Bill Text: FL S1512 | 2016 | Regular Session | Introduced
Bill Title: Community Association Managers
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-03-11 - Died in Regulated Industries [S1512 Detail]
Download: Florida-2016-S1512-Introduced.html
Florida Senate - 2016 SB 1512
By Senator Soto
14-01622-16 20161512__
1 A bill to be entitled
2 An act relating to community association managers;
3 creating s. 468.430, F.S.; providing a short title;
4 reordering and amending s. 468.431, F.S.; revising
5 definitions; amending s. 468.4315, F.S.; renaming the
6 Regulatory Council of Community Association Managers
7 as the Board of Community Association Managers;
8 revising membership requirements for members of the
9 board; providing that a unit owner is not prohibited
10 from serving on the board; providing that members are
11 appointed for staggered terms; authorizing removal of
12 members from the board under certain circumstances;
13 authorizing the board to adopt rules under certain
14 circumstances; revising and providing responsibilities
15 relating to the board; revising circumstances under
16 which a member is entitled to receive per diem and
17 travel expenses; authorizing the board to consult with
18 the Division of Common Interest Communities and the
19 Community Association Living Study Council under
20 certain circumstances; conforming provisions to
21 changes made by the act; amending s. 468.432, F.S.;
22 deleting an obsolete date; specifying that a community
23 association management firm must be actively
24 registered with the Secretary of State; providing that
25 community association manager licenses expire and must
26 be renewed every 2 years and specifying related
27 renewal fees; conforming provisions to changes made by
28 the act; amending s. 468.433, F.S.; requiring rather
29 than authorizing the Department of Business and
30 Professional Regulation to refuse to certify an
31 applicant under certain circumstances; revising
32 requirements for licensure by examination; conforming
33 provisions to changes made by the act; amending s.
34 468.4336, F.S.; conforming provisions to changes made
35 by the act; amending s. 468.4337, F.S.; specifying
36 that the department may not renew a community
37 association manager’s license under certain
38 circumstances; revising continuing education
39 requirements for license renewal; amending s.
40 468.4338, F.S.; conforming provisions to changes made
41 by the act; amending s. 468.435, F.S.; deleting
42 certain minimum fees; requiring that the renewal of
43 license fee be based on a certain estimate; specifying
44 the maximum that may be charged for renewals;
45 specifying the account into which collected fees are
46 deposited; amending s. 468.436, F.S.; requiring the
47 department to consider damages that may occur if an
48 inquiry is not expedited during a complaint
49 investigation; requiring the department to conduct a
50 timely investigation; revising the timeline for an
51 investigation; requiring that the licenses of
52 community association managers or firms be suspended
53 under certain circumstances; prohibiting the
54 performance of certain services while a criminal
55 charge is pending; providing for reinstatement under
56 certain circumstances; conforming provisions to
57 changes made by the act; amending s. 468.4365, F.S.;
58 revising provisions relating to the availability of
59 disciplinary records and proceedings; amending s.
60 468.438, F.S.; making a technical change; providing an
61 effective date.
62
63 Be It Enacted by the Legislature of the State of Florida:
64
65 Section 1. Section 468.430, Florida Statutes, is created to
66 read:
67 468.430 Short title.—This part may be cited as the
68 “Community Association Management Act.”
69 Section 2. Section 468.431, Florida Statutes, is amended to
70 read:
71 468.431 Definitions.—As used in this part:
72 (2)(1) “Community association” or “association” means a
73 residential homeowner, condominium, cooperative, or timeshare
74 homeowners’ association in which membership is a condition of
75 ownership of a unit that in a planned unit development, or of a
76 lot for a home or a mobile home, or of a townhouse, villa,
77 condominium, cooperative, or other residential unit which is
78 part of a residential development scheme and which is authorized
79 to impose a fee which may become a lien on the parcel.
