removing provisions exempting contracts 238 executed before a specified date from certain 239 competitive bid requirements; providing requirements 240 for any contract or transaction between an association 241 and one or more of its directors or a specified other 242 entity in which one or more of its directors are 243 directors or officers or have a financial interest; 244 amending s. 719.303, F.S.; authorizing an association 245 to suspend, for a reasonable time, the right of a 246 shareholder or a shareholder’s occupant, licensee, or 247 invitee to use certain common elements under certain 248 conditions; excluding certain common elements from 249 such authorization; providing that hearings regarding 250 noncompliance with a declaration be held before 251 certain persons; providing an exception to certain 252 notice and hearing requirements; amending s. 719.501, 253 F.S.; providing authority and responsibilities of the 254 division; providing for enforcement actions brought by 255 the division in its own name; providing for the 256 imposition of penalties by the division; requiring 257 that the division issue a subpoena requiring 258 production of certain requested records under certain 259 circumstances; providing for the issuance of notice of 260 a declaratory statement with respect to documents 261 governing a cooperative; deleting requirement that the 262 division adopt certain accounting principles; 263 requiring that the division provide training and 264 educational programs for association board members and 265 shareholders; providing that the division shall 266 include certain training components, may review or 267 approve training and educational programs offered by 268 providers, and shall maintain a list of approved 269 programs and providers; requiring that certain 270 individuals cooperate with the division in any 271 investigation conducted by the division; requiring the 272 division to cooperate with similar agencies in other 273 jurisdictions to establish certain procedures, 274 standards, and forms; specifying what constitutes 275 completeness of notice to a developer; authorizing the 276 division to issue a notice to show cause; requiring 277 the division to include certain information relating 278 to cooperatives in a specified annual report relating 279 to condominiums; requiring an association to pay any 280 penalty due to the division before having standing to 281 maintain or defend any action in the courts of this 282 state; amending s. 719.503, F.S.; providing 283 nondeveloper shareholder disclosure requirements for 284 the sale of interest in a cooperative association, 285 including a governance form; requiring the division to 286 provide the governance form; providing requirements 287 for the governance form; amending s. 720.303, F.S.; 288 revising notice requirements for board meetings; 289 providing requirements for the borrowing of funds or 290 committing to a line of credit by the board of 291 directors of a homeowners’ association; providing 292 requirements relating to transfer fees; prohibiting 293 certain expenditures and contributions by a 294 homeowners’ association; providing liability; amending 295 s. 720.304, F.S.; revising requirements with respect 296 to the display of flags by a homeowner; amending s. 297 720.306, F.S.; revising instances in which the 298 governing documents of the association may be amended; 299 providing circumstances and methods by which the 300 association bylaws may be amended; creating s. 301 720.3065, F.S.; providing circumstances for removal of 302 a director or officer of, and providing qualifications 303 for service on, the board of directors of a 304 homeowners’ association; creating s. 720.3068, F.S.; 305 providing requirements for the selection of 306 homeowners’ association board meeting times and 307 locations; providing restrictions on the times set for 308 certain meetings; amending s. 720.3085, F.S.; revising 309 provisions relating to the effectiveness and priority 310 of homeowners’ association liens; providing 311 requirements for a notice of delinquency; authorizing 312 an association to demand future regular assessments 313 related to the parcel under specified conditions; 314 providing that the demand is continuing in nature; 315 requiring that a tenant continue to pay assessments 316 until the occurrence of specified events; requiring 317 the delivery of written notice of such demand; 318 limiting the liability of a tenant; creating s. 319 720.314, F.S.; providing for parcel owners to file 320 informational complaints regarding homeowners’ 321 associations and their officers and directors with the 322 Office of Program Policy Analysis and Government 323 Accountability; providing for an informational 324 complaint form and the format of such form; amending 325 s. 721.16, F.S.; conforming a cross-reference; 326 providing an effective date. 327 328 Be It Enacted by the Legislature of the State of Florida: 329 330 Section 1. Subsection (10) is added to section 20.165, 331 Florida Statutes, to read: 332 20.165 Department of Business and Professional Regulation. 333 There is created a Department of Business and Professional 334 Regulation. 335 (10) All employees authorized by the Division of Florida 336 Condominiums, Timeshares, and Mobile Homes shall have access to 337 and shall have the right to examine and inspect the premises, 338 books, and records of any condominium, cooperative, timeshare, 339 or mobile home park regulated by the division. Such employees 340 shall also have access to and shall have the right to examine 341 and inspect the books and records of any community association 342 manager or firm employed by any condominium, cooperative, 343 timeshare, or mobile home park regulated by the division. 344 Section 2. Paragraph (b) of subsection (2) of section 345 468.436, Florida Statutes, is amended, and subsection (6) is 346 added to that section, to read: 347 468.436 Disciplinary proceedings.— 348 (2) The following acts constitute grounds for which the 349 disciplinary actions in subsection (4) may be taken: 350 (b)1. Violation of any provision of this part. 351 2. Violation of any lawful order or rule rendered or 352 adopted by the department or the council. 353 3. Being convicted of or pleading nolo contendere to a 354 felony in any court in the United States. 355 4. Obtaining a license or certification or any other order, 356 ruling, or authorization by means of fraud, misrepresentation, 357 or concealment of material facts. 358 5. Committing acts ofgrossmisconduct orgrossnegligence 359 in connection with the profession. 360 6. Contracting, on behalf of an association, with any 361 entity in which the licensee has a financial interest that is 362 not disclosed. 363 (6) Upon the fifth or later finding that a community 364 association manager is guilty of any of the grounds set forth in 365 subsection (2), or upon the third or later finding that a 366 community association manager is guilty of a specific ground for 367 which the disciplinary actions set forth in subsection (2) may 368 be taken, the department’s discretion under subsection (4) shall 369 not apply and the division shall enter an order permanently 370 revoking the license. 371 Section 3. Subsection (16) of section 718.103, Florida 372 Statutes, is amended to read: 373 718.103 Definitions.—As used in this chapter, the term: 374 (16) “Developer” means a person who creates a condominium 375 or offers condominium parcels for sale or lease in the ordinary 376 course of business, but does not include: 377 (a) An owner or lessee of a condominium or cooperative unit 378 who has acquired the unit for his or her own occupancy;, nor379does it include380 (b) A cooperative association thatwhichcreates a 381 condominium by conversion of an existing residential cooperative 382 after control of the association has been transferred to the 383 unit owners if, following the conversion, the unit owners will 384 be the same persons who were unit owners of the cooperative and 385 no units are offered for sale or lease to the public as part of 386 the plan of conversion; or.387 (c) A state, county, or municipal entityis not a developer388for any purposes under this actwhen it is acting as a lessor 389 and not otherwise named as a developer in the declaration of 390 condominium association. 391 Section 4. Subsection (5) and paragraph (b) of subsection 392 (12) of section 718.111, Florida Statutes, are amended, and 393 subsections (15) and (16) are added to that section, to read: 394 718.111 The association.— 395 (5) RIGHT OF ACCESS TO UNITS.—The association has the 396 irrevocable right of access to each unit during reasonable 397 hours, when necessary for the maintenance, repair, or 398 replacement of any common elements or of any portion of a unit 399 to be maintained by the association pursuant to the declaration 400 or as necessary to prevent damage to the common elements or to a 401 unit or units. Except in cases of emergency, the association 402 must give the unit owner advance written notice of not less than 403 24 hours of its intent to access the unit and such access must 404 be by two persons, one of whom must be a member of the board of 405 administration or a manager or employee of the association and 406 one of whom must be an authorized representative of the 407 association. The identity of the authorized representative 408 seeking access to the unit must be provided to the unit owner 409 prior to entering the unit. 410 (12) OFFICIAL RECORDS.— 411 (b) The official records of the association shall be 412 maintained within the state for at least 7 years. The records of 413 the association shall be made available to a unit owner within 414 45 miles of the condominium property or within the county in 415 which the condominium property is located within 5 working days 416 after receipt of written request by the board or its designee. 417 However, such distance requirement does not apply to an 418 association governing a timeshare condominium. This paragraph 419 may be complied with by having a copy of the official records of 420 the association available for inspection or copying on the 421 condominium property or association property., orThe 422 association may offer the option of making the records of the 423 association available to a unit owner either electronically via 424 the Internet or by allowing the records to be viewed in 425 electronic format on a computer screen and printed upon request. 426 (15) MEETINGS.—Regular meetings of the board of 427 administration shall be held at such time and place as provided 428 in the bylaws until the first regular meeting of the board held 429 on or after October 1, 2010. Thereafter, the location and time 430 for regular meetings of the board shall be determined by a 431 majority vote of the unit owners at the next regular meeting 432 held on or after October 1, 2010. Once the time and place for 433 regular meetings of the board have been selected, neither may be 434 changed unless approved by a majority vote of the unit owners. 435 Regular meetings of the board of administration held on weekdays 436 may be held no earlier than 6 p.m. local time. 437 (16) LIMIT ON EXPENDITURES AND CONTRIBUTIONS.—It shall be 438 unlawful for an association to make any expenditure of 439 association funds or to make any in-kind contribution of 440 association assets which does not relate to the purposes for 441 which the association is organized. 442 (a) The association shall not make any contribution to a 443 campaign or committee of continuous existence governed by 444 chapter 105 or chapter 106. 445 (b) The association shall not make any contribution to a 446 charitable organization if the association does not receive a 447 direct benefit from the organization. 448 (c) Members of the board of administration shall be jointly 449 and severely liable to reimburse the association for any 450 contribution, expenditure, or in-kind contribution made in 451 violation of this subsection. 452 Section 5. Paragraphs (c), (d), (h), and (o) of subsection 453 (2) of section 718.112, Florida Statutes, are amended, and 454 paragraphs (p) and (q) are added to that subsection, to read: 455 718.112 Bylaws.— 456 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 457 following and, if they do not do so, shall be deemed to include 458 the following: 459 (c) Board of administration meetings.—Meetings of the board 460 of administration at which a quorum of the members is present 461 shall be open to all unit owners. Any unit owner may tape record 462 or videotape meetings of the board of administration. The right 463 to attend such meetings includes the right to speak at such 464 meetings with reference to all designated agenda items. The 465 division shall adopt reasonable rules governing the tape 466 recording and videotaping of the meeting. The association may 467 adopt written reasonable rules governing the frequency, 468 duration, and manner of unit owner statements. Adequate notice 469 of all meetings, which notice shall specifically incorporate an 470 identification of agenda items, shall be posted conspicuously on 471 the condominium property at least 48 continuous hours preceding 472 the meeting except in an emergency. If 20 percent of the voting 473 interests petition the board to address an item of business, the 474 board shall at its next regular board meeting or at a special 475 meeting of the board, but not later than 60 days after the 476 receipt of the petition, place the item on the agenda. Any item 477 not included on the notice may be taken up on an emergency basis 478 by at least a majority plus one of the members of the board. 479 Such emergency action shall be noticed and ratified at the next 480 regular meeting of the board. However, written notice of any 481 meeting at which nonemergency special assessments, or at which 482 amendment to rules regarding unit use, will be considered shall 483 be mailed, delivered, or electronically transmitted to the unit 484 owners and posted conspicuously on the condominium property not 485 less than 14 days prior to the meeting. Evidence of compliance 486 with this 14-day notice shall be made by an affidavit executed 487 by the person providing the notice and filed among the official 488 records of the association. Upon notice to the unit owners, the 489 board shall by duly adopted rule designate a specific location 490 on the condominium property or association property upon which 491 all notices of board meetings shall be posted. If there is no 492 condominium property or association property upon which notices 493 can be posted, notices of board meetings shall be mailed, 494 delivered, or electronically transmitted at least 14 days before 495 the meeting to the owner of each unit. In lieu of or in addition 496 to the physical posting of notice of any meeting of the board of 497 administration on the condominium property, the association may, 498 by reasonable rule, adopt a procedure for conspicuously posting 499 and repeatedly broadcasting the notice and the agenda on a 500 closed-circuit cable television system serving the condominium 501 association. However, if broadcast notice is used in lieu of a 502 notice posted physically on the condominium property, the notice 503 and agenda must be broadcast at least four times every broadcast 504 hour of each day that a posted notice is otherwise required 505 under this section. When broadcast notice is provided, the 506 notice and agenda must be broadcast in a manner and for a 507 sufficient continuous length of time so as to allow an average 508 reader to observe the notice and read and comprehend the entire 509 content of the notice and the agenda. Notice of any meeting in 510 which regular or special assessments against unit owners are to 511 be considered for any reason shall specifically state that 512 assessments will be considered and the nature of, the actual 513estimatedcost of, and a description of the purposes for such 514 assessments. Meetings of a committee to take final action on 515 behalf of the board or make recommendations to the board 516 regarding the association budget are subject to the provisions 517 of this paragraph. Meetings of a committee that does not take 518 final action on behalf of the board or make recommendations to 519 the board regarding the association budget are subject to the 520 provisions of this section, unless those meetings are exempted 521 from this section by the bylaws of the association. 522 Notwithstanding any other law, the requirement that board 523 meetings and committee meetings be open to the unit owners is 524 inapplicable to meetings between the board or a committee and 525 the association’s attorney, with respect to proposed or pending 526 litigation, when the meeting is held for the purpose of seeking 527 or rendering legal advice. 528 (d) Unit owner meetings.— 529 1. There shall be an annual meeting of the unit owners held 530 at the location provided in the association bylaws and, if the 531 bylaws are silent as to the location, the meeting shall be held 532 within 45 miles of the condominium property or, if facilities 533 are available on the condominium property, the meeting shall be 534 held at such facilities. However, such distance requirement does 535 not apply to an association governing a timeshare condominium. 536 Unless the bylaws provide otherwise, a vacancy on the board 537 caused by the expiration of a director’s term shall be filled by 538 electing a new board member, and the election shall be by secret 539 ballot; however, if the number of vacancies equals or exceeds 540 the number of candidates, no election is required. Except in 541 timeshare condominiums, the terms of all members of the board 542 shall expire at the first annual meeting after July 1, 2010, and 543 at eachtheannual meeting thereafter and such board members may 544 stand for reelection unless otherwise permitted by the bylaws. 545 In the event that the bylaws permit staggered terms of no more 546 than 2 yearsand upon approval of a majority of the total voting547interests, the association board members may serve 2-year 548 staggered terms. If no person is interested in or demonstrates 549 an intention to run for the position of a board member whose 550 term has expired according to the provisions of this 551 subparagraph, such board member whose term has expired shall be 552 automatically reappointed to the board of administration and 553 need not stand for reelection.In a condominium association of554more than 10 units, coowners of a unit may not serve as members555of the board of directors at the same time. Any unit owner556desiring to be a candidate for board membership shall comply557with subparagraph 3. A person who has been suspended or removed558by the division under this chapter, or who is delinquent in the559payment of any fee or assessment as provided in paragraph (n),560is not eligible for board membership. A person who has been561convicted of any felony in this state or in a United States562District or Territorial Court, or who has been convicted of any563offense in another jurisdiction that would be considered a564felony if committed in this state, is not eligible for board565membership unless such felon’s civil rights have been restored566for a period of no less than 5 years as of the date on which567such person seeks election to the board.The validity of an 568 action by the board is not affected if it is later determined 569 that a member of the board is ineligible for board membership 570due to having been convicted of a felony. 571 2. The bylaws shall provide the method of calling meetings 572 of unit owners, including annual meetings. Written notice, which 573 notice must include an agenda, shall be mailed, hand delivered, 574 or electronically transmitted to each unit owner at least 14 575 days prior to the annual meeting and shall be posted in a 576 conspicuous place on the condominium property at least 14 577 continuous days preceding the annual meeting. Upon notice to the 578 unit owners, the board shall by duly adopted rule designate a 579 specific location on the condominium property or association 580 property upon which all notices of unit owner meetings shall be 581 posted; however, if there is no condominium property or 582 association property upon which notices can be posted, this 583 requirement does not apply. In lieu of or in addition to the 584 physical posting of notice of any meeting of the unit owners on 585 the condominium property, the association may, by reasonable 586 rule, adopt a procedure for conspicuously posting and repeatedly 587 broadcasting the notice and the agenda on a closed-circuit cable 588 television system serving the condominium association. However, 589 if broadcast notice is used in lieu of a notice posted 590 physically on the condominium property, the notice and agenda 591 must be broadcast at least four times every broadcast hour of 592 each day that a posted notice is otherwise required under this 593 section. When broadcast notice is provided, the notice and 594 agenda must be broadcast in a manner and for a sufficient 595 continuous length of time so as to allow an average reader to 596 observe the notice and read and comprehend the entire content of 597 the notice and the agenda. Unless a unit owner waives in writing 598 the right to receive notice of the annual meeting, such notice 599 shall be hand delivered, mailed, or electronically transmitted 600 to each unit owner. Notice for meetings and notice for all other 601 purposes shall be mailed to each unit owner at the address last 602 furnished to the association by the unit owner, or hand 603 delivered to each unit owner. However, if a unit is owned by 604 more than one person, the association shall provide notice, for 605 meetings and all other purposes, to that one address which the 606 developer initially identifies for that purpose and thereafter 607 as one or more of the owners of the unit shall so advise the 608 association in writing, or if no address is given or the owners 609 of the unit do not agree, to the address provided on the deed of 610 record. An officer of the association, or the manager or other 611 person providing notice of the association meeting, shall 612 provide an affidavit or United States Postal Service certificate 613 of mailing, to be included in the official records of the 614 association affirming that the notice was mailed or hand 615 delivered, in accordance with this provision. 616 3. The members of the board shall be elected by written 617 ballot or voting machine. Proxies shall in no event be used in 618 electing the board, either in general elections or elections to 619 fill vacancies caused by recall, resignation, or otherwise, 620 unless otherwise provided in this chapter. Not less than 60 days 621 before a scheduled election, the association shall mail, 622 deliver, or electronically transmit, whether by separate 623 association mailing or included in another association mailing, 624 delivery, or transmission, including regularly published 625 newsletters, to each unit owner entitled to a vote, a first 626 notice of the date of the electionalong with a certification627form provided by the division attesting that he or she has read628and understands, to the best of his or her ability, the629governing documents of the association and the provisions of630this chapter and any applicable rules. Any unit owner or other 631 eligible person desiring to be a candidate for the board must 632 give written notice to the association not less than 40 days 633 before a scheduled election. Together with the written notice 634 and agenda as set forth in subparagraph 2., the association 635 shall mail, deliver, or electronically transmit a second notice 636 of the election to all unit owners entitled to vote therein, 637 together with a ballot which shall list all candidates. Upon 638 request of a candidate, the association shall include an 639 information sheet, no larger than 8 1/2 inches by 11 inches, 640 which must be furnished by the candidate not less than 35 days 641 before the election, along with the signed certification form642provided for in this subparagraph,to be included with the 643 mailing, delivery, or transmission of the ballot, with the costs 644 of mailing, delivery, or electronic transmission and copying to 645 be borne by the association. The association is not liable for 646 the contents of the information sheets prepared by the 647 candidates. In order to reduce costs, the association may print 648 or duplicate the information sheets on both sides of the paper. 649 The division shall by rule establish voting procedures 650 consistent with the provisions contained herein, including rules 651 establishing procedures for giving notice by electronic 652 transmission and rules providing for the secrecy of ballots. 653 Elections shall be decided by a plurality of those ballots cast. 654 There shall be no quorum requirement; however, at least 20 655 percent of the eligible voters must cast a ballot in order to 656 have a valid election of members of the board. No unit owner 657 shall permit any other person to vote his or her ballot, and any 658 such ballots improperly cast shall be deemed invalid, provided 659 any unit owner who violates this provision may be fined by the 660 association in accordance with s. 718.303. A unit owner who 661 needs assistance in casting the ballot for the reasons stated in 662 s. 101.051 may obtain assistance in casting the ballot. The 663 regular election shall occur on the date of the annual meeting. 664 The provisions of this subparagraph shall not apply to timeshare 665 condominium associations. Notwithstanding the provisions of this 666 subparagraph, an election is not required unless more candidates 667 file notices of intent to run or are nominated than board 668 vacancies exist. 669 4. Any approval by unit owners called for by this chapter 670 or the applicable declaration or bylaws, including, but not 671 limited to, the approval requirement in s. 718.111(8), shall be 672 made at a duly noticed meeting of unit owners and shall be 673 subject to all requirements of this chapter or the applicable 674 condominium documents relating to unit owner decisionmaking, 675 except that unit owners may take action by written agreement, 676 without meetings, on matters for which action by written 677 agreement without meetings is expressly allowed by the 678 applicable bylaws or declaration or any statute that provides 679 for such action. 680 5. Unit owners may waive notice of specific meetings if 681 allowed by the applicable bylaws or declaration or any statute. 682 If authorized by the bylaws, notice of meetings of the board of 683 administration, unit owner meetings, except unit owner meetings 684 called to recall board members under paragraph (j), and 685 committee meetings may be given by electronic transmission to 686 unit owners who consent to receive notice by electronic 687 transmission. 688 6. Unit owners shall have the right to participate in 689 meetings of unit owners with reference to all designated agenda 690 items. However, the association may adopt reasonable rules 691 governing the frequency, duration, and manner of unit owner 692 participation. 693 7. Any unit owner may tape record or videotape a meeting of 694 the unit owners subject to reasonable rules adopted by the 695 division. 696 8. Unless otherwise provided in the bylaws, any vacancy 697 occurring on the board before the expiration of a term may be 698 filled by the affirmative vote of the majority of the remaining 699 directors, even if the remaining directors constitute less than 700 a quorum, or by the sole remaining director. In the alternative, 701 a board may hold an election to fill the vacancy, in which case 702 the election procedures must conform to the requirements of 703 subparagraph 3. unless the association governs 10 or fewer units 704or lessand has opted out of the statutory election process, in 705 which case the bylaws of the association control. Unless 706 otherwise provided in the bylaws, a board member appointed or 707 elected under this section shall fill the vacancy for the 708 unexpired term of the seat being filled. Filling vacancies 709 created by recall is governed by paragraph (j) and rules adopted 710 by the division. 711 9. Notwithstanding subparagraphs (b)2. and (d)3., an 712 association of 10 or fewer units may, by the affirmative vote of 713 a majority of the total voting interests, provide for different 714 voting and election procedures in its bylaws, which vote may be 715 by a proxy specifically delineating the different voting and 716 election procedures. The different voting and election 717 procedures may provide for elections to be conducted by limited 718 or general proxy. 719 (h) Amendment of bylaws.— 720 1. The method by which the bylaws may be amended consistent 721 with the provisions of this chapter shall be stated. If the 722 bylaws fail to provide a method of amendment, the bylaws may be 723 amended if the amendment is approved by the owners of not less 724 than two-thirds of the voting interests. 725 2. No bylaw shall be revised or amended by reference to its 726 title or number only. Proposals to amend existing bylaws shall 727 contain the full text of the bylaws to be amended; new words 728 shall be inserted in the text underlined, and words to be 729 deleted shall be lined through with hyphens. However, if the 730 proposed change is so extensive that this procedure would 731 hinder, rather than assist, the understanding of the proposed 732 amendment, it is not necessary to use underlining and hyphens as 733 indicators of words added or deleted, but, instead, a notation 734 must be inserted immediately preceding the proposed amendment in 735 substantially the following language: “Substantial rewording of 736 bylaw. See bylaw .... for present text.” 737 3. Nonmaterial errors or omissions in the bylaw process 738 will not invalidate an otherwise properly promulgated amendment. 739 4. If the bylaws provide for amendment by the board of 740 administration, no bylaw may be amended unless it is heard and 741 noticed at two consecutive meetings of the board of 742 administration which are at least 1 week apart. 743 (o) Director or officer offenses.—A director or officer 744 charged by information or indictment with a felony theft or 745 embezzlement offense involving the association’s funds or 746 property shall be removed from office, creating a vacancy in the 747 office to be filled according to law. While such director or 748 officer has such criminal charge pending in the state or federal 749 court system, he or she may not be appointed or elected to a 750 position as a director or officer. However, should the charges 751 be resolved without a finding of guilt, the director or officer 752 shall be reinstated for the remainder of his or her term of 753 office, if any. 754 (p) Qualification of directors.—In addition to any other 755 requirement for office in statute, a person running for, seeking 756 appointment to, or serving as a director of the board must meet 757 the following qualifications: 758 1. In a condominium association of 10 or more units, only 759 one individual coowner of a unit may serve on the board of 760 administration. 761 2. No person may serve as a director of any condominium 762 association in the state if restricted from serving by action of 763 the division pursuant to s. 718.501(1)(d)6. 764 3. A person who has been convicted of any felony in this 765 state or in a United States District or Territorial Court, or 766 who has been convicted of any offense in another jurisdiction 767 which would be considered a felony if committed in this state, 768 is not eligible for board membership unless such felon’s civil 769 rights have been restored for a period of no less than 5 years 770 as of the date on which such person seeks election to the board. 771 4. A director more than 90 days delinquent in the payment 772 of regular assessments shall be deemed to have abandoned his or 773 her office. 774 5. Within 30 days after being elected or appointed to the 775 board of administration, a director must certify in writing to 776 the secretary of the association that he or she has read this 777 part and part III and the association’s declaration of 778 condominium, articles of incorporation, bylaws, and current 779 written policies. The director shall further certify that he or 780 she will work to uphold such documents and policies to the best 781 of his or her ability and that he or she will faithfully 782 discharge his or her fiduciary responsibility to the 783 association’s members. If the division finds that a director has 784 falsely certified that he or she has read the required statutes 785 and documents, the division shall order the director removed 786 from the board and shall order the director to reimburse the 787 division for the cost of prosecution and hearing. 788 6. After turnover of the association pursuant to s. 789 718.301(2), a director must: 790 a. If the unit is owned by an individual or individuals, be 791 one of those individuals. 792 b. If the unit is owned by a trust, be an individual 793 qualified pursuant to s. 617.0802. 794 795 These qualifications shall operate on a continuing basis, and 796 upon the failure of a director at any time to meet a 797 qualification, the director shall be removed from office and 798 that office shall be deemed vacant. However, in the case of a 799 timeshare condominium association, the bylaws of the association 800 shall govern the terms, expiration of terms, and staggered terms 801 of board members, and the eligibility of coowners to serve on 802 the board of administration shall not be restricted except in 803 the manner provided in the bylaws of the timeshare condominium 804 association. 805 (q) Borrowing.—The borrowing of funds or committing to a 806 line of credit by the board of administration shall be 807 considered a special assessment, and any meeting of the board of 808 administration to discuss such matters must be noticed as 809 provided in paragraph (c). The board may not borrow funds or 810 enter into a line of credit or borrow funds for any purpose 811 unless the specific use of the funds from the loan or line of 812 credit is set forth in the notice of meeting with the same 813 specificity as required for a special assessment or unless the 814 borrowing or line of credit has received the prior approval of 815 at least two-thirds of the voting interests of the association. 816 Section 6. Paragraph (a) of subsection (5) of section 817 718.113, Florida Statutes, is amended to read: 818 718.113 Maintenance; limitation upon improvement; display 819 of flag; hurricane shutters; display of religious decorations.