September 19, 2019
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CS/CS/CS/HB 561

1
A bill to be entitled
2An act relating to community associations; amending s.
3399.02, F.S.; exempting certain elevators from specific
4code update requirements; providing a phase-in period for
5such elevators; amending s. 617.0721, F.S.; revising the
6limitations on the right of members to vote on corporate
7matters for certain corporations not for profit that are
8regulated under ch. 718 or ch. 719, F.S.; amending s.
9617.0808, F.S.; exempting certain corporations not for
10profit that are an association as defined in s. 720.301,
11F.S., or a corporation regulated under ch. 718 or ch. 719,
12F.S., from certain provisions relating to the removal of a
13director; creating s. 617.1606, F.S.; providing that
14certain statutory provisions providing for the inspection
15of corporate records do not apply to a corporation not for
16profit that is an association as defined in s. 720.301,
17F.S., or a corporation regulated under ch. 718 or ch. 719,
18F.S.; creating s. 627.714, F.S.; requiring that coverage
19under a condominium unit owner's policy for certain
20assessments include at least a minimum amount of loss
21assessment coverage; requiring that every property
22insurance policy to an individual condominium unit owner
23contain a specified provision; amending s. 633.0215, F.S.;
24exempting certain residential buildings from a requirement
25to install a manual fire alarm system; amending s.
26718.103, F.S.; redefining the term "developer"; amending
27s. 718.110, F.S.; allowing the condominium association to
28have the authority to restrict through an amendment to a
29declaration of condominium, rather than prohibit, the
30rental of condominium units; amending s. 718.111, F.S.;
31deleting a requirement for the board of a condominium to
32hold a meeting open to unit owners to establish the amount
33of an insurance deductible; revising the property to which
34a property insurance policy for a condominium association
35applies; revising the requirements for a condominium unit
36owner's property insurance policy; limiting the
37circumstances under which a person who violates
38requirements to maintain association records may be
39personally liable for a civil penalty; providing that a
40condominium association is not responsible for the use of
41certain information provided to an association member
42under certain circumstances; specifying records of a
43condominium association that are exempt from a requirement
44for records to be available for inspection by an
45association member; revising the requirements for rules
46relating to the financial report that must be adopted by
47the Division of Florida Condominiums, Timeshares, and
48Mobile Homes of the Department of Business and
49Professional Regulation; revising the requirements for a
50financial report based on the amount of a condominium's
51revenues; amending s. 718.112, F.S.; revising provisions
52relating to the terms of appointment or election of
53condominium members to a board of administration; creating
54exceptions to such provisions for condominiums that
55contain timeshares; specifying a certification that a
56person who is appointed or elected to a board of
57administration must make or educational requirements such
58board member must satisfy; conforming cross-references to
59changes made by the act; deleting a provision prohibiting
60an association from foregoing the retrofitting with a fire
61sprinkler system of common areas in a high-rise building;
62prohibiting local authorities having jurisdiction from
63requiring retrofitting with a sprinkler system or other
64engineered lifesafety system before a specified date;
65requiring an association that has not voted to forego
66retrofitting to file for a building permit by a certain
67date; authorizing an association to forgo retrofitting
68under certain circumstances; providing requirements for a
69special meeting of unit owners which may be called every 3
70years in order to vote to forgo retrofitting of the
71sprinkler system or other engineered lifesafety systems;
72providing meeting notice requirements; expanding the
73monetary obligations that a director or officer must
74satisfy to avoid abandoning his or her office; revising
75provisions relating to director or officer offenses;
76providing that a condominium association may expend moneys
77for neighborhood marketing activities; amending s.
78718.115, F.S.; specifying certain services provided in a
79declaration of condominium which are obtained pursuant to
80a bulk contract to be deemed a common expense; specifying
81provisions that must be contained in a bulk contract;
82specifying cancellation procedures for bulk contracts;
83amending s. 718.116, F.S.; increasing the liability of a
84first mortgagee or assignee of a first mortgagee for
85assessments owed at the time of a foreclosure sale;
86requiring a tenant in a unit owned by a person who is
87delinquent in the payment of a monetary obligation to the
88condominium association to pay rent to the association
89under certain circumstances; authorizing the condominium
90association to sue such tenant who fails to pay rent for
91eviction under certain circumstances; providing that the
92tenant is immune from claims from the unit owner as the
93result of paying rent to the association under certain
94circumstances; amending s. 718.117, F.S.; revising the
95circumstances under which a condominium association may be
96terminated due to economic waste or impossibility;
97revising provisions specifying the effect of a termination
98of condominium; amending s. 718.202, F.S.; providing that
99certain escrow funds may be maintained in a common escrow
100account; amending s. 718.301, F.S.; revising conditions
101under which unit owners other than the developer may elect
102at least a majority of the members of the board of
103administration of an association; amending s. 718.303,
104F.S.; authorizing an association to suspend for a
105reasonable time the right of a unit owner or the unit's
106occupant, licensee, or invitee to use certain common
107elements under certain circumstances; prohibiting a fine
108from being levied or a suspension from being imposed
109unless the association meets certain requirements for
110notice and provides an opportunity for a hearing;
111authorizing an association to suspend voting rights of a
112member due to nonpayment of assessments, fines, or other
113charges under certain circumstances; amending s. 718.501,
114F.S.; specifying that the jurisdiction of the Division of
115Florida Condominiums, Timeshares, and Mobile Homes
116includes bulk assignees and bulk buyers; creating part VII
117of ch. 718, F.S.; creating the "Distressed Condominium
118Relief Act"; providing legislative findings and intent;
119defining the terms "bulk assignee" and "bulk buyer";
120providing for the assignment of developer rights by a bulk
121assignee; specifying liabilities of bulk assignees and
122bulk buyers; providing exceptions; providing additional
123responsibilities of bulk assignees and bulk buyers;
124authorizing certain entities to assign developer rights to
125a bulk assignee; limiting the number of bulk assignees at
126any given time; providing for the transfer of control of a
127board of administration to unit owners; providing effects
128of such transfer on parcels acquired by a bulk assignee;
129providing obligations of a bulk assignee upon the transfer
130of control of a board of administration; requiring that a
131bulk assignee certify certain information in writing;
132providing for the resolution of a conflict between
133specified provisions of state law; providing that the
134failure of a bulk assignee or bulk buyer to comply with
135specified provisions of state law results in the loss of
136certain protections and exemptions; requiring that a bulk
137assignee or bulk buyer file certain information with the
138Division of Florida Condominiums, Timeshares, and Mobile
139Homes of the Department of Business and Professional
140Regulation before offering any units for sale or lease in
141excess of a specified term; requiring that a copy of such
142information be provided to a prospective purchaser or
143tenant; requiring that certain contracts and disclosure
144statements contain specified statements; requiring that a
145bulk assignee or bulk buyer comply with certain disclosure
146requirements; prohibiting a bulk assignee from authorizing
147certain actions on behalf of an association while the bulk
148assignee is in control of the board of administration of
149the association; requiring that a bulk assignee or bulk
150buyer comply with certain laws with respect to contracts
151entered into by the association while the bulk assignee or
152bulk buyer was in control of the board of administration;
153providing parcel owners with specified protections
154regarding certain contracts; requiring that a bulk buyer
155comply with certain requirements regarding the transfer of
156a parcel; prohibiting a person from being classified as a
157bulk assignee or bulk buyer unless condominium parcels
158were acquired before a specified date; providing that the
159assignment of developer rights to a bulk assignee does not
160release a developer from certain liabilities; amending s.
161719.106, F.S.; providing for the filling of vacancies on
162the board of administration of a cooperative; amending s.
163719.1055, F.S.; providing an additional required provision
164in cooperative bylaws; deleting a provision prohibiting an
165association from foregoing the retrofitting with a fire
166sprinkler system of common areas in a high-rise building;
167prohibiting local authorities having jurisdiction from
168requiring retrofitting with a sprinkler system or other
169engineered lifesafety system before a specified date;
170providing requirements for a special meeting of unit
171owners which may be called every 3 years in order to vote
172to require retrofitting of the sprinkler system or other
173engineered lifesafety system; providing meeting notice
174requirements; amending s. 719.108, F.S.; providing for a
175lien by an association on a cooperative unit for certain
176fees and costs; providing procedures and notice
177requirements for the filing of a lien by an association;
178requiring a tenant in a unit owned by a person who is
179delinquent in the payment of a monetary obligation to the
180cooperative association to pay rent to the association
181under certain circumstances; amending s. 720.303, F.S.;
182revising provisions relating to homeowners' association
183board meetings, inspection and copying of records, and
184reserve accounts of budgets; expanding the list of
185association records that are not accessible to members and
186parcel owners; prohibiting certain association personnel
187from receiving a salary or compensation; providing
188exceptions; amending s. 720.304, F.S.; providing that a
189flagpole and any flagpole display are subject to certain
190codes and regulations; amending s. 720.305, F.S.;
191authorizing a homeowners' association to suspend rights to
192use common areas and facilities if the member is
193delinquent on the payment of a monetary obligation due for
194a certain period of time; providing procedures and notice
195requirements for levying a fine or imposing a suspension;
196amending s. 720.306, F.S.; providing requirements for
197secret ballots; providing procedures for filling a vacancy
198on the board of directors of a homeowners' association;
199amending s. 720.3085, F.S.; requiring a tenant in a
200property owned by a person who is delinquent in the
201payment of a monetary obligation to the homeowners'
202association to pay rent to the association under certain
203circumstances; amending s. 720.31, F.S.; authorizing an
204association to enter into certain agreements to use lands
205or facilities; requiring that certain items be stated and
206fully described in the declaration; limiting an
207association's power to enter into such agreements after a
208specified period following the recording of a declaration;
209requiring that certain agreements be approved by a
210specified percentage of voting interests of an association
211when the declaration is silent as to the authority of an
212association to enter into such agreement; authorizing an
213association to join with other associations or a master
214association under certain circumstances and for specified
215purposes; creating s. 720.315, F.S.; prohibiting the board
216of directors of a homeowners' association from levying a
217special assessment before turnover of the association by
218the developer unless certain conditions are met; providing
219an effective date.
220
221Be It Enacted by the Legislature of the State of Florida:
222
223     Section 1.  Subsection (8) is added to section 399.02,
224Florida Statutes, to read:
225     399.02  General requirements.-
226     (8)  Updates to the code requiring modifications for Phase
227II Firefighters' Service on existing elevators, as amended into
228the Safety Code for Existing Elevators and Escalators, ASME
229A17.1 and A17.3, may not be enforced on elevators in
230condominiums, cooperatives, or multifamily residential buildings
231issued a certificate of occupancy by the local building
232authority as of July 1, 2008, for 5 years or until the elevator
233is replaced or requires major modification, whichever occurs
234first. This exception does not apply to a building for which a
235certificate of occupancy was issued after July 1, 2008. This
236exception does not prevent an elevator owner from requesting a
237variance from the applicable codes before or after the
238expiration of the 5-year term. This subsection does not prohibit
239the division from granting variances pursuant to s. 120.542. The
240division shall adopt rules to administer this subsection.
241     Section 2.  Subsection (7) of section 617.0721, Florida
242Statutes, is amended to read:
243     617.0721  Voting by members.-
244     (7)  Subsections (1), (2), (5), and (6) do not apply to a
245corporation that is an association, as defined in s. 720.301, or
246a corporation regulated by chapter 718 or chapter 719.
247     Section 3.  Subsection (3) is added to section 617.0808,
248Florida Statutes, to read:
249     617.0808  Removal of directors.-
250     (3)  This section does not apply to any corporation that is
251an association, as defined in s. 720.301, or a corporation
252regulated under chapter 718 or chapter 719.
253     Section 4.  Section 617.1606, Florida Statutes, is created
254to read:
255     617.1606  Access to records.-Sections 617.1601-617.1605 do
256not apply to a corporation that is an association, as defined in
257s. 720.301, or a corporation regulated under chapter 718 or
258chapter 719.
259     Section 5.  Section 627.714, Florida Statutes, is created
260to read:
261     627.714  Residential condominium unit owner coverage; loss
262assessment coverage required.-For policies issued or renewed on
263or after July 1, 2010, coverage under a condominium unit owner's
264residential property policy must include at least $2,000 in
265property loss assessment coverage for all assessments made as a
266result of the same direct loss to the property, regardless of
267the number of assessments, owned by all members of the
268association collectively if such loss is of the type of loss
269covered by the unit owner's residential property insurance
270policy, to which a deductible of no more than $250 per direct
271property loss applies. If a deductible was or will be applied to
272other property loss sustained by the unit owner resulting from
273the same direct loss to the property, no deductible applies to
274the loss assessment coverage. The maximum amount of any
275condominium unit owner's loss assessment coverage that can be
276assessed for any loss shall be an amount equal to that unit
277owner's loss assessment coverage limit that was in effect 1 day
278before the date of the occurrence. Any changes to the limits of
279a condominium unit owner's coverage for loss assessments that
280are made on or after 1 day before the date that the loss occurs
281shall not be applicable to that loss. Regardless of the number
282of assessments, an insurer providing loss assessment coverage to
283a condominium unit owner is not required to pay more than an
284amount equal to that unit owner's loss assessment coverage limit
285as a result of the same direct loss to property. Every
286individual condominium unit owner's residential property policy
287must contain a provision stating that the coverage afforded by
288such policy is excess coverage over the amount recoverable under
289any other policy covering the same property.
290     Section 6.  Subsection (13) is added to section 633.0215,
291Florida Statutes, to read:
292     633.0215  Florida Fire Prevention Code.-
293     (13)  A condominium, cooperative, or multifamily
294residential building that is less than four stories in height
295and has a corridor providing an exterior means of egress is
296exempt from the requirement to install a manual fire alarm
297system under s. 9.6 of the Life Safety Code adopted in the
298Florida Fire Prevention Code.
299     Section 7.  Subsection (16) of section 718.103, Florida
300Statutes, is amended to read:
301     718.103  Definitions.-As used in this chapter, the term:
302     (16)  "Developer" means a person who creates a condominium
303or offers condominium parcels for sale or lease in the ordinary
304course of business, but does not include:
305     (a)  An owner or lessee of a condominium or cooperative
306unit who has acquired the unit for his or her own occupancy;,
307nor does it include
308     (b)  A cooperative association that which creates a
309condominium by conversion of an existing residential cooperative
310after control of the association has been transferred to the
311unit owners if, following the conversion, the unit owners are
312will be the same persons who were unit owners of the cooperative
313and no units are offered for sale or lease to the public as part
314of the plan of conversion;.
315     (c)  A bulk assignee or bulk buyer as defined in s.
316718.703; or
317     (d)  A state, county, or municipal entity is not a
318developer for any purposes under this act when it is acting as a
319lessor and not otherwise named as a developer in the declaration
320of condominium association.
321     Section 8.  Subsection (13) of section 718.110, Florida
322Statutes, is amended to read:
323     718.110  Amendment of declaration; correction of error or
324omission in declaration by circuit court.-
325     (13)  An Any amendment prohibiting restricting unit owners
326from renting their units or altering the duration of the rental
327term or specifying or limiting the number of times unit owners
328are entitled to rent their units during a specified period
329owners' rights relating to the rental of units applies only to
330unit owners who consent to the amendment and unit owners who
331acquire title to purchase their units after the effective date
332of that amendment.
333     Section 9.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
334and (n) of subsection (11) and subsections (12) and (13) of
335section 718.111, Florida Statutes, are amended to read:
336     718.111  The association.-
337     (11)  INSURANCE.-In order to protect the safety, health,
338and welfare of the people of the State of Florida and to ensure
339consistency in the provision of insurance coverage to
340condominiums and their unit owners, this subsection applies to
341every residential condominium in the state, regardless of the
342date of its declaration of condominium. It is the intent of the
343Legislature to encourage lower or stable insurance premiums for
344associations described in this subsection.
345     (a)  Adequate property hazard insurance, regardless of any
346requirement in the declaration of condominium for coverage by
347the association for full insurable value, replacement cost, or
348similar coverage, must shall be based on upon the replacement
349cost of the property to be insured as determined by an
350independent insurance appraisal or update of a prior appraisal.
351The replacement cost must full insurable value shall be
352determined at least once every 36 months.
353     1.  An association or group of associations may provide
354adequate property hazard insurance through a self-insurance fund
355that complies with the requirements of ss. 624.460-624.488.
356     2.  The association may also provide adequate property
357hazard insurance coverage for a group of at least no fewer than
358three communities created and operating under this chapter,
359chapter 719, chapter 720, or chapter 721 by obtaining and
360maintaining for such communities insurance coverage sufficient
361to cover an amount equal to the probable maximum loss for the
362communities for a 250-year windstorm event. Such probable
363maximum loss must be determined through the use of a competent
364model that has been accepted by the Florida Commission on
365Hurricane Loss Projection Methodology. A No policy or program
366providing such coverage may not shall be issued or renewed after
367July 1, 2008, unless it has been reviewed and approved by the
368Office of Insurance Regulation. The review and approval must
369shall include approval of the policy and related forms pursuant
370to ss. 627.410 and 627.411, approval of the rates pursuant to s.
371627.062, a determination that the loss model approved by the
372commission was accurately and appropriately applied to the
373insured structures to determine the 250-year probable maximum
374loss, and a determination that complete and accurate disclosure
375of all material provisions is provided to condominium unit
376owners before prior to execution of the agreement by a
377condominium association.