80 (3)(2) “Community association management” means any of the
81 following practices requiring substantial specialized knowledge,
82 judgment, and managerial skill when done for remuneration and
83 when the association or associations served contain more than 10
84 units or have an annual budget or budgets in excess of $100,000:
85 controlling or disbursing funds of a community association,
86 preparing budgets or other financial documents for a community
87 association, assisting in the noticing or conduct of community
88 association meetings, determining the number of days required
89 for statutory notices, determining amounts due to the
90 association, collecting amounts due to the association before
91 the filing of a civil action, calculating the votes required for
92 a quorum or to approve a proposition or amendment, completing
93 forms related to the management of a community association that
94 have been created by statute or by a state agency, drafting
95 meeting notices and agendas, calculating and preparing
96 certificates of assessment and estoppel certificates, responding
97 to requests for certificates of assessment and estoppel
98 certificates, negotiating monetary or performance terms of a
99 contract subject to approval by an association, drafting
100 prearbitration demands, coordinating or performing maintenance
101 for real or personal property and other related routine services
102 involved in the operation of a community association, providing
103 services requiring fundamental knowledge or skills as described
104 in s. 468.433(3), and complying with the association’s governing
105 documents and the requirements of law as necessary to perform
106 such practices. A person who performs clerical or ministerial
107 functions under the direct supervision and control of a licensed
108 manager or who is charged only with performing the maintenance
109 of a community association and who does not assist in any of the
110 management services described in this subsection is not required
111 to be licensed under this part.
112 (4)(3) “Community association management firm” means a
113 corporation, limited liability company, partnership, trust,
114 association, sole proprietorship, or other similar organization
115 engaging in the business of community association management for
116 the purpose of providing any of the services described in
117 subsection (3) (2).
118 (5)(4) “Community association manager” means a natural
119 person who is licensed pursuant to this part to perform
120 community association management services.
121 (1)(5) “Board” “Council” means the Board Regulatory Council
122 of Community Association Managers.
123 (6) “Department” means the Department of Business and
124 Professional Regulation.
125 Section 3. Section 468.4315, Florida Statutes, is amended
126 to read:
127 468.4315 Board Regulatory Council of Community Association
128 Managers.—
129 (1) The Board Regulatory Council of Community Association
130 Managers is created within the department and shall consist of
131 seven members appointed by the Governor and confirmed by the
132 Senate. Members of the board serving on or before July 1, 2016,
133 shall continue as members of the board consistent with the
134 provisions of this section.
135 (a) Five members of the board council shall be licensed
136 community association managers, one of whom may be a community
137 association manager employed by a timeshare managing entity as
138 described in ss. 468.438 and 721.13, who have held an active
139 license for at least 5 years. The remaining two board council
140 members shall be residents of this state, must not be or ever
141 have been connected with the business of community association
142 management, and are shall not be prohibited from serving because
143 the member is or has been a resident, unit owner, or board
144 member of a community association.
145 (b) The Governor shall appoint members for staggered terms
146 of 4 years. Such members shall serve until their successors are
147 appointed. Members’ service on the board council shall begin
148 upon appointment and shall continue until their successors are
149 appointed or they are removed because of two unexcused absences
150 or resignation successors are appointed.
151 (2) The board council may adopt rules relating to the
152 licensure examination, continuing education requirements,
153 continuing education providers, fees, and professional practice
154 standards. The board may adopt rules pursuant to ss. 120.536(1)
155 and 120.54 to implement the provisions of this part or chapter
156 455 conferring duties upon it and to assist the department in
157 carrying out the duties and authorities conferred upon the
158 department by this part.
159 (3) To the extent the council is authorized to exercise
160 functions otherwise exercised by a board pursuant to chapter
161 455, the provisions of chapter 455 and s. 20.165 relating to
162 regulatory boards shall apply, including, but not limited to,
163 provisions relating to board rules and the accountability and
164 liability of board members. All proceedings and actions of the
165 council are subject to the provisions of chapter 120. In
166 addition, the provisions of chapter 455 and s. 20.165 shall
167 apply to the department in carrying out the duties and
168 authorities conferred upon the department by this part.
