Bill Text: FL S1502 | 2016 | Regular Session | Introduced


Bill Title: Homeowners' Associations

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-03-11 - Died in Regulated Industries [S1502 Detail]

Download: Florida-2016-S1502-Introduced.html
       Florida Senate - 2016                                    SB 1502
       
       
        
       By Senator Soto
       
       14-01621-16                                           20161502__
    1                        A bill to be entitled                      
    2         An act relating to homeowners’ associations; amending
    3         s. 20.165, F.S.; renaming the Division of Florida
    4         Condominiums, Timeshares, and Mobile Homes as the
    5         Division of Florida Condominiums, Homeowners’
    6         Associations, Timeshares, and Mobile Homes; amending
    7         s. 718.509, F.S.; renaming the Division of Florida
    8         Condominiums, Timeshares, and Mobile Homes Trust Fund
    9         as the Division of Florida Condominiums, Homeowners’
   10         Associations, Timeshares, and Mobile Homes Trust Fund;
   11         amending s. 720.301, F.S.; revising and defining
   12         terms; creating s. 720.3011, F.S.; providing that the
   13         Legislature reserves the power to amend or repeal ch.
   14         720, F.S.; requiring that homeowners’ associations be
   15         governed by such amendment or repeal; amending s.
   16         720.302, F.S.; clarifying legislative intent; creating
   17         s. 720.3021, F.S.; providing division powers and
   18         duties; creating s. 720.3022, F.S.; authorizing the
   19         division to investigate complaints relating to
   20         developer control and improper turnover; providing a
   21         procedure for taking action on such complaints;
   22         authorizing the division to conduct investigations to
   23         determine whether ch. 720, F.S., or rules adopted
   24         thereto have been violated; providing a procedure for
   25         conducting and administering an investigation;
   26         specifying conditions under which the division is
   27         authorized to institute enforcement proceedings in its
   28         own name; providing for service of process; requiring
   29         the division to adopt penalty guidelines; establishing
   30         factors the division must consider to adopt the
   31         guidelines; creating s. 720.3023, F.S.; requiring
   32         funds collected by the division to be deposited into
   33         the Florida Condominiums, Homeowners’ Associations,
   34         Timeshares, and Mobile Homes Trust Fund; creating s.
   35         720.3029, F.S.; requiring the payment of certain fees
   36         by homeowners’ associations; amending s. 720.303,
   37         F.S.; requiring written notice of a board meeting at
   38         which increases in assessments or amendments to
   39         governing documents will be considered; specifying
   40         notice requirements; amending s. 720.305, F.S.;
   41         authorizing a homeowners’ association to impose fines
   42         if its original governing documents authorized the
   43         imposition of such fines; prohibiting a fine from
   44         becoming a lien against a parcel; amending s. 720.306,
   45         F.S.; restricting the amendment of the declaration of
   46         a homeowners’ association to a specified vote of the
   47         affected parcels; revising annual meeting
   48         requirements; providing requirements for voting by
   49         general and limited proxy; revising provisions
   50         relating to board elections and vacancies; amending s.
   51         720.307, F.S.; revising the applicability of certain
   52         provisions that relate to the transition of
   53         association control in a community; amending ss.
   54         73.073, 192.037, 213.053, 326.002, 326.006, 380.0651,
   55         455.116, 475.455, 509.512, 559.935, 718.103, 718.105,
   56         718.1255, 718.501, 718.5011, 718.502, 718.503,
   57         718.504, 718.508, 718.608, 719.103, 719.1255, 719.501,
   58         719.502, 719.504, 719.508, 719.608, 721.05, 721.07,
   59         721.08, 721.26, 721.28, 721.301, 723.003, 723.006,
   60         723.009, 723.0611, and 723.1255, F.S.; conforming
   61         provisions to changes made by the act; providing an
   62         effective date.
   63          
   64  Be It Enacted by the Legislature of the State of Florida:
   65  
   66         Section 1. Paragraph (e) of subsection (2) of section
   67  20.165, Florida Statutes, is amended to read:
   68         20.165 Department of Business and Professional Regulation.
   69  There is created a Department of Business and Professional
   70  Regulation.
   71         (2) The following divisions of the Department of Business
   72  and Professional Regulation are established:
   73         (e) Division of Florida Condominiums, Homeowners’
   74  Associations, Timeshares, and Mobile Homes. The executive
   75  offices of the division shall be located in Tallahassee. The
   76  division may establish and maintain branch offices throughout
   77  the state.
   78         Section 2. Section 718.509, Florida Statutes, is amended to
   79  read:
   80         718.509 Division of Florida Condominiums, Homeowners’
   81  Associations, Timeshares, and Mobile Homes Trust Fund.—
   82         (1) The Division of Florida Condominiums, Homeowners’
   83  Associations, Timeshares, and Mobile Homes Trust Fund There is
   84  created within the State Treasury the Division of Florida
   85  Condominiums, Timeshares, and Mobile Homes Trust Fund to be used
   86  for the administration and operation of this chapter and
   87  chapters 718, 719, 721, and 723 by the division.
   88         (2) All moneys collected by the division from fees, fines,
   89  or penalties or from costs awarded to the division by a court or
   90  administrative final order shall be paid into the Division of
   91  Florida Condominiums, Homeowners’ Associations, Timeshares, and
   92  Mobile Homes Trust Fund. The Legislature shall appropriate funds
   93  from this trust fund sufficient to carry out the provisions of
   94  this chapter and the provisions of law with respect to each
   95  category of business covered by the trust fund. The division
   96  shall maintain separate revenue accounts in the trust fund for
   97  each of the businesses regulated by the division. The division
   98  shall provide for the proportionate allocation among the
   99  accounts of expenses incurred by the division in the performance
  100  of its duties with respect to each of these businesses. As part
  101  of its normal budgetary process, the division shall prepare an
  102  annual report of revenue and allocated expenses related to the
  103  operation of each of these businesses which may be used to
  104  determine fees charged by the division. This subsection shall
  105  operate pursuant to the provisions of s. 215.20.
  106         Section 3. Subsection (7) of section 720.301, Florida
  107  Statutes, is amended, present subsection (13) is renumbered as
  108  subsection (14), and a new subsection (13) is added to that
  109  section, to read:
  110         720.301 Definitions.—As used in this chapter, the term:
  111         (7) “Division” means the Division of Florida Condominiums,
  112  Homeowners’ Associations, Timeshares, and Mobile Homes in the
  113  Department of Business and Professional Regulation.
  114         (13) “Special assessment” means any assessment levied
  115  against a parcel owner other than the assessment required by a
  116  budget adopted annually.
  117         Section 4. Section 720.3011, Florida Statutes, is created
  118  to read:
  119         720.3011 Reservation of power to amend or repeal.—The
  120  Legislature has the power to amend or repeal all or part of this
  121  chapter at any time, and all homeowners’ associations subject to
  122  this chapter shall be governed by the amendment or repeal.
  123         Section 5. Subsections (1) and (2) of section 720.302,
  124  Florida Statutes, are amended to read:
  125         720.302 Purposes, scope, and application.—
  126         (1) The purposes of this chapter are to give statutory
  127  recognition to corporations not for profit that administer or
  128  operate residential communities in this state, to provide
  129  regulations procedures for operating homeowners’ associations,
  130  and to protect the rights of association members without unduly
  131  impairing the ability of such associations to perform their
  132  functions as authorized by federal, state, and local laws and
  133  the governing documents of the association.
  134         (2) Having provided certain powers and authority to
  135  homeowners’ associations and in deed restrictions created by
  136  developers of mandated properties in residential communities,
  137  the Legislature recognizes that it is necessary to provide
  138  regulatory oversight of such associations to ensure compliance
  139  with federal and state laws and local ordinances. It is the
  140  intent of the Legislature to protect the rights of parcel owners
  141  by ensuring that the powers and authority granted to homeowners’
  142  associations and in deed restrictions created by developers of
  143  mandated properties in residential communities conform to a
  144  system of checks and balances in order to prevent abuses by
  145  these governing authorities. Further The Legislature recognizes
  146  that it is not in the best interest of homeowners’ associations
  147  or the individual association members thereof to create or
  148  impose a bureau or other agency of state government to regulate
  149  the affairs of homeowners’ associations. However, in accordance
  150  with s. 720.311, the Legislature finds that homeowners’
  151  associations and their individual members will benefit from an
  152  expedited alternative process for the resolution of election and
  153  recall disputes and presuit mediation of other disputes
  154  involving covenant enforcement and authorizes the department to
  155  hear, administer, and determine these disputes as more fully set
  156  forth in this chapter. Further, The Legislature recognizes that
  157  certain contract rights that were created before June 14, 1995,
  158  were have been created for the benefit of homeowners’
  159  associations and their members thereof before the effective date
  160  of this act and that this chapter is ss. 720.301-720.407 are not
  161  intended to impair such contract rights, including, but not
  162  limited to, the rights of the developer to complete the
  163  community as initially contemplated.
  164         Section 6. Section 720.3021, Florida Statutes, is created
  165  to read:
  166         720.3021 Division powers and duties.—
  167         (1) The division has jurisdiction for, and may enforce
  168  compliance with, this chapter and the adopted rules relating to
  169  homeowners’ associations. The division may also:
  170         (a) Issue a notice to show cause, which must provide for a
  171  hearing, upon written request, in accordance with chapter 120.
  172         (b) Accept grants-in-aid from any source.
  173         (c) Prepare and disseminate a prospectus and other
  174  information to assist prospective owners, purchasers, lessees,
  175  and developers of homeowners’ associations in assessing
  176  associated rights, privileges, and duties.
  177         (2) The division shall:
  178         (a) Respond to complaints, conduct investigations, and
  179  impose penalties as provided under s. 720.3022.
  180         (b) Establish procedures for providing notice to an
  181  association and the developer during the period the developer
  182  controls the association if the division is considering the
  183  issuance of a declaratory statement with respect to the
  184  homeowners’ association or any related document governing such
  185  community.
  186         (c) Annually provide each association with a summary of
  187  declaratory statements and formal legal opinions relating to the
  188  operations of homeowners’ associations which were rendered by
  189  the division during the previous year.
  190         (d) Provide training and educational programs for
  191  homeowners’ association board members and parcel owners. The
  192  training may include web-based electronic media and live
  193  training and seminars in various locations throughout the state.
  194  The division may review and approve education and training
  195  programs offered by providers and shall maintain a current list
  196  of approved programs and providers and make such list available
  197  to board members and parcel owners in a reasonable and cost
  198  effective manner.
  199         (e) Maintain a toll-free telephone number accessible to
  200  homeowners’ association parcel owners.
  201         (f) Develop a program to certify both volunteer and paid
  202  mediators to provide mediation of homeowners’ association
  203  disputes. Upon request, the division shall provide a list of
  204  such mediators to any association, parcel owner, or other
  205  participant in arbitration proceedings under s. 718.1255.
  206         1. Only volunteer mediators who have received at least 20
  207  hours of training in mediation techniques or who have mediated
  208  at least 20 disputes may be included on the list.
  209         2. For initial certification by the division, paid
  210  mediators must be certified by the Supreme Court to mediate
  211  court cases in county or circuit courts. However, the division
  212  may adopt by rule additional factors related to the mediator’s
  213  experience, education, or background. To maintain certification,
  214  a person initially certified as a paid mediator by the division
  215  must comply with the factors or requirements adopted by rule.
  216         (g) Cooperate with similar agencies in other jurisdictions
  217  to establish uniform filing procedures and forms, public
  218  offering statements, advertising standards, and rules and common
  219  administrative practices.
  220         (h) Consider notice to a developer to be complete when it
  221  is delivered to the address of the developer currently on file
  222  with the division.
  223         (i) Adopt a seal by which it shall authenticate its
  224  records. Copies of the records of the division, and certificates
  225  purporting to relate the facts contained in those records, if
  226  authenticated by the seal, shall be prima facie evidence of the
  227  records in the courts of this state.
  228         (j) Submit to the Governor, the President of the Senate,
  229  and the Speaker of the House of Representatives an annual report
  230  that includes, at a minimum, the number of training programs
  231  provided for homeowners’ association board members and parcel
  232  owners under paragraph (d); and the number of complaints
  233  received by type, the number and percent of complaints
  234  acknowledged in writing within 30 days, the number and percent
  235  of resulting investigations conducted within 90 days, and the
  236  number of investigations exceeding the 90-day requirement as
  237  required under s. 720.3022(1). The annual report must also
  238  include an evaluation of the division’s core business processes
  239  and make recommendations for improvements, including statutory
  240  changes. The report shall be submitted by September 30 following
  241  the end of the fiscal year.
  242         (3) The department may adopt rules to administer and
  243  enforce this chapter.
  244         Section 7. Section 720.3022, Florida Statutes, is created
  245  to read:
  246         720.3022 Complaints; investigations; service of process;
  247  penalty guidelines.—
  248         (1) COMPLAINTS.—The division may investigate complaints and
  249  enforce compliance with respect to homeowners’ associations that
  250  are still under developer control and complaints against
  251  developers involving improper turnover or failure to turn over
  252  pursuant to s. 720.307. After turnover has occurred, the
  253  division may only investigate complaints related to financial
  254  issues, elections, and parcel owner access to association
  255  records pursuant to s. 720.303(4) and (5). If a complaint is
  256  made, the division must conduct its inquiry with due regard for
  257  the interests of the affected parties. Within 30 days after
  258  receiving a complaint:
  259         (a) The division shall acknowledge the complaint in writing
  260  and notify the complainant as to whether the complaint is within
  261  the jurisdiction of the division and whether additional
  262  information is needed by the division from the complainant.
  263         (b) The division shall conduct its investigation and,
  264  within 90 days after receipt of the original complaint or timely
  265  requested additional information, take action upon the
  266  complaint. However, the failure to complete the investigation
  267  within 90 days does not prevent the division from continuing the
  268  investigation, accepting or considering evidence obtained or
  269  received after 90 days, or taking administrative action if
  270  reasonable cause exists to believe that a violation of this
  271  chapter or related rule has occurred.
  272         (c) If an investigation is not completed within the time
  273  limits established in this subsection, the division shall, on a
  274  monthly basis, notify the complainant in writing of the status
  275  of the investigation.
  276         (d) When reporting its action to the complainant, the
  277  division shall inform the complainant of any right to a hearing
  278  pursuant to ss. 120.569 and 120.57.
  279         (2) INVESTIGATIONS.—The division may conduct necessary
  280  public or private investigations within or outside this state to
  281  determine whether there has been a violation of this chapter or
  282  related rules or orders, and to aid in the adoption of needed
  283  rules or forms.
  284         (a) For the purpose of conducting an investigation, the
  285  division director, or officer or employee designated by the
  286  division director, may administer oaths or affirmations,
  287  subpoena witnesses and compel their attendance, take evidence,
  288  and require the production of any matter that is relevant to an
  289  investigation, including the existence, description, nature,
  290  custody, condition, and location of any books, documents, or
  291  other tangible things and the identity and location of persons
  292  having knowledge of relevant facts or any other matter
  293  reasonably calculated to lead to the discovery of material
  294  evidence. Upon the failure by a person to obey a subpoena or to
  295  answer questions propounded by the investigating officer and
  296  upon reasonable notice to all affected persons, the division may
  297  apply to the circuit court for an order compelling compliance.
  298         (b) The division may require or permit any person to file a
  299  statement in writing, under oath or otherwise, as determined by
  300  the division, as to the facts and circumstances concerning a
  301  matter to be investigated.
  302         (c) The division may submit any official written report,
  303  worksheet, or other related paper, or a certified copy thereof,
  304  compiled, prepared, drafted, or otherwise made and authenticated
  305  by a financial examiner or analyst to be admitted as competent
  306  evidence in any hearing in which the financial examiner or
  307  analyst is available for cross-examination and attests under
  308  oath that such documents were prepared as a result of an
  309  examination or inspection conducted pursuant to this chapter.
  310         (d) Notwithstanding any remedies available to parcel owners
  311  and associations, if the division has reasonable cause to
  312  believe that a violation of this chapter or related rule has
  313  occurred, the division may institute enforcement proceedings in
  314  its own name against any developer, association, officer, or
  315  member of the board of administration, or its assignees or
  316  agents, as follows:
  317         1. The division may permit a person whose conduct or
  318  actions may be under investigation to waive formal proceedings
  319  and enter into a consent proceeding whereby orders, rules, or
  320  letters of censure or warning, whether formal or informal, may
  321  be entered against the person.
  322         2. The division may issue an order requiring the developer,
  323  association, developer-designated officer, or developer
  324  designated member of the board of administration, developer
  325  designated assignees or agents, community association manager,
  326  or community association management firm to cease and desist
  327  from the unlawful practice and take such affirmative action as
  328  the division determines will carry out the purposes of this
  329  chapter. If the division finds that a developer, association,
  330  officer, or member of the board of administration, or its
  331  assignees or agents, is violating or is about to violate this
  332  chapter, any rule adopted or order issued by the division, or
  333  any written agreement entered into with the division, and such
  334  violation presents an immediate danger to the public requiring
  335  an immediate final order, it may issue an emergency cease and
  336  desist order reciting with particularity the facts underlying
  337  such findings. The emergency cease and desist order is effective
  338  for 90 days. If the division begins nonemergency cease and
  339  desist proceedings, the emergency cease and desist order remains
  340  effective until the conclusion of the proceedings under ss.
  341  120.569 and 120.57.
  342         3. If a developer fails to pay restitution determined by
  343  the division to be owed, plus any accrued interest at the
  344  highest rate permitted by law, within 30 days after expiration
  345  of any appellate time period of a final order requiring payment
  346  of restitution or the conclusion of any appeal, whichever is
  347  later, the division shall bring an action in circuit or county
  348  court on behalf of any association, class of parcel owners,
  349  lessees, or purchasers for restitution, declaratory relief,
  350  injunctive relief, or any other available remedy. The division
  351  may also temporarily revoke its acceptance of the filing for the
  352  developer to which the restitution relates until payment of
  353  restitution is made.
  354         4. The division may petition the court for the appointment
  355  of a receiver or conservator. If appointed, the receiver or
  356  conservator may take action to implement the court order to
  357  ensure the performance of and to remedy any breach of the order.
  358  In addition to all other means provided by law for the
  359  enforcement of an injunction or temporary restraining order, the
  360  circuit court may impound or sequester the property of a party
  361  defendant, including books, papers, documents, and related
  362  records, and allow the examination and use of the property by
  363  the division and a court-appointed receiver or conservator.
  364         5. The division may apply to the circuit court for an order
  365  of restitution whereby the defendant in an action brought
  366  pursuant to subparagraph 4. is ordered to make restitution of
  367  those sums shown by the division to have been obtained by the
  368  defendant in violation of this chapter. At the option of the
  369  court, such restitution is payable to the conservator or
  370  receiver or directly to the persons whose funds or assets were
  371  obtained in violation of this chapter.
  372         6. The division may impose a civil penalty against a
  373  developer or association, or its assignee or agent, for any
  374  violation of this chapter or related rule. The division may
  375  impose a civil penalty individually against an officer or board
  376  member who willfully and knowingly violates this chapter, an
  377  adopted rule, or a final order of the division; may order the
  378  removal of such individual as an officer or from the board of
  379  administration or as an officer of the association; and may
  380  prohibit such individual from serving as an officer or on the
  381  board of a community association for a period of time. For
  382  purposes of this section, the term “willfully and knowingly”
  383  means that the division informed the officer or board member
  384  that his or her action or intended action violates this chapter,
  385  a related rule, or a final order of the division and that the
  386  officer or board member refused to comply with this chapter, the
  387  related rule, or the final order of the division. Before
  388  initiating formal agency action under chapter 120, the division
  389  must afford the officer or board member an opportunity to
  390  voluntarily comply, and if he or she complies within 10 days,
  391  the officer or board member is not subject to a civil penalty. A
  392  penalty may be imposed for each day of continuing violation, but
  393  may not exceed a total of $5,000.
  394         7. If a parcel owner presents the division with proof that
  395  the parcel owner has requested access to official records in
  396  writing by certified mail, and that after 10 days the parcel
  397  owner again made the same request for access to official records
  398  in writing by certified mail, and that more than 10 days has
  399  elapsed since the second request and the association has still
  400  failed or refused to provide access to official records as
  401  required by this chapter, the division shall issue a subpoena
  402  requiring production of the requested records where the records
  403  are kept pursuant to s. 720.303.
  404         8. In addition to subparagraph 6., the division may seek
  405  the imposition of a civil penalty through the circuit court for
  406  any violation for which the division may issue a notice to show
  407  cause under s. 720.302(11). The civil penalty must be at least
  408  $500 but may not exceed $5,000 for each violation. The court may
  409  also award to the prevailing party court costs and reasonable
  410  attorney fees and, if the division prevails, may also award
  411  reasonable costs of investigation.
  412         (e) Homeowners’ association directors, officers, and
  413  employees; homeowners’ association developers and community
  414  association managers; and community association management firms
  415  have an ongoing duty to reasonably cooperate with the division
  416  in any investigation pursuant to this chapter. The division
  417  shall refer to local law enforcement any person who the division
  418  believes has altered, destroyed, concealed, or removed any
  419  record, document, or thing required to be kept or maintained
  420  under this chapter for the purpose of impairing its verity or
  421  availability to the department’s investigation.
  422         (f) The division may contract with agencies in this state
  423  or other jurisdictions to perform investigative functions.
  424         (g) The division shall establish by rule the standards for
  425  reimbursement of actual verified expenses incurred in connection
  426  with an onsite review or investigation.
