Bill Text: FL S1768 | 2018 | Regular Session | Introduced
Bill Title: Community Associations
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2018-03-10 - Died in Regulated Industries [S1768 Detail]
Download: Florida-2018-S1768-Introduced.html
Florida Senate - 2018 SB 1768 By Senator Torres 15-01667-18 20181768__ 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 718.1255, F.S.; requiring the Division of Florida 4 Condominiums, Timeshares, and Mobile Homes of the 5 Department of Business and Professional Regulation to 6 establish the Office of Community Association 7 Hearings; requiring the division to employ full-time 8 attorneys to act as community association hearing 9 officers in lieu of arbitrators for specified 10 purposes; allowing the division to certify attorneys 11 who are not employed by the division to act as 12 community association hearing officers under specified 13 conditions; specifying grounds for which a community 14 association hearing officer may be terminated; 15 transferring the powers and duties of arbitrators to 16 community association hearing officers; authorizing a 17 community association hearing officer to hold a 18 hearing and impose sanctions against a board member or 19 officer under certain conditions; amending s. 720.311, 20 F.S.; revising and providing requirements with respect 21 to alternative dispute resolution; amending ss. 34.01, 22 718.117, 719.106, 720.303, and 723.078, F.S.; 23 conforming provisions to changes made by the act; 24 providing an effective date. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Subsection (4) of section 718.1255, Florida 29 Statutes, is amended to read: 30 718.1255 Alternative dispute resolution; voluntary 31 mediation; mandatory nonbinding arbitration; legislative 32 findings.— 33 (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF 34 DISPUTES.—The Division of Florida Condominiums, Timeshares, and 35 Mobile Homes of the Department of Business and Professional 36 Regulation shall establish the Office of Community Association 37 Hearings and shallmayemploy full-time attorneys to act as 38 community association hearing officersarbitratorsto conduct 39 the arbitration hearings provided by this chapter. The division 40 may also certify attorneys who are not employed by the division 41 to act as community association hearing officers, by mutual 42 agreement of the parties,arbitratorsto conduct the arbitration 43 hearings provided by this chapter. 44 (a) ANoperson may not be employed by the department as a 45 full-time community association hearing officerarbitrator46 unless he or she is a member in good standing of The Florida 47 Bar. A community association hearing officer may only be 48 terminated by the department for cause. A person may only be 49 certified by the division to act as a community association 50 hearing officeran arbitratorif he or she has: 51 1. Been a member in good standing of The Florida Bar for at 52 least 5 years and has mediated or arbitrated at least 10 53 disputes involving condominiums in this state during the 3 years 54 immediately preceding the date of application;,55 2. Mediated or arbitrated at least 30 disputes in any 56 subject area in this state during the 3 years immediately 57 preceding the date of employment or application;,or 58 3. Attained board certification in real estate law or 59 condominium and planned development law from The Florida Bar. 60 (b) Community association hearing officerArbitrator61 certification is valid for 1 year. A community association 62 hearing officerAn arbitratorwho does not maintain the minimum 63 qualifications for initial certification may not have his or her 64 certification renewed. 65 (c) The department may not enter into a legal services 66 contract for an arbitration hearing under this chapter with an 67 attorney who is not a certified community association hearing 68 officerarbitratorunless a certified community association 69 hearing officerarbitratoris not available within 50 miles of 70 the dispute. The department shall adopt rules of procedure to 71 govern such arbitration hearings including mediation incident 72 thereto. 73 (d) The decision of a community association hearing officer 74an arbitratorisshall befinal; however, a decision is not 75shall not bedeemed final agency action. Nothing in this 76 provision shall be construed to foreclose parties from 77 proceeding in a trial de novo unless the parties have agreed 78 that the arbitration is binding. If judicial proceedings are 79 initiated, the final decision of the community association 80 hearing officerarbitratorshall be admissible in evidence in 81 the trial de novo. 82 (e)(a)BeforePrior tothe institution of court litigation, 83 a party to a dispute shall petition the division for nonbinding 84 arbitration. The petition must be accompanied by a filing fee in 85 the amount of $50. Filing fees collected under this section must 86 be used to defray the expenses of the alternative dispute 87 resolution program. 88 (f)(b)The petition must recite, and have attached thereto, 89 supporting proof that the petitioner gave the respondents: 90 1. Advance written notice of the specific nature of the 91 dispute; 92 2. A demand for relief, and a reasonable opportunity to 93 comply or to provide the relief; and 94 3. Notice of the intention to file an arbitration petition 95 or other legal action in the absence of a resolution of the 96 dispute. 97 98 Failure to include the allegations or proof of compliance with 99 these prerequisites requires dismissal of the petition without 100 prejudice. 101 (g)(c)Upon receipt, the petition shall be promptly 102 reviewed by the division to determine the existence of a dispute 103 and compliance with the requirements of paragraphs (e) and (f) 104(a) and (b). If emergency relief is required and is not 105 available through arbitration, a motion to stay the arbitration 106 may be filed. The motion must be accompanied by a verified 107 petition alleging facts that, if proven, would support entry of 108 a temporary injunction, and if an appropriate motion and 109 supporting papers are filed, the division may abate the 110 arbitration pending a court hearing and disposition of a motion 111 for temporary injunction. 