378     3.  When determining the adequate amount of property hazard
379insurance coverage, the association may consider deductibles as
380determined by this subsection.
381     (b)  If an association is a developer-controlled
382association, the association shall exercise its best efforts to
383obtain and maintain insurance as described in paragraph (a).
384Failure to obtain and maintain adequate property hazard
385insurance during any period of developer control constitutes a
386breach of fiduciary responsibility by the developer-appointed
387members of the board of directors of the association, unless the
388members can show that despite such failure, they have made their
389best efforts to maintain the required coverage.
390     (c)  Policies may include deductibles as determined by the
391board.
392     1.  The deductibles must shall be consistent with industry
393standards and prevailing practice for communities of similar
394size and age, and having similar construction and facilities in
395the locale where the condominium property is situated.
396     2.  The deductibles may be based upon available funds,
397including reserve accounts, or predetermined assessment
398authority at the time the insurance is obtained.
399     3.  The board shall establish the amount of deductibles
400based upon the level of available funds and predetermined
401assessment authority at a meeting of the board. Such meeting
402shall be open to all unit owners in the manner set forth in s.
403718.112(2)(e). The notice of such meeting must state the
404proposed deductible and the available funds and the assessment
405authority relied upon by the board and estimate any potential
406assessment amount against each unit, if any. The meeting
407described in this paragraph may be held in conjunction with a
408meeting to consider the proposed budget or an amendment thereto.
409     (d)  An association controlled by unit owners operating as
410a residential condominium shall use its best efforts to obtain
411and maintain adequate property insurance to protect the
412association, the association property, the common elements, and
413the condominium property that must is required to be insured by
414the association pursuant to this subsection.
415     (f)  Every property hazard insurance policy issued or
416renewed on or after January 1, 2009, for the purpose of
417protecting the condominium must shall provide primary coverage
418for:
419     1.  All portions of the condominium property as originally
420installed or replacement of like kind and quality, in accordance
421with the original plans and specifications.
422     2.  All alterations or additions made to the condominium
423property or association property pursuant to s. 718.113(2).
424     3.  The coverage must shall exclude all personal property
425within the unit or limited common elements, and floor, wall, and
426ceiling coverings, electrical fixtures, appliances, water
427heaters, water filters, built-in cabinets and countertops, and
428window treatments, including curtains, drapes, blinds, hardware,
429and similar window treatment components, or replacements of any
430of the foregoing which are located within the boundaries of the
431unit and serve only such unit. Such property and any insurance
432thereupon is the responsibility of the unit owner.
433     (g)  A condominium unit owner's policy must conform to the
434requirements of s. 627.714. Every hazard insurance policy issued
435or renewed on or after January 1, 2009, to an individual unit
436owner must contain a provision stating that the coverage
437afforded by such policy is excess coverage over the amount
438recoverable under any other policy covering the same property.
439Such policies must include special assessment coverage of no
440less than $2,000 per occurrence. An insurance policy issued to
441an individual unit owner providing such coverage does not
442provide rights of subrogation against the condominium
443association operating the condominium in which such individual's
444unit is located.
445     1.  All improvements or additions to the condominium
446property that benefit fewer than all unit owners shall be
447insured by the unit owner or owners having the use thereof, or
448may be insured by the association at the cost and expense of the
449unit owners having the use thereof.
450     2.  The association shall require each owner to provide
451evidence of a currently effective policy of hazard and liability
452insurance upon request, but not more than once per year. Upon
453the failure of an owner to provide a certificate of insurance
454issued by an insurer approved to write such insurance in this
455state within 30 days after the date on which a written request
456is delivered, the association may purchase a policy of insurance
457on behalf of an owner. The cost of such a policy, together with
458reconstruction costs undertaken by the association but which are
459the responsibility of the unit owner, may be collected in the
460manner provided for the collection of assessments in s. 718.116.
461     1.3.  All reconstruction work after a property casualty
462loss must shall be undertaken by the association except as
463otherwise authorized in this section. A unit owner may undertake
464reconstruction work on portions of the unit with the prior
465written consent of the board of administration. However, such
466work may be conditioned upon the approval of the repair methods,
467the qualifications of the proposed contractor, or the contract
468that is used for that purpose. A unit owner must shall obtain
469all required governmental permits and approvals before prior to
470commencing reconstruction.
471     2.4.  Unit owners are responsible for the cost of
472reconstruction of any portions of the condominium property for
473which the unit owner is required to carry property casualty
474insurance, and any such reconstruction work undertaken by the
475association is shall be chargeable to the unit owner and
476enforceable as an assessment pursuant to s. 718.116. The
477association must be an additional named insured and loss payee
478on all casualty insurance policies issued to unit owners in the
479condominium operated by the association.
480     3.5.  A multicondominium association may elect, by a
481majority vote of the collective members of the condominiums
482operated by the association, to operate the such condominiums as
483a single condominium for purposes of insurance matters,
484including, but not limited to, the purchase of the property
485hazard insurance required by this section and the apportionment
486of deductibles and damages in excess of coverage. The election
487to aggregate the treatment of insurance premiums, deductibles,
488and excess damages constitutes an amendment to the declaration
489of all condominiums operated by the association, and the costs
490of insurance must shall be stated in the association budget. The
491amendments must shall be recorded as required by s. 718.110.
492     (j)  Any portion of the condominium property that must
493required to be insured by the association against property
494casualty loss pursuant to paragraph (f) which is damaged by
495casualty shall be reconstructed, repaired, or replaced as
496necessary by the association as a common expense. All property
497hazard insurance deductibles, uninsured losses, and other
498damages in excess of property hazard insurance coverage under
499the property hazard insurance policies maintained by the
500association are a common expense of the condominium, except
501that:
502     1.  A unit owner is responsible for the costs of repair or
503replacement of any portion of the condominium property not paid
504by insurance proceeds, if such damage is caused by intentional
505conduct, negligence, or failure to comply with the terms of the
506declaration or the rules of the association by a unit owner, the
507members of his or her family, unit occupants, tenants, guests,
508or invitees, without compromise of the subrogation rights of the
509any insurer as set forth in paragraph (g).
510     2.  The provisions of subparagraph 1. regarding the
511financial responsibility of a unit owner for the costs of
512repairing or replacing other portions of the condominium
513property also apply to the costs of repair or replacement of
514personal property of other unit owners or the association, as
515well as other property, whether real or personal, which the unit
516owners are required to insure under paragraph (g).
517     3.  To the extent the cost of repair or reconstruction for
518which the unit owner is responsible under this paragraph is
519reimbursed to the association by insurance proceeds, and, to the
520extent the association has collected the cost of such repair or
521reconstruction from the unit owner, the association shall
522reimburse the unit owner without the waiver of any rights of
523subrogation.
524     4.  The association is not obligated to pay for
525reconstruction or repairs of property casualty losses as a
526common expense if the property casualty losses were known or
527should have been known to a unit owner and were not reported to
528the association until after the insurance claim of the
529association for that property casualty was settled or resolved
530with finality, or denied because on the basis that it was
531untimely filed.
532     (n)  The association is not obligated to pay for any
533reconstruction or repair expenses due to property casualty loss
534to any improvements installed by a current or former owner of
535the unit or by the developer if the improvement benefits only
536the unit for which it was installed and is not part of the
537standard improvements installed by the developer on all units as
538part of original construction, whether or not such improvement
539is located within the unit. This paragraph does not relieve any
540party of its obligations regarding recovery due under any
541insurance implemented specifically for any such improvements.
542     (12)  OFFICIAL RECORDS.-
543     (a)  From the inception of the association, the association
544shall maintain each of the following items, if when applicable,
545which shall constitute the official records of the association:
546     1.  A copy of the plans, permits, warranties, and other
547items provided by the developer pursuant to s. 718.301(4).
548     2.  A photocopy of the recorded declaration of condominium
549of each condominium operated by the association and of each
550amendment to each declaration.
551     3.  A photocopy of the recorded bylaws of the association
552and of each amendment to the bylaws.
553     4.  A certified copy of the articles of incorporation of
554the association, or other documents creating the association,
555and of each amendment thereto.
556     5.  A copy of the current rules of the association.
557     6.  A book or books which contain the minutes of all
558meetings of the association, of the board of administration, and
559of unit owners, which minutes must shall be retained for at
560least a period of not less than 7 years.
561     7.  A current roster of all unit owners and their mailing
562addresses, unit identifications, voting certifications, and, if
563known, telephone numbers. The association shall also maintain
564the electronic mailing addresses and the numbers designated by
565unit owners for receiving notice sent by electronic transmission
566of those unit owners consenting to receive notice by electronic
567transmission. The electronic mailing addresses and telephone
568numbers must provided by unit owners to receive notice by
569electronic transmission shall be removed from association
570records if when consent to receive notice by electronic
571transmission is revoked. However, the association is not liable
572for an erroneous disclosure of the electronic mail address or
573the number for receiving electronic transmission of notices.
574     8.  All current insurance policies of the association and
575condominiums operated by the association.
576     9.  A current copy of any management agreement, lease, or
577other contract to which the association is a party or under
578which the association or the unit owners have an obligation or
579responsibility.
580     10.  Bills of sale or transfer for all property owned by
581the association.
582     11.  Accounting records for the association and separate
583accounting records for each condominium which the association
584operates. All accounting records shall be maintained for at
585least a period of not less than 7 years. Any person who
586knowingly or intentionally defaces or destroys accounting
587records required to be created and maintained by this chapter
588during the period for which such records are required to be
589maintained, or who knowingly or intentionally fails to create or
590maintain such accounting records required to be maintained by
591this chapter, with the intent of causing harm to the association
592or one or more of its members, is personally subject to a civil
593penalty pursuant to s. 718.501(1)(d). The accounting records
594must shall include, but are not limited to:
595     a.  Accurate, itemized, and detailed records of all
596receipts and expenditures.
597     b.  A current account and a monthly, bimonthly, or
598quarterly statement of the account for each unit designating the
599name of the unit owner, the due date and amount of each
600assessment, the amount paid upon the account, and the balance
601due.
602     c.  All audits, reviews, accounting statements, and
603financial reports of the association or condominium.
604     d.  All contracts for work to be performed. Bids for work
605to be performed are shall also be considered official records
606and must shall be maintained by the association.
607     12.  Ballots, sign-in sheets, voting proxies, and all other
608papers relating to voting by unit owners, which must shall be
609maintained for a period of 1 year from the date of the election,
610vote, or meeting to which the document relates, notwithstanding
611paragraph (b).
612     13.  All rental records if, when the association is acting
613as agent for the rental of condominium units.
614     14.  A copy of the current question and answer sheet as
615described in by s. 718.504.
616     15.  All other records of the association not specifically
617included in the foregoing which are related to the operation of
618the association.
619     16.  A copy of the inspection report as provided for in s.
620718.301(4)(p).
621     (b)  The official records of the association must shall be
622maintained within the state for at least 7 years. The records of
623the association shall be made available to a unit owner within
62445 miles of the condominium property or within the county in
625which the condominium property is located within 5 working days
626after receipt of a written request by the board or its designee.
627However, such distance requirement does not apply to an
628association governing a timeshare condominium. This paragraph
629may be complied with by having a copy of the official records of
630the association available for inspection or copying on the
631condominium property or association property, or the association
632may offer the option of making the records of the association
633available to a unit owner either electronically via the Internet
634or by allowing the records to be viewed in electronic format on
635a computer screen and printed upon request. The association is
636not responsible for the use or misuse of the information
637provided to an association member or his or her authorized
638representative pursuant to the compliance requirements of this
639chapter unless the association has an affirmative duty not to
640disclose such information pursuant to this chapter.
641     (c)  The official records of the association are open to
642inspection by any association member or the authorized
643representative of such member at all reasonable times. The right
644to inspect the records includes the right to make or obtain
645copies, at the reasonable expense, if any, of the association
646member. The association may adopt reasonable rules regarding the
647frequency, time, location, notice, and manner of record
648inspections and copying. The failure of an association to
649provide the records within 10 working days after receipt of a
650written request creates shall create a rebuttable presumption
651that the association willfully failed to comply with this
652paragraph. A unit owner who is denied access to official records
653is entitled to the actual damages or minimum damages for the
654association's willful failure to comply with this paragraph. The
655Minimum damages shall be $50 per calendar day up to 10 days, the
656calculation to begin on the 11th working day after receipt of
657the written request. The failure to permit inspection of the
658association records as provided herein entitles any person
659prevailing in an enforcement action to recover reasonable
660attorney's fees from the person in control of the records who,
661directly or indirectly, knowingly denied access to the records
662for inspection. Any person who knowingly or intentionally
663defaces or destroys accounting records that are required by this
664chapter to be maintained during the period for which such
665records are required to be maintained, or who knowingly or
666intentionally fails to create or maintain accounting records
667that are required to be created or maintained by this chapter,
668with the intent of causing harm to the association or one or
669more of its members, is personally subject to a civil penalty
670pursuant to s. 718.501(1)(d). The association shall maintain an
671adequate number of copies of the declaration, articles of
672incorporation, bylaws, and rules, and all amendments to each of
673the foregoing, as well as the question and answer sheet provided
674for in s. 718.504 and year-end financial information required in
675this section, on the condominium property to ensure their
676availability to unit owners and prospective purchasers, and may
677charge its actual costs for preparing and furnishing these
678documents to those requesting the documents same.
679Notwithstanding the provisions of this paragraph, the following
680records are shall not be accessible to unit owners:
681     1.  Any record protected by the lawyer-client privilege as
682described in s. 90.502; and any record protected by the work-
683product privilege, including any record prepared by an
684association attorney or prepared at the attorney's express
685direction; which reflects a mental impression, conclusion,
686litigation strategy, or legal theory of the attorney or the
687association, and which was prepared exclusively for civil or
688criminal litigation or for adversarial administrative
689proceedings, or which was prepared in anticipation of imminent
690civil or criminal litigation or imminent adversarial
691administrative proceedings until the conclusion of the
692litigation or adversarial administrative proceedings.
693     2.  Information obtained by an association in connection
694with the approval of the lease, sale, or other transfer of a
695unit.
696     3.  Personnel records of association employees, including,
697but not limited to, disciplinary, payroll, health, and insurance
698records.
699     4.3.  Medical records of unit owners.
700     5.4.  Social security numbers, driver's license numbers,
701credit card numbers, e-mail addresses, telephone numbers,
702emergency contact information, any addresses of a unit owner
703other than as provided to fulfill the association's notice
704requirements, and other personal identifying information of any
705person, excluding the person's name, unit designation, mailing
706address, and property address.
707     6.  Any electronic security measure that is used by the
708association to safeguard data, including passwords.
709     7.  The software and operating system used by the
710association which allows manipulation of data, even if the owner
711owns a copy of the same software used by the association. The
712data is part of the official records of the association.
713     (d)  The association shall prepare a question and answer
714sheet as described in s. 718.504, and shall update it annually.
715     (e)1.  The association or its authorized agent is not
716required to provide a prospective purchaser or lienholder with
717information about the condominium or the association other than
718information or documents required by this chapter to be made
719available or disclosed. The association or its authorized agent
720may charge a reasonable fee to the prospective purchaser,
721lienholder, or the current unit owner for providing good faith
722responses to requests for information by or on behalf of a
723prospective purchaser or lienholder, other than that required by
724law, if the fee does not exceed $150 plus the reasonable cost of
725photocopying and any attorney's fees incurred by the association
726in connection with the response.
727     2.  An association and its authorized agent are not liable
728for providing such information in good faith pursuant to a
729written request if the person providing the information includes
730a written statement in substantially the following form: "The
731responses herein are made in good faith and to the best of my
732ability as to their accuracy."
733     (13)  FINANCIAL REPORTING.-Within 90 days after the end of
734the fiscal year, or annually on a date provided in the bylaws,
735the association shall prepare and complete, or contract for the
736preparation and completion of, a financial report for the
737preceding fiscal year. Within 21 days after the final financial
738report is completed by the association or received from the
739third party, but not later than 120 days after the end of the
740fiscal year or other date as provided in the bylaws, the
741association shall mail to each unit owner at the address last
742furnished to the association by the unit owner, or hand deliver
743to each unit owner, a copy of the financial report or a notice
744that a copy of the financial report will be mailed or hand
745delivered to the unit owner, without charge, upon receipt of a
746written request from the unit owner. The division shall adopt
747rules setting forth uniform accounting principles and standards
748to be used by all associations and shall adopt rules addressing
749the financial reporting requirements for multicondominium
750associations. The rules must shall include, but not be limited
751to, standards for presenting a summary of association reserves,
752including a good faith estimate disclosing the annual amount of
753reserve funds that would be necessary for the association to
754fully fund reserves for each reserve item based on the straight-
755line accounting method. This disclosure is not applicable to
756reserves funded via the pooling method. uniform accounting
757principles and standards for stating the disclosure
758a summary of the reserves, including information as
759such reserves are being funded at a level sufficient
760the need for a special assessment and, if not, the amount of
761assessments necessary to bring the reserves up to the level
762necessary to avoid a special assessment. The person preparing
763the financial reports shall be entitled to rely on an inspection
764report prepared for or provided to the association to meet the
765fiscal and fiduciary standards of this chapter. In adopting such
766rules, the division shall consider the number of members and
767annual revenues of an association. Financial reports shall be
768prepared as follows:
769     (a)  An association that meets the criteria of this
770paragraph shall prepare or cause to be prepared a complete set
771of financial statements in accordance with generally accepted
772accounting principles. The financial statements must shall be
773based upon the association's total annual revenues, as follows:
774     1.  An association with total annual revenues of $100,000
775or more, but less than $200,000, shall prepare compiled
776financial statements.