— 820 (5) Each board of administration shall adopt hurricane 821 shutter specifications for each building within each condominium 822 operated by the association which shall include color, style, 823 and other factors deemed relevant by the board. All 824 specifications adopted by the board shall comply with the 825 applicable building code. 826 (a) The board may, subject to the provisions of s. 827 718.3026, and the approval of a majority of voting interests of 828 the condominium, install hurricane shutters or hurricane 829 protection that complies with or exceeds the applicable building 830 code, or both, except that a vote of the owners is not required 831 if the maintenance, repair, and replacement of hurricane 832 shutters or other forms of hurricane protection are the 833 responsibility of the association pursuant to the declaration of 834 condominium. However, where hurricane protection or laminated 835 glass or window film architecturally designed to function as 836 hurricane protection which complies with or exceeds the current 837 applicable building code has been previously installed, the 838 board may not install hurricane shutters or other hurricane 839 protection. Code-compliant impact glass may be installed by the 840 association as hurricane protection if the area in which the 841 glass is to be installed is an area that is the responsibility 842 of the association. If a unit owner installed code-compliant 843 impact glass prior to the association voting to install such 844 glass, and such glass and the frame thereof complies with the 845 current applicable building codes and is otherwise in good 846 repair, the unit owner shall not be required to pay the unit 847 owner’s pro rata share of the cost of installing code-compliant 848 impact glass to the condominium association, notwithstanding s. 849 718.116(9). 850 Section 7. Subsections (11) and (12) are added to section 851 718.116, Florida Statutes, to read: 852 718.116 Assessments; liability; lien and priority; 853 interest; collection.— 854 (11) During the pendency of any foreclosure action of a 855 condominium unit, if the unit is occupied by a tenant and the 856 unit owner is delinquent in the payment of regular assessments, 857 the association may demand that the tenant pay to the 858 association the future regular assessments related to the 859 condominium unit. The demand shall be continuing in nature, and 860 upon demand the tenant shall continue to pay the regular 861 assessments to the association until the association releases 862 the tenant or the tenant discontinues tenancy in the unit. The 863 association shall mail written notice to the unit owner of the 864 association’s demand that the tenant pay regular assessments to 865 the association. The tenant shall not be liable for increases in 866 the amount of the regular assessments due unless the tenant was 867 reasonably notified of the increase prior to the day that the 868 rent is due. The tenant shall be given a credit against rents 869 due to the unit owner in the amount of assessments paid to the 870 association. The association shall, upon request, provide the 871 tenant with written receipts for payments made. The association 872 may issue notices under s. 83.56 and may sue for eviction under 873 ss. 83.59-83.625 as if the association were a landlord under 874 part II of chapter 83 should the tenant fail to pay an 875 assessment. However, the association shall not otherwise be 876 considered a landlord under chapter 83 and shall specifically 877 not have any duty under s. 83.51. The tenant shall not, by 878 virtue of payment of assessments, have any of the rights of a 879 unit owner to vote in any election or to examine the books and 880 records of the association. A court may supersede the effect of 881 this subsection by appointing a receiver. 882 (12)(a) A notice of delinquency sent to a unit owner shall 883 provide an overall total of assessments claimed and shall 884 specify each assessment or charge that is claimed by the 885 association, listing for each assessment or charge the date of 886 the assessment or charge, the principal balance owed for the 887 assessment or charge, and affiliated late fees or collection 888 charges. 889 (b) Costs to a unit owner secured by the association’s 890 claim of lien with regard to collection efforts by management 891 companies or licensed managers as to any delinquent installment 892 of an assessment may not exceed $50. However, there shall be no 893 charge for the first notice of a delinquency to the unit owner. 894 Section 8. Subsection (2) of section 718.1265, Florida 895 Statutes, is amended to read: 896 718.1265 Association emergency powers.— 897 (2) The special powers authorized under subsection (1) 898 shall be limited to that time reasonably necessary to protect 899 the health, safety, and welfare of the association and the unit 900 owners and the unit owners’ family members, tenants, guests, 901 agents, or invitees and shall be reasonably necessary to 902 mitigate further damage and make emergency repairs. 903 Additionally, unless 20 percent or more of the units are made 904 uninhabitable by the emergency, the special powers authorized 905 under subsection (1) may only be exercised during the term of 906 the Governor’s executive order or proclamation declaring the 907 state of emergency in the locale in which the condominium is 908 located. 909 Section 9. Subsection (1) of section 718.301, Florida 910 Statutes, is amended to read: 911 718.301 Transfer of association control; claims of defect 912 by association.— 913 (1) When unit owners other than the developer own 15 914 percent or more of the units in a condominium that will be 915 operated ultimately by an association, the unit owners other 916 than the developer shall be entitled to elect no less than one 917 third of the members of the board of administration of the 918 association. Unit owners other than the developer are entitled 919 to elect not less than a majority of the members of the board of 920 administration of an association: 921 (a) Three years after 50 percent of the units that will be 922 operated ultimately by the association have been conveyed to 923 purchasers; 924 (b) Three months after 90 percent of the units that will be 925 operated ultimately by the association have been conveyed to 926 purchasers; 927 (c) When all the units that will be operated ultimately by 928 the association have been completed, some of them have been 929 conveyed to purchasers, and none of the others are being offered 930 for sale by the developer in the ordinary course of business; 931 (d) When some of the units have been conveyed to purchasers 932 and none of the others are being constructed or offered for sale 933 by the developer in the ordinary course of business; 934 (e) When the developer files a petition seeking protection 935 in bankruptcy; 936 (f) When a receiver for the developer is appointed by a 937 circuit court and is not discharged within 30 days after such 938 appointment, unless the court determines within 30 days after 939 appointment of the receiver that transfer of control would be 940 detrimental to the association or its members; or 941 (g) Seven years after recordation of the declaration of 942 condominium; or, in the case of an association which may 943 ultimately operate more than one condominium, 7 years after 944 recordation of the declaration for the first condominium it 945 operates; or, in the case of an association operating a phase 946 condominium created pursuant to s. 718.403, 7 years after 947 recordation of the declaration creating the initial phase, 948 949 whichever occurs first. The developer is entitled to elect at 950 least one member of the board of administration of an 951 association as long as the developer holds for sale in the 952 ordinary course of business at least 5 percent, in condominiums 953 with fewer than 500 units, and 2 percent, in condominiums with 954 more than 500 units, of the units in a condominium operated by 955 the association. Following the time the developer relinquishes 956 control of the association, the developer may exercise the right 957 to vote any developer-owned units in the same manner as any 958 other unit owner except for purposes of reacquiring control of 959 the association or selecting the majority members of the board 960 of administration. 961 Section 10. Section 718.303, Florida Statutes, is amended 962 to read: 963 718.303 Obligations of owners and occupants; waiver; levy 964 of fines, suspension of use or voting rights, and other 965 nonexclusive remedies in law or equityfine against unitby an 966 association.— 967 (1) Each unit owner, each tenant and other invitee, and 968 each association shall be governed by, and shall comply with the 969 provisions of, this chapter, the declaration, the documents 970 creating the association, and the association bylaws and the 971 provisions thereof shall be deemed expressly incorporated into 972 any lease of a unit. Actions for damages or for injunctive 973 relief, or both, for failure to comply with these provisions may 974 be brought by the association or by a unit owner against: 975 (a) The association. 976 (b) A unit owner. 977 (c) Directors designated by the developer, for actions 978 taken by them prior to the time control of the association is 979 assumed by unit owners other than the developer. 980 (d) Any director who willfully and knowingly fails to 981 comply with these provisions. 982 (e) Any tenant leasing a unit, and any other invitee 983 occupying a unit. 984 985 The prevailing party in any such action or in any action in 986 which the purchaser claims a right of voidability based upon 987 contractual provisions as required in s. 718.503(1)(a) is 988 entitled to recover reasonable attorney’s fees. A unit owner 989 prevailing in an action between the association and the unit 990 owner under this section, in addition to recovering his or her 991 reasonable attorney’s fees, may recover additional amounts as 992 determined by the court to be necessary to reimburse the unit 993 owner for his or her share of assessments levied by the 994 association to fund its expenses of the litigation. This relief 995 does not exclude other remedies provided by law. Actions arising 996 under this subsection shall not be deemed to be actions for 997 specific performance. 998 (2) A provision of this chapter may not be waived if the 999 waiver would adversely affect the rights of a unit owner or the 1000 purpose of the provision, except that unit owners or members of 1001 a board of administration may waive notice of specific meetings 1002 in writing if provided by the bylaws. Any instruction given in 1003 writing by a unit owner or purchaser to an escrow agent may be 1004 relied upon by an escrow agent, whether or not such instruction 1005 and the payment of funds thereunder might constitute a waiver of 1006 any provision of this chapter. 1007 (3) If a unit owner is delinquent for more than 90 days in 1008 the payment of regular or special assessments or the declaration 1009 or bylaws so provide, the association may suspend, for a 1010 reasonable time, the right of a unit owner or a unit’s occupant, 1011 licensee, or invitee to use common elements, common facilities, 1012 or any other association property. This subsection does not 1013 apply to limited common elements intended to be used only by 1014 that unit, common elements that must be used to access the unit, 1015 utility services provided to the unit, parking spaces, or 1016 elevators. The association may also levy reasonable fines 1017against a unitfor the failure of the owner of the unit, or its 1018 occupant, licensee, or invitee, to comply with any provision of 1019 the declaration, the association bylaws, or reasonable rules of 1020 the association. No fine will become a lien against a unit. ANo1021 fine may not exceed $100 per violation. However, a fine may be 1022 levied on the basis of each day of a continuing violation, with 1023 a single notice and opportunity for hearing, provided that no 1024 such fine shall in the aggregate exceed $1,000. ANofine may 1025 not be levied and a suspension may not be imposed unless the 1026 association first givesexcept after givingreasonable notice 1027 and opportunity for a hearing to the unit owner and, if 1028 applicable, its occupant, licensee, or invitee. The hearing must 1029 be held before a committee of other unit owners who are neither 1030 board members nor persons residing in a board member’s 1031 household. If the committee does not agree with the fine or 1032 suspension, the fine or suspension may not be levied or imposed. 1033The provisions of this subsection do not apply to unoccupied1034units.1035 (4) The notice and hearing requirements of subsection (3) 1036 do not apply to the imposition of suspensions or fines against a 1037 unit owner or a unit’s occupant, licensee, or invitee because of 1038 the failure to pay any amounts due the association. If such a 1039 fine or suspension is imposed, the association must levy the 1040 fine or impose a reasonable suspension at a properly noticed 1041 board meeting, and after the imposition of such fine or 1042 suspension, the association must notify the unit owner and, if 1043 applicable, the unit’s occupant, licensee, or invitee by mail or 1044 hand delivery. 1045 Section 11. Subsection (1) of section 718.501, Florida 1046 Statutes, is amended, and subsection (3) is added to that 1047 section, to read: 1048 718.501 Authority, responsibility, and duties of Division 1049 of Florida Condominiums, Timeshares, and Mobile Homes.— 1050 (1) The Division of Florida Condominiums, Timeshares, and 1051 Mobile Homes of the Department of Business and Professional 1052 Regulation, referred to as the “division” in this part, has the 1053 power to enforce and ensure compliance with the provisions of 1054 this chapter and rules relating to the development, 1055 construction, sale, lease, ownership, operation, and management 1056 of residential condominium units. In performing its duties, the 1057 division has complete jurisdiction to investigate complaints and 1058 enforce compliance with the provisions of this chapter with 1059 respect to associations that are still under developer control 1060 and complaints against developers involving improper turnover or 1061 failure to turnover, pursuant to s. 718.301. However, after 1062 turnover has occurred, the division shall only have jurisdiction 1063 to investigate complaints related to financial issues, failure 1064 to maintain common elements, elections, and unit owner access to 1065 association records pursuant to s. 718.111(12). 1066 (a)1. The division may make necessary public or private 1067 investigations within or outside this state to determine whether 1068 any person has violated this chapter or any rule or order 1069 hereunder, to aid in the enforcement of this chapter, or to aid 1070 in the adoption of rules or forms hereunder. 1071 2. The division may submit any official written report, 1072 worksheet, or other related paper, or a duly certified copy 1073 thereof, compiled, prepared, drafted, or otherwise made by and 1074 duly authenticated by a financial examiner or analyst to be 1075 admitted as competent evidence in any hearing in which the 1076 financial examiner or analyst is available for cross-examination 1077 and attests under oath that such documents were prepared as a 1078 result of an examination or inspection conducted pursuant to 1079 this chapter. 1080 (b) The division may require or permit any person to file a 1081 statement in writing, under oath or otherwise, as the division 1082 determines, as to the facts and circumstances concerning a 1083 matter to be investigated. 1084 (c) For the purpose of any investigation under this 1085 chapter, the division director or any officer or employee 1086 designated by the division director may administer oaths or 1087 affirmations, subpoena witnesses and compel their attendance, 1088 take evidence, and require the production of any matter which is 1089 relevant to the investigation, including the existence, 1090 description, nature, custody, condition, and location of any 1091 books, documents, or other tangible things and the identity and 1092 location of persons having knowledge of relevant facts or any 1093 other matter reasonably calculated to lead to the discovery of 1094 material evidence. Upon the failure by a person to obey a 1095 subpoena or to answer questions propounded by the investigating 1096 officer and upon reasonable notice to all persons affected 1097 thereby, the division may apply to the circuit court for an 1098 order compelling compliance. 1099 (d) Notwithstanding any remedies available to unit owners 1100 and associations, if the division has reasonable cause to 1101 believe that a violation of any provision of this chapter or 1102 related rule has occurred, the division may institute 1103 enforcement proceedings in its own name against any developer, 1104 association, officer, or member of the board of administration, 1105 or its assignees or agents, as follows: 1106 1. The division may permit a person whose conduct or 1107 actions may be under investigation to waive formal proceedings 1108 and enter into a consent proceeding whereby orders, rules, or 1109 letters of censure or warning, whether formal or informal, may 1110 be entered against the person. 1111 2. The division may issue an order requiring the developer, 1112 association,developer-designatedofficer,ordeveloper1113designatedmember of the board of administration,developer1114designatedassignees or agents, community association manager, 1115 or community association management firm to cease and desist 1116 from the unlawful practice and take such affirmative action as 1117 in the judgment of the division will carry out the purposes of 1118 this chapter. If the division finds that a developer, 1119 association, officer, or member of the board of administration, 1120 or its assignees or agents, is violating or is about to violate 1121 any provision of this chapter, any rule adopted or order issued 1122 by the division, or any written agreement entered into with the 1123 division, and presents an immediate danger to the public 1124 requiring an immediate final order, it may issue an emergency 1125 cease and desist order reciting with particularity the facts 1126 underlying such findings. The emergency cease and desist order 1127 is effective for 90 days. If the division begins nonemergency 1128 cease and desist proceedings, the emergency cease and desist 1129 order remains effective until the conclusion of the proceedings 1130 under ss. 120.569 and 120.57. 1131 3. If a developer fails to pay any restitution determined 1132 by the division to be owed, plus any accrued interest at the 1133 highest rate permitted by law, within 30 days after expiration 1134 of any appellate time period of a final order requiring payment 1135 of restitution or the conclusion of any appeal thereof, 1136 whichever is later, the division shall bring an action in 1137 circuit or county court on behalf of any association, class of 1138 unit owners, lessees, or purchasers for restitution, declaratory 1139 relief, injunctive relief, or any other available remedy. The 1140 division may also temporarily revoke its acceptance of the 1141 filing for the developer to which the restitution relates until 1142 payment of restitution is made. 1143 4. The division may petition the court for the appointment 1144 of a receiver or conservator. If appointed, the receiver or 1145 conservator may take action to implement the court order to 1146 ensure the performance of the order and to remedy any breach 1147 thereof. In addition to all other means provided by law for the 1148 enforcement of an injunction or temporary restraining order, the 1149 circuit court may impound or sequester the property of a party 1150 defendant, including books, papers, documents, and related 1151 records, and allow the examination and use of the property by 1152 the division and a court-appointed receiver or conservator. 1153 5. The division may apply to the circuit court for an order 1154 of restitution whereby the defendant in an action brought 1155 pursuant to subparagraph 4. shall be ordered to make restitution 1156 of those sums shown by the division to have been obtained by the 1157 defendant in violation of this chapter. Such restitution shall, 1158 at the option of the court, be payable to the conservator or 1159 receiver appointed pursuant to subparagraph 4. or directly to 1160 the persons whose funds or assets were obtained in violation of 1161 this chapter. 1162 6. The division may impose a civil penalty against a 1163 developer or association, or its assignee or agent, for any 1164 violation of this chapter or a rule adopted under this chapter. 1165 The division may impose a civil penalty individually against any 1166 officer or board member who willfully and knowingly violates a 1167 provision of this chapter, adopted rule, or a final order of the 1168 division; may order the removal of such individual as an officer 1169 or from the board of administration or as an officer of the 1170 association; and may prohibit such individual from serving as an 1171 officer or on the board of a community association for a period 1172 of time. The term “willfully and knowingly” means that the 1173 division informed the officer or board member that his or her 1174 action or intended action violates this chapter, a rule adopted 1175 under this chapter, or a final order of the division and that 1176 the officer or board member refused to comply with the 1177 requirements of this chapter, a rule adopted under this chapter, 1178 or a final order of the division. The division, prior to 1179 initiating formal agency action under chapter 120, shall afford 1180 the officer or board member an opportunity to voluntarily comply 1181 with this chapter, a rule adopted under this chapter, or a final 1182 order of the division. An officer or board member who complies 1183 within 10 days is not subject to a civil penalty. A penalty may 1184 be imposed on the basis of each day of continuing violation, but 1185 in no event shall the penalty for any offense exceed $5,000. By 1186 January 1, 1998, the division shall adopt, by rule, penalty 1187 guidelines applicable to possible violations or to categories of 1188 violations of this chapter or rules adopted by the division. The 1189 guidelines must specify a meaningful range of civil penalties 1190 for each such violation of the statute and rules and must be 1191 based upon the harm caused by the violation, the repetition of 1192 the violation, and upon such other factors deemed relevant by 1193 the division. For example, the division may consider whether the 1194 violations were committed by a developer or owner-controlled 1195 association, the size of the association, and other factors. The 1196 guidelines must designate the possible mitigating or aggravating 1197 circumstances that justify a departure from the range of 1198 penalties provided by the rules. It is the legislative intent 1199 that minor violations be distinguished from those which endanger 1200 the health, safety, or welfare of the condominium residents or 1201 other persons and that such guidelines provide reasonable and 1202 meaningful notice to the public of likely penalties that may be 1203 imposed for proscribed conduct. This subsection does not limit 1204 the ability of the division to informally dispose of 1205 administrative actions or complaints by stipulation, agreed 1206 settlement, or consent order. All amounts collected shall be 1207 deposited with the Chief Financial Officer to the credit of the 1208 Division of Florida Condominiums, Timeshares, and Mobile Homes 1209 Trust Fund. If a developer fails to pay the civil penalty and 1210 the amount deemed to be owed to the association, the division 1211 shall issue an order directing that such developer cease and 1212 desist from further operation until such time as the civil 1213 penalty is paid or may pursue enforcement of the penalty in a 1214 court of competent jurisdiction. If an association fails to pay 1215 the civil penalty, the division shall pursue enforcement in a 1216 court of competent jurisdiction, and the order imposing the 1217 civil penalty or the cease and desist order will not become 1218 effective until 20 days after the date of such order. Any action 1219 commenced by the division shall be brought in the county in 1220 which the division has its executive offices or in the county 1221 where the violation occurred. 1222 7. If a unit owner presents the division with proof that 1223 the unit owner has requested access to official records in 1224 writing by certified mail, and that after 10 days the unit owner 1225 again made the same request for access to official records in 1226 writing by certified mail, and that more than 10 days has 1227 elapsed since the second request and the association has still 1228 failed or refused to provide access to official records as 1229 required by this chapter, the division shall issue a subpoena 1230 requiring production of the requested records where the records 1231 are kept pursuant to s. 718.112. 1232 8. In addition to subparagraph 6., the division may seek 1233 the imposition of a civil penalty through the circuit court for 1234 any violation for which the division may issue a notice to show 1235 cause under paragraph (r). The civil penalty shall be at least 1236 $500 but no more than $5,000 for each violation. The court may 1237 also award to the prevailing party court costs and reasonable 1238 attorney’s fees and, if the division prevails, may also award 1239 reasonable costs of investigation. 1240 9. Notwithstanding subparagraph 6., when the division finds 1241 that an officer or director has intentionally falsified 1242 association records with the intent to conceal material facts 1243 from the division, the board, or unit owners, the division shall 1244 prohibit the officer or director from acting as an officer or 1245 director of any condominium or cooperative association for at 1246 least 1 year. 1247 10. When the division finds that any person has derived an 1248 improper personal benefit from a condominium association, the 1249 division shall order the person to pay restitution to the 1250 association and shall order the person to pay to the division 1251 the costs of investigation and prosecution. 1252 (e) The division may prepare and disseminate a prospectus 1253 and other information to assist prospective owners, purchasers, 1254 lessees, and developers of residential condominiums in assessing 1255 the rights, privileges, and duties pertaining thereto. 1256 (f) The division has authority to adopt rules pursuant to 1257 ss. 120.536(1) and 120.54 to implement and enforce the 1258 provisions of this chapter. 1259 (g) The division shall establish procedures for providing 1260 notice to an association and the developer during the period 1261 where the developer controls the association when the division 1262 is considering the issuance of a declaratory statement with 1263 respect to the declaration of condominium or any related 1264 document governing in such condominium community. 1265 (h) The division shall furnish each association which pays 1266 the fees required by paragraph (2)(a) a copy of this act, 1267 subsequent changes to this act on an annual basis, an amended 1268 version of this act as it becomes available from the Secretary 1269 of State’s office on a biennial basis, and the rules adopted 1270 thereto on an annual basis. 1271 (i) The division shall annually provide each association 1272 with a summary of declaratory statements and formal legal 1273 opinions relating to the operations of condominiums which were 1274 rendered by the division during the previous year. 1275 (j) The division shall provide training and educational 1276 programs for condominium association board members and unit 1277 owners. The training may, in the division’s discretion, include 1278 web-based electronic media, and live training and seminars in 1279 various locations throughout the state. The division shall have 1280 the authority to review and approve education and training 1281 programs for board members and unit owners offered by providers 1282 and shall maintain a current list of approved programs and 1283 providers and shall make such list available to board members 1284 and unit owners in a reasonable and cost-effective manner. 1285 (k) The division shall maintain a toll-free telephone 1286 number accessible to condominium unit owners. 1287 (l) The division shall develop a program to certify both 1288 volunteer and paid mediators to provide mediation of condominium 1289 disputes. The division shall provide, upon request, a list of 1290 such mediators to any association, unit owner, or other 1291 participant in arbitration proceedings under s. 718.1255 1292 requesting a copy of the list. The division shall include on the 1293 list of volunteer mediators only the names of persons who have 1294 received at least 20 hours of training in mediation techniques 1295 or who have mediated at least 20 disputes. In order to become 1296 initially certified by the division, paid mediators must be 1297 certified by the Supreme Court to mediate court cases in county 1298 or circuit courts. However, the division may adopt, by rule, 1299 additional factors for the certification of paid mediators, 1300 which factors must be related to experience, education, or 1301 background. Any person initially certified as a paid mediator by 1302 the division must, in order to continue to be certified, comply 1303 with the factors or requirements imposed by rules adopted by the 1304 division. 1305 (m) When a complaint is made, the division shall conduct 1306 its inquiry with due regard to the interests of the affected 1307 parties. Within 30 days after receipt of a complaint, the 1308 division shall acknowledge the complaint in writing and notify 1309 the complainant whether the complaint is within the jurisdiction 1310 of the division and whether additional information is needed by 1311 the division from the complainant. The division shall conduct 1312 its investigation and shall, within 90 days after receipt of the 1313 original complaint or of timely requested additional 1314 information, take action upon the complaint. However, the 1315 failure to complete the investigation within 90 days does not 1316 prevent the division from continuing the investigation, 1317 accepting or considering evidence obtained or received after 90 1318 days, or taking administrative action if reasonable cause exists 1319 to believe that a violation of this chapter or a rule of the 1320 division has occurred. If an investigation is not completed 1321 within the time limits established in this paragraph, the 1322 division shall, on a monthly basis, notify the complainant in 1323 writing of the status of the investigation. When reporting its 1324 action to the complainant, the division shall inform the 1325 complainant of any right to a hearing pursuant to ss. 120.569 1326 and 120.57. 1327 (n) Condominium association directors, officers, and 1328 employees; condominium developers; community association 1329 managers; and community association management firms have an 1330 ongoing duty to reasonably cooperate with the division in any 1331 investigation pursuant to this section. The division shall refer 1332 to local law enforcement authorities any person whom the 1333 division believes has altered, destroyed, concealed, or removed 1334 any record, document, or thing required to be kept or maintained 1335 by this chapter with the purpose to impair its verity or 1336 availability in the department’s investigation. 1337 (o) The division may: 1338 1. Contract with agencies in this state or other 1339 jurisdictions to perform investigative functions; or 1340 2. Accept grants-in-aid from any source. 1341 (p) The division shall cooperate with similar agencies in 1342 other jurisdictions to establish uniform filing procedures and 1343 forms, public offering statements, advertising standards, and 1344 rules and common administrative practices. 1345 (q) The division shall consider notice to a developer to be 1346 complete when it is delivered to the developer’s address 1347 currently on file with the division. 1348 (r) In addition to its enforcement authority, the division 1349 may issue a notice to show cause, which shall provide for a 1350 hearing, upon written request, in accordance with chapter 120. 1351 (s) The division shall submit to the Governor, the 1352 President of the Senate, the Speaker of the House of 1353 Representatives, and the chairs of the legislative 1354 appropriations committees an annual report that includes, but 1355 need not be limited to, the number of training programs provided 1356 for condominium association board members and unit owners, the 1357 number of complaints received by type, the number and percent of 1358 complaints acknowledged in writing within 30 days and the number 1359 and percent of investigations acted upon within 90 days in 1360 accordance with paragraph (m), and the number of investigations 1361 exceeding the 90-day requirement. The annual report shall also 1362 include an evaluation of the division’s core business processes 1363 and make recommendations for improvements, including statutory 1364 changes. The report shall be submitted by September 30 following 1365 the end of the fiscal year. 1366 (3) The division shall create a booklet of the laws that a 1367 director must read as required by s. 718.112(2)(p)5. The booklet 1368 shall be available for free download from the division’s 1369 website. The division may provide a printed version to directors 1370 for free or for a cost not to exceed the division’s actual cost 1371 of production and mailing. 1372 Section 12. Subsection (9) of section 718.5012, Florida 1373 Statutes, is amended to read: 1374 718.5012 Ombudsman; powers and duties.—The ombudsman shall 1375 have the powers that are necessary to carry out the duties of 1376 his or her office, including the following specific powers: 1377 (9) To assist with the resolution of disputes between unit 1378 owners and the association or between unit owners when the 1379 dispute is not within the jurisdiction of the division to 1380 resolve or the division has declined to resolve a dispute. 1381 Section 13. Section 718.50151, Florida Statutes, is amended 1382 to read: 1383 718.50151 Community AssociationLivingStudy Council; 1384 membership functions.— 1385 (1) There is created the Community AssociationLivingStudy 1386 Council. The council shall consist of seven appointed members. 1387 Two members shall be appointed by the President of the Senate, 1388 two members shall be appointed by the Speaker of the House of 1389 Representatives, and three members shall be appointed by the 1390 Governor.One member that is appointed by the Governor may1391represent timeshare condominiums.The council shall be created 1392 as of October 1 every 5 years, commencing October 1, 2008, and 1393 shall exist for a 6-month term. The director of the division 1394 shall appoint an ex officio nonvoting member. The Legislature 1395 intends that the persons appointed represent a cross-section of 1396 persons experiencedinterestedin community association issues. 1397 The council shall be located within the division for 1398 administrative purposes. Members of the council shall serve 1399 without compensation but are entitled to receive per diem and 1400 travel expenses pursuant to s. 112.061 while on official 1401 business. 1402 (2) The functions of the council shall be to: 1403 (a) Receive, from the public, input regarding issues of 1404 concern with respect to community association living, including 1405 living in condominiums, cooperatives, and homeowners’ 1406 associations. The council shall make recommendations for changes 1407 in the law related to community association living. The issues 1408 that the council shall consider include, but are not limited to, 1409 the rights and responsibilities of the unit owners in relation 1410 to the rights and responsibilities of the association. 