112 (h)(d)Upon determination by the division that a dispute 113 exists and that the petition substantially meets the 114 requirements of paragraphs (e) and (f)(a) and (b)and any other 115 applicable rules, the division shall assign or enter into a 116 contract with a community association hearing officeran117arbitratorand serve a copy of the petition upon all 118 respondents. The community association hearing officer 119arbitratorshall conduct a hearing within 30 days after being 120 assigned or entering into a contract unless the petition is 121 withdrawn or a continuance is granted for good cause shown. 122 (i)(e)Before or after the filing of the respondents’ 123 answer to the petition, any party may request that the community 124 association hearing officerarbitratorrefer the case to 125 mediation under this section and any rules adopted by the 126 division. Upon receipt of a request for mediation, the division 127 shall promptly contact the parties to determine if there is 128 agreement that mediation would be appropriate. If all parties 129 agree, the dispute must be referred to mediation. 130 Notwithstanding a lack of an agreement by all parties, the 131 community association hearing officerarbitratormay refer a 132 dispute to mediation at any time. 133 (j)(f)Upon referral of a case to mediation, the parties 134 must select a mutually acceptable mediator. To assist in the 135 selection, the community association hearing officerarbitrator136 shall provide the parties with a list of both volunteer and paid 137 mediators that have been certified by the division under s. 138 718.501. If the parties are unable to agree on a mediator within 139 the time allowed by the community association hearing officer 140arbitrator, the community association hearing officerarbitrator141 shall appoint a mediator from the list of certified mediators. 142 If a case is referred to mediation, the parties shall attend a 143 mediation conference, as scheduled by the parties and the 144 mediator. If any party fails to attend a duly noticed mediation 145 conference, without the permission or approval of the community 146 association hearing officerarbitratoror mediator, the 147 community association hearing officerarbitratormust impose 148 sanctions against the party, including the striking of any 149 pleadings filed, the entry of an order of dismissal or default 150 if appropriate, and the award of costs and attorney fees 151 incurred by the other parties. Unless otherwise agreed to by the 152 parties or as provided by order of the community association 153 hearing officerarbitrator, a party is deemed to have appeared 154 at a mediation conference by the physical presence of the party 155 or its representative having full authority to settle without 156 further consultation, provided that an association may comply by 157 having one or more representatives present with full authority 158 to negotiate a settlement and recommend that the board of 159 administration ratify and approve such a settlement within 5 160 days from the date of the mediation conference. The parties 161 shall share equally the expense of mediation, unless they agree 162 otherwise. 163 (k)(g)The purpose of mediation as provided for by this 164 section is to present the parties with an opportunity to resolve 165 the underlying dispute in good faith, and with a minimum 166 expenditure of time and resources. 167 (l)(h)Mediation proceedings must generally be conducted in 168 accordance with the Florida Rules of Civil Procedure, and these 169 proceedings are privileged and confidential to the same extent 170 as court-ordered mediation. Persons who are not parties to the 171 dispute are not allowed to attend the mediation conference 172 without the consent of all parties, with the exception of 173 counsel for the parties and corporate representatives designated 174 to appear for a party. If the mediator declares an impasse after 175 a mediation conference has been held, the arbitration proceeding 176 terminates, unless all parties agree in writing to continue the 177 arbitration proceeding, in which case the community association 178 hearing officer’sarbitrator’sdecision shall be binding or 179 nonbinding, as agreed upon by the parties; in the arbitration 180 proceeding, the community association hearing officerarbitrator181 shall not consider any evidence relating to the unsuccessful 182 mediation except in a proceeding to impose sanctions for failure 183 to appear at the mediation conference. If the parties do not 184 agree to continue arbitration, the community association hearing 185 officerarbitratorshall enter an order of dismissal, and either 186 party may institute a suit in a court of competent jurisdiction. 187 The parties may seek to recover any costs and attorney fees 188 incurred in connection with arbitration and mediation 189 proceedings under this section as part of the costs and fees 190 that may be recovered by the prevailing party in any subsequent 191 litigation. 192 (m)(i)Arbitration shall be conducted according to rules 193 adopted by the division. The filing of a petition for 194 arbitration shall toll the applicable statute of limitations. 195 (n)(j)At the request of any party to the arbitration, the 196 community association hearing officerarbitratorshall issue 197 subpoenas for the attendance of witnesses and the production of 198 books, records, documents, and other evidence and any party on 199 whose behalf a subpoena is issued may apply to the court for 200 orders compelling such attendance and production. Subpoenas 201 shall be served and shall be enforceable in the manner provided 202 by the Florida Rules of Civil Procedure. Discovery may, in the 203 discretion of the community association hearing officer 204arbitrator, be permitted in the manner provided by the Florida 205 Rules of Civil Procedure. Rules adopted by the division may 206 authorize any reasonable sanctions except contempt for a 207 violation of the arbitration procedural rules of the division or 208 for the failure of a party to comply with a reasonable nonfinal 209 order issued by a community association hearing officeran210arbitratorwhich is not under judicial review. 