  427         (3) SERVICE OF PROCESS.—
  428         (a) In addition to the methods of service provided for in
  429  the Florida Rules of Civil Procedure and under state law,
  430  service may be made and is binding upon a defendant or
  431  respondent if the division:
  432         1. Acting as the petitioner or plaintiff, immediately sends
  433  a copy of the process and the pleading by certified mail to the
  434  defendant or respondent at his or her last known address; and
  435         2. Files an affidavit of compliance with this subsection on
  436  or before the return date of the process or within the time set
  437  by the court.
  438         (b) If a person, including a nonresident of this state,
  439  allegedly engages in conduct prohibited by this chapter or any
  440  rule or order of the division, has not filed a consent to
  441  service of process, and personal jurisdiction over him or her
  442  cannot otherwise be obtained in this state, the director may
  443  receive service of process in any noncriminal proceeding against
  444  that person or his or her successor which grows out of the
  445  conduct and which is brought by the division under this chapter
  446  or any rule or order of the division. Such process has the same
  447  force and validity as if personally served. Notice shall be
  448  given as provided in paragraph (a).
  449         (4) PENALTY GUIDELINES.—The division shall adopt by rule
  450  penalty guidelines applicable to violations or to categories of
  451  violations of this chapter or related rules. The guidelines must
  452  specify a meaningful range of civil penalties for each such
  453  violation of statute and rule and must be based upon the harm
  454  caused by the violation, the repetition of the violation, and
  455  upon such other factors deemed relevant by the division, such as
  456  the size of the association or whether the violations were
  457  committed by a developer- or owner-controlled association. The
  458  guidelines must designate possible mitigating or aggravating
  459  circumstances that might justify a departure from the range of
  460  penalties provided by the rules. It is the Legislature’s intent
  461  that minor violations be distinguished from those that endanger
  462  the health, safety, or welfare of parcel owners or other persons
  463  and that such guidelines provide reasonable and meaningful
  464  notice to the public of likely penalties that may be imposed for
  465  the proscribed conduct. This subsection does not limit the
  466  ability of the division to informally dispose of administrative
  467  actions or complaints by stipulation, agreed settlement, or
  468  consent order. All amounts collected shall be deposited into the
  469  Division of Florida Condominiums, Homeowners’ Associations,
  470  Timeshares, and Mobile Homes Trust Fund. If a developer fails to
  471  pay the civil penalty and the amount owed to the association,
  472  the division shall issue an order directing that such developer
  473  cease and desist from further operation until the civil penalty
  474  is paid or shall pursue enforcement of the penalty through court
  475  order. If an association fails to pay the civil penalty, the
  476  division shall pursue enforcement through court order, and the
  477  order imposing the civil penalty or the cease and desist order
  478  is not effective until 20 days after the date of such order. Any
  479  action commenced by the division shall be brought in the county
  480  in which the division has its executive offices or in the county
  481  where the violation occurred.
  482         Section 8. Section 720.3023, Florida Statutes, is created
  483  to read:
  484         720.3023 Depositing funds.—All funds collected by the
  485  division and any amounts paid as fees, fines, or penalties or
  486  from costs awarded to the division by a court or administrative
  487  final order under this chapter shall be deposited into the
  488  Division of Florida Condominiums, Homeowners’ Associations,
  489  Timeshares, and Mobile Homes Trust Fund created by s. 718.509.
  490         Section 9. Section 720.3029, Florida Statutes, is created
  491  to read:
  492         720.3029 Homeowners’ association fees.—Effective January 1,
  493  2017, each homeowners’ association that operates more than two
  494  parcels must pay to the division an annual fee of $4 for each
  495  residential parcel operated by the association. Beginning
  496  January 1, 2017, the division may increase the fee to reflect
  497  changes in the cost of living under s. 401(a)(17) of the
  498  Internal Revenue Code.
  499         (1) If the fee is not paid by March 1, the association
  500  shall be assessed a penalty of 10 percent of the amount due and
  501  will not have standing to maintain or defend any action in the
  502  courts of this state until the amount due, plus any penalty, is
  503  paid.
  504         (2) Funds collected shall be deposited into the Division of
  505  Florida Condominiums, Homeowners’ Associations, Timeshares, and
  506  Mobile Homes Trust Fund. Funds shall be used by the division
  507  for, but their use is not limited to, the review and approval of
  508  deed restrictions before being recorded at the county level by
  509  the developer or owner of the initial lots to be developed;
  510  education; enforcement; investigation; and prosecution of
  511  policies and procedures related to mandated properties.
  512         (3) The division shall furnish each association that pays
  513  fees under this section with a copy of this chapter, as amended,
  514  and related rules on an annual basis.
  515         Section 10. Paragraph (c) of subsection (2) of section
  516  720.303, Florida Statutes, is amended to read:
  517         720.303 Association powers and duties; meetings of board;
  518  official records; budgets; financial reporting; association
  519  funds; recalls.—
  520         (2) BOARD MEETINGS.—
  521         (c) The bylaws shall provide for giving notice to parcel
  522  owners and members of all board meetings and, if they do not do
  523  so, shall be deemed to provide the following:
  524         1. Notices of all board meetings must be posted in a
  525  conspicuous place in the community at least 48 hours in advance
  526  of a meeting, except in an emergency. In the alternative, if
  527  notice is not posted in a conspicuous place in the community,
  528  notice of each board meeting must be mailed or delivered to each
  529  member at least 7 days before the meeting, except in an
  530  emergency. Notwithstanding this general notice requirement, for
  531  communities with more than 100 members, the bylaws may provide
  532  for a reasonable alternative to posting or mailing of notice for
  533  each board meeting, including publication of notice, provision
  534  of a schedule of board meetings, or the conspicuous posting and
  535  repeated broadcasting of the notice on a closed-circuit cable
  536  television system serving the homeowners’ association. However,
  537  if broadcast notice is used in lieu of a notice posted
  538  physically in the community, the notice must be broadcast at
  539  least four times every broadcast hour of each day that a posted
  540  notice is otherwise required. When broadcast notice is provided,
  541  the notice and agenda must be broadcast in a manner and for a
  542  sufficient continuous length of time so as to allow an average
  543  reader to observe the notice and read and comprehend the entire
  544  content of the notice and the agenda. The association may
  545  provide notice by electronic transmission in a manner authorized
  546  by law for meetings of the board of directors, committee
  547  meetings requiring notice under this section, and annual and
  548  special meetings of the members; however, a member must consent
  549  in writing to receiving notice by electronic transmission.
  550         2. An assessment may not be levied at a board meeting
  551  unless the notice of the meeting includes a statement that
  552  assessments will be considered and the nature of the
  553  assessments. Written notice of any meeting at which special
  554  assessments, increases in assessments, or amendments to
  555  governing documents will be considered or at which amendments to
  556  rules regarding parcel use will be considered must be mailed,
  557  delivered, or electronically transmitted to the members and
  558  parcel owners and posted conspicuously on the property or
  559  broadcast on closed-circuit cable television not less than 14
  560  days before the meeting regardless of contrary notice
  561  requirements in a governing document.
  562         3. Directors may not vote by proxy or by secret ballot at
  563  board meetings, except that secret ballots may be used in the
  564  election of officers. This subsection also applies to the
  565  meetings of a any committee or other similar body, if when a
  566  final decision will be made regarding the expenditure of
  567  association funds, and to a any body vested with the power to
  568  approve or disapprove architectural decisions with respect to a
  569  specific parcel of residential property owned by a member of the
  570  community.
  571         Section 11. Subsection (2) of section 720.305, Florida
  572  Statutes, is amended to read:
  573         720.305 Obligations of members; remedies at law or in
  574  equity; levy of fines and suspension of use rights.—
  575         (2) If the association is authorized by its original
  576  governing documents to impose fines, it may levy reasonable
  577  fines. A fine may not exceed $100 per violation against any
  578  member or any member’s tenant, guest, or invitee for the failure
  579  of the owner of the parcel or its occupant, licensee, or invitee
  580  to comply with any provision of the declaration, the association
  581  bylaws, or reasonable rules of the association unless otherwise
  582  provided in the governing documents. A fine may be levied by the
  583  board for each day of a continuing violation, with a single
  584  notice and opportunity for hearing, except that the fine may not
  585  exceed $1,000 in the aggregate unless otherwise provided in the
  586  governing documents. A fine of less than $1,000 may not become a
  587  lien against a parcel. In any action to recover a fine, the
  588  prevailing party is entitled to reasonable attorney fees and
  589  costs from the nonprevailing party as determined by the court.
  590         (a) An association may suspend, for a reasonable period of
  591  time, the right of a member, or a member’s tenant, guest, or
  592  invitee, to use common areas and facilities for the failure of
  593  the owner of the parcel or its occupant, licensee, or invitee to
  594  comply with any provision of the declaration, the association
  595  bylaws, or reasonable rules of the association. This paragraph
  596  does not apply to that portion of common areas used to provide
  597  access or utility services to the parcel. A suspension may not
  598  prohibit an owner or tenant of a parcel from having vehicular
  599  and pedestrian ingress to and egress from the parcel, including,
  600  but not limited to, the right to park.
  601         (b) A fine or suspension may not be imposed by the board of
  602  administration without at least 14 days’ notice to the person
  603  sought to be fined or suspended and an opportunity for a hearing
  604  before a committee of at least three members appointed by the
  605  board who are not officers, directors, or employees of the
  606  association, or the spouse, parent, child, brother, or sister of
  607  an officer, director, or employee. If the committee, by majority
  608  vote, does not approve a proposed fine or suspension, it may not
  609  be imposed. The role of the committee is limited to determining
  610  whether to confirm or reject the fine or suspension levied by
  611  the board. If the board of administration imposes a fine or
  612  suspension, the association must provide written notice of such
  613  fine or suspension by mail or hand delivery to the parcel owner
  614  and, if applicable, to any tenant, licensee, or invitee of the
  615  parcel owner.
  616         Section 12. Paragraphs (a) and (b) of subsection (1) and
  617  subsections (2), (4), (5), (6), (8), and (9) of section 720.306,
  618  Florida Statutes, are amended to read:
  619         720.306 Meetings of members; voting and election
  620  procedures; amendments.—
  621         (1) QUORUM; AMENDMENTS.—
  622         (a) Unless a lower number is provided in the bylaws, the
  623  percentage of voting interests required for to constitute a
  624  quorum at a meeting of the members is shall be 30 percent of the
  625  total voting interests. Unless otherwise provided in this
  626  chapter or in the articles of incorporation or bylaws, decisions
  627  that require a vote of the members must be approved made by the
  628  concurrence of at least a majority of the voting interests
  629  present, in person or by proxy, at a meeting at which a quorum
  630  is present has been attained. A meeting of the members must be
  631  held at a location that is accessible to a physically
  632  handicapped person if requested by a physically handicapped
  633  person who has a right to attend the meeting.
  634         (b) Unless otherwise provided in the governing documents or
  635  required by law, and other than those matters set forth in
  636  paragraph (c), the bylaws or articles of incorporation any
  637  governing document of an association may be amended by the
  638  affirmative vote of two-thirds of the voting interests of the
  639  association, and the declaration may be amended by the
  640  affirmative vote of parcel owners representing two-thirds of the
  641  voting interests of the affected parcels. Within 30 days after
  642  recording an amendment to the governing documents, the
  643  association shall provide copies of the amendment to the
  644  members. However, if a copy of the proposed amendment is
  645  provided to the members before they vote on the amendment and
  646  the proposed amendment is not changed before the vote, the
  647  association, in lieu of providing a copy of the amendment, may
  648  provide notice to the members that the amendment was adopted,
  649  identifying the official book and page number or instrument
  650  number of the recorded amendment and that a copy of the
  651  amendment is available at no charge to the member upon written
  652  request to the association. The copies and notice described in
  653  this paragraph may be provided electronically to those owners
  654  who previously consented to receive notice electronically. The
  655  failure to timely provide notice of the recording of the
  656  amendment does not affect the validity or enforceability of the
  657  amendment.
  658         (2) ANNUAL MEETING.—The members association shall hold an
  659  annual a meeting of its members annually for the transaction of
  660  any and all proper business at a time, date, and place stated
  661  in, or fixed in accordance with, the bylaws. If the bylaws are
  662  silent as to the location, the annual meeting and all other
  663  membership meetings shall be held within 45 miles of the
  664  association property. The election of directors, if one is
  665  required to be held, must be held at, or in conjunction with,
  666  the annual meeting or as provided in the governing documents.
  667         (4) CONTENT OF NOTICE.—Unless law or the governing
  668  documents require otherwise, notice of an annual meeting is not
  669  required to need not include a description of the purpose or
  670  purposes for which the meeting is called. Notice of a special
  671  meeting must include a description of the purpose or purposes
  672  for which the meeting is called.
  673         (5) NOTICE OF MEETINGS.—The bylaws must shall provide for
  674  giving notice to members of all member meetings, and if they do
  675  not do so shall be deemed to provide the following: The
  676  association shall give all parcel owners and members actual
  677  notice of all membership meetings, which shall be mailed,
  678  delivered, or electronically transmitted to the members not less
  679  than 14 days before prior to the meeting. Evidence of compliance
  680  with this 14-day notice shall be made by an affidavit executed
  681  by the person providing the notice and filed upon execution
  682  among the official records of the association. In addition to
  683  mailing, delivering, or electronically transmitting the notice
  684  of any meeting, the association may, by reasonable rule, adopt a
  685  procedure for conspicuously posting and repeatedly broadcasting
  686  the notice and the agenda on a closed-circuit cable television
  687  system serving the association. If When broadcast notice is
  688  provided, the notice and agenda must be broadcast in a manner
  689  and for a sufficient continuous length of time so as to allow an
  690  average reader to observe the notice and read and comprehend the
  691  entire content of the notice and the agenda.
  692         (6) RIGHT TO SPEAK.—Members and parcel owners have the
  693  right to attend all membership meetings and to speak at any
  694  meeting with reference to all items opened for discussion or
  695  included on the agenda. Notwithstanding any provision to the
  696  contrary in the governing documents or any rules adopted by the
  697  board or by the membership, a member and a parcel owner have the
  698  right to speak for at least 3 minutes on any item. The
  699  association may adopt written reasonable written rules governing
  700  the frequency, duration, and other manner of member and parcel
  701  owner statements, and which are rules must be consistent with
  702  this subsection.
  703         (8) PROXY VOTING.—The members have the right, unless
  704  otherwise provided in this subsection or in the governing
  705  documents, to vote in person or by proxy.
  706         (a) Members voting by limited proxy must use a form
  707  substantially conforming to a limited proxy form adopted by the
  708  division. Limited proxies must be used for:
  709         1. Votes taken to waive or reduce reserves in accordance
  710  with s. 720.303(6);
  711         2. Votes taken to waive the financial reporting
  712  requirements of s. 720.303(7);
  713         3. Votes taken to amend the declaration;
  714         4. Votes taken to amend the articles of incorporation or
  715  bylaws pursuant to this section; and
  716         5. Any other matter for which this chapter requires or
  717  permits a vote of the parcel owners.
  718         (b) General proxies may be used for other matters for which
  719  limited proxies are not required and also may be used in voting
  720  for nonsubstantive changes to items for which a limited proxy is
  721  required and given.
  722         (c) Limited proxies and general proxies may be used to
  723  establish a quorum.
  724         (d) Voting interests or consent rights allocated to a
  725  parcel owned by the association may not be exercised or
  726  considered for any purpose, whether for a quorum, an election,
  727  or otherwise.
  728         (e) Any proxy given is effective only for the specific
  729  meeting for which originally given and any lawfully adjourned
  730  meetings thereof. In no event is a proxy valid for longer than
  731  90 days after the date of the first meeting for which it was
  732  given. Every proxy is revocable at any time at the pleasure of
  733  the parcel owner executing it.
  734         (f) This subsection does not limit the use of general
  735  proxies, require the use of limited proxies for any agenda item
  736  or election at any meeting of a homeowners’ association, or
  737  prohibit parcel owners from voting in person at parcel owner
  738  meetings.
  739         (a) To be valid, a proxy must be dated, must state the
  740  date, time, and place of the meeting for which it was given, and
  741  must be signed by the authorized person who executed the proxy.
  742  A proxy is effective only for the specific meeting for which it
  743  was originally given, as the meeting may lawfully be adjourned
  744  and reconvened from time to time, and automatically expires 90
  745  days after the date of the meeting for which it was originally
  746  given. A proxy is revocable at any time at the pleasure of the
  747  person who executes it. If the proxy form expressly so provides,
  748  any proxy holder may appoint, in writing, a substitute to act in
  749  his or her place.
  750         (b) If the governing documents permit voting by secret
  751  ballot by members who are not in attendance at a meeting of the
  752  members for the election of directors, such ballots must be
  753  placed in an inner envelope with no identifying markings and
  754  mailed or delivered to the association in an outer envelope
  755  bearing identifying information reflecting the name of the
  756  member, the lot or parcel for which the vote is being cast, and
  757  the signature of the lot or parcel owner casting that ballot. If
  758  the eligibility of the member to vote is confirmed and no other
  759  ballot has been submitted for that lot or parcel, the inner
  760  envelope shall be removed from the outer envelope bearing the
  761  identification information, placed with the ballots which were
  762  personally cast, and opened when the ballots are counted. If
  763  more than one ballot is submitted for a lot or parcel, the
  764  ballots for that lot or parcel shall be disqualified. Any vote
  765  by ballot received after the closing of the balloting may not be
  766  considered.
  767         (9) ELECTIONS AND BOARD VACANCIES.—
  768         (a) Unless the governing documents provide otherwise, a
  769  vacancy on the board of directors caused by the expiration of a
  770  director’s term shall be filled by electing a new board member.
  771  This section applies to any mandatory association that governs
  772  10 parcels or more. The election must occur on the date of the
  773  annual meeting.
  774         1. An election is not required unless more candidates file
  775  notices of intent to run or are nominated than board vacancies
  776  exist. If the number of board members whose terms expire at the
  777  annual meeting equals or exceeds the number of candidates, the
  778  candidates become members of the board effective upon the
  779  adjournment of the annual meeting.
  780         2. If the governing documents permit staggered terms of up
  781  to 2 years, and upon approval of a majority of the total voting
  782  interests, the association board members may serve 2-year
  783  staggered terms. If the staggered term of a board member does
  784  not expire until a later annual meeting, or if all members’
  785  terms would otherwise expire but there are no candidates, the
  786  terms of all board members expire at the annual meeting, and
  787  such members may stand for reelection unless prohibited by the
  788  governing documents.
  789         3. Unless the governing documents provide otherwise, any
  790  remaining vacancies shall be filled by the affirmative vote of
  791  the majority of the directors making up the newly constituted
  792  board even if the directors constitute less than a quorum or
  793  there is only one director.
  794         4. For purposes of this paragraph, the term “candidate”
  795  means an eligible person who has timely submitted the written
  796  notice, as described in subparagraph (c)2., of his or her
  797  intention to become a candidate.
  798         (b) Any parcel owner desiring to be a candidate for board
  799  membership must be eligible to serve on the board of directors
  800  at the time of the deadline for submitting a notice of intent to
  801  run as provided in subparagraph (c)2. in order to have his or
  802  her name listed as a proper candidate on the ballot. A parcel
  803  owner may not be a candidate for or serve on the board of
  804  directors if:
  805         1. He or she is delinquent in the payment of any fee, fine,
  806  or special or regular assessment as provided in paragraph (d).
  807         2. In a homeowners’ association of more than 10 parcels, he
  808  or she is the co-owner of a parcel and another co-owner of the
  809  same parcel is a member of the board of directors at the same
  810  time unless they own more than one parcel or there are not
  811  enough eligible candidates to fill the vacancies on the board at
  812  the time of the vacancy.
  813         (c) The members of the board shall be elected by secret
  814  ballot using a written ballot or voting machine. Proxies may not
  815  be used in electing the board in general elections or elections
  816  to fill vacancies caused by recall or resignation unless
  817  otherwise provided in this chapter.
  818         1. At least 60 days before a scheduled election, the
  819  association shall mail, deliver, or electronically transmit by
  820  separate association mailing or by inclusion in another
  821  association mailing, delivery, or transmission, including
  822  regularly published newsletters, to each parcel owner entitled
  823  to a vote a first notice of the date of the election.
  824         2. Any parcel owner or other eligible person desiring to be
  825  a candidate for the board must give written notice of his or her
  826  intent to be a candidate to the association at least 40 days
  827  before the scheduled election.
  828         3. Together with the notice and agenda required under
  829  subsection (5), the association shall mail, deliver, or
  830  electronically transmit a second notice of the election to all
  831  parcel owners entitled to vote which includes a ballot that
  832  lists all candidates. Upon request of a candidate, an
  833  information sheet no larger than 8 1/2 inches by 11 inches,
  834  which must be furnished by the candidate at least 35 days before
  835  the election, must be included with the mailing, delivery, or
  836  transmission of the ballot, with the costs of mailing, delivery,
  837  or electronic transmission and copying to be borne by the
  838  association. The association is not liable for the contents of
  839  an information sheet prepared by a candidate. In order to reduce
  840  costs, the association may print or duplicate the information
  841  sheets on both sides of the paper.
  842         4. Elections shall be decided by a plurality of ballots
  843  cast. There is no quorum requirement; however, at least 20
  844  percent of the eligible voters must cast a ballot in order to
  845  have a valid election. A parcel owner may not permit any other
  846  person to vote his or her ballot, and any ballots improperly
  847  cast are invalid. A parcel owner who violates this provision may
  848  be fined by the association in accordance with s. 720.305. A
  849  parcel owner who needs assistance in casting the ballot for the
  850  reasons stated in s. 101.051 may obtain such assistance.
  851         5. The division shall establish by rule voting procedures
  852  consistent with this paragraph, including rules establishing
  853  procedures for giving notice by electronic transmission and
  854  rules providing for the secrecy of ballots.