777     2.  An association with total annual revenues of at least
778$200,000, but less than $400,000, shall prepare reviewed
779financial statements.
780     3.  An association with total annual revenues of $400,000
781or more shall prepare audited financial statements.
782     (b)1.  An association with total annual revenues of less
783than $100,000 shall prepare a report of cash receipts and
784expenditures.
785     2.  An association that which operates fewer less than 75
78650 units, regardless of the association's annual revenues, shall
787prepare a report of cash receipts and expenditures in lieu of
788financial statements required by paragraph (a).
789     3.  A report of cash receipts and disbursements must
790disclose the amount of receipts by accounts and receipt
791classifications and the amount of expenses by accounts and
792expense classifications, including, but not limited to, the
793following, as applicable: costs for security, professional and
794management fees and expenses, taxes, costs for recreation
795facilities, expenses for refuse collection and utility services,
796expenses for lawn care, costs for building maintenance and
797repair, insurance costs, administration and salary expenses, and
798reserves accumulated and expended for capital expenditures,
799deferred maintenance, and any other category for which the
800association maintains reserves.
801     (c)  An association may prepare or cause to be prepared,
802without a meeting of or approval by the unit owners:
803     1.  Compiled, reviewed, or audited financial statements, if
804the association is required to prepare a report of cash receipts
805and expenditures;
806     2.  Reviewed or audited financial statements, if the
807association is required to prepare compiled financial
808statements; or
809     3.  Audited financial statements if the association is
810required to prepare reviewed financial statements.
811     (d)  If approved by a majority of the voting interests
812present at a properly called meeting of the association, an
813association may prepare or cause to be prepared:
814     1.  A report of cash receipts and expenditures in lieu of a
815compiled, reviewed, or audited financial statement;
816     2.  A report of cash receipts and expenditures or a
817compiled financial statement in lieu of a reviewed or audited
818financial statement; or
819     3.  A report of cash receipts and expenditures, a compiled
820financial statement, or a reviewed financial statement in lieu
821of an audited financial statement.
822
823Such meeting and approval must occur before prior to the end of
824the fiscal year and is effective only for the fiscal year in
825which the vote is taken, except that the approval may also may
826be effective for the following fiscal year. With respect to an
827association to which the developer has not turned over control
828of the association, all unit owners, including the developer,
829may vote on issues related to the preparation of financial
830reports for the first 2 fiscal years of the association's
831operation, beginning with the fiscal year in which the
832declaration is recorded. Thereafter, all unit owners except the
833developer may vote on such issues until control is turned over
834to the association by the developer. Any audit or review
835prepared under this section shall be paid for by the developer
836if done before prior to turnover of control of the association.
837An association may not waive the financial reporting
838requirements of this section for more than 3 consecutive years.
839     Section 10.  Paragraphs (d), (l), (n), and (o) of
840subsection (2) of section 718.112, Florida Statutes, are
841amended, and paragraph (e) is added to subsection (3) of that
842section, to read:
843     718.112  Bylaws.-
844     (2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
845following and, if they do not do so, shall be deemed to include
846the following:
847     (d)  Unit owner meetings.-
848     1.  There shall be An annual meeting of the unit owners
849shall be held at the location provided in the association bylaws
850and, if the bylaws are silent as to the location, the meeting
851shall be held within 45 miles of the condominium property.
852However, such distance requirement does not apply to an
853association governing a timeshare condominium. Unless the bylaws
854provide otherwise, a vacancy on the board caused by the
855expiration of a director's term shall be filled by electing a
856new board member, and the election must shall be by secret
857ballot.; However, if the number of vacancies equals or exceeds
858the number of candidates, an no election is not required. Except
859in a timeshare condominium, the terms of all members of the
860board shall expire at the annual meeting and such board members
861may stand for reelection unless otherwise permitted by the
862bylaws. If In the event that the bylaws permit staggered terms
863of no more than 2 years and upon approval of a majority of the
864total voting interests, the association board members may serve
8652-year staggered terms. If the number of board members whose
866terms have expired exceeds the number of eligible members
867showing interest in or demonstrating an intention to run for the
868vacant positions no person is interested in or demonstrates an
869intention to run for the position of a board
870has expired according to the provisions of
871each such board member whose term has expired
872reappointment shall be automatically reappointed to the board of
873administration and need not stand for reelection. In a
874condominium association of more than 10 units or in a
875condominium association that does not include timeshare units or
876timeshare interests, coowners of a unit may not serve as members
877of the board of directors at the same time unless they own more
878than one unit or unless there are not enough eligible candidates
879to fill the vacancies on the board at the time of the vacancy.
880Any unit owner desiring to be a candidate for board membership
881must shall comply with sub-subparagraph subparagraph 3.a. A
882person who has been suspended or removed by the division under
883this chapter, or who is delinquent in the payment of any fee,
884fine, or special or regular assessment as provided in paragraph
885(n), is not eligible for board membership. A person who has been
886convicted of any felony in this state or in a United States
887District or Territorial Court, or who has been convicted of any
888offense in another jurisdiction that would be considered a
889felony if committed in this state, is not eligible for board
890membership unless such felon's civil rights have been restored
891for at least a period of no less than 5 years as of the date on
892which such person seeks election to the board. The validity of
893an action by the board is not affected if it is later determined
894that a member of the board is ineligible for board membership
895due to having been convicted of a felony.
896     2.  The bylaws must shall provide the method of calling
897meetings of unit owners, including annual meetings. Written
898notice, which notice must include an agenda, shall be mailed,
899hand delivered, or electronically transmitted to each unit owner
900at least 14 days before prior to the annual meeting and must
901shall be posted in a conspicuous place on the condominium
902property at least 14 continuous days preceding the annual
903meeting. Upon notice to the unit owners, the board shall, by
904duly adopted rule, designate a specific location on the
905condominium property or association property upon which all
906notices of unit owner meetings shall be posted.; However, if
907there is no condominium property or association property upon
908which notices can be posted, this requirement does not apply. In
909lieu of or in addition to the physical posting of meeting
910notices notice of any meeting of the unit owners on the
911condominium property, the association may, by reasonable rule,
912adopt a procedure for conspicuously posting and repeatedly
913broadcasting the notice and the agenda on a closed-circuit cable
914television system serving the condominium association. However,
915if broadcast notice is used in lieu of a notice posted
916physically on the condominium property, the notice and agenda
917must be broadcast at least four times every broadcast hour of
918each day that a posted notice is otherwise required under this
919section. If When broadcast notice is provided, the notice and
920agenda must be broadcast in a manner and for a sufficient
921continuous length of time so as to allow an average reader to
922observe the notice and read and comprehend the entire content of
923the notice and the agenda. Unless a unit owner waives in writing
924the right to receive notice of the annual meeting, such notice
925must shall be hand delivered, mailed, or electronically
926transmitted to each unit owner. Notice for meetings and notice
927for all other purposes must shall be mailed to each unit owner
928at the address last furnished to the association by the unit
929owner, or hand delivered to each unit owner. However, if a unit
930is owned by more than one person, the association shall provide
931notice, for meetings and all other purposes, to that one address
932which the developer initially identifies for that purpose and
933thereafter as one or more of the owners of the unit shall so
934advise the association in writing, or if no address is given or
935the owners of the unit do not agree, to the address provided on
936the deed of record. An officer of the association, or the
937manager or other person providing notice of the association
938meeting, shall provide an affidavit or United States Postal
939Service certificate of mailing, to be included in the official
940records of the association affirming that the notice was mailed
941or hand delivered, in accordance with this provision.
942     3.  The members of the board shall be elected by written
943ballot or voting machine. Proxies may not shall in no event be
944used in electing the board, either in general elections or
945elections to fill vacancies caused by recall, resignation, or
946otherwise, unless otherwise provided in this chapter.
947     a.  At least Not less than 60 days before a scheduled
948election, the association shall mail, deliver, or electronically
949transmit, whether by separate association mailing or included in
950another association mailing, delivery, or transmission,
951including regularly published newsletters, to each unit owner
952entitled to a vote, a first notice of the date of the election
953along with a certification form provided by the division
954attesting that he or she has read and understands, to the best
955of his or her ability, the governing documents of the
956association and the provisions of this chapter and any
957applicable rules. Any unit owner or other eligible person
958desiring to be a candidate for the board must give written
959notice of his or her intent to be a candidate to the association
960at least not less than 40 days before a scheduled election.
961Together with the written notice and agenda as set forth in
962subparagraph 2., the association shall mail, deliver, or
963electronically transmit a second notice of the election to all
964unit owners entitled to vote therein, together with a ballot
965that lists which shall list all candidates. Upon request of a
966candidate, the association shall include an information sheet,
967no larger than 8 1/2 inches by 11 inches, which must be
968furnished by the candidate at least not less than 35 days before
969the election, must along with the signed certification form
970provided for in this subparagraph, to be included with the
971mailing, delivery, or transmission of the ballot, with the costs
972of mailing, delivery, or electronic transmission and copying to
973be borne by the association. The association is not liable for
974the contents of the information sheets prepared by the
975candidates. In order to reduce costs, the association may print
976or duplicate the information sheets on both sides of the paper.
977The division shall by rule establish voting procedures
978consistent with this sub-subparagraph the provisions contained
979herein, including rules establishing procedures for giving
980notice by electronic transmission and rules providing for the
981secrecy of ballots. Elections shall be decided by a plurality of
982those ballots cast. There is shall be no quorum requirement;
983however, at least 20 percent of the eligible voters must cast a
984ballot in order to have a valid election of members of the
985board. A No unit owner may not shall permit any other person to
986vote his or her ballot, and any such ballots improperly cast are
987shall be deemed invalid, provided any unit owner who violates
988this provision may be fined by the association in accordance
989with s. 718.303. A unit owner who needs assistance in casting
990the ballot for the reasons stated in s. 101.051 may obtain such
991assistance in casting the ballot. The regular election must
992shall occur on the date of the annual meeting. The provisions of
993This sub-subparagraph does subparagraph shall not apply to
994timeshare condominium associations. Notwithstanding the
995provisions of this sub-subparagraph subparagraph, an election is
996not required unless more candidates file notices of intent to
997run or are nominated than board vacancies exist.
998     b.  Within 90 days after being elected or appointed to the
999board, each newly elected or appointed director shall certify in
1000writing to the secretary of the association that he or she has
1001read the association's declaration of condominium, articles of
1002incorporation, bylaws, and current written policies; that he or
1003she will work to uphold such documents and policies to the best
1004of his or her ability; and that he or she will faithfully
1005discharge his or her fiduciary responsibility to the
1006association's members. In lieu of this written certification,
1007the newly elected or appointed director may submit a certificate
1008of satisfactory completion of the educational curriculum
1009administered by a division-approved condominium education
1010provider. A director who fails to timely file the written
1011certification or educational certificate is suspended from
1012service on the board until he or she complies with this sub-
1013subparagraph. The board may temporarily fill the vacancy during
1014the period of suspension. The secretary shall cause the
1015association to retain a director's written certification or
1016educational certificate for inspection by the members for 5
1017years after a director's election. Failure to have such written
1018certification or educational certificate on file does not affect
1019the validity of any action.
1020     4.  Any approval by unit owners called for by this chapter
1021or the applicable declaration or bylaws, including, but not
1022limited to, the approval requirement in s. 718.111(8), shall be
1023made at a duly noticed meeting of unit owners and is shall be
1024subject to all requirements of this chapter or the applicable
1025condominium documents relating to unit owner decisionmaking,
1026except that unit owners may take action by written agreement,
1027without meetings, on matters for which action by written
1028agreement without meetings is expressly allowed by the
1029applicable bylaws or declaration or any statute that provides
1030for such action.
1031     5.  Unit owners may waive notice of specific meetings if
1032allowed by the applicable bylaws or declaration or any statute.
1033If authorized by the bylaws, notice of meetings of the board of
1034administration, unit owner meetings, except unit owner meetings
1035called to recall board members under paragraph (j), and
1036committee meetings may be given by electronic transmission to
1037unit owners who consent to receive notice by electronic
1038transmission.
1039     6.  Unit owners shall have the right to participate in
1040meetings of unit owners with reference to all designated agenda
1041items. However, the association may adopt reasonable rules
1042governing the frequency, duration, and manner of unit owner
1043participation.
1044     7.  Any unit owner may tape record or videotape a meeting
1045of the unit owners subject to reasonable rules adopted by the
1046division.
1047     8.  Unless otherwise provided in the bylaws, any vacancy
1048occurring on the board before the expiration of a term may be
1049filled by the affirmative vote of the majority of the remaining
1050directors, even if the remaining directors constitute less than
1051a quorum, or by the sole remaining director. In the alternative,
1052a board may hold an election to fill the vacancy, in which case
1053the election procedures must conform to the requirements of sub-
1054subparagraph subparagraph 3.a. unless the association governs 10
1055units or fewer less and has opted out of the statutory election
1056process, in which case the bylaws of the association control.
1057Unless otherwise provided in the bylaws, a board member
1058appointed or elected under this section shall fill the vacancy
1059for the unexpired term of the seat being filled. Filling
1060vacancies created by recall is governed by paragraph (j) and
1061rules adopted by the division.
1062
1063Notwithstanding sub-subparagraph 3.a. and subparagraph
1064subparagraphs (b)2. and (d)3., an association of 10 or fewer
1065units may, by the affirmative vote of a majority of the total
1066voting interests, provide for different voting and election
1067procedures in its bylaws, which vote may be by a proxy
1068specifically delineating the different voting and election
1069procedures. The different voting and election procedures may
1070provide for elections to be conducted by limited or general
1071proxy.
1072     (l)  Certificate of compliance.-There shall be A provision
1073that a certificate of compliance from a licensed electrical
1074contractor or electrician may be accepted by the association's
1075board as evidence of compliance of the condominium units with
1076the applicable fire and life safety code must be included.
1077Notwithstanding the provisions of chapter 633 or of any other
1078code, statute, ordinance, administrative rule, or regulation, or
1079any interpretation of the foregoing, an association,
1080condominium, or unit owner is not obligated to retrofit the
1081common elements, association property, or units of a residential
1082condominium with a fire sprinkler system or any other form of
1083engineered lifesafety system in a building that has been
1084certified for occupancy by the applicable governmental entity,
1085if the unit owners have voted to forego such retrofitting and
1086engineered lifesafety system by the affirmative vote of two-
1087thirds of all voting interests in the affected condominium.
1088However, a condominium association may not vote to forego the
1089retrofitting with a fire sprinkler system of common areas in a
1090high-rise building. For purposes of this subsection, the term
1091"high-rise building" means a building that is greater than 75
1092feet in height where the building height is measured from the
1093lowest level of fire department access to the floor of the
1094highest occupiable story. For purposes of this subsection, the
1095term "common areas" means any enclosed hallway, corridor, lobby,
1096stairwell, or entryway. In no event shall The local authority
1097having jurisdiction may not require completion of retrofitting
1098of common areas with a sprinkler system or any other form of
1099engineered lifesafety system before the end of 2019 2014. By
1100December 31, 2016, an association that is not in compliance with
1101the requirements for a fire sprinkler system or other form of
1102engineered lifesafety system and that has not voted to forego
1103retrofitting of such system must initiate an application for a
1104building permit for the required installation with the local
1105government having jurisdiction thereof demonstrating that the
1106association will become compliant by December 31, 2019.
1107     1.  A vote to forego retrofitting may be obtained by
1108limited proxy or by a ballot personally cast at a duly called
1109membership meeting, or by execution of a written consent by the
1110member, and is shall be effective upon the recording of a
1111certificate attesting to such vote in the public records of the
1112county where the condominium is located. The association shall
1113mail or, hand deliver, or electronically transmit to each unit
1114owner written notice at least 14 days before the prior to such
1115membership meeting in which the vote to forego retrofitting of
1116the required fire sprinkler system or any other form of
1117engineered lifesafety system is to take place. Within 30 days
1118after the association's opt-out vote, notice of the results of
1119the opt-out vote must shall be mailed or, hand delivered, or
1120electronically transmitted to all unit owners. Evidence of
1121compliance with this 30-day notice requirement must shall be
1122made by an affidavit executed by the person providing the notice
1123and filed among the official records of the association. After
1124such notice is provided to each owner, a copy must of such
1125notice shall be provided by the current owner to a new owner
1126before prior to closing and shall be provided by a unit owner to
1127a renter before prior to signing a lease.
1128     2.  If there has been a previous vote to forego
1129retrofitting, a vote to require retrofitting may be obtained at
1130a special meeting of the unit owners called by a petition of at
1131least 10 percent of the voting interests. Such a vote may only
1132be called once every 3 years. Notice shall be provided as
1133required for any regularly called meeting of the unit owners and
1134must state the purpose of the meeting. Electronic transmission
1135may not be used to provide notice of a meeting called in whole
1136or in part for this purpose.
1137     3.2.  As part of the information collected annually from
1138condominiums, the division shall require condominium
1139associations to report the membership vote and recording of a
1140certificate under this subsection and, if retrofitting has been
1141undertaken, the per-unit cost of such work. The division shall
1142annually report to the Division of State Fire Marshal of the
1143Department of Financial Services the number of condominiums that
1144have elected to forego retrofitting.