211 (o)(k)The arbitration decision shall berendered within 30212days after the hearing andpresented to the parties in writing. 213 An arbitration decision is final in those disputes in which the 214 parties have agreed to be bound. An arbitration decision is also 215 final if a complaint for a trial de novo is not filed in a court 216 of competent jurisdiction in which the condominium is located 217 within 30 days of the decision being presented to the parties. 218 The right to file for a trial de novo entitles the parties to 219 file a complaint in the appropriate trial court for a judicial 220 resolution of the dispute. The prevailing party in an 221 arbitration proceeding shall be awarded the costs of the 222 arbitration and reasonable attorney fees in an amount determined 223 by the community association hearing officerarbitrator. Such an 224 award shall include the costs and reasonable attorney fees 225 incurred in the arbitration proceeding as well as the costs and 226 reasonable attorney fees incurred in preparing for and attending 227 any scheduled mediation.An arbitrator’s failure to render a228written decision within 30 days after the hearing may result in229the cancellation of his or her arbitration certification.230 (p)(l)The party who files a complaint for a trial de novo 231 shall be assessed the other party’s arbitration costs, court 232 costs, and other reasonable costs, including attorney fees, 233 investigation expenses, and expenses for expert or other 234 testimony or evidence incurred after the arbitration hearing if 235 the judgment upon the trial de novo is not more favorable than 236 the arbitration decision. If the judgment is more favorable, the 237 party who filed a complaint for trial de novo shall be awarded 238 reasonable court costs and attorney fees. 239 (q)(m)Any party to an arbitration proceeding may enforce 240 an arbitration award by filing a petition in a court of 241 competent jurisdiction in which the condominium is located. A 242 petition may not be granted unless the time for appeal by the 243 filing of a complaint for trial de novo has expired. If a 244 complaint for a trial de novo has been filed, a petition may not 245 be granted with respect to an arbitration award that has been 246 stayed. If the petition for enforcement is granted, the 247 petitioner shall recover reasonable attorney fees and costs 248 incurred in enforcing the arbitration award. A mediation 249 settlement may also be enforced through the county or circuit 250 court, as applicable, and any costs and fees incurred in the 251 enforcement of a settlement agreement reached at mediation must 252 be awarded to the prevailing party in any enforcement action. 253 (r)1. If the community association hearing officer’s 254 judgment finds that a board member or officer has intentionally 255 prevented an association from complying with chapter 617, 256 chapter 718, chapter 719, or chapter 720, the community 257 association hearing officer shall serve the board member or 258 officer with an order to show cause why sanctions should not be 259 imposed against him or her. If the board member or officer 260 responds to the order to show cause, the community association 261 hearing officer shall hold a hearing to determine if sanctions 262 should be imposed on the board member or officer. If the board 263 member or officer does not respond to the order by the date 264 specified, a hearing shall not be held and sanctions shall be 265 imposed. 266 2.a. If the community association hearing officer finds 267 that a board member or officer has intentionally prevented an 268 association from complying with chapter 617, chapter 718, 269 chapter 719, or chapter 720, the community association hearing 270 officer may impose one or more of the following sanctions, 271 notice of which must be provided to the board member or officer 272 in writing: 273 (I) Require the board member or officer to reimburse the 274 association for any prevailing party attorney fees or costs 275 imposed against it. 276 (II) Require the board member or officer to reimburse the 277 attorney fees and costs incurred by and to the association. 278 (III) Require the board member or officer to reimburse the 279 association for any damages awarded against it. 280 b. If the sanction is not paid by the date specified in the 281 notice, the association shall impose the amount owed as a lien 282 against the board member or officer’s unit or units. 283 3. The award of attorney fees as provided in s. 57.105 284 applies to any proceeding conducted pursuant to this section. 285 4. If a community association hearing officer finds 286 evidence of a criminal violation, the community association 287 hearing officer shall refer the evidence to the appropriate 288 state attorney. 289 Section 2. Section 720.311, Florida Statutes, is amended to 290 read: 291 720.311 Alternative dispute resolution.—The division shall 292 conduct alternative dispute resolution proceedings in accordance 293 with s. 718.1255. 294(1)The Legislature finds that alternative dispute295resolution has made progress in reducing court dockets and296trials and in offering a more efficient, cost-effective option297to litigation. The filing of any petition for arbitration or the298serving of a demand for presuit mediation as provided for in299this section shall toll the applicable statute of limitations.300Any recall dispute filed with the department pursuant to s.301720.303(10) shall be conducted by the department in accordance302with the provisions of ss. 718.112(2)(j) and 718.1255 and the303rules adopted by the division. In addition, the department shall304conduct mandatory binding arbitration of election disputes305between a member and an association pursuant to s. 718.1255 and306rules adopted by the division. Neither election disputes nor307recall disputes are eligible for presuit mediation; these308disputes shall be arbitrated by the department.At the 309 conclusion of the proceeding, the department shall charge the 310 parties a fee in an amount adequate to cover all costs and 311 expenses incurred by the department in conducting the 312 proceeding. Initially, the petitioner shall remit a filing fee 313 of at least $200 to the department. The fees paid to the 314 department shall become a recoverable cost in the arbitration 315 proceeding, and the prevailing party in an arbitration 316 proceeding shall recover its reasonable costs and attorney 317attorney’sfees in an amount found reasonable by the community 318 association hearing officerarbitrator. The department shall 319 adopt rules to effectuate the purposes of this section. 