November 28, 2020
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_h1397__
HB 1397

1
A bill to be entitled
2An act relating to community associations; amending s.
320.165, F.S.; providing powers for employees of the
4Division of Florida Condominiums, Timeshares, and Mobile
5Homes; requiring each employee serving as a law
6enforcement officer for the division to meet the
7qualifications of a law enforcement officer set forth in
8ch. 943, F.S., for employment or appointment; requiring
9each such employee to be certified as a law enforcement
10officer by the Department of Law Enforcement; providing
11the law enforcement officer with certain powers,
12authority, jurisdiction, and responsibilities; amending s.
13468.436, F.S.; revising a ground for disciplinary action
14relating to misconduct or negligence; requiring the
15Department of Business and Professional Regulation to
16enter an order permanently revoking certain community
17association manager or firm licenses; creating s. 627.714,
18F.S.; requiring coverage under a condominium unit owner's
19policy or a cooperative shareholder's policy to include a
20minimum amount of loss assessment coverage; providing
21coverage requirements; amending s. 689.28, F.S.; revising
22the definition of the term "transfer fee"; amending s.
23718.111, F.S.; requiring coverage for certain personal
24property to be the responsibility of the condominium unit
25owner; revising board meeting notice requirements;
26requiring insurance policies issued or renewed on or after
27a specified date to conform to specified loss assessment
28coverage requirements; revising and deleting provisions
29relating to hazard or casualty insurance coverage
30requirements, to conform; deleting a provision requiring
31the condominium association to be an additional named
32insured and loss payee on all casualty insurance policies
33issued to unit owners in the condominium operated by the
34association; amending s. 718.112, F.S.; revising notice
35requirements for board of administration meetings;
36revising terms of board members; revising requirements for
37the reappointment of certain board members; revising
38election notice requirements; providing requirements for
39the amendment of association bylaws; providing for the
40removal of certain directors and officers; providing
41qualifications for service on the board of directors;
42amending s. 718.113, F.S.; authorizing the association to
43install code-compliant impact glass as hurricane
44protection in certain areas; amending s. 718.116, F.S.;
45revising provisions limiting the liability of a first
46mortgagee and its successors and assignees acquiring title
47to a unit by foreclosure or by deed in lieu of foreclosure
48for certain unpaid assessments; deleting an exemption from
49liability for certain persons acquiring title to a
50condominium as a result of the foreclosure of the mortgage
51or by deed in lieu of the foreclosure of the mortgage;
52providing procedures for a mortgagee filing a foreclosure
53case on a mortgage secured by a condominium unit;
54requiring mortgagees filing for foreclosure to make
55certain payments to the association; authorizing an
56association to demand future regular assessments related
57to the condominium unit under specified conditions;
58amending s. 718.1265, F.S.; providing conditions under
59which the association may use certain emergency powers;
60amending s. 718.3025, F.S.; requiring certain associations
61to enter into a management agreement with a licensed
62person or firm; amending s. 718.501, F.S.; revising
63condominium matters under which the division has
64jurisdiction; revising and providing powers of the
65division; requiring the division to create a specified
66booklet for association directors; amending s. 718.5012,
67F.S.; authorizing the Office of the Condominium Ombudsman
68to assist in the resolution of certain disputes; amending
69s. 718.50151, F.S.; redesignating the Community
70Association Living Study Council as the Community
71Association Study Council; revising council membership;
72amending s. 719.103, F.S.; revising definitions; changing
73references from unit owner to shareholder in statutes
74relating to cooperatives; amending s. 719.104, F.S.;
75providing civil penalties for violations of accounting
76records requirements; exempting certain personal
77information from unit owner records requests; providing
78immunity from liability for certain information provided
79by associations to prospective purchasers or lienholders
80under certain circumstances; providing legislative intent;
81requiring that property insurance be based upon the
82replacement cost of the property to be insured as
83determined by an independent insurance appraisal or update
84of a prior appraisal; requiring that the full insurable
85value be determined at specified intervals; providing
86means by which an association may provide adequate
87property insurance coverage; authorizing an association to
88consider certain information when determining coverage
89amounts; providing for coverage by developer-controlled
90associations; providing that policies may include
91deductibles as determined by the association's board of
92directors; providing requirements and guidelines for the
93establishment of such deductibles; requiring that the
94amounts of deductibles be set at a meeting of the board;
95providing requirements for such meeting; requiring that an
96association controlled by shareholders operating as a
97residential cooperative use its best efforts to obtain and
98maintain adequate insurance to protect the association and
99property under its supervision or control; authorizing an
100association to obtain and maintain liability insurance for
101directors and officers, insurance for the benefit of
102association employees, and flood insurance for common
103elements, association property, and units; requiring that
104every property insurance policy issued or renewed on or
105after a specified date for the purpose of protecting the
106cooperative provide certain coverage; requiring that such
107policies contain certain provisions; providing
108responsibilities of the shareholder and association with
109regard to reconstruction work and associated costs after a
110casualty loss; requiring the association to maintain
111certain insurance or fidelity bonding for persons who
112control or disburse funds of the association; providing
113requirements with respect to financial statements and
114reports; providing that the operation of the cooperative
115shall be by the association; providing that shareholders
116shall be members of the association; providing legislative
117intent; providing that a director of the association who
118abstains from voting on any action taken on any corporate
119matter shall be presumed to have taken no position with
120regard to the action; providing duties of officers,
121directors, and agents of a cooperative association and
122liability for monetary damages under certain
123circumstances; providing that the association may
124contract, sue, or be sued with respect to the exercise or
125nonexercise of its powers; providing powers of the
126association with respect to title to property and purchase
127of units; amending s. 719.106, F.S.; requiring certain
128items to be placed on the agenda of board meetings;
129providing requirements for shareholder meetings; providing
130terms of office and election requirements for the board of
131directors; providing criteria for the amendment of the
132bylaws; providing eligibility to vote on certain questions
133involving reserve funds; requiring proxy questions
134relating to reserves to contain a specified statement;
135requiring the bylaws to contain certain provisions;
136requiring that directors and officers who are delinquent
137in certain payments owed in excess of certain periods of
138time be deemed to have abandoned their offices; requiring
139that directors and officers charged with certain offenses
140involving an association's funds or property be suspended
141from office pending resolution of the charge; providing
142for the reinstatement of such directors and officers under
143certain circumstances; providing qualifications for
144directors; repealing s. 719.1064, F.S., relating to the
145failure to fill vacancies on board of administration and
146the appointment of a receiver upon petition of a
147shareholder; amending s. 719.107, F.S.; providing the
148expense of installation, replacement, operation, repair,
149and maintenance of hurricane shutters or other hurricane
150protection shall constitute either a common expense or
151shall be charged individually to the shareholders under
152certain conditions; amending s. 719.108, F.S.; limiting
153the liability of a first mortgagee and its successor and
154assignees acquiring title to a unit by foreclosure or by
155deed in lieu of foreclosure for certain unpaid
156assessments; requiring mortgagees filing for foreclosure
157to make certain payments to the association; providing a
158statement of clarification and applicability; providing a
159definition; providing grounds for disapproval of the
160proposed lease of a unit by an association; providing lien
161requirements; providing for the extension of certain
162liens; providing lien notice and filing requirements;
163providing foreclosure requirements; providing the
164association with the power to purchase a cooperative unit
165at a foreclosure sale; requiring the association to
166provide a certificate of assessment under certain
167conditions; providing for the establishment of fees for
168the preparation of such certificates; providing for the
169refund of certain fees; authorizing the association to
170demand payment of future assessments under certain
171circumstances; creating s. 719.113, F.S.; providing that
172maintenance of common areas is the responsibility of the
173association; providing that the cooperative documents may
174include reference that the association provide certain
175maintenance for the condominium; providing that there
176shall be no material alteration or substantial additions
177to the common areas or to real property which is
178association property; providing for protection of the
179common areas; allowing shareholders to display a United
180States flag as well as other specified flags on designated
181days and patriotic holidays; requiring the board to adopt
182hurricane shutter specifications; authorizing the board to
183install certain hurricane protection; prohibiting the
184board from installing certain hurricane shutters or other
185hurricane protection under certain circumstances;
186providing for the maintenance, repair, and replacement of
187hurricane shutters or other hurricane protection;
188authorizing the board to operate hurricane shutters
189without shareholder permission under certain
190circumstances; prohibiting the board from refusing to
191approve the installation or replacement of hurricane
192shutters under certain conditions; requiring that the
193board inspect certain buildings and issue a report under
194certain conditions; providing an exception; prohibiting
195the board from refusing a request for reasonable
196accommodation for the attachment to a unit of religious
197objects meeting certain size specifications; authorizing
198the board to install solar collectors, clotheslines, or
199other energy-efficient devices upon or within common areas
200or association property; creating s. 719.117, F.S.;
201providing legislative findings; providing provisions
202relating to the termination of the cooperative form of
203ownership of a property due to economic waste or
204impossibility or optional termination; providing grounds
205for termination; providing an exemption; providing that
206the approval of a plan of termination by certain mortgage
207lienholders is not required under certain conditions;
208providing powers and duties of the board relating to the
209plan of termination; providing requirements following
210natural disasters; providing reporting requirements;
211providing requirements for a plan of termination;
212providing for the allocation of proceeds from the sale of
213cooperative property; providing powers and duties of a
214termination trustee; providing notice requirements;
215providing a procedure for contesting a plan of
216termination; providing for recovery of attorney's fees and
217costs; providing rules for the distribution of property
218and sale proceeds; providing for the association's status
219following termination; allowing the creation of another
220cooperative by the trustee; creating s. 719.1224, F.S.;
221prohibiting strategic lawsuits against public
222participation; providing legislative findings and intent;
223prohibiting a governmental entity, business organization,
224or individual from filing certain lawsuits made upon
225specified bases against a shareholder; providing rights of
226a shareholder who has been served with such a lawsuit;
227providing procedures for the resolution of certain claims;
228providing for the award of damages and attorney's fees;
229prohibiting associations from expending association funds
230in prosecuting such a suit against a shareholder; amending
231s. 719.1255, F.S.; requiring the division to provide
232alternative dispute resolution for certain matters;
233creating s. 719.1265, F.S.; authorizing an association to
234exercise certain powers in instances involving damage
235caused by an event for which a state of emergency has been
236declared; limiting the applicability of such powers;
237amending s. 719.301, F.S.; providing circumstances under
238which shareholders other than a developer may elect not
239less than a majority of the members of the board;
240requiring a turnover inspection report; requiring that the
241report contain certain information; creating s. 719.3025,
242F.S.; requiring written contracts for the operation,
243maintenance, or management of a cooperative association or
244cooperative property; providing contract requirements;
245authorizing the association to procure outside services
246under certain circumstances; providing that services or
247obligations not stated on the face of the contract shall
248be unenforceable; providing applicability; amending s.
249719.3026, F.S.; revising a provision authorizing certain
250associations to opt out of provisions relating to
251contracts for products and services; removing provisions
252exempting contracts executed before a specified date from
253certain competitive bid requirements; providing
254requirements for any contract or transaction between an
255association and one or more of its directors or a
256specified other entity in which one or more of its
257directors are directors or officers or have a financial
258interest; amending s. 719.303, F.S.; providing that
259hearings regarding noncompliance with a declaration be
260held before certain persons; amending s. 719.501, F.S.;
261providing authority and responsibilities of the division;
262providing for enforcement actions brought by the division
263in its own name; providing for the imposition of penalties
264by the division; requiring that the division issue a
265subpoena requiring production of certain requested records
266under certain circumstances; providing for the issuance of
267notice of a declaratory statement with respect to
268documents governing a cooperative; deleting requirement
269that the division adopt certain accounting principles;
270requiring that the division provide training and
271educational programs for association board members and
272shareholders; authorizing the division to include certain
273training components, review or approve training and
274educational programs offered by providers, and maintain a
275list of approved programs and providers; requiring the
276division to develop a program to certify both volunteer
277and paid mediators; providing responsibilities of the
278division with regard to such mediators; requiring that
279certain individuals cooperate with the division in any
280investigation conducted by the division; requiring the
281division to cooperate with similar agencies in other
282jurisdictions to establish certain procedures, standards,
283and forms; specifying what constitutes completeness of
284notice to developer; authorizing the division to issue a
285notice to show cause; requiring an association to pay any
286penalty due to the division before having standing to
287maintain or defend any action in the courts of this state;
288creating s. 719.5011, F.S.; requiring the Office of the
289Condominium Ombudsman to assist cooperative associations
290and cooperative shareholders; amending s. 719.503, F.S.;
291providing shareholder disclosure requirements for the sale
292of interest in a cooperative association; amending s.
293720.3085, F.S.; revising provisions relating to the
294effectiveness and priority of homeowners' association
295liens; revising provisions limiting the liability of a
296first mortgagee and its successors and assignees acquiring
297title to a unit by foreclosure or by deed in lieu of
298foreclosure for certain unpaid assessments; requiring
299mortgagees filing for foreclosure to make certain payments
300to the association; amending s. 721.16, F.S.; conforming a
301cross-reference; requiring a study by the Office of
302Program Policy Analysis and Government Accountability for
303specified purposes; requiring a report to the Legislature
304by a specified date; providing an effective date.
305
306Be It Enacted by the Legislature of the State of Florida:
307
308     Section 1.  Subsection (10) is added to section 20.165,
309Florida Statutes, to read:
310     20.165  Department of Business and Professional
311Regulation.--There is created a Department of Business and
312Professional Regulation.
313     (10)(a)  All employees authorized by the Division of
314Florida Condominiums, Timeshares, and Mobile Homes shall have
315access to and shall have the right to examine and inspect the
316premises, books, and records of any condominium, cooperative,
317timeshare, or mobile home park regulated by the division. Such
318employees shall also have access to and shall have the right to
319examine and inspect the books and records of any community
320association manager or firm employed by any condominium,
321cooperative, timeshare, or mobile home park regulated by the
322division. The authorized employees shall require of each
323licensee strict compliance with the laws of this state relating
324to the transaction of such business or operation.
325     (b)  Each employee serving as a law enforcement officer for
326the division must meet the qualifications for employment or
327appointment as a law enforcement officer set forth under s.
328943.13 and must be certified as a law enforcement officer by the
329Department of Law Enforcement under chapter 943. Upon
330certification, each law enforcement officer is subject to and
331has the same authority as provided for law enforcement officers
332generally in chapter 901 and has statewide jurisdiction. Each
333officer also has arrest authority as provided for state law
334enforcement officers in s. 901.15. Each officer possesses the
335full law enforcement powers granted to other peace officers of
336this state, including the authority to make arrests, carry
337firearms, serve court process, and seize contraband and the
338proceeds of illegal activities.
339     (c)  The primary responsibility of each officer appointed
340under this subsection is to investigate, enforce, and prosecute,
341throughout the state, violations and violators of part VIII of
342chapter 468, chapters 718, 719, 721, and 723, and the rules
343adopted thereunder, as well as other state laws that the
344division or all state law enforcement officers are specifically
345authorized to enforce. The secondary responsibility of each
346officer appointed under this subsection is to enforce all other
347state laws, provided that the enforcement is incidental to
348exercising the officer's primary responsibility, and the officer
349exercises the powers of a deputy sheriff, only after
350consultation or coordination with the appropriate local
351sheriff's office or municipal police department or when the
352division participates in the Florida Mutual Aid Plan during a
353declared state emergency.
354     Section 2.  Paragraph (b) of subsection (2) of section
355468.436, Florida Statutes, is amended, and subsection (6) is
356added to that section, to read:
357     468.436  Disciplinary proceedings.--
358     (2)  The following acts constitute grounds for which the
359disciplinary actions in subsection (4) may be taken:
360     (b)1.  Violation of any provision of this part.