1145     4.  Notwithstanding s. 553.509, an association may not be
1146obligated to comply with, and may forego the retrofitting of,
1147any improvements required by s. 553.509(2) upon an affirmative
1148vote of a majority of the voting interests in the affected
1149condominium.
1150     (n)  Director or officer delinquencies.-A director or
1151officer more than 90 days delinquent in the payment of any
1152monetary obligation due the association regular assessments
1153shall be deemed to have abandoned the office, creating a vacancy
1154in the office to be filled according to law.
1155     (o)  Director or officer offenses.-A director or officer
1156charged by information or indictment with a felony theft or
1157embezzlement offense involving the association's funds or
1158property must shall be removed from office, creating a vacancy
1159in the office to be filled according to law until the end of the
1160period of the suspension or the end of the director's term of
1161office, whichever occurs first. While such director or officer
1162has such criminal charge pending, he or she may not be appointed
1163or elected to a position as a director or officer. However, if
1164should the charges are be resolved without a finding of guilt,
1165the director or officer shall be reinstated for the remainder of
1166his or her term of office, if any.
1167     (3)  OPTIONAL PROVISIONS.-The bylaws as originally recorded
1168or as amended under the procedures provided therein may provide
1169for the following:
1170     (e)  Provisions which authorize a community umbrella
1171organization for a community containing a minimum of 1,000
1172units, or a committee thereof, to employ an entity to market the
1173amenities of the community and financed as a common expense of
1174all of the unit owners, provided that no unit owner has a
1175controlling interest in any marketing firm employed by the
1176association. Any such funds are also prohibited from being
1177utilized for any purposes except marketing expenses for the
1178benefit of all unit owners.
1179     Section 11.  Paragraph (d) of subsection (1) of section
1180718.115, Florida Statutes, is amended to read:
1181     718.115  Common expenses and common surplus.-
1182     (1)
1183     (d)  If so provided in the declaration, the cost of
1184communications services as defined in chapter 202, information
1185services, or Internet services a master antenna television
1186system or duly franchised cable television service obtained
1187pursuant to a bulk contract is shall be deemed a common expense.
1188If the declaration does not provide for the cost of such
1189services a master antenna television system or duly franchised
1190cable television service obtained under a bulk contract as a
1191common expense, the board may enter into such a contract, and
1192the cost of the service will be a common expense. The cost for
1193the services under a bulk-rate contract may be but allocated on
1194a per-unit basis rather than a percentage basis if the
1195declaration provides for other than an equal sharing of common
1196expenses, and any contract entered into before July 1, 1998, in
1197which the cost of the service is not equally divided among all
1198unit owners, may be changed by vote of a majority of the voting
1199interests present at a regular or special meeting of the
1200association, to allocate the cost equally among all units. The
1201contract must be for at least shall be for a term of not less
1202than 2 years.
1203     1.  Any contract made by the board on or after July 1,
12041998, the effective date hereof for a community antenna system
1205or duly franchised cable television service may be
1206majority of the voting interests present at the next regular or
1207special meeting of the association. Any member may make a motion
1208to cancel the said contract, but if no motion is made or if such
1209motion fails to obtain the required majority at the next regular
1210or special meeting, whichever occurs first is sooner, following
1211the making of the contract, then such contract shall be deemed
1212ratified for the term therein expressed.
1213     2.  Any Such contract must shall provide, and is shall be
1214deemed to provide if not expressly set forth, that any hearing-
1215impaired or legally blind unit owner who does not occupy the
1216unit with a non-hearing-impaired or sighted person, or any unit
1217owner receiving supplemental security income under Title XVI of
1218the Social Security Act or food stamps as administered by the
1219Department of Children and Family Services pursuant to s.
1220414.31, may discontinue the cable or video service without
1221incurring disconnect fees, penalties, or subsequent service
1222charges, and, as to such units, the owners are shall not be
1223required to pay any common expenses charge related to such
1224service. If fewer less than all members of an association share
1225the expenses of cable or video service television, the expense
1226shall be shared equally by all participating unit owners. The
1227association may use the provisions of s. 718.116 to enforce
1228payment of the shares of such costs by the unit owners receiving
1229cable or video service television.
1230     Section 12.  Paragraph (b) of subsection (1), subsection
1231(3), and paragraph (b) of subsection (5) of section 718.116,
1232Florida Statutes, are amended, and subsection (11) is added to
1233that section, to read:
1234     718.116  Assessments; liability; lien and priority;
1235interest; collection.-
1236     (1)
1237     (b)  The liability of a first mortgagee or its successor or
1238assignees who acquire title to a unit by foreclosure or by deed
1239in lieu of foreclosure for the unpaid assessments that became
1240due prior to the mortgagee's acquisition of title is limited to
1241the lesser of:
1242     1.  The unit's unpaid common expenses and regular periodic
1243assessments which accrued or came due during the 12 6 months
1244immediately preceding the acquisition of title and for which
1245payment in full has not been received by the association; or
1246     2.  One percent of the original mortgage debt. The
1247provisions of this paragraph apply only if the first mortgagee
1248joined the association as a defendant in the foreclosure action.
1249Joinder of the association is not required if, on the date the
1250complaint is filed, the association was dissolved or did not
1251maintain an office or agent for service of process at a location
1252which was known to or reasonably discoverable by the mortgagee.
1253     (3)  Assessments and installments on assessments them which
1254are not paid when due bear interest at the rate provided in the
1255declaration, from the due date until paid. This rate may not
1256exceed the rate allowed by law, and, if no rate is provided in
1257the declaration, interest accrues shall accrue at the rate of 18
1258percent per year. Also, if provided by the declaration or bylaws
1259so provide, the association may, in addition to such interest,
1260charge an administrative late fee of up to in addition to such
1261interest, in an amount not to exceed the greater of $25
1262percent of each installment of the assessment for each
1263delinquent installment for which that the payment is late. Any
1264payment received by an association must shall be applied first
1265to any interest accrued by the association, then to any
1266administrative late fee, then to any costs and reasonable
1267attorney's fees incurred in collection, and then to the
1268delinquent assessment. The foregoing is shall be applicable
1269notwithstanding any restrictive endorsement, designation, or
1270instruction placed on or accompanying a payment. A late fee is
1271shall not be subject to the provisions in chapter 687 or s.
1272718.303(3).
1273     (5)
1274     (b)  To be valid, a claim of lien must state the
1275description of the condominium parcel, the name of the record
1276owner, the name and address of the association, the amount due,
1277and the due dates. It must be executed and acknowledged by an
1278officer or authorized agent of the association. The No such lien
1279is not shall be effective longer than 1 year after the claim of
1280lien was recorded unless, within that time, an action to enforce
1281the lien is commenced. The 1-year period is shall automatically
1282be extended for any length of time during which the association
1283is prevented from filing a foreclosure action by an automatic
1284stay resulting from a bankruptcy petition filed by the parcel
1285owner or any other person claiming an interest in the parcel.
1286The claim of lien secures shall secure all unpaid assessments
1287that which are due and that which may accrue after subsequent to
1288the recording of the claim of lien is recorded and through prior
1289to the entry of a final judgment certificate of title, as well
1290as interest and all reasonable costs and attorney's fees
1291incurred by the association incident to the collection process.
1292Upon payment in full, the person making the payment is entitled
1293to a satisfaction of the lien.
1294
1295After notice of contest of lien has been recorded, the clerk of
1296the circuit court shall mail a copy of the recorded notice to
1297the association by certified mail, return receipt requested, at
1298the address shown in the claim of lien or most recent amendment
1299to it and shall certify to the service on the face of the
1300notice. Service is complete upon mailing. After service, the
1301association has 90 days in which to file an action to enforce
1302the lien; and, if the action is not filed within the 90-day
1303period, the lien is void. However, the 90-day period shall be
1304extended for any length of time that the association is
1305prevented from filing its action because of an automatic stay
1306resulting from the filing of a bankruptcy petition by the unit
1307owner or by any other person claiming an interest in the parcel.
1308     (11)  If the unit is occupied by a tenant and the unit
1309owner is delinquent in paying any monetary obligation due to the
1310association, the association may make a written demand that the
1311tenant pay the future monetary obligations related to the
1312condominium unit to the association, and the tenant must make
1313such payment. The demand is continuing in nature and, upon
1314demand, the tenant must pay the monetary obligations to the
1315association until the association releases the tenant or the
1316tenant discontinues tenancy in the unit. The association must
1317mail written notice to the unit owner of the association's
1318demand that the tenant make payments to the association. The
1319association shall, upon request, provide the tenant with written
1320receipts for payments made. A tenant who acts in good faith in
1321response to a written demand from an association is immune from
1322any claim from the unit owner.
1323     (a)  If the tenant prepaid rent to the unit owner before
1324receiving the demand from the association and provides written
1325evidence of paying the rent to the association within 14 days
1326after receiving the demand, the tenant shall receive credit for
1327the prepaid rent for the applicable period and must make any
1328subsequent rental payments to the association to be credited
1329against the monetary obligations of the unit owner to the
1330association.
1331     (b)  The tenant is not liable for increases in the amount
1332of the monetary obligations due unless the tenant was notified
1333in writing of the increase at least 10 days before the date the
1334rent is due. The liability of the tenant may not exceed the
1335amount due from the tenant to the tenant's landlord. The
1336tenant's landlord shall provide the tenant a credit against
1337rents due to the unit owner in the amount of moneys paid to the
1338association under this subsection.
1339     (c)  The association may issue notices under s. 83.56 and
1340may sue for eviction under ss. 83.59-83.625 as if the
1341association were a landlord under part II of chapter 83 if the
1342tenant fails to pay a required payment to the association.
1343However, the association is not otherwise considered a landlord
1344under chapter 83 and specifically has no duties under s. 83.51.
1345     (d)  The tenant does not, by virtue of payment of monetary
1346obligations to the association, have any of the rights of a unit
1347owner to vote in any election or to examine the books and
1348records of the association.
1349     (e)  A court may supersede the effect of this subsection by
1350appointing a receiver.
1351     Section 13.  Subsections (2) and (19) of section 718.117,
1352Florida Statutes, are amended to read:
1353     718.117  Termination of condominium.-
1354     (2)  TERMINATION BECAUSE OF ECONOMIC WASTE OR
1355IMPOSSIBILITY.-
1356     (a)  Notwithstanding any provision to the contrary in the
1357declaration, the condominium form of ownership of a property may
1358be terminated by a plan of termination approved by the lesser of
1359the lowest percentage of voting interests necessary to amend the
1360declaration or as otherwise provided in the declaration for
1361approval of termination if when:
1362     1.  The total estimated cost of construction or repairs
1363necessary to construct the intended improvements or restore the
1364improvements to their former condition or bring them into
1365compliance with applicable laws or regulations exceeds the
1366combined fair market value of the all units in the condominium
1367after completion of the construction or repairs; or
1368     2.  It becomes impossible to operate or reconstruct a
1369condominium to in its prior physical configuration because of
1370land use laws or regulations.
1371     (b)  Notwithstanding paragraph (a), a condominium in which
137275 percent or more of the units are timeshare units may be
1373terminated only pursuant to a plan of termination approved by 80
1374percent of the total voting interests of the association and the
1375holders of 80 percent of the original principal amount of
1376outstanding recorded mortgage liens of timeshare estates in the
1377condominium, unless the declaration provides for a lower voting
1378percentage.
1379     (19)  CREATION OF ANOTHER CONDOMINIUM.-The termination of a
1380condominium does not bar the filing of a declaration of
1381condominium or an amended and restated declaration of
1382condominium creation by the termination trustee of another
1383condominium affecting any portion of the same property.
1384     Section 14.  Subsection (11) is added to section 718.202,
1385Florida Statutes, to read:
1386     718.202  Sales or reservation deposits prior to closing.-
1387     (11)  All funds deposited into escrow under subsections (1)
1388and (2) shall be held in one or more escrow accounts by the
1389escrow agent. If only one escrow account is utilized, the escrow
1390agent shall be required to maintain separate accounting records
1391for each purchaser and for amounts which are separately covered
1392under subsections (1) and (2) and, if applicable, released to
1393the developer under subsection (3). Separate accounting by the
1394escrow agent of the escrow funds constitutes compliance with the
1395requirements of this section even if the funds are held by the
1396escrow agent in a single escrow account. It is the intent of
1397this paragraph to clarify existing law.
1398     Section 15.  Subsection (1) of section 718.301, Florida
1399Statutes, is amended to read:
1400     718.301  Transfer of association control; claims of defect
1401by association.-
1402     (1)  If When unit owners other than the developer own 15
1403percent or more of the units in a condominium that will be
1404operated ultimately by an association, the unit owners other
1405than the developer are shall be entitled to elect at least no
1406less than one-third of the members of the board of
1407administration of the association. Unit owners other than the
1408developer are entitled to elect at least not less than a
1409majority of the members of the board of administration of an
1410association:
1411     (a)  Three years after 50 percent of the units that will be
1412operated ultimately by the association have been conveyed to
1413purchasers;
1414     (b)  Three months after 90 percent of the units that will
1415be operated ultimately by the association have been conveyed to
1416purchasers;
1417     (c)  When all the units that will be operated ultimately by
1418the association have been completed, some of them have been
1419conveyed to purchasers, and none of the others are being offered
1420for sale by the developer in the ordinary course of business;
1421     (d)  When some of the units have been conveyed to
1422purchasers and none of the others are being constructed or
1423offered for sale by the developer in the ordinary course of
1424business;
1425     (e)  When the developer files a petition seeking protection
1426in bankruptcy;
1427     (f)  When a receiver for the developer is appointed by a
1428circuit court and is not discharged within 30 days after such
1429appointment, unless the court determines within 30 days after
1430appointment of the receiver that transfer of control would be
1431detrimental to the association or its members; or
1432     (g)  Seven years after recordation of the declaration of
1433condominium; or, in the case of an association that which may
1434ultimately operate more than one condominium, 7 years after
1435recordation of the declaration for the first condominium it
1436operates; or, in the case of an association operating a phase
1437condominium created pursuant to s. 718.403, 7 years after
1438recordation of the declaration creating the initial phase,
1439
1440whichever occurs first. The developer is entitled to elect at
1441least one member of the board of administration of an
1442association as long as the developer holds for sale in the
1443ordinary course of business at least 5 percent, in condominiums
1444with fewer than 500 units, and 2 percent, in condominiums with
1445more than 500 units, of the units in a condominium operated by
1446the association. After Following the time the developer
1447relinquishes control of the association, the developer may
1448exercise the right to vote any developer-owned units in the same
1449manner as any other unit owner except for purposes of
1450reacquiring control of the association or selecting the majority
1451members of the board of administration.
1452     Section 16.  Section 718.303, Florida Statutes, is amended
1453to read:
1454     718.303  Obligations of owners and occupants; remedies
1455waiver; levy of fine against unit by association.-
1456     (1)  Each unit owner, each tenant and other invitee, and
1457each association is shall be governed by, and must shall comply
1458with the provisions of, this chapter, the declaration, the
1459documents creating the association, and the association bylaws
1460which and the provisions thereof shall be deemed expressly
1461incorporated into any lease of a unit. Actions for damages or
1462for injunctive relief, or both, for failure to comply with these
1463provisions may be brought by the association or by a unit owner
1464against:
1465     (a)  The association.
1466     (b)  A unit owner.
1467     (c)  Directors designated by the developer, for actions
1468taken by them before prior to the time control of the
1469association is assumed by unit owners other than the developer.
1470     (d)  Any director who willfully and knowingly fails to
1471comply with these provisions.
1472     (e)  Any tenant leasing a unit, and any other invitee
1473occupying a unit.
1474
1475The prevailing party in any such action or in any action in
1476which the purchaser claims a right of voidability based upon
1477contractual provisions as required in s. 718.503(1)(a) is
1478entitled to recover reasonable attorney's fees. A unit owner
1479prevailing in an action between the association and the unit
1480owner under this section, in addition to recovering his or her
1481reasonable attorney's fees, may recover additional amounts as
1482determined by the court to be necessary to reimburse the unit
1483owner for his or her share of assessments levied by the
1484association to fund its expenses of the litigation. This relief
1485does not exclude other remedies provided by law. Actions arising
1486under this subsection may shall not be deemed to be actions for
1487specific performance.
1488     (2)  A provision of this chapter may not be waived if the
1489waiver would adversely affect the rights of a unit owner or the
1490purpose of the provision, except that unit owners or members of
1491a board of administration may waive notice of specific meetings
1492in writing if provided by the bylaws. Any instruction given in
1493writing by a unit owner or purchaser to an escrow agent may be
1494relied upon by an escrow agent, whether or not such instruction
1495and the payment of funds thereunder might constitute a waiver of
1496any provision of this chapter.