  855         (a) Elections of directors must be conducted in accordance
  856  with the procedures set forth in the governing documents of the
  857  association. Except as provided in paragraph (b), all members of
  858  the association are eligible to serve on the board of directors,
  859  and a member may nominate himself or herself as a candidate for
  860  the board at a meeting where the election is to be held;
  861  provided, however, that if the election process allows
  862  candidates to be nominated in advance of the meeting, the
  863  association is not required to allow nominations at the meeting.
  864  An election is not required unless more candidates are nominated
  865  than vacancies exist. Except as otherwise provided in the
  866  governing documents, boards of directors must be elected by a
  867  plurality of the votes cast by eligible voters. Any challenge to
  868  the election process must be commenced within 60 days after the
  869  election results are announced.
  870         (d)(b) A person who is delinquent in the payment of any
  871  fee, fine, or other monetary obligation to the association on
  872  the day that he or she could last nominate himself or herself or
  873  be nominated for the board may not seek election to the board,
  874  and his or her name shall not be listed on the ballot. A person
  875  serving as a board member who becomes more than 90 days
  876  delinquent in the payment of any fee, fine, or other monetary
  877  obligation to the association shall be deemed to have abandoned
  878  his or her seat on the board, creating a vacancy on the board to
  879  be filled according to law. For purposes of this paragraph, the
  880  term “any fee, fine, or other monetary obligation” means any
  881  delinquency to the association with respect to any parcel. A
  882  person who has been convicted of any felony in this state or in
  883  a United States District or Territorial Court, or has been
  884  convicted of any offense in another jurisdiction which would be
  885  considered a felony if committed in this state, may not seek
  886  election to the board and is not eligible for board membership
  887  unless such felon’s civil rights have been restored for at least
  888  5 years as of the date on which such person seeks election to
  889  the board. The validity of any action by the board is not
  890  affected if it is later determined that a person was ineligible
  891  to seek election to the board or that a member of the board is
  892  ineligible for board membership.
  893         (e)(c) Any election dispute between a member and an
  894  association must be submitted to mandatory binding arbitration
  895  with the division. Such proceedings must be conducted in the
  896  manner provided by s. 718.1255 and the procedural rules adopted
  897  by the division. Any challenge to the election process must be
  898  commenced within 60 days after the election results are
  899  announced.
  900         1. Unless otherwise provided in the governing documents
  901  bylaws, any vacancy occurring on the board before the expiration
  902  of a term may be filled by an affirmative vote of the majority
  903  of the remaining directors, even if the remaining directors
  904  constitute less than a quorum, or by the sole remaining
  905  director. In the alternative, a board may hold an election to
  906  fill the vacancy, in which case the election procedures must
  907  conform to the requirements of the governing documents.
  908         2. Unless otherwise provided in the governing documents
  909  bylaws, a board member appointed or elected under this section
  910  is appointed for the unexpired term of the seat being filled.
  911  Filling vacancies created by recall is governed by s.
  912  720.303(10) and rules adopted by the division.
  913         Section 13. Subsection (5) of section 720.307, Florida
  914  Statutes, is amended to read:
  915         720.307 Transition of association control in a community.
  916  With respect to homeowners’ associations:
  917         (5) This section does not apply to a homeowners’
  918  association in existence on the effective date of this act, or
  919  to a homeowners’ association, no matter when created, if such
  920  association is created in a community that is included in an
  921  effective development-of-regional-impact development order as of
  922  the effective date of this act, together with any approved
  923  modifications thereof.
  924         Section 14. Subsection (2) of section 73.073, Florida
  925  Statutes, is amended to read:
  926         73.073 Eminent domain procedure with respect to condominium
  927  common elements.—
  928         (2) With respect to the exercise of eminent domain or a
  929  negotiated sale for the purchase or taking of a portion of the
  930  common elements of a condominium, the condemning authority shall
  931  have the responsibility of contacting the condominium
  932  association and acquiring the most recent rolls indicating the
  933  names of the unit owners or contacting the appropriate taxing
  934  authority to obtain the names of the owners of record on the tax
  935  rolls. Notification shall be sent by certified mail, return
  936  receipt requested, to the unit owners of record of the
  937  condominium units by the condemning authority indicating the
  938  intent to purchase or take the required property and requesting
  939  a response from the unit owner. The condemning authority shall
  940  be responsible for the expense of sending notification pursuant
  941  to this section. Such notice shall, at a minimum, include:
  942         (a) The name and address of the condemning authority.
  943         (b) A written or visual description of the property.
  944         (c) The public purpose for which the property is needed.
  945         (d) The appraisal value of the property.
  946         (e) A clear, concise statement relating to the unit owner’s
  947  right to object to the taking or appraisal value and the
  948  procedures and effects of exercising that right.
  949         (f) A clear, concise statement relating to the power of the
  950  association to convey the property on behalf of the unit owners
  951  if no objection to the taking or appraisal value is raised, and
  952  the effects of this alternative on the unit owner.
  953  
  954  The Division of Florida Condominiums, Homeowners’ Associations,
  955  Timeshares, and Mobile Homes of the Department of Business and
  956  Professional Regulation may adopt, by rule, a standard form for
  957  such notice and may require the notice to include any additional
  958  relevant information.
  959         Section 15. Paragraph (e) of subsection (6) of section
  960  192.037, Florida Statutes, is amended to read:
  961         192.037 Fee timeshare real property; taxes and assessments;
  962  escrow.—
  963         (6)
  964         (e) On or before May 1 of each year, a statement of
  965  receipts and disbursements of the escrow account must be filed
  966  with the Division of Florida Condominiums, Homeowners’
  967  Associations, Timeshares, and Mobile Homes of the Department of
  968  Business and Professional Regulation, which may enforce this
  969  paragraph pursuant to s. 721.26. This statement must
  970  appropriately show the amount of principal and interest in such
  971  account.
  972         Section 16. Paragraph (i) of subsection (8) of section
  973  213.053, Florida Statutes, is amended to read:
  974         213.053 Confidentiality and information sharing.—
  975         (8) Notwithstanding any other provision of this section,
  976  the department may provide:
  977         (i) Information relative to chapters 212 and 326 to the
  978  Division of Florida Condominiums, Homeowners’ Associations,
  979  Timeshares, and Mobile Homes of the Department of Business and
  980  Professional Regulation in the conduct of its official duties.
  981  
  982  Disclosure of information under this subsection shall be
  983  pursuant to a written agreement between the executive director
  984  and the agency. Such agencies, governmental or nongovernmental,
  985  shall be bound by the same requirements of confidentiality as
  986  the Department of Revenue. Breach of confidentiality is a
  987  misdemeanor of the first degree, punishable as provided by s.
  988  775.082 or s. 775.083.
  989         Section 17. Subsection (2) of section 326.002, Florida
  990  Statutes, is amended to read:
  991         326.002 Definitions.—As used in ss. 326.001-326.006, the
  992  term:
  993         (2) “Division” means the Division of Florida Condominiums,
  994  Homeowners’ Associations, Timeshares, and Mobile Homes of the
  995  Department of Business and Professional Regulation.
  996         Section 18. Paragraph (d) of subsection (2) and subsection
  997  (3) of section 326.006, Florida Statutes, are amended to read:
  998         326.006 Powers and duties of division.—
  999         (2) The division has the power to enforce and ensure
 1000  compliance with the provisions of this chapter and rules adopted
 1001  under this chapter relating to the sale and ownership of yachts
 1002  and ships. In performing its duties, the division has the
 1003  following powers and duties:
 1004         (d) Notwithstanding any remedies available to a yacht or
 1005  ship purchaser, if the division has reasonable cause to believe
 1006  that a violation of any provision of this chapter or rule
 1007  adopted under this chapter has occurred, the division may
 1008  institute enforcement proceedings in its own name against any
 1009  broker or salesperson or any of his or her assignees or agents,
 1010  or against any unlicensed person or any of his or her assignees
 1011  or agents, as follows:
 1012         1. The division may permit a person whose conduct or
 1013  actions are under investigation to waive formal proceedings and
 1014  enter into a consent proceeding whereby orders, rules, or
 1015  letters of censure or warning, whether formal or informal, may
 1016  be entered against the person.
 1017         2. The division may issue an order requiring the broker or
 1018  salesperson or any of his or her assignees or agents, or
 1019  requiring any unlicensed person or any of his or her assignees
 1020  or agents, to cease and desist from the unlawful practice and
 1021  take such affirmative action as in the judgment of the division
 1022  will carry out the purposes of this chapter.
 1023         3. The division may bring an action in circuit court on
 1024  behalf of a class of yacht or ship purchasers for declaratory
 1025  relief, injunctive relief, or restitution.
 1026         4. The division may impose a civil penalty against a broker
 1027  or salesperson or any of his or her assignees or agents, or
 1028  against an unlicensed person or any of his or her assignees or
 1029  agents, for any violation of this chapter or a rule adopted
 1030  under this chapter. A penalty may be imposed for each day of
 1031  continuing violation, but in no event may the penalty for any
 1032  offense exceed $10,000. All amounts collected must be deposited
 1033  with the Chief Financial Officer to the credit of the Division
 1034  of Florida Condominiums, Homeowners’ Associations, Timeshares,
 1035  and Mobile Homes Trust Fund. If a broker, salesperson, or
 1036  unlicensed person working for a broker, fails to pay the civil
 1037  penalty, the division shall issue an order suspending the
 1038  broker’s license until such time as the civil penalty is paid or
 1039  may pursue enforcement of the penalty in a court of competent
 1040  jurisdiction. The order imposing the civil penalty or the order
 1041  of suspension may not become effective until 20 days after the
 1042  date of such order. Any action commenced by the division must be
 1043  brought in the county in which the division has its executive
 1044  offices or in the county where the violation occurred.
 1045         (3) All fees must be deposited in the Division of Florida
 1046  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 1047  Homes Trust Fund as provided by law.
 1048         Section 19. Paragraph (a) of subsection (4) of section
 1049  380.0651, Florida Statutes, is amended to read:
 1050         380.0651 Statewide guidelines and standards.—
 1051         (4) Two or more developments, represented by their owners
 1052  or developers to be separate developments, shall be aggregated
 1053  and treated as a single development under this chapter when they
 1054  are determined to be part of a unified plan of development and
 1055  are physically proximate to one other.
 1056         (a) The criteria of three of the following subparagraphs
 1057  must be met in order for the state land planning agency to
 1058  determine that there is a unified plan of development:
 1059         1.a. The same person has retained or shared control of the
 1060  developments;
 1061         b. The same person has ownership or a significant legal or
 1062  equitable interest in the developments; or
 1063         c. There is common management of the developments
 1064  controlling the form of physical development or disposition of
 1065  parcels of the development.
 1066         2. There is a reasonable closeness in time between the
 1067  completion of 80 percent or less of one development and the
 1068  submission to a governmental agency of a master plan or series
 1069  of plans or drawings for the other development which is
 1070  indicative of a common development effort.
 1071         3. A master plan or series of plans or drawings exists
 1072  covering the developments sought to be aggregated which have
 1073  been submitted to a local general-purpose government, water
 1074  management district, the Florida Department of Environmental
 1075  Protection, or the Division of Florida Condominiums, Homeowners’
 1076  Associations, Timeshares, and Mobile Homes for authorization to
 1077  commence development. The existence or implementation of a
 1078  utility’s master utility plan required by the Public Service
 1079  Commission or general-purpose local government or a master
 1080  drainage plan may shall not be the sole determinant of the
 1081  existence of a master plan.
 1082         4. There is a common advertising scheme or promotional plan
 1083  in effect for the developments sought to be aggregated.
 1084         Section 20. Subsection (5) of section 455.116, Florida
 1085  Statutes, is amended to read:
 1086         455.116 Regulation trust funds.—The following trust funds
 1087  shall be placed in the department:
 1088         (5) Division of Florida Condominiums, Homeowners’
 1089  Associations, Timeshares, and Mobile Homes Trust Fund.
 1090         Section 21. Section 475.455, Florida Statutes, is amended
 1091  to read:
 1092         475.455 Exchange of disciplinary information.—The
 1093  commission shall inform the Division of Florida Condominiums,
 1094  Homeowners’ Associations, Timeshares, and Mobile Homes of the
 1095  Department of Business and Professional Regulation of any
 1096  disciplinary action the commission has taken against any of its
 1097  licensees. The division shall inform the commission of any
 1098  disciplinary action the division has taken against any broker or
 1099  sales associate registered with the division.
 1100         Section 22. Section 509.512, Florida Statutes, is amended
 1101  to read:
 1102         509.512 Timeshare plan developer and exchange company
 1103  exemption.—Sections 509.501-509.511 do not apply to a developer
 1104  of a timeshare plan or an exchange company approved by the
 1105  Division of Florida Condominiums, Homeowners’ Associations,
 1106  Timeshares, and Mobile Homes pursuant to chapter 721, but only
 1107  to the extent that the developer or exchange company engages in
 1108  conduct regulated under chapter 721.
 1109         Section 23. Subsection (1) of section 559.935, Florida
 1110  Statutes, is amended to read:
 1111         559.935 Exemptions.—
 1112         (1) This part does not apply to:
 1113         (a) A bona fide employee of a seller of travel who is
 1114  engaged solely in the business of her or his employer;
 1115         (b) Any direct common carrier of passengers or property
 1116  regulated by an agency of the Federal Government or employees of
 1117  such carrier when engaged solely in the transportation business
 1118  of the carrier as identified in the carrier’s certificate;
 1119         (c) An intrastate common carrier of passengers or property
 1120  selling only transportation as defined in the applicable state
 1121  or local registration or certification, or employees of such
 1122  carrier when engaged solely in the transportation business of
 1123  the carrier;
 1124         (d) Hotels, motels, or other places of public accommodation
 1125  selling public accommodations, or employees of such hotels,
 1126  motels, or other places of public accommodation, when engaged
 1127  solely in making arrangements for lodging, accommodations, or
 1128  sightseeing tours within the state, or taking reservations for
 1129  the traveler with times, dates, locations, and accommodations
 1130  certain at the time the reservations are made, provided that
 1131  hotels and motels registered with the Department of Business and
 1132  Professional Regulation pursuant to chapter 509 are excluded
 1133  from the provisions of this chapter;
 1134         (e) Persons involved solely in the rental, leasing, or sale
 1135  of residential property;
 1136         (f) Persons involved solely in the rental, leasing, or sale
 1137  of transportation vehicles;
 1138         (g) Persons who make travel arrangements for themselves;
 1139  for their employees or agents; for distributors, franchisees, or
 1140  dealers of the persons’ products or services; for entities which
 1141  are financially related to the persons; or for the employees or
 1142  agents of the distributor, franchisee, or dealer or financially
 1143  related entity;
 1144         (h) A developer of a timeshare plan or an exchange company
 1145  approved by the Division of Florida Condominiums, Homeowners’
 1146  Associations, Timeshares, and Mobile Homes pursuant to chapter
 1147  721, but only to the extent that the developer or exchange
 1148  company engages in conduct regulated under chapter 721; or
 1149         (i) Persons or entities engaged solely in offering diving
 1150  services, including classes and sales or rentals of equipment,
 1151  when engaged in making any prearranged travel-related or
 1152  tourist-related services in conjunction with a primarily dive
 1153  related event.
 1154         Section 24. Subsection (17) of section 718.103, Florida
 1155  Statutes, is amended to read:
 1156         718.103 Definitions.—As used in this chapter, the term:
 1157         (17) “Division” means the Division of Florida Condominiums,
 1158  Homeowners’ Associations, Timeshares, and Mobile Homes of the
 1159  Department of Business and Professional Regulation.
 1160         Section 25. Paragraph (c) of subsection (4) of section
 1161  718.105, Florida Statutes, is amended to read:
 1162         718.105 Recording of declaration.—
 1163         (4)
 1164         (c) If the sum of money held by the clerk has not been paid
 1165  to the developer or association as provided in paragraph (b)
 1166  within 5 years after the date the declaration was originally
 1167  recorded, the clerk may notify, in writing, the registered agent
 1168  of the association that the sum is still available and the
 1169  purpose for which it was deposited. If the association does not
 1170  record the certificate within 90 days after the clerk has given
 1171  the notice, the clerk may disburse the money to the developer.
 1172  If the developer cannot be located, the clerk shall disburse the
 1173  money to the Division of Florida Condominiums, Homeowners’
 1174  Associations, Timeshares, and Mobile Homes for deposit in the
 1175  Division of Florida Condominiums, Homeowners’ Associations,
 1176  Timeshares, and Mobile Homes Trust Fund.
 1177         Section 26. Subsection (4) of section 718.1255, Florida
 1178  Statutes, is amended to read:
 1179         718.1255 Alternative dispute resolution; voluntary
 1180  mediation; mandatory nonbinding arbitration; legislative
 1181  findings.—
 1182         (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
 1183  DISPUTES.—The Division of Florida Condominiums, Homeowners’
 1184  Associations, Timeshares, and Mobile Homes of the Department of
 1185  Business and Professional Regulation shall employ full-time
 1186  attorneys to act as arbitrators to conduct the arbitration
 1187  hearings provided by this chapter. The division may also certify
 1188  attorneys who are not employed by the division to act as
 1189  arbitrators to conduct the arbitration hearings provided by this
 1190  section. No person may be employed by the department as a full
 1191  time arbitrator unless he or she is a member in good standing of
 1192  The Florida Bar. The department shall adopt rules of procedure
 1193  to govern such arbitration hearings including mediation incident
 1194  thereto. The decision of an arbitrator shall be final but may;
 1195  however, a decision shall not be deemed final agency action.
 1196  Nothing in this subsection may provision shall be construed to
 1197  foreclose parties from proceeding in a trial de novo unless the
 1198  parties have agreed that the arbitration is binding. If judicial
 1199  proceedings are initiated, the final decision of the arbitrator
 1200  shall be admissible in evidence in the trial de novo.
 1201         (a) Before prior to the institution of court litigation, a
 1202  party to a dispute shall petition the division for nonbinding
 1203  arbitration. The petition must be accompanied by a filing fee in
 1204  the amount of $50. Filing fees collected under this section must
 1205  be used to defray the expenses of the alternative dispute
 1206  resolution program.
 1207         (b) The petition must recite, and have attached thereto,
 1208  supporting proof that the petitioner gave the respondents:
 1209         1. Advance written notice of the specific nature of the
 1210  dispute;
 1211         2. A demand for relief, and a reasonable opportunity to
 1212  comply or to provide the relief; and
 1213         3. Notice of the intention to file an arbitration petition
 1214  or other legal action in the absence of a resolution of the
 1215  dispute.
 1216  
 1217  Failure to include the allegations or proof of compliance with
 1218  these prerequisites requires dismissal of the petition without
 1219  prejudice.
 1220         (c) Upon receipt, the petition shall be promptly reviewed
 1221  by the division to determine the existence of a dispute and
 1222  compliance with the requirements of paragraphs (a) and (b). If
 1223  emergency relief is required and is not available through
 1224  arbitration, a motion to stay the arbitration may be filed. The
 1225  motion must be accompanied by a verified petition alleging facts
 1226  that, if proven, would support entry of a temporary injunction,
 1227  and if an appropriate motion and supporting papers are filed,
 1228  the division may abate the arbitration pending a court hearing
 1229  and disposition of a motion for temporary injunction.
 1230         (d) Upon determination by the division that a dispute
 1231  exists and that the petition substantially meets the
 1232  requirements of paragraphs (a) and (b) and any other applicable
 1233  rules, a copy of the petition shall be served by the division
 1234  upon all respondents.
 1235         (e) Before or after the filing of the respondents’ answer
 1236  to the petition, any party may request that the arbitrator refer
 1237  the case to mediation under this section and any rules adopted
 1238  by the division. Upon receipt of a request for mediation, the
 1239  division shall promptly contact the parties to determine if
 1240  there is agreement that mediation would be appropriate. If all
 1241  parties agree, the dispute must be referred to mediation.
 1242  Notwithstanding a lack of an agreement by all parties, the
 1243  arbitrator may refer a dispute to mediation at any time.
 1244         (f) Upon referral of a case to mediation, the parties must
 1245  select a mutually acceptable mediator. To assist in the
 1246  selection, the arbitrator shall provide the parties with a list
 1247  of both volunteer and paid mediators that have been certified by
 1248  the division under s. 718.501. If the parties are unable to
 1249  agree on a mediator within the time allowed by the arbitrator,
 1250  the arbitrator shall appoint a mediator from the list of
 1251  certified mediators. If a case is referred to mediation, the
 1252  parties shall attend a mediation conference, as scheduled by the
 1253  parties and the mediator. If any party fails to attend a duly
 1254  noticed mediation conference, without the permission or approval
 1255  of the arbitrator or mediator, the arbitrator must impose
 1256  sanctions against the party, including the striking of any
 1257  pleadings filed, the entry of an order of dismissal or default
 1258  if appropriate, and the award of costs and attorney attorneys’
 1259  fees incurred by the other parties. Unless otherwise agreed to
 1260  by the parties or as provided by order of the arbitrator, a
 1261  party is deemed to have appeared at a mediation conference by
 1262  the physical presence of the party or its representative having
 1263  full authority to settle without further consultation, provided
 1264  that an association may comply by having one or more
 1265  representatives present with full authority to negotiate a
 1266  settlement and recommend that the board of administration ratify
 1267  and approve such a settlement within 5 days from the date of the
 1268  mediation conference. The parties shall share equally the
 1269  expense of mediation, unless they agree otherwise.
 1270         (g) The purpose of mediation as provided for by this
 1271  section is to present the parties with an opportunity to resolve
 1272  the underlying dispute in good faith, and with a minimum
 1273  expenditure of time and resources.