361     2.  Violation of any lawful order or rule rendered or
362adopted by the department or the council.
363     3.  Being convicted of or pleading nolo contendere to a
364felony in any court in the United States.
365     4.  Obtaining a license or certification or any other
366order, ruling, or authorization by means of fraud,
367misrepresentation, or concealment of material facts.
368     5.  Committing acts of gross misconduct or gross negligence
369in connection with the profession.
370     6.  Contracting, on behalf of an association, with any
371entity in which the licensee has a financial interest that is
372not disclosed.
373     (6)  Upon the fifth or later finding that a community
374association manager or firm is guilty of any of the grounds set
375forth in subsection (2), the department's discretion under
376subsection (4) shall not apply and the division shall enter an
377order permanently revoking the license.
378     Section 3.  Section 627.714, Florida Statutes, is created
379to read:
380     627.714  Condominium unit owners' and cooperative
381shareholders' coverage; loss assessment coverage required.--For
382policies issued or renewed on or after July 1, 2009, coverage
383under a condominium unit owner's policy or a cooperative
384shareholder's policy shall include loss assessment coverage of
385at least $2,000. Such loss assessment coverage shall cover the
386unit owner's or shareholder's share of an assessment against all
387condominium unit owners or cooperative shareholders by the
388association, up to the limit of liability in effect at the time
389of the loss which results in the assessment. At a minimum, the
390loss assessment coverage must cover assessments for a loss to
391property for a peril insured by the association.
392     Section 4.  Paragraph (c) of subsection (2) of section
393689.28, Florida Statutes, is amended to read:
394     689.28  Prohibition against transfer fee covenants.--
395     (2)  DEFINITIONS.--As used in this section, the term:
396     (c)  "Transfer fee" means a fee or charge required by a
397transfer fee covenant and payable upon the transfer of an
398interest in real property, or payable for the right to make or
399accept such transfer, regardless of whether the fee or charge is
400a fixed amount or is determined as a percentage of the value of
401the property, the purchase price, or other consideration given
402for the transfer. The following are not transfer fees for
403purposes of this section:
404     1.  Any consideration payable by the grantee to the grantor
405for the interest in real property being transferred, including
406any subsequent additional consideration for the property payable
407by the grantee based upon any subsequent appreciation,
408development, or sale of the property. For the purposes of this
409subparagraph, an interest in real property may include a
410separate mineral estate and its appurtenant surface access
411rights.
412     2.  Any commission payable to a licensed real estate broker
413for the transfer of real property pursuant to an agreement
414between the broker and the grantor or the grantee, including any
415subsequent additional commission for that transfer payable by
416the grantor or the grantee based upon any subsequent
417appreciation, development, or sale of the property.
418     3.  Any interest, charges, fees, or other amounts payable
419by a borrower to a lender pursuant to a loan secured by a
420mortgage against real property, including, but not limited to,
421any fee payable to the lender for consenting to an assumption of
422the loan or a transfer of the real property subject to the
423mortgage, any fees or charges payable to the lender for estoppel
424letters or certificates, and any shared appreciation interest or
425profit participation or other consideration described in s.
426687.03(4) and payable to the lender in connection with the loan.
427     4.  Any rent, reimbursement, charge, fee, or other amount
428payable by a lessee to a lessor under a lease, including, but
429not limited to, any fee payable to the lessor for consenting to
430an assignment, subletting, encumbrance, or transfer of the
431lease.
432     5.  Any consideration payable to the holder of an option to
433purchase an interest in real property or the holder of a right
434of first refusal or first offer to purchase an interest in real
435property for waiving, releasing, or not exercising the option or
436right upon the transfer of the property to another person.
437     6.  Any tax, fee, charge, assessment, fine, or other amount
438payable to or imposed by a governmental authority.
439     7.  Any fee, charge, assessment, fine, or other amount
440payable to a homeowners', condominium, cooperative, mobile home,
441or property owners' association pursuant to a declaration or
442covenant or law applicable to such association, including, but
443not limited to, fees or charges payable for estoppel letters or
444certificates issued by the association or its authorized agent.
445     8.  Any fee, charge, assessment, dues, contribution, or
446other amount imposed by a declaration or covenant encumbering
447four or more parcels in a community, as defined in s. 720.301,
448and payable to a nonprofit or charitable organization for the
449purpose of supporting cultural, educational, charitable,
450recreational, environmental, conservation, or other similar
451activities benefiting the community that is subject to the
452declaration or covenant.
453     7.9.  Any fee, charge, assessment, dues, contribution, or
454other amount pertaining to the purchase or transfer of a club
455membership relating to real property owned by the member,
456including, but not limited to, any amount determined by
457reference to the value, purchase price, or other consideration
458given for the transfer of the real property.
459     8.10.  Any payment required pursuant to an environmental
460covenant.
461     Section 5.  Subsection (11) and paragraph (b) of subsection
462(12) of section 718.111, Florida Statutes, are amended to read:
463     718.111  The association.--
464     (11)  INSURANCE.--In order to protect the safety, health,
465and welfare of the people of the State of Florida and to ensure
466consistency in the provision of insurance coverage to
467condominiums and their unit owners, this subsection applies to
468every residential condominium in the state, regardless of the
469date of its declaration of condominium. It is the intent of the
470Legislature to encourage lower or stable insurance premiums for
471associations described in this subsection.
472     (a)  Adequate property hazard insurance, regardless of any
473requirement in the declaration of condominium for coverage by
474the association for full insurable value, replacement cost, or
475similar coverage, shall be based upon the replacement cost of
476the property to be insured as determined by an independent
477insurance appraisal or update of a prior appraisal. The full
478insurable value shall be determined at least once every 36
479months.
480     1.  An association or group of associations may provide
481adequate property hazard insurance through a self-insurance fund
482that complies with the requirements of ss. 624.460-624.488.
483     2.  The association may also provide adequate property
484hazard insurance coverage for a group of no fewer than three
485communities created and operating under this chapter, chapter
486719, chapter 720, or chapter 721 by obtaining and maintaining
487for such communities property insurance coverage sufficient to
488cover an amount equal to the probable maximum loss for the
489communities for a 250-year windstorm event. Such probable
490maximum loss must be determined through the use of a competent
491model that has been accepted by the Florida Commission on
492Hurricane Loss Projection Methodology. No policy or program
493providing such coverage shall be issued or renewed after July 1,
4942008, unless it has been reviewed and approved by the Office of
495Insurance Regulation. The review and approval shall include
496approval of the policy and related forms pursuant to ss. 627.410
497and 627.411, approval of the rates pursuant to s. 627.062, a
498determination that the loss model approved by the commission was
499accurately and appropriately applied to the insured structures
500to determine the 250-year probable maximum loss, and a
501determination that complete and accurate disclosure of all
502material provisions is provided to condominium unit owners prior
503to execution of the agreement by a condominium association.
504     3.  When determining the adequate amount of property hazard
505insurance coverage, the association may consider deductibles as
506determined by this subsection.
507     (b)  If an association is a developer-controlled
508association, the association shall exercise its best efforts to
509obtain and maintain property insurance as described in paragraph
510(a). Failure to obtain and maintain adequate property hazard
511insurance during any period of developer control constitutes a
512breach of fiduciary responsibility by the developer-appointed
513members of the board of directors of the association, unless the
514members can show that despite such failure, they have made their
515best efforts to maintain the required coverage.
516     (c)  Policies may include deductibles as determined by the
517board.
518     1.  The deductibles shall be consistent with industry
519standards and prevailing practice for communities of similar
520size and age, and having similar construction and facilities in
521the locale where the condominium property is situated.
522     2.  The deductibles may be based upon available funds,
523including reserve accounts, or predetermined assessment
524authority at the time the property insurance is obtained.
525     3.  The board shall establish the amount of deductibles
526based upon the level of available funds and predetermined
527assessment authority at a meeting of the board. Such meeting
528shall be open to all unit owners in the manner set forth in s.
529718.112(2)(e). The notice of such meeting must state the
530proposed deductible and the available funds and the assessment
531authority relied upon by the board and estimate any potential
532assessment amount against each unit, if any. The meeting
533described in this paragraph may be held in conjunction with a
534meeting to consider the proposed budget or an amendment thereto.
535     (d)  An association controlled by unit owners operating as
536a residential condominium shall use its best efforts to obtain
537and maintain adequate property insurance to protect the
538association, the association property, the common elements, and
539the condominium property that is required to be insured by the
540association pursuant to this subsection.
541     (e)  The declaration of condominium as originally recorded,
542or as amended pursuant to procedures provided therein, may
543provide that condominium property consisting of freestanding
544buildings comprised of no more than one building in or on such
545unit need not be insured by the association if the declaration
546requires the unit owner to obtain adequate property insurance
547for the condominium property. An association may also obtain and
548maintain liability insurance for directors and officers,
549insurance for the benefit of association employees, and flood
550insurance for common elements, association property, and units.
551     (f)  Every property hazard insurance policy issued or
552renewed on or after July January 1, 2009, for the purpose of
553protecting the condominium shall provide primary coverage for:
554     1.  All portions of the condominium property as originally
555installed or replacement of like kind and quality, in accordance
556with the original plans and specifications.
557     2.  All alterations or additions made to the condominium
558property or association property pursuant to s. 718.113(2).
559     3.  The coverage shall exclude all personal property within
560the unit or limited common elements, and floor, wall, and
561ceiling coverings, electrical fixtures, appliances, water
562heaters, water filters, built-in cabinets and countertops, air-
563conditioning and heating equipment that serves a single unit,
564and window treatments, including curtains, drapes, blinds,
565hardware, and similar window treatment components, or
566replacements of any of the foregoing. Such property and any
567insurance therefor shall be the responsibility of the unit
568owner.
569     (g)  A condominium unit owner's policy issued after July 1,
5702009, shall conform to the requirements of s. 627.714. Every
571hazard insurance policy issued or renewed on or after January 1,
5722009, to an individual unit owner must contain a provision
573stating that the coverage afforded by such policy is excess
574coverage over the amount recoverable under any other policy
575covering the same property. Such policies must include special
576assessment coverage of no less than $2,000 per occurrence. An
577insurance policy issued to an individual unit owner providing
578such coverage does not provide rights of subrogation against the
579condominium association operating the condominium in which such
580individual's unit is located.
581     1.  All improvements or additions to the condominium
582property that benefit fewer than all unit owners shall be
583insured by the unit owner or owners having the use thereof, or
584may be insured by the association at the cost and expense of the
585unit owners having the use thereof.
586     2.  The association shall require each owner to provide
587evidence of a currently effective policy of hazard and liability
588insurance upon request, but not more than once per year. Upon
589the failure of an owner to provide a certificate of insurance
590issued by an insurer approved to write such insurance in this
591state within 30 days after the date on which a written request
592is delivered, the association may purchase a policy of insurance
593on behalf of an owner. The cost of such a policy, together with
594reconstruction costs undertaken by the association but which are
595the responsibility of the unit owner, may be collected in the
596manner provided for the collection of assessments in s. 718.116.
597     1.3.  All reconstruction work after a casualty loss shall
598be undertaken by the association except as otherwise authorized
599in this section. A unit owner may undertake reconstruction work
600on portions of the unit with the prior written consent of the
601board of administration. However, such work may be conditioned
602upon the approval of the repair methods, the qualifications of
603the proposed contractor, or the contract that is used for that
604purpose. A unit owner shall obtain all required governmental
605permits and approvals prior to commencing reconstruction.
606     2.4.  Unit owners are responsible for the cost of
607reconstruction of any portions of the condominium property for
608which the association does not unit owner is required to carry
609property casualty insurance, and any such reconstruction work
610undertaken by the association shall be chargeable to the unit
611owner and enforceable as an assessment pursuant to s. 718.116.
612The association must be an additional named insured and loss
613payee on all casualty insurance policies issued to unit owners
614in the condominium operated by the association.
615     3.5.  A multicondominium association may elect, by a
616majority vote of the collective members of the condominiums
617operated by the association, to operate such condominiums as a
618single condominium for purposes of insurance matters, including,
619but not limited to, the purchase of the property hazard
620insurance required by this section and the apportionment of
621deductibles and damages in excess of coverage. The election to
622aggregate the treatment of insurance premiums, deductibles, and
623excess damages constitutes an amendment to the declaration of
624all condominiums operated by the association, and the costs of
625insurance shall be stated in the association budget. The
626amendments shall be recorded as required by s. 718.110.
627     (h)  The association shall maintain insurance or fidelity
628bonding of all persons who control or disburse funds of the
629association. The insurance policy or fidelity bond must cover
630the maximum funds that will be in the custody of the association
631or its management agent at any one time. As used in this
632paragraph, the term "persons who control or disburse funds of
633the association" includes, but is not limited to, those
634individuals authorized to sign checks on behalf of the
635association, and the president, secretary, and treasurer of the
636association. The association shall bear the cost of any such
637bonding.
638     (i)  The association may amend the declaration of
639condominium without regard to any requirement for approval by
640mortgagees of amendments affecting insurance requirements for
641the purpose of conforming the declaration of condominium to the
642coverage requirements of this subsection.
643     (j)  Any portion of the condominium property required to be
644insured by the association against property casualty loss
645pursuant to paragraph (f) which is damaged by casualty shall be
646reconstructed, repaired, or replaced as necessary by the
647association as a common expense. All property hazard insurance
648deductibles, uninsured losses, and other damages in excess of
649property hazard insurance coverage under the property hazard
650insurance policies maintained by the association are a common
651expense of the condominium, except that:
652     1.  A unit owner is responsible for the costs of repair or
653replacement of any portion of the condominium property not paid
654by insurance proceeds, if such damage is caused by intentional
655conduct, negligence, or failure to comply with the terms of the
656declaration or the rules of the association by a unit owner, the
657members of his or her family, unit occupants, tenants, guests,
658or invitees, without compromise of the subrogation rights of any
659insurer as set forth in paragraph (g).
660     2.  The provisions of subparagraph 1. regarding the
661financial responsibility of a unit owner for the costs of
662repairing or replacing other portions of the condominium
663property also apply to the costs of repair or replacement of
664personal property of other unit owners or the association, as
665well as other property, whether real or personal, which the unit
666owners are required to insure under paragraph (g).
667     3.  To the extent the cost of repair or reconstruction for
668which the unit owner is responsible under this paragraph is
669reimbursed to the association by insurance proceeds, and, to the
670extent the association has collected the cost of such repair or
671reconstruction from the unit owner, the association shall
672reimburse the unit owner without the waiver of any rights of
673subrogation.
674     4.  The association is not obligated to pay for repair or
675reconstruction or repairs of property casualty losses as a
676common expense if the property casualty losses were known or
677should have been known to a unit owner and were not reported to
678the association until after the insurance claim of the
679association for that property casualty was settled or resolved
680with finality, or denied on the basis that it was untimely
681filed.
682     (k)  An association may, upon the approval of a majority of
683the total voting interests in the association, opt out of the
684provisions of paragraph (j) for the allocation of repair or
685reconstruction expenses and allocate repair or reconstruction
686expenses in the manner provided in the declaration as originally
687recorded or as amended. Such vote may be approved by the voting
688interests of the association without regard to any mortgagee
689consent requirements.
690     (l)  In a multicondominium association that has not
691consolidated its financial operations under subsection (6), any
692condominium operated by the association may opt out of the
693provisions of paragraph (j) with the approval of a majority of
694the total voting interests in that condominium. Such vote may be
695approved by the voting interests without regard to any mortgagee
696consent requirements.
697     (m)  Any association or condominium voting to opt out of
698the guidelines for repair or reconstruction expenses as
699described in paragraph (j) must record a notice setting forth
700the date of the opt-out vote and the page of the official
701records book on which the declaration is recorded. The decision
702to opt out is effective upon the date of recording of the notice
703in the public records by the association. An association that
704has voted to opt out of paragraph (j) may reverse that decision
705by the same vote required in paragraphs (k) and (l), and notice
706thereof shall be recorded in the official records.