169 (3)(4) The board council may establish a public education
170 program relating to professional community association
171 management.
172 (4)(5) Members of the board council shall serve without
173 compensation but are entitled to receive per diem and travel
174 expenses pursuant to s. 112.061 while carrying out business
175 approved by the board, the chair of the board, or the division
176 between meetings council.
177 (5)(6) The responsibilities of the board council shall
178 include, but are not be limited to:
179 (a) Receiving input regarding issues of concern with
180 respect to community association management and recommendations
181 for changes in applicable laws.
182 (b) Reviewing, evaluating, and advising the division
183 concerning revisions and adoption of rules affecting community
184 association management and associations.
185 (c) Recommending improvements, if needed, in the education
186 programs offered by the division.
187 (6) The board may freely consult with the Division of
188 Common Interest Communities of the Department of Business and
189 Professional Regulation and the Community Association Living
190 Study Council to coordinate efforts for regulatory and
191 legislative improvements.
192 Section 4. Section 468.432, Florida Statutes, is amended to
193 read:
194 468.432 Licensure of community association managers and
195 community association management firms; exceptions.—
196 (1) A person shall not manage or hold herself or himself
197 out to the public as being able to manage a community
198 association in this state unless she or he is licensed by the
199 department in accordance with the provisions of this part.
200 However, nothing in this part prohibits any person licensed in
201 this state under any other law or court rule from engaging in
202 the profession for which she or he is licensed.
203 (2) As of January 1, 2009, A community association
204 management firm or other similar organization responsible for
205 the management of more than 10 units or a budget of $100,000 or
206 greater shall not engage, or hold itself out to the public as
207 being able to engage, in the business of community association
208 management in this state unless it is licensed by the department
209 as a community association management firm in accordance with
210 the provisions of this part.
211 (a) A community association management firm or other
212 similar organization desiring to be licensed as a community
213 association management firm shall apply to the department on a
214 form approved by the department, together with the application
215 and licensure fees required by s. 468.435(1)(a) and (c). Each
216 community association management firm applying for licensure
217 under this subsection must be actively registered with the
218 Secretary of State and authorized to do business in this state.
219 (b) Each applicant shall designate on its application a
220 licensed community association manager who shall be required to
221 respond to all inquiries from and investigations by the
222 department or division.
223 (c) Each licensed community association management firm
224 shall notify the department within 30 days after any change of
225 information contained in the application upon which licensure is
226 based.
227 (d) Community association manager licenses shall expire on
228 September 30 of even-numbered years and must be renewed every 2
229 years. An application for renewal shall be accompanied by the
230 renewal of license fee as required by s. 468.435(1)(d).
231 (e)(d) Community association management firm licenses shall
232 expire on September 30 of odd-numbered years and shall be
233 renewed every 2 years. An application for renewal shall be
234 accompanied by the renewal fee as required by s. 468.435(1)(d).
235 (f)(e) The department shall license each applicant whom the
236 department certifies as meeting the requirements of this
237 subsection.
238 (g)(f) If the license of at least one individual active
239 community association manager member is not in force, the
240 license of the community association management firm or other
241 similar organization is suspended canceled automatically during
242 that time.
243 (h)(g) Any community association management firm or other
244 similar organization agrees by being licensed that it will
245 employ only licensed persons in the direct provision of
246 community association management services as defined described
247 in s. 468.431(3).
248 Section 5. Section 468.433, Florida Statutes, is amended to
249 read:
250 468.433 Licensure by examination.—
251 (1) A person desiring to be licensed as a community
252 association manager shall apply to the department to take the
253 licensure examination. Each applicant must file a complete set
254 of fingerprints that have been taken by an authorized law
255 enforcement officer, which set of fingerprints shall be
256 submitted to the Department of Law Enforcement for state
257 processing and to the Federal Bureau of Investigation for
258 federal processing. The cost of processing shall be borne by the
259 applicant.