 1274         (h) Mediation proceedings must generally be conducted in
 1275  accordance with the Florida Rules of Civil Procedure, and these
 1276  proceedings are privileged and confidential to the same extent
 1277  as court-ordered mediation. Persons who are not parties to the
 1278  dispute are not allowed to attend the mediation conference
 1279  without the consent of all parties, with the exception of
 1280  counsel for the parties and corporate representatives designated
 1281  to appear for a party. If the mediator declares an impasse after
 1282  a mediation conference has been held, the arbitration proceeding
 1283  terminates, unless all parties agree in writing to continue the
 1284  arbitration proceeding, in which case the arbitrator’s decision
 1285  shall be binding or nonbinding, as agreed upon by the parties;
 1286  in the arbitration proceeding, the arbitrator may shall not
 1287  consider any evidence relating to the unsuccessful mediation
 1288  except in a proceeding to impose sanctions for failure to appear
 1289  at the mediation conference. If the parties do not agree to
 1290  continue arbitration, the arbitrator shall enter an order of
 1291  dismissal, and either party may institute a suit in a court of
 1292  competent jurisdiction. The parties may seek to recover any
 1293  costs and attorney attorneys’ fees incurred in connection with
 1294  arbitration and mediation proceedings under this section as part
 1295  of the costs and fees that may be recovered by the prevailing
 1296  party in any subsequent litigation.
 1297         (i) Arbitration shall be conducted according to rules
 1298  adopted by the division. The filing of a petition for
 1299  arbitration shall toll the applicable statute of limitations.
 1300         (j) At the request of any party to the arbitration, the
 1301  arbitrator shall issue subpoenas for the attendance of witnesses
 1302  and the production of books, records, documents, and other
 1303  evidence and any party on whose behalf a subpoena is issued may
 1304  apply to the court for orders compelling such attendance and
 1305  production. Subpoenas shall be served and shall be enforceable
 1306  in the manner provided by the Florida Rules of Civil Procedure.
 1307  Discovery may, in the discretion of the arbitrator, be permitted
 1308  in the manner provided by the Florida Rules of Civil Procedure.
 1309  Rules adopted by the division may authorize any reasonable
 1310  sanctions except contempt for a violation of the arbitration
 1311  procedural rules of the division or for the failure of a party
 1312  to comply with a reasonable nonfinal order issued by an
 1313  arbitrator which is not under judicial review.
 1314         (k) The arbitration decision shall be presented to the
 1315  parties in writing. An arbitration decision is final in those
 1316  disputes in which the parties have agreed to be bound. An
 1317  arbitration decision is also final if a complaint for a trial de
 1318  novo is not filed in a court of competent jurisdiction in which
 1319  the condominium is located within 30 days. The right to file for
 1320  a trial de novo entitles the parties to file a complaint in the
 1321  appropriate trial court for a judicial resolution of the
 1322  dispute. The prevailing party in an arbitration proceeding shall
 1323  be awarded the costs of the arbitration and reasonable attorney
 1324  attorney’s fees in an amount determined by the arbitrator. Such
 1325  an award shall include the costs and reasonable attorney
 1326  attorney’s fees incurred in the arbitration proceeding as well
 1327  as the costs and reasonable attorney attorney’s fees incurred in
 1328  preparing for and attending any scheduled mediation.
 1329         (l) The party who files a complaint for a trial de novo
 1330  shall be assessed the other party’s arbitration costs, court
 1331  costs, and other reasonable costs, including attorney attorney’s
 1332  fees, investigation expenses, and expenses for expert or other
 1333  testimony or evidence incurred after the arbitration hearing if
 1334  the judgment upon the trial de novo is not more favorable than
 1335  the arbitration decision. If the judgment is more favorable, the
 1336  party who filed a complaint for trial de novo shall be awarded
 1337  reasonable court costs and attorney attorney’s fees.
 1338         (m) Any party to an arbitration proceeding may enforce an
 1339  arbitration award by filing a petition in a court of competent
 1340  jurisdiction in which the condominium is located. A petition may
 1341  not be granted unless the time for appeal by the filing of a
 1342  complaint for trial de novo has expired. If a complaint for a
 1343  trial de novo has been filed, a petition may not be granted with
 1344  respect to an arbitration award that has been stayed. If the
 1345  petition for enforcement is granted, the petitioner shall
 1346  recover reasonable attorney attorney’s fees and costs incurred
 1347  in enforcing the arbitration award. A mediation settlement may
 1348  also be enforced through the county or circuit court, as
 1349  applicable, and any costs and fees incurred in the enforcement
 1350  of a settlement agreement reached at mediation must be awarded
 1351  to the prevailing party in any enforcement action.
 1352         Section 27. Section 718.501, Florida Statutes, is amended
 1353  to read:
 1354         718.501 Authority, responsibility, and duties of Division
 1355  of Florida Condominiums, Homeowners’ Associations, Timeshares,
 1356  and Mobile Homes.—
 1357         (1) The division may enforce and ensure compliance with the
 1358  provisions of this chapter and rules relating to the
 1359  development, construction, sale, lease, ownership, operation,
 1360  and management of residential condominium units. In performing
 1361  its duties, the division has complete jurisdiction to
 1362  investigate complaints and enforce compliance with respect to
 1363  associations that are still under developer control or the
 1364  control of a bulk assignee or bulk buyer pursuant to part VII of
 1365  this chapter and complaints against developers, bulk assignees,
 1366  or bulk buyers involving improper turnover or failure to
 1367  turnover, pursuant to s. 718.301. However, after turnover has
 1368  occurred, the division has jurisdiction to investigate
 1369  complaints related only to financial issues, elections, and unit
 1370  owner access to association records pursuant to s. 718.111(12).
 1371         (a)1. The division may make necessary public or private
 1372  investigations within or outside this state to determine whether
 1373  any person has violated this chapter or any rule or order
 1374  hereunder, to aid in the enforcement of this chapter, or to aid
 1375  in the adoption of rules or forms.
 1376         2. The division may submit any official written report,
 1377  worksheet, or other related paper, or a duly certified copy
 1378  thereof, compiled, prepared, drafted, or otherwise made by and
 1379  duly authenticated by a financial examiner or analyst to be
 1380  admitted as competent evidence in any hearing in which the
 1381  financial examiner or analyst is available for cross-examination
 1382  and attests under oath that such documents were prepared as a
 1383  result of an examination or inspection conducted pursuant to
 1384  this chapter.
 1385         (b) The division may require or permit any person to file a
 1386  statement in writing, under oath or otherwise, as the division
 1387  determines, as to the facts and circumstances concerning a
 1388  matter to be investigated.
 1389         (c) For the purpose of any investigation under this
 1390  chapter, the division director or any officer or employee
 1391  designated by the division director may administer oaths or
 1392  affirmations, subpoena witnesses and compel their attendance,
 1393  take evidence, and require the production of any matter which is
 1394  relevant to the investigation, including the existence,
 1395  description, nature, custody, condition, and location of any
 1396  books, documents, or other tangible things and the identity and
 1397  location of persons having knowledge of relevant facts or any
 1398  other matter reasonably calculated to lead to the discovery of
 1399  material evidence. Upon the failure by a person to obey a
 1400  subpoena or to answer questions propounded by the investigating
 1401  officer and upon reasonable notice to all affected persons, the
 1402  division may apply to the circuit court for an order compelling
 1403  compliance.
 1404         (d) Notwithstanding any remedies available to unit owners
 1405  and associations, if the division has reasonable cause to
 1406  believe that a violation of any provision of this chapter or
 1407  related rule has occurred, the division may institute
 1408  enforcement proceedings in its own name against any developer,
 1409  bulk assignee, bulk buyer, association, officer, or member of
 1410  the board of administration, or its assignees or agents, as
 1411  follows:
 1412         1. The division may permit a person whose conduct or
 1413  actions may be under investigation to waive formal proceedings
 1414  and enter into a consent proceeding whereby orders, rules, or
 1415  letters of censure or warning, whether formal or informal, may
 1416  be entered against the person.
 1417         2. The division may issue an order requiring the developer,
 1418  bulk assignee, bulk buyer, association, developer-designated
 1419  officer, or developer-designated member of the board of
 1420  administration, developer-designated assignees or agents, bulk
 1421  assignee-designated assignees or agents, bulk buyer-designated
 1422  assignees or agents, community association manager, or community
 1423  association management firm to cease and desist from the
 1424  unlawful practice and take such affirmative action as in the
 1425  judgment of the division carry out the purposes of this chapter.
 1426  If the division finds that a developer, bulk assignee, bulk
 1427  buyer, association, officer, or member of the board of
 1428  administration, or its assignees or agents, is violating or is
 1429  about to violate any provision of this chapter, any rule adopted
 1430  or order issued by the division, or any written agreement
 1431  entered into with the division, and presents an immediate danger
 1432  to the public requiring an immediate final order, it may issue
 1433  an emergency cease and desist order reciting with particularity
 1434  the facts underlying such findings. The emergency cease and
 1435  desist order is effective for 90 days. If the division begins
 1436  nonemergency cease and desist proceedings, the emergency cease
 1437  and desist order remains effective until the conclusion of the
 1438  proceedings under ss. 120.569 and 120.57.
 1439         3. If a developer, bulk assignee, or bulk buyer, fails to
 1440  pay any restitution determined by the division to be owed, plus
 1441  any accrued interest at the highest rate permitted by law,
 1442  within 30 days after expiration of any appellate time period of
 1443  a final order requiring payment of restitution or the conclusion
 1444  of any appeal thereof, whichever is later, the division must
 1445  bring an action in circuit or county court on behalf of any
 1446  association, class of unit owners, lessees, or purchasers for
 1447  restitution, declaratory relief, injunctive relief, or any other
 1448  available remedy. The division may also temporarily revoke its
 1449  acceptance of the filing for the developer to which the
 1450  restitution relates until payment of restitution is made.
 1451         4. The division may petition the court for appointment of a
 1452  receiver or conservator. If appointed, the receiver or
 1453  conservator may take action to implement the court order to
 1454  ensure the performance of the order and to remedy any breach
 1455  thereof. In addition to all other means provided by law for the
 1456  enforcement of an injunction or temporary restraining order, the
 1457  circuit court may impound or sequester the property of a party
 1458  defendant, including books, papers, documents, and related
 1459  records, and allow the examination and use of the property by
 1460  the division and a court-appointed receiver or conservator.
 1461         5. The division may apply to the circuit court for an order
 1462  of restitution whereby the defendant in an action brought
 1463  pursuant to subparagraph 4. is ordered to make restitution of
 1464  those sums shown by the division to have been obtained by the
 1465  defendant in violation of this chapter. At the option of the
 1466  court, such restitution is payable to the conservator or
 1467  receiver appointed pursuant to subparagraph 4. or directly to
 1468  the persons whose funds or assets were obtained in violation of
 1469  this chapter.
 1470         6. The division may impose a civil penalty against a
 1471  developer, bulk assignee, or bulk buyer, or association, or its
 1472  assignee or agent, for any violation of this chapter or related
 1473  rule. The division may impose a civil penalty individually
 1474  against an officer or board member who willfully and knowingly
 1475  violates a provision of this chapter, adopted rule, or a final
 1476  order of the division; may order the removal of such individual
 1477  as an officer or from the board of administration or as an
 1478  officer of the association; and may prohibit such individual
 1479  from serving as an officer or on the board of a community
 1480  association for a period of time. The term “willfully and
 1481  knowingly” means that the division informed the officer or board
 1482  member that his or her action or intended action violates this
 1483  chapter, a rule adopted under this chapter, or a final order of
 1484  the division and that the officer or board member refused to
 1485  comply with the requirements of this chapter, a rule adopted
 1486  under this chapter, or a final order of the division. The
 1487  division, before initiating formal agency action under chapter
 1488  120, must afford the officer or board member an opportunity to
 1489  voluntarily comply, and an officer or board member who complies
 1490  within 10 days is not subject to a civil penalty. A penalty may
 1491  be imposed on the basis of each day of continuing violation, but
 1492  the penalty for any offense may not exceed $5,000. By January 1,
 1493  1998, the division shall adopt, by rule, penalty guidelines
 1494  applicable to possible violations or to categories of violations
 1495  of this chapter or rules adopted by the division. The guidelines
 1496  must specify a meaningful range of civil penalties for each such
 1497  violation of the statute and rules and must be based upon the
 1498  harm caused by the violation, the repetition of the violation,
 1499  and upon such other factors deemed relevant by the division. For
 1500  example, the division may consider whether the violations were
 1501  committed by a developer, bulk assignee, or bulk buyer, or
 1502  owner-controlled association, the size of the association, and
 1503  other factors. The guidelines must designate the possible
 1504  mitigating or aggravating circumstances that justify a departure
 1505  from the range of penalties provided by the rules. It is the
 1506  legislative intent that minor violations be distinguished from
 1507  those which endanger the health, safety, or welfare of the
 1508  condominium residents or other persons and that such guidelines
 1509  provide reasonable and meaningful notice to the public of likely
 1510  penalties that may be imposed for proscribed conduct. This
 1511  subsection does not limit the ability of the division to
 1512  informally dispose of administrative actions or complaints by
 1513  stipulation, agreed settlement, or consent order. All amounts
 1514  collected shall be deposited with the Chief Financial Officer to
 1515  the credit of the Division of Florida Condominiums, Homeowners’
 1516  Associations, Timeshares, and Mobile Homes Trust Fund. If a
 1517  developer, bulk assignee, or bulk buyer fails to pay the civil
 1518  penalty and the amount deemed to be owed to the association, the
 1519  division shall issue an order directing that such developer,
 1520  bulk assignee, or bulk buyer cease and desist from further
 1521  operation until such time as the civil penalty is paid or may
 1522  pursue enforcement of the penalty in a court of competent
 1523  jurisdiction. If an association fails to pay the civil penalty,
 1524  the division shall pursue enforcement in a court of competent
 1525  jurisdiction, and the order imposing the civil penalty or the
 1526  cease and desist order is not effective until 20 days after the
 1527  date of such order. Any action commenced by the division shall
 1528  be brought in the county in which the division has its executive
 1529  offices or in the county where the violation occurred.
 1530         7. If a unit owner presents the division with proof that
 1531  the unit owner has requested access to official records in
 1532  writing by certified mail, and that after 10 days the unit owner
 1533  again made the same request for access to official records in
 1534  writing by certified mail, and that more than 10 days has
 1535  elapsed since the second request and the association has still
 1536  failed or refused to provide access to official records as
 1537  required by this chapter, the division shall issue a subpoena
 1538  requiring production of the requested records where the records
 1539  are kept pursuant to s. 718.112.
 1540         8. In addition to subparagraph 6., the division may seek
 1541  the imposition of a civil penalty through the circuit court for
 1542  any violation for which the division may issue a notice to show
 1543  cause under paragraph (r). The civil penalty shall be at least
 1544  $500 but no more than $5,000 for each violation. The court may
 1545  also award to the prevailing party court costs and reasonable
 1546  attorney attorney’s fees and, if the division prevails, may also
 1547  award reasonable costs of investigation.
 1548         (e) The division may prepare and disseminate a prospectus
 1549  and other information to assist prospective owners, purchasers,
 1550  lessees, and developers of residential condominiums in assessing
 1551  the rights, privileges, and duties pertaining thereto.
 1552         (f) The division may adopt rules to administer and enforce
 1553  the provisions of this chapter.
 1554         (g) The division shall establish procedures for providing
 1555  notice to an association and the developer, bulk assignee, or
 1556  bulk buyer during the period in which the developer, bulk
 1557  assignee, or bulk buyer controls the association if the division
 1558  is considering the issuance of a declaratory statement with
 1559  respect to the declaration of condominium or any related
 1560  document governing such condominium community.
 1561         (h) The division shall furnish each association that pays
 1562  the fees required by paragraph (2)(a) a copy of this chapter, as
 1563  amended, and the rules adopted thereto on an annual basis.
 1564         (i) The division shall annually provide each association
 1565  with a summary of declaratory statements and formal legal
 1566  opinions relating to the operations of condominiums which were
 1567  rendered by the division during the previous year.
 1568         (j) The division shall provide training and educational
 1569  programs for condominium association board members and unit
 1570  owners. The training may, in the division’s discretion, include
 1571  web-based electronic media, and live training and seminars in
 1572  various locations throughout the state. The division may review
 1573  and approve education and training programs for board members
 1574  and unit owners offered by providers and shall maintain a
 1575  current list of approved programs and providers and make such
 1576  list available to board members and unit owners in a reasonable
 1577  and cost-effective manner.
 1578         (k) The division shall maintain a toll-free telephone
 1579  number accessible to condominium unit owners.
 1580         (l) The division shall develop a program to certify both
 1581  volunteer and paid mediators to provide mediation of condominium
 1582  disputes. The division shall provide, upon request, a list of
 1583  such mediators to any association, unit owner, or other
 1584  participant in arbitration proceedings under s. 718.1255
 1585  requesting a copy of the list. The division shall include on the
 1586  list of volunteer mediators only the names of persons who have
 1587  received at least 20 hours of training in mediation techniques
 1588  or who have mediated at least 20 disputes. In order to become
 1589  initially certified by the division, paid mediators must be
 1590  certified by the Supreme Court to mediate court cases in county
 1591  or circuit courts. However, the division may adopt, by rule,
 1592  additional factors for the certification of paid mediators,
 1593  which must be related to experience, education, or background.
 1594  Any person initially certified as a paid mediator by the
 1595  division must, in order to continue to be certified, comply with
 1596  the factors or requirements adopted by rule.
 1597         (m) If a complaint is made, the division must conduct its
 1598  inquiry with due regard for the interests of the affected
 1599  parties. Within 30 days after receipt of a complaint, the
 1600  division shall acknowledge the complaint in writing and notify
 1601  the complainant whether the complaint is within the jurisdiction
 1602  of the division and whether additional information is needed by
 1603  the division from the complainant. The division shall conduct
 1604  its investigation and, within 90 days after receipt of the
 1605  original complaint or of timely requested additional
 1606  information, take action upon the complaint. However, the
 1607  failure to complete the investigation within 90 days does not
 1608  prevent the division from continuing the investigation,
 1609  accepting or considering evidence obtained or received after 90
 1610  days, or taking administrative action if reasonable cause exists
 1611  to believe that a violation of this chapter or a rule has
 1612  occurred. If an investigation is not completed within the time
 1613  limits established in this paragraph, the division shall, on a
 1614  monthly basis, notify the complainant in writing of the status
 1615  of the investigation. When reporting its action to the
 1616  complainant, the division shall inform the complainant of any
 1617  right to a hearing pursuant to ss. 120.569 and 120.57.
 1618         (n) Condominium association directors, officers, and
 1619  employees; condominium developers; bulk assignees, bulk buyers,
 1620  and community association managers; and community association
 1621  management firms have an ongoing duty to reasonably cooperate
 1622  with the division in any investigation pursuant to this section.
 1623  The division shall refer to local law enforcement authorities
 1624  any person whom the division believes has altered, destroyed,
 1625  concealed, or removed any record, document, or thing required to
 1626  be kept or maintained by this chapter with the purpose to impair
 1627  its verity or availability in the department’s investigation.
 1628         (o) The division may:
 1629         1. Contract with agencies in this state or other
 1630  jurisdictions to perform investigative functions; or
 1631         2. Accept grants-in-aid from any source.
 1632         (p) The division shall cooperate with similar agencies in
 1633  other jurisdictions to establish uniform filing procedures and
 1634  forms, public offering statements, advertising standards, and
 1635  rules and common administrative practices.
 1636         (q) The division shall consider notice to a developer, bulk
 1637  assignee, or bulk buyer to be complete when it is delivered to
 1638  the address of the developer, bulk assignee, or bulk buyer
 1639  currently on file with the division.
 1640         (r) In addition to its enforcement authority, the division
 1641  may issue a notice to show cause, which must provide for a
 1642  hearing, upon written request, in accordance with chapter 120.
 1643         (s) The division shall submit to the Governor, the
 1644  President of the Senate, the Speaker of the House of
 1645  Representatives, and the chairs of the legislative
 1646  appropriations committees an annual report that includes, but
 1647  need not be limited to, the number of training programs provided
 1648  for condominium association board members and unit owners, the
 1649  number of complaints received by type, the number and percent of
 1650  complaints acknowledged in writing within 30 days and the number
 1651  and percent of investigations acted upon within 90 days in
 1652  accordance with paragraph (m), and the number of investigations
 1653  exceeding the 90-day requirement. The annual report must also
 1654  include an evaluation of the division’s core business processes
 1655  and make recommendations for improvements, including statutory
 1656  changes. The report shall be submitted by September 30 following
 1657  the end of the fiscal year.
 1658         (2)(a) Each condominium association which operates more
 1659  than two units shall pay to the division an annual fee in the
 1660  amount of $4 for each residential unit in condominiums operated
 1661  by the association. If the fee is not paid by March 1, the
 1662  association shall be assessed a penalty of 10 percent of the
 1663  amount due, and the association will not have standing to
 1664  maintain or defend any action in the courts of this state until
 1665  the amount due, plus any penalty, is paid.
 1666         (b) All fees shall be deposited in the Division of Florida
 1667  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 1668  Homes Trust Fund as provided by law.
 1669         Section 28. Subsection (1) of section 718.5011, Florida
 1670  Statutes, is amended to read:
 1671         718.5011 Ombudsman; appointment; administration.—
 1672         (1) There is created an Office of the Condominium
 1673  Ombudsman, to be located for administrative purposes within the
 1674  Division of Florida Condominiums, Homeowners’ Associations,
 1675  Timeshares, and Mobile Homes. The functions of the office shall
 1676  be funded by the Division of Florida Condominiums, Homeowners’
 1677  Associations, Timeshares, and Mobile Homes Trust Fund. The
 1678  ombudsman shall be a bureau chief of the division, and the
 1679  office shall be set within the division in the same manner as
 1680  any other bureau is staffed and funded.