707     (n)  The association is not obligated to pay for any
708reconstruction or repair expenses due to property casualty loss
709to any improvements installed by a current or former owner of
710the unit or by the developer if the improvement benefits only
711the unit for which it was installed and is not part of the
712standard improvements installed by the developer on all units as
713part of original construction, whether or not such improvement
714is located within the unit. This paragraph does not relieve any
715party of its obligations regarding recovery due under any
716insurance implemented specifically for any such improvements.
717     (o)  The provisions of this subsection shall not apply to
718timeshare condominium associations. Insurance for timeshare
719condominium associations shall be maintained pursuant to s.
720721.165.
721     (12)  OFFICIAL RECORDS.--
722     (b)  The official records of the association shall be
723maintained within the state for at least 7 years. The records of
724the association shall be made available to a unit owner within
72545 miles of the condominium property or within the county in
726which the condominium property is located within 5 working days
727after receipt of written request by the board or its designee.
728However, such distance requirement does not apply to an
729association governing a timeshare condominium. This paragraph
730may be complied with by having a copy of the official records of
731the association available for inspection or copying on the
732condominium property or association property., or The
733association may offer the option of making the records of the
734association available to a unit owner either electronically via
735the Internet or by allowing the records to be viewed in
736electronic format on a computer screen and printed upon request.
737     Section 6.  Paragraphs (c), (d), (h), and (o) of subsection
738(2) of section 718.112, Florida Statutes, are amended, and
739paragraph (p) is added to that subsection, to read:
740     718.112  Bylaws.--
741     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
742following and, if they do not do so, shall be deemed to include
743the following:
744     (c)  Board of administration meetings.--Meetings of the
745board of administration at which a quorum of the members is
746present shall be open to all unit owners. Any unit owner may
747tape record or videotape meetings of the board of
748administration. The right to attend such meetings includes the
749right to speak at such meetings with reference to all designated
750agenda items. The division shall adopt reasonable rules
751governing the tape recording and videotaping of the meeting. The
752association may adopt written reasonable rules governing the
753frequency, duration, and manner of unit owner statements.
754Adequate notice of all meetings, which notice shall specifically
755incorporate an identification of agenda items, shall be posted
756conspicuously on the condominium property at least 48 continuous
757hours preceding the meeting except in an emergency. If 20
758percent of the voting interests petition the board to address an
759item of business, the board shall at its next regular board
760meeting or at a special meeting of the board, but not later than
76160 days after the receipt of the petition, place the item on the
762agenda. Any item not included on the notice may be taken up on
763an emergency basis by at least a majority plus one of the
764members of the board. Such emergency action shall be noticed and
765ratified at the next regular meeting of the board. However,
766written notice of any meeting at which nonemergency special
767assessments, or at which amendment to rules regarding unit use,
768will be considered shall be mailed, delivered, or electronically
769transmitted to the unit owners and posted conspicuously on the
770condominium property not less than 14 days prior to the meeting.
771Evidence of compliance with this 14-day notice shall be made by
772an affidavit executed by the person providing the notice and
773filed among the official records of the association. Upon notice
774to the unit owners, the board shall by duly adopted rule
775designate a specific location on the condominium property or
776association property upon which all notices of board meetings
777shall be posted. If there is no condominium property or
778association property upon which notices can be posted, notices
779of board meetings shall be mailed, delivered, or electronically
780transmitted at least 14 days before the meeting to the owner of
781each unit. In lieu of or in addition to the physical posting of
782notice of any meeting of the board of administration on the
783condominium property, the association may, by reasonable rule,
784adopt a procedure for conspicuously posting and repeatedly
785broadcasting the notice and the agenda on a closed-circuit cable
786television system serving the condominium association. However,
787if broadcast notice is used in lieu of a notice posted
788physically on the condominium property, the notice and agenda
789must be broadcast at least four times every broadcast hour of
790each day that a posted notice is otherwise required under this
791section. When broadcast notice is provided, the notice and
792agenda must be broadcast in a manner and for a sufficient
793continuous length of time so as to allow an average reader to
794observe the notice and read and comprehend the entire content of
795the notice and the agenda. Notice of any meeting in which
796regular or special assessments against unit owners are to be
797considered for any reason shall specifically state that
798assessments will be considered and the nature, actual estimated
799cost, and description of the purposes for such assessments.
800Meetings of a committee to take final action on behalf of the
801board or make recommendations to the board regarding the
802association budget are subject to the provisions of this
803paragraph. Meetings of a committee that does not take final
804action on behalf of the board or make recommendations to the
805board regarding the association budget are subject to the
806provisions of this section, unless those meetings are exempted
807from this section by the bylaws of the association.
808Notwithstanding any other law, the requirement that board
809meetings and committee meetings be open to the unit owners is
810inapplicable to meetings between the board or a committee and
811the association's attorney, with respect to proposed or pending
812litigation, when the meeting is held for the purpose of seeking
813or rendering legal advice.
814     (d)  Unit owner meetings.--
815     1.  There shall be an annual meeting of the unit owners
816held at the location provided in the association bylaws and, if
817the bylaws are silent as to the location, the meeting shall be
818held within 45 miles of the condominium property. However, such
819distance requirement does not apply to an association governing
820a timeshare condominium. Unless the bylaws provide otherwise, a
821vacancy on the board caused by the expiration of a director's
822term shall be filled by electing a new board member, and the
823election shall be by secret ballot; however, if the number of
824vacancies equals or exceeds the number of candidates, no
825election is required. The terms of all members of the board
826shall expire at the first annual meeting after July 1, 2009, and
827at each the annual meeting thereafter and such board members may
828stand for reelection unless otherwise permitted by the bylaws.
829In the event that the bylaws permit staggered terms of no more
830than 2 years and upon approval of a majority of the total voting
831interests, the association board members may serve 2-year
832staggered terms starting with the first annual meeting after
833July 1, 2009, at which time the newly elected directors shall,
834by random lot, determine which directors shall serve a full 2-
835year term and which directors shall only serve a 1-year term in
836order to maintain staggered terms. If no person is interested in
837or demonstrates an intention to run for the position of a board
838member whose term has expired according to the provisions of
839this subparagraph, such board member whose term has expired
840shall be automatically reappointed to the board of
841administration and need not stand for reelection. In a
842condominium association of more than 10 units, coowners of a
843unit may not serve as members of the board of directors at the
844same time. Any unit owner desiring to be a candidate for board
845membership shall comply with subparagraph 3. A person who has
846been suspended or removed by the division under this chapter, or
847who is delinquent in the payment of any fee or assessment as
848provided in paragraph (n), is not eligible for board membership.
849A person who has been convicted of any felony in this state or
850in a United States District or Territorial Court, or who has
851been convicted of any offense in another jurisdiction that would
852be considered a felony if committed in this state, is not
853eligible for board membership unless such felon's civil rights
854have been restored for a period of no less than 5 years as of
855the date on which such person seeks election to the board. The
856validity of an action by the board is not affected if it is
857later determined that a member of the board is ineligible for
858board membership due to having been convicted of a felony.
859     2.  The bylaws shall provide the method of calling meetings
860of unit owners, including annual meetings. Written notice, which
861notice must include an agenda, shall be mailed, hand delivered,
862or electronically transmitted to each unit owner at least 14
863days prior to the annual meeting and shall be posted in a
864conspicuous place on the condominium property at least 14
865continuous days preceding the annual meeting. Upon notice to the
866unit owners, the board shall by duly adopted rule designate a
867specific location on the condominium property or association
868property upon which all notices of unit owner meetings shall be
869posted; however, if there is no condominium property or
870association property upon which notices can be posted, this
871requirement does not apply. In lieu of or in addition to the
872physical posting of notice of any meeting of the unit owners on
873the condominium property, the association may, by reasonable
874rule, adopt a procedure for conspicuously posting and repeatedly
875broadcasting the notice and the agenda on a closed-circuit cable
876television system serving the condominium association. However,
877if broadcast notice is used in lieu of a notice posted
878physically on the condominium property, the notice and agenda
879must be broadcast at least four times every broadcast hour of
880each day that a posted notice is otherwise required under this
881section. When broadcast notice is provided, the notice and
882agenda must be broadcast in a manner and for a sufficient
883continuous length of time so as to allow an average reader to
884observe the notice and read and comprehend the entire content of
885the notice and the agenda. Unless a unit owner waives in writing
886the right to receive notice of the annual meeting, such notice
887shall be hand delivered, mailed, or electronically transmitted
888to each unit owner. Notice for meetings and notice for all other
889purposes shall be mailed to each unit owner at the address last
890furnished to the association by the unit owner, or hand
891delivered to each unit owner. However, if a unit is owned by
892more than one person, the association shall provide notice, for
893meetings and all other purposes, to that one address which the
894developer initially identifies for that purpose and thereafter
895as one or more of the owners of the unit shall so advise the
896association in writing, or if no address is given or the owners
897of the unit do not agree, to the address provided on the deed of
898record. An officer of the association, or the manager or other
899person providing notice of the association meeting, shall
900provide an affidavit or United States Postal Service certificate
901of mailing, to be included in the official records of the
902association affirming that the notice was mailed or hand
903delivered, in accordance with this provision.
904     3.  The members of the board shall be elected by written
905ballot or voting machine. Proxies shall in no event be used in
906electing the board, either in general elections or elections to
907fill vacancies caused by recall, resignation, or otherwise,
908unless otherwise provided in this chapter. Not less than 60 days
909before a scheduled election, the association shall mail,
910deliver, or electronically transmit, whether by separate
911association mailing or included in another association mailing,
912delivery, or transmission, including regularly published
913newsletters, to each unit owner entitled to a vote, a first
914notice of the date of the election along with a certification
915form provided by the division attesting that he or she has read
916and understands, to the best of his or her ability, the
917governing documents of the association and the provisions of
918this chapter and any applicable rules. Any unit owner or other
919eligible person desiring to be a candidate for the board must
920give written notice to the association not less than 40 days
921before a scheduled election. Together with the written notice
922and agenda as set forth in subparagraph 2., the association
923shall mail, deliver, or electronically transmit a second notice
924of the election to all unit owners entitled to vote therein,
925together with a ballot which shall list all candidates. Upon
926request of a candidate, the association shall include an
927information sheet, no larger than 81/2 inches by 11 inches,
928which must be furnished by the candidate not less than 35 days
929before the election, along with the signed certification form
930provided for in this subparagraph, to be included with the
931mailing, delivery, or transmission of the ballot, with the costs
932of mailing, delivery, or electronic transmission and copying to
933be borne by the association. The association is not liable for
934the contents of the information sheets prepared by the
935candidates. In order to reduce costs, the association may print
936or duplicate the information sheets on both sides of the paper.
937The division shall by rule establish voting procedures
938consistent with the provisions contained herein, including rules
939establishing procedures for giving notice by electronic
940transmission and rules providing for the secrecy of ballots.
941Elections shall be decided by a plurality of those ballots cast.
942There shall be no quorum requirement; however, at least 20
943percent of the eligible voters must cast a ballot in order to
944have a valid election of members of the board. No unit owner
945shall permit any other person to vote his or her ballot, and any
946such ballots improperly cast shall be deemed invalid, provided
947any unit owner who violates this provision may be fined by the
948association in accordance with s. 718.303. A unit owner who
949needs assistance in casting the ballot for the reasons stated in
950s. 101.051 may obtain assistance in casting the ballot. The
951regular election shall occur on the date of the annual meeting.
952The provisions of this subparagraph shall not apply to timeshare
953condominium associations. Notwithstanding the provisions of this
954subparagraph, an election is not required unless more candidates
955file notices of intent to run or are nominated than board
956vacancies exist.
957     4.  Any approval by unit owners called for by this chapter
958or the applicable declaration or bylaws, including, but not
959limited to, the approval requirement in s. 718.111(8), shall be
960made at a duly noticed meeting of unit owners and shall be
961subject to all requirements of this chapter or the applicable
962condominium documents relating to unit owner decisionmaking,
963except that unit owners may take action by written agreement,
964without meetings, on matters for which action by written
965agreement without meetings is expressly allowed by the
966applicable bylaws or declaration or any statute that provides
967for such action.
968     5.  Unit owners may waive notice of specific meetings if
969allowed by the applicable bylaws or declaration or any statute.
970If authorized by the bylaws, notice of meetings of the board of
971administration, unit owner meetings, except unit owner meetings
972called to recall board members under paragraph (j), and
973committee meetings may be given by electronic transmission to
974unit owners who consent to receive notice by electronic
975transmission.
976     6.  Unit owners shall have the right to participate in
977meetings of unit owners with reference to all designated agenda
978items. However, the association may adopt reasonable rules
979governing the frequency, duration, and manner of unit owner
980participation.
981     7.  Any unit owner may tape record or videotape a meeting
982of the unit owners subject to reasonable rules adopted by the
983division.
984     8.  Unless otherwise provided in the bylaws, any vacancy
985occurring on the board before the expiration of a term may be
986filled by the affirmative vote of the majority of the remaining
987directors, even if the remaining directors constitute less than
988a quorum, or by the sole remaining director. In the alternative,
989a board may hold an election to fill the vacancy, in which case
990the election procedures must conform to the requirements of
991subparagraph 3. unless the association governs 10 units or less
992and has opted out of the statutory election process, in which
993case the bylaws of the association control. Unless otherwise
994provided in the bylaws, a board member appointed or elected
995under this section shall fill the vacancy for the unexpired term
996of the seat being filled. Filling vacancies created by recall is
997governed by paragraph (j) and rules adopted by the division.
998     9.  Notwithstanding subparagraphs (b)2. and (d)3., an
999association of 10 or fewer units may, by the affirmative vote of
1000a majority of the total voting interests, provide for different
1001voting and election procedures in its bylaws, which vote may be
1002by a proxy specifically delineating the different voting and
1003election procedures. The different voting and election
1004procedures may provide for elections to be conducted by limited
1005or general proxy.
1006     (h)  Amendment of bylaws.--
1007     1.  The method by which the bylaws may be amended
1008consistent with the provisions of this chapter shall be stated.
1009If the bylaws fail to provide a method of amendment, the bylaws
1010may be amended if the amendment is approved by the owners of not
1011less than two-thirds of the voting interests.
1012     2.  No bylaw shall be revised or amended by reference to
1013its title or number only. Proposals to amend existing bylaws
1014shall contain the full text of the bylaws to be amended; new
1015words shall be inserted in the text underlined, and words to be
1016deleted shall be lined through with hyphens. However, if the
1017proposed change is so extensive that this procedure would
1018hinder, rather than assist, the understanding of the proposed
1019amendment, it is not necessary to use underlining and hyphens as
1020indicators of words added or deleted, but, instead, a notation
1021must be inserted immediately preceding the proposed amendment in
1022substantially the following language: "Substantial rewording of
1023bylaw. See bylaw _____ for present text."
1024     3.  Nonmaterial errors or omissions in the bylaw process
1025will not invalidate an otherwise properly promulgated amendment.
1026     4.  If the bylaws provide for amendment by the board of
1027administration, no bylaw may be amended unless it is heard and
1028noticed at two consecutive meetings of the board of
1029administration that are at least 1 week apart. If the bylaws
1030provide for amendment of the bylaws by a vote of the unit
1031owners, the meeting at which the vote is to be taken must be
1032conducted between the hours of 6 p.m. and 10 p.m. local time.
1033     (o)  Director or officer offenses.--A director or officer
1034charged by information or indictment with a felony theft or
1035embezzlement offense involving the association's funds or
1036property shall be removed from office, creating a vacancy in the
1037office to be filled according to law. While such director or
1038officer has such criminal charge pending in the state or federal
1039court system, he or she may not be appointed or elected to a
1040position as a director or officer. However, should the charges
1041be resolved without a finding of guilt, the director or officer
1042shall be reinstated for the remainder of his or her term of
1043office, if any.