260 (2) The department shall examine each applicant who must be
261 is at least 18 years of age, who has successfully completed all
262 prelicensure education requirements, and who the department
263 certifies is of good moral character.
264 (a) Good moral character means a personal history of
265 honesty, fairness, and respect for the rights of others and for
266 the laws of this state and nation.
267 (b) The department shall may refuse to certify an applicant
268 only if:
269 1. There is a substantial connection between the lack of
270 good moral character of the applicant and the professional
271 responsibilities of a community association manager;
272 2. The finding by the department of lack of good moral
273 character is supported by clear and convincing evidence; or
274 3. The applicant is found to have provided management
275 services requiring licensure without the requisite license.
276 (c) When an applicant is found to be unqualified for a
277 license because of a lack of good moral character, the
278 department shall furnish the applicant a statement containing
279 its findings, a complete record of the evidence upon which the
280 determination was based, and a notice of the rights of the
281 applicant to a rehearing and appeal.
282 (d) The board council shall establish by rule the required
283 amount of prelicensure education that, which shall consist of
284 not more than 40 24 hours of in-person instruction by a
285 department-approved provider and which shall cover all areas of
286 the examination specified in subsection (3). Such instruction
287 shall be completed within 12 months prior to the date of the
288 examination. Prelicensure education providers shall be
289 considered continuing education providers for purposes of
290 establishing provider approval fees. A licensee shall not be
291 required to comply with the continuing education requirements of
292 s. 468.4337 prior to the first license renewal. The board
293 department shall, by rule, set standards for exceptions to the
294 requirement of in-person instruction in cases of hardship or
295 disability.
296 (3) The board council shall approve an examination for
297 licensure. The examination must demonstrate that the applicant
298 has a fundamental knowledge of state and federal laws relating
299 to the operation of all types of community associations and
300 state laws relating to corporations and nonprofit corporations,
301 proper preparation of community association budgets, proper
302 procedures for noticing and conducting community association
303 meetings, insurance matters relating to community associations,
304 and management skills and knowledge of:
305 (a) State and federal laws relating to the operation of all
306 types of community associations.
307 (b) State and federal laws relating to corporations and
308 nonprofit corporations.
309 (c) Compliance with association governing documents and the
310 legal requirements required to perform related practices.
311 (d) Preparing the community association budget.
312 (e) Calculating reserve requirements.
313 (f) Determining amounts due to the association and
314 calculating and preparing certificates of assessment and
315 estoppel certificates.
316 (g) Procedures for noticing and conducting community
317 association meetings.
318 (h) Insurance matters relating to community associations.
319 (i) Drafting meeting notices and agendas.
320 (j) Determining the timing, method, and form of providing
321 meeting notices.
322 (k) Determining the number of days required for statutory
323 notices.
324 (l) Procedures for collecting amounts due to the
325 association before filing a civil action.
326 (m) Drafting prearbitration demands.
327 (n) Determining the votes necessary for a quorum, to
328 approve a proposition or an amendment, or to take certain
329 actions.
330 (o) Preparing, modifying, or completing forms relating to
331 community association management which have been created by
332 statute or a state agency.
333 (p) Coordinating or performing maintenance on real or
334 personal property and other related routine services involved in
335 the operation of a community association.
336 (q) Drafting a “yes” or “no” proxy voting question
337 concerning reserves, financial reporting requirements, excess
338 membership expenses, or adopting amendments to the documents.
339 (r) Negotiating monetary or performance contract terms
340 subject to approval by an association.
341 (s) Drafting amendments and certificates of amendments that
342 are recorded in the official records to declarations of
343 covenants, bylaws, and articles of incorporation with the advice
344 of counsel when such documents are to be voted upon by the
345 members.
346 (t) Modifying or completing proxy forms for questions
347 addressed at meetings.
348 (u) Providing assistance with preparing, reviewing,
349 drafting, or executing contracts.
350 (v) Determining, from county records, owners required to
351 receive pre-lien letters.
352 (4) A community association manager is liable for damages
353 incurred from offering incorrect advice.