 1681         Section 29. Paragraph (a) of subsection (2) of section
 1682  718.502, Florida Statutes, is amended to read:
 1683         718.502 Filing prior to sale or lease.—
 1684         (2)(a) Before prior to filing as required by subsection
 1685  (1), and before prior to acquiring an ownership, leasehold, or
 1686  contractual interest in the land upon which the condominium is
 1687  to be developed, a developer may shall not offer a contract for
 1688  purchase of a unit or lease of a unit for more than 5 years.
 1689  However, the developer may accept deposits for reservations upon
 1690  the approval of a fully executed escrow agreement and
 1691  reservation agreement form properly filed with the Division of
 1692  Florida Condominiums, Homeowners’ Associations, Timeshares, and
 1693  Mobile Homes. Each filing of a proposed reservation program
 1694  shall be accompanied by a filing fee of $250. Reservations may
 1695  shall not be taken on a proposed condominium unless the
 1696  developer has an ownership, leasehold, or contractual interest
 1697  in the land upon which the condominium is to be developed. The
 1698  division shall notify the developer within 20 days of receipt of
 1699  the reservation filing of any deficiencies contained therein.
 1700  Such notification does shall not preclude the determination of
 1701  reservation filing deficiencies at a later date, nor shall it
 1702  relieve the developer of any responsibility under the law. The
 1703  escrow agreement and the reservation agreement form shall
 1704  include a statement of the right of the prospective purchaser to
 1705  an immediate unqualified refund of the reservation deposit
 1706  moneys upon written request to the escrow agent by the
 1707  prospective purchaser or the developer.
 1708         Section 30. Paragraph (a) of subsection (2) of section
 1709  718.503, Florida Statutes, is amended to read:
 1710         718.503 Developer disclosure prior to sale; nondeveloper
 1711  unit owner disclosure prior to sale; voidability.—
 1712         (2) NONDEVELOPER DISCLOSURE.—
 1713         (a) Each unit owner who is not a developer as defined by
 1714  this chapter shall comply with the provisions of this subsection
 1715  before prior to the sale of his or her unit. Each prospective
 1716  purchaser who has entered into a contract for the purchase of a
 1717  condominium unit is entitled, at the seller’s expense, to a
 1718  current copy of the declaration of condominium, articles of
 1719  incorporation of the association, bylaws and rules of the
 1720  association, financial information required by s. 718.111, and
 1721  the document entitled “Frequently Asked Questions and Answers”
 1722  required by s. 718.504. On and after January 1, 2009, the
 1723  prospective purchaser shall also be entitled to receive from the
 1724  seller a copy of a governance form. Such form shall be provided
 1725  by the division summarizing governance of condominium
 1726  associations. In addition to such other information as the
 1727  division considers helpful to a prospective purchaser in
 1728  understanding association governance, the governance form shall
 1729  address the following subjects:
 1730         1. The role of the board in conducting the day-to-day
 1731  affairs of the association on behalf of, and in the best
 1732  interests of, the owners.
 1733         2. The board’s responsibility to provide advance notice of
 1734  board and membership meetings.
 1735         3. The rights of owners to attend and speak at board and
 1736  membership meetings.
 1737         4. The responsibility of the board and of owners with
 1738  respect to maintenance of the condominium property.
 1739         5. The responsibility of the board and owners to abide by
 1740  the condominium documents, this chapter, rules adopted by the
 1741  division, and reasonable rules adopted by the board.
 1742         6. Owners’ rights to inspect and copy association records
 1743  and the limitations on such rights.
 1744         7. Remedies available to owners with respect to actions by
 1745  the board which may be abusive or beyond the board’s power and
 1746  authority.
 1747         8. The right of the board to hire a property management
 1748  firm, subject to its own primary responsibility for such
 1749  management.
 1750         9. The responsibility of owners with regard to payment of
 1751  regular or special assessments necessary for the operation of
 1752  the property and the potential consequences of failure to pay
 1753  such assessments.
 1754         10. The voting rights of owners.
 1755         11. Rights and obligations of the board in enforcement of
 1756  rules in the condominium documents and rules adopted by the
 1757  board.
 1758  
 1759  The governance form shall also include the following statement
 1760  in conspicuous type: “This publication is intended as an
 1761  informal educational overview of condominium governance. In the
 1762  event of a conflict, this the provisions of chapter 718, Florida
 1763  Statutes, rules adopted by the Division of Florida Condominiums,
 1764  Homeowners’ Associations, Timeshares, and Mobile Homes of the
 1765  Department of Business and Professional Regulation, the
 1766  provisions of the condominium documents, and reasonable rules
 1767  adopted by the condominium association’s board of administration
 1768  prevail over the contents of this publication.”
 1769         Section 31. Section 718.504, Florida Statutes, is amended
 1770  to read:
 1771         718.504 Prospectus or offering circular.—Every developer of
 1772  a residential condominium which contains more than 20
 1773  residential units, or which is part of a group of residential
 1774  condominiums which will be served by property to be used in
 1775  common by unit owners of more than 20 residential units, shall
 1776  prepare a prospectus or offering circular and file it with the
 1777  Division of Florida Condominiums, Homeowners’ Associations,
 1778  Timeshares, and Mobile Homes before prior to entering into an
 1779  enforceable contract of purchase and sale of any unit or lease
 1780  of a unit for more than 5 years and shall furnish a copy of the
 1781  prospectus or offering circular to each buyer. In addition to
 1782  the prospectus or offering circular, each buyer shall be
 1783  furnished a separate page entitled “Frequently Asked Questions
 1784  and Answers,” which shall be in accordance with a format
 1785  approved by the division and a copy of the financial information
 1786  required by s. 718.111. This page shall, in readable language,
 1787  inform prospective purchasers regarding their voting rights and
 1788  unit use restrictions, including restrictions on the leasing of
 1789  a unit; shall indicate whether and in what amount the unit
 1790  owners or the association is obligated to pay rent or land use
 1791  fees for recreational or other commonly used facilities; shall
 1792  contain a statement identifying that amount of assessment which,
 1793  pursuant to the budget, would be levied upon each unit type,
 1794  exclusive of any special assessments, and which shall further
 1795  identify the basis upon which assessments are levied, whether
 1796  monthly, quarterly, or otherwise; shall state and identify any
 1797  court cases in which the association is currently a party of
 1798  record in which the association may face liability in excess of
 1799  $100,000; and which shall further state whether membership in a
 1800  recreational facilities association is mandatory, and if so,
 1801  shall identify the fees currently charged per unit type. The
 1802  division shall by rule require such other disclosure as in its
 1803  judgment will assist prospective purchasers. The prospectus or
 1804  offering circular may include more than one condominium,
 1805  although not all such units are being offered for sale as of the
 1806  date of the prospectus or offering circular. The prospectus or
 1807  offering circular must contain the following information:
 1808         (1) The front cover or the first page must contain only:
 1809         (a) The name of the condominium.
 1810         (b) The following statements in conspicuous type:
 1811         1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
 1812  MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
 1813         2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
 1814  NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
 1815  ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
 1816  MATERIALS.
 1817         3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
 1818  STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
 1819  PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
 1820  REPRESENTATIONS.
 1821         (2) Summary: The next page must contain all statements
 1822  required to be in conspicuous type in the prospectus or offering
 1823  circular.
 1824         (3) A separate index of the contents and exhibits of the
 1825  prospectus.
 1826         (4) Beginning on the first page of the text (not including
 1827  the summary and index), a description of the condominium,
 1828  including, but not limited to, the following information:
 1829         (a) Its name and location.
 1830         (b) A description of the condominium property, including,
 1831  without limitation:
 1832         1. The number of buildings, the number of units in each
 1833  building, the number of bathrooms and bedrooms in each unit, and
 1834  the total number of units, if the condominium is not a phase
 1835  condominium, or the maximum number of buildings that may be
 1836  contained within the condominium, the minimum and maximum
 1837  numbers of units in each building, the minimum and maximum
 1838  numbers of bathrooms and bedrooms that may be contained in each
 1839  unit, and the maximum number of units that may be contained
 1840  within the condominium, if the condominium is a phase
 1841  condominium.
 1842         2. The page in the condominium documents where a copy of
 1843  the plot plan and survey of the condominium is located.
 1844         3. The estimated latest date of completion of constructing,
 1845  finishing, and equipping. In lieu of a date, the description
 1846  shall include a statement that the estimated date of completion
 1847  of the condominium is in the purchase agreement and a reference
 1848  to the article or paragraph containing that information.
 1849         (c) The maximum number of units that will use facilities in
 1850  common with the condominium. If the maximum number of units will
 1851  vary, a description of the basis for variation and the minimum
 1852  amount of dollars per unit to be spent for additional
 1853  recreational facilities or enlargement of such facilities. If
 1854  the addition or enlargement of facilities will result in a
 1855  material increase of a unit owner’s maintenance expense or
 1856  rental expense, if any, the maximum increase and limitations
 1857  thereon shall be stated.
 1858         (5)(a) A statement in conspicuous type describing whether
 1859  the condominium is created and being sold as fee simple
 1860  interests or as leasehold interests. If the condominium is
 1861  created or being sold on a leasehold, the location of the lease
 1862  in the disclosure materials shall be stated.
 1863         (b) If timeshare estates are or may be created with respect
 1864  to any unit in the condominium, a statement in conspicuous type
 1865  stating that timeshare estates are created and being sold in
 1866  units in the condominium.
 1867         (6) A description of the recreational and other commonly
 1868  used facilities that will be used only by unit owners of the
 1869  condominium, including, but not limited to, the following:
 1870         (a) Each room and its intended purposes, location,
 1871  approximate floor area, and capacity in numbers of people.
 1872         (b) Each swimming pool, as to its general location,
 1873  approximate size and depths, approximate deck size and capacity,
 1874  and whether heated.
 1875         (c) Additional facilities, as to the number of each
 1876  facility, its approximate location, approximate size, and
 1877  approximate capacity.
 1878         (d) A general description of the items of personal property
 1879  and the approximate number of each item of personal property
 1880  that the developer is committing to furnish for each room or
 1881  other facility or, in the alternative, a representation as to
 1882  the minimum amount of expenditure that will be made to purchase
 1883  the personal property for the facility.
 1884         (e) The estimated date when each room or other facility
 1885  will be available for use by the unit owners.
 1886         (f)1. An identification of each room or other facility to
 1887  be used by unit owners that will not be owned by the unit owners
 1888  or the association;
 1889         2. A reference to the location in the disclosure materials
 1890  of the lease or other agreements providing for the use of those
 1891  facilities; and
 1892         3. A description of the terms of the lease or other
 1893  agreements, including the length of the term; the rent payable,
 1894  directly or indirectly, by each unit owner, and the total rent
 1895  payable to the lessor, stated in monthly and annual amounts for
 1896  the entire term of the lease; and a description of any option to
 1897  purchase the property leased under any such lease, including the
 1898  time the option may be exercised, the purchase price or how it
 1899  is to be determined, the manner of payment, and whether the
 1900  option may be exercised for a unit owner’s share or only as to
 1901  the entire leased property.
 1902         (g) A statement as to whether the developer may provide
 1903  additional facilities not described above; their general
 1904  locations and types; improvements or changes that may be made;
 1905  the approximate dollar amount to be expended; and the maximum
 1906  additional common expense or cost to the individual unit owners
 1907  that may be charged during the first annual period of operation
 1908  of the modified or added facilities.
 1909  
 1910  Descriptions as to locations, areas, capacities, numbers,
 1911  volumes, or sizes may be stated as approximations or minimums.
 1912         (7) A description of the recreational and other facilities
 1913  that will be used in common with other condominiums, community
 1914  associations, or planned developments which require the payment
 1915  of the maintenance and expenses of such facilities, directly or
 1916  indirectly, by the unit owners. The description shall include,
 1917  but not be limited to, the following:
 1918         (a) Each building and facility committed to be built.
 1919         (b) Facilities not committed to be built except under
 1920  certain conditions, and a statement of those conditions or
 1921  contingencies.
 1922         (c) As to each facility committed to be built, or which
 1923  will be committed to be built upon the happening of one of the
 1924  conditions in paragraph (b), a statement of whether it will be
 1925  owned by the unit owners having the use thereof or by an
 1926  association or other entity which will be controlled by them, or
 1927  others, and the location in the exhibits of the lease or other
 1928  document providing for use of those facilities.
 1929         (d) The year in which each facility will be available for
 1930  use by the unit owners or, in the alternative, the maximum
 1931  number of unit owners in the project at the time each of all of
 1932  the facilities is committed to be completed.
 1933         (e) A general description of the items of personal
 1934  property, and the approximate number of each item of personal
 1935  property, that the developer is committing to furnish for each
 1936  room or other facility or, in the alternative, a representation
 1937  as to the minimum amount of expenditure that will be made to
 1938  purchase the personal property for the facility.
 1939         (f) If there are leases, a description thereof, including
 1940  the length of the term, the rent payable, and a description of
 1941  any option to purchase.
 1942  
 1943  Descriptions shall include location, areas, capacities, numbers,
 1944  volumes, or sizes and may be stated as approximations or
 1945  minimums.
 1946         (8) Recreation lease or associated club membership:
 1947         (a) If any recreational facilities or other facilities
 1948  offered by the developer and available to, or to be used by,
 1949  unit owners are to be leased or have club membership associated,
 1950  the following statement in conspicuous type shall be included:
 1951  THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
 1952  CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
 1953  CONDOMINIUM. There shall be a reference to the location in the
 1954  disclosure materials where the recreation lease or club
 1955  membership is described in detail.
 1956         (b) If it is mandatory that unit owners pay a fee, rent,
 1957  dues, or other charges under a recreational facilities lease or
 1958  club membership for the use of facilities, there shall be in
 1959  conspicuous type the applicable statement:
 1960         1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
 1961  MANDATORY FOR UNIT OWNERS; or
 1962         2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
 1963  TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
 1964         3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS
 1965  AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,
 1966  RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE
 1967  OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
 1968         4. A similar statement of the nature of the organization or
 1969  the manner in which the use rights are created, and that unit
 1970  owners are required to pay.
 1971  
 1972  Immediately following the applicable statement, the location in
 1973  the disclosure materials where the development is described in
 1974  detail shall be stated.
 1975         (c) If the developer, or any other person other than the
 1976  unit owners and other persons having use rights in the
 1977  facilities, reserves, or is entitled to receive, any rent, fee,
 1978  or other payment for the use of the facilities, then there shall
 1979  be the following statement in conspicuous type: THE UNIT OWNERS
 1980  OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
 1981  RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
 1982  following this statement, the location in the disclosure
 1983  materials where the rent or land use fees are described in
 1984  detail shall be stated.
 1985         (d) If, in any recreation format, whether leasehold, club,
 1986  or other, any person other than the association has the right to
 1987  a lien on the units to secure the payment of assessments, rent,
 1988  or other exactions, there shall appear a statement in
 1989  conspicuous type in substantially the following form:
 1990         1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
 1991  SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
 1992  RECREATION LEASE. THE UNIT OWNER’S FAILURE TO MAKE THESE
 1993  PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
 1994         2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
 1995  SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
 1996  FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
 1997  OR COMMONLY USED FACILITIES. THE UNIT OWNER’S FAILURE TO MAKE
 1998  THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
 1999  
 2000  Immediately following the applicable statement, the location in
 2001  the disclosure materials where the lien or lien right is
 2002  described in detail shall be stated.
 2003         (9) If the developer or any other person has the right to
 2004  increase or add to the recreational facilities at any time after
 2005  the establishment of the condominium whose unit owners have use
 2006  rights therein, without the consent of the unit owners or
 2007  associations being required, there shall appear a statement in
 2008  conspicuous type in substantially the following form:
 2009  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
 2010  OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
 2011  statement, the location in the disclosure materials where such
 2012  reserved rights are described shall be stated.
 2013         (10) A statement of whether the developer’s plan includes a
 2014  program of leasing units rather than selling them, or leasing
 2015  units and selling them subject to such leases. If so, there
 2016  shall be a description of the plan, including the number and
 2017  identification of the units and the provisions and term of the
 2018  proposed leases, and a statement in boldfaced type that: THE
 2019  UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
 2020         (11) The arrangements for management of the association and
 2021  maintenance and operation of the condominium property and of
 2022  other property that will serve the unit owners of the
 2023  condominium property, and a description of the management
 2024  contract and all other contracts for these purposes having a
 2025  term in excess of 1 year, including the following:
 2026         (a) The names of contracting parties.
 2027         (b) The term of the contract.
 2028         (c) The nature of the services included.
 2029         (d) The compensation, stated on a monthly and annual basis,
 2030  and provisions for increases in the compensation.
 2031         (e) A reference to the volumes and pages of the condominium
 2032  documents and of the exhibits containing copies of such
 2033  contracts.
 2034  
 2035  Copies of all described contracts shall be attached as exhibits.
 2036  If there is a contract for the management of the condominium
 2037  property, then a statement in conspicuous type in substantially
 2038  the following form shall appear, identifying the proposed or
 2039  existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
 2040  THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
 2041  CONTRACT MANAGER). Immediately following this statement, the
 2042  location in the disclosure materials of the contract for
 2043  management of the condominium property shall be stated.
 2044         (12) If the developer or any other person or persons other
 2045  than the unit owners has the right to retain control of the
 2046  board of administration of the association for a period of time
 2047  which can exceed 1 year after the closing of the sale of a
 2048  majority of the units in that condominium to persons other than
 2049  successors or alternate developers, then a statement in
 2050  conspicuous type in substantially the following form shall be
 2051  included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
 2052  RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
 2053  HAVE BEEN SOLD. Immediately following this statement, the
 2054  location in the disclosure materials where this right to control
 2055  is described in detail shall be stated.
 2056         (13) If there are any restrictions upon the sale, transfer,
 2057  conveyance, or leasing of a unit, then a statement in
 2058  conspicuous type in substantially the following form shall be
 2059  included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
 2060  CONTROLLED. Immediately following this statement, the location
 2061  in the disclosure materials where the restriction, limitation,
 2062  or control on the sale, lease, or transfer of units is described
 2063  in detail shall be stated.
 2064         (14) If the condominium is part of a phase project, the
 2065  following information shall be stated:
 2066         (a) A statement in conspicuous type in substantially the
 2067  following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
 2068  UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
 2069  this statement, the location in the disclosure materials where
 2070  the phasing is described shall be stated.
 2071         (b) A summary of the provisions of the declaration which
 2072  provide for the phasing.
 2073         (c) A statement as to whether or not residential buildings
 2074  and units which are added to the condominium may be
 2075  substantially different from the residential buildings and units
 2076  originally in the condominium. If the added residential
 2077  buildings and units may be substantially different, there shall
 2078  be a general description of the extent to which such added
 2079  residential buildings and units may differ, and a statement in
 2080  conspicuous type in substantially the following form shall be
 2081  included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
 2082  MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
 2083  UNITS IN THE CONDOMINIUM. Immediately following this statement,
 2084  the location in the disclosure materials where the extent to
 2085  which added residential buildings and units may substantially
 2086  differ is described shall be stated.
 2087         (d) A statement of the maximum number of buildings
 2088  containing units, the maximum and minimum numbers of units in
 2089  each building, the maximum number of units, and the minimum and
 2090  maximum square footage of the units that may be contained within
 2091  each parcel of land which may be added to the condominium.
 2092         (15) If a condominium created on or after July 1, 2000, is
 2093  or may become part of a multicondominium, the following
 2094  information must be provided:
 2095         (a) A statement in conspicuous type in substantially the
 2096  following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
 2097  MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
 2098  (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
 2099  this statement, the location in the prospectus or offering
 2100  circular and its exhibits where the multicondominium aspects of
 2101  the offering are described must be stated.
 2102         (b) A summary of the provisions in the declaration,
 2103  articles of incorporation, and bylaws which establish and
 2104  provide for the operation of the multicondominium, including a
 2105  statement as to whether unit owners in the condominium will have
 2106  the right to use recreational or other facilities located or
 2107  planned to be located in other condominiums operated by the same
 2108  association, and the manner of sharing the common expenses
 2109  related to such facilities.
 2110         (c) A statement of the minimum and maximum number of
 2111  condominiums, and the minimum and maximum number of units in
 2112  each of those condominiums, which will or may be operated by the
 2113  association, and the latest date by which the exact number will
 2114  be finally determined.
 2115         (d) A statement as to whether any of the condominiums in
 2116  the multicondominium may include units intended to be used for
 2117  nonresidential purposes and the purpose or purposes permitted
 2118  for such use.
 2119         (e) A general description of the location and approximate
 2120  acreage of any land on which any additional condominiums to be
 2121  operated by the association may be located.
 2122         (16) If the condominium is created by conversion of
 2123  existing improvements, the following information shall be
 2124  stated:
 2125         (a) The information required by s. 718.616.
 2126         (b) A caveat that there are no express warranties unless
 2127  they are stated in writing by the developer.
 2128         (17) A summary of the restrictions, if any, to be imposed
 2129  on units concerning the use of any of the condominium property,
 2130  including statements as to whether there are restrictions upon
 2131  children and pets, and reference to the volumes and pages of the
 2132  condominium documents where such restrictions are found, or if
 2133  such restrictions are contained elsewhere, then a copy of the
 2134  documents containing the restrictions shall be attached as an
 2135  exhibit.
 2136         (18) If there is any land that is offered by the developer
 2137  for use by the unit owners and that is neither owned by them nor
 2138  leased to them, the association, or any entity controlled by
 2139  unit owners and other persons having the use rights to such
 2140  land, a statement shall be made as to how such land will serve
 2141  the condominium. If any part of such land will serve the
 2142  condominium, the statement shall describe the land and the
 2143  nature and term of service, and the declaration or other
 2144  instrument creating such servitude shall be included as an
 2145  exhibit.