1044     (p)  Qualification of directors.--In addition to any other
1045requirement for office in statute or in the governing documents
1046of the association, a person running for or seeking appointment
1047to the board must meet the following qualifications:
1048     1.  In a condominium association of 10 or more units, only
1049one individual coowner of a unit may serve on the board of
1050administration.
1051     2.  No person may serve as a director of any condominium
1052association in the state if restricted from serving by action of
1053the division pursuant to s. 718.501(1)(d)6.
1054     3.  A person who has been convicted of any felony in this
1055state or in a United States District or Territorial Court, or
1056who has been convicted of any offense in another jurisdiction
1057that would be considered a felony if committed in this state, is
1058not eligible for board membership unless such felon's civil
1059rights have been restored for a period of no less than 5 years
1060as of the date on which such person seeks election to the board.
1061     4.  Within 30 days after being elected or appointed to the
1062board of administration, a director shall certify in writing to
1063the secretary of the association that he or she has read parts I
1064and III of chapter 718; ss. 718.501, 617.0202, 617.0206,
1065617.0302-617.0304, 617.0501, 617.0505, 617.0801-617.0833,
1066617.0840-617.0843, 617.1622, and 617.2102; and the association's
1067declaration of condominium, articles of incorporation, bylaws,
1068and current written policies. The director shall further certify
1069that he or she will work to uphold such documents and policies
1070to the best of his or her ability, and that he or she will
1071faithfully discharge his or her fiduciary responsibility to the
1072association's members. If the division finds that a director has
1073falsely certified that he or she has read the required statutes
1074and documents, the division shall order the director removed
1075from the board and shall order the director to reimburse the
1076division for the cost of prosecution and hearing.
1077     5.  After turnover of the association pursuant to s.
1078718.301(2), a director must:
1079     a.  If the unit is owned by an individual or individuals,
1080be one of those individuals.
1081     b.  If the unit is owned by a trust, be an individual
1082qualified pursuant to s. 617.0802.
1083     c.  If the unit is owned by an entity other than a trust,
1084be an individual designated by the entity that owns the unit.
1085
1086These qualifications shall operate on a continuing basis, and
1087upon a failure of a director at any time to fail to meet a
1088qualification, the secretary shall certify that the director is
1089removed from office and that a vacancy in office exists.
1090     Section 7.  Paragraph (a) of subsection (5) of section
1091718.113, Florida Statutes, is amended to read:
1092     718.113  Maintenance; limitation upon improvement; display
1093of flag; hurricane shutters; display of religious decorations.--
1094     (5)  Each board of administration shall adopt hurricane
1095shutter specifications for each building within each condominium
1096operated by the association which shall include color, style,
1097and other factors deemed relevant by the board. All
1098specifications adopted by the board shall comply with the
1099applicable building code.
1100     (a)  The board may, subject to the provisions of s.
1101718.3026, and the approval of a majority of voting interests of
1102the condominium, install hurricane shutters or hurricane
1103protection that complies with or exceeds the applicable building
1104code, or both, except that a vote of the owners is not required
1105if the maintenance, repair, and replacement of hurricane
1106shutters or other forms of hurricane protection are the
1107responsibility of the association pursuant to the declaration of
1108condominium. However, where hurricane protection or laminated
1109glass or window film architecturally designed to function as
1110hurricane protection which complies with or exceeds the current
1111applicable building code has been previously installed, the
1112board may not install hurricane shutters or other hurricane
1113protection. Code-compliant impact glass may be installed by the
1114association as hurricane protection if the area in which the
1115glass is to be installed is an area that is the responsibility
1116of the association. If a unit owner installed code-compliant
1117impact glass prior to the association voting to install such
1118glass, and such glass and the frame thereof complies with the
1119current applicable building codes and is otherwise in good
1120repair, the unit owner shall not be required to pay the unit
1121owner's pro rata share of the cost of installing code-compliant
1122impact glass to the condominium association, notwithstanding s.
1123718.116(9).
1124     Section 8.  Subsection (1) of section 718.116, Florida
1125Statutes, is amended, and subsection (11) is added to that
1126section, to read:
1127     718.116  Assessments; liability; lien and priority;
1128interest; collection; rent during foreclosure.--
1129     (1)(a)  A unit owner, regardless of how his or her title
1130has been acquired, including by purchase at a foreclosure sale
1131or by deed in lieu of foreclosure, is liable for all assessments
1132which come due while he or she is the unit owner. Additionally,
1133a unit owner is jointly and severally liable with the previous
1134owner for all unpaid assessments that came due up to the time of
1135transfer of title. This liability is without prejudice to any
1136right the owner may have to recover from the previous owner the
1137amounts paid by the owner.
1138     (b)  The liability of a first mortgagee or its successor or
1139assignees who acquire title to a unit by foreclosure or by deed
1140in lieu of foreclosure for the unpaid assessments that became
1141due prior to the mortgagee's acquisition of title is limited to
1142the lesser of:
1143     1.  The unit's unpaid common expenses and regular periodic
1144assessments which accrued or came due during the 24 6 months
1145immediately preceding the acquisition of title and for which
1146payment in full has not been received by the association; or
1147     2.  One-half of the unit's unpaid common expenses and
1148regular periodic assessments which accrued or came due from the
1149filing of the foreclosure action through the sale of the unit,
1150provided that the mortgagee timely paid in full the payment
1151required by paragraph (e) and, at the same time, remitted to the
1152association advanced common expenses and regular periodic
1153assessments equal to one-half of the total unpaid common
1154expenses and regular periodic assessments that came due in that
1155time period. Any such advance shall be taxed as a cost in the
1156foreclosure action, and the mortgagor shall be personally liable
1157to the mortgagee for the value of the payment made to the
1158association plus interest at the interest rate provided for in
1159the promissory note for advances. One percent of the original
1160mortgage debt. The provisions of this paragraph apply only if
1161the first mortgagee joined the association as a defendant in the
1162foreclosure action. Joinder of the association is not required
1163if, on the date the complaint is filed, the association was
1164dissolved or did not maintain an office or agent for service of
1165process at a location which was known to or reasonably
1166discoverable by the mortgagee.
1167     (c)  The person acquiring title shall pay the amount owed
1168to the association within 30 days after transfer of title.
1169Failure to pay the full amount when due shall entitle the
1170association to record a claim of lien against the parcel and
1171proceed in the same manner as provided in this section for the
1172collection of unpaid assessments.
1173     (d)  With respect to each timeshare unit, each owner of a
1174timeshare estate therein is jointly and severally liable for the
1175payment of all assessments and other charges levied against or
1176with respect to that unit pursuant to the declaration or bylaws,
1177except to the extent that the declaration or bylaws may provide
1178to the contrary.
1179     (e)  A mortgagee who files a foreclosure case on a mortgage
1180secured by a condominium unit shall pay to the association
1181within 15 days after the filing of the action all of the
1182condominium unit's then unpaid common expenses and regular
1183periodic assessments which accrued or came due up to the date of
1184the filing of the foreclosure action. The payment shall be taxed
1185as a cost in the foreclosure action, and the mortgagor shall be
1186personally liable to the mortgagee for the value of the payment
1187made to the association plus interest at the interest rate
1188provided for in the promissory note for advances. The court
1189shall dismiss a foreclosure action on the association's motion
1190to dismiss for failure to make such payment and shall award the
1191association the costs and reasonable attorney's fees related to
1192the motion. Notwithstanding the provisions of paragraph (b), a
1193first mortgagee or its successor or assignees who acquire title
1194to a condominium unit as a result of the foreclosure of the
1195mortgage or by deed in lieu of foreclosure of the mortgage shall
1196be exempt from liability for all unpaid assessments attributable
1197to the parcel or chargeable to the previous owner which came due
1198prior to acquisition of title if the first mortgage was recorded
1199prior to April 1, 1992. If, however, the first mortgage was
1200recorded on or after April 1, 1992, or on the date the mortgage
1201was recorded, the declaration included language incorporating by
1202reference future amendments to this chapter, the provisions of
1203paragraph (b) shall apply.
1204     (f)  The provisions of this subsection are intended to
1205clarify existing law, and shall not be available in any case
1206where the unpaid assessments sought to be recovered by the
1207association are secured by a lien recorded prior to the
1208recording of the mortgage. Notwithstanding the provisions of
1209chapter 48, the association shall be a proper party to intervene
1210in any foreclosure proceeding to seek equitable relief.
1211     (g)  For purposes of this subsection, the term "successor
1212or assignee" as used with respect to a first mortgagee includes
1213only a subsequent holder of the first mortgage.
1214     (11)  During the pendency of any foreclosure action of a
1215condominium unit, if the unit is occupied by a tenant and the
1216unit owner is delinquent in the payment of regular assessments,
1217the association may demand that the tenant pay to the
1218association the future regular assessments related to the
1219condominium unit. The demand shall be continuing in nature, and
1220upon demand the tenant shall continue to pay the regular
1221assessments to the association until the association releases
1222the tenant or the tenant discontinues tenancy in the unit. The
1223association shall mail written notice to the unit owner of the
1224association's demand that the tenant pay regular assessments to
1225the association. The tenant shall not be liable for increases in
1226the amount of the regular assessment due unless the tenant was
1227reasonably notified of the increase prior to the day that the
1228rent is due. The tenant shall be given a credit against rents
1229due to the unit owner in the amount of assessments paid to the
1230association. The association shall, upon request, provide the
1231tenant with written receipts for payments made. The association
1232may issue notices under s. 83.56 and may sue for eviction under
1233ss. 83.59-83.625 as if the association were a landlord under
1234part II of chapter 83 should the tenant fail to pay an
1235assessment. However, the association shall not otherwise be
1236considered a landlord under chapter 83 and shall specifically
1237not have any duty under s. 83.51. The tenant shall not, by
1238virtue of payment of assessments, have any of the rights of a
1239unit owner to vote in any election or to examine the books and
1240records of the association. A court may supersede the effect of
1241this subsection by appointing a receiver.
1242     Section 9.  Subsection (2) of section 718.1265, Florida
1243Statutes, is amended to read:
1244     718.1265  Association emergency powers.--
1245     (2)  The special powers authorized under subsection (1)
1246shall be limited to that time reasonably necessary to protect
1247the health, safety, and welfare of the association and the unit
1248owners and the unit owners' family members, tenants, guests,
1249agents, or invitees and shall be reasonably necessary to
1250mitigate further damage and make emergency repairs.
1251Additionally, unless 20 percent or more of the units are made
1252uninhabitable by the emergency, the special powers authorized
1253under subsection (1) shall only be exercised during the term of
1254the Governor's executive order or proclamation declaring the
1255state of emergency in the locale in which the condominium is
1256located.
1257     Section 10.  Subsection (5) is added to section 718.3025,
1258Florida Statutes, to read:
1259     718.3025  Agreements for operation, maintenance, or
1260management of condominiums; specific requirements.--
1261     (5)  A condominium association with total annual revenues
1262of $250,000 or more shall enter into a management agreement with
1263a person or firm licensed under part VIII of chapter 468.
1264     Section 11.  Subsection (1) of section 718.501, Florida
1265Statutes, is amended, and subsection (3) is added to that
1266section, to read:
1267     718.501  Authority, responsibility, and duties of Division
1268of Florida Condominiums, Timeshares, and Mobile Homes.--
1269     (1)  The Division of Florida Condominiums, Timeshares, and
1270Mobile Homes of the Department of Business and Professional
1271Regulation, referred to as the "division" in this part, has the
1272power to enforce and ensure compliance with the provisions of
1273this chapter and rules relating to the development,
1274construction, sale, lease, ownership, operation, and management
1275of residential condominium units. In performing its duties, the
1276division has complete jurisdiction to investigate complaints and
1277enforce compliance with the provisions of this chapter with
1278respect to associations that are still under developer control
1279and complaints against developers involving improper turnover or
1280failure to turnover, pursuant to s. 718.301. However, after
1281turnover has occurred, the division shall only have jurisdiction
1282to investigate complaints related to financial issues,
1283elections, and unit owner access to association records pursuant
1284to s. 718.111(12).
1285     (a)1.  The division may make necessary public or private
1286investigations within or outside this state to determine whether
1287any person has violated this chapter or any rule or order
1288hereunder, to aid in the enforcement of this chapter, or to aid
1289in the adoption of rules or forms hereunder.
1290     2.  The division may submit any official written report,
1291worksheet, or other related paper, or a duly certified copy
1292thereof, compiled, prepared, drafted, or otherwise made by and
1293duly authenticated by a financial examiner or analyst to be
1294admitted as competent evidence in any hearing in which the
1295financial examiner or analyst is available for cross-examination
1296and attests under oath that such documents were prepared as a
1297result of an examination or inspection conducted pursuant to
1298this chapter.
1299     (b)  The division may require or permit any person to file
1300a statement in writing, under oath or otherwise, as the division
1301determines, as to the facts and circumstances concerning a
1302matter to be investigated.
1303     (c)  For the purpose of any investigation under this
1304chapter, the division director or any officer or employee
1305designated by the division director may administer oaths or
1306affirmations, subpoena witnesses and compel their attendance,
1307take evidence, and require the production of any matter which is
1308relevant to the investigation, including the existence,
1309description, nature, custody, condition, and location of any
1310books, documents, or other tangible things and the identity and
1311location of persons having knowledge of relevant facts or any
1312other matter reasonably calculated to lead to the discovery of
1313material evidence. Upon the failure by a person to obey a
1314subpoena or to answer questions propounded by the investigating
1315officer and upon reasonable notice to all persons affected
1316thereby, the division may apply to the circuit court for an
1317order compelling compliance.
1318     (d)  Notwithstanding any remedies available to unit owners
1319and associations, if the division has reasonable cause to
1320believe that a violation of any provision of this chapter or
1321related rule has occurred, the division may institute
1322enforcement proceedings in its own name against any developer,
1323association, officer, or member of the board of administration,
1324or its assignees or agents, as follows:
1325     1.  The division may permit a person whose conduct or
1326actions may be under investigation to waive formal proceedings
1327and enter into a consent proceeding whereby orders, rules, or
1328letters of censure or warning, whether formal or informal, may
1329be entered against the person.
1330     2.  The division may issue an order requiring the
1331developer, association, developer-designated officer, or
1332developer-designated member of the board of administration,
1333developer-designated assignees or agents, community association
1334manager, or community association management firm to cease and
1335desist from the unlawful practice and take such affirmative
1336action as in the judgment of the division will carry out the
1337purposes of this chapter. If the division finds that a
1338developer, association, officer, or member of the board of
1339administration, or its assignees or agents, is violating or is
1340about to violate any provision of this chapter, any rule adopted
1341or order issued by the division, or any written agreement
1342entered into with the division, and presents an immediate danger
1343to the public requiring an immediate final order, it may issue
1344an emergency cease and desist order reciting with particularity
1345the facts underlying such findings. The emergency cease and
1346desist order is effective for 90 days. If the division begins
1347nonemergency cease and desist proceedings, the emergency cease
1348and desist order remains effective until the conclusion of the
1349proceedings under ss. 120.569 and 120.57.
1350     3.  If a developer fails to pay any restitution determined
1351by the division to be owed, plus any accrued interest at the
1352highest rate permitted by law, within 30 days after expiration
1353of any appellate time period of a final order requiring payment
1354of restitution or the conclusion of any appeal thereof,
1355whichever is later, the division shall bring an action in
1356circuit or county court on behalf of any association, class of
1357unit owners, lessees, or purchasers for restitution, declaratory
1358relief, injunctive relief, or any other available remedy. The
1359division may also temporarily revoke its acceptance of the
1360filing for the developer to which the restitution relates until
1361payment of restitution is made.