1411 (b) Review, evaluate, and advise the division concerning 1412 revisions and adoption of rules affecting condominiums and 1413 cooperatives. 1414 (c) Recommend improvements, if needed, in the education 1415 programs offered by the division. 1416 (d) Review, evaluate, and advise the Legislature concerning 1417 revisions and improvements to the laws relating to condominiums, 1418 cooperatives, and homeowners’ associations. 1419 (3) The council may elect a chair and vice chair and such 1420 other officers as it may deem advisable. The council shall meet 1421 at the call of its chair, at the request of a majority of its 1422 membership, at the request of the division, or at such times as 1423 it may prescribe. A majority of the members of the council shall 1424 constitute a quorum. Council action may be taken by vote of a 1425 majority of the voting members who are present at a meeting 1426 where there is a quorum. 1427 Section 14. Subsections (11) and (26) of section 719.103, 1428 Florida Statutes, are amended to read: 1429 719.103 Definitions.—As used in this chapter: 1430 (11) “Conspicuous type” means bold type in capital letters 1431 no smaller than the largest type, exclusive of headings, on the 1432 page on which it appears and, in all cases, at least 10-point 1433 type. When conspicuous type is required, it must be separated on 1434 all sides from other type and print. Conspicuous type may be 1435 used in a contract for purchase and sale of a unit, a lease of a 1436 unit for more than 5 years, or a prospectus or offering circular 1437 only when required by law. 1438 (26) “Unit owner,”or“owner of a unit,” or “shareholder” 1439 means the person holding a share in the cooperative association 1440 and a lease or other muniment of title or possession of a unit 1441 that is granted by the association as the owner of the 1442 cooperative property. 1443 Section 15. Section 719.104, Florida Statutes, is amended 1444 to read: 1445 719.104 The associationCooperatives; access to units;1446records; financial reports; assessments; purchase of leases.— 1447 (1) RIGHT OF ACCESS TO UNITS.—The association has the 1448 irrevocable right of access to each unit from time to time 1449 during reasonable hours when necessary for the maintenance, 1450 repair, or replacement of any structural components of the 1451 building or of any mechanical, electrical, or plumbing elements 1452 necessary to prevent damage to the building or to another unit. 1453 Except in cases of emergency, the association must give the 1454 shareholder advance written notice of not less than 24 hours of 1455 its intent to access the unit and such access must be by two 1456 persons, one of whom must be a member of the board of 1457 administration or a manager or employee of the association and 1458 one of whom must be an authorized representative of the 1459 association. The identity of the authorized representative 1460 seeking access to the unit must be provided to the unit owner 1461 prior to entering the unit. 1462 (2) OFFICIAL RECORDS.— 1463 (a) From the inception of the association, the association 1464 shall maintain a copy of each of the following, where 1465 applicable, which shall constitute the official records of the 1466 association: 1467 1. The plans, permits, warranties, and other items provided 1468 by the developer pursuant to s. 719.301(4). 1469 2. A photocopy of the cooperative documents. 1470 3. A copy of the current rules of the association. 1471 4. A book or books containing the minutes of all meetings 1472 of the association, of the board of directors, and of the 1473 shareholdersunit owners, which minutes shall be retained for a 1474 period of not less than 7 years. 1475 5. A current roster of all shareholdersunit ownersand 1476 their mailing addresses, unit identifications, voting 1477 certifications, and, if known, telephone numbers. The 1478 association shall also maintain the electronic mailing addresses 1479 and the numbers designated by shareholdersunit ownersfor 1480 receiving notice sent by electronic transmission of those 1481 shareholdersunit ownersconsenting to receive notice by 1482 electronic transmission. The electronic mailing addresses and 1483 numbers provided by shareholdersunit ownersto receive notice 1484 by electronic transmission shall be removed from association 1485 records when consent to receive notice by electronic 1486 transmission is revoked. However, the association is not liable 1487 for an erroneous disclosure of the electronic mail address or 1488 the number for receiving electronic transmission of notices. 1489 6. All current insurance policies of the association. 1490 7. A current copy of any management agreement, lease, or 1491 other contract to which the association is a party or under 1492 which the association or the shareholdersunit ownershave an 1493 obligation or responsibility. 1494 8. Bills of sale or transfer for all property owned by the 1495 association. 1496 9. Accounting records for the association and separate 1497 accounting records for each unit it operates, according to good 1498 accounting practices. Any person who knowingly or intentionally 1499 defaces or destroys accounting records required to be maintained 1500 by this chapter, or who knowingly or intentionally fails to 1501 create or maintain accounting records required to be maintained 1502 by this chapter, is personally subject to a civil penalty 1503 pursuant to s. 719.501(1)(d). All accounting records shall be 1504 maintained for a period of not less than 7 years. The accounting 1505 records shall include, but not be limited to: 1506 a. Accurate, itemized, and detailed records of all receipts 1507 and expenditures. 1508 b. A current account and a monthly, bimonthly, or quarterly 1509 statement of the account for each unit designating the name of 1510 the shareholderunit owner, the due date and amount of each 1511 assessment, the amount paid upon the account, and the balance 1512 due. 1513 c. All audits, reviews, accounting statements, and 1514 financial reports of the association. 1515 d. All contracts for work to be performed. Bids for work to 1516 be performed shall also be considered official records and shall 1517 be maintainedfor a period of 1 year. 1518 10. Ballots, sign-in sheets, voting proxies, and all other 1519 papers relating to voting by shareholdersunit owners, which 1520 shall be maintained for a period of 1 year after the date of the 1521 election, vote, or meeting to which the document relates. 1522 11. All rental records where the association is acting as 1523 agent for the rental of units. 1524 12. A copy of the current question and answer sheet as 1525 described in s. 719.504. 1526 13. All other records of the association not specifically 1527 included in the foregoing which are related to the operation of 1528 the association. 1529 (b) The official records of the association shall be 1530 maintained within the state for at least 7 years. The records of 1531 the association shall be made available to a shareholderunit1532ownerwithin 5 working days after receipt of written request by 1533 the board or its designee. This paragraph may be complied with 1534 by having a copy of the official records available for 1535 inspection or copying on the cooperative property. 1536 (c) The official records of the association shall be open 1537 to inspection by any association member or the authorized 1538 representative of such member at all reasonable times. Failure 1539 to permit inspection of the association records as provided 1540 herein entitles any person prevailing in an enforcement action 1541 to recover reasonable attorney’s fees from the person in control 1542 of the records who, directly or indirectly, knowingly denies 1543 access to the records for inspection. The right to inspect the 1544 records includes the right to make or obtain copies, at the 1545 reasonable expense, if any, of the association member. The 1546 association may adopt reasonable rules regarding the frequency, 1547 time, location, notice, and manner of record inspections and 1548 copying. The failure of an association to provide the records 1549 within 10 working days after receipt of a written request 1550 creates a rebuttable presumption that the association willfully 1551 failed to comply with this paragraph. A shareholderunit owner1552 who is denied access to official records is entitled to the 1553 actual damages or minimum damages for the association’s willful 1554 failure to comply with this paragraph. The minimum damages shall 1555 be $50 per calendar day up to 10 days, the calculation to begin 1556 on the 11th day after receipt of the written request. Any person 1557 who knowingly or intentionally defaces or destroys records that 1558 are required by this chapter, or knowingly or intentionally 1559 fails to create or maintain records that are required by this 1560 chapter, is personally subject to a civil penalty pursuant to s. 1561 719.501(1)(d). The association shall maintain an adequate number 1562 of copies of the cooperative documentsdeclaration, articles of 1563 incorporation, bylaws, and rules, and all amendments to each of 1564 the foregoing, as well as the question and answer sheet provided 1565 for in s. 719.504, on the cooperative property to ensure their 1566 availability to shareholdersunit ownersand prospective 1567 purchasers, and may charge its actual costs for preparing and 1568 furnishing these documents to those requesting the same. 1569 Notwithstanding the provisions of this paragraph, the following 1570 records shall not be accessible to shareholdersunit owners: 1571 1. A record that was prepared by an association attorney or 1572 prepared at the attorney’s express direction; that reflects a 1573 mental impression, conclusion, litigation strategy, or legal 1574 theory of the attorney or the association; or that was prepared 1575 exclusively for civil or criminal litigation or for adversarial 1576 administrative proceedings or in anticipation of imminent civil 1577 or criminal litigation or imminent adversarial administrative 1578 proceedings, until the conclusion of the litigation or 1579 adversarial administrative proceedings. 1580 2. Information obtained by an association in connection 1581 with the approval of the lease, sale, or other transfer of a 1582 unit. 1583 3. Medical records of shareholdersunit owners. 1584 4. Social security numbers, driver’s license numbers, 1585 credit card numbers, and other personal identifying information 1586 of any person. 1587 (d) The association or its authorized agent shall not be 1588 required to provide a prospective purchaser or lienholder with 1589 information about the cooperative or association other than the 1590 information or documents required by this chapter to be made 1591 available or disclosed. The association or its authorized agent 1592 shall be entitled to charge a reasonable fee to the prospective 1593 purchaser, lienholder, or the current shareholderunit ownerfor 1594 its time in providing good faith responses to requests for 1595 information by or on behalf of a prospective purchaser or 1596 lienholder, other than that required by law, provided that such 1597 fee shall not exceed $150 plus the reasonable cost of 1598 photocopying and any attorney’s fees incurred by the association 1599 in connection with the association’s response. An association 1600 and its authorized agent are not liable for providing such 1601 information in good faith pursuant to a written request if the 1602 person providing the information includes a written statement in 1603 substantially the following form: “The responses herein are made 1604 in good faith and to the best of my ability as to their 1605 accuracy.” 1606 (3) INSURANCE.—The association shall use its best efforts 1607 to obtain and maintain adequate insurance to protect the 1608 association property. The association may also obtain and 1609 maintain liability insurance for directors and officers, 1610 insurance for the benefit of association employees, and flood 1611 insurance. A copy of each policy of insurance in effect shall be 1612 made available for inspection by unit owners at reasonable 1613 times. 1614 (a) Windstorm insurance coverage for a group of no fewer 1615 than three communities created and operating under chapter 718, 1616 this chapter, chapter 720, or chapter 721 may be obtained and 1617 maintained for the communities if the insurance coverage is 1618 sufficient to cover an amount equal to the probable maximum loss 1619 for the communities for a 250-year windstorm event. Such 1620 probable maximum loss must be determined through the use of a 1621 competent model that has been accepted by the Florida Commission 1622 on Hurricane Loss Projection Methodology. Such insurance 1623 coverage is deemed adequate windstorm insurance for the purposes 1624 of this section. 1625 (b) An association or group of associations may self-insure 1626 against claims against the association, the association 1627 property, and the cooperative property required to be insured by 1628 an association, upon compliance with the applicable provisions 1629 of ss. 624.460-624.488, which shall be considered adequate 1630 insurance for purposes of this section. 1631 (4) FINANCIAL REPORTINGREPORT.—Within 90 days after the 1632 end of the fiscal year, or annually by a date provided in the 1633 bylaws, the association shall prepare and complete, or by 1634 contract have prepared and completed, a financial report for the 1635 preceding fiscal year. Within 21 days after the final financial 1636 report is completed by the association or received from the 1637 third party, but not later than 120 days after the end of the 1638 fiscal year or other date as provided in the bylaws, the 1639 association shall mail to each shareholder at the address last 1640 furnished to the association by the shareholder, or hand deliver 1641 to each shareholder, a copy of the financial report or a notice 1642 that a copy of the financial report will be mailed or hand 1643 delivered to the shareholder, without charge, upon receipt of a 1644 written request from the shareholder. The division shall adopt 1645 rules setting forth uniform accounting principles and standards 1646 to be used by all associations. The rules shall include, but not 1647 be limited to, uniform accounting principles and standards for 1648 stating the disclosure of at least a summary of the reserves, 1649 including information as to whether such reserves are being 1650 funded at a level sufficient to prevent the need for a special 1651 assessment and, if not, the amount of assessments necessary to 1652 bring the reserves up to the level necessary to avoid a special 1653 assessment. The person preparing the financial reports shall be 1654 entitled to rely on an inspection report prepared for or 1655 provided to the association to meet the fiscal and fiduciary 1656 standards of this chapter. In adopting such rules, the division 1657 shall consider the number of members and annual revenues of an 1658 association. Financial reports shall be prepared as follows: 1659 (a) An association that meets the criteria of this 1660 paragraph shall prepare or cause to be prepared a complete set 1661 of financial statements in accordance with generally accepted 1662 accounting principles. The financial statements shall be based 1663 upon the association’s total annual revenues, as follows: 1664 1. An association with total annual revenues of $100,000 or 1665 more, but less than $200,000, shall prepare compiled financial 1666 statements. 1667 2. An association with total annual revenues of at least 1668 $200,000, but less than $400,000, shall prepare reviewed 1669 financial statements. 1670 3. An association with total annual revenues of $400,000 or 1671 more shall prepare audited financial statements. 1672 (b)1. An association with total annual revenues of less 1673 than $100,000 shall prepare a report of cash receipts and 1674 expenditures. 1675 2. An association that operates fewer than 50 units, 1676 regardless of the association’s annual revenues, shall prepare a 1677 report of cash receipts and expenditures in lieu of financial 1678 statements required by paragraph (a). 1679 3. A report of cash receipts and disbursements must 1680 disclose the amount of receipts by accounts and receipt 1681 classifications and the amount of expenses by accounts and 1682 expense classifications, including, but not limited to, the 1683 following, as applicable: costs for security, professional and 1684 management fees and expenses, taxes, costs for recreation 1685 facilities, expenses for refuse collection and utility services, 1686 expenses for lawn care, costs for building maintenance and 1687 repair, insurance costs, administration and salary expenses, and 1688 reserves accumulated and expended for capital expenditures, 1689 deferred maintenance, and any other category for which the 1690 association maintains reserves. 1691 (c) An association may prepare or cause to be prepared, 1692 without a meeting of or approval by the shareholders: 1693 1. Compiled, reviewed, or audited financial statements, if 1694 the association is required to prepare a report of cash receipts 1695 and expenditures; 1696 2. Reviewed or audited financial statements, if the 1697 association is required to prepare compiled financial 1698 statements; or 1699 3. Audited financial statements, if the association is 1700 required to prepare reviewed financial statements. 1701 (d) If approved by a majority of the voting interests 1702 present at a properly called meeting of the association, an 1703 association may prepare or cause to be prepared: 1704 1. A report of cash receipts and expenditures in lieu of a 1705 compiled, reviewed, or audited financial statement; 1706 2. A report of cash receipts and expenditures or a compiled 1707 financial statement in lieu of a reviewed or audited financial 1708 statement; or 1709 3. A report of cash receipts and expenditures, a compiled 1710 financial statement, or a reviewed financial statement in lieu 1711 of an audited financial statement. 1712 1713 Such meeting and approval must occur prior to the end of the 1714 fiscal year and is effective only for the fiscal year in which 1715 the vote is taken, except that the approval also may be 1716 effective for the following fiscal year. With respect to an 1717 association to which the developer has not turned over control 1718 of the association, all shareholders, including the developer, 1719 may vote on issues related to the preparation of financial 1720 reports for the first 2 fiscal years of the association’s 1721 operation, beginning with the fiscal year in which the 1722 cooperative documents are recorded. Thereafter, all shareholders 1723 except the developer may vote on such issues until control is 1724 turned over to the association by the developer. Any audit or 1725 review prepared under this section shall be paid for by the 1726 developer if done prior to turnover of control of the 1727 association. An association may not waive the financial 1728 reporting requirements of this subsection for more than 3 1729 consecutive years. 1730(a) Within 60 days following the end of the fiscal or1731calendar year or annually on such date as is otherwise provided1732in the bylaws of the association, the board of administration of1733the association shall mail or furnish by personal delivery to1734each unit owner a complete financial report of actual receipts1735and expenditures for the previous 12 months, or a complete set1736of financial statements for the preceding fiscal year prepared1737in accordance with generally accepted accounting procedures. The1738report shall show the amounts of receipts by accounts and1739receipt classifications and shall show the amounts of expenses1740by accounts and expense classifications including, if1741applicable, but not limited to, the following:17421. Costs for security;17432. Professional and management fees and expenses;17443. Taxes;17454. Costs for recreation facilities;17465. Expenses for refuse collection and utility services;17476. Expenses for lawn care;17487. Costs for building maintenance and repair;17498. Insurance costs;17509. Administrative and salary expenses; and175110. Reserves for capital expenditures, deferred1752maintenance, and any other category for which the association1753maintains a reserve account or accounts.1754(b) The division shall adopt rules that may require that1755the association deliver to the unit owners, in lieu of the1756financial report required by this section, a complete set of1757financial statements for the preceding fiscal year. The1758financial statements shall be delivered within 90 days following1759the end of the previous fiscal year or annually on such other1760date as provided in the bylaws. The rules of the division may1761require that the financial statements be compiled, reviewed, or1762audited, and the rules shall take into consideration the1763criteria set forth in s.719.501(1)(j). The requirement to have1764the financial statements compiled, reviewed, or audited does not1765apply to associations if a majority of the voting interests of1766the association present at a duly called meeting of the1767association have determined for a fiscal year to waive this1768requirement. In an association in which turnover of control by1769the developer has not occurred, the developer may vote to waive1770the audit requirement for the first 2 years of the operation of1771the association, after which time waiver of an applicable audit1772requirement shall be by a majority of voting interests other1773than the developer. The meeting shall be held prior to the end1774of the fiscal year, and the waiver shall be effective for only1775one fiscal year. This subsection does not apply to a cooperative1776that consists of 50 or fewer units.1777 (5) ASSESSMENTS.—The association has the power to make and 1778 collect assessments and to lease, maintain, repair, and replace 1779 the common areas. However, the association may not charge a use 1780 fee against a shareholderthe unit ownerfor the use of common 1781 areas unless otherwise provided for in the cooperative documents 1782 or by a majority vote of the association or unless the charges 1783 relate to expenses incurred by a shareholderan ownerhaving 1784 exclusive use of common areas. 1785 (6) PURCHASE OF LEASES.—The association has the power to 1786 purchase any land or recreation lease upon the approval of such 1787 voting interest as is required by the cooperative documents. If 1788 the cooperative documents make no provision for acquisition of 1789 the land or recreational lease, the vote required is that 1790 required to amend the cooperative documents to permit the 1791 acquisition. 1792 (7) COMMINGLING.—All funds shall be maintained separately 1793 in the association’s name. Reserve and operating funds of the 1794 association shall not be commingled unless combined for 1795 investment purposes. This subsection is not meant to prohibit 1796 prudent investment of association funds even if combined with 1797 operating or other reserve funds of the same association, but 1798 such funds must be accounted for separately, and the combined 1799 account balance may not, at any time, be less than the amount 1800 identified as reserve funds in the combined account. No manager 1801 or business entity required to be licensed or registered under 1802 s. 468.432, or an agent, employee, officer, or director of a 1803 cooperative association may commingle any association funds with 1804 his or her own funds or with the funds of any other cooperative 1805 association or community association as defined in s. 468.431. 1806 (8) CORPORATE ENTITY.— 1807 (a) The operation of the cooperative shall be by the 1808 association, which must be a Florida corporation not for profit. 1809 The shareholders shall be members of the association. The 1810 officers and directors of the association have a fiduciary 1811 relationship to the shareholdersunit owners. It is the intent 1812 of the Legislature that nothing in this paragraph shall be 1813 construed as providing for or removing a requirement of a 1814 fiduciary relationship between any manager employed by the 1815 association and the shareholders. An officer, director, or 1816 manager may not solicit, offer to accept, or accept any thing or 1817 service of value for which consideration has not been provided 1818 for his or her own benefit or that of his or her immediate 1819 family, from any person providing or proposing to provide goods 1820 or services to the association. Any such officer, director, or 1821 manager who knowingly solicits, offers to accept, or accepts any 1822 thing or service of value is subject to a civil penalty pursuant 1823 to s. 719.501(1)(d). However, this paragraph does not prohibit 1824 an officer, director, or manager from accepting services or 1825 items received in connection with trade fairs or education 1826 programs. 1827 (b) A director of the association who is present at a 1828 meeting of its board at which action on any corporate matter is 1829 taken is presumed to have assented to the action taken unless 1830 the director votes against such action or abstains from voting 1831in respect thereto because of an asserted conflict of interest. 1832 A director of the association who abstains from voting on any 1833 action taken on any corporate matter shall be presumed to have 1834 taken no position with regard to the action. Directors may not 1835 vote by proxy or by secret ballot at board meetings, except that 1836 officers may be elected by secret ballot. A vote or abstention 1837 for each member present shall be recorded in the minutes. 1838 (c) A shareholderunit ownerdoes not have any authority to 1839 act for the association by reason of being a shareholderunit1840owner. 1841 (d) As required by s. 617.0830, an officer, director, or 1842 agent shall discharge his or her duties in good faith, with the 1843 care an ordinarily prudent person in a like position would 1844 exercise under similar circumstances, and in a manner he or she 1845 reasonably believes to be in the interests of the association. 1846 An officer, director, or agent shall be liable for monetary 1847 damages as provided in s. 617.0834 if the officer, director, or 1848 agent breached or failed to perform his or her duties and the 1849 breach of, or failure to perform, those duties constitutes a 1850 violation of criminal law as provided in s. 617.0834; 1851 constitutes a transaction from which the officer or director 1852 derived an improper personal benefit, either directly or 1853 indirectly; or constitutes recklessness or an act or omission 1854 that was in bad faith, with malicious purpose, or in a manner 1855 exhibiting wanton and willful disregard of human rights, safety, 1856 or property. 1857 (9) EASEMENTS.—Unless prohibited by the cooperative 1858 documents, the board of administration has the authority, 1859 without the joinder of any shareholderunit owner, to grant, 1860 modify, or move any easement, if the easement constitutes part 1861 of or crosses the common areas or association property. This 1862 subsection does not authorize the board of administration to 1863 modify, move, or vacate any easement created in whole or in part 1864 for the use or benefit of anyone other than the shareholders 1865unit owners, or crossing the property of anyone other than the 1866 shareholdersunit owners, without the consent or approval of 1867 those other persons having the use or benefit of the easement, 1868 as required by law or by the instrument creating the easement. 1869 (10) POWERS AND DUTIES.—The powers and duties of the 1870 association include those set forth in this section and, except 1871 as expressly limited or restricted in this chapter, those set 1872 forth in the articles of incorporation and bylaws and chapters 1873 607 and 617, as applicable. 1874 (11) NOTIFICATION OF DIVISION.—When the board of directors 1875 intends to dissolve or merge the cooperative association, the 1876 board shall so notify the division before taking any action to 1877 dissolve or merge the cooperative association. 1878 (12) POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT, 1879 SUE, BE SUED, AND BORROW MONEY.— 1880 (a) The association may contract, sue, or be sued with 1881 respect to the exercise or nonexercise of its powers. For these 1882 purposes, the powers of the association include, but are not 1883 limited to, the maintenance, management, and operation of the 1884 cooperative property. 1885 (b) After control of the association is obtained by 1886 shareholders other than the developer, the association may 1887 institute, maintain, settle, or appeal actions or hearings in 1888 its name on behalf of all shareholders concerning matters of 1889 common interest to most or all shareholders, including, but not 1890 limited to, the common areas; the roof and structural components 1891 of a building or other improvements; mechanical, electrical, and 1892 plumbing elements serving an improvement or a building; 1893 representations of the developer pertaining to any existing or 1894 proposed commonly used facilities; and protests of ad valorem 1895 taxes on commonly used facilities and units; and the association 1896 may defend actions in eminent domain or bring inverse 1897 condemnation actions. 1898 (c) If the association has the authority to maintain a 1899 class action, the association may be joined in an action as 1900 representative of that class with reference to litigation and 1901 disputes involving the matters for which the association could 1902 bring a class action. Nothing in this paragraph limits any 1903 statutory or common-law right of any individual shareholder or 1904 class of shareholders to bring any action without participation 1905 by the association which may otherwise be available. 1906 (13) TITLE TO PROPERTY.— 1907 (a) The association has the power to acquire title to 1908 property or otherwise hold, convey, lease, and mortgage 1909 association property for the use and benefit of its 1910 shareholders. The power to acquire personal property shall be 1911 exercised by the board of directors. Except as otherwise 1912 provided in subsections (6) and (14), an association may not 1913 acquire, convey, lease, or mortgage association real property 1914 except in the manner provided in the cooperative documents, and 1915 if the cooperative documents do not specify the procedure, then 1916 approval of 75 percent of the total voting interests shall be 1917 required. 1918 (b) Subject to the provisions of s. 719.106(1)(m), the 1919 association, through its board, has the limited power to convey 1920 a portion of the common areas to a condemning authority for the 1921 purposes of providing utility easements, right-of-way expansion, 1922 or other public purposes, whether negotiated or as a result of 1923 eminent domain proceedings. 1924 (14) PURCHASE OF UNITS.—The association has the power, 1925 unless prohibited by the cooperative documents, to purchase 1926 units in the cooperative and to acquire and hold, lease, 1927 mortgage, and convey the units. There shall be no limitation on 1928 the association’s right to purchase a unit at a foreclosure sale 1929 resulting from the association’s foreclosure of its lien for 1930 unpaid assessments or to take title by deed in lieu of 1931 foreclosure. 1932 (15) MEETINGS.—Regular meetings of the board of directors 1933 shall be held at such time and place as provided in the bylaws 1934 until the first regular meeting of the board held on or after 1935 October 1, 2010. Thereafter, the location and time for regular 1936 meetings of the board shall be determined by a majority vote of 1937 the shareholders at the next regular meeting held on or after 1938 October 1, 2010. Once the time and place for regular meetings of 1939 the board have been selected, neither may be changed unless 1940 approved by a majority vote of the shareholders. Regular 1941 meetings of the board of directors held on weekdays may be held 1942 no earlier than 6 p.m. local time. 1943 (16) LIMIT ON EXPENDITURES AND CONTRIBUTIONS.—It shall be 1944 unlawful for an association to make any expenditure of 1945 association funds or to make any in-kind contribution of 1946 association assets which does not relate to the purposes for 1947 which the association is organized. 1948 (a) The association shall not make any contribution to a 1949 campaign or committee of continuous existence governed by 1950 chapter 105 or chapter 106. 1951 (b) The association shall not make any contribution to a 1952 charitable organization if the association does not receive a 1953 direct benefit from the organization. 1954 (c) Members of the board of administration shall be jointly 1955 and severely liable to reimburse the association for any 1956 contribution, expenditure, or in-kind contribution made in 1957 violation of this subsection. 1958 Section 16. Section 719.106, Florida Statutes, is amended 1959 to read: 1960 719.106 Bylaws; cooperative ownership.— 1961 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 1962 documents shall provide for the following, and if they do not, 1963 they shall be deemed to include the following: 1964 (a) Administration.— 1965 1. The form of administration of the association shall be 1966 described, indicating the titles of the officers and board of 1967 administration and specifying the powers, duties, manner of 1968 selection and removal, and compensation, if any, of officers and 1969 board members. In the absence of such a provision, the board of 1970 administration shall be composed of five members, except in the 1971 case of cooperatives having five or fewer units, in which case 1972 in not-for-profit corporations, the board shall consist of not 1973 fewer than three members. In the absence of provisions to the 1974 contrary, the board of administration shall have a president, a 1975 secretary, and a treasurer, who shall perform the duties of 1976 those offices customarily performed by officers of corporations. 1977 Unless prohibited in the bylaws, the board of administration may 1978 appoint other officers and grant them those duties it deems 1979 appropriate. Unless otherwise provided in the bylaws, the 1980 officers shall serve without compensation and at the pleasure of 1981 the board. Unless otherwise provided in the bylaws, the members 1982 of the board shall serve without compensation. 1983 2. When a shareholderunit ownerfiles a written inquiry by 1984 certified mail with the board of administration, the board shall 1985 respond in writing to the shareholderunit ownerwithin 30 days 1986 of receipt of the inquiry. The board’s response shall either 1987 give a substantive response to the inquirer, notify the inquirer 1988 that a legal opinion has been requested, or notify the inquirer 1989 that advice has been requested from the division. If the board 1990 requests advice from the division, the board shall, within 10 1991 days of its receipt of the advice, provide in writing a 1992 substantive response to the inquirer. If a legal opinion is 1993 requested, the board shall, within 60 days after the receipt of 1994 the inquiry, provide in writing a substantive response to the 1995 inquirer. The failure to provide a substantive response to the 1996 inquirer as provided herein precludes the board from recovering 1997 attorney’s fees and costs in any subsequent litigation, 1998 administrative proceeding, or arbitration arising out of the 1999 inquiry. The association may, through its board of 2000 administration, adopt reasonable rules and regulations regarding 2001 the frequency and manner of responding to the shareholders’unit2002owners’inquiries, one of which may be that the association is 2003 obligated to respond to only one written inquiry per unit in any 2004 given 30-day period. In such case, any additional inquiry or 2005 inquiries must be responded to in the subsequent 30-day period, 2006 or periods, as applicable. 