1497     (3)  If a unit owner is delinquent for more than 90 days in
1498paying a monetary obligation due to the association the
1499declaration or bylaws so provide, the association may suspend
1500the right of a unit owner or a unit's occupant, licensee, or
1501invitee to use common elements, common facilities, or any other
1502association property until the monetary obligation is paid. This
1503subsection does not apply to limited common elements intended to
1504be used only by that unit, common elements that must be used to
1505access the unit, utility services provided to the unit, parking
1506spaces, or elevators. The association may also levy reasonable
1507fines against a unit for the failure of the owner of the unit,
1508or its occupant, licensee, or invitee, to comply with any
1509provision of the declaration, the association bylaws, or
1510reasonable rules of the association. A No fine does not will
1511become a lien against a unit. A No fine may not exceed $100 per
1512violation. However, a fine may be levied on the basis of each
1513day of a continuing violation, with a single notice and
1514opportunity for hearing. However, the provided that no such fine
1515may not shall in the aggregate exceed $1,000. A No fine may not
1516be levied and a suspension may not be imposed unless the
1517association first provides at least 14 days' written except
1518after giving reasonable notice and an opportunity for a hearing
1519to the unit owner and, if applicable, its occupant, licensee, or
1520invitee. The hearing must be held before a committee of other
1521unit owners who are neither board members nor persons residing
1522in a board member's household. If the committee does not agree
1523with the fine or suspension, the fine or suspension may not be
1524levied or imposed. The provisions of this subsection do not
1525apply to unoccupied units.
1526     (4)  The notice and hearing requirements of subsection (3)
1527do not apply to the imposition of suspensions or fines against a
1528unit owner or a unit's occupant, licensee, or invitee because of
1529failing to pay any amounts due the association. If such a fine
1530or suspension is imposed, the association must levy the fine or
1531impose a reasonable suspension at a properly noticed board
1532meeting, and after the imposition of such fine or suspension,
1533the association must notify the unit owner and, if applicable,
1534the unit's occupant, licensee, or invitee by mail or hand
1535delivery.
1536     (5)  An association may also suspend the voting rights of a
1537member due to nonpayment of any monetary obligation due to the
1538association which is more than 90 days delinquent. The
1539suspension ends upon full payment of all obligations currently
1540due or overdue the association.
1541     Section 17.  Subsection (1) of section 718.501, Florida
1542Statutes, is amended to read:
1543     718.501  Authority, responsibility, and duties of Division
1544of Florida Condominiums, Timeshares, and Mobile Homes.-
1545     (1)  The division may of Florida Condominiums, Timeshares,
1546and Mobile Homes of the Department of Business and Professional
1547Regulation, referred to as the "division" in this part, has the
1548power to enforce and ensure compliance with the provisions of
1549this chapter and rules relating to the development,
1550construction, sale, lease, ownership, operation, and management
1551of residential condominium units. In performing its duties, the
1552division has complete jurisdiction to investigate complaints and
1553enforce compliance with the provisions of this chapter with
1554respect to associations that are still under developer control
1555or the control of a bulk assignee or bulk buyer pursuant to part
1556VII of this chapter and complaints against developers, bulk
1557assignees, or bulk buyers involving improper turnover or failure
1558to turnover, pursuant to s. 718.301. However, after turnover has
1559occurred, the division has shall only have jurisdiction to
1560investigate complaints related only to financial issues,
1561elections, and unit owner access to association records pursuant
1562to s. 718.111(12).
1563     (a)1.  The division may make necessary public or private
1564investigations within or outside this state to determine whether
1565any person has violated this chapter or any rule or order
1566hereunder, to aid in the enforcement of this chapter, or to aid
1567in the adoption of rules or forms hereunder.
1568     2.  The division may submit any official written report,
1569worksheet, or other related paper, or a duly certified copy
1570thereof, compiled, prepared, drafted, or otherwise made by and
1571duly authenticated by a financial examiner or analyst to be
1572admitted as competent evidence in any hearing in which the
1573financial examiner or analyst is available for cross-examination
1574and attests under oath that such documents were prepared as a
1575result of an examination or inspection conducted pursuant to
1576this chapter.
1577     (b)  The division may require or permit any person to file
1578a statement in writing, under oath or otherwise, as the division
1579determines, as to the facts and circumstances concerning a
1580matter to be investigated.
1581     (c)  For the purpose of any investigation under this
1582chapter, the division director or any officer or employee
1583designated by the division director may administer oaths or
1584affirmations, subpoena witnesses and compel their attendance,
1585take evidence, and require the production of any matter which is
1586relevant to the investigation, including the existence,
1587description, nature, custody, condition, and location of any
1588books, documents, or other tangible things and the identity and
1589location of persons having knowledge of relevant facts or any
1590other matter reasonably calculated to lead to the discovery of
1591material evidence. Upon the failure by a person to obey a
1592subpoena or to answer questions propounded by the investigating
1593officer and upon reasonable notice to all persons affected
1594persons thereby, the division may apply to the circuit court for
1595an order compelling compliance.
1596     (d)  Notwithstanding any remedies available to unit owners
1597and associations, if the division has reasonable cause to
1598believe that a violation of any provision of this chapter or
1599related rule has occurred, the division may institute
1600enforcement proceedings in its own name against any developer,
1601bulk assignee, bulk buyer, association, officer, or member of
1602the board of administration, or its assignees or agents, as
1603follows:
1604     1.  The division may permit a person whose conduct or
1605actions may be under investigation to waive formal proceedings
1606and enter into a consent proceeding whereby orders, rules, or
1607letters of censure or warning, whether formal or informal, may
1608be entered against the person.
1609     2.  The division may issue an order requiring the
1610developer, bulk assignee, bulk buyer, association, developer-
1611designated officer, or developer-designated member of the board
1612of administration, developer-designated assignees or agents,
1613bulk assignee-designated assignees or agents, bulk buyer-
1614designated assignees or agents, community association manager,
1615or community association management firm to cease and desist
1616from the unlawful practice and take such affirmative action as
1617in the judgment of the division will carry out the purposes of
1618this chapter. If the division finds that a developer, bulk
1619assignee, bulk buyer, association, officer, or member of the
1620board of administration, or its assignees or agents, is
1621violating or is about to violate any provision of this chapter,
1622any rule adopted or order issued by the division, or any written
1623agreement entered into with the division, and presents an
1624immediate danger to the public requiring an immediate final
1625order, it may issue an emergency cease and desist order reciting
1626with particularity the facts underlying such findings. The
1627emergency cease and desist order is effective for 90 days. If
1628the division begins nonemergency cease and desist proceedings,
1629the emergency cease and desist order remains effective until the
1630conclusion of the proceedings under ss. 120.569 and 120.57.
1631     3.  If a developer, bulk assignee, or bulk buyer, fails to
1632pay any restitution determined by the division to be owed, plus
1633any accrued interest at the highest rate permitted by law,
1634within 30 days after expiration of any appellate time period of
1635a final order requiring payment of restitution or the conclusion
1636of any appeal thereof, whichever is later, the division must
1637shall bring an action in circuit or county court on behalf of
1638any association, class of unit owners, lessees, or purchasers
1639for restitution, declaratory relief, injunctive relief, or any
1640other available remedy. The division may also temporarily revoke
1641its acceptance of the filing for the developer to which the
1642restitution relates until payment of restitution is made.
1643     4.  The division may petition the court for the appointment
1644of a receiver or conservator. If appointed, the receiver or
1645conservator may take action to implement the court order to
1646ensure the performance of the order and to remedy any breach
1647thereof. In addition to all other means provided by law for the
1648enforcement of an injunction or temporary restraining order, the
1649circuit court may impound or sequester the property of a party
1650defendant, including books, papers, documents, and related
1651records, and allow the examination and use of the property by
1652the division and a court-appointed receiver or conservator.
1653     5.  The division may apply to the circuit court for an
1654order of restitution whereby the defendant in an action brought
1655pursuant to subparagraph 4. is shall be ordered to make
1656restitution of those sums shown by the division to have been
1657obtained by the defendant in violation of this chapter. Such
1658restitution shall, At the option of the court, such restitution
1659is be payable to the conservator or receiver appointed pursuant
1660to subparagraph 4. or directly to the persons whose funds or
1661assets were obtained in violation of this chapter.
1662     6.  The division may impose a civil penalty against a
1663developer, bulk assignee, or bulk buyer, or association, or its
1664assignee or agent, for any violation of this chapter or related
1665a rule adopted under this chapter. The division may impose a
1666civil penalty individually against an any officer or board
1667member who willfully and knowingly violates a provision of this
1668chapter, adopted rule, or a final order of the division; may
1669order the removal of such individual as an officer or from the
1670board of administration or as an officer of the association; and
1671may prohibit such individual from serving as an officer or on
1672the board of a community association for a period of time. The
1673term "willfully and knowingly" means that the division informed
1674the officer or board member that his or her action or intended
1675action violates this chapter, a rule adopted under this chapter,
1676or a final order of the division and that the officer or board
1677member refused to comply with the requirements of this chapter,
1678a rule adopted under this chapter, or a final order of the
1679division. The division, before prior to initiating formal agency
1680action under chapter 120, must shall afford the officer or board
1681member an opportunity to voluntarily comply and with this
1682chapter, a rule adopted under this chapter, or a final order of
1683the division. an officer or board member who complies within 10
1684days is not subject to a civil penalty. A penalty may be imposed
1685on the basis of each day of continuing violation, but in no
1686event shall the penalty for any offense may not exceed $5,000.
1687By January 1, 1998, the division shall adopt, by rule, penalty
1688guidelines applicable to possible violations or to categories of
1689violations of this chapter or rules adopted by the division. The
1690guidelines must specify a meaningful range of civil penalties
1691for each such violation of the statute and rules and must be
1692based upon the harm caused by the violation, the repetition of
1693the violation, and upon such other factors deemed relevant by
1694the division. For example, the division may consider whether the
1695violations were committed by a developer, bulk assignee, or bulk
1696buyer, or owner-controlled association, the size of the
1697association, and other factors. The guidelines must designate
1698the possible mitigating or aggravating circumstances that
1699justify a departure from the range of penalties provided by the
1700rules. It is the legislative intent that minor violations be
1701distinguished from those which endanger the health, safety, or
1702welfare of the condominium residents or other persons and that
1703such guidelines provide reasonable and meaningful notice to the
1704public of likely penalties that may be imposed for proscribed
1705conduct. This subsection does not limit the ability of the
1706division to informally dispose of administrative actions or
1707complaints by stipulation, agreed settlement, or consent order.
1708All amounts collected shall be deposited with the Chief
1709Financial Officer to the credit of the Division of Florida
1710Condominiums, Timeshares, and Mobile Homes Trust Fund. If a
1711developer, bulk assignee, or bulk buyer fails to pay the civil
1712penalty and the amount deemed to be owed to the association, the
1713division shall issue an order directing that such developer,
1714bulk assignee, or bulk buyer cease and desist from further
1715operation until such time as the civil penalty is paid or may
1716pursue enforcement of the penalty in a court of competent
1717jurisdiction. If an association fails to pay the civil penalty,
1718the division shall pursue enforcement in a court of competent
1719jurisdiction, and the order imposing the civil penalty or the
1720cease and desist order is will not become effective until 20
1721days after the date of such order. Any action commenced by the
1722division shall be brought in the county in which the division
1723has its executive offices or in the county where the violation
1724occurred.
1725     7.  If a unit owner presents the division with proof that
1726the unit owner has requested access to official records in
1727writing by certified mail, and that after 10 days the unit owner
1728again made the same request for access to official records in
1729writing by certified mail, and that more than 10 days has
1730elapsed since the second request and the association has still
1731failed or refused to provide access to official records as
1732required by this chapter, the division shall issue a subpoena
1733requiring production of the requested records where the records
1734are kept pursuant to s. 718.112.
1735     8.  In addition to subparagraph 6., the division may seek
1736the imposition of a civil penalty through the circuit court for
1737any violation for which the division may issue a notice to show
1738cause under paragraph (r). The civil penalty shall be at least
1739$500 but no more than $5,000 for each violation. The court may
1740also award to the prevailing party court costs and reasonable
1741attorney's fees and, if the division prevails, may also award
1742reasonable costs of investigation.
1743     (e)  The division may prepare and disseminate a prospectus
1744and other information to assist prospective owners, purchasers,
1745lessees, and developers of residential condominiums in assessing
1746the rights, privileges, and duties pertaining thereto.
1747     (f)  The division may has authority to adopt rules pursuant
1748to ss. 120.536(1) and 120.54 to administer implement and enforce
1749the provisions of this chapter.
1750     (g)  The division shall establish procedures for providing
1751notice to an association and the developer, bulk assignee, or
1752bulk buyer during the period in which where the developer, bulk
1753assignee, or bulk buyer controls the association if when the
1754division is considering the issuance of a declaratory statement
1755with respect to the declaration of condominium or any related
1756document governing in such condominium community.
1757     (h)  The division shall furnish each association that which
1758pays the fees required by paragraph (2)(a) a copy of this
1759chapter, as amended act, subsequent changes to this act on an
1760annual basis, an amended version of this act as it becomes
1761available from the Secretary of State's office on a biennial
1762basis, and the rules adopted thereto on an annual basis.
1763     (i)  The division shall annually provide each association
1764with a summary of declaratory statements and formal legal
1765opinions relating to the operations of condominiums which were
1766rendered by the division during the previous year.
1767     (j)  The division shall provide training and educational
1768programs for condominium association board members and unit
1769owners. The training may, in the division's discretion, include
1770web-based electronic media, and live training and seminars in
1771various locations throughout the state. The division may shall
1772have the authority to review and approve education and training
1773programs for board members and unit owners offered by providers
1774and shall maintain a current list of approved programs and
1775providers and shall make such list available to board members
1776and unit owners in a reasonable and cost-effective manner.
1777     (k)  The division shall maintain a toll-free telephone
1778number accessible to condominium unit owners.
1779     (l)  The division shall develop a program to certify both
1780volunteer and paid mediators to provide mediation of condominium
1781disputes. The division shall provide, upon request, a list of
1782such mediators to any association, unit owner, or other
1783participant in arbitration proceedings under s. 718.1255
1784requesting a copy of the list. The division shall include on the
1785list of volunteer mediators only the names of persons who have
1786received at least 20 hours of training in mediation techniques
1787or who have mediated at least 20 disputes. In order to become
1788initially certified by the division, paid mediators must be
1789certified by the Supreme Court to mediate court cases in county
1790or circuit courts. However, the division may adopt, by rule,
1791additional factors for the certification of paid mediators,
1792which factors must be related to experience, education, or
1793background. Any person initially certified as a paid mediator by
1794the division must, in order to continue to be certified, comply
1795with the factors or requirements adopted by rule imposed by
1796rules adopted by the division.
1797     (m)  If When a complaint is made, the division must shall
1798conduct its inquiry with due regard for to the interests of the
1799affected parties. Within 30 days after receipt of a complaint,
1800the division shall acknowledge the complaint in writing and
1801notify the complainant whether the complaint is within the
1802jurisdiction of the division and whether additional information
1803is needed by the division from the complainant. The division
1804shall conduct its investigation and shall, within 90 days after
1805receipt of the original complaint or of timely requested
1806additional information, take action upon the complaint. However,
1807the failure to complete the investigation within 90 days does
1808not prevent the division from continuing the investigation,
1809accepting or considering evidence obtained or received after 90
1810days, or taking administrative action if reasonable cause exists
1811to believe that a violation of this chapter or a rule of the
1812division has occurred. If an investigation is not completed
1813within the time limits established in this paragraph, the
1814division shall, on a monthly basis, notify the complainant in
1815writing of the status of the investigation. When reporting its
1816action to the complainant, the division shall inform the
1817complainant of any right to a hearing pursuant to ss. 120.569
1818and 120.57.
1819     (n)  Condominium association directors, officers, and
1820employees; condominium developers; bulk assignees, bulk buyers,
1821and community association managers; and community association
1822management firms have an ongoing duty to reasonably cooperate
1823with the division in any investigation pursuant to this section.
1824The division shall refer to local law enforcement authorities
1825any person whom the division believes has altered, destroyed,
1826concealed, or removed any record, document, or thing required to
1827be kept or maintained by this chapter with the purpose to impair
1828its verity or availability in the department's investigation.
1829     (o)  The division may:
1830     1.  Contract with agencies in this state or other
1831jurisdictions to perform investigative functions; or
1832     2.  Accept grants-in-aid from any source.
1833     (p)  The division shall cooperate with similar agencies in
1834other jurisdictions to establish uniform filing procedures and
1835forms, public offering statements, advertising standards, and
1836rules and common administrative practices.
1837     (q)  The division shall consider notice to a developer,
1838bulk assignee, or bulk buyer to be complete when it is delivered
1839to the developer's address of the developer, bulk assignee, or
1840bulk buyer currently on file with the division.
1841     (r)  In addition to its enforcement authority, the division
1842may issue a notice to show cause, which must shall provide for a
1843hearing, upon written request, in accordance with chapter 120.
1844     (s)  The division shall submit to the Governor, the
1845President of the Senate, the Speaker of the House of
1846Representatives, and the chairs of the legislative
1847appropriations committees an annual report that includes, but
1848need not be limited to, the number of training programs provided
1849for condominium association board members and unit owners, the
1850number of complaints received by type, the number and percent of
1851complaints acknowledged in writing within 30 days and the number
1852and percent of investigations acted upon within 90 days in
1853accordance with paragraph (m), and the number of investigations
1854exceeding the 90-day requirement. The annual report must shall
1855also include an evaluation of the division's core business
1856processes and make recommendations for improvements, including
1857statutory changes. The report shall be submitted by September 30
1858following the end of the fiscal year.