1362     4.  The division may petition the court for the appointment
1363of a receiver or conservator. If appointed, the receiver or
1364conservator may take action to implement the court order to
1365ensure the performance of the order and to remedy any breach
1366thereof. In addition to all other means provided by law for the
1367enforcement of an injunction or temporary restraining order, the
1368circuit court may impound or sequester the property of a party
1369defendant, including books, papers, documents, and related
1370records, and allow the examination and use of the property by
1371the division and a court-appointed receiver or conservator.
1372     5.  The division may apply to the circuit court for an
1373order of restitution whereby the defendant in an action brought
1374pursuant to subparagraph 4. shall be ordered to make restitution
1375of those sums shown by the division to have been obtained by the
1376defendant in violation of this chapter. Such restitution shall,
1377at the option of the court, be payable to the conservator or
1378receiver appointed pursuant to subparagraph 4. or directly to
1379the persons whose funds or assets were obtained in violation of
1380this chapter.
1381     6.  The division may impose a civil penalty against a
1382developer or association, or its assignee or agent, for any
1383violation of this chapter or a rule adopted under this chapter.
1384The division may impose a civil penalty individually against any
1385officer or board member who willfully and knowingly violates a
1386provision of this chapter, adopted rule, or a final order of the
1387division; may order the removal of such individual as an officer
1388or from the board of administration or as an officer of the
1389association; and may prohibit such individual from serving as an
1390officer or on the board of a community association for a period
1391of time. The term "willfully and knowingly" means that the
1392division informed the officer or board member that his or her
1393action or intended action violates this chapter, a rule adopted
1394under this chapter, or a final order of the division and that
1395the officer or board member refused to comply with the
1396requirements of this chapter, a rule adopted under this chapter,
1397or a final order of the division. The division, prior to
1398initiating formal agency action under chapter 120, shall afford
1399the officer or board member an opportunity to voluntarily comply
1400with this chapter, a rule adopted under this chapter, or a final
1401order of the division. An officer or board member who complies
1402within 10 days is not subject to a civil penalty. A penalty may
1403be imposed on the basis of each day of continuing violation, but
1404in no event shall the penalty for any offense exceed $5,000. By
1405January 1, 1998, the division shall adopt, by rule, penalty
1406guidelines applicable to possible violations or to categories of
1407violations of this chapter or rules adopted by the division. The
1408guidelines must specify a meaningful range of civil penalties
1409for each such violation of the statute and rules and must be
1410based upon the harm caused by the violation, the repetition of
1411the violation, and upon such other factors deemed relevant by
1412the division. For example, the division may consider whether the
1413violations were committed by a developer or owner-controlled
1414association, the size of the association, and other factors. The
1415guidelines must designate the possible mitigating or aggravating
1416circumstances that justify a departure from the range of
1417penalties provided by the rules. It is the legislative intent
1418that minor violations be distinguished from those which endanger
1419the health, safety, or welfare of the condominium residents or
1420other persons and that such guidelines provide reasonable and
1421meaningful notice to the public of likely penalties that may be
1422imposed for proscribed conduct. This subsection does not limit
1423the ability of the division to informally dispose of
1424administrative actions or complaints by stipulation, agreed
1425settlement, or consent order. All amounts collected shall be
1426deposited with the Chief Financial Officer to the credit of the
1427Division of Florida Condominiums, Timeshares, and Mobile Homes
1428Trust Fund. If a developer fails to pay the civil penalty and
1429the amount deemed to be owed to the association, the division
1430shall issue an order directing that such developer cease and
1431desist from further operation until such time as the civil
1432penalty is paid or may pursue enforcement of the penalty in a
1433court of competent jurisdiction. If an association fails to pay
1434the civil penalty, the division shall pursue enforcement in a
1435court of competent jurisdiction, and the order imposing the
1436civil penalty or the cease and desist order will not become
1437effective until 20 days after the date of such order. Any action
1438commenced by the division shall be brought in the county in
1439which the division has its executive offices or in the county
1440where the violation occurred.
1441     7.  If a unit owner presents the division with proof that
1442the unit owner has requested access to official records in
1443writing by certified mail, and that after 10 days the unit owner
1444again made the same request for access to official records in
1445writing by certified mail, and that more than 10 days has
1446elapsed since the second request and the association has still
1447failed or refused to provide access to official records as
1448required by this chapter, the division shall issue a subpoena
1449requiring production of the requested records where the records
1450are kept pursuant to s. 718.112.
1451     8.  In addition to subparagraph 6., the division may seek
1452the imposition of a civil penalty through the circuit court for
1453any violation for which the division may issue a notice to show
1454cause under paragraph (r). The civil penalty shall be at least
1455$500 but no more than $5,000 for each violation. The court may
1456also award to the prevailing party court costs and reasonable
1457attorney's fees and, if the division prevails, may also award
1458reasonable costs of investigation.
1459     9.  Notwithstanding subparagraph 6., when the division
1460finds that an officer or director has intentionally falsified
1461association records with the intent to conceal material facts
1462from the division, the board, or unit owners, the division shall
1463prohibit the officer or director from acting as an officer or
1464director of any condominium, cooperative, or homeowners'
1465association for at least 1 year.
1466     10.  When the division finds that any person has derived an
1467improper personal benefit from a condominium association, the
1468division shall order the person to pay restitution to the
1469association and shall order the person to pay to the division
1470the costs of investigation and prosecution.
1471     (e)  The division may prepare and disseminate a prospectus
1472and other information to assist prospective owners, purchasers,
1473lessees, and developers of residential condominiums in assessing
1474the rights, privileges, and duties pertaining thereto.
1475     (f)  The division has authority to adopt rules pursuant to
1476ss. 120.536(1) and 120.54 to implement and enforce the
1477provisions of this chapter.
1478     (g)  The division shall establish procedures for providing
1479notice to an association and the developer during the period
1480where the developer controls the association when the division
1481is considering the issuance of a declaratory statement with
1482respect to the declaration of condominium or any related
1483document governing in such condominium community.
1484     (h)  The division shall furnish each association which pays
1485the fees required by paragraph (2)(a) a copy of this act,
1486subsequent changes to this act on an annual basis, an amended
1487version of this act as it becomes available from the Secretary
1488of State's office on a biennial basis, and the rules adopted
1489thereto on an annual basis.
1490     (i)  The division shall annually provide each association
1491with a summary of declaratory statements and formal legal
1492opinions relating to the operations of condominiums which were
1493rendered by the division during the previous year.
1494     (j)  The division shall provide training and educational
1495programs for condominium association board members and unit
1496owners. The training may, in the division's discretion, include
1497web-based electronic media, and live training and seminars in
1498various locations throughout the state. The division shall have
1499the authority to review and approve education and training
1500programs for board members and unit owners offered by providers
1501and shall maintain a current list of approved programs and
1502providers and shall make such list available to board members
1503and unit owners in a reasonable and cost-effective manner.
1504     (k)  The division shall maintain a toll-free telephone
1505number accessible to condominium unit owners.
1506     (l)  The division shall develop a program to certify both
1507volunteer and paid mediators to provide mediation of condominium
1508disputes. The division shall provide, upon request, a list of
1509such mediators to any association, unit owner, or other
1510participant in arbitration proceedings under s. 718.1255
1511requesting a copy of the list. The division shall include on the
1512list of volunteer mediators only the names of persons who have
1513received at least 20 hours of training in mediation techniques
1514or who have mediated at least 20 disputes. In order to become
1515initially certified by the division, paid mediators must be
1516certified by the Supreme Court to mediate court cases in county
1517or circuit courts. However, the division may adopt, by rule,
1518additional factors for the certification of paid mediators,
1519which factors must be related to experience, education, or
1520background. Any person initially certified as a paid mediator by
1521the division must, in order to continue to be certified, comply
1522with the factors or requirements imposed by rules adopted by the
1523division.
1524     (m)  When a complaint is made, the division shall conduct
1525its inquiry with due regard to the interests of the affected
1526parties. Within 30 days after receipt of a complaint, the
1527division shall acknowledge the complaint in writing and notify
1528the complainant whether the complaint is within the jurisdiction
1529of the division and whether additional information is needed by
1530the division from the complainant. The division shall conduct
1531its investigation and shall, within 90 days after receipt of the
1532original complaint or of timely requested additional
1533information, take action upon the complaint. However, the
1534failure to complete the investigation within 90 days does not
1535prevent the division from continuing the investigation,
1536accepting or considering evidence obtained or received after 90
1537days, or taking administrative action if reasonable cause exists
1538to believe that a violation of this chapter or a rule of the
1539division has occurred. If an investigation is not completed
1540within the time limits established in this paragraph, the
1541division shall, on a monthly basis, notify the complainant in
1542writing of the status of the investigation. When reporting its
1543action to the complainant, the division shall inform the
1544complainant of any right to a hearing pursuant to ss. 120.569
1545and 120.57.
1546     (n)  Condominium association directors, officers, and
1547employees; condominium developers; community association
1548managers; and community association management firms have an
1549ongoing duty to reasonably cooperate with the division in any
1550investigation pursuant to this section. The division shall refer
1551to local law enforcement authorities any person whom the
1552division believes has altered, destroyed, concealed, or removed
1553any record, document, or thing required to be kept or maintained
1554by this chapter with the purpose to impair its verity or
1555availability in the department's investigation.
1556     (o)  The division may:
1557     1.  Contract with agencies in this state or other
1558jurisdictions to perform investigative functions; or
1559     2.  Accept grants-in-aid from any source.
1560     (p)  The division shall cooperate with similar agencies in
1561other jurisdictions to establish uniform filing procedures and
1562forms, public offering statements, advertising standards, and
1563rules and common administrative practices.
1564     (q)  The division shall consider notice to a developer to
1565be complete when it is delivered to the developer's address
1566currently on file with the division.
1567     (r)  In addition to its enforcement authority, the division
1568may issue a notice to show cause, which shall provide for a
1569hearing, upon written request, in accordance with chapter 120.
1570     (s)  The division shall submit to the Governor, the
1571President of the Senate, the Speaker of the House of
1572Representatives, and the chairs of the legislative
1573appropriations committees an annual report that includes, but
1574need not be limited to, the number of training programs provided
1575for condominium association board members and unit owners, the
1576number of complaints received by type, the number and percent of
1577complaints acknowledged in writing within 30 days and the number
1578and percent of investigations acted upon within 90 days in
1579accordance with paragraph (m), and the number of investigations
1580exceeding the 90-day requirement. The annual report shall also
1581include an evaluation of the division's core business processes
1582and make recommendations for improvements, including statutory
1583changes. The report shall be submitted by September 30 following
1584the end of the fiscal year.
1585     (3)  The division shall create a booklet of the laws that a
1586director must read as required by s. 718.112(2)(p)4. The booklet
1587shall be available for free download from the division's
1588website. The division may provide a printed version to directors
1589for free or for a cost not to exceed the division's actual cost
1590of production and mailing.
1591     Section 12.  Subsection (9) of section 718.5012, Florida
1592Statutes, is amended to read:
1593     718.5012  Ombudsman; powers and duties.--The ombudsman
1594shall have the powers that are necessary to carry out the duties
1595of his or her office, including the following specific powers:
1596     (9)  To assist with the resolution of disputes between unit
1597owners and the association or between unit owners when the
1598dispute is not within the jurisdiction of the division to
1599resolve or the division has declined to resolve a dispute.
1600     Section 13.  Subsection (1) of section 718.50151, Florida
1601Statutes, is amended to read:
1602     718.50151  Community Association Living Study Council;
1603membership functions.--
1604     (1)  There is created the Community Association Living
1605Study Council. The council shall consist of seven appointed
1606members. Two members shall be appointed by the President of the
1607Senate, two members shall be appointed by the Speaker of the
1608House of Representatives, and three members shall be appointed
1609by the Governor. One member that is appointed by the Governor
1610may represent timeshare condominiums. The council shall be
1611created as of October 1 every 5 years, commencing July October
16121, 2009 2008, and shall exist for a 6-month term. The director
1613of the division shall appoint an ex officio nonvoting member.
1614The Legislature intends that the persons appointed represent a
1615cross-section of persons experienced interested in community
1616association issues. No member of the council may be a registered
1617lobbyist, partner or shareholder in a firm providing lobbying
1618services, or principal or employee of a lobbying firm who is
1619provided compensation by community associations. The council
1620shall be located within the division for administrative
1621purposes. Members of the council shall serve without
1622compensation but are entitled to receive per diem and travel
1623expenses pursuant to s. 112.061 while on official business. The
1624initial members of the council shall be those persons formerly
1625appointed to the Community Association Living Study Council who
1626are otherwise qualified to serve on the Community Association
1627Study Council.
1628     Section 14.  Subsections (11) and (26) of section 719.103,
1629Florida Statutes, are amended to read:
1630     719.103  Definitions.--As used in this chapter:
1631     (11)  "Conspicuous type" means bold type in capital letters
1632no smaller than the largest type, exclusive of headings, on the
1633page on which it appears and, in all cases, at least 10-point
1634type. When conspicuous type is required, it must be separated on
1635all sides from other type and print. Conspicuous type may be
1636used in a contract for purchase and sale of a unit, a lease of a
1637unit for more than 5 years, or a prospectus or offering circular
1638only when required by law.
1639     (26)  "Unit owner," or "owner of a unit," or "shareholder"
1640means the person holding a share in the cooperative association
1641and a lease or other muniment of title or possession of a unit
1642that is granted by the association as the owner of the
1643cooperative property.
1644     Section 15.  Section 719.104, Florida Statutes, is amended
1645to read:
1646     719.104  The association Cooperatives; access to units;
1647records; financial reports; assessments; purchase of leases.--
1648     (1)  RIGHT OF ACCESS TO UNITS.--The association has the
1649irrevocable right of access to each unit from time to time
1650during reasonable hours when necessary for the maintenance,
1651repair, or replacement of any structural components of the
1652building or of any mechanical, electrical, or plumbing elements
1653necessary to prevent damage to the building or to another unit.
1654     (2)  OFFICIAL RECORDS.--
1655     (a)  From the inception of the association, the association
1656shall maintain a copy of each of the following, where
1657applicable, which shall constitute the official records of the
1658association:
1659     1.  The plans, permits, warranties, and other items
1660provided by the developer pursuant to s. 719.301(4).
1661     2.  A photocopy of the cooperative documents.
1662     3.  A copy of the current rules of the association.
1663     4.  A book or books containing the minutes of all meetings
1664of the association, of the board of directors, and of the
1665shareholders unit owners, which minutes shall be retained for a
1666period of not less than 7 years.
1667     5.  A current roster of all shareholders unit owners and
1668their mailing addresses, unit identifications, voting
1669certifications, and, if known, telephone numbers. The
1670association shall also maintain the electronic mailing addresses
1671and the numbers designated by shareholders unit owners for
1672receiving notice sent by electronic transmission of those
1673shareholders unit owners consenting to receive notice by
1674electronic transmission. The electronic mailing addresses and
1675numbers provided by shareholders unit owners to receive notice
1676by electronic transmission shall be removed from association
1677records when consent to receive notice by electronic
1678transmission is revoked. However, the association is not liable
1679for an erroneous disclosure of the electronic mail address or
1680the number for receiving electronic transmission of notices.
1681     6.  All current insurance policies of the association.
1682     7.  A current copy of any management agreement, lease, or
1683other contract to which the association is a party or under
1684which the association or the shareholders unit owners have an
1685obligation or responsibility.
1686     8.  Bills of sale or transfer for all property owned by the
1687association.