2007 (b) Quorum; voting requirements; proxies.— 2008 1. Unless otherwise provided in the bylaws, the percentage 2009 of voting interests required to constitute a quorum at a meeting 2010 of the members shall be a majority of voting interests, and 2011 decisions shall be made by owners of a majority of the voting 2012 interests. Unless otherwise provided in this chapter, or in the 2013 articles of incorporation, bylaws, or other cooperative 2014 documents, and except as provided in subparagraph (d)1., 2015 decisions shall be made by owners of a majority of the voting 2016 interests represented at a meeting at which a quorum is present. 2017 2. Except as specifically otherwise provided herein, after 2018 January 1, 1992, shareholdersunit ownersmay not vote by 2019 general proxy, but may vote by limited proxies substantially 2020 conforming to a limited proxy form adopted by the division. 2021 Limited proxies and general proxies may be used to establish a 2022 quorum. Limited proxies shall be used for votes taken to waive 2023 or reduce reserves in accordance with subparagraph (j)2., for 2024 votes taken to waive the financial reporting requirements of s. 2025 719.104(4)(b), for votes taken to amend the articles of 2026 incorporation or bylaws pursuant to this section, and for any 2027 other matter for which this chapter requires or permits a vote 2028 of the shareholdersunit owners. Except as provided in paragraph 2029 (d), after January 1, 1992, no proxy, limited or general, shall 2030 be used in the election of board members. General proxies may be 2031 used for other matters for which limited proxies are not 2032 required, and may also be used in voting for nonsubstantive 2033 changes to items for which a limited proxy is required and 2034 given. Notwithstanding the provisions of this section, 2035 shareholdersunit ownersmay vote in person at shareholderunit2036ownermeetings. Nothing contained herein shall limit the use of 2037 general proxies or require the use of limited proxies or require 2038 the use of limited proxies for any agenda item or election at 2039 any meeting of a timeshare cooperative. 2040 3. Any proxy given shall be effective only for the specific 2041 meeting for which originally given and any lawfully adjourned 2042 meetings thereof. In no event shall any proxy be valid for a 2043 period longer than 90 days after the date of the first meeting 2044 for which it was given. Every proxy shall be revocable at any 2045 time at the pleasure of the shareholderunit ownerexecuting it. 2046 4. A member of the board of administration or a committee 2047 may submit in writing his or her agreement or disagreement with 2048 any action taken at a meeting that the member did not attend. 2049 This agreement or disagreement may not be used as a vote for or 2050 against the action taken and may not be used for the purposes of 2051 creating a quorum. 2052 5. When some or all of the board or committee members meet 2053 by telephone conference, those board or committee members 2054 attending by telephone conference may be counted toward 2055 obtaining a quorum and may vote by telephone. A telephone 2056 speaker shall be utilized so that the conversation of those 2057 board or committee members attending by telephone may be heard 2058 by the board or committee members attending in person, as well 2059 as by shareholdersunit ownerspresent at a meeting. 2060 (c) Board of administration meetings.—Meetings of the board 2061 of administration at which a quorum of the members is present 2062 shall be open to all shareholdersunit owners. Any shareholder 2063unit ownermay tape record or videotape meetings of the board of 2064 administration. The right to attend such meetings includes the 2065 right to speak at such meetings with reference to all designated 2066 agenda items. The division shall adopt reasonable rules 2067 governing the tape recording and videotaping of the meeting. The 2068 association may adopt reasonable written rules governing the 2069 frequency, duration, and manner of shareholderunit owner2070 statements. Adequate notice of all meetings shall be posted in a 2071 conspicuous place upon the cooperative property at least 48 2072 continuous hours preceding the meeting, except in an emergency. 2073 If 20 percent of the voting interests petition the board to 2074 address an item of business, the board shall at its next regular 2075 board meeting or at a special meeting of the board, but not 2076 later than 60 days after the receipt of the petition, place the 2077 item on the agenda. Any item not included on the notice may be 2078 taken up on an emergency basis by at least a majority plus one 2079 of the members of the board. Such emergency action shall be 2080 noticed and ratified at the next regular meeting of the board. 2081 However, written notice of any meeting at which nonemergency 2082 special assessments, or at which amendment to rules regarding 2083 unit use, will be considered shall be mailed, delivered, or 2084 electronically transmitted to the shareholdersunit ownersand 2085 posted conspicuously on the cooperative property not less than 2086 14 days prior to the meeting. Evidence of compliance with this 2087 14-day notice shall be made by an affidavit executed by the 2088 person providing the notice and filed among the official records 2089 of the association. Upon notice to the shareholdersunit owners, 2090 the board shall by duly adopted rule designate a specific 2091 location on the cooperative property upon which all notices of 2092 board meetings shall be posted. In lieu of or in addition to the 2093 physical posting of notice of any meeting of the board of 2094 administration on the cooperative property, the association may, 2095 by reasonable rule, adopt a procedure for conspicuously posting 2096 and repeatedly broadcasting the notice and the agenda on a 2097 closed-circuit cable television system serving the cooperative 2098 association. However, if broadcast notice is used in lieu of a 2099 notice posted physically on the cooperative property, the notice 2100 and agenda must be broadcast at least four times every broadcast 2101 hour of each day that a posted notice is otherwise required 2102 under this section. When broadcast notice is provided, the 2103 notice and agenda must be broadcast in a manner and for a 2104 sufficient continuous length of time so as to allow an average 2105 reader to observe the notice and read and comprehend the entire 2106 content of the notice and the agenda. Notice of any meeting in 2107 which regular or special assessments against shareholdersunit2108ownersare to be considered for any reason shall specifically 2109 statecontain a statementthat assessments will be considered 2110 and the nature of, the actual cost of, and a description of the 2111 purposes foranysuch assessments. Meetings of a committee to 2112 take final action on behalf of the board or to make 2113 recommendations to the board regarding the association budget 2114 are subject to the provisions of this paragraph. Meetings of a 2115 committee that does not take final action on behalf of the board 2116 or make recommendations to the board regarding the association 2117 budget are subject to the provisions of this section, unless 2118 those meetings are exempted from this section by the bylaws of 2119 the association. Notwithstanding any other law to the contrary, 2120 the requirement that board meetings and committee meetings be 2121 open to the shareholdersunit ownersis inapplicable to meetings 2122 between the board or a committee and the association’s attorney, 2123 with respect to proposed or pending litigation, when the meeting 2124 is held for the purpose of seeking or rendering legal advice. 2125 (d) Shareholder meetings.—There shall be an annual meeting 2126 of the shareholders held at the location provided in the 2127 association bylaws and, if the bylaws are silent as to the 2128 location, the meeting shall be held within 45 miles of the 2129 cooperative property. However, such distance requirement does 2130 not apply to an association governing a timeshare cooperative. 2131 All members of the board of administration shall be elected at 2132 the first annual meeting after July 1, 2010, and annually 2133 thereafter, except that ifunlessthe bylaws provide for 2134 staggered election terms of no more than 2 years, the 2135 association board members may serve 2-year staggered terms. If 2136 no person is interested in or demonstrates an intention to run 2137 for the position of a board member whose term has expired, the 2138 board member whose term has expired shall be automatically 2139 reappointed to the board of administration and need not stand 2140 for reelectionor for their election at another meeting. Any 2141 shareholderunit ownerdesiring to be a candidate for board 2142 membership mustshallcomply with subparagraph 1. The bylaws 2143 shall provide the method for calling meetings, including annual 2144 meetings. Written notice, which notice shall incorporate an 2145 identification of agenda items, shall be given to each 2146 shareholderunit ownerat least 14 days prior to the annual 2147 meeting and shall be posted in a conspicuous place on the 2148 cooperative property at least 14 continuous days preceding the 2149 annual meeting. Upon notice to the shareholdersunit owners, the 2150 board shall by duly adopted rule designate a specific location 2151 on the cooperative property upon which all notice of shareholder 2152unit ownermeetings shall be posted. In lieu of or in addition 2153 to the physical posting of notice of any meeting of the 2154 shareholders on the cooperative property, the association may, 2155 by reasonable rule, adopt a procedure for conspicuously posting 2156 and repeatedly broadcasting the notice and the agenda on a 2157 closed-circuit cable television system serving the cooperative 2158 association. However, if broadcast notice is used in lieu of a 2159 notice posted physically on the cooperative property, the notice 2160 and agenda must be broadcast at least four times every broadcast 2161 hour of each day that a posted notice is otherwise required 2162 under this section. When broadcast notice is provided, the 2163 notice and agenda must be broadcast in a manner and for a 2164 sufficient continuous length of time so as to allow an average 2165 reader to observe the notice and read and comprehend the entire 2166 content of the notice and the agenda. Unless a shareholderunit2167ownerwaives in writing the right to receive notice of the 2168 annual meeting, the notice of the annual meeting shall be sent 2169 by mail, hand delivered, or electronically transmitted to each 2170 shareholderunit owner. An officer of the association shall 2171 provide an affidavit or United States Postal Service certificate 2172 of mailing, to be included in the official records of the 2173 association, affirming that notices of the association meeting 2174 were mailed, hand delivered, or electronically transmitted, in 2175 accordance with this provision, to each shareholderunit owner2176 at the address last furnished to the association. 2177 1. After January 1, 1992, the board of administration shall 2178 be elected by written ballot or voting machine. Proxies shall in 2179 no event be used in electing the board of administration, either 2180 in general elections or elections to fill vacancies caused by 2181 recall, resignation, or otherwise unless otherwise provided in 2182 this chapter. Not less than 60 days before a scheduled election, 2183 the association shall mail, deliver, or transmit, whether by 2184 separate association mailing, delivery, or electronic 2185 transmission or included in another association mailing, 2186 delivery, or electronic transmission, including regularly 2187 published newsletters, to each shareholderunit ownerentitled 2188 to vote, a first notice of the date of the election. Any 2189 shareholderunit owneror other eligible person desiring to be a 2190 candidate for the board of administration shall give written 2191 notice to the association not less than 40 days before a 2192 scheduled election. Together with the written notice and agenda 2193 as set forth in this section, the association shall mail, 2194 deliver, or electronically transmit a second notice of election 2195 to all shareholdersunit ownersentitled to vote therein, 2196 together with a ballot which shall list all candidates. Upon 2197 request of a candidate, the association shall include an 2198 information sheet, no larger than 8 1/2 inches by 11 inches, 2199 which must be furnished by the candidate not less than 35 days 2200 prior to the election, to be included with the mailing, 2201 delivery, or electronic transmission of the ballot, with the 2202 costs of mailing, delivery, or transmission and copying to be 2203 borne by the association. The association has no liability for 2204 the contents of the information sheets provided by the 2205 candidates. In order to reduce costs, the association may print 2206 or duplicate the information sheets on both sides of the paper. 2207 The division shall by rule establish voting procedures 2208 consistent with the provisions contained herein, including rules 2209 establishing procedures for giving notice by electronic 2210 transmission and rules providing for the secrecy of ballots. 2211 Elections shall be decided by a plurality of those ballots cast. 2212 There shall be no quorum requirement. However, at least 20 2213 percent of the eligible voters must cast a ballot in order to 2214 have a valid election of members of the board of administration. 2215 No shareholderunit ownershall permit any other person to vote 2216 his or her ballot, and any such ballots improperly cast shall be 2217 deemed invalid. A shareholderunit ownerwho needs assistance in 2218 casting the ballot for the reasons stated in s. 101.051 may 2219 obtain assistance in casting the ballot. Any shareholderunit2220ownerviolating this provision may be fined by the association 2221 in accordance with s. 719.303. The regular election shall occur 2222 on the date of the annual meeting. The provisions of this 2223 subparagraph shall not apply to timeshare cooperatives. 2224 Notwithstanding the provisions of this subparagraph, an election 2225 and balloting are not required unless more candidates file a 2226 notice of intent to run or are nominated than vacancies exist on 2227 the board. 2228 2. Any approval by shareholdersunit ownerscalled for by 2229 this chapter, or the applicable cooperative documents, shall be 2230 made at a duly noticed meeting of shareholdersunit ownersand 2231 shall be subject to all requirements of this chapter or the 2232 applicable cooperative documents relating to shareholderunit2233ownerdecisionmaking, except that shareholdersunit ownersmay 2234 take action by written agreement, without meetings, on matters 2235 for which action by written agreement without meetings is 2236 expressly allowed by the applicable cooperative documents or any 2237 Florida statute which provides for the shareholderunit owner2238 action. 2239 3. ShareholdersUnit ownersmay waive notice of specific 2240 meetings if allowed by the applicable cooperative documents or 2241 any Florida statute. If authorized by the bylaws, notice of 2242 meetings of the board of administration, shareholder meetings, 2243 except shareholder meetings called to recall board members under 2244 paragraph (f), and committee meetings may be given by electronic 2245 transmission to shareholdersunit ownerswho consent to receive 2246 notice by electronic transmission. 2247 4. ShareholdersUnit ownersshall have the right to 2248 participate in meetings of shareholdersunit ownerswith 2249 reference to all designated agenda items. However, the 2250 association may adopt reasonable rules governing the frequency, 2251 duration, and manner of shareholderunit ownerparticipation. 2252 5. Any shareholderunit ownermay tape record or videotape 2253 meetings of the shareholdersunit ownerssubject to reasonable 2254 rules adopted by the division. 2255 2256 Notwithstanding subparagraphs (b)2. and (d)1., an association of 2257 10 or fewer units may, by the affirmative vote of a majority of 2258 the total voting interests, provide for a different voting and 2259 election procedure in its bylaws, which vote may be by a proxy 2260 specifically delineating the different voting and election 2261 procedures. The different voting and election procedures may 2262 provide for elections to be conducted by limited or general 2263 proxy. 2264 (e) Budget procedures.— 2265 1. The board of administration shall mail, hand deliver, or 2266 electronically transmit to each shareholderunit ownerat the 2267 address last furnished to the association, a meeting notice and 2268 copies of the proposed annual budget of common expenses to the 2269 shareholdersunit ownersnot less than 14 days prior to the 2270 meeting at which the budget will be considered. Evidence of 2271 compliance with this 14-day notice must be made by an affidavit 2272 executed by an officer of the association or the manager or 2273 other person providing notice of the meeting and filed among the 2274 official records of the association. The meeting must be open to 2275 the shareholdersunit owners. 2276 2. If an adopted budget requires assessment against the 2277 shareholdersunit ownersin any fiscal or calendar year which 2278 exceeds 115 percent of the assessments for the preceding year, 2279 the board upon written application of 10 percent of the voting 2280 interests to the board, shall call a special meeting of the 2281 shareholdersunit ownerswithin 30 days, upon not less than 10 2282 days’ written notice to each shareholderunit owner. At the 2283 special meeting, shareholdersunit ownersshall consider and 2284 enact a budget. Unless the bylaws require a larger vote, the 2285 adoption of the budget requires a vote of not less than a 2286 majority of all the voting interests. 2287 3. The board of administration may, in any event, propose a 2288 budget to the shareholdersunit ownersat a meeting of members 2289 or by writing, and if the budget or proposed budget is approved 2290 by the shareholdersunit ownersat the meeting or by a majority 2291 of all voting interests in writing, the budget is adopted. If a 2292 meeting of the shareholdersunit ownershas been called and a 2293 quorum is not attained or a substitute budget is not adopted by 2294 the shareholdersunit owners, the budget adopted by the board of 2295 directors goes into effect as scheduled. 2296 4. In determining whether assessments exceed 115 percent of 2297 similar assessments for prior years, any authorized provisions 2298 for reasonable reserves for repair or replacement of cooperative 2299 property, anticipated expenses by the association which are not 2300 anticipated to be incurred on a regular or annual basis, or 2301 assessments for betterments to the cooperative property must be 2302 excluded from computation. However, as long as the developer is 2303 in control of the board of administration, the board may not 2304 impose an assessment for any year greater than 115 percent of 2305 the prior fiscal or calendar year’s assessment without approval 2306 of a majority of all voting interests. 2307 (f) Recall of board members.—Subject to the provisions of 2308 s. 719.301, any member of the board of administration may be 2309 recalled and removed from office with or without cause by the 2310 vote or agreement in writing by a majority of all the voting 2311 interests. A special meeting of the voting interests to recall 2312 any member of the board of administration may be called by 10 2313 percent of the shareholdersunit ownersgiving notice of the 2314 meeting as required for a meeting of shareholdersunit owners, 2315 and the notice shall state the purpose of the meeting. 2316 Electronic transmission may not be used as a method of giving 2317 notice of a meeting called in whole or in part for this purpose. 2318 1. If the recall is approved by a majority of all voting 2319 interests by a vote at a meeting, the recall shall be effective 2320 as provided herein. The board shall duly notice and hold a board 2321 meeting within 5 full business days of the adjournment of the 2322 shareholderunit ownermeeting to recall one or more board 2323 members. At the meeting, the board shall either certify the 2324 recall, in which case such member or members shall be recalled 2325 effective immediately and shall turn over to the board within 5 2326 full business days any and all records and property of the 2327 association in their possession, or shall proceed as set forth 2328 in subparagraph 3. 2329 2. If the proposed recall is by an agreement in writing by 2330 a majority of all voting interests, the agreement in writing or 2331 a copy thereof shall be served on the association by certified 2332 mail or by personal service in the manner authorized by chapter 2333 48 and the Florida Rules of Civil Procedure. The board of 2334 administration shall duly notice and hold a meeting of the board 2335 within 5 full business days after receipt of the agreement in 2336 writing. At the meeting, the board shall either certify the 2337 written agreement to recall members of the board, in which case 2338 such members shall be recalled effective immediately and shall 2339 turn over to the board, within 5 full business days, any and all 2340 records and property of the association in their possession, or 2341 proceed as described in subparagraph 3. 2342 3. If the board determines not to certify the written 2343 agreement to recall members of the board, or does not certify 2344 the recall by a vote at a meeting, the board shall, within 5 2345 full business days after the board meeting, file with the 2346 division a petition for binding arbitration pursuant to the 2347 procedures of s. 719.1255. For purposes of this paragraph, the 2348 shareholdersunit ownerswho voted at the meeting or who 2349 executed the agreement in writing shall constitute one party 2350 under the petition for arbitration. If the arbitrator certifies 2351 the recall as to any member of the board, the recall shall be 2352 effective upon mailing of the final order of arbitration to the 2353 association. If the association fails to comply with the order 2354 of the arbitrator, the division may take action pursuant to s. 2355 719.501. Any member so recalled shall deliver to the board any 2356 and all records and property of the association in the member’s 2357 possession within 5 full business days of the effective date of 2358 the recall. 2359 4. If the board fails to duly notice and hold a board 2360 meeting within 5 full business days of service of an agreement 2361 in writing or within 5 full business days of the adjournment of 2362 the shareholderunit ownerrecall meeting, the recall shall be 2363 deemed effective and the board members so recalled shall 2364 immediately turn over to the board any and all records and 2365 property of the association. 2366 5. If a vacancy occurs on the board as a result of a recall 2367 or removal and less than a majority of the board members are 2368 removed, the vacancy may be filled by the affirmative vote of a 2369 majority of the remaining directors, notwithstanding any 2370 provision to the contrary contained in this chapter. If 2371 vacancies occur on the board as a result of a recall and a 2372 majority or more of the board members are removed, the vacancies 2373 shall be filled in accordance with procedural rules to be 2374 adopted by the division, which rules need not be consistent with 2375 this chapter. The rules must provide procedures governing the 2376 conduct of the recall election as well as the operation of the 2377 association during the period after a recall but prior to the 2378 recall election. 2379 (g) Common expenses.—The manner of collecting from the 2380 shareholdersunit ownerstheir shares of the common expenses 2381 shall be stated. Assessments shall be made against shareholders 2382unit ownersnot less frequently than quarterly, in an amount no 2383 less than is required to provide funds in advance for payment of 2384 all of the anticipated current operating expense and for all of 2385 the unpaid operating expense previously incurred. Nothing in 2386 this paragraph shall preclude the right of an association to 2387 accelerate assessments of a shareholderan ownerdelinquent in 2388 payment of common expenses in actions taken pursuant to s. 2389 719.104(5)(4). 2390 (h) Amendment of bylaws.— 2391 1. The method by which the bylaws may be amended consistent 2392 with the provisions of this chapter shall be stated. If the 2393 bylaws fail to provide a method of amendment, the bylaws may be 2394 amended if the amendment is approved by shareholdersownersof 2395 not less than two-thirds of the voting interests. 2396 2. No bylaw shall be revised or amended by reference to its 2397 title or number only. Proposals to amend existing bylaws shall 2398 contain the full text of the bylaws to be amended; new words 2399 shall be inserted in the text underlined, and words to be 2400 deleted shall be lined through with hyphens. However, if the 2401 proposed change is so extensive that this procedure would 2402 hinder, rather than assist, the understanding of the proposed 2403 amendment, it is not necessary to use underlining and hyphens as 2404 indicators of words added or deleted, but, instead, a notation 2405 must be inserted immediately preceding the proposed amendment in 2406 substantially the following language: “Substantial rewording of 2407 bylaw. See bylaw .... for present text.” 2408 3. Nonmaterial errors or omissions in the bylaw process 2409 shall not invalidate an otherwise properly promulgated 2410 amendment. 2411 4. If the bylaws provide for amendment by the board of 2412 directors, no bylaw may be amended unless it is heard and 2413 noticed at two consecutive meetings of the board of directors 2414 which are at least 1 week apart. 2415 (i) Transfer fees.—No charge may be made by the association 2416 or any body thereof in connection with the sale, mortgage, 2417 lease, sublease, or other transfer of a unit unless the 2418 association is required to approve such transfer and a fee for 2419 such approval is provided for in the cooperative documents. Any 2420 such fee may be preset, but in no event shall it exceed $100 per 2421 applicant other than husband/wife or parent/dependent child, 2422 which are considered one applicant. However, if the lease or 2423 sublease is a renewal of a lease or sublease with the same 2424 lessee or sublessee, no charge shall be made. Nothing in this 2425 paragraph shall be construed to prohibit an association from 2426 requiring as a condition to permitting the letting or renting of 2427 a unit, when the association has such authority in the 2428 documents, the depositing into an escrow account maintained by 2429 the association a security deposit in an amount not to exceed 2430 the equivalent of 1 month’s rent. The security deposit shall 2431 protect against damages to the common areas or cooperative 2432 property. Within 15 days after a tenant vacates the premises, 2433 the association shall refund the full security deposit or give 2434 written notice to the tenant of any claim made against the 2435 security. Disputes under this paragraph shall be handled in the 2436 same fashion as disputes concerning security deposits under s. 2437 83.49. 2438 (j) Annual budget.— 2439 1. The proposed annual budget of estimated revenues and 2440commonexpenses shall be detailed and shall show the amounts 2441 budgeted by accounts and expense classifications, including, if 2442 applicable, but not limited to, those expenses listed in s. 2443 719.504(20). 2444 2. In addition to annual operating expenses, the budget 2445 shall include reserve accounts for capital expenditures and 2446 deferred maintenance. These accounts shall include, but not be 2447 limited to, roof replacement, building painting, and pavement 2448 resurfacing, regardless of the amount of deferred maintenance 2449 expense or replacement cost, and for any other items for which 2450 the deferred maintenance expense or replacement cost exceeds 2451 $10,000. The amount to be reserved shall be computed by means of 2452 a formula which is based upon estimated remaining useful life 2453 and estimated replacement cost or deferred maintenance expense 2454 of each reserve item. The association may adjust replacement 2455 reserve assessments annually to take into account any changes in 2456 estimates or extension of the useful life of a reserve item 2457 caused by deferred maintenance. This paragraph shall not apply 2458 to any budget in which the members of an association have, at a 2459 duly called meeting of the association, determined for a fiscal 2460 year to provide no reserves or reserves less adequate than 2461 required by this subsection. However, prior to turnover of 2462 control of an association by a developer to shareholdersunit2463ownersother than a developer pursuant to s. 719.301, the 2464 developer may vote to waive the reserves or reduce the funding 2465 of reserves for the first 2 years of the operation of the 2466 association after which time reserves may only be waived or 2467 reduced upon the vote of a majority of all nondeveloper voting 2468 interests voting in person or by limited proxy at a duly called 2469 meeting of the association. If a meeting of the shareholders 2470unit ownershas been called to determine to provide no reserves, 2471 or reserves less adequate than required, and such result is not 2472 attained or a quorum is not attained, the reserves as included 2473 in the budget shall go into effect. 2474 3. Reserve funds and any interest accruing thereon shall 2475 remain in the reserve account or accounts, and shall be used 2476 only for authorized reserve expenditures unless their use for 2477 other purposes is approved in advance by a vote of the majority 2478 of the voting interests, voting in person or by limited proxy at 2479 a duly called meeting of the association. Prior to turnover of 2480 control of an association by a developer to shareholdersunit2481ownersother than the developer under s. 719.301, the developer 2482 may not vote to use reserves for purposes other than that for 2483 which they were intended without the approval of a majority of 2484 all nondeveloper voting interests, voting in person or by 2485 limited proxy at a duly called meeting of the association. 2486 4. The only voting interests that are eligible to vote on 2487 questions that involve waiving or reducing the funding of 2488 reserves, or using existing reserve funds for purposes other 2489 than purposes for which the reserves were intended, are the 2490 voting interests of the units subject to assessment to fund the 2491 reserves in question. Proxy questions relating to waiving or 2492 reducing the funding of reserves or using existing reserve funds 2493 for purposes other than purposes for which the reserves were 2494 intended shall contain the following statement in capitalized, 2495 bold letters in a font size larger than any other used on the 2496 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 2497 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 2498 RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED 2499 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 2500 (k) Insurance or fidelity bonds.—The association shall 2501 obtain and maintain adequate insurance or fidelity bonding of 2502 all persons who control or disburse funds of the association. 2503 The insurance policy or fidelity bond must cover the maximum 2504 funds that will be in the custody of the association or its 2505 management agent at any one time. As used in this paragraph, the 2506 term “persons who control or disburse funds of the association” 2507 includes, but is not limited to, those individuals authorized to 2508 sign checks, and the president, secretary, and treasurer of the 2509 association. The association shall bear the cost of bonding and 2510 insurance. 2511 (l) Arbitration.—There shall be a provision for mandatory 2512 nonbinding arbitration of internal disputes arising from the 2513 operation of the cooperative in accordance with s. 719.1255. 2514 (m) Common areas; limited power to convey.— 2515 1. The bylaws shall include a provision granting the 2516 association a limited power to convey a portion of the common 2517 areas to a condemning authority for the purpose of providing 2518 utility easements, right-of-way expansion, or other public 2519 purposes, whether negotiated or as a result of eminent domain 2520 proceedings. 2521 2. In any case in which the bylaws are silent as to the 2522 association’s power to convey common areas as described in 2523 subparagraph 1., the bylaws shall be deemed to include the 2524 provision described in subparagraph 1. 2525 (n) Director or officer delinquencies.—A director or 2526 officer more than 90 days delinquent in the payment of regular 2527 assessments shall be deemed to have abandoned his or her office, 2528 creating a vacancy in the office to be filled according to law. 2529 (o) Director or officer offenses.—A director or officer 2530 charged by information or indictment with a felony theft or 2531 embezzlement offense involving the association’s funds or 2532 property shall be removed from office, creating a vacancy in the 2533 office to be filled according to law. While such director or 2534 officer has such criminal charge pending in the state or federal 2535 court system, he or she may not be appointed or elected to a 2536 position as a director or officer. However, should the charges 2537 be resolved without a finding of guilt, the director or officer 2538 shall be reinstated for the remainder of his or her term of 2539 office, if any. 2540 (p) Qualifications of directors.—In addition to any other 2541 requirement for office in statute, a person running for, seeking 2542 appointment to, or serving as a director of the board must meet 2543 the following qualifications: 2544 1. In a cooperative association of 10 or more units, only 2545 one individual coowner of a unit may serve on the board of 2546 administration. 2547 2. No person may serve as a director of any cooperative 2548 association in the state if restricted from serving by action of 2549 the division pursuant to s. 719.501. 2550 3. A person who has been convicted of any felony in this 2551 state or in a United States District or Territorial Court, or 2552 who has been convicted of any offense in another jurisdiction 2553 which would be considered a felony if committed in this state, 2554 is not eligible for board membership unless such felon’s civil 2555 rights have been restored for a period of no less than 5 years 2556 as of the date on which such person seeks election to the board. 2557 4. A director more than 90 days delinquent in the payment 2558 of regular assessments shall be deemed to have abandoned his or 2559 her office. 