1859     Section 18.  Part VII of chapter 718, Florida Statutes,
1860consisting of sections 718.701, 718.702, 718.703, 718.704,
1861718.705, 718.706, 718.707, and 718.708, is created to read:
1862     718.701  Short title.-This part may be cited as the
1863"Distressed Condominium Relief Act."
1864     718.702  Legislative intent.-
1865     (1)  The Legislature acknowledges the massive downturn in
1866the condominium market which has occurred throughout the state
1867and the impact of such downturn on developers, lenders, unit
1868owners, and condominium associations. Numerous condominium
1869projects have failed or are in the process of failing such that
1870the condominium has a small percentage of third-party unit
1871owners as compared to the unsold inventory of units. As a result
1872of the inability to find purchasers for this inventory of units,
1873which results in part from the devaluing of real estate in this
1874state, developers are unable to satisfy the requirements of
1875their lenders, leading to defaults on mortgages. Consequently,
1876lenders are faced with the task of finding a solution to the
1877problem in order to receive payment for their investments.
1878     (2)  The Legislature recognizes that all of the factors
1879listed in this section lead to condominiums becoming distressed,
1880resulting in detriment to the unit owners and the condominium
1881association due to the resulting shortage of assessment moneys
1882available for proper maintenance of the condominium. Such
1883shortage and the resulting lack of proper maintenance further
1884erodes property values. The Legislature finds that individuals
1885and entities within this state and in other states have
1886expressed interest in purchasing unsold inventory in one or more
1887condominium projects, but are reticent to do so because of
1888accompanying liabilities inherited from the original developer,
1889which are by definition imputed to the successor purchaser,
1890including a foreclosing mortgagee. This results in the potential
1891successor purchaser having unknown and unquantifiable risks that
1892the potential purchaser is unwilling to accept. As a result,
1893condominium projects stagnate, leaving all parties involved at
1894an impasse and without the ability to find a solution.
1895     (3)  The Legislature declares that it is the public policy
1896of this state to protect the interests of developers, lenders,
1897unit owners, and condominium associations with regard to
1898distressed condominiums, and that there is a need for relief
1899from certain provisions of the Florida Condominium Act geared
1900toward enabling economic opportunities for successor purchasers,
1901including foreclosing mortgagees. Such relief would benefit
1902existing unit owners and condominium associations. The
1903Legislature further finds and declares that this situation
1904cannot be open-ended without potentially prejudicing the rights
1905of unit owners and condominium associations, and thereby
1906declares that the provisions of this part may be used by
1907purchasers of condominium inventory for only a specific and
1908defined period.
1909     718.703  Definitions.-As used in this part, the term:
1910     (1)  "Bulk assignee" means a person who:
1911     (a)  Acquires more than seven condominium parcels as set
1912forth in s. 718.707; and
1913     (b)  Receives an assignment of some or all of the rights of
1914the developer as set forth in the declaration of condominium or
1915this chapter by a written instrument recorded as an exhibit to
1916the deed or as a separate instrument in the public records of
1917the county in which the condominium is located.
1918     (2)  "Bulk buyer" means a person who acquires more than
1919seven condominium parcels as set forth in s. 718.707 but who
1920does not receive an assignment of developer rights other than
1921the right to conduct sales, leasing, and marketing activities
1922within the condominium; the right to be exempt from the payment
1923of working capital contributions to the condominium association
1924arising out of, or in connection with, the bulk buyer's
1925acquisition of a bulk number of units; and the right to be
1926exempt from any rights of first refusal which may be held by the
1927condominium association and would otherwise be applicable to
1928subsequent transfers of title from the bulk buyer to a third
1929party purchaser concerning one or more units.
1930     718.704  Assignment and assumption of developer rights by
1931bulk assignee; bulk buyer.-
1932     (1)  A bulk assignee assumes and is liable for all duties
1933and responsibilities of the developer under the declaration and
1934this chapter, except:
1935     (a)  Warranties of the developer under s. 718.203(1) or s.
1936718.618, except for design, construction, development, or repair
1937work performed by or on behalf of such bulk assignee;
1938     (b)  The obligation to:
1939     1.  Fund converter reserves under s. 718.618 for a unit
1940that was not acquired by the bulk assignee; or
1941     2.  Provide converter warranties on any portion of the
1942condominium property except as expressly provided by the bulk
1943assignee in the contract for purchase and sale executed with a
1944purchaser and pertaining to any design, construction,
1945development, or repair work performed by or on behalf of the
1946bulk assignee;
1947     (c)  The requirement to provide the association with a
1948cumulative audit of the association's finances from the date of
1949formation of the condominium association as required by s.
1950718.301(4)(c). However, the bulk assignee must provide an audit
1951for the period during which the bulk assignee elects a majority
1952of the members of the board of administration;
1953     (d)  Any liability arising out of or in connection with
1954actions taken by the board of administration or the developer-
1955appointed directors before the bulk assignee elects a majority
1956of the members of the board of administration; and
1957     (e)  Any liability for or arising out of the developer's
1958failure to fund previous assessments or to resolve budgetary
1959deficits in relation to a developer's right to guarantee
1960assessments, except as otherwise provided in subsection (2).
1961
1962The bulk assignee is also responsible for delivering documents
1963and materials in accordance with s. 718.705(3). A bulk assignee
1964may expressly assume some or all of the obligations of the
1965developer described in paragraphs (a)-(e).
1966     (2)  A bulk assignee receiving the assignment of the rights
1967of the developer to guarantee the level of assessments and fund
1968budgetary deficits pursuant to s. 718.116 assumes and is liable
1969for all obligations of the developer with respect to such
1970guarantee, including any applicable funding of reserves to the
1971extent required by law, for as long as the guarantee remains in
1972effect. A bulk assignee not receiving such assignment or a bulk
1973buyer does not assume and is not liable for the obligations of
1974the developer with respect to such guarantee, but is responsible
1975for payment of assessments in the same manner as all other
1976owners of condominium parcels.
1977     (3)  A bulk buyer is liable for the duties and
1978responsibilities of the developer under the declaration and this
1979chapter only to the extent provided in this part, together with
1980any other duties or responsibilities of the developer expressly
1981assumed in writing by the bulk buyer.
1982     (4)  An acquirer of condominium parcels is not a bulk
1983assignee or a bulk buyer if the transfer to such acquirer was
1984made before the effective date of this part with the intent to
1985hinder, delay, or defraud any purchaser, unit owner, or the
1986association, or if the acquirer is a person who would be
1987considered an insider under s. 726.102(7).
1988     (5)  An assignment of developer rights to a bulk assignee
1989may be made by the developer, a previous bulk assignee, or a
1990court acting on behalf of the developer or the previous bulk
1991assignee. At any particular time, there may be no more than one
1992bulk assignee within a condominium, but there may be more than
1993one bulk buyer. If more than one acquirer of condominium parcels
1994in the same condominium receives an assignment of developer
1995rights from the same person, the bulk assignee is the acquirer
1996whose instrument of assignment is recorded first.
1997     718.705  Board of administration; transfer of control.-
1998     (1)  For purposes of determining the timing for transfer of
1999control of the board of administration of the association to
2000unit owners other than the developer under s. 718.301(1)(a) and
2001(b), if a bulk assignee is entitled to elect a majority of the
2002members of the board, a condominium parcel acquired by the bulk
2003assignee is conveyed to a purchaser, or owned by an owner other
2004than the developer, until the condominium parcel is conveyed to
2005an owner who is not a bulk assignee.
2006     (2)  Unless control of the board of administration of the
2007association has already been relinquished pursuant to s.
2008718.301(1), the bulk assignee must relinquish control of the
2009association pursuant to s. 718.301 and this part, as if the bulk
2010assignee were the developer.
2011     (3)  If a bulk assignee relinquishes control of the board
2012of administration as set forth in s. 718.301, the bulk assignee
2013must deliver all of those items required by s. 718.301(4).
2014However, the bulk assignee is not required to deliver items and
2015documents not in the possession of the bulk assignee during the
2016period during which the bulk assignee was entitled to elect at
2017least a majority of the members of the board of administration.
2018In conjunction with acquisition of condominium parcels, a bulk
2019assignee shall undertake a good faith effort to obtain the
2020documents and materials that must be provided to the association
2021pursuant to s. 718.301(4). If the bulk assignee is not able to
2022obtain all of such documents and materials, the bulk assignee
2023must certify in writing to the association the names or
2024descriptions of the documents and materials that were not
2025obtainable by the bulk assignee. Delivery of the certificate
2026relieves the bulk assignee of responsibility for delivering the
2027documents and materials referenced in the certificate as
2028otherwise required under ss. 718.112 and 718.301 and this part.
2029The responsibility of the bulk assignee for the audit required
2030by s. 718.301(4) commences as of the date on which the bulk
2031assignee elected a majority of the members of the board of
2032administration.
2033     (4)  If a conflict arises between the provisions or
2034application of this section and s. 718.301, this section
2035prevails.
2036     (5)  Failure of a bulk assignee or bulk buyer to
2037substantially comply with all the requirements in this part
2038results in the loss of any and all protections or exemptions
2039provided under this part.
2040     718.706  Specific provisions pertaining to offering of
2041units by a bulk assignee or bulk buyer.-
2042     (1)  Before offering any units for sale or for lease for a
2043term exceeding 5 years, a bulk assignee or a bulk buyer must
2044file the following documents with the division and provide such
2045documents to a prospective purchaser or tenant:
2046     (a)  An updated prospectus or offering circular, or a
2047supplement to the prospectus or offering circular, filed by the
2048original developer prepared in accordance with s. 718.504, which
2049must include the form of contract for sale and for lease in
2050compliance with s. 718.503(2);
2051     (b)  An updated Frequently Asked Questions and Answers
2052sheet;
2053     (c)  The executed escrow agreement if required under s.
2054718.202; and
2055     (d)  The financial information required by s. 718.111(13).
2056However, if a financial information report does not exist for
2057the fiscal year before acquisition of title by the bulk assignee
2058or bulk buyer, or accounting records cannot be obtained in good
2059faith by the bulk assignee or the bulk buyer which would permit
2060preparation of the required financial information report, the
2061bulk assignee or bulk buyer is excused from the requirement of
2062this paragraph. However, the bulk assignee or bulk buyer must
2063include in the purchase contract the following statement in
2064conspicuous type:
2065
2066THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
2067718.111(13), FLORIDA STATUTES, FOR THE IMMEDIATELY
2068PRECEDING FISCAL YEAR OF THE ASSOCIATION IS NOT
2069AVAILABLE OR CANNOT BE CREATED BY THE SELLER DUE TO
2070THE INSUFFICIENT ACCOUNTING RECORDS OF THE
2071ASSOCIATION.
2072
2073     (2)  Before offering any units for sale or for lease for a
2074term exceeding 5 years, a bulk assignee must file with the
2075division and provide to a prospective purchaser a disclosure
2076statement that includes, but is not limited to:
2077     (a)  A description of any rights of the developer which
2078have been assigned to the bulk assignee or bulk buyer.
2079     (b)  The following statement in conspicuous type:
2080
2081THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
2082DEVELOPER UNDER S. 718.203(1) OR S. 718.618, FLORIDA
2083STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
2084CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
2085OR ON BEHALF OF SELLER.
2086
2087     (c)  If the condominium is a conversion subject to part VI,
2088the following statement in conspicuous type:
2089
2090THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
2091RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
2092718.618, FLORIDA STATUTES, ON ANY PORTION OF THE
2093CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
2094REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
2095AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
2096DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
2097DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
2098OF THE SELLER.
2099
2100     (3)  A bulk assignee, while it is in control of the board
2101of administration of the association, may not authorize, on
2102behalf of the association:
2103     (a)  The waiver of reserves or the reduction of funding of
2104the reserves pursuant to s. 718.112(2)(f)2., unless approved by
2105a majority of the voting interests not controlled by the
2106developer, bulk assignee, and bulk buyer; or
2107     (b)  The use of reserve expenditures for other purposes
2108pursuant to s. 718.112(2)(f)3., unless approved by a majority of
2109the voting interests not controlled by the developer, bulk
2110assignee, and bulk buyer.
2111     (4)  A bulk assignee or a bulk buyer must comply with all
2112the requirements of s. 718.302 regarding any contracts entered
2113into by the association during the period the bulk assignee or
2114bulk buyer maintains control of the board of administration.
2115Unit owners shall be afforded all the protections contained in
2116s. 718.302 regarding agreements entered into by the association
2117before unit owners other than the developer, bulk assignee, or
2118bulk buyer elected a majority of the board of administration.
2119     (5)  A bulk buyer must comply with the requirements
2120contained in the declaration regarding any transfer of a unit,
2121including sales, leases, and subleases. A bulk buyer is not
2122entitled to any exemptions afforded a developer or successor
2123developer under this chapter regarding the transfer of a unit,
2124including sales, leases, or subleases.
2125     718.707  Time limitation for classification as bulk
2126assignee or bulk buyer.-A person acquiring condominium parcels
2127may not be classified as a bulk assignee or bulk buyer unless
2128the condominium parcels were acquired before July 1, 2012. The
2129date of such acquisition shall be determined by the date of
2130recording of a deed or other instrument of conveyance for such
2131parcels in the public records of the county in which the
2132condominium is located, or by the date of issuance of a
2133certificate of title in a foreclosure proceeding with respect to
2134such condominium parcels.
2135     718.708  Liability of developers and others.-An assignment
2136of developer rights to a bulk assignee or bulk buyer does not
2137release the original developer from liabilities under the
2138declaration or this chapter. This part does not limit the
2139liability of the original developer for claims brought by unit
2140owners, bulk assignees, or bulk buyers for violations of this
2141chapter by the creating developer, unless specifically excluded
2142in this part. This part does not waive, release, compromise, or
2143limit liability established under chapter 718 except as
2144specifically excluded under this part.
2145     Section 19.  Paragraph (d) of subsection (1) of section
2146719.106, Florida Statutes, is amended to read:
2147     719.106  Bylaws; cooperative ownership.-
2148     (1)  MANDATORY PROVISIONS.-The bylaws or other cooperative
2149documents shall provide for the following, and if they do not,
2150they shall be deemed to include the following:
2151     (d)  Shareholder meetings.-There shall be an annual meeting
2152of the shareholders. All members of the board of administration
2153shall be elected at the annual meeting unless the bylaws provide
2154for staggered election terms or for their election at another
2155meeting. Any unit owner desiring to be a candidate for board
2156membership must shall comply with subparagraph 1. The bylaws
2157must shall provide the method for calling meetings, including
2158annual meetings. Written notice, which must notice shall
2159incorporate an identification of agenda items, shall be given to
2160each unit owner at least 14 days before prior to the annual
2161meeting and shall be posted in a conspicuous place on the
2162cooperative property at least 14 continuous days preceding the
2163annual meeting. Upon notice to the unit owners, the board must
2164shall by duly adopted rule designate a specific location on the
2165cooperative property upon which all notice of unit owner
2166meetings are shall be posted. In lieu of or in addition to the
2167physical posting of the meeting notice of any meeting of the
2168shareholders on the cooperative property, the association may,
2169by reasonable rule, adopt a procedure for conspicuously posting
2170and repeatedly broadcasting the notice and the agenda on a
2171closed-circuit cable television system serving the cooperative
2172association. However, if broadcast notice is used in lieu of a
2173posted notice posted physically on the cooperative property, the
2174notice and agenda must be broadcast at least four times every
2175broadcast hour of each day that a posted notice is otherwise
2176required under this section. If When broadcast notice is
2177provided, the notice and agenda must be broadcast in a manner
2178and for a sufficient continuous length of time so as to allow an
2179average reader to observe the notice and read and comprehend the
2180entire content of the notice and the agenda. Unless a unit owner
2181waives in writing the right to receive notice of the annual
2182meeting, the notice of the annual meeting must shall be sent by
2183mail, hand delivered, or electronically transmitted to each unit
2184owner. An officer of the association must shall provide an
2185affidavit or United States Postal Service certificate of
2186mailing, to be included in the official records of the
2187association, affirming that notices of the association meeting
2188were mailed, hand delivered, or electronically transmitted, in
2189accordance with this provision, to each unit owner at the
2190address last furnished to the association.