1688     9.  Accounting records for the association and separate
1689accounting records for each unit it operates, according to good
1690accounting practices. Any person who knowingly or intentionally
1691defaces or destroys accounting records required to be maintained
1692by this chapter, or who knowingly or intentionally fails to
1693create or maintain accounting records required to be maintained
1694by this chapter, is personally subject to a civil penalty
1695pursuant to s. 719.501(1)(d). All accounting records shall be
1696maintained for a period of not less than 7 years. The accounting
1697records shall include, but not be limited to:
1698     a.  Accurate, itemized, and detailed records of all
1699receipts and expenditures.
1700     b.  A current account and a monthly, bimonthly, or
1701quarterly statement of the account for each unit designating the
1702name of the shareholder unit owner, the due date and amount of
1703each assessment, the amount paid upon the account, and the
1704balance due.
1705     c.  All audits, reviews, accounting statements, and
1706financial reports of the association.
1707     d.  All contracts for work to be performed. Bids for work
1708to be performed shall also be considered official records and
1709shall be maintained for a period of 1 year.
1710     10.  Ballots, sign-in sheets, voting proxies, and all other
1711papers relating to voting by shareholders unit owners, which
1712shall be maintained for a period of 1 year after the date of the
1713election, vote, or meeting to which the document relates.
1714     11.  All rental records where the association is acting as
1715agent for the rental of units.
1716     12.  A copy of the current question and answer sheet as
1717described in s. 719.504.
1718     13.  All other records of the association not specifically
1719included in the foregoing which are related to the operation of
1720the association.
1721     (b)  The official records of the association shall be
1722maintained within the state for at least 7 years. The records of
1723the association shall be made available to a shareholder unit
1724owner within 5 working days after receipt of written request by
1725the board or its designee. This paragraph may be complied with
1726by having a copy of the official records available for
1727inspection or copying on the cooperative property.
1728     (c)  The official records of the association shall be open
1729to inspection by any association member or the authorized
1730representative of such member at all reasonable times. Failure
1731to permit inspection of the association records as provided
1732herein entitles any person prevailing in an enforcement action
1733to recover reasonable attorney's fees from the person in control
1734of the records who, directly or indirectly, knowingly denies
1735access to the records for inspection. The right to inspect the
1736records includes the right to make or obtain copies, at the
1737reasonable expense, if any, of the association member. The
1738association may adopt reasonable rules regarding the frequency,
1739time, location, notice, and manner of record inspections and
1740copying. The failure of an association to provide the records
1741within 10 working days after receipt of a written request
1742creates a rebuttable presumption that the association willfully
1743failed to comply with this paragraph. A shareholder unit owner
1744who is denied access to official records is entitled to the
1745actual damages or minimum damages for the association's willful
1746failure to comply with this paragraph. The minimum damages shall
1747be $50 per calendar day up to 10 days, the calculation to begin
1748on the 11th day after receipt of the written request. Any person
1749who knowingly or intentionally defaces or destroys records that
1750are required by this chapter, or knowingly or intentionally
1751fails to create or maintain records that are required by this
1752chapter, is personally subject to a civil penalty pursuant to s.
1753718.501(1)(d). The association shall maintain an adequate number
1754of copies of the declaration, articles of incorporation, bylaws,
1755and rules, and all amendments to each of the foregoing, as well
1756as the question and answer sheet provided for in s. 719.504, on
1757the cooperative property to ensure their availability to
1758shareholders unit owners and prospective purchasers, and may
1759charge its actual costs for preparing and furnishing these
1760documents to those requesting the same. Notwithstanding the
1761provisions of this paragraph, the following records shall not be
1762accessible to shareholders unit owners:
1763     1.  A record that was prepared by an association attorney
1764or prepared at the attorney's express direction; that reflects a
1765mental impression, conclusion, litigation strategy, or legal
1766theory of the attorney or the association; or that was prepared
1767exclusively for civil or criminal litigation or for adversarial
1768administrative proceedings or in anticipation of imminent civil
1769or criminal litigation or imminent adversarial administrative
1770proceedings, until the conclusion of the litigation or
1771adversarial administrative proceedings.
1772     2.  Information obtained by an association in connection
1773with the approval of the lease, sale, or other transfer of a
1774unit.
1775     3.  Medical records of shareholders unit owners.
1776     4.  Social security numbers, driver's license numbers,
1777credit card numbers, and other personal identifying information
1778of any person.
1779     (d)  The association or its authorized agent shall not be
1780required to provide a prospective purchaser or lienholder with
1781information about the cooperative or association other than the
1782information or documents required by this chapter to be made
1783available or disclosed. The association or its authorized agent
1784shall be entitled to charge a reasonable fee to the prospective
1785purchaser, lienholder, or the current shareholder unit owner for
1786its time in providing good faith responses to requests for
1787information by or on behalf of a prospective purchaser or
1788lienholder, other than that required by law, provided that such
1789fee shall not exceed $150 plus the reasonable cost of
1790photocopying and any attorney's fees incurred by the association
1791in connection with the association's response. An association
1792and its authorized agent are not liable for providing such
1793information in good faith pursuant to a written request if the
1794person providing the information includes a written statement in
1795substantially the following form: "The responses herein are made
1796in good faith and to the best of my ability as to their
1797accuracy."
1798     (3)  INSURANCE.--In order to protect the safety, health,
1799and welfare of the people of the state and to ensure consistency
1800in the provision of insurance coverage to cooperatives and their
1801shareholders, this subsection applies to every residential
1802cooperative in the state, regardless of the date of its
1803cooperative documents. It is the intent of the Legislature to
1804encourage lower or stable insurance premiums for associations
1805described in this subsection.
1806     (a)  Adequate property insurance, regardless of any
1807requirement in the cooperative documents for coverage by the
1808association for full insurable value, replacement cost, or
1809similar coverage, shall be based upon the replacement cost of
1810the property to be insured as determined by an independent
1811insurance appraisal or update of a prior appraisal. The full
1812insurable value shall be determined at least once every 36
1813months.
1814     1.  An association or group of associations may provide
1815adequate property insurance through a self-insurance fund that
1816complies with the requirements of ss. 624.460-624.488.
1817     2.  The association may also provide adequate property
1818insurance coverage for a group of no fewer than three
1819communities created and operating under this chapter, chapter
1820718, chapter 720, or chapter 721 by obtaining and maintaining
1821for such communities insurance coverage sufficient to cover an
1822amount equal to the probable maximum loss for the communities
1823for a 250-year windstorm event. Such probable maximum loss must
1824be determined through the use of a competent model that has been
1825accepted by the Florida Commission on Hurricane Loss Projection
1826Methodology. No policy or program providing such coverage shall
1827be issued or renewed after July 1, 2009, unless it has been
1828reviewed and approved by the Office of Insurance Regulation. The
1829review and approval shall include approval of the policy and
1830related forms pursuant to ss. 627.410 and 627.411, approval of
1831the rates pursuant to s. 627.062, a determination that the loss
1832model approved by the commission was accurately and
1833appropriately applied to the insured structures to determine the
1834250-year probable maximum loss, and a determination that
1835complete and accurate disclosure of all material provisions is
1836provided to cooperative shareholders prior to execution of the
1837agreement by a cooperative association.
1838     3.  When determining the adequate amount of property
1839insurance coverage, the association may consider deductibles as
1840determined by this subsection.
1841     (b)  If an association is a developer-controlled
1842association, the association shall exercise its best efforts to
1843obtain and maintain insurance as described in paragraph (a).
1844Failure to obtain and maintain adequate property insurance
1845during any period of developer control constitutes a breach of
1846fiduciary responsibility by the developer-appointed members of
1847the board of directors of the association, unless the members
1848can show that despite such failure they have made their best
1849efforts to maintain the required coverage.
1850     (c)  Policies may include deductibles as determined by the
1851board.
1852     1.  The deductibles shall be consistent with industry
1853standards and prevailing practice for communities of similar
1854size and age, and having similar construction and facilities in
1855the locale where the cooperative property is situated.
1856     2.  The deductibles may be based upon available funds,
1857including reserve accounts, or predetermined assessment
1858authority at the time the insurance is obtained.
1859     3.  The board shall establish the amount of deductibles
1860based upon the level of available funds and predetermined
1861assessment authority at a meeting of the board. Such meeting
1862shall be open to all shareholders in the manner set forth in s.
1863719.106(1)(e). The notice of such meeting must state the
1864proposed deductible and the available funds and the assessment
1865authority relied upon by the board and estimate any potential
1866assessment amount against each unit, if any. The meeting
1867described in this subparagraph may be held in conjunction with a
1868meeting to consider the proposed budget or an amendment thereto.
1869     (d)  An association controlled by shareholders operating as
1870a residential cooperative shall use its best efforts to obtain
1871and maintain adequate insurance to protect the association, the
1872association property, the common elements, and the cooperative
1873property that is required to be insured by the association
1874pursuant to this subsection.
1875     (e)  An association may also obtain and maintain liability
1876insurance for directors and officers, insurance for the benefit
1877of association employees, and flood insurance for common
1878elements, association property, and units.
1879     (f)  Every property insurance policy issued or renewed on
1880or after July 1, 2009, for the purpose of protecting the
1881cooperative shall provide primary coverage for:
1882     1.  All portions of the condominium property as originally
1883installed or replacement of like kind and quality, in accordance
1884with the original plans and specifications.
1885     2.  All alterations or additions made to the cooperative
1886property or association property pursuant to s. 719.113(2).
1887
1888The coverage shall exclude all personal property within the
1889unit, and floor, wall, and ceiling coverings, electrical
1890fixtures, appliances, water heaters, water filters, built-in
1891cabinets and countertops, air-conditioning and heating equipment
1892that serves a single unit, and window treatments, including
1893curtains, drapes, blinds, hardware, and similar window treatment
1894components, or replacements of any of the foregoing. Such
1895property and insurance therefore shall be the responsibility of
1896the shareholder.
1897     (g)  A cooperative shareholders policy issued after July 1,
18982009, shall conform to the requirements of s. 627.714.
1899     1.  All reconstruction work after a casualty loss shall be
1900undertaken by the association except as otherwise authorized in
1901this section. A shareholder may undertake reconstruction work on
1902portions of the unit with the prior written consent of the board
1903of directors. However, such work may be conditioned upon the
1904approval of the repair methods, the qualifications of the
1905proposed contractor, or the contract that is used for that
1906purpose. A shareholder shall obtain all required governmental
1907permits and approvals prior to commencing reconstruction.
1908     2.  Shareholders are responsible for the cost of
1909reconstruction of any portions of the cooperative property for
1910which the association does not carry property insurance, and any
1911such reconstruction work undertaken by the association shall be
1912chargeable to the shareholder and enforceable as an assessment
1913pursuant to s. 719.108.
1914     (h)  The association shall maintain insurance or fidelity
1915bonding of all persons who control or disburse funds of the
1916association. The insurance policy or fidelity bond must cover
1917the maximum funds that will be in the custody of the association
1918or its management agent at any one time. As used in this
1919paragraph, the term "persons who control or disburse funds of
1920the association" includes, but is not limited to, those
1921individuals authorized to sign checks on behalf of the
1922association, and the president, secretary, and treasurer of the
1923association. The association shall bear the cost of any such
1924bonding.
1925     (i)  The association may amend the cooperative documents
1926without regard to any requirement for approval by mortgagees of
1927amendments affecting insurance requirements for the purpose of
1928conforming the cooperative documents to the coverage
1929requirements of this subsection.
1930     (j)  Any portion of the cooperative property required to be
1931insured by the association against casualty loss pursuant to
1932paragraph (f) which is damaged by casualty shall be
1933reconstructed, repaired, or replaced as necessary by the
1934association as a common expense. All property insurance
1935deductibles, uninsured losses, and other damages in excess of
1936property insurance coverage under the property insurance
1937policies maintained by the association are a common expense of
1938the cooperative, except that:
1939     1.  A shareholder is responsible for the costs of repair or
1940replacement of any portion of the cooperative property not paid
1941by insurance proceeds, if such damage is caused by intentional
1942conduct, negligence, or failure to comply with the terms of the
1943declaration or the rules of the association by a shareholder,
1944the members of his or her family, unit occupants, tenants,
1945guests, or invitees.
1946     2.  The provisions of subparagraph 1. regarding the
1947financial responsibility of a shareholder for the costs of
1948repairing or replacing other portions of the cooperative
1949property also apply to the costs of repair or replacement of
1950personal property of other shareholders or the association, as
1951well as other property, whether real or personal, which the
1952shareholders are required to insure under paragraph (g).
1953     3.  To the extent the cost of repair or reconstruction for
1954which the shareholder is responsible under this paragraph is
1955reimbursed to the association by insurance proceeds, and, to the
1956extent the association has collected the cost of such repair or
1957reconstruction from the shareholder, the association shall
1958reimburse the shareholder.
1959     4.  The association is not obligated to pay for repair or
1960reconstruction or repairs of casualty losses as a common expense
1961if the casualty losses were known or should have been known to a
1962shareholder and were not reported to the association until after
1963the insurance claim of the association for that casualty was
1964settled or resolved with finality, or denied on the basis that
1965it was untimely filed.
1966     (k)  An association may, upon the approval of a majority of
1967the total voting interests in the association, opt out of the
1968provisions of paragraph (j) for the allocation of repair or
1969reconstruction expenses and allocate repair or reconstruction
1970expenses in the manner provided in the cooperative documents
1971originally recorded or as amended. Such vote may be approved by
1972the voting interests of the association without regard to any
1973mortgagee consent requirements.
1974     (l)  Any association or condominium voting to opt out of
1975the guidelines for repair or reconstruction expenses as
1976described in paragraph (j) must record a notice setting forth
1977the date of the opt-out vote and the page of the official
1978records book on which the cooperative documents are recorded.
1979The decision to opt out is effective upon the date of recording
1980of the notice in the public records by the association. An
1981association that has voted to opt out of paragraph (j) may
1982reverse that decision by the same vote required in paragraph
1983(k), and notice thereof shall be recorded in the official
1984records.
1985     (m)  The association is not obligated to pay for any
1986reconstruction or repair expenses due to casualty loss to any
1987improvements installed by a current or former owner of the unit
1988or by the developer if the improvement benefits only the unit
1989for which it was installed and is not part of the standard
1990improvements installed by the developer on all units as part of
1991original construction, whether or not such improvement is
1992located within the unit. This paragraph does not relieve any
1993party of its obligations regarding recovery due under any
1994insurance implemented specifically for any such improvements.
1995The association shall use its best efforts to obtain and
1996maintain adequate insurance to protect the association property.
1997The association may also obtain and maintain liability insurance
1998for directors and officers, insurance for the benefit of
1999association employees, and flood insurance. A copy of each
2000policy of insurance in effect shall be made available for
2001inspection by unit owners at reasonable times.
2002     (a)  Windstorm insurance coverage for a group of no fewer
2003than three communities created and operating under chapter 718,
2004this chapter, chapter 720, or chapter 721 may be obtained and
2005maintained for the communities if the insurance coverage is
2006sufficient to cover an amount equal to the probable maximum loss
2007for the communities for a 250-year windstorm event. Such
2008probable maximum loss must be determined through the use of a
2009competent model that has been accepted by the Florida Commission
2010on Hurricane Loss Projection Methodology. Such insurance
2011coverage is deemed adequate windstorm insurance for the purposes
2012of this section.
2013     (b)  An association or group of associations may self-
2014insure against claims against the association, the association
2015property, and the cooperative property required to be insured by
2016an association, upon compliance with the applicable provisions
2017of ss. 624.460-624.488, which shall be considered adequate
2018insurance for purposes of this section.