320(2)(a)Disputes between an association and a parcel owner321regarding use of or changes to the parcel or the common areas322and other covenant enforcement disputes, disputes regarding323amendments to the association documents, disputes regarding324meetings of the board and committees appointed by the board,325membership meetings not including election meetings, and access326to the official records of the association shall be the subject327of a demand for presuit mediation served by an aggrieved party328before the dispute is filed in court. Presuit mediation329proceedings must be conducted in accordance with the applicable330Florida Rules of Civil Procedure, and these proceedings are331privileged and confidential to the same extent as court-ordered332mediation. Disputes subject to presuit mediation under this333section shall not include the collection of any assessment,334fine, or other financial obligation, including attorney’s fees335and costs, claimed to be due or any action to enforce a prior336mediation settlement agreement between the parties. Also, in any337dispute subject to presuit mediation under this section where338emergency relief is required, a motion for temporary injunctive339relief may be filed with the court without first complying with340the presuit mediation requirements of this section. After any341issues regarding emergency or temporary relief are resolved, the342court may either refer the parties to a mediation program343administered by the courts or require mediation under this344section. An arbitrator or judge may not consider any information345or evidence arising from the presuit mediation proceeding except346in a proceeding to impose sanctions for failure to attend a347presuit mediation session or to enforce a mediated settlement348agreement. Persons who are not parties to the dispute may not349attend the presuit mediation conference without the consent of350all parties, except for counsel for the parties and a corporate351representative designated by the association. When mediation is352attended by a quorum of the board, such mediation is not a board353meeting for purposes of notice and participation set forth in s.354720.303. An aggrieved party shall serve on the responding party355a written demand to participate in presuit mediation in356substantially the following form:357STATUTORY OFFER TO PARTICIPATE358 359IN PRESUIT MEDIATION360The alleged aggrieved party, ................, hereby demands361that ................, as the responding party, engage in362mandatory presuit mediation in connection with the following363disputes, which by statute are of a type that are subject to364presuit mediation:365(List specific nature of the dispute or disputes to be mediated366and the authority supporting a finding of a violation as to each367dispute.)368Pursuant to section 720.311, Florida Statutes, this demand to369resolve the dispute through presuit mediation is required before370a lawsuit can be filed concerning the dispute. Pursuant to the371statute, the parties are required to engage in presuit mediation372with a neutral third-party mediator in order to attempt to373resolve this dispute without court action, and the aggrieved374party demands that you likewise agree to this process. If you375fail to participate in the mediation process, suit may be376brought against you without further warning.377The process of mediation involves a supervised negotiation378process in which a trained, neutral third-party mediator meets379with both parties and assists them in exploring possible380opportunities for resolving part or all of the dispute. By381agreeing to participate in presuit mediation, you are not bound382in any way to change your position. Furthermore, the mediator383has no authority to make any decisions in this matter or to384determine who is right or wrong and merely acts as a facilitator385to ensure that each party understands the position of the other386party and that all options for reasonable settlement are fully387explored.388If an agreement is reached, it shall be reduced to writing and389becomes a binding and enforceable commitment of the parties. A390resolution of one or more disputes in this fashion avoids the391need to litigate these issues in court. The failure to reach an392agreement, or the failure of a party to participate in the393process, results in the mediator declaring an impasse in the394mediation, after which the aggrieved party may proceed to court395on all outstanding, unsettled disputes. If you have failed or396refused to participate in the entire mediation process, you will397not be entitled to recover attorney’s fees, even if you prevail.398The aggrieved party has selected and hereby lists five certified399mediators who we believe to be neutral and qualified to mediate400the dispute. You have the right to select any one of these401mediators. The fact that one party may be familiar with one or402more of the listed mediators does not mean that the mediator403cannot act as a neutral and impartial facilitator. Any mediator404who cannot act in this capacity is required ethically to decline405to accept engagement. The mediators that we suggest, and their406current hourly rates, are as follows:407(List the names, addresses, telephone numbers, and hourly rates408of the mediators. Other pertinent information about the409background of the mediators may be included as an attachment.)410You may contact the offices of these mediators to confirm that411the listed