2560 5. Within 30 days after being elected or appointed to the 2561 board of directors, a director shall certify in writing to the 2562 secretary of the association that he or she has read this part 2563 and part III and the association’s cooperative documents, 2564 bylaws, and current written policies. The director shall further 2565 certify that he or she will work to uphold such documents and 2566 policies to the best of his or her ability and that he or she 2567 will faithfully discharge his or her fiduciary responsibility to 2568 the association’s members. If the division finds that a director 2569 has falsely certified that he or she has read the required 2570 statutes and documents, the division shall order the director 2571 removed from the board and shall order the director to reimburse 2572 the division for the cost of prosecution and hearing. 2573 6. After turnover of the association pursuant to s. 2574 719.301(4), a director must: 2575 a. If the unit is owned by an individual or individuals, be 2576 one of those individuals. 2577 b. If the unit is owned by a trust, be an individual 2578 qualified pursuant to s. 617.0802. 2579 2580 These qualifications shall operate on a continuing basis, and 2581 upon the failure of a director at any time to meet a 2582 qualification, the director shall be removed from office and 2583 that office shall be deemed vacant. 2584 (q) Borrowing.—The borrowing of funds or committing to a 2585 line of credit by the board of administration shall be 2586 considered a special assessment, and any meeting of the board of 2587 administration to discuss such matters must be noticed as 2588 provided in paragraph (c). The board may not borrow funds or 2589 enter into a line of credit or borrow funds for any purpose 2590 unless the specific use of the funds from the loan or line of 2591 credit is set forth in the notice of meeting with the same 2592 specificity as required for a special assessment or unless the 2593 borrowing or line of credit has received the prior approval of 2594 at least two-thirds of the voting interests of the association. 2595 (2) OPTIONAL PROVISIONS.—The bylaws may provide for the 2596 following: 2597 (a) Administrative rules.—A method of adopting and of 2598 amending administrative rules and regulations governing the 2599 details of the operation and use of the common areas. 2600 (b) Use and maintenance restrictions.—Restrictions on, and 2601 requirements for, the use, maintenance, and appearance of the 2602 units and the use of the common areas, not inconsistent with the 2603 cooperative documents, designed to prevent unreasonable 2604 interference with the use of the units and common areas. 2605 (c) Notice of meetings.—Provisions for giving notice by 2606 electronic transmissions in a manner authorized by law of 2607 meetings of the board of directors and committees and of annual 2608 and special meetings of the members. 2609 (d) Other matters.—Other provisions not inconsistent with 2610 this chapter or with the cooperative documents as may be 2611 desired. 2612 Section 17. Section 719.1064, Florida Statutes, is 2613 repealed. 2614 Section 18. Paragraphs (b) and (c) of subsection (1) and 2615 subsection (2) of section 719.107, Florida Statutes, are 2616 amended, and subsection (3) is added to that section, to read: 2617 719.107 Common expenses; assessment.— 2618 (1) 2619 (b) If so provided in the bylaws, the cost of a master 2620 antenna television system or duly franchised cable television 2621 service obtained pursuant to a bulk contract shall be deemed a 2622 common expense, and if not obtained pursuant to a bulk contract, 2623 such cost shall be considered common expense if it is designated 2624 as such in a written contract between the board of 2625 administration and the company providing the master television 2626 antenna system or the cable television service. The contract 2627 shall be for a term of not less than 2 years. 2628 1. Any contract made by the board after April 2, 1992, for 2629 a community antenna system or duly franchised cable television 2630 service may be canceled by a majority of the voting interests 2631 present at the next regular or special meeting of the 2632 association. Any member may make a motion to cancel the 2633 contract, but if no motion is made or if such motion fails to 2634 obtain the required majority at the next regular or special 2635 meeting, whichever is sooner, following the making of the 2636 contract, then such contract shall be deemed ratified for the 2637 term therein expressed. 2638 2. Any such contract shall provide, and shall be deemed to 2639 provide if not expressly set forth, that any hearing impaired or 2640 legally blind shareholderunit ownerwho does not occupy the 2641 unit with a nonhearing impaired or sighted person may 2642 discontinue the service without incurring disconnect fees, 2643 penalties, or subsequent service charges, and as to such units, 2644 the shareholdersownersshall not be required to pay any common 2645 expenses charge related to such service. If less than all 2646 members of an association share the expenses of cable 2647 television, the expense shall be shared equally by all 2648 participating shareholdersunit owners. The association may use 2649 the provisions of s. 719.108 to enforce payment of the shares of 2650 such costs by the shareholdersunit ownersreceiving cable 2651 television. 2652 (c) If any unpaid share of common expenses or assessments 2653 is extinguished by foreclosure of a superior lien or by a deed 2654 in lieu of foreclosure thereof, the unpaid share of common 2655 expenses or assessments are common expenses collectible from all 2656 the shareholdersunit ownersin the cooperative in which the 2657 unit is located. 2658 (2) Funds for the payment of common expenses shall be 2659 collected by assessments against shareholdersunit ownersin the 2660 proportions or percentages of sharing common expenses provided 2661 in the cooperative documents. 2662 (3) The expense of installation, replacement, operation, 2663 repair, and maintenance of hurricane shutters or other hurricane 2664 protection by the board pursuant to s. 719.113(5) shall 2665 constitute a common expense as defined in this section and shall 2666 be collected as provided in this section if the association is 2667 responsible for the maintenance, repair, and replacement of the 2668 hurricane shutters or other hurricane protection pursuant to the 2669 cooperative documents. However, if the maintenance, repair, and 2670 replacement of the hurricane shutters or other hurricane 2671 protection is the responsibility of the shareholders pursuant to 2672 the cooperative documents, the cost of the installation of the 2673 hurricane shutters or other hurricane protection shall not be a 2674 common expense, but shall be charged individually to the 2675 shareholders based on the cost of installation of the hurricane 2676 shutters or other hurricane protection appurtenant to the unit. 2677 Notwithstanding the provisions of s. 719.108(8), and regardless 2678 of whether or not the cooperative documents require the 2679 association or shareholders to maintain, repair, or replace 2680 hurricane shutters or other hurricane protection, a shareholder 2681 who has previously installed hurricane shutters in accordance 2682 with s. 719.113(5), other hurricane protection, or laminated 2683 glass architecturally designed to function as hurricane 2684 protection, which hurricane shutters or other hurricane 2685 protection or laminated glass complies with the current 2686 applicable building code, shall receive a credit equal to the 2687 pro rata portion of the assessed installation cost assigned to 2688 each unit. However, such shareholder shall remain responsible 2689 for the pro rata share of expenses for hurricane shutters or 2690 other hurricane protection installed on common areas by the 2691 board pursuant to s. 719.113(5) and shall remain responsible for 2692 a pro rata share of the expense of the replacement, operation, 2693 repair, and maintenance of such shutters or other hurricane 2694 protection. 2695 Section 19. Section 719.108, Florida Statutes, is amended 2696 to read: 2697 719.108 Rents and assessments; liability; lien and 2698 priority; interest; collection; cooperative ownership.— 2699 (1) A shareholderunit owner, regardless of how title is 2700 acquired, including, without limitation, a purchaser at a 2701 judicial sale, shall be liable for all rents and assessments 2702 coming due while the shareholderunit owneris in exclusive 2703 possession of a unit.In a voluntary transfer,The shareholder 2704unit ownerin exclusive possession shall be jointly and 2705 severally liable with the previous shareholderunit ownerfor 2706 all unpaid rents and assessments against the previous 2707 shareholderunit ownerfor his or her share of the common 2708 expenses up to the time of the transfer, without prejudice to 2709 the rights of the shareholderunit ownerin exclusive possession 2710 to recover from atheprevious shareholderunit ownerthe 2711 amounts paid by the shareholderunit ownerin exclusive 2712 possession therefor. 2713 (2) The liability for rents and assessments may not be 2714 avoided by waiver of the use or enjoyment of any common areas or 2715 by abandonment of the unit for which the rents and assessments 2716 are made. 2717 (3) Rents and assessments, and installments on them, not 2718 paid when due bear interest at the rate provided in the 2719 cooperative documents from the date due until paid. This rate 2720 may not exceed the rate allowed by law, and, if no rate is 2721 provided in the cooperative documents, then interest shall 2722 accrue at 18 percent per annum. Also, if the cooperative 2723 documents or bylaws so provide, the association may charge an 2724 administrative late fee in addition to such interest, in an 2725 amount not to exceed the greater of $25 or 5 percent of each 2726 installment of the assessment for each delinquent installment 2727 that the payment is late. Any payment received by an association 2728 shall be applied first to any interest accrued by the 2729 association, then to any administrative late fee, then to any 2730 costs and reasonable attorney’s fees incurred in collection, and 2731 then to the delinquent assessment. The foregoing shall be 2732 applicable notwithstanding any restrictive endorsement, 2733 designation, or instruction placed on or accompanying a payment. 2734 A late fee is not subject to chapter 687 or s. 719.303(3). 2735 (4) If the association is authorized by the cooperative 2736 documents or bylaws to approve or disapprove a proposed lease of 2737 a unit, the grounds for disapproval may include, but are not 2738 limited to, a shareholder being delinquent in the payment of an 2739 assessment at the time approval is sought. 2740 (5)(a)(4)The association hasshall havea lien on each 2741 cooperative parcel to secure the payment offorany unpaid rents 2742 and assessments, plus interest, against the shareholder who owns 2743unit owner ofthe cooperative parcel. If authorized by the 2744 cooperative documents, thesaidlien shall also secure 2745 reasonable attorney’s fees incurred by the association incident 2746 to the collection of the rents and assessments or enforcement of 2747 such lien. The lien is effective from and shall relate back to 2748and afterthe recording of the cooperative documentsa claim of2749lien in the public records in the county in which the2750cooperative parcel is located which states the description of2751the cooperative parcel, the name of the unit owner, the amount2752due, and the due dates. 2753 (b) To be valid, a claim of lien must state the description 2754 of the cooperative parcel, the name of the record owner, the 2755 name and address of the association, the amount due, and the due 2756 dates. The claim of lien must be executed and acknowledged by an 2757 officer or authorized agent of the association. The lien shall 2758 expire if a claim of lien is not filed within 1 year after the 2759 date the assessment was due, and no such lien shall continue for 2760 a longer period than 1 year after the claim of lien has been 2761 recorded unless, within that time, an action to enforce the lien 2762 is commenced in a court of competent jurisdiction. The 1-year 2763 period shall automatically be extended for any length of time 2764 during which the association is prevented from filing a 2765 foreclosure action by an automatic stay resulting from a 2766 bankruptcy petition filed by the shareholder or any other person 2767 claiming an interest in the parcel. The claim of lien shall 2768 secure all unpaid assessments that are due and that may accrue 2769 subsequent to the recording of the claim of lien and prior to 2770 the entry of a certificate of title, as well as interest and all 2771 reasonable costs and attorney’s fees incurred by the association 2772 incident to the collection process. A notice of delinquency sent 2773 to a shareholder shall provide an overall total of assessments 2774 claimed by the association and shall specify for each assessment 2775 or charge the date of the assessment or charge, the principal 2776 balance owed for the assessment or charge, and affiliated late 2777 fees or collection charges. Costs to a shareholder secured by 2778 the association’s claim of lien with regard to collection 2779 efforts by management companies or licensed managers as to any 2780 delinquent installment of an assessment may not exceed $50. 2781 However, there shall be no charge for the first notice of a 2782 delinquency to the shareholder. Upon payment in full, the person 2783 making the payment is entitled to a satisfaction of the lien.No2784lien may be filed by the association against a cooperative2785parcel until 30 days after the date on which a notice of intent2786to file a lien has been served on the unit owner of the2787cooperative parcel by certified mail or by personal service in2788the manner authorized by chapter 48 and the Florida Rules of2789Civil Procedure.2790 (c) By recording a notice in substantially the following 2791 form, a shareholder or the shareholder’s agent or attorney may 2792 require the association to enforce a recorded claim of lien 2793 against his or her cooperative parcel: 2794 2795 NOTICE OF CONTEST OF LIEN 2796 2797 TO: (Name and address of association) You are notified 2798 that the undersigned contests the claim of lien filed by you on 2799 _____, (year) , and recorded in Official Records Book _____ at 2800 Page _____, of the public records of _____ County, Florida, and 2801 that the time within which you may file suit to enforce your 2802 lien is limited to 90 days after the date of service of this 2803 notice. Executed this _____ day of _____, (year) . 2804 2805 Signed: (Shareholder or Attorney) 2806 2807 After notice of contest of lien has been recorded, the clerk of 2808 the circuit court shall mail a copy of the recorded notice to 2809 the association by certified mail, return receipt requested, at 2810 the address shown in the claim of lien or most recent amendment 2811 to the claim of lien and shall certify to the service on the 2812 face of the notice. Service is complete upon mailing. After 2813 service, the association has 90 days in which to file an action 2814 to enforce the lien; and, if the action is not filed within the 2815 90-day period, the lien is void. However, the 90-day period 2816 shall be extended for any length of time that the association is 2817 prevented from filing its action because of an automatic stay 2818 resulting from the filing of a bankruptcy petition by the 2819 shareholder or by any other person claiming an interest in the 2820 parcel. 2821 (6)(a)(5)Liens for rents and assessments may be foreclosed 2822 by suit brought in the name of the association, in like manner 2823 as a foreclosure of a mortgage on real property. In any 2824 foreclosure, the shareholderunit ownershall pay a reasonable 2825 rental for the cooperative parcel, if so provided in the 2826 cooperative documents, and the plaintiff in the foreclosure is 2827 entitled to the appointment of a receiver to collect the rent. 2828 The association has the power, unless prohibited by the 2829 cooperative documents, to bid on the cooperative parcel at the 2830 foreclosure sale and to acquire and hold, lease, mortgage, or 2831 convey it. Suit to recover a money judgment for unpaid rents and 2832 assessments may be maintained without waiving the lien securing 2833 them. 2834 (b) A foreclosure judgment may not be entered until at 2835 least 30 days after the association gives written notice to the 2836 shareholder of its intention to foreclose its lien to collect 2837 the unpaid rents and assessments. If this notice is not given at 2838 least 30 days before the foreclosure action is filed and if the 2839 unpaid rents and assessments, including those coming due after 2840 the claim of lien is recorded, are paid before the entry of a 2841 final judgment of foreclosure, the association may not recover 2842 attorney’s fees or costs. The notice must be given by delivery 2843 of a copy of it to the shareholder or by certified or registered 2844 mail, return receipt requested, addressed to the shareholder at 2845 his or her last known address; and, upon such mailing, the 2846 notice shall be deemed to have been given, and the court shall 2847 proceed with the foreclosure action and may award attorney’s 2848 fees and costs as permitted by law. The notice requirements of 2849 this paragraph are satisfied if the shareholder records a notice 2850 of contest of lien as provided in subsection (5). The notice 2851 requirements of this paragraph do not apply if an action to 2852 foreclose a mortgage on the cooperative unit is pending before 2853 any court; if the rights of the association would be affected by 2854 such foreclosure; and if actual, constructive, or substitute 2855 service of process has been made on the shareholder. 2856 (c) If the shareholder remains in possession of the unit 2857 after a foreclosure judgment has been entered, the court, in its 2858 discretion, may require the shareholder to pay a reasonable 2859 rental for the unit. If the unit is rented or leased during the 2860 pendency of the foreclosure action, the association is entitled 2861 to the appointment of a receiver to collect the rent. The 2862 expenses of the receiver shall be paid by the party that does 2863 not prevail in the foreclosure action. 2864 (d) The association has the power to purchase the 2865 cooperative unit at the foreclosure sale and to hold, lease, 2866 mortgage, or convey it. 2867 (7) Within 15 days after receiving a written request 2868 therefor from a shareholder or his or her designee, or a unit 2869 mortgagee or his or her designee, the association shall provide 2870 a certificate signed by an officer or agent of the association 2871 stating all assessments and other moneys owed to the association 2872 by the shareholder with respect to the cooperative parcel. 2873 (a) Any person other than the shareholder who relies upon 2874 such certificate shall be protected thereby. 2875 (b) A summary proceeding pursuant to s. 51.011 may be 2876 brought to compel compliance with this subsection, and in any 2877 such action the prevailing party is entitled to recover 2878 reasonable attorney’s fees. 2879 (c) Notwithstanding any limitation on transfer fees 2880 contained in s. 719.106(1)(i), the association or its authorized 2881 agent may charge a reasonable fee for the preparation of the 2882 certificate. The amount of the fee must be included on the 2883 certificate. 2884 (d) The authority to charge a fee for the certificate shall 2885 be established by a written resolution adopted by the board or 2886 provided by a written management, bookkeeping, or maintenance 2887 contract and is payable upon the preparation of the certificate. 2888 If the certificate is requested in conjunction with the sale or 2889 mortgage of a unit but the closing does not occur and no later 2890 than 30 days after the closing date for which the certificate 2891 was sought the preparer receives a written request, accompanied 2892 by reasonable documentation, that the sale did not occur from a 2893 payor that is not the shareholder, the fee shall be refunded to 2894 that payor within 30 days after receipt of the request. The 2895 refund is the obligation of the shareholder, and the association 2896 may collect the refund from that shareholder in the same manner 2897 as an assessment as provided in this section. 2898(6) Within 15 days after request by a unit owner or2899mortgagee, the association shall provide a certificate stating2900all assessments and other moneys owed to the association by the2901unit owner with respect to the cooperative parcel. Any person2902other than the unit owner who relies upon such certificate shall2903be protected thereby. Notwithstanding any limitation on transfer2904fees contained in s.719.106(1)(i), the association or its2905authorized agent may charge a reasonable fee for the preparation2906of the certificate.2907(7) The remedies provided in this section do not exclude2908other remedies provided by the cooperative documents and2909permitted by law.2910 (8)(a) No shareholderunit ownermay be excused from the 2911 payment of his or her share of the rents or assessments of a 2912 cooperative unless all shareholdersunit ownersare likewise 2913 proportionately excused from payment, exceptas provided in2914subsection (6) andin the following cases: 2915 1. If the cooperative documents so provide, a developer or 2916 other person owning cooperative units offered for sale may be 2917 excused from the payment of the share of the common expenses, 2918 assessments, and rents related to those units for a stated 2919 period of time. The period must terminate no later than the 2920 first day of the fourth calendar month following the month in 2921 which the right of exclusive possession is first granted to a 2922 shareholderunit owner. However, the developer must pay the 2923 portion of common expenses incurred during that period which 2924 exceed the amount assessed against other shareholdersunit2925owners. 2926 2. A developer, or other person with an ownership interest 2927 in cooperative units or having an obligation to pay common 2928 expenses, may be excused from the payment of his or her share of 2929 the common expenses which would have been assessed against those 2930 units during the period of time that he or she shall have 2931 guaranteed to each purchaser in the purchase contract or in the 2932 cooperative documents, or by agreement between the developer and 2933 a majority of the shareholdersunit ownersother than the 2934 developer, that the assessment for common expenses of the 2935 cooperative imposed upon the shareholdersunit ownerswould not 2936 increase over a stated dollar amount and shall have obligated 2937 himself or herself to pay any amount of common expenses incurred 2938 during that period and not produced by the assessments at the 2939 guaranteed level receivable from other shareholdersunit owners. 2940 (b) If the purchase contract, cooperative documents, or 2941 agreement between the developer and a majority of shareholders 2942unit ownersother than the developer provides for the developer 2943 or another person to be excused from the payment of assessments 2944 pursuant to paragraph (a), no funds receivable from shareholders 2945unit ownerspayable to the association or collected by the 2946 developer on behalf of the association, other than regular 2947 periodic assessments for common expenses as provided in the 2948 cooperative documents and disclosed in the estimated operating 2949 budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may 2950 be used for payment of common expenses prior to the expiration 2951 of the period during which the developer or other person is so 2952 excused. This restriction applies to funds including, but not 2953 limited to, capital contributions or startup funds collected 2954 from shareholdersunit purchasersat closing. 2955 (9) The specific purposes of any special assessment, 2956 including any contingent special assessment levied in 2957 conjunction with the purchase of an insurance policy authorized 2958 by s. 719.104(3), approved in accordance with the cooperative 2959 documents shall be set forth in a written notice of such 2960 assessment sent or delivered to each shareholderunit owner. The 2961 funds collected pursuant to a special assessment shall be used 2962 only for the specific purpose or purposes set forth in such 2963 notice or returned to the shareholdersunit owners. However, 2964 upon completion of such specific purposes, any excess funds 2965 shall be considered common surplus and may, at the discretion of 2966 the board, either be returned to the shareholdersunit ownersor 2967 applied as a credit toward future assessments. 2968 (10) During the pendency of any foreclosure action of a 2969 cooperative unit, if the unit is occupied by a tenant and the 2970 shareholder is delinquent in the payment of regular assessments, 2971 the association may demand that the tenant pay to the 2972 association the future regular assessments related to the 2973 cooperative unit. The demand shall be continuing in nature, and 2974 upon demand the tenant shall continue to pay the regular 2975 assessments to the association until the association releases 2976 the tenant or the tenant discontinues tenancy in the unit. The 2977 association shall mail written notice to the shareholder of the 2978 association’s demand that the tenant pay regular assessments to 2979 the association. The tenant shall not be liable for increases in 2980 the amount of the regular assessment due unless the tenant was 2981 reasonably notified of the increase prior to the day that the 2982 rent is due. The tenant shall be given a credit against rents 2983 due to the shareholder in the amount of assessments paid to the 2984 association. The association shall, upon request, provide the 2985 tenant with written receipts for payments made. The association 2986 may issue notices under s. 83.56 and may sue for eviction under 2987 ss. 83.59-83.625 as if the association were a landlord under 2988 part II of chapter 83 should the tenant fail to pay an 2989 assessment. However, the association shall not otherwise be 2990 considered a landlord under chapter 83 and shall specifically 2991 not have any duty under s. 83.51. The tenant shall not, by 2992 virtue of payment of assessments, have any of the rights of a 2993 shareholder to vote in any election or to examine the books and 2994 records of the association. A court may supersede the effect of 2995 this subsection by appointing a receiver. 2996 Section 20. Section 719.113, Florida Statutes, is created 2997 to read: 2998 719.113 Maintenance; limitation upon improvement; display 2999 of flag; hurricane shutters; display of religious decorations.— 3000 (1) Maintenance of the common areas is the responsibility 3001 of the association. The cooperative documents may provide that 3002 certain limited common areas shall be maintained by those 3003 entitled to use the limited common areas or that the association 3004 shall provide the maintenance, either as a common expense or 3005 with the cost shared only by those entitled to use the limited 3006 common areas. If the maintenance is to be provided by the 3007 association at the expense of only those entitled to use the 3008 limited common areas, the cooperative documents shall describe 3009 in detail the method of apportioning such costs among those 3010 entitled to use the limited common areas. The association may 3011 use the provisions of s. 719.108 to enforce payment of the 3012 shares of such costs by the shareholders entitled to use the 3013 limited common areas. 3014 (2) Except as otherwise provided in this section, there 3015 shall be no material alteration or substantial additions to the 3016 common areas, except in a manner provided in the cooperative 3017 documents as originally recorded or as amended under the 3018 procedures provided therein. If the cooperative documents as 3019 originally recorded or as amended under the procedures provided 3020 therein do not specify the procedure for approval of material 3021 alterations or substantial additions, 75 percent of the total 3022 voting interests of the association must approve the alterations 3023 or additions. This subsection is intended to clarify existing 3024 law and applies to associations existing on July 1, 2010. 3025 (3) A shareholder shall not do anything within his or her 3026 unit or on the common areas which would adversely affect the 3027 safety or soundness of the common areas or any portion of the 3028 association property or cooperative property which is to be 3029 maintained by the association. 3030 (4) Any shareholder may display within the boundaries of 3031 the shareholder’s unit one portable, removable United States 3032 flag in a respectful way and, on Armed Forces Day, Memorial Day, 3033 Flag Day, Independence Day, and Veterans’ Day, may display in a 3034 respectful way portable, removable official flags, not larger 3035 than 4 1/2 feet by 6 feet, which represent the United States 3036 Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless 3037 of any rule or requirement in the cooperative documents dealing 3038 with flags or decorations. 3039 (5) Each board of directors shall adopt hurricane shutter 3040 specifications for each building within each cooperative which 3041 shall include color, style, and other factors deemed relevant by 3042 the board. All specifications adopted by the board shall comply 3043 with the applicable building code. 3044 (a) The board may, subject to the provisions of s. 719.3026 3045 and the approval of a majority of voting interests of the 3046 cooperative, install hurricane shutters or hurricane protection 3047 that complies with or exceeds the applicable building code, or 3048 both, except that a vote of the shareholders is not required if 3049 the maintenance, repair, and replacement of hurricane shutters 3050 or other forms of hurricane protection are the responsibility of 3051 the association pursuant to the cooperative documents. However, 3052 when hurricane protection or laminated glass or window film 3053 architecturally designed to function as hurricane protection 3054 which complies with or exceeds the current applicable building 3055 code has been previously installed, the board may not install 3056 hurricane shutters or other hurricane protection. Code-compliant 3057 impact glass may be installed by the association as hurricane 3058 protection if the area in which the glass is to be installed is 3059 an area that is the responsibility of the association. 3060 Notwithstanding s. 719.107(3), if a shareholder installed code 3061 compliant impact glass prior to the association voting to 3062 install such glass, and such glass and the frame thereof comply 3063 with the current applicable building codes and are otherwise in 3064 good repair, the shareholder shall not be required to pay the 3065 shareholder’s pro rata share of the cost of installing code 3066 compliant impact glass in the cooperative association. 3067 (b) The association shall be responsible for the 3068 maintenance, repair, and replacement of the hurricane shutters 3069 or other hurricane protection authorized by this subsection if 3070 such hurricane shutters or other hurricane protection is the 3071 responsibility of the association pursuant to the cooperative 3072 documents. If the hurricane shutters or other hurricane 3073 protection authorized by this subsection are the responsibility 3074 of the shareholders pursuant to the cooperative documents, the 3075 responsibility for the maintenance, repair, and replacement of 3076 such items shall be the responsibility of the shareholder. 3077 (c) The board may operate hurricane shutters installed 3078 pursuant to this subsection without permission of the 3079 shareholders only when such operation is necessary to preserve 3080 and protect the cooperative property and association property. 3081 The installation, replacement, operation, repair, and 3082 maintenance of such shutters in accordance with the procedures 3083 set forth in this subsection shall not be deemed a material 3084 alteration to the common elements or association property within 3085 the meaning of this section. 3086 (d) Notwithstanding any provision to the contrary in the 3087 cooperative documents, if approval is required by the documents, 3088 a board may not refuse to approve the installation or 3089 replacement of hurricane shutters by a shareholder conforming to 3090 the specifications adopted by the board. 3091 (6) As to any cooperative building greater than three 3092 stories in height, at least every 5 years, and within 5 years if 3093 not available for inspection on July 1, 2010, the board shall 3094 have the cooperative building inspected to provide a report 3095 under seal of an architect or engineer authorized to practice in 3096 this state attesting to required maintenance, useful life, and 3097 replacement costs of the common areas. However, if approved by a 3098 majority of the voting interests present at a properly called 3099 meeting of the association, an association may waive this 3100 requirement. Such meeting and approval must occur prior to the 3101 end of the 5-year period and is effective only for that 5-year 3102 period. 3103 (7) An association may not refuse the request of a 3104 shareholder for a reasonable accommodation for the attachment on 3105 the mantel or frame of the door of the shareholder of a 3106 religious object not to exceed 3 inches wide, 6 inches high, and 3107 1.5 inches deep. 3108 (8) Notwithstanding the provisions of this section or the 3109 governing documents of a cooperative association, the board of 3110 directors may, without any requirement for approval of the 3111 shareholders, install upon or within the common areas or 3112 association property solar collectors, clotheslines, or other 3113 energy-efficient devices based on renewable resources for the 3114 benefit of the shareholders. 3115 Section 21. Section 719.117, Florida Statutes, is created 3116 to read: 3117 719.117 Termination of cooperative.— 3118 (1) LEGISLATIVE FINDINGS.—The Legislature finds that 3119 cooperatives are created as authorized by statute. In 3120 circumstances that may create economic waste, areas of 3121 disrepair, or obsolescence of a cooperative property for its 3122 intended use and thereby lower property tax values, the 3123 Legislature further finds that it is the public policy of this 3124 state to provide by statute a method to preserve the value of 3125 the property interests and the rights of alienation thereof that 3126 shareholders have in the cooperative property before and after 3127 termination. The Legislature further finds that it is contrary 3128 to the public policy of this state to require the continued 3129 operation of a cooperative when to do so constitutes economic 3130 waste or when the ability to do so is made impossible by law or 3131 regulation. This section applies to all cooperatives in this 3132 state in existence on or after July 1, 2010. 3133 (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR 3134 IMPOSSIBILITY.