2019     (4)  FINANCIAL REPORTING REPORT.--Within 90 days after the
2020end of the fiscal year, or annually on a date provided in the
2021bylaws, the association shall prepare and complete, or contract
2022for the preparation and completion of, a financial report for
2023the preceding fiscal year. Within 21 days after the final
2024financial report is completed by the association or received
2025from the third party, but not later than 120 days after the end
2026of the fiscal year or other date as provided in the bylaws, the
2027association shall mail to each shareholder at the address last
2028furnished to the association by the shareholder, or hand deliver
2029to each shareholder, a copy of the financial report or a notice
2030that a copy of the financial report will be mailed or hand
2031delivered to the shareholder, without charge, upon receipt of a
2032written request from the shareholder. The division shall adopt
2033rules setting forth uniform accounting principles and standards
2034to be used by all associations. The rules shall include, but not
2035be limited to, uniform accounting principles and standards for
2036stating the disclosure of at least a summary of the reserves,
2037including information as to whether such reserves are being
2038funded at a level sufficient to prevent the need for a special
2039assessment and, if not, the amount of assessments necessary to
2040bring the reserves up to the level necessary to avoid a special
2041assessment. The person preparing the financial reports shall be
2042entitled to rely on an inspection report prepared for or
2043provided to the association to meet the fiscal and fiduciary
2044standards of this chapter. In adopting such rules, the division
2045shall consider the number of members and annual revenues of an
2046association. Financial reports shall be prepared as follows:
2047     (a)  An association that meets the criteria of this
2048paragraph shall prepare or cause to be prepared a complete set
2049of financial statements in accordance with generally accepted
2050accounting principles. The financial statements shall be based
2051upon the association's total annual revenues, as follows:
2052     1.  An association with total annual revenues of $100,000
2053or more, but less than $200,000, shall prepare compiled
2054financial statements.
2055     2.  An association with total annual revenues of at least
2056$200,000, but less than $400,000, shall prepare reviewed
2057financial statements.
2058     3.  An association with total annual revenues of $400,000
2059or more shall prepare audited financial statements.
2060     (b)1.  An association with total annual revenues of less
2061than $100,000 shall prepare a report of cash receipts and
2062expenditures.
2063     2.  An association which operates less than 50 units,
2064regardless of the association's annual revenues, shall prepare a
2065report of cash receipts and expenditures in lieu of financial
2066statements required by paragraph (a).
2067     3.  A report of cash receipts and disbursements must
2068disclose the amount of receipts by accounts and receipt
2069classifications and the amount of expenses by accounts and
2070expense classifications, including, but not limited to, the
2071following, as applicable: costs for security, professional and
2072management fees and expenses, taxes, costs for recreation
2073facilities, expenses for refuse collection and utility services,
2074expenses for lawn care, costs for building maintenance and
2075repair, insurance costs, administration and salary expenses, and
2076reserves accumulated and expended for capital expenditures,
2077deferred maintenance, and any other category for which the
2078association maintains reserves.
2079     (c)  An association may prepare or cause to be prepared,
2080without a meeting of or approval by the shareholders:
2081     1.  Compiled, reviewed, or audited financial statements, if
2082the association is required to prepare a report of cash receipts
2083and expenditures;
2084     2.  Reviewed or audited financial statements, if the
2085association is required to prepare compiled financial
2086statements; or
2087     3.  Audited financial statements, if the association is
2088required to prepare reviewed financial statements.
2089     (d)  If approved by a majority of the voting interests
2090present at a properly called meeting of the association, an
2091association may prepare or cause to be prepared:
2092     1.  A report of cash receipts and expenditures in lieu of a
2093compiled, reviewed, or audited financial statement;
2094     2.  A report of cash receipts and expenditures or a
2095compiled financial statement in lieu of a reviewed or audited
2096financial statement; or
2097     3.  A report of cash receipts and expenditures, a compiled
2098financial statement, or a reviewed financial statement in lieu
2099of an audited financial statement.
2100
2101Such meeting and approval must occur prior to the end of the
2102fiscal year and is effective only for the fiscal year in which
2103the vote is taken, except that the approval also may be
2104effective for the following fiscal year. With respect to an
2105association to which the developer has not turned over control
2106of the association, all shareholders, including the developer,
2107may vote on issues related to the preparation of financial
2108reports for the first 2 fiscal years of the association's
2109operation, beginning with the fiscal year in which the
2110declaration is recorded. Thereafter, all shareholders except the
2111developer may vote on such issues until control is turned over
2112to the association by the developer. Any audit or review
2113prepared under this section shall be paid for by the developer
2114if done prior to turnover of control of the association. An
2115association may not waive the financial reporting requirements
2116of this subsection for more than 3 consecutive years.
2117     (a)  Within 60 days following the end of the fiscal or
2118calendar year or annually on such date as is otherwise provided
2119in the bylaws of the association, the board of administration of
2120the association shall mail or furnish by personal delivery to
2121each unit owner a complete financial report of actual receipts
2122and expenditures for the previous 12 months, or a complete set
2123of financial statements for the preceding fiscal year prepared
2124in accordance with generally accepted accounting procedures. The
2125report shall show the amounts of receipts by accounts and
2126receipt classifications and shall show the amounts of expenses
2127by accounts and expense classifications including, if
2128applicable, but not limited to, the following:
2129     1.  Costs for security;
2130     2.  Professional and management fees and expenses;
2131     3.  Taxes;
2132     4.  Costs for recreation facilities;
2133     5.  Expenses for refuse collection and utility services;
2134     6.  Expenses for lawn care;
2135     7.  Costs for building maintenance and repair;
2136     8.  Insurance costs;
2137     9.  Administrative and salary expenses; and
2138     10.  Reserves for capital expenditures, deferred
2139maintenance, and any other category for which the association
2140maintains a reserve account or accounts.
2141     (b)  The division shall adopt rules that may require that
2142the association deliver to the unit owners, in lieu of the
2143financial report required by this section, a complete set of
2144financial statements for the preceding fiscal year. The
2145financial statements shall be delivered within 90 days following
2146the end of the previous fiscal year or annually on such other
2147date as provided in the bylaws. The rules of the division may
2148require that the financial statements be compiled, reviewed, or
2149audited, and the rules shall take into consideration the
2150criteria set forth in s. 719.501(1)(j). The requirement to have
2151the financial statements compiled, reviewed, or audited does not
2152apply to associations if a majority of the voting interests of
2153the association present at a duly called meeting of the
2154association have determined for a fiscal year to waive this
2155requirement. In an association in which turnover of control by
2156the developer has not occurred, the developer may vote to waive
2157the audit requirement for the first 2 years of the operation of
2158the association, after which time waiver of an applicable audit
2159requirement shall be by a majority of voting interests other
2160than the developer. The meeting shall be held prior to the end
2161of the fiscal year, and the waiver shall be effective for only
2162one fiscal year. This subsection does not apply to a cooperative
2163that consists of 50 or fewer units.
2164     (5)  ASSESSMENTS.--The association has the power to make
2165and collect assessments and to lease, maintain, repair, and
2166replace the common areas. However, the association may not
2167charge a use fee against a shareholder the unit owner for the
2168use of common areas unless otherwise provided for in the
2169cooperative documents or by a majority vote of the association
2170or unless the charges relate to expenses incurred by a
2171shareholder an owner having exclusive use of common areas.
2172     (6)  PURCHASE OF LEASES.--The association has the power to
2173purchase any land or recreation lease upon the approval of such
2174voting interest as is required by the cooperative documents. If
2175the cooperative documents make no provision for acquisition of
2176the land or recreational lease, the vote required is that
2177required to amend the cooperative documents to permit the
2178acquisition.
2179     (7)  COMMINGLING.--All funds shall be maintained separately
2180in the association's name. Reserve and operating funds of the
2181association shall not be commingled unless combined for
2182investment purposes. This subsection is not meant to prohibit
2183prudent investment of association funds even if combined with
2184operating or other reserve funds of the same association, but
2185such funds must be accounted for separately, and the combined
2186account balance may not, at any time, be less than the amount
2187identified as reserve funds in the combined account. No manager
2188or business entity required to be licensed or registered under
2189s. 468.432, or an agent, employee, officer, or director of a
2190cooperative association may commingle any association funds with
2191his or her own funds or with the funds of any other cooperative
2192association or community association as defined in s. 468.431.
2193     (8)  CORPORATE ENTITY.--
2194     (a)  The operation of the cooperative shall be by the
2195association, which must be a Florida corporation not for profit.
2196The shareholders shall be members of the association. The
2197officers and directors of the association have a fiduciary
2198relationship to the shareholders unit owners. It is the intent
2199of the Legislature that nothing in this paragraph shall be
2200construed as providing for or removing a requirement of a
2201fiduciary relationship between any manager employed by the
2202association and the shareholders. An officer, director, or
2203manager may not solicit, offer to accept, or accept any thing or
2204service of value for which consideration has not been provided
2205for his or her own benefit or that of his or her immediate
2206family, from any person providing or proposing to provide goods
2207or services to the association. Any such officer, director, or
2208manager who knowingly solicits, offers to accept, or accepts any
2209thing or service of value is subject to a civil penalty pursuant
2210to s. 719.501(1)(d). However, this paragraph does not prohibit
2211an officer, director, or manager from accepting services or
2212items received in connection with trade fairs or education
2213programs.
2214     (b)  A director of the association who is present at a
2215meeting of its board at which action on any corporate matter is
2216taken is presumed to have assented to the action taken unless
2217the director votes against such action or abstains from voting
2218in respect thereto because of an asserted conflict of interest.
2219A director of the association who abstains from voting on any
2220action taken on any corporate matter shall be presumed to have
2221taken no position with regard to the action. Directors may not
2222vote by proxy or by secret ballot at board meetings, except that
2223officers may be elected by secret ballot. A vote or abstention
2224for each member present shall be recorded in the minutes.
2225     (c)  A shareholder unit owner does not have any authority
2226to act for the association by reason of being a shareholder unit
2227owner.
2228     (d)  As required by s. 617.0830, an officer, director, or
2229agent shall discharge his or her duties in good faith, with the
2230care an ordinarily prudent person in a like position would
2231exercise under similar circumstances, and in a manner he or she
2232reasonably believes to be in the interests of the association.
2233An officer, director, or agent shall be liable for monetary
2234damages as provided in s. 617.0834 if such officer, director, or
2235agent breached or failed to perform his or her duties and the
2236breach of, or failure to perform, his or her duties constitutes
2237a violation of criminal law as provided in s. 617.0834;
2238constitutes a transaction from which the officer or director
2239derived an improper personal benefit, either directly or
2240indirectly; or constitutes recklessness or an act or omission
2241that was in bad faith, with malicious purpose, or in a manner
2242exhibiting wanton and willful disregard of human rights, safety,
2243or property.
2244     (9)  EASEMENTS.--Unless prohibited by the cooperative
2245documents, the board of administration has the authority,
2246without the joinder of any shareholder unit owner, to grant,
2247modify, or move any easement, if the easement constitutes part
2248of or crosses the common areas or association property. This
2249subsection does not authorize the board of administration to
2250modify, move, or vacate any easement created in whole or in part
2251for the use or benefit of anyone other than the shareholders
2252unit owners, or crossing the property of anyone other than the
2253shareholders unit owners, without the consent or approval of
2254those other persons having the use or benefit of the easement,
2255as required by law or by the instrument creating the easement.
2256     (10)  POWERS AND DUTIES.--The powers and duties of the
2257association include those set forth in this section and, except
2258as expressly limited or restricted in this chapter, those set
2259forth in the articles of incorporation and bylaws and chapters
2260607 and 617, as applicable.
2261     (11)  NOTIFICATION OF DIVISION.--When the board of
2262directors intends to dissolve or merge the cooperative
2263association, the board shall so notify the division before
2264taking any action to dissolve or merge the cooperative
2265association.
2266     (12)  POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT,
2267SUE, AND BE SUED.--The association may contract, sue, or be sued
2268with respect to the exercise or nonexercise of its powers. For
2269these purposes, the powers of the association include, but are
2270not limited to, the maintenance, management, and operation of
2271the cooperative property. After control of the association is
2272obtained by shareholders other than the developer, the
2273association may institute, maintain, settle, or appeal actions
2274or hearings in its name on behalf of all shareholders concerning
2275matters of common interest to most or all shareholders,
2276including, but not limited to, the common areas; the roof and
2277structural components of a building or other improvements;
2278mechanical, electrical, and plumbing elements serving an
2279improvement or a building; representations of the developer
2280pertaining to any existing or proposed commonly used facilities;
2281and protesting ad valorem taxes on commonly used facilities and
2282units; and the association may defend actions in eminent domain
2283or bring inverse condemnation actions. If the association has
2284the authority to maintain a class action, the association may be
2285joined in an action as representative of that class with
2286reference to litigation and disputes involving the matters for
2287which the association could bring a class action. Nothing herein
2288limits any statutory or common-law right of any individual
2289shareholder or class of shareholders to bring any action without
2290participation by the association which may otherwise be
2291available.
2292     (13)  TITLE TO PROPERTY.--
2293     (a)  The association has the power to acquire title to
2294property or otherwise hold, convey, lease, and mortgage
2295association property for the use and benefit of its
2296shareholders. The power to acquire personal property shall be
2297exercised by the board of directors. Except as otherwise
2298provided in subsections (6) and (14), no association may
2299acquire, convey, lease, or mortgage association real property
2300except in the manner provided in the cooperative documents, and
2301if the cooperative documents do not specify the procedure, then
2302approval of 75 percent of the total voting interests shall be
2303required.
2304     (b)  Subject to the provisions of s. 719.106(1)(m), the
2305association, through its board, has the limited power to convey
2306a portion of the common areas to a condemning authority for the
2307purposes of providing utility easements, right-of-way expansion,
2308or other public purposes, whether negotiated or as a result of
2309eminent domain proceedings.
2310     (14)  PURCHASE OF UNITS.--The association has the power,
2311unless prohibited by the cooperative documents, to purchase
2312units in the cooperative and to acquire and hold, lease,
2313mortgage, and convey the units. There shall be no limitation on
2314the association's right to purchase a unit at a foreclosure sale
2315resulting from the association's foreclosure of its lien for
2316unpaid assessments, or to take title by deed in lieu of
2317foreclosure.
2318     Section 16.  Section 719.106, Florida Statutes, is amended
2319to read:
2320     719.106  Bylaws; cooperative ownership.--
2321     (1)  MANDATORY PROVISIONS.--The bylaws or other cooperative
2322documents shall provide for the following, and if they do not,
2323they shall be deemed to include the following:
2324     (a)  Administration.--
2325     1.  The form of administration of the association shall be
2326described, indicating the titles of the officers and board of
2327administration and specifying the powers, duties, manner of
2328selection and removal, and compensation, if any, of officers and
2329board members. In the absence of such a provision, the board of
2330administration shall be composed of five members, except in the
2331case of cooperatives having five or fewer units, in which case
2332in not-for-profit corporations, the board shall consist of not
2333fewer than three members. In the absence of provisions to the
2334contrary, the board of administration shall have a president, a
2335secretary, and a treasurer, who shall perform the duties of
2336those offices customarily performed by officers of corporations.
2337Unless prohibited in the bylaws, the board of administration may
2338appoint other officers and grant them those duties it deems
2339appropriate. Unless otherwise provided in the bylaws, the
2340officers shall serve without compensation and at the pleasure of
2341the board. Unless otherwise provided in the bylaws, the members
2342of the board shall serve without compensation.