mediators will be neutral and will not show any412favoritism toward either party. The Florida Supreme Court can413provide you a list of certified mediators.414Unless otherwise agreed by the parties, section 720.311(2)(b),415Florida Statutes, requires that the parties share the costs of416presuit mediation equally, including the fee charged by the417mediator. An average mediation may require three to four hours418of the mediator’s time, including some preparation time, and the419parties would need to share equally the mediator’s fees as well420as their own attorney’s fees if they choose to employ an421attorney in connection with the mediation. However, use of an422attorney is not required and is at the option of each party. The423mediators may require the advance payment of some or all of the424anticipated fees. The aggrieved party hereby agrees to pay or425prepay one-half of the mediator’s estimated fees and to forward426this amount or such other reasonable advance deposits as the427mediator requires for this purpose. Any funds deposited will be428returned to you if these are in excess of your share of the fees429incurred.430To begin your participation in presuit mediation to try to431resolve the dispute and avoid further legal action, please sign432below and clearly indicate which mediator is acceptable to you.433We will then ask the mediator to schedule a mutually convenient434time and place for the mediation conference to be held. The435mediation conference must be held within ninety (90) days of436this date, unless extended by mutual written agreement. In the437event that you fail to respond within 20 days from the date of438this letter, or if you fail to agree to at least one of the439mediators that we have suggested or to pay or prepay to the440mediator one-half of the costs involved, the aggrieved party441will be authorized to proceed with the filing of a lawsuit442against you without further notice and may seek an award of443attorney’s fees or costs incurred in attempting to obtain444mediation.445Therefore, please give this matter your immediate attention. By446law, your response must be mailed by certified mail, return447receipt requested, and by first-class mail to the address shown448on this demand.449........................450........................451RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR AGREEMENT TO452THAT CHOICE.453AGREEMENT TO MEDIATE454The undersigned hereby agrees to participate in presuit455mediation and agrees to attend a mediation conducted by the456following mediator or mediators who are listed above as someone457who would be acceptable to mediate this dispute:458(List acceptable mediator or mediators.)459I/we further agree to pay or prepay one-half of the mediator’s460fees and to forward such advance deposits as the mediator may461require for this purpose.462........................463Signature of responding party #1464........................465Telephone contact information466........................467Signature and telephone contact information of responding party468#2 (if applicable)(if property is owned by more than one person,469all owners must sign)470(b)Service of the statutory demand to participate in471presuit mediation shall be effected by sending a letter in472substantial conformity with the above form by certified mail,473return receipt requested, with an additional copy being sent by474regular first-class mail, to the address of the responding party475as it last appears on the books and records of the association.476The responding party has 20 days from the date of the mailing of477the statutory demand to serve a response to the aggrieved party478in writing. The response shall be served by certified mail,479return receipt requested, with an additional copy being sent by480regular first-class mail, to the address shown on the statutory481demand. Notwithstanding the foregoing, once the parties have482agreed on a mediator, the mediator may reschedule the mediation483for a date and time mutually convenient to the parties. The484parties shall share the costs of presuit mediation equally,485including the fee charged by the mediator, if any, unless the486parties agree otherwise, and the mediator may require advance487payment of its reasonable fees and costs. The failure of any488party to respond to a demand or response, to agree upon a489mediator, to make payment of fees and costs within the time490established by the mediator, or to appear for a scheduled491mediation session without the approval of the mediator, shall492constitute the failure or refusal to participate in the493mediation process and shall operate as an impasse in the presuit494mediation by such party, entitling the other party to proceed in495court and to seek an award of the costs and fees associated with496the mediation. Additionally, notwithstanding the provisions of497any other law or document, persons who fail or refuse to498participate in the entire mediation process may not recover499attorney’s fees and costs in subsequent litigation relating to500the dispute. If any presuit mediation session cannot be501scheduled and conducted within 90 days after the offer to502participate in mediation was filed, an impasse shall be deemed503to have occurred unless both parties agree to extend this504deadline.505(c)If presuit mediation as described in paragraph (a) is506not successful in resolving all issues between the parties, the507parties may file the unresolved dispute in a court of competent508jurisdiction or elect to enter into binding or nonbinding509arbitration pursuant to the procedures set forth in s. 718.1255510and rules adopted by the division, with the arbitration511proceeding to be conducted by a department arbitrator or by a512private arbitrator certified by the department. If all parties513do not agree to arbitration proceedings following an514unsuccessful presuit mediation, any party may file the dispute515in court. A final order resulting from nonbinding arbitration is516final and enforceable in the courts if a complaint for trial de517novo is not filed in a court of competent jurisdiction within 30518days after entry of