 2146         (19) The manner in which utility and other services,
 2147  including, but not limited to, sewage and waste disposal, water
 2148  supply, and storm drainage, will be provided and the person or
 2149  entity furnishing them.
 2150         (20) An explanation of the manner in which the
 2151  apportionment of common expenses and ownership of the common
 2152  elements has been determined.
 2153         (21) An estimated operating budget for the condominium and
 2154  the association, and a schedule of the unit owner’s expenses
 2155  shall be attached as an exhibit and shall contain the following
 2156  information:
 2157         (a) The estimated monthly and annual expenses of the
 2158  condominium and the association that are collected from unit
 2159  owners by assessments.
 2160         (b) The estimated monthly and annual expenses of each unit
 2161  owner for a unit, other than common expenses paid by all unit
 2162  owners, payable by the unit owner to persons or entities other
 2163  than the association, as well as to the association, including
 2164  fees assessed pursuant to s. 718.113(1) for maintenance of
 2165  limited common elements where such costs are shared only by
 2166  those entitled to use the limited common element, and the total
 2167  estimated monthly and annual expense. There may be excluded from
 2168  this estimate expenses which are not provided for or
 2169  contemplated by the condominium documents, including, but not
 2170  limited to, the costs of private telephone; maintenance of the
 2171  interior of condominium units, which is not the obligation of
 2172  the association; maid or janitorial services privately
 2173  contracted for by the unit owners; utility bills billed directly
 2174  to each unit owner for utility services to his or her unit;
 2175  insurance premiums other than those incurred for policies
 2176  obtained by the condominium; and similar personal expenses of
 2177  the unit owner. A unit owner’s estimated payments for
 2178  assessments shall also be stated in the estimated amounts for
 2179  the times when they will be due.
 2180         (c) The estimated items of expenses of the condominium and
 2181  the association, except as excluded under paragraph (b),
 2182  including, but not limited to, the following items, which shall
 2183  be stated as an association expense collectible by assessments
 2184  or as unit owners’ expenses payable to persons other than the
 2185  association:
 2186         1. Expenses for the association and condominium:
 2187         a. Administration of the association.
 2188         b. Management fees.
 2189         c. Maintenance.
 2190         d. Rent for recreational and other commonly used
 2191  facilities.
 2192         e. Taxes upon association property.
 2193         f. Taxes upon leased areas.
 2194         g. Insurance.
 2195         h. Security provisions.
 2196         i. Other expenses.
 2197         j. Operating capital.
 2198         k. Reserves.
 2199         l. Fees payable to the division.
 2200         2. Expenses for a unit owner:
 2201         a. Rent for the unit, if subject to a lease.
 2202         b. Rent payable by the unit owner directly to the lessor or
 2203  agent under any recreational lease or lease for the use of
 2204  commonly used facilities, which use and payment is a mandatory
 2205  condition of ownership and is not included in the common expense
 2206  or assessments for common maintenance paid by the unit owners to
 2207  the association.
 2208         (d) The following statement in conspicuous type: THE BUDGET
 2209  CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN
 2210  ACCORDANCE WITH THE CONDOMINIUM ACT AND IS A GOOD FAITH ESTIMATE
 2211  ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON
 2212  FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
 2213  ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH
 2214  CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN
 2215  THE OFFERING.
 2216         (e) Each budget for an association prepared by a developer
 2217  consistent with this subsection shall be prepared in good faith
 2218  and shall reflect accurate estimated amounts for the required
 2219  items in paragraph (c) at the time of the filing of the offering
 2220  circular with the division, and subsequent increased amounts of
 2221  any item included in the association’s estimated budget that are
 2222  beyond the control of the developer may shall not be considered
 2223  an amendment that would give rise to rescission rights set forth
 2224  in s. 718.503(1)(a) or (b), nor shall such increases modify,
 2225  void, or otherwise affect any guarantee of the developer
 2226  contained in the offering circular or any purchase contract. It
 2227  is the intent of this paragraph to clarify existing law.
 2228         (f) The estimated amounts shall be stated for a period of
 2229  at least 12 months and may distinguish between the period before
 2230  prior to the time unit owners other than the developer elect a
 2231  majority of the board of administration and the period after
 2232  that date.
 2233         (22) A schedule of estimated closing expenses to be paid by
 2234  a buyer or lessee of a unit and a statement of whether title
 2235  opinion or title insurance policy is available to the buyer and,
 2236  if so, at whose expense.
 2237         (23) The identity of the developer and the chief operating
 2238  officer or principal directing the creation and sale of the
 2239  condominium and a statement of its and his or her experience in
 2240  this field.
 2241         (24) Copies of the following, to the extent they are
 2242  applicable, shall be included as exhibits:
 2243         (a) The declaration of condominium, or the proposed
 2244  declaration if the declaration has not been recorded.
 2245         (b) The articles of incorporation creating the association.
 2246         (c) The bylaws of the association.
 2247         (d) The ground lease or other underlying lease of the
 2248  condominium.
 2249         (e) The management agreement and all maintenance and other
 2250  contracts for management of the association and operation of the
 2251  condominium and facilities used by the unit owners having a
 2252  service term in excess of 1 year.
 2253         (f) The estimated operating budget for the condominium and
 2254  the required schedule of unit owners’ expenses.
 2255         (g) A copy of the floor plan of the unit and the plot plan
 2256  showing the location of the residential buildings and the
 2257  recreation and other common areas.
 2258         (h) The lease of recreational and other facilities that
 2259  will be used only by unit owners of the subject condominium.
 2260         (i) The lease of facilities used by owners and others.
 2261         (j) The form of unit lease, if the offer is of a leasehold.
 2262         (k) A declaration of servitude of properties serving the
 2263  condominium but not owned by unit owners or leased to them or
 2264  the association.
 2265         (l) The statement of condition of the existing building or
 2266  buildings, if the offering is of units in an operation being
 2267  converted to condominium ownership.
 2268         (m) The statement of inspection for termite damage and
 2269  treatment of the existing improvements, if the condominium is a
 2270  conversion.
 2271         (n) The form of agreement for sale or lease of units.
 2272         (o) A copy of the agreement for escrow of payments made to
 2273  the developer before prior to closing.
 2274         (p) A copy of the documents containing any restrictions on
 2275  use of the property required by subsection (17).
 2276         (25) Any prospectus or offering circular complying, before
 2277  prior to the effective date of this act, with the provisions of
 2278  former ss. 711.69 and 711.802 may continue to be used without
 2279  amendment or may be amended to comply with this chapter.
 2280         (26) A brief narrative description of the location and
 2281  effect of all existing and intended easements located or to be
 2282  located on the condominium property other than those described
 2283  in the declaration.
 2284         (27) If the developer is required by state or local
 2285  authorities to obtain acceptance or approval of any dock or
 2286  marina facilities intended to serve the condominium, a copy of
 2287  any such acceptance or approval acquired by the time of filing
 2288  with the division under s. 718.502(1) or a statement that such
 2289  acceptance or approval has not been acquired or received.
 2290         (28) Evidence demonstrating that the developer has an
 2291  ownership, leasehold, or contractual interest in the land upon
 2292  which the condominium is to be developed.
 2293         Section 32. Section 718.508, Florida Statutes, is amended
 2294  to read:
 2295         718.508 Regulation by Division of Hotels and Restaurants.
 2296  In addition to the authority, regulation, or control exercised
 2297  by the Division of Florida Condominiums, Homeowners’
 2298  Associations, Timeshares, and Mobile Homes pursuant to this act
 2299  with respect to condominiums, buildings included in a
 2300  condominium property are subject to the authority, regulation,
 2301  or control of the Division of Hotels and Restaurants of the
 2302  Department of Business and Professional Regulation, to the
 2303  extent provided in chapter 399.
 2304         Section 33. Paragraph (a) of subsection (2) of section
 2305  718.608, Florida Statutes, is amended to read:
 2306         718.608 Notice of intended conversion; time of delivery;
 2307  content.—
 2308         (2)(a) Each notice of intended conversion shall be dated
 2309  and in writing. The notice shall contain the following
 2310  statement, with the phrases of the following statement which
 2311  appear in upper case printed in conspicuous type:
 2312  
 2313         These apartments are being converted to condominium by
 2314  ...(name of developer)..., the developer.
 2315         1. YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
 2316  YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
 2317  AGREEMENT AS FOLLOWS:
 2318         a. If you have continuously been a resident of these
 2319  apartments during the last 180 days and your rental agreement
 2320  expires during the next 270 days, you may extend your rental
 2321  agreement for up to 270 days after the date of this notice.
 2322         b. If you have not been a continuous resident of these
 2323  apartments for the last 180 days and your rental agreement
 2324  expires during the next 180 days, you may extend your rental
 2325  agreement for up to 180 days after the date of this notice.
 2326         c. IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
 2327  MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
 2328  DATE OF THIS NOTICE.
 2329         2. IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
 2330  you may extend your rental agreement for up to 45 days after the
 2331  date of this notice while you decide whether to extend your
 2332  rental agreement as explained above. To do so, you must notify
 2333  the developer in writing. You will then have the full 45 days to
 2334  decide whether to extend your rental agreement as explained
 2335  above.
 2336         3. During the extension of your rental agreement you will
 2337  be charged the same rent that you are now paying.
 2338         4. YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
 2339  OF THE RENTAL AGREEMENT AS FOLLOWS:
 2340         a. If your rental agreement began or was extended or
 2341  renewed after May 1, 1980, and your rental agreement, including
 2342  extensions and renewals, has an unexpired term of 180 days or
 2343  less, you may cancel your rental agreement upon 30 days’ written
 2344  notice and move. Also, upon 30 days’ written notice, you may
 2345  cancel any extension of the rental agreement.
 2346         b. If your rental agreement was not begun or was not
 2347  extended or renewed after May 1, 1980, you may not cancel the
 2348  rental agreement without the consent of the developer. If your
 2349  rental agreement, including extensions and renewals, has an
 2350  unexpired term of 180 days or less, you may, however, upon 30
 2351  days’ written notice cancel any extension of the rental
 2352  agreement.
 2353         5. All notices must be given in writing and sent by mail,
 2354  return receipt requested, or delivered in person to the
 2355  developer at this address: ...(name and address of
 2356  developer)....
 2357         6. If you have continuously been a resident of these
 2358  apartments during the last 180 days:
 2359         a. You have the right to purchase your apartment and will
 2360  have 45 days to decide whether to purchase. If you do not buy
 2361  the unit at that price and the unit is later offered at a lower
 2362  price, you will have the opportunity to buy the unit at the
 2363  lower price. However, in all events your right to purchase the
 2364  unit ends when the rental agreement or any extension of the
 2365  rental agreement ends or when you waive this right in writing.
 2366         b. Within 90 days you will be provided purchase information
 2367  relating to your apartment, including the price of your unit and
 2368  the condition of the building. If you do not receive this
 2369  information within 90 days, your rental agreement and any
 2370  extension will be extended 1 day for each day over 90 days until
 2371  you are given the purchase information. If you do not want this
 2372  rental agreement extension, you must notify the developer in
 2373  writing.
 2374         7. If you have any questions regarding this conversion or
 2375  the Condominium Act, you may contact the developer or the state
 2376  agency which regulates condominiums: The Division of Florida
 2377  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 2378  Homes, ...(Tallahassee address and telephone number of
 2379  division)....
 2380         Section 34. Subsection (17) of section 719.103, Florida
 2381  Statutes, is amended to read:
 2382         719.103 Definitions.—As used in this chapter:
 2383         (17) “Division” means the Division of Florida Condominiums,
 2384  Homeowners’ Associations, Timeshares, and Mobile Homes of the
 2385  Department of Business and Professional Regulation.
 2386         Section 35. Section 719.1255, Florida Statutes, is amended
 2387  to read:
 2388         719.1255 Alternative resolution of disputes.—The Division
 2389  of Florida Condominiums, Homeowners’ Associations, Timeshares,
 2390  and Mobile Homes of the Department of Business and Professional
 2391  Regulation shall provide for alternative dispute resolution in
 2392  accordance with s. 718.1255.
 2393         Section 36. Section 719.501, Florida Statutes, is amended
 2394  to read:
 2395         719.501 Powers and duties of Division of Florida
 2396  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 2397  Homes.—
 2398         (1) The Division of Florida Condominiums, Homeowners’
 2399  Associations, Timeshares, and Mobile Homes of the Department of
 2400  Business and Professional Regulation, referred to as the
 2401  “division” in this part, in addition to other powers and duties
 2402  prescribed by chapter 718, has the power to enforce and ensure
 2403  compliance with this chapter and adopted rules relating to the
 2404  development, construction, sale, lease, ownership, operation,
 2405  and management of residential cooperative units. In performing
 2406  its duties, the division shall have the following powers and
 2407  duties:
 2408         (a) The division may make necessary public or private
 2409  investigations within or outside this state to determine whether
 2410  any person has violated this chapter or any rule or order
 2411  hereunder, to aid in the enforcement of this chapter, or to aid
 2412  in the adoption of rules or forms hereunder.
 2413         (b) The division may require or permit any person to file a
 2414  statement in writing, under oath or otherwise, as the division
 2415  determines, as to the facts and circumstances concerning a
 2416  matter to be investigated.
 2417         (c) For the purpose of any investigation under this
 2418  chapter, the division director or any officer or employee
 2419  designated by the division director may administer oaths or
 2420  affirmations, subpoena witnesses and compel their attendance,
 2421  take evidence, and require the production of any matter which is
 2422  relevant to the investigation, including the existence,
 2423  description, nature, custody, condition, and location of any
 2424  books, documents, or other tangible things and the identity and
 2425  location of persons having knowledge of relevant facts or any
 2426  other matter reasonably calculated to lead to the discovery of
 2427  material evidence. Upon failure by a person to obey a subpoena
 2428  or to answer questions propounded by the investigating officer
 2429  and upon reasonable notice to all persons affected thereby, the
 2430  division may apply to the circuit court for an order compelling
 2431  compliance.
 2432         (d) Notwithstanding any remedies available to unit owners
 2433  and associations, if the division has reasonable cause to
 2434  believe that a violation of any provision of this chapter or
 2435  related rule has occurred, the division may institute
 2436  enforcement proceedings in its own name against a developer,
 2437  association, officer, or member of the board, or its assignees
 2438  or agents, as follows:
 2439         1. The division may permit a person whose conduct or
 2440  actions may be under investigation to waive formal proceedings
 2441  and enter into a consent proceeding whereby orders, rules, or
 2442  letters of censure or warning, whether formal or informal, may
 2443  be entered against the person.
 2444         2. The division may issue an order requiring the developer,
 2445  association, officer, or member of the board, or its assignees
 2446  or agents, to cease and desist from the unlawful practice and
 2447  take such affirmative action as in the judgment of the division
 2448  will carry out the purposes of this chapter. Such affirmative
 2449  action may include, but is not limited to, an order requiring a
 2450  developer to pay moneys determined to be owed to a condominium
 2451  association.
 2452         3. The division may bring an action in circuit court on
 2453  behalf of a class of unit owners, lessees, or purchasers for
 2454  declaratory relief, injunctive relief, or restitution.
 2455         4. The division may impose a civil penalty against a
 2456  developer or association, or its assignees or agents, for any
 2457  violation of this chapter or related rule. The division may
 2458  impose a civil penalty individually against any officer or board
 2459  member who willfully and knowingly violates a provision of this
 2460  chapter, a rule adopted pursuant to this chapter, or a final
 2461  order of the division. The term “willfully and knowingly” means
 2462  that the division informed the officer or board member that his
 2463  or her action or intended action violates this chapter, a rule
 2464  adopted under this chapter, or a final order of the division,
 2465  and that the officer or board member refused to comply with the
 2466  requirements of this chapter, a rule adopted under this chapter,
 2467  or a final order of the division. The division, before prior to
 2468  initiating formal agency action under chapter 120, shall afford
 2469  the officer or board member an opportunity to voluntarily comply
 2470  with this chapter, a rule adopted under this chapter, or a final
 2471  order of the division. An officer or board member who complies
 2472  within 10 days is not subject to a civil penalty. A penalty may
 2473  be imposed on the basis of each day of continuing violation, but
 2474  in no event shall the penalty for any offense exceed $5,000. By
 2475  January 1, 1998, the division shall adopt, by rule, penalty
 2476  guidelines applicable to possible violations or to categories of
 2477  violations of this chapter or rules adopted by the division. The
 2478  guidelines must specify a meaningful range of civil penalties
 2479  for each such violation of the statute and rules and must be
 2480  based upon the harm caused by the violation, the repetition of
 2481  the violation, and upon such other factors deemed relevant by
 2482  the division. For example, the division may consider whether the
 2483  violations were committed by a developer or owner-controlled
 2484  association, the size of the association, and other factors. The
 2485  guidelines must designate the possible mitigating or aggravating
 2486  circumstances that justify a departure from the range of
 2487  penalties provided by the rules. It is the legislative intent
 2488  that minor violations be distinguished from those which endanger
 2489  the health, safety, or welfare of the cooperative residents or
 2490  other persons and that such guidelines provide reasonable and
 2491  meaningful notice to the public of likely penalties that may be
 2492  imposed for proscribed conduct. This subsection does not limit
 2493  the ability of the division to informally dispose of
 2494  administrative actions or complaints by stipulation, agreed
 2495  settlement, or consent order. All amounts collected shall be
 2496  deposited with the Chief Financial Officer to the credit of the
 2497  Division of Florida Condominiums, Homeowners’ Associations,
 2498  Timeshares, and Mobile Homes Trust Fund. If a developer fails to
 2499  pay the civil penalty, the division shall thereupon issue an
 2500  order directing that the such developer cease and desist from
 2501  further operation until such time as the civil penalty is paid
 2502  or shall may pursue enforcement of the penalty in a court of
 2503  competent jurisdiction. If an association fails to pay the civil
 2504  penalty, the division shall thereupon pursue enforcement in a
 2505  court of competent jurisdiction, and the order imposing the
 2506  civil penalty or the cease and desist order does shall not
 2507  become effective until 20 days after the date of such order. Any
 2508  action commenced by the division shall be brought in the county
 2509  in which the division has its executive offices or in the county
 2510  where the violation occurred.
 2511         (e) The division may prepare and disseminate a prospectus
 2512  and other information to assist prospective owners, purchasers,
 2513  lessees, and developers of residential cooperatives in assessing
 2514  the rights, privileges, and duties pertaining thereto.
 2515         (f) The division has authority to adopt rules pursuant to
 2516  ss. 120.536(1) and 120.54 to implement and enforce the
 2517  provisions of this chapter.
 2518         (g) The division shall establish procedures for providing
 2519  notice to an association when the division is considering the
 2520  issuance of a declaratory statement with respect to the
 2521  cooperative documents governing such cooperative community.
 2522         (h) The division shall furnish each association which pays
 2523  the fees required by paragraph (2)(a) a copy of this act,
 2524  subsequent changes to this act on an annual basis, an amended
 2525  version of this act as it becomes available from the Secretary
 2526  of State’s office on a biennial basis, and the rules adopted
 2527  thereto on an annual basis.
 2528         (i) The division shall annually provide each association
 2529  with a summary of declaratory statements and formal legal
 2530  opinions relating to the operations of cooperatives which were
 2531  rendered by the division during the previous year.
 2532         (j) The division shall adopt uniform accounting principles,
 2533  policies, and standards to be used by all associations in the
 2534  preparation and presentation of all financial statements
 2535  required by this chapter. The principles, policies, and
 2536  standards shall take into consideration the size of the
 2537  association and the total revenue collected by the association.
 2538         (k) The division shall provide training and educational
 2539  programs for cooperative association board members and unit
 2540  owners. The training may, in the division’s discretion, include
 2541  web-based electronic media, and live training and seminars in
 2542  various locations throughout the state. The division may review
 2543  and approve education and training programs for board members
 2544  and unit owners offered by providers and shall maintain a
 2545  current list of approved programs and providers and make such
 2546  list available to board members and unit owners in a reasonable
 2547  and cost-effective manner.
 2548         (l) The division shall maintain a toll-free telephone
 2549  number accessible to cooperative unit owners.
 2550         (m) When a complaint is made to the division, the division
 2551  shall conduct its inquiry with reasonable dispatch and with due
 2552  regard to the interests of the affected parties. Within 30 days
 2553  after receipt of a complaint, the division shall acknowledge the
 2554  complaint in writing and notify the complainant whether the
 2555  complaint is within the jurisdiction of the division and whether
 2556  additional information is needed by the division from the
 2557  complainant. The division shall conduct its investigation and
 2558  shall, within 90 days after receipt of the original complaint or
 2559  timely requested additional information, take action upon the
 2560  complaint. However, the failure to complete the investigation
 2561  within 90 days does not prevent the division from continuing the
 2562  investigation, accepting or considering evidence obtained or
 2563  received after 90 days, or taking administrative action if
 2564  reasonable cause exists to believe that a violation of this
 2565  chapter or a rule of the division has occurred. If an
 2566  investigation is not completed within the time limits
 2567  established in this paragraph, the division shall, on a monthly
 2568  basis, notify the complainant in writing of the status of the
 2569  investigation. When reporting its action to the complainant, the
 2570  division shall inform the complainant of any right to a hearing
 2571  pursuant to ss. 120.569 and 120.57.