— 3135 (a) Notwithstanding any provision to the contrary in the 3136 cooperative documents, the cooperative form of ownership of a 3137 property may be terminated by a plan of termination approved by 3138 the lesser of the lowest percentage of voting interests 3139 necessary to amend the articles of incorporation when: 3140 1. The total estimated cost of repairs necessary to restore 3141 the improvements to their former condition or bring them into 3142 compliance with applicable laws or regulations exceeds the 3143 combined fair market value of all units in the cooperative after 3144 completion of the repairs; or 3145 2. It becomes impossible to operate or reconstruct a 3146 cooperative in its prior physical configuration because of land 3147 use laws or regulations. 3148 (b) Notwithstanding paragraph (a), a cooperative in which 3149 75 percent or more of the units are timeshare units may be 3150 terminated only pursuant to a plan of termination approved by 80 3151 percent of the total voting interests of the association and the 3152 holders of 80 percent of the original principal amount of 3153 outstanding recorded mortgage liens of timeshare estates in the 3154 cooperative, unless the cooperative documents provide for a 3155 lower voting percentage. 3156 (3) OPTIONAL TERMINATION.—Except as provided in subsection 3157 (2) or unless the cooperative documents provide for a lower 3158 percentage, the cooperative form of ownership of the property 3159 may be terminated pursuant to a plan of termination approved by 3160 at least 80 percent of the total voting interests of the 3161 cooperative if not more than 10 percent of the total voting 3162 interests of the cooperative have rejected the plan of 3163 termination by negative vote or by providing written objections 3164 thereto. This subsection does not apply to cooperatives in which 3165 75 percent or more of the units are timeshare units. 3166 (4) EXEMPTION.—A plan of termination is not an amendment 3167 subject to s. 719.1055(1). 3168 (5) MORTGAGE LIENHOLDERS.—Notwithstanding any provision to 3169 the contrary in the cooperative documents or this chapter, 3170 approval of a plan of termination by the holder of a recorded 3171 mortgage lien affecting a cooperative parcel in which fewer than 3172 75 percent of the units are timeshare units is not required 3173 unless the plan of termination will result in less than the full 3174 satisfaction of the mortgage lien affecting the cooperative 3175 parcel. If such approval is required and not given, a holder of 3176 a recorded mortgage lien who objects to the plan of termination 3177 may contest the plan as provided in subsection (16). At the time 3178 of sale, the lien shall be transferred to the proportionate 3179 share of the proceeds assigned to the cooperative parcel in the 3180 plan of termination or as subsequently modified by the court. 3181 (6) POWERS IN CONNECTION WITH TERMINATION.—The approval of 3182 the plan of termination does not terminate the association. The 3183 association shall continue in existence following approval of 3184 the plan of termination with all powers and duties it had before 3185 approval of the plan. Notwithstanding any provision to the 3186 contrary in the cooperative documents or bylaws, after approval 3187 of the plan the board shall: 3188 (a) Employ directors, agents, attorneys, and other 3189 professionals to liquidate or conclude its affairs. 3190 (b) Conduct the affairs of the association as necessary for 3191 the liquidation or termination. 3192 (c) Carry out contracts and collect, pay, and settle debts 3193 and claims for and against the association. 3194 (d) Defend suits brought against the association. 3195 (e) Sue in the name of the association for all sums due or 3196 owed to the association or to recover any of its property. 3197 (f) Perform any act necessary to maintain, repair, or 3198 demolish unsafe or uninhabitable improvements or other 3199 cooperative property in compliance with applicable codes. 3200 (g) Sell at public or private sale or exchange, convey, or 3201 otherwise dispose of assets of the association for an amount 3202 deemed to be in the best interests of the association, and 3203 execute bills of sale and deeds of conveyance in the name of the 3204 association. 3205 (h) Collect and receive rents, profits, accounts 3206 receivable, income, maintenance fees, special assessments, or 3207 insurance proceeds for the association. 3208 (i) Contract and do anything in the name of the association 3209 which is proper or convenient to terminate the affairs of the 3210 association. 3211 (7) NATURAL DISASTERS.— 3212 (a) If, after a natural disaster, the identity of the 3213 directors or their right to hold office is in doubt, if they are 3214 deceased or unable to act, if they fail or refuse to act, or if 3215 they cannot be located, any interested person may petition the 3216 circuit court to determine the identity of the directors or, if 3217 found to be in the best interests of the shareholders, to 3218 appoint a receiver to conclude the affairs of the association 3219 after a hearing following notice to such persons as the court 3220 directs. Lienholders shall be given notice of the petition and 3221 have the right to propose persons for the consideration by the 3222 court as receiver. If a receiver is appointed, the court shall 3223 direct the receiver to provide to all shareholders written 3224 notice of his or her appointment as receiver. Such notice shall 3225 be mailed or delivered within 10 days after the appointment. 3226 Notice by mail to a shareholder shall be sent to the address 3227 used by the county property appraiser for notice to the 3228 shareholder. 3229 (b) The receiver shall have all powers given to the board 3230 pursuant to the cooperative documents, bylaws, and subsection 3231 (6) and any other powers that are necessary to conclude the 3232 affairs of the association and are set forth in the order of 3233 appointment. The appointment of the receiver is subject to the 3234 bonding requirements of such order. The order shall also provide 3235 for the payment of a reasonable fee to the receiver from the 3236 sources identified in the order, which may include rents, 3237 profits, incomes, maintenance fees, or special assessments 3238 collected from the cooperative property. 3239 (8) REPORTS AND REPLACEMENT OF RECEIVER.— 3240 (a) The association, receiver, or termination trustee shall 3241 prepare reports each quarter following the approval of the plan 3242 of termination setting forth the status and progress of the 3243 termination, the costs and fees incurred, the date the 3244 termination is expected to be completed, and the current 3245 financial condition of the association, receivership, or 3246 trusteeship and provide copies of the report by regular mail to 3247 the shareholders and lienors at the mailing address provided to 3248 the association by the shareholders and the lienors. 3249 (b) The shareholders of an association in termination may 3250 recall or remove members of the board of administration with or 3251 without cause at any time as provided in s. 718.106(1)(f). 3252 (c) The lienors of an association in termination 3253 representing at least 50 percent of the outstanding amount of 3254 liens may petition the court for the appointment of a 3255 termination trustee, which shall be granted upon good cause 3256 shown. 3257 (9) PLAN OF TERMINATION.—The plan of termination must be a 3258 written document executed in the same manner as a deed by 3259 shareholders having the requisite percentage of voting interests 3260 to approve the plan and by the termination trustee. A copy of 3261 the proposed plan of termination shall be given to all 3262 shareholders, in the same manner as provided for notice of an 3263 annual meeting, at least 14 days prior to the meeting at which 3264 the plan of termination is to be voted upon or prior to or 3265 simultaneously with the distribution of the solicitation seeking 3266 execution of the plan of termination or written consent to or 3267 joinder in the plan. A shareholder may document assent to the 3268 plan by executing the plan or by consent to or joinder in the 3269 plan in the manner of a deed. A plan of termination and the 3270 consents or joinders of shareholders and, if required, consents 3271 or joinders of mortgagees must be recorded in the public records 3272 of each county in which any portion of the cooperative is 3273 located. The plan is effective only upon recordation or at a 3274 later date specified in the plan. 3275 (10) PLAN OF TERMINATION; REQUIRED PROVISIONS.—The plan of 3276 termination must specify: 3277 (a) The name, address, and powers of the termination 3278 trustee. 3279 (b) A date after which the plan of termination is void if 3280 it has not been recorded. 3281 (c) The interests of the respective shareholders in the 3282 association property, common surplus, and other assets of the 3283 association, which shall be the same as the respective interests 3284 of the shareholders in the common areas immediately before the 3285 termination, unless otherwise provided in the cooperative 3286 documents. 3287 (d) The interests of the respective shareholders in any 3288 proceeds from the sale of the cooperative property. The plan of 3289 termination may apportion those proceeds pursuant to any method 3290 prescribed in subsection (12). If, pursuant to the plan of 3291 termination, cooperative property or real property owned by the 3292 association is to be sold following termination, the plan must 3293 provide for the sale and may establish any minimum sale terms. 3294 (e) Any interests of the respective shareholders in 3295 insurance proceeds or condemnation proceeds that are not used 3296 for repair or reconstruction at the time of termination. Unless 3297 the cooperative documents expressly address the distribution of 3298 insurance proceeds or condemnation proceeds, the plan of 3299 termination may apportion those proceeds pursuant to any method 3300 prescribed in subsection (12). 3301 (11) PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL 3302 TERMINATION.— 3303 (a) The plan of termination may provide that each 3304 shareholder retains the exclusive right of possession to the 3305 portion of the real estate that formerly constituted the unit, 3306 in which case the plan must specify the conditions of 3307 possession. 3308 (b) In a conditional termination, the plan must specify the 3309 conditions for termination. A conditional plan does not vest 3310 title in the termination trustee until the plan and a 3311 certificate executed by the association with the formalities of 3312 a deed, confirming that the conditions in the conditional plan 3313 have been satisfied or waived by the requisite percentage of the 3314 voting interests, have been recorded. 3315 (12) ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE 3316 PROPERTY.— 3317 (a) Unless the cooperative documents expressly provide for 3318 the allocation of the proceeds of sale of cooperative property, 3319 the plan of termination must first apportion the proceeds 3320 between the aggregate value of all units and the value of the 3321 common areas, based on their respective fair market values 3322 immediately before the termination, as determined by one or more 3323 independent appraisers selected by the association or 3324 termination trustee. 3325 (b) The portion of proceeds allocated to the units shall be 3326 further apportioned among the individual units. The 3327 apportionment is deemed fair and reasonable if it is so 3328 determined by the shareholders, who may approve the plan of 3329 termination by any of the following methods: 3330 1. The respective values of the units based on the fair 3331 market values of the units immediately before the termination, 3332 as determined by one or more independent appraisers selected by 3333 the association or termination trustee; 3334 2. The respective values of the units based on the most 3335 recent market value of the units before the termination, as 3336 provided in the county property appraiser’s records; or 3337 3. The respective interests of the units in the common 3338 elements specified in the cooperative documents immediately 3339 before the termination. 3340 (c) The methods of apportionment in paragraph (b) do not 3341 prohibit any other method of apportioning the proceeds of sale 3342 allocated to the units agreed upon in the plan of termination. 3343 The portion of the proceeds allocated to the common elements 3344 shall be apportioned among the units based upon their respective 3345 interests in the common areas as provided in the cooperative 3346 documents. 3347 (d) Liens that encumber a unit shall be transferred to the 3348 proceeds of sale of the cooperative property and the proceeds of 3349 sale or other distribution of association property, common 3350 surplus, or other association assets attributable to such unit 3351 in their same priority. The proceeds of any sale of cooperative 3352 property pursuant to a plan of termination may not be deemed to 3353 be common surplus or association property. 3354 (13) TERMINATION TRUSTEE.—The association shall serve as 3355 termination trustee unless another person is appointed in the 3356 plan of termination. If the association is unable or unwilling 3357 or fails to act as trustee, any shareholder may petition the 3358 court to appoint a trustee. Upon the date of the recording or at 3359 a later date specified in the plan, title to the cooperative 3360 property vests in the trustee. Unless prohibited by the plan, 3361 the termination trustee shall be vested with the powers given to 3362 the board pursuant to the cooperative documents, bylaws, and 3363 subsection (6). If the association is not the termination 3364 trustee, the trustee’s powers shall be coextensive with those of 3365 the association to the extent not prohibited in the plan of 3366 termination or the order of appointment. If the association is 3367 not the termination trustee, the association shall transfer any 3368 association property to the trustee. If the association is 3369 dissolved, the trustee shall also have such other powers 3370 necessary to conclude the affairs of the association. 3371 (14) TITLE VESTED IN TERMINATION TRUSTEE.—If termination is 3372 pursuant to a plan of termination under subsection (2) or 3373 subsection (3), the shareholders’ rights and title as tenants in 3374 common in undivided interests in the cooperative property vest 3375 in the termination trustee when the plan is recorded or at a 3376 later date specified in the plan. The shareholders thereafter 3377 become the beneficiaries of the proceeds realized from the plan 3378 of termination. The termination trustee may deal with the 3379 cooperative property or any interest therein if the plan confers 3380 on the trustee the authority to protect, conserve, manage, sell, 3381 or dispose of the cooperative property. The trustee, on behalf 3382 of the shareholders, may contract for the sale of real property, 3383 but the contract is not binding on the shareholders until the 3384 plan is approved pursuant to subsection (2) or subsection (3). 3385 (15) NOTICE.— 3386 (a) Within 30 days after a plan of termination has been 3387 recorded, the termination trustee shall deliver by certified 3388 mail, return receipt requested, notice to all shareholders, 3389 lienors of the cooperative property, and lienors of all units at 3390 their last known addresses that a plan of termination has been 3391 recorded. The notice must include the book and page number of 3392 the public records in which the plan was recorded, notice that a 3393 copy of the plan shall be furnished upon written request, and 3394 notice that the shareholder or lienor has the right to contest 3395 the fairness of the plan. 3396 (b) The trustee, within 90 days after the effective date of 3397 the plan, shall provide to the division a certified copy of the 3398 recorded plan, the date the plan was recorded, and the county, 3399 book, and page number of the public records in which the plan is 3400 recorded. 3401 (16) RIGHT TO CONTEST.—A shareholder or lienor may contest 3402 a plan of termination by initiating a summary procedure pursuant 3403 to s. 51.011 within 90 days after the date the plan is recorded. 3404 A shareholder or lienor who does not contest the plan within the 3405 90-day period is barred from asserting or prosecuting a claim 3406 against the association, the termination trustee, any 3407 shareholder, or any successor in interest to the cooperative 3408 property. In an action contesting a plan of termination, the 3409 person contesting the plan has the burden of pleading and 3410 proving that the apportionment of the proceeds from the sale 3411 among the shareholders was not fair and reasonable. The 3412 apportionment of sale proceeds is presumed fair and reasonable 3413 if it was determined pursuant to the methods prescribed in 3414 subsection (12). The court shall determine the rights and 3415 interests of the parties and order the plan of termination to be 3416 implemented if it is fair and reasonable. If the court 3417 determines that the plan of termination is not fair and 3418 reasonable, the court may void the plan or may modify the plan 3419 to apportion the proceeds in a fair and reasonable manner 3420 pursuant to this section based upon the proceedings and order 3421 the modified plan of termination to be implemented. In such 3422 action, the prevailing party shall recover reasonable attorney’s 3423 fees and costs. 3424 (17) DISTRIBUTION.— 3425 (a) Following termination of the cooperative, the 3426 cooperative property, association property, common surplus, and 3427 other assets of the association shall be held by the termination 3428 trustee, as trustee for shareholders and holders of liens on the 3429 units, in their order of priority. 3430 (b) Not less than 30 days before the first distribution, 3431 the termination trustee shall deliver by certified mail, return 3432 receipt requested, a notice of the estimated distribution to all 3433 shareholders, lienors of the cooperative property, and lienors 3434 of each unit at their last known addresses stating a good faith 3435 estimate of the amount of the distributions to each class and 3436 the procedures and deadline for notifying the termination 3437 trustee of any objections to the amount. The deadline must be at 3438 least 15 days after the date the notice was mailed. The notice 3439 may be sent with or after the notice required by subsection 3440 (15). If a shareholder or lienor files a timely objection with 3441 the termination trustee, the trustee need not distribute the 3442 funds and property allocated to the respective shareholder or 3443 lienor until the trustee has had a reasonable time to determine 3444 the validity of the adverse claim. In the alternative, the 3445 trustee may interplead the shareholder, the lienor, and any 3446 other person claiming an interest in the unit and deposit the 3447 funds allocated to the unit in the court registry, at which time 3448 the cooperative property, association property, common surplus, 3449 and other assets of the association are free of all claims and 3450 liens of the parties to the suit. In an interpleader action, the 3451 trustee and prevailing party may recover reasonable attorney’s 3452 fees and costs. 3453 (c) The proceeds from any sale of cooperative property or 3454 association property and any remaining cooperative property or 3455 association property, common surplus, and other assets shall be 3456 distributed in the following priority: 3457 1. To pay the reasonable termination trustee’s fees and 3458 costs and accounting fees and costs. 3459 2. To lienholders of liens recorded prior to the recording 3460 of the cooperative documents. 3461 3. To purchase-money lienholders on units to the extent 3462 necessary to satisfy their liens; however, the distribution may 3463 not exceed a shareholder’s share of the proceeds. 3464 4. To creditors of the association, as their interests 3465 appear. 3466 5. To shareholders, the proceeds of any sale of cooperative 3467 property subject to satisfaction of liens on each unit in their 3468 order of priority, in shares specified in the plan of 3469 termination, unless objected to by a shareholder or lienor as 3470 provided in paragraph (b). 3471 6. To shareholders, the remaining cooperative property, 3472 subject to satisfaction of liens on each unit in their order of 3473 priority, in shares specified in the plan of termination, unless 3474 objected to by a shareholder or lienor as provided in paragraph 3475 (b). 3476 7. To shareholders, the proceeds of any sale of association 3477 property, the remaining association property, common surplus, 3478 and other assets of the association, subject to satisfaction of 3479 liens on each unit in their order of priority, in shares 3480 specified in the plan of termination, unless objected to by a 3481 shareholder or lienor as provided in paragraph (b). 3482 (d) After determining that all known debts and liabilities 3483 of an association in the process of termination have been paid 3484 or adequately provided for, the termination trustee shall 3485 distribute the remaining assets pursuant to the plan of 3486 termination. If the termination is by court proceeding or 3487 subject to court supervision, the distribution may not be made 3488 until any period for the presentation of claims ordered by the 3489 court has elapsed. 3490 (e) Assets held by an association upon a valid condition 3491 requiring return, transfer, or conveyance, which condition has 3492 occurred or will occur, shall be returned, transferred, or 3493 conveyed in accordance with the condition. The remaining 3494 association assets shall be distributed pursuant to paragraph 3495 (c). 3496 (f) Distribution may be made in money, property, or 3497 securities and in installments or as a lump sum, if it can be 3498 done fairly and ratably and in conformity with the plan of 3499 termination. Distribution shall be made as soon as is reasonably 3500 consistent with the beneficial liquidation of the assets. 3501 (18) ASSOCIATION STATUS.—The termination of a cooperative 3502 does not change the corporate status of the association that 3503 operated the cooperative property. The association continues to 3504 exist to conclude its affairs, prosecute and defend actions by 3505 or against it, collect and discharge obligations, dispose of and 3506 convey its property, and collect and divide its assets, but not 3507 to act except as necessary to conclude its affairs. 3508 (19) CREATION OF ANOTHER COOPERATIVE.—The termination of a 3509 cooperative does not bar the creation by the termination trustee 3510 of another cooperative affecting any portion of the same 3511 property. 3512 Section 22. Section 719.1224, Florida Statutes, is created 3513 to read: 3514 719.1224 Prohibition against SLAPP suits.— 3515 (1) It is the intent of the Legislature to protect the 3516 right of cooperative shareholders to exercise their rights to 3517 instruct their representatives and petition for redress of 3518 grievances before the various governmental entities of this 3519 state as protected by the First Amendment to the United States 3520 Constitution and s. 5, Art. I of the State Constitution. The 3521 Legislature recognizes that strategic lawsuits against public 3522 participation, or “SLAPP suits,” as they are typically referred 3523 to, have occurred when association members are sued by 3524 individuals, business entities, or governmental entities arising 3525 out of a cooperative shareholder’s appearance and presentation 3526 before a governmental entity on matters related to the 3527 cooperative association. However, it is the public policy of 3528 this state that governmental entities, business organizations, 3529 and individuals not engage in SLAPP suits because such actions 3530 are inconsistent with the right of cooperative shareholders to 3531 participate in the state’s institutions of government. 3532 Therefore, the Legislature finds and declares that prohibiting 3533 such lawsuits by governmental entities, business entities, and 3534 individuals against cooperative shareholders who address matters 3535 concerning their cooperative association will preserve this 3536 fundamental state policy, preserve the constitutional rights of 3537 cooperative shareholders, and ensure the continuation of 3538 representative government in this state. It is the intent of the 3539 Legislature that such lawsuits be expeditiously disposed of by 3540 the courts. As used in this subsection, the term “governmental 3541 entity” means the state, including the executive, legislative, 3542 and judicial branches of government; the independent 3543 establishments of the state, counties, municipalities, 3544 districts, authorities, boards, or commissions; or any agencies 3545 of these branches that are subject to chapter 286. 3546 (2) A governmental entity, business organization, or 3547 individual in this state may not file or cause to be filed 3548 through its employees or agents any lawsuit, cause of action, 3549 claim, cross-claim, or counterclaim against a cooperative 3550 shareholder without merit and solely because such cooperative 3551 shareholder has exercised the right to instruct his or her 3552 representatives or the right to petition for redress of 3553 grievances before the various governmental entities of this 3554 state, as protected by the First Amendment to the United States 3555 Constitution and s. 5, Art. I of the State Constitution. 3556 (3) A cooperative shareholder sued by a governmental 3557 entity, business organization, or individual in violation of 3558 this section has a right to an expeditious resolution of a claim 3559 that the suit is in violation of this section. A cooperative 3560 shareholder may petition the court for an order dismissing the 3561 action or granting final judgment in favor of that cooperative 3562 shareholder. The petitioner may file a motion for summary 3563 judgment, together with supplemental affidavits, seeking a 3564 determination that the lawsuit brought by the governmental 3565 entity, business organization, or individual is in violation of 3566 this section. The governmental entity, business organization, or 3567 individual shall thereafter file a response and any supplemental 3568 affidavits. As soon as practicable, the court shall set a 3569 hearing on the petitioner’s motion, which shall be held at the 3570 earliest possible time after the filing of the response of the 3571 governmental entity, business organization, or individual. The 3572 court may award the cooperative shareholder sued by the 3573 governmental entity, business organization, or individual actual 3574 damages arising from the violation of this section by the 3575 governmental entity, individual, or business organization. A 3576 court may treble the damages awarded to a prevailing cooperative 3577 shareholder and shall state the basis for the treble damages 3578 award in its judgment. The court shall award the prevailing 3579 party reasonable attorney’s fees and costs incurred in 3580 connection with a claim that an action was filed in violation of 3581 this section. 3582 (4) Cooperative associations may not expend association 3583 funds in prosecuting a SLAPP suit against a cooperative 3584 shareholder. 3585 Section 23. Section 719.1255, Florida Statutes, is amended 3586 to read: 3587 719.1255 Alternative resolution of disputes.—The Division 3588 of Florida Condominiums, Timeshares, and Mobile Homes of the 3589 Department of Business and Professional Regulation shall provide 3590 for alternative dispute resolution of matters related to 3591 cooperative associations and shareholders in a manner like that 3592 provided to condominium associations and unit owners in 3593 accordance with s. 718.1255. 3594 Section 24. Section 719.1265, Florida Statutes, is created 3595 to read: 3596 719.1265 Association emergency powers.— 3597 (1) To the extent allowed by law and unless specifically 3598 prohibited by the cooperative documents or the bylaws of an 3599 association, and consistent with the provisions of s. 617.0830, 3600 the board of directors, in response to damage caused by an event 3601 for which a state of emergency is declared pursuant to s. 252.36 3602 in the locale in which the cooperative is located, may, but is 3603 not required to, exercise the following powers: 3604 (a) Conduct board meetings and shareholder meetings with 3605 notice given as is practicable. Such notice may be given in any 3606 practicable manner, including publication, radio, United States 3607 mail, the Internet, public service announcements, and 3608 conspicuous posting on the cooperative property or any other 3609 means the board deems reasonable under the circumstances. Notice 3610 of board decisions may be communicated as provided in this 3611 paragraph. 3612 (b) Cancel and reschedule any association meeting. 3613 (c) Name as assistant officers persons who are not 3614 directors, which assistant officers shall have the same 3615 authority as the executive officers for whom they are named as 3616 assistants during the state of emergency to accommodate the 3617 incapacity or unavailability of any officer of the association. 3618 (d) Relocate the association’s principal office or 3619 designate alternative principal offices. 3620 (e) Enter into agreements with local counties and 3621 municipalities to assist those counties and municipalities with 3622 debris removal. 3623 (f) Implement a disaster plan before or immediately 3624 following the event for which a state of emergency is declared, 3625 which may include, but is not limited to, shutting down or off 3626 elevators; electricity; water, sewer, or security systems; or 3627 air conditioners. 3628 (g) Based upon the advice of emergency management officials 3629 or licensed professionals retained by the board, determine any 3630 portion of the cooperative property unavailable for entry or 3631 occupancy by shareholders, family members, tenants, guests, 3632 agents, or invitees to protect the health, safety, or welfare of 3633 such persons. 3634 (h) Require the evacuation of the cooperative property in 3635 the event of a mandatory evacuation order in the locale in which 3636 the cooperative is located. Should any shareholder or other 3637 occupant of a cooperative fail or refuse to evacuate the 3638 cooperative property when the board has required evacuation, the 3639 association shall be immune from liability or injury to persons 3640 or property arising from such failure or refusal. 3641 (i) Based upon the advice of emergency management officials 3642 or licensed professionals retained by the board, determine 3643 whether the cooperative property can be safely inhabited or 3644 occupied. However, such determination is not conclusive as to 3645 any determination of habitability pursuant to the cooperative 3646 documents. 3647 (j) Mitigate further damage, including taking action to 3648 contract for the removal of debris and to prevent or mitigate 3649 the spread of fungus, including, but not limited to, mold or 3650 mildew, by removing and disposing of wet drywall, insulation, 3651 carpet, cabinetry, or other fixtures on or within the 3652 cooperative property, even if the shareholder is obligated by 3653 the cooperative documents or law to insure or replace those 3654 fixtures and to remove personal property from a unit. 3655 (k) Contract, on behalf of any shareholder or shareholders, 3656 for items or services for which the shareholder or shareholders 3657 are otherwise individually responsible, but which are necessary 3658 to prevent further damage to the cooperative property. In such 3659 event, the shareholder or shareholders on whose behalf the board 3660 has contracted are responsible for reimbursing the association 3661 for the actual costs of the items or services, and the 3662 association may use its lien authority provided by s. 719.108 to 3663 enforce collection of the charges. Without limitation, such 3664 items or services may include the drying of units, the boarding 3665 of broken windows or doors, and the replacement of damaged air 3666 conditioners or air handlers to provide climate control in the 3667 units or other portions of the property. 3668 (l) Regardless of any provision to the contrary and even if 3669 such authority does not specifically appear in the cooperative 3670 documents or bylaws of the association, levy special assessments 3671 without a vote of the shareholders. 3672 (m) Without shareholders’ approval, borrow money and pledge 3673 association assets as collateral to fund emergency repairs and 3674 carry out the duties of the association when operating funds are 3675 insufficient. This paragraph does not limit the general 3676 authority of the association to borrow money, subject to such 3677 restrictions as are contained in the cooperative documents or 3678 bylaws of the association. 3679 (2) The special powers authorized under subsection (1) 3680 shall be limited to the time reasonably necessary to protect the 3681 health, safety, and welfare of the association and the 3682 shareholders and the shareholders’ family members, tenants, 3683 guests, agents, or invitees and the time reasonably necessary to 3684 mitigate further damage and make emergency repairs. 3685 Additionally, unless 20 percent or more of the units are made 3686 uninhabitable by the emergency, the special powers authorized 3687 under subsection (1) may only be exercised during the term of 3688 the Governor’s executive order or proclamation declaring the 3689 state of emergency in the locale in which the cooperative 3690 property is located. 3691 Section 25. Subsections (1) and (4) of section 719.301, 3692 Florida Statutes, are amended to read: 3693 719.301 Transfer of association control.— 3694 (1) When shareholdersunit ownersother than the developer 3695 own 15 percent or more of the units in a cooperative that will 3696 be operated ultimately by an association, the shareholdersunit3697ownersother than the developer shall be entitled to elect not 3698 less than one-third of the members of the board of 3699 administration of the association. ShareholdersUnit owners3700 other than the developer are entitled to elect not less than a 3701 majority of the members of the board of administration of an 3702 association: 3703 (a) Three years after 50 percent of the units that will be 3704 operated ultimately by the association have been conveyed to 3705 purchasers; 3706 (b) Three months after 90 percent of the units that will be 3707 operated ultimately by the association have been conveyed to 3708 purchasers; 3709 (c) When all the units that will be operated ultimately by 3710 the association have been completed, some have been conveyed to 3711 purchasers, and none of the others are being offered for sale by 3712 the developer in the ordinary course of business; 3713 (d) When some of the units have been conveyed to purchasers 3714 and none of the others are being constructed or offered for sale 3715 by the developer in the ordinary course of business;or3716 (e) When the developer files a petition seeking protection 3717 in bankruptcy; 3718 (f) When a receiver for the developer is appointed by a 3719 circuit court and is not discharged within 30 days after such 3720 appointment; or 3721 (g)(e)Seven years after creation of the cooperative 3722 association, 3723 3724 whichever occurs first. The developer is entitled to elect at 3725 least one member of the board of administration of an 3726 association as long as the developer holds for sale in the 3727 ordinary course of business at least 5 percent in cooperatives 3728 with fewer than 500 units and 2 percent in cooperatives with 500 3729 or more units in a cooperative operated by the association. 