the order. As to any issue or dispute that519is not resolved at presuit mediation, and as to any issue that520is settled at presuit mediation but is thereafter subject to an521action seeking enforcement of the mediation settlement, the522prevailing party in any subsequent arbitration or litigation523proceeding shall be entitled to seek recovery of all costs and524attorney’s fees incurred in the presuit mediation process.525(d)A mediator or arbitrator shall be authorized to conduct526mediation or arbitration under this section only if he or she527has been certified as a circuit court civil mediator or528arbitrator, respectively, pursuant to the requirements529established by the Florida Supreme Court. Settlement agreements530resulting from mediation shall not have precedential value in531proceedings involving parties other than those participating in532the mediation to support either a claim or defense in other533disputes.534(e)The presuit mediation procedures provided by this535subsection may be used by a Florida corporation responsible for536the operation of a community in which the voting members are537parcel owners or their representatives, in which membership in538the corporation is not a mandatory condition of parcel539ownership, or which is not authorized to impose an assessment540that may become a lien on the parcel.541 Section 3. Subsection (1) of section 34.01, Florida 542 Statutes, is amended to read: 543 34.01 Jurisdiction of county court.— 544 (1) County courts shall have original jurisdiction: 545 (a) In all misdemeanor cases not cognizable by the circuit 546 courts; 547 (b) Of all violations of municipal and county ordinances; 548 (c) Of all actions at law in which the matter in 549 controversy does not exceed the sum of $15,000, exclusive of 550 interest, costs, and attorneyattorney’sfees, except those 551 within the exclusive jurisdiction of the circuit courts; and 552 (d) Of disputes occurring in the homeowners’ associations 553 as described in s. 720.311s. 720.311(2)(a), which shall be 554 concurrent with jurisdiction of the circuit courts. 555 Section 4. Subsection (16) of section 718.117, Florida 556 Statutes, is amended to read: 557 718.117 Termination of condominium.— 558 (16) RIGHT TO CONTEST.—A unit owner or lienor may contest a 559 plan of termination by initiating a petition for mandatory 560 nonbinding arbitration pursuant to s. 718.1255 within 90 days 561 after the date the plan is recorded. A unit owner or lienor may 562 only contest the fairness and reasonableness of the 563 apportionment of the proceeds from the sale among the unit 564 owners, that the liens of the first mortgages of unit owners 565 other than the bulk owner have not or will not be satisfied to 566 the extent required by subsection (3), or that the required vote 567 to approve the plan was not obtained. A unit owner or lienor who 568 does not contest the plan within the 90-day period is barred 569 from asserting or prosecuting a claim against the association, 570 the termination trustee, any unit owner, or any successor in 571 interest to the condominium property. In an action contesting a 572 plan of termination, the person contesting the plan has the 573 burden of pleading and proving that the apportionment of the 574 proceeds from the sale among the unit owners was not fair and 575 reasonable or that the required vote was not obtained. The 576 apportionment of sale proceeds is presumed fair and reasonable 577 if it was determined pursuant to the methods prescribed in 578 subsection (12). The community association hearing officer 579arbitratorshall determine the rights and interests of the 580 parties in the apportionment of the sale proceeds. If the 581 community association hearing officerarbitratordetermines that 582 the apportionment of sales proceeds is not fair and reasonable, 583 the community association hearing officerarbitratormay void 584 the plan or may modify the plan to apportion the proceeds in a 585 fair and reasonable manner pursuant to this section based upon 586 the proceedings and order the modified plan of termination to be 587 implemented. If the community association hearing officer 588arbitratordetermines that the plan was not properly approved, 589 or that the procedures to adopt the plan were not properly 590 followed, the community association hearing officerarbitrator591 may void the plan or grant other relief it deems just and 592 proper. The community association hearing officerarbitrator593 shall automatically void the plan upon a finding that any of the 594 disclosures required in subparagraph (3)(c)5. are omitted, 595 misleading, incomplete, or inaccurate. Any challenge to a plan, 596 other than a challenge that the required vote was not obtained, 597 does not affect title to the condominium property or the vesting 598 of the condominium property in the trustee, but shall only be a 599 claim against the proceeds of the plan. In any such action, the 600 prevailing party shall recover reasonable attorney fees and 601 costs. 602 Section 5. Paragraph (f) of subsection (1) of section 603 719.106, Florida Statutes, is amended to read: 604 719.106 Bylaws; cooperative ownership.— 605 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 606 documents shall provide for the following, and if they do not, 607 they shall be deemed to include the following: 608 (f) Recall of board members.—Subject to s. 719.301, any 609 member of the board of administration may be recalled and 610 removed from office with or without cause by the vote or 611 agreement in writing by a majority of all the voting interests. 612 A special meeting of the voting interests to recall any member 613 of the board of administration may be called by 10 percent of 614 the unit owners giving notice of the meeting as required for a 615 meeting of unit owners, and the notice shall state the purpose 616 of the meeting. Electronic transmission may not be used as a 617 method of giving notice of a meeting called in whole or in part 618 for this purpose. 