 2572         (n) The division shall develop a program to certify both
 2573  volunteer and paid mediators to provide mediation of cooperative
 2574  disputes. The division shall provide, upon request, a list of
 2575  such mediators to any association, unit owner, or other
 2576  participant in arbitration proceedings under s. 718.1255
 2577  requesting a copy of the list. The division shall include on the
 2578  list of voluntary mediators only persons who have received at
 2579  least 20 hours of training in mediation techniques or have
 2580  mediated at least 20 disputes. In order to become initially
 2581  certified by the division, paid mediators must be certified by
 2582  the Supreme Court to mediate court cases in county or circuit
 2583  courts. However, the division may adopt, by rule, additional
 2584  factors for the certification of paid mediators, which factors
 2585  must be related to experience, education, or background. Any
 2586  person initially certified as a paid mediator by the division
 2587  must, in order to continue to be certified, comply with the
 2588  factors or requirements imposed by rules adopted by the
 2589  division.
 2590         (2)(a) Each cooperative association shall pay to the
 2591  division, on or before January 1 of each year, an annual fee in
 2592  the amount of $4 for each residential unit in cooperatives
 2593  operated by the association. If the fee is not paid by March 1,
 2594  then the association shall be assessed a penalty of 10 percent
 2595  of the amount due, and the association shall not have the
 2596  standing to maintain or defend any action in the courts of this
 2597  state until the amount due is paid.
 2598         (b) All fees shall be deposited in the Division of Florida
 2599  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 2600  Homes Trust Fund as provided by law.
 2601         Section 37. Paragraph (a) of subsection (2) of section
 2602  719.502, Florida Statutes, is amended to read:
 2603         719.502 Filing prior to sale or lease.—
 2604         (2)(a) Before Prior to filing as required by subsection
 2605  (1), and before prior to acquiring an ownership, leasehold, or
 2606  contractual interest in the land upon which the cooperative is
 2607  to be developed, a developer may shall not offer a contract for
 2608  purchase or lease of a unit for more than 5 years. However, the
 2609  developer may accept deposits for reservations upon the approval
 2610  of a fully executed escrow agreement and reservation agreement
 2611  form properly filed with the Division of Florida Condominiums,
 2612  Homeowners’ Associations, Timeshares, and Mobile Homes. Each
 2613  filing of a proposed reservation program shall be accompanied by
 2614  a filing fee of $250. Reservations may shall not be taken on a
 2615  proposed cooperative unless the developer has an ownership,
 2616  leasehold, or contractual interest in the land upon which the
 2617  cooperative is to be developed. The division shall notify the
 2618  developer within 20 days of receipt of the reservation filing of
 2619  any deficiencies contained therein. Such notification does shall
 2620  not preclude the determination of reservation filing
 2621  deficiencies at a later date, nor shall it relieve the developer
 2622  of any responsibility under the law. The escrow agreement and
 2623  the reservation agreement form shall include a statement of the
 2624  right of the prospective purchaser to an immediate unqualified
 2625  refund of the reservation deposit moneys upon written request to
 2626  the escrow agent by the prospective purchaser or the developer.
 2627         Section 38. Section 719.504, Florida Statutes, is amended
 2628  to read:
 2629         719.504 Prospectus or offering circular.—Every developer of
 2630  a residential cooperative which contains more than 20
 2631  residential units, or which is part of a group of residential
 2632  cooperatives which will be served by property to be used in
 2633  common by unit owners of more than 20 residential units, shall
 2634  prepare a prospectus or offering circular and file it with the
 2635  Division of Florida Condominiums, Homeowners’ Associations,
 2636  Timeshares, and Mobile Homes before prior to entering into an
 2637  enforceable contract of purchase and sale of any unit or lease
 2638  of a unit for more than 5 years and shall furnish a copy of the
 2639  prospectus or offering circular to each buyer. In addition to
 2640  the prospectus or offering circular, each buyer shall be
 2641  furnished a separate page entitled “Frequently Asked Questions
 2642  and Answers,” which must be in accordance with a format approved
 2643  by the division. This page must, in readable language: inform
 2644  prospective purchasers regarding their voting rights and unit
 2645  use restrictions, including restrictions on the leasing of a
 2646  unit; indicate whether and in what amount the unit owners or the
 2647  association is obligated to pay rent or land use fees for
 2648  recreational or other commonly used facilities; contain a
 2649  statement identifying that amount of assessment which, pursuant
 2650  to the budget, would be levied upon each unit type, exclusive of
 2651  any special assessments, and which identifies the basis upon
 2652  which assessments are levied, whether monthly, quarterly, or
 2653  otherwise; state and identify any court cases in which the
 2654  association is currently a party of record in which the
 2655  association may face liability in excess of $100,000; and state
 2656  whether membership in a recreational facilities association is
 2657  mandatory and, if so, identify the fees currently charged per
 2658  unit type. The division shall by rule require such other
 2659  disclosure as in its judgment will assist prospective
 2660  purchasers. The prospectus or offering circular may include more
 2661  than one cooperative, although not all such units are being
 2662  offered for sale as of the date of the prospectus or offering
 2663  circular. The prospectus or offering circular must contain the
 2664  following information:
 2665         (1) The front cover or the first page must contain only:
 2666         (a) The name of the cooperative.
 2667         (b) The following statements in conspicuous type:
 2668         1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
 2669  MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT.
 2670         2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
 2671  NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
 2672  ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
 2673  MATERIALS.
 2674         3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
 2675  STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
 2676  PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
 2677  REPRESENTATIONS.
 2678         (2) Summary: The next page must contain all statements
 2679  required to be in conspicuous type in the prospectus or offering
 2680  circular.
 2681         (3) A separate index of the contents and exhibits of the
 2682  prospectus.
 2683         (4) Beginning on the first page of the text (not including
 2684  the summary and index), a description of the cooperative,
 2685  including, but not limited to, the following information:
 2686         (a) Its name and location.
 2687         (b) A description of the cooperative property, including,
 2688  without limitation:
 2689         1. The number of buildings, the number of units in each
 2690  building, the number of bathrooms and bedrooms in each unit, and
 2691  the total number of units, if the cooperative is not a phase
 2692  cooperative; or, if the cooperative is a phase cooperative, the
 2693  maximum number of buildings that may be contained within the
 2694  cooperative, the minimum and maximum number of units in each
 2695  building, the minimum and maximum number of bathrooms and
 2696  bedrooms that may be contained in each unit, and the maximum
 2697  number of units that may be contained within the cooperative.
 2698         2. The page in the cooperative documents where a copy of
 2699  the survey and plot plan of the cooperative is located.
 2700         3. The estimated latest date of completion of constructing,
 2701  finishing, and equipping. In lieu of a date, a statement that
 2702  the estimated date of completion of the cooperative is in the
 2703  purchase agreement and a reference to the article or paragraph
 2704  containing that information.
 2705         (c) The maximum number of units that will use facilities in
 2706  common with the cooperative. If the maximum number of units will
 2707  vary, a description of the basis for variation and the minimum
 2708  amount of dollars per unit to be spent for additional
 2709  recreational facilities or enlargement of such facilities. If
 2710  the addition or enlargement of facilities will result in a
 2711  material increase of a unit owner’s maintenance expense or
 2712  rental expense, if any, the maximum increase and limitations
 2713  thereon shall be stated.
 2714         (5)(a) A statement in conspicuous type describing whether
 2715  the cooperative is created and being sold as fee simple
 2716  interests or as leasehold interests. If the cooperative is
 2717  created or being sold on a leasehold, the location of the lease
 2718  in the disclosure materials shall be stated.
 2719         (b) If timeshare estates are or may be created with respect
 2720  to any unit in the cooperative, a statement in conspicuous type
 2721  stating that timeshare estates are created and being sold in
 2722  such specified units in the cooperative.
 2723         (6) A description of the recreational and other common
 2724  areas that will be used only by unit owners of the cooperative,
 2725  including, but not limited to, the following:
 2726         (a) Each room and its intended purposes, location,
 2727  approximate floor area, and capacity in numbers of people.
 2728         (b) Each swimming pool, as to its general location,
 2729  approximate size and depths, approximate deck size and capacity,
 2730  and whether heated.
 2731         (c) Additional facilities, as to the number of each
 2732  facility, its approximate location, approximate size, and
 2733  approximate capacity.
 2734         (d) A general description of the items of personal property
 2735  and the approximate number of each item of personal property
 2736  that the developer is committing to furnish for each room or
 2737  other facility or, in the alternative, a representation as to
 2738  the minimum amount of expenditure that will be made to purchase
 2739  the personal property for the facility.
 2740         (e) The estimated date when each room or other facility
 2741  will be available for use by the unit owners.
 2742         (f)1. An identification of each room or other facility to
 2743  be used by unit owners that will not be owned by the unit owners
 2744  or the association;
 2745         2. A reference to the location in the disclosure materials
 2746  of the lease or other agreements providing for the use of those
 2747  facilities; and
 2748         3. A description of the terms of the lease or other
 2749  agreements, including the length of the term; the rent payable,
 2750  directly or indirectly, by each unit owner, and the total rent
 2751  payable to the lessor, stated in monthly and annual amounts for
 2752  the entire term of the lease; and a description of any option to
 2753  purchase the property leased under any such lease, including the
 2754  time the option may be exercised, the purchase price or how it
 2755  is to be determined, the manner of payment, and whether the
 2756  option may be exercised for a unit owner’s share or only as to
 2757  the entire leased property.
 2758         (g) A statement as to whether the developer may provide
 2759  additional facilities not described above, their general
 2760  locations and types, improvements or changes that may be made,
 2761  the approximate dollar amount to be expended, and the maximum
 2762  additional common expense or cost to the individual unit owners
 2763  that may be charged during the first annual period of operation
 2764  of the modified or added facilities.
 2765  
 2766  Descriptions as to locations, areas, capacities, numbers,
 2767  volumes, or sizes may be stated as approximations or minimums.
 2768         (7) A description of the recreational and other facilities
 2769  that will be used in common with other cooperatives, community
 2770  associations, or planned developments which require the payment
 2771  of the maintenance and expenses of such facilities, directly or
 2772  indirectly, by the unit owners. The description shall include,
 2773  but not be limited to, the following:
 2774         (a) Each building and facility committed to be built.
 2775         (b) Facilities not committed to be built except under
 2776  certain conditions, and a statement of those conditions or
 2777  contingencies.
 2778         (c) As to each facility committed to be built, or which
 2779  will be committed to be built upon the happening of one of the
 2780  conditions in paragraph (b), a statement of whether it will be
 2781  owned by the unit owners having the use thereof or by an
 2782  association or other entity which will be controlled by them, or
 2783  others, and the location in the exhibits of the lease or other
 2784  document providing for use of those facilities.
 2785         (d) The year in which each facility will be available for
 2786  use by the unit owners or, in the alternative, the maximum
 2787  number of unit owners in the project at the time each of all of
 2788  the facilities is committed to be completed.
 2789         (e) A general description of the items of personal
 2790  property, and the approximate number of each item of personal
 2791  property, that the developer is committing to furnish for each
 2792  room or other facility or, in the alternative, a representation
 2793  as to the minimum amount of expenditure that will be made to
 2794  purchase the personal property for the facility.
 2795         (f) If there are leases, a description thereof, including
 2796  the length of the term, the rent payable, and a description of
 2797  any option to purchase.
 2798  
 2799  Descriptions shall include location, areas, capacities, numbers,
 2800  volumes, or sizes and may be stated as approximations or
 2801  minimums.
 2802         (8) Recreation lease or associated club membership:
 2803         (a) If any recreational facilities or other common areas
 2804  offered by the developer and available to, or to be used by,
 2805  unit owners are to be leased or have club membership associated,
 2806  the following statement in conspicuous type shall be included:
 2807  THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
 2808  COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
 2809  COOPERATIVE. There shall be a reference to the location in the
 2810  disclosure materials where the recreation lease or club
 2811  membership is described in detail.
 2812         (b) If it is mandatory that unit owners pay a fee, rent,
 2813  dues, or other charges under a recreational facilities lease or
 2814  club membership for the use of facilities, there shall be in
 2815  conspicuous type the applicable statement:
 2816         1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
 2817  MANDATORY FOR UNIT OWNERS; or
 2818         2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
 2819  TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
 2820         3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS
 2821  AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,
 2822  RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE
 2823  OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
 2824         4. A similar statement of the nature of the organization or
 2825  manner in which the use rights are created, and that unit owners
 2826  are required to pay.
 2827  
 2828  Immediately following the applicable statement, the location in
 2829  the disclosure materials where the development is described in
 2830  detail shall be stated.
 2831         (c) If the developer, or any other person other than the
 2832  unit owners and other persons having use rights in the
 2833  facilities, reserves, or is entitled to receive, any rent, fee,
 2834  or other payment for the use of the facilities, then there shall
 2835  be the following statement in conspicuous type: THE UNIT OWNERS
 2836  OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
 2837  RECREATIONAL OR OTHER COMMON AREAS. Immediately following this
 2838  statement, the location in the disclosure materials where the
 2839  rent or land use fees are described in detail shall be stated.
 2840         (d) If, in any recreation format, whether leasehold, club,
 2841  or other, any person other than the association has the right to
 2842  a lien on the units to secure the payment of assessments, rent,
 2843  or other exactions, there shall appear a statement in
 2844  conspicuous type in substantially the following form:
 2845         1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
 2846  SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
 2847  RECREATION LEASE. THE UNIT OWNER’S FAILURE TO MAKE THESE
 2848  PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
 2849         2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
 2850  SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
 2851  FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
 2852  OR COMMONLY USED AREAS. THE UNIT OWNER’S FAILURE TO MAKE THESE
 2853  PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
 2854  
 2855  Immediately following the applicable statement, the location in
 2856  the disclosure materials where the lien or lien right is
 2857  described in detail shall be stated.
 2858         (9) If the developer or any other person has the right to
 2859  increase or add to the recreational facilities at any time after
 2860  the establishment of the cooperative whose unit owners have use
 2861  rights therein, without the consent of the unit owners or
 2862  associations being required, there shall appear a statement in
 2863  conspicuous type in substantially the following form:
 2864  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
 2865  OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
 2866  statement, the location in the disclosure materials where such
 2867  reserved rights are described shall be stated.
 2868         (10) A statement of whether the developer’s plan includes a
 2869  program of leasing units rather than selling them, or leasing
 2870  units and selling them subject to such leases. If so, there
 2871  shall be a description of the plan, including the number and
 2872  identification of the units and the provisions and term of the
 2873  proposed leases, and a statement in boldfaced type that: THE
 2874  UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
 2875         (11) The arrangements for management of the association and
 2876  maintenance and operation of the cooperative property and of
 2877  other property that will serve the unit owners of the
 2878  cooperative property, and a description of the management
 2879  contract and all other contracts for these purposes having a
 2880  term in excess of 1 year, including the following:
 2881         (a) The names of contracting parties.
 2882         (b) The term of the contract.
 2883         (c) The nature of the services included.
 2884         (d) The compensation, stated on a monthly and annual basis,
 2885  and provisions for increases in the compensation.
 2886         (e) A reference to the volumes and pages of the cooperative
 2887  documents and of the exhibits containing copies of such
 2888  contracts.
 2889  
 2890  Copies of all described contracts shall be attached as exhibits.
 2891  If there is a contract for the management of the cooperative
 2892  property, then a statement in conspicuous type in substantially
 2893  the following form shall appear, identifying the proposed or
 2894  existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
 2895  THE MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF THE
 2896  CONTRACT MANAGER). Immediately following this statement, the
 2897  location in the disclosure materials of the contract for
 2898  management of the cooperative property shall be stated.
 2899         (12) If the developer or any other person or persons other
 2900  than the unit owners has the right to retain control of the
 2901  board of administration of the association for a period of time
 2902  which can exceed 1 year after the closing of the sale of a
 2903  majority of the units in that cooperative to persons other than
 2904  successors or alternate developers, then a statement in
 2905  conspicuous type in substantially the following form shall be
 2906  included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
 2907  RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
 2908  HAVE BEEN SOLD. Immediately following this statement, the
 2909  location in the disclosure materials where this right to control
 2910  is described in detail shall be stated.
 2911         (13) If there are any restrictions upon the sale, transfer,
 2912  conveyance, or leasing of a unit, then a statement in
 2913  conspicuous type in substantially the following form shall be
 2914  included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
 2915  CONTROLLED. Immediately following this statement, the location
 2916  in the disclosure materials where the restriction, limitation,
 2917  or control on the sale, lease, or transfer of units is described
 2918  in detail shall be stated.
 2919         (14) If the cooperative is part of a phase project, the
 2920  following shall be stated:
 2921         (a) A statement in conspicuous type in substantially the
 2922  following form shall be included: THIS IS A PHASE COOPERATIVE.
 2923  ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE.
 2924  Immediately following this statement, the location in the
 2925  disclosure materials where the phasing is described shall be
 2926  stated.
 2927         (b) A summary of the provisions of the declaration
 2928  providing for the phasing.
 2929         (c) A statement as to whether or not residential buildings
 2930  and units which are added to the cooperative may be
 2931  substantially different from the residential buildings and units
 2932  originally in the cooperative, and, if the added residential
 2933  buildings and units may be substantially different, there shall
 2934  be a general description of the extent to which such added
 2935  residential buildings and units may differ, and a statement in
 2936  conspicuous type in substantially the following form shall be
 2937  included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE
 2938  MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
 2939  UNITS IN THE COOPERATIVE. Immediately following this statement,
 2940  the location in the disclosure materials where the extent to
 2941  which added residential buildings and units may substantially
 2942  differ is described shall be stated.
 2943         (d) A statement of the maximum number of buildings
 2944  containing units, the maximum and minimum number of units in
 2945  each building, the maximum number of units, and the minimum and
 2946  maximum square footage of the units that may be contained within
 2947  each parcel of land which may be added to the cooperative.
 2948         (15) If the cooperative is created by conversion of
 2949  existing improvements, the following information shall be
 2950  stated:
 2951         (a) The information required by s. 719.616.
 2952         (b) A caveat that there are no express warranties unless
 2953  they are stated in writing by the developer.
 2954         (16) A summary of the restrictions, if any, to be imposed
 2955  on units concerning the use of any of the cooperative property,
 2956  including statements as to whether there are restrictions upon
 2957  children and pets, and reference to the volumes and pages of the
 2958  cooperative documents where such restrictions are found, or if
 2959  such restrictions are contained elsewhere, then a copy of the
 2960  documents containing the restrictions shall be attached as an
 2961  exhibit.
 2962         (17) If there is any land that is offered by the developer
 2963  for use by the unit owners and that is neither owned by them nor
 2964  leased to them, the association, or any entity controlled by
 2965  unit owners and other persons having the use rights to such
 2966  land, a statement shall be made as to how such land will serve
 2967  the cooperative. If any part of such land will serve the
 2968  cooperative, the statement shall describe the land and the
 2969  nature and term of service, and the cooperative documents or
 2970  other instrument creating such servitude shall be included as an
 2971  exhibit.
 2972         (18) The manner in which utility and other services,
 2973  including, but not limited to, sewage and waste disposal, water
 2974  supply, and storm drainage, will be provided and the person or
 2975  entity furnishing them.
 2976         (19) An explanation of the manner in which the
 2977  apportionment of common expenses and ownership of the common
 2978  areas have been determined.
 2979         (20) An estimated operating budget for the cooperative and
 2980  the association, and a schedule of the unit owner’s expenses
 2981  shall be attached as an exhibit and shall contain the following
 2982  information:
 2983         (a) The estimated monthly and annual expenses of the
 2984  cooperative and the association that are collected from unit
 2985  owners by assessments.
 2986         (b) The estimated monthly and annual expenses of each unit
 2987  owner for a unit, other than assessments payable to the
 2988  association, payable by the unit owner to persons or entities
 2989  other than the association, and the total estimated monthly and
 2990  annual expense. There may be excluded from this estimate
 2991  expenses that are personal to unit owners, which are not
 2992  uniformly incurred by all unit owners, or which are not provided
 2993  for or contemplated by the cooperative documents, including, but
 2994  not limited to, the costs of private telephone; maintenance of
 2995  the interior of cooperative units, which is not the obligation
 2996  of the association; maid or janitorial services privately
 2997  contracted for by the unit owners; utility bills billed directly
 2998  to each unit owner for utility services to his or her unit;
 2999  insurance premiums other than those incurred for policies
 3000  obtained by the cooperative; and similar personal expenses of
 3001  the unit owner. A unit owner’s estimated payments for
 3002  assessments shall also be stated in the estimated amounts for
 3003  the times when they will be due.
 3004         (c) The estimated items of expenses of the cooperative and
 3005  the association, except as excluded under paragraph (b),
 3006  including, but not limited to, the following items, which shall
 3007  be stated as an association expense collectible by assessments
 3008  or as unit owners’ expenses payable to persons other than the
 3009  association:
 3010         1. Expenses for the association and cooperative:
 3011         a. Administration of the association.
 3012         b. Management fees.
 3013         c. Maintenance.
 3014         d. Rent for recreational and other commonly used areas.
 3015         e. Taxes upon association property.
 3016         f. Taxes upon leased areas.
 3017         g. Insurance.
 3018         h. Security provisions.
 3019         i. Other expenses.
 3020         j. Operating capital.
 3021         k. Reserves.
 3022         l. Fee payable to the division.
 3023         2. Expenses for a unit owner:
 3024         a. Rent for the unit, if subject to a lease.
 3025         b. Rent payable by the unit owner directly to the lessor or
 3026  agent under any recreational lease or lease for the use of
 3027  commonly used areas, which use and payment are a mandatory
 3028  condition of ownership and are not included in the common
 3029  expense or assessments for common maintenance paid by the unit
 3030  owners to the association.