2191     1.  After January 1, 1992, The board of administration
2192shall be elected by written ballot or voting machine. A proxy
2193may not Proxies shall in no event be used in electing the board
2194of administration, either in general elections or elections to
2195fill vacancies caused by recall, resignation, or otherwise
2196unless otherwise provided in this chapter. At least Not less
2197than 60 days before a scheduled election, the association shall
2198mail, deliver, or transmit, whether by separate association
2199mailing, delivery, or electronic transmission or included in
2200another association mailing, delivery, or electronic
2201transmission, including regularly published newsletters, to each
2202unit owner entitled to vote, a first notice of the date of the
2203election. Any unit owner or other eligible person desiring to be
2204a candidate for the board of administration must shall give
2205written notice to the association at least not less than 40 days
2206before a scheduled election. Together with the written notice
2207and agenda as set forth in this section, the association shall
2208mail, deliver, or electronically transmit a second notice of
2209election to all unit owners entitled to vote therein, together
2210with a ballot which lists shall list all candidates. Upon
2211request of a candidate, the association shall include an
2212information sheet, no larger than 8 1/2 inches by 11 inches,
2213which must be furnished by the candidate at least not less than
221435 days before prior to the election, to be included with the
2215mailing, delivery, or electronic transmission of the ballot,
2216with the costs of mailing, delivery, or transmission and copying
2217to be borne by the association. The association is not liable
2218has no liability for the contents of the information sheets
2219provided by the candidates. In order to reduce costs, the
2220association may print or duplicate the information sheets on
2221both sides of the paper. The division shall by rule establish
2222voting procedures consistent with this subparagraph the
2223provisions contained herein, including rules establishing
2224procedures for giving notice by electronic transmission and
2225rules providing for the secrecy of ballots. Elections shall be
2226decided by a plurality of those ballots cast. There is shall be
2227no quorum requirement. However, at least 20 percent of the
2228eligible voters must cast a ballot in order to have a valid
2229election of members of the board of administration. A No unit
2230owner may not shall permit any other person to vote his or her
2231ballot, and any such ballots improperly cast are shall be deemed
2232invalid. A unit owner who needs assistance in casting the ballot
2233for the reasons stated in s. 101.051 may obtain assistance in
2234casting the ballot. Any unit owner violating this provision may
2235be fined by the association in accordance with s. 719.303. The
2236regular election must shall occur on the date of the annual
2237meeting. The provisions of This subparagraph does shall not
2238apply to timeshare cooperatives. Notwithstanding the provisions
2239of this subparagraph, an election and balloting are not required
2240unless more candidates file a notice of intent to run or are
2241nominated than vacancies exist on the board.
2242     2.  Any approval by unit owners called for by this chapter,
2243or the applicable cooperative documents, must shall be made at a
2244duly noticed meeting of unit owners and is shall be subject to
2245all requirements of this chapter or the applicable cooperative
2246documents relating to unit owner decisionmaking, except that
2247unit owners may take action by written agreement, without
2248meetings, on matters for which action by written agreement
2249without meetings is expressly allowed by the applicable
2250cooperative documents or law any Florida statute which provides
2251for the unit owner action.
2252     3.  Unit owners may waive notice of specific meetings if
2253allowed by the applicable cooperative documents or law any
2254Florida statute. If authorized by the bylaws, notice of meetings
2255of the board of administration, shareholder meetings, except
2256shareholder meetings called to recall board members under
2257paragraph (f), and committee meetings may be given by electronic
2258transmission to unit owners who consent to receive notice by
2259electronic transmission.
2260     4.  Unit owners shall have the right to participate in
2261meetings of unit owners with reference to all designated agenda
2262items. However, the association may adopt reasonable rules
2263governing the frequency, duration, and manner of unit owner
2264participation.
2265     5.  Any unit owner may tape record or videotape meetings of
2266the unit owners subject to reasonable rules adopted by the
2267division.
2268     6.  Unless otherwise provided in the bylaws, a vacancy
2269occurring on the board before the expiration of a term may be
2270filled by the affirmative vote of the majority of the remaining
2271directors, even if the remaining directors constitute less than
2272a quorum, or by the sole remaining director. In the alternative,
2273a board may hold an election to fill the vacancy, in which case
2274the election procedures must conform to the requirements of
2275subparagraph 1. unless the association has opted out of the
2276statutory election process, in which case the bylaws of the
2277association control. Unless otherwise provided in the bylaws, a
2278board member appointed or elected under this subparagraph shall
2279fill the vacancy for the unexpired term of the seat being
2280filled. Filling vacancies created by recall is governed by
2281paragraph (f) and rules adopted by the division.
2282
2283Notwithstanding subparagraphs (b)2. and (d)1., an association
2284may, by the affirmative vote of a majority of the total voting
2285interests, provide for a different voting and election procedure
2286in its bylaws, which vote may be by a proxy specifically
2287delineating the different voting and election procedures. The
2288different voting and election procedures may provide for
2289elections to be conducted by limited or general proxy.
2290     Section 20.  Subsection (5) of section 719.1055, Florida
2291Statutes, is amended to read:
2292     719.1055  Amendment of cooperative documents; alteration
2293and acquisition of property.-
2294     (5)  The bylaws must include a provision whereby a
2295certificate of compliance from a licensed electrical contractor
2296or electrician may be accepted by the association's board as
2297evidence of compliance of the cooperative units with the
2298applicable fire and life safety code. Notwithstanding the
2299provisions of chapter 633 or of any other code, statute,
2300ordinance, administrative rule, or regulation, or any
2301interpretation of the foregoing, a cooperative or unit owner is
2302not obligated to retrofit the common elements, common areas,
2303association property, or units of a residential cooperative with
2304a fire sprinkler system or any other form of engineered
2305lifesafety life safety system in a building that has been
2306certified for occupancy by the applicable governmental entity,
2307if the unit owners have voted to forego such retrofitting and
2308engineered lifesafety life safety system by the affirmative vote
2309of two-thirds of all voting interests in the affected
2310cooperative. However, a cooperative may not forego the
2311retrofitting with a fire sprinkler system of common areas in a
2312high-rise building. For purposes of this subsection, the term
2313"high-rise building" means a building that is greater than 75
2314feet in height where the building height is measured from the
2315lowest level of fire department access to the floor of the
2316highest occupiable story. For purposes of this subsection, the
2317term "common areas" means any enclosed hallway, corridor, lobby,
2318stairwell, or entryway. In no event shall The local authority
2319having jurisdiction may not require completion of retrofitting
2320of common areas with a sprinkler system or other form of
2321engineered lifesafety system before the end of 2019 2014.
2322     (a)  A vote to forego retrofitting may be obtained by
2323limited proxy or by a ballot personally cast at a duly called
2324membership meeting, or by execution of a written consent by the
2325member, and is shall be effective upon the recording of a
2326certificate attesting to such vote in the public records of the
2327county where the cooperative is located. The association shall
2328mail or, hand deliver, or electronically transmit to each unit
2329owner written notice at least 14 days before prior to such
2330membership meeting in which the vote to forego retrofitting of
2331the required fire sprinkler system or any other form of
2332engineered lifesafety system is to take place. Within 30 days
2333after the association's opt-out vote, notice of the results of
2334the opt-out vote shall be mailed or, hand delivered, or
2335electronically transmitted to all unit owners. Evidence of
2336compliance with this 30-day notice must shall be made by an
2337affidavit executed by the person providing the notice and filed
2338among the official records of the association. After such notice
2339is provided to each owner, a copy of the such notice shall be
2340provided by the current owner to a new owner before prior to
2341closing and shall be provided by a unit owner to a renter before
2342prior to signing a lease.
2343     (b)  If there has been a previous vote to forego
2344retrofitting, a vote to require retrofitting may be obtained at
2345a special meeting of the unit owners called by a petition of
2346least 10 percent of the voting interests. Such vote may only be
2347called once every 3 years. Notice must be provided as required
2348for any regularly called meeting of the unit owners, and the
2349notice must state the purpose of the meeting. Electronic
2350transmission may not be used to provide notice of a meeting
2351called in whole or in part for this purpose.
2352     (c)(b)  As part of the information collected annually from
2353cooperatives, the division shall require associations to report
2354the membership vote and recording of a certificate under this
2355subsection and, if retrofitting has been undertaken, the per-
2356unit cost of such work. The division shall annually report to
2357the Division of State Fire Marshal of the Department of
2358Financial Services the number of cooperatives that have elected
2359to forego retrofitting.
2360     Section 21.  Subsections (3) and (4) of section 719.108,
2361Florida Statutes, are amended, and subsection (10) is added to
2362that section, to read:
2363     719.108  Rents and assessments; liability; lien and
2364priority; interest; collection; cooperative ownership.-
2365     (3)  Rents and assessments, and installments on them, not
2366paid when due bear interest at the rate provided in the
2367cooperative documents from the date due until paid. This rate
2368may not exceed the rate allowed by law, and, if a no rate is not
2369provided in the cooperative documents, then interest accrues
2370shall accrue at 18 percent per annum. Also, If the cooperative
2371documents or bylaws so provide, the association may charge an
2372administrative late fee in addition to such interest, in an
2373amount not to exceed the greater of $25 or 5 percent of each
2374installment of the assessment for each delinquent installment
2375that the payment is late. Any payment received by an association
2376must shall be applied first to any interest accrued by the
2377association, then to any administrative late fee, then to any
2378costs and reasonable attorney's fees incurred in collection, and
2379then to the delinquent assessment. The foregoing applies shall
2380be applicable notwithstanding any restrictive endorsement,
2381designation, or instruction placed on or accompanying a payment.
2382A late fee is not subject to chapter 687 or s. 719.303(3).
2383     (4)  The association has shall have a lien on each
2384cooperative parcel for any unpaid rents and assessments, plus
2385interest, any authorized administrative late fees, and any
2386reasonable costs for collection services for which the
2387association has contracted against the unit owner of the
2388cooperative parcel. If authorized by the cooperative documents,
2389the said lien shall also secures secure reasonable attorney's
2390fees incurred by the association incident to the collection of
2391the rents and assessments or enforcement of such lien. The lien
2392is effective from and after the recording of a claim of lien in
2393the public records in the county in which the cooperative parcel
2394is located which states the description of the cooperative
2395parcel, the name of the unit owner, the amount due, and the due
2396dates. The lien expires shall expire if a claim of lien is not
2397filed within 1 year after the date the assessment was due, and
2398the no such lien does not shall continue for a longer period
2399than 1 year after the claim of lien has been recorded unless,
2400within that time, an action to enforce the lien is commenced in
2401a court of competent jurisdiction. Except as otherwise provided
2402in this chapter, a lien may not be filed by the association
2403against a cooperative parcel until 30 days after the date on
2404which a notice of intent to file a lien has been delivered to
2405the owner.
2406     (a)  The notice must be sent to the unit owner at the
2407address of the unit by first-class United States mail and:
2408     1.  If the most recent address of the unit owner on the
2409records of the association is the address of the unit, the
2410notice must be sent by registered or certified mail, return
2411receipt requested, to the unit owner at the address of the unit.
2412     2.  If the most recent address of the unit owner on the
2413records of the association is in the United States, but is not
2414the address of the unit, the notice must be sent by registered
2415or certified mail, return receipt requested, to the unit owner
2416at his or her most recent address.
2417     3.  If the most recent address of the unit owner on the
2418records of the association is not in the United States, the
2419notice must be sent by first-class United States mail to the
2420unit owner at his or her most recent address.
2421     (b)  A notice that is sent pursuant to this subsection is
2422deemed delivered upon mailing. No lien may be filed by the
2423association against a cooperative parcel until 30 days after the
2424date on which a notice of intent to file a lien has been served
2425on the unit owner of the cooperative parcel by certified mail or
2426by personal service in the manner authorized by chapter 48 and
2427the Florida Rules of Civil Procedure.
2428     (10)  If the unit is occupied by a tenant and the unit
2429owner is delinquent in paying any monetary obligation due to the
2430association, the association may make a written demand that the
2431tenant pay the future monetary obligations related to the
2432cooperative share to the association and the tenant must make
2433such payment. The demand is continuing in nature, and upon
2434demand, the tenant must pay the monetary obligations to the
2435association until the association releases the tenant or the
2436tenant discontinues tenancy in the unit. The association must
2437mail written notice to the unit owner of the association's
2438demand that the tenant make payments to the association. The
2439association shall, upon request, provide the tenant with written
2440receipts for payments made. A tenant who acts in good faith in
2441response to a written demand from an association is immune from
2442any claim from the unit owner.
2443     (a)  If the tenant prepaid rent to the unit owner before
2444receiving the demand from the association and provides written
2445evidence of paying the rent to the association within 14 days
2446after receiving the demand, the tenant shall receive credit for
2447the prepaid rent for the applicable period and must make any
2448subsequent rental payments to the association to be credited
2449against the monetary obligations of the unit owner to the
2450association.
2451     (b)  The tenant is not liable for increases in the amount
2452of the regular monetary obligations due unless the tenant was
2453notified in writing of the increase at least 10 days before the
2454date on which the rent is due. The liability of the tenant may
2455not exceed the amount due from the tenant to the tenant's
2456landlord. The tenant's landlord shall provide the tenant a
2457credit against rents due to the unit owner in the amount of
2458moneys paid to the association under this subsection.
2459     (c)  The association may issue notices under s. 83.56 and
2460may sue for eviction under ss. 83.59-83.625 as if the
2461association were a landlord under part II of chapter 83 if the
2462tenant fails to pay a required payment. However, the association
2463is not otherwise considered a landlord under chapter 83 and
2464specifically has no duties under s. 83.51.
2465     (d)  The tenant does not, by virtue of payment of monetary
2466obligations, have any of the rights of a unit owner to vote in
2467any election or to examine the books and records of the
2468association.
2469     (e)  A court may supersede the effect of this subsection by
2470appointing a receiver.
2471     Section 22.  Paragraph (b) of subsection (2), paragraphs
2472(a) and (c) of subsection (5), and paragraphs (b), (c), (d),
2473(f), and (g) of subsection (6) of section 720.303, Florida
2474Statutes, are amended, and subsection (12) is added to that
2475section, to read:
2476     720.303  Association powers and duties; meetings of board;
2477official records; budgets; financial reporting; association
2478funds; recalls.-
2479     (2)  BOARD MEETINGS.-
2480     (b)  Members have the right to attend all meetings of the
2481board and to speak on any matter placed on the agenda by
2482petition of the voting interests for at least 3 minutes. The
2483association may adopt written reasonable rules expanding the
2484right of members to speak and governing the frequency, duration,
2485and other manner of member statements, which rules must be
2486consistent with this paragraph and may include a sign-up sheet
2487for members wishing to speak. Notwithstanding any other law, the
2488requirement that board meetings and committee meetings be open
2489to the members is inapplicable to meetings between the board or
2490a committee and the association's attorney to discuss proposed
2491or pending litigation, or with respect to meetings of the board
2492held for the purpose of discussing personnel matters, are not
2493required to be open to the members other than directors.
2494     (5)  INSPECTION AND COPYING OF RECORDS.-The official
2495records shall be maintained within the state and must be open to
2496inspection and available for photocopying by members or their
2497authorized agents at reasonable times and places within 10
2498business days after receipt of a written request for access.
2499This subsection may be complied with by having a copy of the
2500official records available for inspection or copying in the
2501community. If the association has a photocopy machine available
2502where the records are maintained, it must provide parcel owners
2503with copies on request during the inspection if the entire
2504request is limited to no more than 25 pages.
2505     (a)  The failure of an association to provide access to the
2506records within 10 business days after receipt of a written
2507request submitted by certified mail, return receipt requested,
2508creates a rebuttable presumption that the association willfully
2509failed to comply with this subsection.
2510     (c)  The association may adopt reasonable written rules
2511governing the frequency, time, location, notice, records to be
2512inspected, and manner of inspections, but may not require impose
2513a requirement that a parcel owner to demonstrate any proper
2514purpose for the inspection, state any reason for the inspection,
2515or limit a parcel owner's right to inspect records to less than
2516one 8-hour business day per month. The association may impose
2517fees to cover the costs of providing copies of the official
2518records, including, without limitation, the costs of copying.
2519The association may charge up to 50 cents per page for copies
2520made on the association's photocopier. If the association does
2521not have a photocopy machine available where the records are
2522kept, or if the records requested to be copied exceed 25 pages
2523in length, the association may have copies made by an outside
2524vendor or association management company personnel and may
2525charge the actual cost of copying, including any reasonable
2526costs involving personnel fees and charges at an hourly rate for
2527vendor or employee time to cover administrative costs to the
2528vendor or association. The association shall maintain an
2529adequate number of copies of the recorded governing documents,
2530to ensure their availability to members and prospective members.
2531Notwithstanding the provisions of this paragraph, the following
2532records are shall not be accessible to members or parcel owners:
2533     1.  Any record protected by the lawyer-client privilege as
2534described in s. 90.502 and any record protected by the work-
2535product privilege, including, but not limited to, any record
2536prepared by an association attorney or prepared at the
2537attorney's express direction which reflects a mental impression,
2538conclusion, litigation strategy, or legal theory of the attorney
2539or the association and which was prepared exclusively for civil
2540or criminal litigation or for adversarial administrative
2541proceedings or which was prepared in anticipation of imminent
2542civil or criminal litigation or imminent adversarial
2543administrative proceedings until the conclusion of the
2544litigation or adversarial administrative proceedings.
2545     2.  Information obtained by an association in connection
2546with the approval of the lease, sale, or other transfer of a
2547parcel.
2548     3.  Disciplinary, health, insurance, and Personnel records
2549of the association's employees, including, but not limited to,
2550disciplinary, payroll, health, and insurance records.
2551     4.  Medical records of parcel owners or community
2552residents.
2553     5.  Social security numbers, driver's license numbers,
2554credit card numbers, electronic mailing addresses, telephone
2555numbers, emergency contact information, any addresses for a
2556parcel owner other than as provided for association notice
2557requirements, and other personal identifying information of any
2558person, excluding the person's name, parcel designation, mailing
2559address, and property address.
2560     6.  Any electronic security measure that is used by the
2561association to safeguard data, including passwords.
2562     7.  The software and operating system used by the
2563association which allows the manipulation of data, even if the
2564owner owns a copy of the same software used by the association.
2565The data is part of the official records of the association.
2566     (6)  BUDGETS.-
2567     (b)  In addition to annual operating expenses, the budget
2568may include reserve accounts for capital expenditures and
2569deferred maintenance for which the association is responsible.