3730 After the developer relinquishes control of the association, the 3731 developer may exercise the right to vote any developer-owned 3732 units in the same manner as any other shareholderunit owner3733 except for purposes of reacquiring control of the association or 3734 selecting the majority of the members of the board. 3735 (4) When shareholdersunit ownersother than the developer 3736 elect a majority of the members of the board of administration 3737 of an association, the developer shall relinquish control of the 3738 association, and the shareholdersunit ownersshall accept 3739 control. Simultaneously, or for the purpose of paragraph (c) not 3740 more than 90 days thereafter, the developer shall deliver to the 3741 association, at the developer’s expense, all property of the 3742 shareholdersunit ownersand of the association held or 3743 controlled by the developer, including, but not limited to, the 3744 following items, if applicable, as to each cooperative operated 3745 by the association: 3746 (a)1. The original or a photocopy of the recorded 3747 cooperative documents and all amendments thereto. If a photocopy 3748 is provided, it shall be certified by affidavit of the 3749 developer, or an officer or agent of the developer, as being a 3750 complete copy of the actual recorded cooperative documents. 3751 2. A certified copy of the association’s articles of 3752 incorporation, or if it is not incorporated, then copies of the 3753 documents creating the association. 3754 3. A copy of the bylaws. 3755 4. The minute books, including all minutes, and other books 3756 and records of the association, if any. 3757 5. Any house rules and regulations which have been 3758 promulgated. 3759 (b) Resignations of officers and members of the board of 3760 administration who are required to resign because the developer 3761 is required to relinquish control of the association. 3762 (c) The financial records, including financial statements 3763 of the association, and source documents since the incorporation 3764 of the association through the date of turnover. The records 3765 shall be audited for the period of the incorporation of the 3766 association or for the period covered by the last audit, if an 3767 audit has been performed for each fiscal year since 3768 incorporation, by an independent certified public accountant. 3769 All financial statements shall be prepared in accordance with 3770 generally accepted accounting standards and shall be audited in 3771 accordance with generally accepted auditing standards as 3772 prescribed by the Board of Accountancy. The accountant 3773 performing the review shall examine to the extent necessary 3774 supporting documents and records, including the cash 3775 disbursements and related paid invoices to determine if 3776 expenditures were for association purposes and the billings, 3777 cash receipts, and related records to determine that the 3778 developer was charged and paid the proper amounts of 3779 assessments. 3780 (d) Association funds or control thereof. 3781 (e) All tangible personal property that is property of the 3782 association, represented by the developer to be part of the 3783 common areas or ostensibly part of the common areas, and an 3784 inventory of that property. 3785 (f) A copy of the plans and specifications utilized in the 3786 construction or remodeling of improvements and the supplying of 3787 equipment to the cooperative and in the construction and 3788 installation of all mechanical components serving the 3789 improvements and the site, with a certificate in affidavit form 3790 of the developer, the developer’s agent, or an architect or 3791 engineer authorized to practice in this state that such plans 3792 and specifications represent, to the best of their knowledge and 3793 belief, the actual plans and specifications utilized in the 3794 construction and improvement of the cooperative property and for 3795 the construction and installation of the mechanical components 3796 serving the improvements. If the cooperative property has been 3797 organized as a cooperative more than 3 years after the 3798 completion of construction or remodeling of the improvements, 3799 the requirements of this paragraph shall not apply. 3800 (g) A list of the names and addresses, of which the 3801 developer had knowledge at any time in the development of the 3802 cooperative, of all contractors, subcontractors, and suppliers 3803 utilized in the construction or remodeling of the improvements 3804 and in the landscaping. 3805 (h) Insurance policies. 3806 (i) Copies of any certificates of occupancy which may have 3807 been issued for the cooperative property. 3808 (j) Any other permits issued by governmental bodies 3809 applicable to the cooperative property in force or issued within 3810 1 year prior to the date the shareholdersunit ownersother than 3811 the developer take control of the association. 3812 (k) All written warranties of the contractor, 3813 subcontractors, suppliers, and manufacturers, if any, that are 3814 still effective. 3815 (l) A roster of shareholdersunit ownersand their 3816 addresses and telephone numbers, if known, as shown on the 3817 developer’s records. 3818 (m) Leases of the common areas and other leases to which 3819 the association is a party. 3820 (n) Employment contracts or service contracts in which the 3821 association is one of the contracting parties or service 3822 contracts in which the association or the shareholdersunit3823ownershave an obligation or responsibility, directly or 3824 indirectly, to pay some or all of the fee or charge of the 3825 person or persons performing the service. 3826 (o) All other contracts to which the association is a 3827 party. 3828 (p) A turnover inspection report included in the official 3829 records, under seal of an architect or engineer authorized to 3830 practice in this state, attesting to required maintenance, 3831 useful life, and replacement costs of the following applicable 3832 common areas: 3833 1. Roof. 3834 2. Structure. 3835 3. Fireproofing and fire protection systems. 3836 4. Elevators. 3837 5. Heating and cooling systems. 3838 6. Plumbing. 3839 7. Electrical systems. 3840 8. Swimming pool or spa and equipment. 3841 9. Seawalls. 3842 10. Pavement and parking areas. 3843 11. Drainage systems. 3844 12. Painting. 3845 13. Irrigation systems. 3846 Section 26. Section 719.3025, Florida Statutes, is created 3847 to read: 3848 719.3025 Agreements for operation, maintenance, or 3849 management of cooperatives; specific requirements.— 3850 (1) A written contract between a party contracting to 3851 provide maintenance or management services and an association 3852 which contract provides for operation, maintenance, or 3853 management of a cooperative association or property serving the 3854 shareholders of a cooperative is not valid or enforceable unless 3855 the contract: 3856 (a) Specifies the services, obligations, and 3857 responsibilities of the party contracting to provide maintenance 3858 or management services to the shareholders. 3859 (b) Specifies those costs incurred in the performance of 3860 those services, obligations, or responsibilities which are to be 3861 reimbursed by the association to the party contracting to 3862 provide maintenance or management services. 3863 (c) Provides an indication of how often each service, 3864 obligation, or responsibility is to be performed, whether stated 3865 for each service, obligation, or responsibility or in categories 3866 thereof. 3867 (d) Specifies a minimum number of personnel to be employed 3868 by the party contracting to provide maintenance or management 3869 services for the purpose of providing service to the 3870 association. 3871 (e) Discloses any financial or ownership interest which the 3872 developer, if the developer is in control of the association, 3873 holds with regard to the party contracting to provide 3874 maintenance or management services. 3875 (f) Discloses any financial or ownership interest a board 3876 member or any party providing maintenance or management services 3877 to the association holds with the contracting party. 3878 (2) In any case in which the party contracting to provide 3879 maintenance or management services fails to provide such 3880 services in accordance with the contract, the association is 3881 authorized to procure such services from some other party and is 3882 entitled to collect any fees or charges paid for services 3883 performed by another party from the party contracting to provide 3884 maintenance or management services. 3885 (3) Any services or obligations not stated on the face of 3886 the contract are unenforceable. 3887 (4) Notwithstanding the fact that certain vendors contract 3888 with associations to maintain equipment or property which is 3889 made available to serve shareholders, it is the intent of the 3890 Legislature that this section applies to contracts for 3891 maintenance or management services for which the association 3892 pays compensation. This section does not apply to contracts for 3893 services or property made available for the convenience of 3894 shareholders by lessees or licensees of the association, such as 3895 coin-operated laundry, food, soft drink, or telephone vendors; 3896 cable television operators; retail store operators; businesses; 3897 restaurants; or similar vendors. 3898 Section 27. Section 719.3026, Florida Statutes, is amended 3899 to read: 3900 719.3026 Contracts for products and services; in writing; 3901 bids; exceptions.—Associations with 10 or fewerless than 1003902 units may opt out of the provisions of this section if two 3903 thirds of the shareholdersunit ownersvote to do so, which opt 3904 out may be accomplished by a proxy specifically setting forth 3905 the exception from this section. 3906 (1) All contracts as further described herein or any 3907 contract that is not to be fully performed within 1 year after 3908 the making thereof, for the purchase, lease, or renting of 3909 materials or equipment to be used by the association in 3910 accomplishing its purposes under this chapter, and all contracts 3911 for the provision of services, shall be in writing. If a 3912 contract for the purchase, lease, or renting of materials or 3913 equipment, or for the provision of services, requires payment by 3914 the association in an amount which in the aggregate exceeds 5 3915 percent of the association’s budget, including reserves, the 3916 association shall obtain competitive bids for the materials, 3917 equipment, or services. Nothing contained herein shall be 3918 construed to require the association to accept the lowest bid. 3919 (2)(a)1.Notwithstanding the foregoing, contracts with 3920 employees of the association, and contracts for attorney, 3921 accountant, architect, community association manager, timeshare 3922 management firm, engineering, and landscape architect services 3923 shall not be subject to the provisions of this section. 39242. A contract executed before January 1, 1992, and any3925renewal thereof, is not subject to the competitive bid3926requirements of this section. If a contract was awarded under3927the competitive bid procedures of this section, any renewal of3928that contract is not subject to such competitive bid3929requirements if the contract contains a provision that allows3930the board to cancel the contract on 30 days’ notice. Materials,3931equipment, or services provided to a cooperative pursuant to a3932local government franchise agreement by a franchise holder are3933not subject to the competitive bid requirement. A contract with3934a manager, if made by a competitive bid, may be made for up to 33935years. A condominium whose declaration or bylaws provides for3936competitive bidding for services may operate under the3937provisions of that declaration or bylaws in lieu of this section3938if those provisions are not less stringent than the requirements3939of this section.3940 (b) This section does not limit the ability of an 3941 association to obtain needed products and services in an 3942 emergency. 3943 (c) This section does not apply if the business entity with 3944 which the association desires to enter into a contract is the 3945 only source of supply within the county serving the association. 3946 (d) This section does not excuse a party contracting to 3947 provide maintenance or management services from compliance with 3948 s. 719.3025. 3949 (3) As to any contract or other transaction between an 3950 association and one or more of its directors or any other 3951 corporation, firm, association, or entity in which one or more 3952 of its directors are directors or officers or are financially 3953 interested: 3954 (a) The association shall comply with the requirements of 3955 s. 617.0832. 3956 (b) The disclosures required by s. 617.0832 shall be 3957 entered into the written minutes of the meeting. 3958 (c) Approval of the contract or other transaction shall 3959 require an affirmative vote of two-thirds of the directors 3960 present. 3961 (d) At the next regular or special meeting of the 3962 shareholders, the existence of the contract or other transaction 3963 shall be disclosed to the shareholders. Upon motion of any 3964 shareholder, the contract or transaction shall be brought up for 3965 a vote and may be canceled by a majority vote of the 3966 shareholders present. Should the shareholders cancel the 3967 contract, the association shall only be liable for the 3968 reasonable value of goods and services provided up to the time 3969 of cancellation and shall not be liable for any termination fee, 3970 liquidated damages, or other form of penalty for such 3971 cancellation. 3972 Section 28. Section 719.303, Florida Statutes, is amended 3973 to read: 3974 719.303 Obligations of shareholdersowners.— 3975 (1) Each shareholderunit owner, each tenant and other 3976 invitee, and each association shall be governed by, and shall 3977 comply with the provisions of, this chapter, the cooperative 3978 documents, the documents creating the association, and the 3979 association bylaws, and the provisions thereof shall be deemed 3980 expressly incorporated into any lease of a unit. Actions for 3981 damages or for injunctive relief, or both, for failure to comply 3982 with these provisions may be brought by the association or by a 3983 shareholderunit owneragainst: 3984 (a) The association. 3985 (b) A shareholderunit owner. 3986 (c) Directors designated by the developer, for actions 3987 taken by them prior to the time control of the association is 3988 assumed by shareholdersunit ownersother than the developer. 3989 (d) Any director who willfully and knowingly fails to 3990 comply with these provisions. 3991 (e) Any tenant leasing a unit, and any other invitee 3992 occupying a unit. 3993 3994 The prevailing party in any such action or in any action in 3995 which the purchaser claims a right of voidability based upon 3996 contractual provisions as required in s. 719.503(1)(a) is 3997 entitled to recover reasonable attorney’s fees. A shareholder 3998unit ownerprevailing in an action between the association and 3999 the shareholderunit ownerunder this section, in addition to 4000 recovering his or her reasonable attorney’s fees, may recover 4001 additional amounts as determined by the court to be necessary to 4002 reimburse the shareholderunit ownerfor his or her share of 4003 assessments levied by the association to fund its expenses of 4004 the litigation. This relief does not exclude other remedies 4005 provided by law. Actions arising under this subsection shall not 4006 be deemed to be actions for specific performance. 4007 (2) A provision of this chapter may not be waived if the 4008 waiver would adversely affect the rights of a shareholderunit4009owneror the purpose of the provision, except that shareholders 4010unit ownersor members of a board of administration may waive 4011 notice of specific meetings in writing if provided by the 4012 bylaws. Any instrument given in writing by the shareholderunit4013owneror purchaser to an escrow agent may be relied upon by an 4014 escrow agent, whether or not such instruction and the payment of 4015 funds thereunder might constitute a waiver of any provision of 4016 this chapter. 4017 (3) If a shareholder is delinquent for more than 90 days in 4018 the payment of a regular or special assessment or if the 4019 cooperative documents so provide, the association may suspend, 4020 for a reasonable time, the right of a shareholder or a 4021 shareholder’s occupant, licensee, or invitee to use the common 4022 areas, common facilities, or any other association property. 4023 This subsection does not apply to limited common areas intended 4024 to be used by that unit, common areas that must be used to 4025 access the unit, utility services provided to the unit, parking 4026 areas, or elevators. The association may also levy reasonable 4027 fines against a shareholderunit ownerfor failure of the 4028 shareholderunit owneror his or her licensee or invitee or the 4029 unit’s occupant to comply with any provision of the cooperative 4030 documents or reasonable rules of the association. No fine shall 4031 become a lien against a unit. No fine shall exceed $100 per 4032 violation. However, a fine may be levied on the basis of each 4033 day of a continuing violation, with a single notice and 4034 opportunity for hearing, provided that no such fine shall in the 4035 aggregate exceed $1,000. No fine may be levied except after 4036 giving reasonable notice and opportunity for a hearing to the 4037 shareholderunit ownerand, if applicable, his or her licensee 4038 or invitee. The hearing shall be held before a committee of 4039 other shareholders who are neither board members nor persons 4040 residing in a board member’s householdunit owners. If the 4041 committee does not agree with the fine, it shall not be levied. 4042 This subsection does not apply to unoccupied units. 4043 (4) The notice and hearing requirements of subsection (3) 4044 do not apply to the imposition of suspensions and fines against 4045 a shareholder or a shareholder’s occupant, licensee, or invitee 4046 because of the failure to pay any amounts due the association. 4047 If such a fine or suspension is imposed, the association may 4048 levy the fine or impose a reasonable suspension at a properly 4049 noticed board meeting, and after the imposition of such fine or 4050 suspension, the association must notify the shareholder and, if 4051 applicable, the shareholder’s occupant, licensee, or invitee by 4052 mail or hand delivery. 4053 Section 29. Section 719.501, Florida Statutes, is amended 4054 to read: 4055 719.501 Authority, responsibilities,Powersand duties of 4056 Division of Florida Condominiums, Timeshares, and Mobile Homes.— 4057 (1) The Division of Florida Condominiums, Timeshares, and 4058 Mobile Homes of the Department of Business and Professional 4059 Regulation, referred to as the “division” in this part, in 4060 addition to other powers and duties prescribed by chapter 718, 4061 has the power to enforce and ensure compliance with this chapter 4062 and adopted rules relating to the development, construction, 4063 sale, lease, ownership, operation, and management of residential 4064 cooperative units. In performing its duties, the division shall 4065 have the following powers and duties: 4066 (a) The division may make necessary public or private 4067 investigations within or outside this state to determine whether 4068 any person has violated this chapter or any rule or order 4069 hereunder, to aid in the enforcement of this chapter, or to aid 4070 in the adoption of rules or forms hereunder. 4071 (b) The division may require or permit any person to file a 4072 statement in writing, under oath or otherwise, as the division 4073 determines, as to the facts and circumstances concerning a 4074 matter to be investigated. 4075 (c) For the purpose of any investigation under this 4076 chapter, the division director or any officer or employee 4077 designated by the division director may administer oaths or 4078 affirmations, subpoena witnesses and compel their attendance, 4079 take evidence, and require the production of any matter which is 4080 relevant to the investigation, including the existence, 4081 description, nature, custody, condition, and location of any 4082 books, documents, or other tangible things and the identity and 4083 location of persons having knowledge of relevant facts or any 4084 other matter reasonably calculated to lead to the discovery of 4085 material evidence. Upon failure by a person to obey a subpoena 4086 or to answer questions propounded by the investigating officer 4087 and upon reasonable notice to all persons affected thereby, the 4088 division may apply to the circuit court for an order compelling 4089 compliance. 4090 (d) Notwithstanding any remedies available to shareholders 4091unit ownersand associations, if the division has reasonable 4092 cause to believe that a violation of any provision of this 4093 chapter or related rule has occurred, the division may institute 4094 enforcement proceedings in its own name against a developer, 4095 association, officer, or member of the board, or its assignees 4096 or agents, as follows: 4097 1. The division may permit a person whose conduct or 4098 actions may be under investigation to waive formal proceedings 4099 and enter into a consent proceeding whereby orders, rules, or 4100 letters of censure or warning, whether formal or informal, may 4101 be entered against the person. 4102 2. The division may issue an order requiring the developer, 4103 association, officer, or member of the board, or its assignees 4104 or agents, or any community association manager or community 4105 association management firm to cease and desist from the 4106 unlawful practice and take such affirmative action as in the 4107 judgment of the division will carry out the purposes of this 4108 chapter. If the division finds that a developer, association, 4109 officer, or member of the board of directors, or its assignees 4110 or agents, or any community association manager or community 4111 association management firm is violating or is about to violate 4112 any provision of this chapter, any rule adopted or order issued 4113 by the division, or any written agreement entered into with the 4114 division, and presents an immediate danger to the public 4115 requiring an immediate final order, it may issue an emergency 4116 cease and desist order reciting with particularity the facts 4117 underlying such findings. The emergency cease and desist order 4118 is effective for 90 days. If the division begins nonemergency 4119 cease and desist proceedings, the emergency cease and desist 4120 order remains effective until the conclusion of the proceedings 4121 under ss. 120.569 and 120.57.Such affirmative action may4122include, but is not limited to, an order requiring a developer4123to pay moneys determined to be owed to a condominium4124association.4125 3. If a developer fails to pay any restitution determined 4126 by the division to be owed, plus any accrued interest at the 4127 highest rate permitted by law, within 30 days after expiration 4128 of any appellate time period of a final order requiring payment 4129 of restitution or the conclusion of any appeal thereof, 4130 whichever is later, the division shall bring an action in 4131 circuit or county court on behalf of any association, class of 4132 shareholders, lessees, or purchasers for restitution, 4133 declaratory relief, injunctive relief, or any other available 4134 remedy. The division may also temporarily revoke its acceptance 4135 of the filing for the developer to which the restitution relates 4136 until payment of restitution is made.The division may bring an4137action in circuit court on behalf of a class of unit owners,4138lessees, or purchasers for declaratory relief, injunctive4139relief, or restitution.4140 4. The division may petition the court for the appointment 4141 of a receiver or conservator. If appointed, the receiver or 4142 conservator may take action to implement the court order to 4143 ensure the performance of the order and to remedy any breach 4144 thereof. In addition to all other means provided by law for the 4145 enforcement of an injunction or temporary restraining order, the 4146 circuit court may impound or sequester the property of a party 4147 defendant, including books, papers, documents, and related 4148 records, and allow the examination and use of the property by 4149 the division and a court-appointed receiver or conservator. 4150 5. The division may apply to the circuit court for an order 4151 of restitution in which the defendant in an action brought 4152 pursuant to subparagraph 4. shall be ordered to make restitution 4153 of those sums shown by the division to have been obtained by the 4154 defendant in violation of this chapter. Such restitution shall, 4155 at the option of the court, be payable to the conservator or 4156 receiver appointed pursuant to subparagraph 4. or directly to 4157 the persons whose funds or assets were obtained in violation of 4158 this chapter. 4159 6.4.The division may impose a civil penalty against a 4160 developer or association, or its assignees or agents, for any 4161 violation of this chapter orrelatedrule adopted under this 4162 chapter. The division may impose a civil penalty individually 4163 against any officer or board member who willfully and knowingly 4164 violates a provision of this chapter, a rule adopted pursuant to 4165 this chapter, or a final order of the division; may order the 4166 removal of such individual as an officer or from the board of 4167 directors or as an officer of the association; and may prohibit 4168 such individual from serving as an officer or on the board of a 4169 community association for a stated period of time. The term 4170 “willfully and knowingly” means that the division informed the 4171 officer or board member that his or her action or intended 4172 action violates this chapter, a rule adopted under this chapter, 4173 or a final order of the division, and that the officer or board 4174 member refused to comply with the requirements of this chapter, 4175 a rule adopted under this chapter, or a final order of the 4176 division. The division, prior to initiating formal agency action 4177 under chapter 120, shall afford the officer or board member an 4178 opportunity to voluntarily comply with this chapter, a rule 4179 adopted under this chapter, or a final order of the division. An 4180 officer or board member who complies within 10 days is not 4181 subject to a civil penalty. A penalty may be imposed on the 4182 basis of each day of continuing violation, but in no event shall 4183 the penalty for any offense exceed $5,000. By January 1, 1998, 4184 the division shall adopt, by rule, penalty guidelines applicable 4185 to possible violations or to categories of violations of this 4186 chapter or rules adopted by the division. The guidelines must 4187 specify a meaningful range of civil penalties for each such 4188 violation of the statute and rules and must be based upon the 4189 harm caused by the violation, the repetition of the violation, 4190 and upon such other factors deemed relevant by the division. For 4191 example, the division may consider whether the violations were 4192 committed by a developer or shareholder-controlledowner4193controlledassociation, the size of the association, and other 4194 factors. The guidelines must designate the possible mitigating 4195 or aggravating circumstances that justify a departure from the 4196 range of penalties provided by the rules. It is the legislative 4197 intent that minor violations be distinguished from those which 4198 endanger the health, safety, or welfare of the cooperative 4199 residents or other persons and that such guidelines provide 4200 reasonable and meaningful notice to the public of likely 4201 penalties that may be imposed for proscribed conduct. This 4202 subsection does not limit the ability of the division to 4203 informally dispose of administrative actions or complaints by 4204 stipulation, agreed settlement, or consent order. All amounts 4205 collected shall be deposited with the Chief Financial Officer to 4206 the credit of the Division of Florida Condominiums, Timeshares, 4207 and Mobile Homes Trust Fund. If a developer fails to pay the 4208 civil penalty and the amount deemed to be owed to the 4209 association, the division shall thereupon issue an order 4210 directing that such developer cease and desist from further 4211 operation until such time as the civil penalty is paid or may 4212 pursue enforcement of the penalty in a court of competent 4213 jurisdiction. If an association fails to pay the civil penalty, 4214 the division shall thereupon pursue enforcement in a court of 4215 competent jurisdiction, and the order imposing the civil penalty 4216 or the cease and desist order shall not become effective until 4217 20 days after the date of such order. Any action commenced by 4218 the division shall be brought in the county in which the 4219 division has its executive offices or in the county where the 4220 violation occurred. 4221 7. If a shareholder presents the division with proof that 4222 the shareholder has requested access to official records in 4223 writing by certified mail, and that after 10 days the 4224 shareholder again made the same request for access to official 4225 records in writing by certified mail, and that more than 10 days 4226 has elapsed since the second request and the association has 4227 still failed or refused to provide access to official records as 4228 required by this chapter, the division shall issue a subpoena 4229 requiring production of the requested records where the records 4230 are kept pursuant to s. 719.104. 4231 8. In addition to subparagraph 6., the division may seek 4232 the imposition of a civil penalty through the circuit court for 4233 any violation for which the division may issue a notice to show 4234 cause under paragraph (r). The civil penalty shall be at least 4235 $500 but no more than $5,000 for each violation. The court may 4236 also award to the prevailing party court costs and reasonable 4237 attorney’s fees and, if the division prevails, may also award 4238 reasonable costs of investigation. 4239 9. When the division finds that any person has derived an 4240 improper personal benefit from a cooperative association, the 4241 division shall order the person to pay restitution to the 4242 association and shall order the person to pay to the division 4243 the costs of investigation and prosecution. 4244 (e) The division may prepare and disseminate a prospectus 4245 and other information to assist prospective shareholdersowners, 4246 purchasers, lessees, and developers of residential cooperatives 4247 in assessing the rights, privileges, and duties pertaining 4248 thereto. 4249 (f) The division has authority to adopt rules pursuant to 4250 ss. 120.536(1) and 120.54 to implement and enforce the 4251 provisions of this chapter. 4252 (g) The division shall establish procedures for providing 4253 notice to an association, and to the developer during the period 4254 when the developer controls the association, when the division 4255 is considering the issuance of a declaratory statement with 4256 respect to the cooperative documents governing such cooperative 4257 community. 4258 (h) The division shall furnish each association which pays 4259 the fees required by paragraph (2)(a) a copy of this chapter 4260act, subsequent changes to this acton an annual basis, asan4261 amendedversion of this act as it becomes available from the4262Secretary of State’s office on a biennial basis, and the rules 4263 adopted thereto on an annual basis. 4264 (i) The division shall annually provide each association 4265 with a summary of declaratory statements and formal legal 4266 opinions relating to the operations of cooperatives which were 4267 rendered by the division during the previous year. 4268(j) The division shall adopt uniform accounting principles,4269policies, and standards to be used by all associations in the4270preparation and presentation of all financial statements4271required by this chapter. The principles, policies, and4272standards shall take into consideration the size of the4273association and the total revenue collected by the association.4274 (j)(k)The division shall provide training and educational 4275 programs for cooperative association board members and 4276 shareholdersunit owners. The training may, in the division’s 4277 discretion, include web-based electronic media and live training 4278 and seminars in various locations throughout the state. The 4279 division may review and approve educational and training 4280 programs for board members and shareholders offered by providers 4281 and shall maintain a current list of approved programs and 4282 providers and make such list available to board members and 4283 shareholders in a reasonable and cost-effective manner. 4284 (k)(l)The division shall maintain a toll-free telephone 4285 number accessible to cooperative shareholdersunit owners. 4286 (l) The division shall develop a program to certify both 4287 volunteer and paid mediators to provide mediation of cooperative 4288 disputes. The division shall provide, upon request, a list of 4289 such mediators to any association, shareholder, or other 4290 participant in arbitration proceedings under s. 719.1255 4291 requesting a copy of the list. The division shall include on the 4292 list of volunteer mediators only the names of persons who have 4293 received at least 20 hours of training in mediation techniques 4294 or who have mediated at least 20 disputes. In order to become 4295 initially certified by the division, paid mediators must be 4296 certified by the Supreme Court to mediate court cases in county 4297 or circuit courts. However, the division may adopt, by rule, 4298 additional factors for the certification of paid mediators, 4299 which factors must be related to experience, education, or 4300 background. Any person initially certified as a paid mediator by 4301 the division must, in order to continue to be certified, comply 4302 with the factors or requirements imposed by rules adopted by the 4303 division. 4304 (m) When a complaint is made to the division, the division 4305 shall conduct its inquiry with reasonable dispatch and with due 4306 regard to the interests of the affected parties. Within 30 days 4307 after receipt of a complaint, the division shall acknowledge the 4308 complaint in writing and notify the complainant whether the 4309 complaint is within the jurisdiction of the division and whether 4310 additional information is needed by the division from the 4311 complainant. The division shall conduct its investigation and 4312 shall, within 90 days after receipt of the original complaint or 4313 timely requested additional information, take action upon the 4314 complaint. However, the failure to complete the investigation 4315 within 90 days does not prevent the division from continuing the 4316 investigation, accepting or considering evidence obtained or 4317 received after 90 days, or taking administrative action if 4318 reasonable cause exists to believe that a violation of this 4319 chapter or a rule of the division has occurred. If an 4320 investigation is not completed within the time limits 4321 established in this paragraph, the division shall, on a monthly 4322 basis, notify the complainant in writing of the status of the 4323 investigation. When reporting its action to the complainant, the 4324 division shall inform the complainant of any right to a hearing 4325 pursuant to ss. 120.569 and 120.57. 