619 1. If the recall is approved by a majority of all voting 620 interests by a vote at a meeting, the recall shall be effective 621 as provided in this paragraph. The board shall duly notice and 622 hold a board meeting within 5 full business days after the 623 adjournment of the unit owner meeting to recall one or more 624 board members. At the meeting, the board shall either certify 625 the recall, in which case such member or members shall be 626 recalled effective immediately and shall turn over to the board 627 within 5 full business days any and all records and property of 628 the association in their possession, or shall proceed as set 629 forth in subparagraph 3. 630 2. If the proposed recall is by an agreement in writing by 631 a majority of all voting interests, the agreement in writing or 632 a copy thereof shall be served on the association by certified 633 mail or by personal service in the manner authorized by chapter 634 48 and the Florida Rules of Civil Procedure. The board of 635 administration shall duly notice and hold a meeting of the board 636 within 5 full business days after receipt of the agreement in 637 writing. At the meeting, the board shall either certify the 638 written agreement to recall members of the board, in which case 639 such members shall be recalled effective immediately and shall 640 turn over to the board, within 5 full business days, any and all 641 records and property of the association in their possession, or 642 proceed as described in subparagraph 3. 643 3. If the board determines not to certify the written 644 agreement to recall members of the board, or does not certify 645 the recall by a vote at a meeting, the board shall, within 5 646 full business days after the board meeting, file with the 647 division a petition for binding arbitration pursuant to the 648 procedures of s. 719.1255. For purposes of this paragraph, the 649 unit owners who voted at the meeting or who executed the 650 agreement in writing shall constitute one party under the 651 petition for arbitration. If the community association hearing 652 officerarbitratorcertifies the recall as to any member of the 653 board, the recall shall be effective upon mailing of the final 654 order of arbitration to the association. If the association 655 fails to comply with the order of the community association 656 hearing officerarbitrator, the division may take action 657 pursuant to s. 719.501. Any member so recalled shall deliver to 658 the board any and all records and property of the association in 659 the member’s possession within 5 full business days after the 660 effective date of the recall. 661 4. If the board fails to duly notice and hold a board 662 meeting within 5 full business days after service of an 663 agreement in writing or within 5 full business days after the 664 adjournment of the unit owner recall meeting, the recall shall 665 be deemed effective and the board members so recalled shall 666 immediately turn over to the board any and all records and 667 property of the association. 668 5. If the board fails to duly notice and hold the required 669 meeting or fails to file the required petition, the unit owner 670 representative may file a petition pursuant to s. 719.1255 671 challenging the board’s failure to act. The petition must be 672 filed within 60 days after the expiration of the applicable 5 673 full-business-day period. The review of a petition under this 674 subparagraph is limited to the sufficiency of service on the 675 board and the facial validity of the written agreement or 676 ballots filed. 677 6. If a vacancy occurs on the board as a result of a recall 678 and less than a majority of the board members are removed, the 679 vacancy may be filled by the affirmative vote of a majority of 680 the remaining directors, notwithstanding any provision to the 681 contrary contained in this chapter. If vacancies occur on the 682 board as a result of a recall and a majority or more of the 683 board members are removed, the vacancies shall be filled in 684 accordance with procedural rules to be adopted by the division, 685 which rules need not be consistent with this chapter. The rules 686 must provide procedures governing the conduct of the recall 687 election as well as the operation of the association during the 688 period after a recall but before the recall election. 689 7. A board member who has been recalled may file a petition 690 pursuant to s. 719.1255 challenging the validity of the recall. 691 The petition must be filed within 60 days after the recall is 692 deemed certified. The association and the unit owner 693 representative shall be named as the respondents. 694 8. The division may not accept for filing a recall 695 petition, whether filed pursuant to subparagraph 1., 696 subparagraph 2., subparagraph 5., or subparagraph 7. and 697 regardless of whether the recall was certified, when there are 698 60 or fewer days until the scheduled reelection of the board 699 member sought to be recalled or when 60 or fewer days have not 700 elapsed since the election of the board member sought to be 701 recalled. 702 Section 6. Paragraph (d) of subsection (10) of section 703 720.303, Florida Statutes, is amended to read: 704 720.303 Association powers and duties; meetings of board; 705 official records; budgets; financial reporting; association 706 funds; recalls.— 707 (10) RECALL OF DIRECTORS.— 708 (d) If the board determines not to certify the written 709 agreement or written ballots to recall a director or directors 710 of the board or does not certify the recall by a vote at a 711 meeting, the board shall, within 5 full business days after the 712 meeting, file with the department a petition for binding 713 arbitration pursuant to the applicable procedures in ss. 714 718.112(2)(j) and 718.1255 and the rules adopted thereunder. For 715 the purposes of this section, the members who voted at the 716 meeting or who executed the agreement in writing shall 717 constitute one party under the petition for arbitration. If the 718 community association hearing officerarbitratorcertifies the 719 recall as to any director or directors of the board, the recall 720 will be effective upon mailing of the final order of arbitration 721 to the association. The director or directors so recalled shall 722 deliver to the board any and all records of the association in 723 their possession within 5 full business days after the effective 724 date of the recall. 