 3031         (d) The following statement in conspicuous type: THE BUDGET
 3032  CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN
 3033  ACCORDANCE WITH THE COOPERATIVE ACT AND IS A GOOD FAITH ESTIMATE
 3034  ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON
 3035  FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
 3036  ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH
 3037  CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN
 3038  THE OFFERING.
 3039         (e) Each budget for an association prepared by a developer
 3040  consistent with this subsection shall be prepared in good faith
 3041  and shall reflect accurate estimated amounts for the required
 3042  items in paragraph (c) at the time of the filing of the offering
 3043  circular with the division, and subsequent increased amounts of
 3044  any item included in the association’s estimated budget that are
 3045  beyond the control of the developer may shall not be considered
 3046  an amendment that would give rise to rescission rights set forth
 3047  in s. 719.503(1)(a) or (b), nor shall such increases modify,
 3048  void, or otherwise affect any guarantee of the developer
 3049  contained in the offering circular or any purchase contract. It
 3050  is the intent of this paragraph to clarify existing law.
 3051         (f) The estimated amounts shall be stated for a period of
 3052  at least 12 months and may distinguish between the period before
 3053  prior to the time unit owners other than the developer elect a
 3054  majority of the board of administration and the period after
 3055  that date.
 3056         (21) A schedule of estimated closing expenses to be paid by
 3057  a buyer or lessee of a unit and a statement of whether title
 3058  opinion or title insurance policy is available to the buyer and,
 3059  if so, at whose expense.
 3060         (22) The identity of the developer and the chief operating
 3061  officer or principal directing the creation and sale of the
 3062  cooperative and a statement of its and his or her experience in
 3063  this field.
 3064         (23) Copies of the following, to the extent they are
 3065  applicable, shall be included as exhibits:
 3066         (a) The cooperative documents, or the proposed cooperative
 3067  documents if the documents have not been recorded.
 3068         (b) The articles of incorporation creating the association.
 3069         (c) The bylaws of the association.
 3070         (d) The ground lease or other underlying lease of the
 3071  cooperative.
 3072         (e) The management agreement and all maintenance and other
 3073  contracts for management of the association and operation of the
 3074  cooperative and facilities used by the unit owners having a
 3075  service term in excess of 1 year.
 3076         (f) The estimated operating budget for the cooperative and
 3077  the required schedule of unit owners’ expenses.
 3078         (g) A copy of the floor plan of the unit and the plot plan
 3079  showing the location of the residential buildings and the
 3080  recreation and other common areas.
 3081         (h) The lease of recreational and other facilities that
 3082  will be used only by unit owners of the subject cooperative.
 3083         (i) The lease of facilities used by owners and others.
 3084         (j) The form of unit lease, if the offer is of a leasehold.
 3085         (k) A declaration of servitude of properties serving the
 3086  cooperative but not owned by unit owners or leased to them or
 3087  the association.
 3088         (l) The statement of condition of the existing building or
 3089  buildings, if the offering is of units in an operation being
 3090  converted to cooperative ownership.
 3091         (m) The statement of inspection for termite damage and
 3092  treatment of the existing improvements, if the cooperative is a
 3093  conversion.
 3094         (n) The form of agreement for sale or lease of units.
 3095         (o) A copy of the agreement for escrow of payments made to
 3096  the developer before prior to closing.
 3097         (p) A copy of the documents containing any restrictions on
 3098  use of the property required by subsection (16).
 3099         (24) Any prospectus or offering circular complying with the
 3100  provisions of former ss. 711.69 and 711.802 may continue to be
 3101  used without amendment, or may be amended to comply with this
 3102  chapter.
 3103         (25) A brief narrative description of the location and
 3104  effect of all existing and intended easements located or to be
 3105  located on the cooperative property other than those in the
 3106  declaration.
 3107         (26) If the developer is required by state or local
 3108  authorities to obtain acceptance or approval of any dock or
 3109  marina facility intended to serve the cooperative, a copy of
 3110  such acceptance or approval acquired by the time of filing with
 3111  the division pursuant to s. 719.502 or a statement that such
 3112  acceptance has not been acquired or received.
 3113         (27) Evidence demonstrating that the developer has an
 3114  ownership, leasehold, or contractual interest in the land upon
 3115  which the cooperative is to be developed.
 3116         Section 39. Section 719.508, Florida Statutes, is amended
 3117  to read:
 3118         719.508 Regulation by Division of Hotels and Restaurants.
 3119  In addition to the authority, regulation, or control exercised
 3120  by the Division of Florida Condominiums, Homeowners’
 3121  Associations, Timeshares, and Mobile Homes pursuant to this act
 3122  with respect to cooperatives, buildings included in a
 3123  cooperative property shall be subject to the authority,
 3124  regulation, or control of the Division of Hotels and Restaurants
 3125  of the Department of Business and Professional Regulation, to
 3126  the extent provided in chapters 399 and 509.
 3127         Section 40. Paragraph (a) of subsection (2) of section
 3128  719.608, Florida Statutes, is amended to read:
 3129         719.608 Notice of intended conversion; time of delivery;
 3130  content.—
 3131         (2)(a) Each notice of intended conversion shall be dated
 3132  and in writing. The notice shall contain the following
 3133  statement, with the phrases of the following statement which
 3134  appear in upper case printed in conspicuous type:
 3135  
 3136         These apartments are being converted to cooperative by
 3137  ...(name of developer)..., the developer.
 3138         1. YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
 3139  YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
 3140  AGREEMENT AS FOLLOWS:
 3141         a. If you have continuously been a resident of these
 3142  apartments during the last 180 days and your rental agreement
 3143  expires during the next 270 days, you may extend your rental
 3144  agreement for up to 270 days after the date of this notice.
 3145         b. If you have not been a continuous resident of these
 3146  apartments for the last 180 days and your rental agreement
 3147  expires during the next 180 days, you may extend your rental
 3148  agreement for up to 180 days after the date of this notice.
 3149         c. IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
 3150  MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
 3151  DATE OF THIS NOTICE.
 3152         2. IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
 3153  you may extend your rental agreement for up to 45 days after the
 3154  date of this notice while you decide whether to extend your
 3155  rental agreement as explained above. To do so, you must notify
 3156  the developer in writing. You will then have the full 45 days to
 3157  decide whether to extend your rental agreement as explained
 3158  above.
 3159         3. During the extension of your rental agreement you will
 3160  be charged the same rent that you are now paying.
 3161         4. YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
 3162  OF THE RENTAL AGREEMENT AS FOLLOWS:
 3163         a. If your rental agreement began or was extended or
 3164  renewed after May 1, 1980, and your rental agreement, including
 3165  extensions and renewals, has an unexpired term of 180 days or
 3166  less, you may cancel your rental agreement upon 30 days’ written
 3167  notice and move. Also, upon 30 days’ written notice, you may
 3168  cancel any extension of the rental agreement.
 3169         b. If your rental agreement was not begun or was not
 3170  extended or renewed after May 1, 1980, you may not cancel the
 3171  rental agreement without the consent of the developer. If your
 3172  rental agreement, including extensions and renewals, has an
 3173  unexpired term of 180 days or less, you may, however, upon 30
 3174  days’ written notice cancel any extension of the rental
 3175  agreement.
 3176         5. All notices must be given in writing and sent by mail,
 3177  return receipt requested, or delivered in person to the
 3178  developer at this address: ...(name and address of
 3179  developer)....
 3180         6. If you have continuously been a resident of these
 3181  apartments during the last 180 days:
 3182         a. You have the right to purchase your apartment and will
 3183  have 45 days to decide whether to purchase. If you do not buy
 3184  the unit at that price and the unit is later offered at a lower
 3185  price, you will have the opportunity to buy the unit at the
 3186  lower price. However, in all events your right to purchase the
 3187  unit ends when the rental agreement or any extension of the
 3188  rental agreement ends or when you waive this right in writing.
 3189         b. Within 90 days you will be provided purchase information
 3190  relating to your apartment, including the price of your unit and
 3191  the condition of the building. If you do not receive this
 3192  information within 90 days, your rental agreement and any
 3193  extension will be extended 1 day for each day over 90 days until
 3194  you are given the purchase information. If you do not want this
 3195  rental agreement extension, you must notify the developer in
 3196  writing.
 3197         7. If you have any questions regarding this conversion or
 3198  the Cooperative Act, you may contact the developer or the state
 3199  agency which regulates cooperatives: The Division of Florida
 3200  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 3201  Homes, ...(Tallahassee address and telephone number of
 3202  division)....
 3203         Section 41. Subsection (11) of section 721.05, Florida
 3204  Statutes, is amended to read:
 3205         721.05 Definitions.—As used in this chapter, the term:
 3206         (11) “Division” means the Division of Florida Condominiums,
 3207  Homeowners’ Associations, Timeshares, and Mobile Homes of the
 3208  Department of Business and Professional Regulation.
 3209         Section 42. Paragraph (d) of subsection (2) of section
 3210  721.07, Florida Statutes, is amended to read:
 3211         721.07 Public offering statement.—Prior to offering any
 3212  timeshare plan, the developer must submit a filed public
 3213  offering statement to the division for approval as prescribed by
 3214  s. 721.03, s. 721.55, or this section. Until the division
 3215  approves such filing, any contract regarding the sale of that
 3216  timeshare plan is subject to cancellation by the purchaser
 3217  pursuant to s. 721.10.
 3218         (2)
 3219         (d) A developer shall have the authority to deliver to
 3220  purchasers any purchaser public offering statement that is not
 3221  yet approved by the division, provided that the following shall
 3222  apply:
 3223         1. At the time the developer delivers an unapproved
 3224  purchaser public offering statement to a purchaser pursuant to
 3225  this paragraph, the developer shall deliver a fully completed
 3226  and executed copy of the purchase contract required by s. 721.06
 3227  that contains the following statement in conspicuous type in
 3228  substantially the following form which shall replace the
 3229  statements required by s. 721.06(1)(g):
 3230  
 3231  The developer is delivering to you a public offering statement
 3232  that has been filed with but not yet approved by the Division of
 3233  Florida Condominiums, Homeowners’ Associations, Timeshares, and
 3234  Mobile Homes. Any revisions to the unapproved public offering
 3235  statement you have received must be delivered to you, but only
 3236  if the revisions materially alter or modify the offering in a
 3237  manner adverse to you. After the division approves the public
 3238  offering statement, you will receive notice of the approval from
 3239  the developer and the required revisions, if any.
 3240  
 3241  Your statutory right to cancel this transaction without any
 3242  penalty or obligation expires 10 calendar days after the date
 3243  you signed your purchase contract or the date on which you
 3244  receive the last of all documents required to be given to you
 3245  pursuant to section 721.07(6), Florida Statutes, or 10 calendar
 3246  days after you receive revisions required to be delivered to
 3247  you, if any, whichever is later. If you decide to cancel this
 3248  contract, you must notify the seller in writing of your intent
 3249  to cancel. Your notice of cancellation shall be effective upon
 3250  the date sent and shall be sent to ...(Name of Seller)... at
 3251  ...(Address of Seller).... Any attempt to obtain a waiver of
 3252  your cancellation right is void and of no effect. While you may
 3253  execute all closing documents in advance, the closing, as
 3254  evidenced by delivery of the deed or other document, before
 3255  expiration of your 10-day cancellation period, is prohibited.
 3256  
 3257         2. After receipt of approval from the division and before
 3258  prior to closing, if any revisions made to the documents
 3259  contained in the purchaser public offering statement materially
 3260  alter or modify the offering in a manner adverse to a purchaser,
 3261  the developer shall send the purchaser such revisions, together
 3262  with a notice containing a statement in conspicuous type in
 3263  substantially the following form:
 3264  
 3265  The unapproved public offering statement previously delivered to
 3266  you, together with the enclosed revisions, has been approved by
 3267  the Division of Florida Condominiums, Homeowners’ Associations,
 3268  Timeshares, and Mobile Homes. Accordingly, your cancellation
 3269  right expires 10 calendar days after you sign your purchase
 3270  contract or 10 calendar days after you receive these revisions,
 3271  whichever is later. If you have any questions regarding your
 3272  cancellation rights, you may contact the division at [insert
 3273  division’s current address].
 3274  
 3275         3. After receipt of approval from the division and before
 3276  prior to closing, if no revisions have been made to the
 3277  documents contained in the unapproved purchaser public offering
 3278  statement, or if such revisions do not materially alter or
 3279  modify the offering in a manner adverse to a purchaser, the
 3280  developer shall send the purchaser a notice containing a
 3281  statement in conspicuous type in substantially the following
 3282  form:
 3283  
 3284  The unapproved public offering statement previously delivered to
 3285  you has been approved by the Division of Florida Condominiums,
 3286  Homeowners’ Associations, Timeshares, and Mobile Homes.
 3287  Revisions made to the unapproved public offering statement, if
 3288  any, are not required to be delivered to you or are not deemed
 3289  by the developer, in its opinion, to materially alter or modify
 3290  the offering in a manner that is adverse to you. Accordingly,
 3291  your cancellation right expired 10 days after you signed your
 3292  purchase contract. A complete copy of the approved public
 3293  offering statement is available through the managing entity for
 3294  inspection as part of the books and records of the plan. If you
 3295  have any questions regarding your cancellation rights, you may
 3296  contact the division at [insert division’s current address].
 3297         Section 43. Subsection (8) of section 721.08, Florida
 3298  Statutes, is amended to read:
 3299         721.08 Escrow accounts; nondisturbance instruments;
 3300  alternate security arrangements; transfer of legal title.—
 3301         (8) An escrow agent holding escrowed funds pursuant to this
 3302  chapter that have not been claimed for a period of 5 years after
 3303  the date of deposit shall make at least one reasonable attempt
 3304  to deliver such unclaimed funds to the purchaser who submitted
 3305  such funds to escrow. In making such attempt, an escrow agent is
 3306  entitled to rely on a purchaser’s last known address as set
 3307  forth in the books and records of the escrow agent and is not
 3308  required to conduct any further search for the purchaser. If an
 3309  escrow agent’s attempt to deliver unclaimed funds to any
 3310  purchaser is unsuccessful, the escrow agent may deliver such
 3311  unclaimed funds to the division and the division shall deposit
 3312  such unclaimed funds in the Division of Florida Condominiums,
 3313  Homeowners’ Associations, Timeshares, and Mobile Homes Trust
 3314  Fund, 30 days after giving notice in a publication of general
 3315  circulation in the county in which the timeshare property
 3316  containing the purchaser’s timeshare interest is located. The
 3317  purchaser may claim the same at any time before prior to the
 3318  delivery of such funds to the division. After delivery of such
 3319  funds to the division, the purchaser shall have no more rights
 3320  to the unclaimed funds. The escrow agent is shall not be liable
 3321  for any claims from any party arising out of the escrow agent’s
 3322  delivery of the unclaimed funds to the division pursuant to this
 3323  section.
 3324         Section 44. Paragraph (e) of subsection (5) of section
 3325  721.26, Florida Statutes, is amended to read:
 3326         721.26 Regulation by division.—The division has the power
 3327  to enforce and ensure compliance with this chapter, except for
 3328  parts III and IV, using the powers provided in this chapter, as
 3329  well as the powers prescribed in chapters 718 and 719. In
 3330  performing its duties, the division shall have the following
 3331  powers and duties:
 3332         (5) Notwithstanding any remedies available to purchasers,
 3333  if the division has reasonable cause to believe that a violation
 3334  of this chapter, or of any division rule adopted or order issued
 3335  pursuant to this chapter, has occurred, the division may
 3336  institute enforcement proceedings in its own name against any
 3337  regulated party, as such term is defined in this subsection:
 3338         (e)1. The division may impose a penalty against any
 3339  regulated party for a violation of this chapter or any rule
 3340  adopted thereunder. A penalty may be imposed on the basis of
 3341  each day of continuing violation, but in no event may the
 3342  penalty for any offense exceed $10,000. All accounts collected
 3343  shall be deposited with the Chief Financial Officer to the
 3344  credit of the Division of Florida Condominiums, Homeowners’
 3345  Associations, Timeshares, and Mobile Homes Trust Fund.
 3346         2.a. If a regulated party fails to pay a penalty, the
 3347  division shall thereupon issue an order directing that such
 3348  regulated party cease and desist from further operation until
 3349  such time as the penalty is paid; or the division may pursue
 3350  enforcement of the penalty in a court of competent jurisdiction.
 3351         b. If an owners’ association or managing entity fails to
 3352  pay a civil penalty, the division may pursue enforcement in a
 3353  court of competent jurisdiction.
 3354         Section 45. Section 721.28, Florida Statutes, is amended to
 3355  read:
 3356         721.28 Division of Florida Condominiums, Homeowners’
 3357  Associations, Timeshares, and Mobile Homes Trust Fund.—All funds
 3358  collected by the division and any amounts paid as fees or
 3359  penalties under this chapter shall be deposited in the State
 3360  Treasury to the credit of the Division of Florida Condominiums,
 3361  Homeowners’ Associations, Timeshares, and Mobile Homes Trust
 3362  Fund created by s. 718.509.
 3363         Section 46. Paragraph (c) of subsection (1) of section
 3364  721.301, Florida Statutes, is amended to read:
 3365         721.301 Florida Timesharing, Vacation Club, and Hospitality
 3366  Program.—
 3367         (1)
 3368         (c) The director may designate funds from the Division of
 3369  Florida Condominiums, Homeowners’ Associations, Timeshares, and
 3370  Mobile Homes Trust Fund, not to exceed $50,000 annually, to
 3371  support the projects and proposals undertaken pursuant to
 3372  paragraph (b). All state trust funds to be expended pursuant to
 3373  this section must be matched equally with private moneys and
 3374  shall comprise no more than half of the total moneys expended
 3375  annually.
 3376         Section 47. Subsection (2) and paragraph (a) of subsection
 3377  (7) of section 723.003, Florida Statutes, are amended to read:
 3378         723.003 Definitions.—As used in this chapter, the term:
 3379         (2) “Division” means the Division of Florida Condominiums,
 3380  Homeowners’ Associations, Timeshares, and Mobile Homes of the
 3381  Department of Business and Professional Regulation.
 3382         (7)(a) “Mediation” means a process whereby a mediator
 3383  appointed by the Division of Florida Condominiums, Homeowners’
 3384  Associations, Timeshares, and Mobile Homes, or mutually selected
 3385  by the parties, acts to encourage and facilitate the resolution
 3386  of a dispute. It is an informal and nonadversarial process with
 3387  the objective of helping the disputing parties reach a mutually
 3388  acceptable agreement.
 3389         Section 48. Paragraph (e) of subsection (5) of section
 3390  723.006, Florida Statutes, is amended to read:
 3391         723.006 Powers and duties of division.—In performing its
 3392  duties, the division has the following powers and duties:
 3393         (5) Notwithstanding any remedies available to mobile home
 3394  owners, mobile home park owners, and homeowners’ associations,
 3395  if the division has reasonable cause to believe that a violation
 3396  of any provision of this chapter or related rule has occurred,
 3397  the division may institute enforcement proceedings in its own
 3398  name against a developer, mobile home park owner, or homeowners’
 3399  association, or its assignee or agent, as follows:
 3400         (e)1. The division may impose a civil penalty against a
 3401  mobile home park owner or homeowners’ association, or its
 3402  assignee or agent, for any violation of this chapter, a properly
 3403  adopted park rule or regulation, or a rule adopted pursuant
 3404  hereto. A penalty may be imposed on the basis of each separate
 3405  violation and, if the violation is a continuing one, for each
 3406  day of continuing violation, but in no event may the penalty for
 3407  each separate violation or for each day of continuing violation
 3408  exceed $5,000. All amounts collected shall be deposited with the
 3409  Chief Financial Officer to the credit of the Division of Florida
 3410  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 3411  Homes Trust Fund.
 3412         2. If a violator fails to pay the civil penalty, the
 3413  division shall thereupon issue an order directing that such
 3414  violator cease and desist from further violation until such time
 3415  as the civil penalty is paid or may pursue enforcement of the
 3416  penalty in a court of competent jurisdiction. If a homeowners’
 3417  association fails to pay the civil penalty, the division shall
 3418  thereupon pursue enforcement in a court of competent
 3419  jurisdiction, and the order imposing the civil penalty or the
 3420  cease and desist order does shall not become effective until 20
 3421  days after the date of such order. Any action commenced by the
 3422  division shall be brought in the county in which the division
 3423  has its executive offices or in which the violation occurred.
 3424         Section 49. Section 723.009, Florida Statutes, is amended
 3425  to read:
 3426         723.009 Division of Florida Condominiums, Homeowners’
 3427  Associations, Timeshares, and Mobile Homes Trust Fund.—All
 3428  proceeds from the fees, penalties, and fines imposed pursuant to
 3429  this chapter shall be deposited into the Division of Florida
 3430  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 3431  Homes Trust Fund created by s. 718.509. Moneys in this fund, as
 3432  appropriated by the Legislature pursuant to chapter 216, may be
 3433  used to defray the expenses incurred by the division in
 3434  administering the provisions of this chapter.
 3435         Section 50. Paragraph (c) of subsection (2) of section
 3436  723.0611, Florida Statutes, is amended to read:
 3437         723.0611 Florida Mobile Home Relocation Corporation.—
 3438         (2)
 3439         (c) The corporation shall, for purposes of s. 768.28, be
 3440  considered an agency of the state. Agents or employees of the
 3441  corporation, members of the board of directors of the
 3442  corporation, or representatives of the Division of Florida
 3443  Condominiums, Homeowners’ Associations, Timeshares, and Mobile
 3444  Homes shall be considered officers, employees, or agents of the
 3445  state, and actions against them and the corporation shall be
 3446  governed by s. 768.28.
 3447         Section 51. Section 723.1255, Florida Statutes, is amended
 3448  to read:
 3449         723.1255 Alternative resolution of recall disputes.—The
 3450  Division of Florida Condominiums, Homeowners’ Associations,
 3451  Timeshares, and Mobile Homes of the Department of Business and
 3452  Professional Regulation shall adopt rules of procedure to govern
 3453  binding recall arbitration proceedings.
 3454         Section 52. This act shall take effect July 1, 2016.

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