4326 (n) Cooperative association directors, officers, and 4327 employees, cooperative developers, community association 4328 managers, and community association management firms have an 4329 ongoing duty to reasonably cooperate with the division in any 4330 investigation pursuant to this section. The division shall refer 4331 to local law enforcement authorities any person who the division 4332 believes has altered, destroyed, concealed, or removed any 4333 record, document, or thing required to be kept or maintained by 4334 this chapter with the purpose to impair its verity or 4335 availability in the department’s investigation. 4336 (o) The division may: 4337 1. Contract with agencies in this state or other 4338 jurisdictions to perform investigative functions; or 4339 2. Accept grants-in-aid from any source. 4340 (p) The division shall cooperate with similar agencies in 4341 other jurisdictions to establish uniform filing procedures and 4342 forms, public offering statements, advertising standards, and 4343 rules and common administrative practices. 4344 (q) The division shall consider notice to a developer to be 4345 complete when it is delivered to the developer’s address 4346 currently on file with the division. 4347 (r) In addition to its enforcement authority, the division 4348 may issue a notice to show cause, which shall provide for a 4349 hearing, upon written request, in accordance with chapter 120. 4350 (s) In the annual report required by s. 718.501(1)(s), the 4351 division shall also report the same information for cooperative 4352 associations. The division may combine figures and issues into 4353 one report covering both condominiums and cooperatives. 4354(n) The division shall develop a program to certify both4355volunteer and paid mediators to provide mediation of cooperative4356disputes. The division shall provide, upon request, a list of4357such mediators to any association, unit owner, or other4358participant in arbitration proceedings under s.718.12554359requesting a copy of the list. The division shall include on the4360list of voluntary mediators only persons who have received at4361least 20 hours of training in mediation techniques or have4362mediated at least 20 disputes. In order to become initially4363certified by the division, paid mediators must be certified by4364the Supreme Court to mediate court cases in county or circuit4365courts. However, the division may adopt, by rule, additional4366factors for the certification of paid mediators, which factors4367must be related to experience, education, or background. Any4368person initially certified as a paid mediator by the division4369must, in order to continue to be certified, comply with the4370factors or requirements imposed by rules adopted by the4371division.4372 (2)(a) Each cooperative association shall pay to the 4373 division, on or before January 1 of each year, an annual fee in 4374 the amount of $4 for each residential unit in cooperatives 4375 operated by the association. If the fee is not paid by March 1, 4376 then the association shall be assessed a penalty of 10 percent 4377 of the amount due, and the association shall not have the 4378 standing to maintain or defend any action in the courts of this 4379 state until the amount due, plus any penalty, is paid. 4380 (b) All fees shall be deposited in the Division of Florida 4381 Condominiums, Timeshares, and Mobile Homes Trust Fund as 4382 provided by law. 4383 Section 30. Paragraph (b) of subsection (1) and paragraph 4384 (a) of subsection (2) of section 719.503, Florida Statutes, are 4385 amended to read: 4386 719.503 Disclosure prior to sale.— 4387 (1) DEVELOPER DISCLOSURE.— 4388 (b) Copies of documents to be furnished to prospective 4389 buyer or lessee.—Until such time as the developer has furnished 4390 the documents listed below to a person who has entered into a 4391 contract to purchase a unit or lease it for more than 5 years, 4392 the contract may be voided by that person, entitling the person 4393 to a refund of any deposit together with interest thereon as 4394 provided in s. 719.202. The contract may be terminated by 4395 written notice from the proposed buyer or lessee delivered to 4396 the developer within 15 days after the buyer or lessee receives 4397 all of the documents required by this section. The developer 4398 shall not close for 15 days following the execution of the 4399 agreement and delivery of the documents to the buyer as 4400 evidenced by a receipt for documents signed by the buyer unless 4401 the buyer is informed in the 15-day voidability period and 4402 agrees to close prior to the expiration of the 15 days. The 4403 developer shall retain in his or her records a separate signed 4404 agreement as proof of the buyer’s agreement to close prior to 4405 the expiration of suchsaidvoidability period. SuchSaidproof 4406 shall be retained for a period of 5 years after the date of the 4407 closing transaction. The documents to be delivered to the 4408 prospective buyer are the prospectus or disclosure statement 4409 with all exhibits, if the development is subject to the 4410 provisions of s. 719.504, or, if not, then copies of the 4411 following which are applicable: 4412 1. The question and answer sheet described in s. 719.504, 4413 and cooperative documents, or the proposed cooperative documents 4414 if the documents have not been recorded, which shall include the 4415 certificate of a surveyor approximately representing the 4416 locations required by s. 719.504719.104. 4417 2. The documents creating the association. 4418 3. The bylaws. 4419 4. The ground lease or other underlying lease of the 4420 cooperative. 4421 5. The management contract, maintenance contract, and other 4422 contracts for management of the association and operation of the 4423 cooperative and facilities used by the shareholdersunit owners4424 having a service term in excess of 1 year, and any management 4425 contracts that are renewable. 4426 6. The estimated operating budget for the cooperative and a 4427 schedule of expenses for each type of unit, including fees 4428 assessed to a shareholder who has exclusive use of limited 4429 common areas, where such costs are shared only by those entitled 4430 to use such limited common areas. 4431 7. The lease of recreational and other facilities that will 4432 be used only by shareholdersunit ownersof the subject 4433 cooperative. 4434 8. The lease of recreational and other common areas that 4435 will be used by shareholdersunit ownersin common with 4436 shareholdersunit ownersof other cooperatives. 4437 9. The form of unit lease if the offer is of a leasehold. 4438 10. Any declaration of servitude of properties serving the 4439 cooperative but not owned by shareholdersunit ownersor leased 4440 to them or the association. 4441 11. If the development is to be built in phases or if the 4442 association is to manage more than one cooperative, a 4443 description of the plan of phase development or the arrangements 4444 for the association to manage two or more cooperatives. 4445 12. If the cooperative is a conversion of existing 4446 improvements, the statements and disclosure required by s. 4447 719.616. 4448 13. The form of agreement for sale or lease of units. 4449 14. A copy of the floor plan of the unit and the plot plan 4450 showing the location of the residential buildings and the 4451 recreation and other common areas. 4452 15. A copy of all covenants and restrictions which will 4453 affect the use of the property and which are not contained in 4454 the foregoing. 4455 16. If the developer is required by state or local 4456 authorities to obtain acceptance or approval of any dock or 4457 marina facilities intended to serve the cooperative, a copy of 4458 any such acceptance or approval acquired by the time of filing 4459 with the division pursuant to s. 719.502(1) or a statement that 4460 such acceptance or approval has not been acquired or received. 4461 17. Evidence demonstrating that the developer has an 4462 ownership, leasehold, or contractual interest in the land upon 4463 which the cooperative is to be developed. 4464 (2) NONDEVELOPER DISCLOSURE.— 4465 (a) Each shareholderunit ownerwho is not a developer as 4466 defined by this chapter must comply with the provisions of this 4467 subsection prior to the sale of his or her interest in the 4468 association. Each prospective purchaser who has entered into a 4469 contract for the purchase of an interest in a cooperative is 4470 entitled, at the seller’s expense, to a current copy of the 4471 articles of incorporation of the association, the bylaws, and 4472 rules of the association, as well as a copy of the question and 4473 answer sheet as provided in s. 719.504. On and after July 1, 4474 2010, the prospective purchaser shall also be entitled to 4475 receive from the seller a copy of a governance form. Such form 4476 shall be provided by the division summarizing governance of 4477 cooperative associations. In addition to such other information 4478 as the division considers helpful to a prospective purchaser in 4479 understanding association governance, the governance form shall 4480 address the following subjects: 4481 1. The role of the board in conducting the day-to-day 4482 affairs of the association on behalf of, and in the best 4483 interests of, the shareholders. 4484 2. The board’s responsibility to provide advance notice of 4485 board and shareholder meetings. 4486 3. The rights of shareholders to attend and speak at board 4487 and shareholder meetings. 4488 4. The responsibility of the board and shareholders with 4489 respect to maintenance of the cooperative property. 4490 5. The responsibility of the board and shareholders to 4491 abide by the cooperative documents, this chapter, rules adopted 4492 by the division, and reasonable rules adopted by the board. 4493 6. Shareholders’ rights to inspect and copy association 4494 records and the limitations on such rights. 4495 7. Remedies available to shareholders with respect to 4496 actions by the board which may be abusive or beyond the board’s 4497 power and authority. 4498 8. The right of the board to hire a property management 4499 firm, subject to its own primary responsibility for such 4500 management. 4501 9. The responsibility of shareholders with regard to 4502 payment of regular or special assessments necessary for the 4503 operation of the property and the potential consequences of 4504 failure to pay such assessments. 4505 10. The voting rights of shareholders. 4506 11. Rights and obligations of the board in enforcement of 4507 rules in the cooperative documents and rules adopted by the 4508 board. 4509 4510 The governance form shall also include the following statement 4511 in conspicuous type: THIS PUBLICATION IS INTENDED AS AN INFORMAL 4512 EDUCATIONAL OVERVIEW OF COOPERATIVE GOVERNANCE. IN THE EVENT OF 4513 A CONFLICT, THE PROVISIONS OF CHAPTER 719, FLORIDA STATUTES, 4514 RULES ADOPTED BY THE DIVISION OF FLORIDA CONDOMINIUMS, 4515 TIMESHARES, AND MOBILE HOMES OF THE DEPARTMENT OF BUSINESS AND 4516 PROFESSIONAL REGULATION, THE PROVISIONS OF THE COOPERATIVE 4517 DOCUMENTS, AND REASONABLE RULES ADOPTED BY THE COOPERATIVE 4518 ASSOCIATION’S BOARD OF DIRECTORS PREVAIL OVER THE CONTENTS OF 4519 THIS PUBLICATION. 4520 Section 31. Paragraph (c) of subsection (2) of section 4521 720.303, Florida Statutes, is amended, and subsections (12), 4522 (13), and (14) are added to that section, to read: 4523 720.303 Association powers and duties; meetings of board; 4524 official records; budgets; financial reporting; association 4525 funds; recalls; borrowing; transfer fees.— 4526 (2) BOARD MEETINGS.— 4527 (c) The bylaws shall provide for giving notice to parcel 4528 owners and members of all board meetings and, if they do not do 4529 so, shall be deemed to provide the following: 4530 1. Notices of all board meetings must be posted in a 4531 conspicuous place in the community at least 48 hours in advance 4532 of a meeting, except in an emergency. In the alternative, if 4533 notice is not posted in a conspicuous place in the community, 4534 notice of each board meeting must be mailed or delivered to each 4535 member at least 7 days before the meeting, except in an 4536 emergency. Notwithstanding this general notice requirement, for 4537 communities with more than 100 members, the bylaws may provide 4538 for a reasonable alternative to posting or mailing of notice for 4539 each board meeting, including publication of notice, provision 4540 of a schedule of board meetings, or the conspicuous posting and 4541 repeated broadcasting of the notice on a closed-circuit cable 4542 television system serving the homeowners’ association. However, 4543 if broadcast notice is used in lieu of a notice posted 4544 physically in the community, the notice must be broadcast at 4545 least four times every broadcast hour of each day that a posted 4546 notice is otherwise required. When broadcast notice is provided, 4547 the notice and agenda must be broadcast in a manner and for a 4548 sufficient continuous length of time so as to allow an average 4549 reader to observe the notice and read and comprehend the entire 4550 content of the notice and the agenda. The bylaws or amended 4551 bylaws may provide for giving notice by electronic transmission 4552 in a manner authorized by law for meetings of the board of 4553 directors, committee meetings requiring notice under this 4554 section, and annual and special meetings of the members; 4555 however, a member must consent in writing to receiving notice by 4556 electronic transmission. 4557 2. An assessment may not be levied at a board meeting 4558 unless the notice of the meeting includes a statement that 4559 assessments will be considered and the nature of, the actual 4560 cost of, and a description of the purposes for suchthe4561 assessments. Written notice of any meeting at which special 4562 assessments will be considered or at which amendments to rules 4563 regarding parcel use will be considered must be mailed, 4564 delivered, or electronically transmitted to the members and 4565 parcel owners and posted conspicuously on the property or 4566 broadcast on closed-circuit cable television not less than 14 4567 days before the meeting. 4568 3. Directors may not vote by proxy or by secret ballot at 4569 board meetings, except that secret ballots may be used in the 4570 election of officers. This subsection also applies to the 4571 meetings of any committee or other similar body, when a final 4572 decision will be made regarding the expenditure of association 4573 funds, and to any body vested with the power to approve or 4574 disapprove architectural decisions with respect to a specific 4575 parcel of residential property owned by a member of the 4576 community. 4577 (12) BORROWING.—The borrowing of funds or committing to a 4578 line of credit by the board shall be considered a special 4579 assessment, and any meeting of the board to discuss such matters 4580 must be noticed as provided in paragraph (2)(c). The board may 4581 not borrow funds or enter into a line of credit for any purpose 4582 unless the specific use of the funds from the loan or line of 4583 credit is set forth in the notice of meeting with the same 4584 specificity as required for a special assessment or unless the 4585 borrowing or line of credit has received the prior approval of 4586 at least two-thirds of the voting interests of the association. 4587 (13) TRANSFER FEES.—No charge may be made by the 4588 association or anyone on its behalf in connection with the sale, 4589 mortgage, lease, sublease, or other transfer of a parcel. 4590 Nothing in this subsection may be construed to prohibit an 4591 association from requiring as a condition to permitting the 4592 letting or renting of a parcel, when the association has such 4593 authority in the documents, the depositing into an escrow 4594 account maintained by the association of a security deposit in 4595 an amount not to exceed the equivalent of 1 month’s rent. The 4596 security deposit shall protect against damages to the common 4597 areas or association property. Within 15 days after a tenant 4598 vacates the premises, the association shall refund the full 4599 security deposit or give written notice to the tenant of any 4600 claim made against the security. Disputes under this subsection 4601 shall be handled in the same fashion as disputes concerning 4602 security deposits under s. 83.49. 4603 (14) LIMIT ON EXPENDITURES AND CONTRIBUTIONS.—It shall be 4604 unlawful for an association to make any expenditure of 4605 association funds or to make any in-kind contribution of 4606 association assets that does not relate to the purposes for 4607 which the association is organized. 4608 (a) The association shall not make any contribution to a 4609 campaign or committee of continuous existence governed by 4610 chapter 105 or chapter 106. 4611 (b) The association shall not make any contribution to a 4612 charitable organization if the association does not receive a 4613 direct benefit from the organization. 4614 (c) Members of the board shall be jointly and severely 4615 liable to reimburse the association for any contribution, 4616 expenditure, or in-kind contribution made in violation of this 4617 subsection. 4618 Section 32. Paragraph (a) of subsection (2) of section 4619 720.304, Florida Statutes, is amended to read: 4620 720.304 Right of owners to peaceably assemble; display of 4621 flag; SLAPP suits prohibited.— 4622 (2)(a) Any homeowner may display within the boundaries of 4623 the homeowner’s parcel one portable, removable United States 4624 flagor official flag of the State of Florida in a respectful4625manner, and one portable, removable official flag,in a 4626 respectful way and, on Armed Forces Day, Memorial Day, Flag Day, 4627 Independence Day, and Veterans’ Day, may display in a respectful 4628 way portable, removable official flagsmanner, not larger than 4 4629 1/2 feet by 6 feet, which representrepresentsthe United States 4630 Army, Navy, Air Force, Marine Corps, or Coast Guard,or a POW4631MIA flag,regardless of any declarationcovenants, restrictions,4632bylaws, rules,or requirements dealing with flags or decorations 4633of the association. 4634 Section 33. Subsection (1) of section 720.306, Florida 4635 Statutes, is amended to read: 4636 720.306 Meetings of members; voting and election 4637 procedures; amendments.— 4638 (1) QUORUM; AMENDMENTS.— 4639 (a) Unless a lower number is provided in the bylaws, the 4640 percentage of voting interests required to constitute a quorum 4641 at a meeting of the members shall be 30 percent of the total 4642 voting interests. Unless otherwise provided in this chapter or 4643 in the articles of incorporation or bylaws, decisions that 4644 require a vote of the members must be made by the concurrence of 4645 at least a majority of the voting interests present, in person 4646 or by proxy, at a meeting at which a quorum has been attained. 4647 (b) Unless otherwise provided in the governing documents or 4648 required by law, and other than those matters set forth in 4649 paragraphsparagraph(c) and (d), any governing document of an 4650 association may be amended by the affirmative vote of two-thirds 4651 of the voting interests of the association. 4652 (c) Unless otherwise provided in the governing documents as 4653 originally recorded or permitted by this chapter or chapter 617, 4654 an amendment may not materially and adversely alter the 4655 proportionate voting interest appurtenant to a parcel or 4656 increase the proportion or percentage by which a parcel shares 4657 in the common expenses of the association unless the record 4658 parcel owner and all record owners of liens on the parcels join 4659 in the execution of the amendment. For purposes of this section, 4660 a change in quorum requirements is not an alteration of voting 4661 interests. The merger or consolidation of one or more 4662 associations under a plan of merger or consolidation under 4663 chapter 607 or chapter 617 shall not be considered a material or 4664 adverse alteration of the proportionate voting interest 4665 appurtenant to a parcel. 4666 (d) The method by which the bylaws may be amended 4667 consistent with the provisions of this chapter shall be stated. 4668 No bylaw shall be revised or amended by reference to its title 4669 or number only. Proposals to amend existing bylaws shall contain 4670 the full text of the bylaws to be amended. New words shall be 4671 inserted in the text underlined, and words to be deleted shall 4672 be lined through with hyphens. However, if the proposed change 4673 is so extensive that this procedure would hinder, rather than 4674 assist, the understanding of the proposed amendment, it is not 4675 necessary to use underlining and hyphens as indicators of words 4676 added or deleted, but, instead, a notation must be inserted 4677 immediately preceding the proposed amendment in substantially 4678 the following language: “Substantial rewording of bylaw. See 4679 bylaw _____ for present text.” Nonmaterial errors or omissions 4680 in the bylaw process will not invalidate an otherwise properly 4681 adopted amendment. 4682 Section 34. Section 720.3065, Florida Statutes, is created 4683 to read: 4684 720.3065 Qualifications of directors and officers.— 4685 (1) DIRECTOR OR OFFICER OFFENSES.—A director or officer 4686 charged by information or indictment with a felony theft or 4687 embezzlement offense involving the association’s funds or 4688 property shall be removed from office, creating a vacancy in the 4689 office to be filled according to law. While such director or 4690 officer has such criminal charge pending in the state or federal 4691 court system, he or she may not be appointed or elected to a 4692 position as a director or officer. However, should the charges 4693 be resolved without a finding of guilt, the director or officer 4694 shall be reinstated for the remainder of his or her term of 4695 office, if any. 4696 (2) QUALIFICATION OF DIRECTORS.—In addition to any other 4697 requirement for office in statute, a person running for, seeking 4698 appointment to, or serving as a director of the board must meet 4699 the following qualifications: 4700 (a) In a homeowners’ association of 10 or more units, only 4701 one individual coowner of a unit may serve on the board. 4702 (b) No person may serve as a director of any homeowners’ 4703 association in the state if restricted from serving as director 4704 of a condominium or cooperative association by action of the 4705 division pursuant to s. 718.501(1)(d)6. 4706 (c) A person who has been convicted of any felony in this 4707 state or in a United States District or Territorial Court, or 4708 who has been convicted of any offense in another jurisdiction 4709 that would be considered a felony if committed in this state, is 4710 not eligible for board membership unless such felon’s civil 4711 rights have been restored for a period of no less than 5 years 4712 as of the date on which such person seeks election to the board. 4713 (d) A director more than 90 days delinquent in the payment 4714 of regular assessments shall be deemed to have abandoned his or 4715 her office. 4716 (e) Within 30 days after being elected or appointed to the 4717 board, a director must certify in writing to the secretary of 4718 the association that he or she has read this chapter and the 4719 association’s covenants, articles of incorporation, bylaws, and 4720 current written policies. The director shall further certify 4721 that he or she will work to uphold such documents and policies 4722 to the best of his or her ability and that he or she will 4723 faithfully discharge his or her fiduciary responsibility to the 4724 association’s members. If a court finds that a director has 4725 falsely certified that he or she has read the required statutes 4726 and documents, the court shall order the director removed from 4727 the board and shall order the director to reimburse the opposing 4728 party in the litigation for all reasonable costs and attorney’s 4729 fees. 4730 (f) After turnover of the association pursuant to s. 4731 720.307(1), a director must: 4732 1. If the parcel is owned by an individual or individuals, 4733 be one of those individuals. 4734 2. If the parcel is owned by a trust, be an individual 4735 qualified pursuant to s. 617.0802. 4736 4737 These qualifications shall operate on a continuing basis, and, 4738 upon the failure of a director at any time to meet a 4739 qualification, the director shall be removed from office and 4740 that office shall be deemed vacant. 4741 Section 35. Section 720.3068, Florida Statutes, is created 4742 to read: 4743 720.3068 Meetings.—Regular meetings of the board shall be 4744 held at such time and place as provided in the bylaws until the 4745 first regular meeting held on or after July 1, 2010. Thereafter, 4746 the location and time for regular board meetings shall be 4747 determined by a majority vote of the parcel owners at the next 4748 regular meeting held on or after July 1, 2010. Once the time and 4749 place for regular board meetings have been selected, neither may 4750 be changed unless approved by a majority vote of the parcel 4751 owners. Regular meetings of the board held on weekdays may be 4752 held no earlier than 6 p.m. local time. 4753 Section 36. Subsection (1) of section 720.3085, Florida 4754 Statutes, is amended, and subsection (8) is added to that 4755 section, to read: 4756 720.3085 Payment for assessments; lien claims.— 4757 (1) When authorized by the governing documents, the 4758 association has a lien on each parcel to secure the payment of 4759 assessments and other amounts provided for by this section. 4760 Except as otherwise set forth in this section, the lien is 4761 effective from and shall relate back to the date on which the 4762 original declaration of the community was recorded.However, as4763to first mortgages of record, the lien is effective from and4764after recording of a claim of lien in the public records of the4765county in which the parcel is located. This subsection does not4766bestow upon any lien, mortgage, or certified judgment of record4767on July 1, 2008, including the lien for unpaid assessments4768created in this section, a priority that, by law, the lien,4769mortgage, or judgment did not have before July 1, 2008.4770 (a) To be valid, a claim of lien must state the description 4771 of the parcel, the name of the record owner, the name and 4772 address of the association, the assessment amount due, and the 4773 due date. The claim of lien shall secure all unpaid assessments 4774 that are due and that may accrue subsequent to the recording of 4775 the claim of lien and before entry of a certificate of title, as 4776 well as interest, late charges, and reasonable costs and 4777 attorney’s fees incurred by the association incident to the 4778 collection process. A notice of delinquency sent to a parcel 4779 owner shall provide an overall total of assessments claimed by 4780 the association and shall specify for each assessment or charge 4781 the date of the assessment or charge, the principal balance owed 4782 for the assessment or charge, and affiliated late fees or 4783 collection charges. Costs to a parcel owner secured by the 4784 association’s claim of lien with regard to collection efforts by 4785 management companies or licensed managers as to any delinquent 4786 installment of an assessment may not exceed $50. However, there 4787 shall be no charge for the first notice of a delinquency to the 4788 parcel owner. The person making the payment is entitled to a 4789 satisfaction of the lien upon payment in full. 4790 (b) By recording a notice in substantially the following 4791 form, a parcel owner or the parcel owner’s agent or attorney may 4792 require the association to enforce a recorded claim of lien 4793 against his or her parcel: 4794 NOTICE OF CONTEST OF LIEN 4795 4796 TO: ...(Name and address of association)... 4797 You are notified that the undersigned contests the claim of lien 4798 filed by you on ...., ...(year)..., and recorded in Official 4799 Records Book .... at page ...., of the public records of .... 4800 County, Florida, and that the time within which you may file 4801 suit to enforce your lien is limited to 90 days following the 4802 date of service of this notice. Executed this .... day of ...., 4803 ...(year).... 4804 Signed: ...(Owner or Attorney)... 4805 After the notice of a contest of lien has been recorded, the 4806 clerk of the circuit court shall mail a copy of the recorded 4807 notice to the association by certified mail, return receipt 4808 requested, at the address shown in the claim of lien or the most 4809 recent amendment to it and shall certify to the service on the 4810 face of the notice. Service is complete upon mailing. After 4811 service, the association has 90 days in which to file an action 4812 to enforce the lien and, if the action is not filed within the 4813 90-day period, the lien is void. However, the 90-day period 4814 shall be extended for any length of time that the association is 4815 prevented from filing its action because of an automatic stay 4816 resulting from the filing of a bankruptcy petition by the parcel 4817 owner or by any other person claiming an interest in the parcel. 4818 (c) The association may bring an action in its name to 4819 foreclose a lien for assessments in the same manner in which a 4820 mortgage of real property is foreclosed and may also bring an 4821 action to recover a money judgment for the unpaid assessments 4822 without waiving any claim of lien. The association is entitled 4823 to recover its reasonable attorney’s fees incurred in an action 4824 to foreclose a lien or an action to recover a money judgment for 4825 unpaid assessments. 4826 (d) If the parcel owner remains in possession of the parcel 4827 after a foreclosure judgment has been entered, the court may 4828 require the parcel owner to pay a reasonable rent for the 4829 parcel. If the parcel is rented or leased during the pendency of 4830 the foreclosure action, the association is entitled to the 4831 appointment of a receiver to collect the rent. The expenses of 4832 the receiver must be paid by the party who does not prevail in 4833 the foreclosure action. 4834 (e) The association may purchase the parcel at the 4835 foreclosure sale and hold, lease, mortgage, or convey the 4836 parcel. 4837 (8) During the pendency of any foreclosure action of a 4838 parcel in a homeowners’ association, if the parcel is occupied 4839 by a tenant and the parcel owner is delinquent in the payment of 4840 regular assessments, the association may demand that the tenant 4841 pay to the association the future regular assessments related to 4842 the parcel. The demand shall be continuing in nature, and upon 4843 demand the tenant shall continue to pay the regular assessments 4844 to the association until the association releases the tenant or 4845 the tenant discontinues tenancy in the unit. The association 4846 shall mail written notice to the unit owner of the association’s 4847 demand that the tenant pay regular assessments to the 4848 association. The tenant shall not be liable for increases in the 4849 amount of the regular assessments due unless the tenant was 4850 reasonably notified of the increase prior to the day that the 4851 rent is due. The tenant shall be given a credit against rents 4852 due to the parcel owner in the amount of assessments paid to the 4853 association. The association shall, upon request, provide the 4854 tenant with written receipts for payments made. The association 4855 may issue notices under s. 83.56 and may sue for eviction under 4856 ss. 83.59-83.625 as if the association were a landlord under 4857 part II of chapter 83 should the tenant fail to pay an 4858 assessment. However, the association shall not otherwise be 4859 considered a landlord under chapter 83 and shall specifically 4860 not have any duty under s. 83.51. The tenant shall not, by 4861 virtue of payment of assessments, have any of the rights of a 4862 parcel owner to vote in any election or to examine the books and 4863 records of the association. A court may supersede the effect of 4864 this subsection when appointing a receiver at the request of a 4865 mortgagee. 4866 Section 37. Section 720.314, Florida Statutes, is created 4867 to read: 4868 720.314 Parcel owner informational complaint.— 4869 (1) Any parcel owner may file an informational complaint to 4870 report alleged failures by the homeowners’ association or 4871 officers or directors of the association to comply with the 4872 provisions of this chapter. The informational complaint shall be 4873 in writing and signed by the complainant, and the accuracy of 4874 the facts alleged shall be sworn to before a notary public. 4875 Properly filed informational complaints shall be used for 4876 analysis and recommendations to the Legislature for changes to 4877 this chapter. 4878 (2) The informational complaint shall be in the format 4879 provided in subsection (3) and shall be filed with the Office of 4880 Program Policy Analysis and Government Accountability. If the 4881 form does not comply with the requirements provided in 4882 subsection (3), it shall be returned to the complainant as not 4883 in compliance with the requirements of this section and may not 4884 be considered by the Office of Program Policy Analysis and 4885 Government Accountability for any purpose. 4886 (3) The informational complaint shall be in substantially 4887 the following form: 4888 4889 PARCEL OWNER COMPLAINT 4890 4891 Name of complainant: 4892 Address of complainant: 4893 Name of association: 4894 Address of association: 4895 Statute not complied with: 4896 Name of officer: 4897 Name of director: 4898 Facts supporting violation (50 words or less): 4899 4900 ________________________ 4901 Signature of Complainant 4902 4903 Sworn to and subscribed to this _____ day of ______, (year) 4904 4905 _____________ 4906 Notary Public 4907 Section 38. Subsection (3) of section 721.16, Florida 4908 Statutes, is amended to read: 4909 721.16 Liens for overdue assessments; liens for labor 4910 performed on, or materials furnished to, a timeshare unit.— 4911 (3) The lien is effective from the date of recording a 4912 claim of lien in the public records of the county or counties in 4913 which the accommodations and facilities constituting the 4914 timeshare plan are located. The claim of lien shall state the 4915 name of the timeshare plan and identify the timeshare interest 4916 for which the lien is effective, state the name of the 4917 purchaser, state the assessment amount due, and state the due 4918 dates. Notwithstanding any provision of s. 718.116(5)(a) or s. 4919 719.108(5)(4)to the contrary, the lien is effective until 4920 satisfied or until 5 years have expired after the date the claim 4921 of lien is recorded unless, within that time, an action to 4922 enforce the lien is commenced pursuant to subsection (2). A 4923 claim of lien for assessments may include only assessments which 4924 are due when the claim is recorded. A claim of lien shall be 4925 signed and acknowledged by an officer or agent of the managing 4926 entity. Upon full payment, the person making the payment is 4927 entitled to receive a satisfaction of the lien. 4928 Section 39. This act shall take effect July 1, 2010.