354 (5)(4) The department shall issue a license to practice in
355 this state as a community association manager to a any qualified
356 applicant who successfully completes the examination in
357 accordance with this section and pays the appropriate fee.
358 Section 6. Section 468.4336, Florida Statutes, is amended
359 to read:
360 468.4336 Renewal of license.—
361 (1) The board department shall renew a license upon receipt
362 of the renewal application and fee and upon proof of compliance
363 with the continuing education requirements of s. 468.4337.
364 (2) The board department shall adopt rules establishing a
365 procedure for the biennial renewal of licenses.
366 Section 7. Section 468.4337, Florida Statutes, is amended
367 to read:
368 468.4337 Continuing education.—The department may not renew
369 a community association manager’s license until the licensee
370 submits proof of completion that the licensee has completed the
371 requisite hours of the requisite hours of continuing education.
372 At least 20 No more than 10 hours of biennial continuing
373 education are annually shall be required for renewal of a
374 license. The number of hours, criteria, and course content,
375 which shall include at least 2 hours of annual legal update
376 seminars, shall be approved by the board council by rule.
377 Section 8. Section 468.4338, Florida Statutes, is amended
378 to read:
379 468.4338 Reactivation; continuing education.—The board
380 council shall prescribe by rule continuing education
381 requirements for reactivating a license. The continuing
382 education requirements for reactivating a license may not exceed
383 one renewal cycle of continuing education.
384 Section 9. Section 468.435, Florida Statutes, is amended to
385 read:
386 468.435 Fees; establishment; disposition.—
387 (1) The board council shall, by rule, establish fees for
388 the described purposes and within the ranges specified in this
389 section:
390 (a) Application fee: not less than $25, or more than $50.
391 (b) Examination fee: not less than $25, or more than $100.
392 (c) Initial license fee: not less than $25, or more than
393 $100.
394 (d) Renewal of license fee: not less than $25, or more than
395 $100.
396 (e) Delinquent license fee: not less than $25, or more than
397 $50.
398 (f) Inactive license fee: not less than $10, or more than
399 $25.
400 (2) The renewal of license fee shall be determined based on
401 an estimate of the amount required annually for the board to
402 fulfill its responsibilities under this section, rounded to the
403 next highest even dollar amount, and may not exceed $100 Until
404 the council establishes fees under subsection (1), the lower
405 amount in each range shall apply.
406 (3) Fees collected under this section shall be deposited in
407 the Regulatory Council of Community Association Managers account
408 in to the credit of the Professional Regulation Trust Fund.
409 (4) The board council shall establish fees that are
410 adequate to fund the cost to implement the provisions of this
411 part. Fees shall be based on the department estimates of the
412 revenue required to implement this part and the provisions of
413 law with respect to the regulation of community association
414 managers and firms.
415 Section 10. Section 468.436, Florida Statutes, is amended
416 to read:
417 468.436 Disciplinary proceedings.—
418 (1) The department shall investigate complaints and
419 allegations of a violation of this part, chapter 455, or any
420 rule adopted thereunder, filed against community association
421 managers or firms or and forwarded from other divisions of under
422 the department of Business and Professional Regulation.
423 (a) After a complaint is received, the department shall
424 conduct its inquiry with due regard to the interests of the
425 affected parties and consideration of damages that may occur if
426 the inquiry is not expedited.
427 (b) Within 30 days after receipt of a complaint, the
428 department shall acknowledge the complaint in writing and notify
429 the complainant whether or not the complaint is within the
430 jurisdiction of the department and whether or not additional
431 information is needed by the department from the complainant.
432 (c) The department shall conduct a timely an investigation
433 and shall, within 45 90 days after receipt of the original
434 complaint or of a timely request for additional information,
435 take action upon the complaint. However, the failure to complete
436 the investigation within 45 90 days does not prevent the
437 department from continuing the investigation, accepting or
438 considering evidence obtained or received after 45 90 days, or
439 taking administrative action if reasonable cause exists to
440 believe that a violation of this part, chapter 455, or a rule of
441 the department has occurred.