2570If reserve accounts are not established pursuant to paragraph
2571(d), funding of such reserves is limited to the extent that the
2572governing documents do not limit increases in assessments,
2573including reserves. If the budget of the association includes
2574reserve accounts established pursuant to paragraph (d), such
2575reserves shall be determined, maintained, and waived in the
2576manner provided in this subsection. Once an association provides
2577for reserve accounts pursuant to paragraph (d) in the budget,
2578the association shall thereafter determine, maintain, and waive
2579reserves in compliance with this subsection. This section does
2580not preclude the termination of a reserve account established
2581pursuant to this paragraph upon approval of a majority of the
2582total voting interests of the association. Upon such approval,
2583the terminating reserve account shall be removed from the
2584budget.
2585     (c)1.  If the budget of the association does not provide
2586for reserve accounts pursuant to paragraph (d) governed by this
2587subsection and the association is responsible for the repair and
2588maintenance of capital improvements that may result in a special
2589assessment if reserves are not provided, each financial report
2590for the preceding fiscal year required by subsection (7) must
2591shall contain the following statement in conspicuous type:
2592
2593THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
2594RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
2595MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
2596OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
2597PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
2598FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
2599LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
2600THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
2601BY WRITTEN CONSENT.
2602
2603     2.  If the budget of the association does provide for
2604funding accounts for deferred expenditures, including, but not
2605limited to, funds for capital expenditures and deferred
2606maintenance, but such accounts are not created or established
2607pursuant to paragraph (d), each financial report for the
2608preceding fiscal year required under subsection (7) must also
2609contain the following statement in conspicuous type:
2610
2611THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED
2612VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
2613CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
2614TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
2615DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
2616PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
2617720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
2618SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
2619FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
2620ACCORDANCE WITH THAT STATUTE.
2621
2622     (d)  An association is shall be deemed to have provided for
2623reserve accounts if when reserve accounts have been initially
2624established by the developer or if when the membership of the
2625association affirmatively elects to provide for reserves. If
2626reserve accounts are not initially provided for by the
2627developer, the membership of the association may elect to do so
2628upon the affirmative approval of not less than a majority of the
2629total voting interests of the association. Such approval may be
2630obtained attained by vote of the members at a duly called
2631meeting of the membership or by the upon a written consent of
2632executed by not less than a majority of the total voting
2633interests of the association in the community. The approval
2634action of the membership must shall state that reserve accounts
2635shall be provided for in the budget and must designate the
2636components for which the reserve accounts are to be established.
2637Upon approval by the membership, the board of directors shall
2638include provide for the required reserve accounts for inclusion
2639in the budget in the next fiscal year following the approval and
2640in each year thereafter. Once established as provided in this
2641subsection, the reserve accounts must shall be funded or
2642maintained or shall have their funding waived in the manner
2643provided in paragraph (f).
2644     (f)  After one or more Once a reserve account or reserve
2645accounts are established, the membership of the association,
2646upon a majority vote at a meeting at which a quorum is present,
2647may provide for no reserves or less reserves than required by
2648this section. If a meeting of the unit owners has been called to
2649determine whether to waive or reduce the funding of reserves and
2650no such result is not achieved or a quorum is not present, the
2651reserves as included in the budget shall go into effect. After
2652the turnover, the developer may vote its voting interest to
2653waive or reduce the funding of reserves. Any vote taken pursuant
2654to this subsection to waive or reduce reserves is shall be
2655applicable only to one budget year.
2656     (g)  Funding formulas for reserves authorized by this
2657section must shall be based on either a separate analysis of
2658each of the required assets or a pooled analysis of two or more
2659of the required assets.
2660     1.  If the association maintains separate reserve accounts
2661for each of the required assets, the amount of the contribution
2662to each reserve account is shall be the sum of the following two
2663calculations:
2664     a.  The total amount necessary, if any, to bring a negative
2665component balance to zero.
2666     b.  The total estimated deferred maintenance expense or
2667estimated replacement cost of the reserve component less the
2668estimated balance of the reserve component as of the beginning
2669of the period for which the budget will be in effect. The
2670remainder, if greater than zero, shall be divided by the
2671estimated remaining useful life of the component.
2672
2673The formula may be adjusted each year for changes in estimates
2674and deferred maintenance performed during the year and may
2675include factors such as inflation and earnings on invested
2676funds.
2677     2.  If the association maintains a pooled account of two or
2678more of the required reserve assets, the amount of the
2679contribution to the pooled reserve account as disclosed on the
2680proposed budget may shall not be less than that required to
2681ensure that the balance on hand at the beginning of the period
2682for which the budget will go into effect plus the projected
2683annual cash inflows over the remaining estimated useful life of
2684all of the assets that make up the reserve pool are equal to or
2685greater than the projected annual cash outflows over the
2686remaining estimated useful lives of all of the assets that make
2687up the reserve pool, based on the current reserve analysis. The
2688projected annual cash inflows may include estimated earnings
2689from investment of principal and accounts receivable minus the
2690allowance for doubtful accounts. The reserve funding formula may
2691shall not include any type of balloon payments.
2692     (12)  COMPENSATION PROHIBITED.-A director, officer, or
2693committee member of the association may not directly receive any
2694salary or compensation from the association for the performance
2695of duties as a director, officer, or committee member and may
2696not in any other way benefit financially from service to the
2697association. This subsection does not preclude:
2698     (a)  Participation by such person in a financial benefit
2699accruing to all or a significant number of members as a result
2700of actions lawfully taken by the board or a committee of which
2701he or she is a member, including, but not limited to, routine
2702maintenance, repair, or replacement of community assets.
2703     (b)  Reimbursement for out-of-pocket expenses incurred by
2704such person on behalf of the association, subject to approval in
2705accordance with procedures established by the association's
2706governing documents or, in the absence of such procedures, in
2707accordance with an approval process established by the board.
2708     (c)  Any recovery of insurance proceeds derived from a
2709policy of insurance maintained by the association for the
2710benefit of its members.
2711     (d)  Any fee or compensation authorized in the governing
2712documents.
2713     (e)  Any fee or compensation authorized in advance by a
2714vote of a majority of the voting interests voting in person or
2715by proxy at a meeting of the members.
2716     (f)  A developer or its representative from serving as a
2717director, officer, or committee member of the association and
2718benefiting financially from service to the association.
2719     Section 23.  Paragraph (b) of subsection (2) of section
2720720.304, Florida Statutes, is amended to read:
2721     720.304  Right of owners to peaceably assemble; display of
2722flag; SLAPP suits prohibited.-
2723     (2)
2724     (b)  Any homeowner may erect a freestanding flagpole no
2725more than 20 feet high on any portion of the homeowner's real
2726property, regardless of any covenants, restrictions, bylaws,
2727rules, or requirements of the association, if the flagpole does
2728not obstruct sightlines at intersections and is not erected
2729within or upon an easement. The homeowner may further display in
2730a respectful manner from that flagpole, regardless of any
2731covenants, restrictions, bylaws, rules, or requirements of the
2732association, one official United States flag, not larger than 4
27331/2 feet by 6 feet, and may additionally display one official
2734flag of the State of Florida or the United States Army, Navy,
2735Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
2736additional flag must be equal in size to or smaller than the
2737United States flag. The flagpole and display are subject to all
2738building codes, zoning setbacks, and other applicable
2739governmental regulations, including, but not limited to, noise
2740and lighting ordinances in the county or municipality in which
2741the flagpole is erected and all setback and locational criteria
2742contained in the governing documents.
2743     Section 24.  Subsection (2) of section 720.305, Florida
2744Statutes, is amended to read:
2745     720.305  Obligations of members; remedies at law or in
2746equity; levy of fines and suspension of use rights.-
2747     (2)  If a member is delinquent for more than 90 days in
2748paying a monetary obligation due the association the governing
2749documents so provide, an association may suspend, until such
2750monetary obligation is paid for a reasonable period of time, the
2751rights of a member or a member's tenants, guests, or invitees,
2752or both, to use common areas and facilities and may levy
2753reasonable fines of up to, not to exceed $100 per violation,
2754against any member or any tenant, guest, or invitee. A fine may
2755be levied for on the basis of each day of a continuing
2756violation, with a single notice and opportunity for hearing,
2757except that a no such fine may not shall exceed $1,000 in the
2758aggregate unless otherwise provided in the governing documents.
2759A fine of less than $1,000 may shall not become a lien against a
2760parcel. In any action to recover a fine, the prevailing party is
2761entitled to collect its reasonable attorney's fees and costs
2762from the nonprevailing party as determined by the court. The
2763provisions regarding the suspension-of-use rights do not apply
2764to the portion of common areas that must be used to provide
2765access to the parcel or utility services provided to the parcel.
2766     (a)  A fine or suspension may not be imposed without notice
2767of at least 14 days' notice days to the person sought to be
2768fined or suspended and an opportunity for a hearing before a
2769committee of at least three members appointed by the board who
2770are not officers, directors, or employees of the association, or
2771the spouse, parent, child, brother, or sister of an officer,
2772director, or employee. If the committee, by majority vote, does
2773not approve a proposed fine or suspension, it may not be
2774imposed. If the association imposes a fine or suspension, the
2775association must provide written notice of such fine or
2776suspension by mail or hand delivery to the parcel owner and, if
2777applicable, to any tenant, licensee, or invitee of the parcel
2778owner.
2779     (b)  The requirements of this subsection do not apply to
2780the imposition of suspensions or fines upon any member because
2781of the failure of the member to pay assessments or other charges
2782when due if such action is authorized by the governing
2783documents.
2784     (b)(c)  Suspension of common-area-use rights do shall not
2785impair the right of an owner or tenant of a parcel to have
2786vehicular and pedestrian ingress to and egress from the parcel,
2787including, but not limited to, the right to park.
2788     Section 25.  Subsections (7), (8), and (9) of section
2789720.306, Florida Statutes, are amended to read:
2790     720.306  Meetings of members; voting and election
2791procedures; amendments.-
2792     (7)  ADJOURNMENT.-Unless the bylaws require otherwise,
2793adjournment of an annual or special meeting to a different date,
2794time, or place must be announced at that meeting before an
2795adjournment is taken, or notice must be given of the new date,
2796time, or place pursuant to s. 720.303(2). Any business that
2797might have been transacted on the original date of the meeting
2798may be transacted at the adjourned meeting. If a new record date
2799for the adjourned meeting is or must be fixed under s. 607.0707
2800s. 617.0707, notice of the adjourned meeting must be given to
2801persons who are entitled to vote and are members as of the new
2802record date but were not members as of the previous record date.
2803     (8)  PROXY VOTING.-The members have the right, unless
2804otherwise provided in this subsection or in the governing
2805documents, to vote in person or by proxy.
2806     (a)  To be valid, a proxy must be dated, must state the
2807date, time, and place of the meeting for which it was given, and
2808must be signed by the authorized person who executed the proxy.
2809A proxy is effective only for the specific meeting for which it
2810was originally given, as the meeting may lawfully be adjourned
2811and reconvened from time to time, and automatically expires 90
2812days after the date of the meeting for which it was originally
2813given. A proxy is revocable at any time at the pleasure of the
2814person who executes it. If the proxy form expressly so provides,
2815any proxy holder may appoint, in writing, a substitute to act in
2816his or her place.
2817     (b)  If the governing documents permit voting by secret
2818ballot by members who are not in attendance at a meeting of the
2819members for the election of directors, such ballots must be
2820placed in an inner envelope with no identifying markings and
2821mailed or delivered to the association in an outer envelope
2822bearing identifying information reflecting the name of the
2823member, the lot or parcel for which the vote is being cast, and
2824the signature of the lot or parcel owner casting that ballot. If
2825the eligibility of the member to vote is confirmed and no other
2826ballot has been submitted for that lot or parcel, the inner
2827envelope shall be removed from the outer envelope bearing the
2828identification information, placed with the ballots which were
2829personally cast, and opened when the ballots are counted. If
2830more than one ballot is submitted for a lot or parcel, the
2831ballots for that lot or parcel shall be disqualified. Any vote
2832by ballot received after the closing of the balloting may not be
2833considered.
2834     (9)  ELECTIONS AND BOARD VACANCIES.-Elections of directors
2835must be conducted in accordance with the procedures set forth in
2836the governing documents of the association. All members of the
2837association are shall be eligible to serve on the board of
2838directors, and a member may nominate himself or herself as a
2839candidate for the board at a meeting where the election is to be
2840held or, if the election process allows voting by absentee
2841ballot, in advance of the balloting. Except as otherwise
2842provided in the governing documents, boards of directors must be
2843elected by a plurality of the votes cast by eligible voters. Any
2844election dispute between a member and an association must be
2845submitted to mandatory binding arbitration with the division.
2846Such proceedings must shall be conducted in the manner provided
2847by s. 718.1255 and the procedural rules adopted by the division.
2848Unless otherwise provided in the bylaws, any vacancy occurring
2849on the board before the expiration of a term may be filled by an
2850affirmative vote of the majority of the remaining directors,
2851even if the remaining directors constitute less than a quorum,
2852or by the sole remaining director. In the alternative, a board
2853may hold an election to fill the vacancy, in which case the
2854election procedures must conform to the requirements of the
2855governing documents. Unless otherwise provided in the bylaws, a
2856board member appointed or elected under this section is
2857appointed for the unexpired term of the seat being filled.
2858Filling vacancies created by recall is governed by s.
2859720.303(10) and rules adopted by the division.
2860     Section 26.  Subsection (8) is added to section 720.3085,
2861Florida Statutes, to read:
2862     720.3085  Payment for assessments; lien claims.-
2863     (8)  If the parcel is occupied by a tenant and the parcel
2864owner is delinquent in paying any monetary obligation due to the
2865association, the association may demand that the tenant pay to
2866the association the future monetary obligations related to the
2867parcel. The demand is continuing in nature, and upon demand, the
2868tenant must continue to pay the monetary obligations until the
2869association releases the tenant or the tenant discontinues
2870tenancy in the parcel. A tenant who acts in good faith in
2871response to a written demand from an association is immune from
2872any claim from the parcel owner.
2873     (a)  If the tenant prepaid rent to the parcel owner before
2874receiving the demand from the association and provides written
2875evidence of paying the rent to the association within 14 days
2876after receiving the demand, the tenant shall receive credit for
2877the prepaid rent for the applicable period and must make any
2878subsequent rental payments to the association to be credited
2879against the monetary obligations of the parcel owner to the
2880association. The association shall, upon request, provide the
2881tenant with written receipts for payments made. The association
2882shall mail written notice to the parcel owner of the
2883association's demand that the tenant pay monetary obligations to
2884the association.
2885     (b)  The tenant is not liable for increases in the amount
2886of the monetary obligations due unless the tenant was notified
2887in writing of the increase at least 10 days before the date on
2888which the rent is due. The tenant shall be given a credit
2889against rents due to the parcel owner in the amount of
2890assessments paid to the association.
2891     (c)  The association may issue notices under s. 83.56 and
2892may sue for eviction under ss. 83.59-83.625 as if the
2893association were a landlord under part II of chapter 83 if the
2894tenant fails to pay a monetary obligation. However, the
2895association is not otherwise considered a landlord under chapter
289683 and specifically has no duties under s. 83.51.
2897     (d)  The tenant does not, by virtue of payment of monetary
2898obligations, have any of the rights of a parcel owner to vote in
2899any election or to examine the books and records of the
2900association.
2901     (e)  A court may supersede the effect of this subsection by
2902appointing a receiver.
2903     Section 27.  Subsection (6) is added to section 720.31,
2904Florida Statutes, to read:
2905     720.31  Recreational leaseholds; right to acquire;
2906escalation clauses.-
2907     (6)  An association may enter into agreements to acquire
2908leaseholds, memberships, and other possessory or use interests
2909in lands or facilities, including, but not limited to, country
2910clubs, golf courses, marinas, submerged land, parking areas,
2911conservation areas, and other recreational facilities. An
2912association may enter into such agreements regardless of whether
2913the lands or facilities are contiguous to the lands of the
2914community or whether such lands or facilities are intended to
2915provide enjoyment, recreation, or other use or benefit to the
2916owners. All leaseholds, memberships, and other possessory or use
2917interests existing or created at the time of recording the
2918declaration must be stated and fully described in the
2919declaration. Agreements acquiring leaseholds, memberships, or
2920other possessory or use interests not entered into within 12
2921months after recording the declaration may be entered into only
2922if authorized by the declaration as a material alteration or
2923substantial addition to the common areas or association
2924property. If the declaration is silent, any such transaction
2925requires the approval of 75 percent of the total voting
2926interests of the association. The declaration may provide that
2927the rental, membership fees, operations, replacements, or other
2928expenses are common expenses; impose covenants and restrictions
2929concerning their use; and contain other provisions not
2930inconsistent with this subsection. An association exercising its
2931rights under this subsection may join with other associations
2932that are part of the same development or with a master
2933association responsible for the enforcement of shared covenants,
2934conditions, and restrictions in carrying out the intent of this
2935subsection. This subsection is intended to clarify law in
2936existence before July 1, 2010.
2937     Section 28.  Section 720.315, Florida Statutes, is created
2938to read:
2939     720.315  Passage of special assessments.-Before turnover,
2940the board of directors controlled by the developer may not levy
2941a special assessment unless a majority of the parcel owners
2942other than the developer have approved the special assessment by
2943a majority vote at a duly called special meeting of the
2944membership at which a quorum is present.
2945     Section 29.  This act shall take effect July 1, 2010.


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