725 Section 7. Paragraph (i) of subsection (2) of section 726 723.078, Florida Statutes, is amended to read: 727 723.078 Bylaws of homeowners’ associations.— 728 (2) The bylaws shall provide and, if they do not, shall be 729 deemed to include, the following provisions: 730 (i) Recall of board members.—Any member of the board of 731 directors may be recalled and removed from office with or 732 without cause by the vote of or agreement in writing by a 733 majority of all members. A special meeting of the members to 734 recall a member or members of the board of directors may be 735 called by 10 percent of the members giving notice of the meeting 736 as required for a meeting of members, and the notice shall state 737 the purpose of the meeting. Electronic transmission may not be 738 used as a method of giving notice of a meeting called in whole 739 or in part for this purpose. 740 1. If the recall is approved by a majority of all members 741 by a vote at a meeting, the recall is effective as provided in 742 this paragraph. The board shall duly notice and hold a board 743 meeting within 5 full business days after the adjournment of the 744 member meeting to recall one or more board members. At the 745 meeting, the board shall either certify the recall, in which 746 case such member or members shall be recalled effective 747 immediately and shall turn over to the board within 5 full 748 business days any and all records and property of the 749 association in their possession, or shall proceed under 750 subparagraph 3. 751 2. If the proposed recall is by an agreement in writing by 752 a majority of all members, the agreement in writing or a copy 753 thereof shall be served on the association by certified mail or 754 by personal service in the manner authorized by chapter 48 and 755 the Florida Rules of Civil Procedure. The board of directors 756 shall duly notice and hold a meeting of the board within 5 full 757 business days after receipt of the agreement in writing. At the 758 meeting, the board shall either certify the written agreement to 759 recall members of the board, in which case such members shall be 760 recalled effective immediately and shall turn over to the board, 761 within 5 full business days, any and all records and property of 762 the association in their possession, or shall proceed as 763 described in subparagraph 3. 764 3. If the board determines not to certify the written 765 agreement to recall members of the board, or does not certify 766 the recall by a vote at a meeting, the board shall, within 5 767 full business days after the board meeting, file with the 768 division a petition for binding arbitration pursuant to the 769 procedures of s. 723.1255. For purposes of this paragraph, the 770 members who voted at the meeting or who executed the agreement 771 in writing shall constitute one party under the petition for 772 arbitration. If the community association hearing officer 773arbitratorcertifies the recall of a member of the board, the 774 recall shall be effective upon mailing of the final order of 775 arbitration to the association. If the association fails to 776 comply with the order of the community association hearing 777 officerarbitrator, the division may take action under s. 778 723.006. A member so recalled shall deliver to the board any and 779 all records and property of the association in the member’s 780 possession within 5 full business days after the effective date 781 of the recall. 782 4. If the board fails to duly notice and hold a board 783 meeting within 5 full business days after service of an 784 agreement in writing or within 5 full business days after the 785 adjournment of the members’ recall meeting, the recall shall be 786 deemed effective and the board members so recalled shall 787 immediately turn over to the board all records and property of 788 the association. 789 5. If the board fails to duly notice and hold the required 790 meeting or fails to file the required petition, the member’s 791 representative may file a petition pursuant to s. 723.1255 792 challenging the board’s failure to act. The petition must be 793 filed within 60 days after expiration of the applicable 5-full 794 business-day period. The review of a petition under this 795 subparagraph is limited to the sufficiency of service on the 796 board and the facial validity of the written agreement or 797 ballots filed. 798 6. If a vacancy occurs on the board as a result of a recall 799 and less than a majority of the board members are removed, the 800 vacancy may be filled by the affirmative vote of a majority of 801 the remaining directors, notwithstanding any other provision of 802 this chapter. If vacancies occur on the board as a result of a 803 recall and a majority or more of the board members are removed, 804 the vacancies shall be filled in accordance with procedural 805 rules to be adopted by the division, which rules need not be 806 consistent with this chapter. The rules must provide procedures 807 governing the conduct of the recall election as well as the 808 operation of the association during the period after a recall 809 but before the recall election. 810 7. A board member who has been recalled may file a petition 811 pursuant to s. 723.1255 challenging the validity of the recall. 812 The petition must be filed within 60 days after the recall is 813 deemed certified. The association and the member’s 814 representative shall be named as the respondents. 815 8. The division may not accept for filing a recall 816 petition, whether or not filed pursuant to this subsection, and 817 regardless of whether the recall was certified, when there are 818 60 or fewer days until the scheduled reelection of the board 819 member sought to be recalled or when 60 or fewer days have not 820 elapsed since the election of the board member sought to be 821 recalled. 822 Section 8. This act shall take effect July 1, 2018.