442 (d) If an investigation is not completed within the time
443 limits established in this subsection, the department shall, at
444 least monthly on a monthly basis, notify the complainant in
445 writing of the status of the investigation. When reporting its
446 action to the complainant, the department shall inform the
447 complainant of any right to a hearing pursuant to ss. 120.569
448 and 120.57.
449 (2) The department shall suspend the license of a community
450 association manager or firm charged by information or indictment
451 with a felony offense. While the community association manager
452 or firm has a criminal charge pending, it may not perform
453 services of community association management. However, if the
454 charges are resolved without a finding of guilt, the community
455 association manager or firm shall be reinstated for the
456 remainder of its term, if any.
457 (3)(2) The following acts constitute grounds for which the
458 disciplinary actions in subsection (5) (4) may be taken:
459 (a) Violation of any provision of s. 455.227(1).
460 (b)1. Violation of any provision of this part.
461 2. Violation of any lawful order or rule rendered or
462 adopted by the department or the board council.
463 3. Being convicted of or pleading nolo contendere to a
464 felony in any court in the United States.
465 4. Obtaining a license or certification or any other order,
466 ruling, or authorization by means of fraud, misrepresentation,
467 or concealment of material facts.
468 5. Committing acts of gross misconduct or gross negligence
469 in connection with the profession.
470 6. Contracting, on behalf of an association, with any
471 entity in which the licensee has a financial interest that is
472 not disclosed.
473 7. Violating any provision of chapter 718 or chapter 721,
474 chapter 719, or chapter 720 during the course of performing
475 community association management services pursuant to a contract
476 with a community association as defined in s. 468.431(2)
477 468.431(1).
478 (4)(3) The board council shall specify by rule the acts or
479 omissions that constitute a violation of subsection (3) (2).
480 (5)(4) When the department finds any community association
481 manager or firm guilty of any of the grounds set forth in
482 subsection (3) (2), it may enter an order imposing one or more
483 of the following penalties:
484 (a) Denial of an application for licensure.
485 (b) Revocation or suspension of a license.
486 (c) Imposition of an administrative fine not to exceed
487 $5,000 for each count or separate offense.
488 (d) Issuance of a reprimand.
489 (e) Placement of the community association manager or firm
490 on probation for a period of time and subject to such conditions
491 as the department specifies.
492 (f) Restriction of the authorized scope of practice by the
493 community association manager or firm.
494 (6)(5) The department may reissue the license of a
495 disciplined community association manager or firm upon
496 certification by the board department that the disciplined
497 person or firm has complied with all of the terms and conditions
498 set forth in the final order.
499 Section 11. Section 468.4365, Florida Statutes, is amended
500 to read:
501 468.4365 Availability of disciplinary records and
502 proceedings.—Notwithstanding s. 455.225, any complaint or record
503 maintained by the Department of Business and Professional
504 Regulation pursuant to the Discipline of a licensed community
505 association manager or firm and any proceeding held by the
506 department to discipline a licensed community association
507 manager or firm shall remain open and available to the public
508 pursuant to s. 286.011.
509 Section 12. Subsection (2) of section 468.438, Florida
510 Statutes, is amended to read:
511 468.438 Timeshare management firms.—
512 (2) A timeshare management firm is shall only be required
513 to employ at least one individual licensed under this part at
514 each noncontiguous geographic location at which the management
515 firm provides community association management. No other person
516 providing community association management on behalf of such
517 management firms shall be required to hold a license pursuant to
518 this part, provided that any community association management
519 provided pursuant to this section must be performed under the
520 direct supervision and control of a licensed community
521 association manager. A community association manager licensed
522 pursuant to this part and employed by a timeshare management
523 firm pursuant to this section assumes responsibility for all
524 community association management performed by unlicensed persons
525 employed by the timeshare management firm.
526 Section 13. This act shall take effect July 1, 2016.