2343     2.  When a shareholder unit owner files a written inquiry
2344by certified mail with the board of administration, the board
2345shall respond in writing to the shareholder unit owner within 30
2346days of receipt of the inquiry. The board's response shall
2347either give a substantive response to the inquirer, notify the
2348inquirer that a legal opinion has been requested, or notify the
2349inquirer that advice has been requested from the division. If
2350the board requests advice from the division, the board shall,
2351within 10 days of its receipt of the advice, provide in writing
2352a substantive response to the inquirer. If a legal opinion is
2353requested, the board shall, within 60 days after the receipt of
2354the inquiry, provide in writing a substantive response to the
2355inquirer. The failure to provide a substantive response to the
2356inquirer as provided herein precludes the board from recovering
2357attorney's fees and costs in any subsequent litigation,
2358administrative proceeding, or arbitration arising out of the
2359inquiry. The association may, through its board of
2360administration, adopt reasonable rules and regulations regarding
2361the frequency and manner of responding to the shareholders' unit
2362owners' inquiries, one of which may be that the association is
2363obligated to respond to only one written inquiry per unit in any
2364given 30-day period. In such case, any additional inquiry or
2365inquiries must be responded to in the subsequent 30-day period,
2366or periods, as applicable.
2367     (b)  Quorum; voting requirements; proxies.--
2368     1.  Unless otherwise provided in the bylaws, the percentage
2369of voting interests required to constitute a quorum at a meeting
2370of the members shall be a majority of voting interests, and
2371decisions shall be made by owners of a majority of the voting
2372interests. Unless otherwise provided in this chapter, or in the
2373articles of incorporation, bylaws, or other cooperative
2374documents, and except as provided in subparagraph (d)1.,
2375decisions shall be made by owners of a majority of the voting
2376interests represented at a meeting at which a quorum is present.
2377     2.  Except as specifically otherwise provided herein, after
2378January 1, 1992, shareholders unit owners may not vote by
2379general proxy, but may vote by limited proxies substantially
2380conforming to a limited proxy form adopted by the division.
2381Limited proxies and general proxies may be used to establish a
2382quorum. Limited proxies shall be used for votes taken to waive
2383or reduce reserves in accordance with subparagraph (j)2., for
2384votes taken to waive the financial reporting requirements of s.
2385719.104(4)(b), for votes taken to amend the articles of
2386incorporation or bylaws pursuant to this section, and for any
2387other matter for which this chapter requires or permits a vote
2388of the shareholders unit owners. Except as provided in paragraph
2389(d), after January 1, 1992, no proxy, limited or general, shall
2390be used in the election of board members. General proxies may be
2391used for other matters for which limited proxies are not
2392required, and may also be used in voting for nonsubstantive
2393changes to items for which a limited proxy is required and
2394given. Notwithstanding the provisions of this section,
2395shareholders unit owners may vote in person at shareholder unit
2396owner meetings. Nothing contained herein shall limit the use of
2397general proxies or require the use of limited proxies or require
2398the use of limited proxies for any agenda item or election at
2399any meeting of a timeshare cooperative.
2400     3.  Any proxy given shall be effective only for the
2401specific meeting for which originally given and any lawfully
2402adjourned meetings thereof. In no event shall any proxy be valid
2403for a period longer than 90 days after the date of the first
2404meeting for which it was given. Every proxy shall be revocable
2405at any time at the pleasure of the shareholder unit owner
2406executing it.
2407     4.  A member of the board of administration or a committee
2408may submit in writing his or her agreement or disagreement with
2409any action taken at a meeting that the member did not attend.
2410This agreement or disagreement may not be used as a vote for or
2411against the action taken and may not be used for the purposes of
2412creating a quorum.
2413     5.  When some or all of the board or committee members meet
2414by telephone conference, those board or committee members
2415attending by telephone conference may be counted toward
2416obtaining a quorum and may vote by telephone. A telephone
2417speaker shall be utilized so that the conversation of those
2418board or committee members attending by telephone may be heard
2419by the board or committee members attending in person, as well
2420as by shareholders unit owners present at a meeting.
2421     (c)  Board of administration meetings.--Meetings of the
2422board of administration at which a quorum of the members is
2423present shall be open to all shareholders unit owners. Any
2424shareholder unit owner may tape record or videotape meetings of
2425the board of administration. The right to attend such meetings
2426includes the right to speak at such meetings with reference to
2427all designated agenda items. The division shall adopt reasonable
2428rules governing the tape recording and videotaping of the
2429meeting. The association may adopt reasonable written rules
2430governing the frequency, duration, and manner of shareholder
2431unit owner statements. Adequate notice of all meetings shall be
2432posted in a conspicuous place upon the cooperative property at
2433least 48 continuous hours preceding the meeting, except in an
2434emergency. If 20 percent of the voting interests petition the
2435board to address an item of business, the board shall at its
2436next regular board meeting or at a special meeting of the board,
2437but not later than 60 days after the receipt of the petition,
2438place the item on the agenda. Any item not included on the
2439notice may be taken up on an emergency basis by at least a
2440majority plus one of the members of the board. Such emergency
2441action shall be noticed and ratified at the next regular meeting
2442of the board. However, written notice of any meeting at which
2443nonemergency special assessments, or at which amendment to rules
2444regarding unit use, will be considered shall be mailed,
2445delivered, or electronically transmitted to the shareholders
2446unit owners and posted conspicuously on the cooperative property
2447not less than 14 days prior to the meeting. Evidence of
2448compliance with this 14-day notice shall be made by an affidavit
2449executed by the person providing the notice and filed among the
2450official records of the association. Upon notice to the
2451shareholders unit owners, the board shall by duly adopted rule
2452designate a specific location on the cooperative property upon
2453which all notices of board meetings shall be posted. In lieu of
2454or in addition to the physical posting of notice of any meeting
2455of the board of administration on the cooperative property, the
2456association may, by reasonable rule, adopt a procedure for
2457conspicuously posting and repeatedly broadcasting the notice and
2458the agenda on a closed-circuit cable television system serving
2459the cooperative association. However, if broadcast notice is
2460used in lieu of a notice posted physically on the cooperative
2461property, the notice and agenda must be broadcast at least four
2462times every broadcast hour of each day that a posted notice is
2463otherwise required under this section. When broadcast notice is
2464provided, the notice and agenda must be broadcast in a manner
2465and for a sufficient continuous length of time so as to allow an
2466average reader to observe the notice and read and comprehend the
2467entire content of the notice and the agenda. Notice of any
2468meeting in which regular or special assessments against
2469shareholders unit owners are to be considered for any reason
2470shall specifically state contain a statement that assessments
2471will be considered and the nature, actual cost, and description
2472of the purposes for any such assessments. Meetings of a
2473committee to take final action on behalf of the board or to make
2474recommendations to the board regarding the association budget
2475are subject to the provisions of this paragraph. Meetings of a
2476committee that does not take final action on behalf of the board
2477or make recommendations to the board regarding the association
2478budget are subject to the provisions of this section, unless
2479those meetings are exempted from this section by the bylaws of
2480the association. Notwithstanding any other law to the contrary,
2481the requirement that board meetings and committee meetings be
2482open to the shareholders unit owners is inapplicable to meetings
2483between the board or a committee and the association's attorney,
2484with respect to proposed or pending litigation, when the meeting
2485is held for the purpose of seeking or rendering legal advice.
2486     (d)  Shareholder meetings.--There shall be an annual
2487meeting of the shareholders held at the location provided in the
2488association bylaws and, if the bylaws are silent as to the
2489location, the meeting shall be held within 45 miles of the
2490cooperative property. However, such distance requirement does
2491not apply to an association governing a timeshare condominium.
2492All members of the board of administration shall be elected at
2493the first annual meeting after July 1, 2009, and annually
2494thereafter, except that if unless the bylaws provide for
2495staggered election terms of no more than 2 years and upon
2496approval of a majority of the total voting interests, the
2497association board members may serve 2-year staggered terms,
2498starting with the first annual meeting after July 1, 2009, at
2499which time the newly elected directors wherein staggered terms
2500are allowed shall, by random lot, determine which directors
2501shall serve a full 2-year term and which directors shall only
2502serve a 1-year term in order to start the staggered terms. If no
2503person is interested in or demonstrates an intention to run for
2504the position of a board member whose term has expired, such
2505board member whose term has expired shall be automatically
2506reappointed to the board of administration and need not stand
2507for reelection or for their election at another meeting. Any
2508shareholder unit owner desiring to be a candidate for board
2509membership shall comply with subparagraph 1. The bylaws shall
2510provide the method for calling meetings, including annual
2511meetings. Written notice, which notice shall incorporate an
2512identification of agenda items, shall be given to each
2513shareholder unit owner at least 14 days prior to the annual
2514meeting and shall be posted in a conspicuous place on the
2515cooperative property at least 14 continuous days preceding the
2516annual meeting. Upon notice to the shareholders unit owners, the
2517board shall by duly adopted rule designate a specific location
2518on the cooperative property upon which all notice of shareholder
2519unit owner meetings shall be posted. In lieu of or in addition
2520to the physical posting of notice of any meeting of the
2521shareholders on the cooperative property, the association may,
2522by reasonable rule, adopt a procedure for conspicuously posting
2523and repeatedly broadcasting the notice and the agenda on a
2524closed-circuit cable television system serving the cooperative
2525association. However, if broadcast notice is used in lieu of a
2526notice posted physically on the cooperative property, the notice
2527and agenda must be broadcast at least four times every broadcast
2528hour of each day that a posted notice is otherwise required
2529under this section. When broadcast notice is provided, the
2530notice and agenda must be broadcast in a manner and for a
2531sufficient continuous length of time so as to allow an average
2532reader to observe the notice and read and comprehend the entire
2533content of the notice and the agenda. Unless a shareholder unit
2534owner waives in writing the right to receive notice of the
2535annual meeting, the notice of the annual meeting shall be sent
2536by mail, hand delivered, or electronically transmitted to each
2537shareholder unit owner. An officer of the association shall
2538provide an affidavit or United States Postal Service certificate
2539of mailing, to be included in the official records of the
2540association, affirming that notices of the association meeting
2541were mailed, hand delivered, or electronically transmitted, in
2542accordance with this provision, to each shareholder unit owner
2543at the address last furnished to the association.
2544     1.  After January 1, 1992, the board of administration
2545shall be elected by written ballot or voting machine. Proxies
2546shall in no event be used in electing the board of
2547administration, either in general elections or elections to fill
2548vacancies caused by recall, resignation, or otherwise unless
2549otherwise provided in this chapter. Not less than 60 days before
2550a scheduled election, the association shall mail, deliver, or
2551transmit, whether by separate association mailing, delivery, or
2552electronic transmission or included in another association
2553mailing, delivery, or electronic transmission, including
2554regularly published newsletters, to each shareholder unit owner
2555entitled to vote, a first notice of the date of the election.
2556Any shareholder unit owner or other eligible person desiring to
2557be a candidate for the board of administration shall give
2558written notice to the association not less than 40 days before a
2559scheduled election. Together with the written notice and agenda
2560as set forth in this section, the association shall mail,
2561deliver, or electronically transmit a second notice of election
2562to all shareholders unit owners entitled to vote therein,
2563together with a ballot which shall list all candidates. Upon
2564request of a candidate, the association shall include an
2565information sheet, no larger than 81/2 inches by 11 inches,
2566which must be furnished by the candidate not less than 35 days
2567prior to the election, to be included with the mailing,
2568delivery, or electronic transmission of the ballot, with the
2569costs of mailing, delivery, or transmission and copying to be
2570borne by the association. The association has no liability for
2571the contents of the information sheets provided by the
2572candidates. In order to reduce costs, the association may print
2573or duplicate the information sheets on both sides of the paper.
2574The division shall by rule establish voting procedures
2575consistent with the provisions contained herein, including rules
2576establishing procedures for giving notice by electronic
2577transmission and rules providing for the secrecy of ballots.
2578Elections shall be decided by a plurality of those ballots cast.
2579There shall be no quorum requirement. However, at least 20
2580percent of the eligible voters must cast a ballot in order to
2581have a valid election of members of the board of administration.
2582No shareholder unit owner shall permit any other person to vote
2583his or her ballot, and any such ballots improperly cast shall be
2584deemed invalid. A shareholder unit owner who needs assistance in
2585casting the ballot for the reasons stated in s. 101.051 may
2586obtain assistance in casting the ballot. Any shareholder unit
2587owner violating this provision may be fined by the association
2588in accordance with s. 719.303. The regular election shall occur
2589on the date of the annual meeting. The provisions of this
2590subparagraph shall not apply to timeshare cooperatives.
2591Notwithstanding the provisions of this subparagraph, an election
2592and balloting are not required unless more candidates file a
2593notice of intent to run or are nominated than vacancies exist on
2594the board.
2595     2.  Any approval by shareholders unit owners called for by
2596this chapter, or the applicable cooperative documents, shall be
2597made at a duly noticed meeting of shareholders unit owners and
2598shall be subject to all requirements of this chapter or the
2599applicable cooperative documents relating to shareholder unit
2600owner decisionmaking, except that shareholders unit owners may
2601take action by written agreement, without meetings, on matters
2602for which action by written agreement without meetings is
2603expressly allowed by the applicable cooperative documents or any
2604Florida statute which provides for the shareholder unit owner
2605action.
2606     3.  Shareholders Unit owners may waive notice of specific
2607meetings if allowed by the applicable cooperative documents or
2608any Florida statute. If authorized by the bylaws, notice of
2609meetings of the board of administration, shareholder meetings,
2610except shareholder meetings called to recall board members under
2611paragraph (f), and committee meetings may be given by electronic
2612transmission to shareholders unit owners who consent to receive
2613notice by electronic transmission.
2614     4.  Shareholders Unit owners shall have the right to
2615participate in meetings of shareholders unit owners with
2616reference to all designated agenda items. However, the
2617association may adopt reasonable rules governing the frequency,
2618duration, and manner of shareholder unit owner participation.
2619     5.  Any shareholder unit owner may tape record or videotape
2620meetings of the shareholders unit owners subject to reasonable
2621rules adopted by the division.
2622
2623Notwithstanding subparagraphs (b)2. and (d)1., an association of
262410 units or less may, by the affirmative vote of a majority of
2625the total voting interests, provide for a different voting and
2626election procedure in its bylaws, which vote may be by a proxy
2627specifically delineating the different voting and election
2628procedures. The different voting and election procedures may
2629provide for elections to be conducted by limited or general
2630proxy.
2631     (e)  Budget procedures.--
2632     1.  The board of administration shall mail, hand deliver,
2633or electronically transmit to each shareholder unit owner at the
2634address last furnished to the association, a meeting notice and
2635copies of the proposed annual budget of common expenses to the
2636shareholders unit owners not less than 14 days prior to the
2637meeting at which the budget will be considered. Evidence of
2638compliance with this 14-day notice must be made by an affidavit
2639executed by an officer of the association or the manager or
2640other person providing notice of the meeting and filed among the
2641official records of the association. The meeting must be open to
2642the shareholders unit owners.
2643     2.  If an adopted budget requires assessment against the
2644shareholders unit owners in any fiscal or calendar year which
2645exceeds 115 percent of the assessments for the preceding year,
2646the board upon written application of 10 percent of the voting
2647interests to the board, shall call a special meeting of the
2648shareholders unit owners within 30 days, upon not less than 10
2649days' written notice to each shareholder unit owner. At the
2650special meeting, shareholders unit owners shall consider and
2651enact a budget. Unless the bylaws require a larger vote, the
2652adoption of the budget requires a vote of not less than a
2653majority of all the voting interests.
2654     3.  The board of administration may, in any event, propose
2655a budget to the shareholders unit owners at a meeting of members
2656or by writing, and if the budget or proposed budget is approved
2657by the shareholders unit owners at the meeting or by a majority
2658of all voting interests in writing, the budget is adopted. If a
2659meeting of the shareholders unit owners has been called and a
2660quorum is not attained or a substitute budget is not adopted by
2661the shareholders unit owners, the budget adopted by the board of
2662directors goes into effect as scheduled.
2663     4.  In determining whether assessments exceed 115 percent
2664of similar assessments for prior years, any authorized
2665provisions for reasonable reserves for repair or replacement of
2666cooperative property, anticipated expenses by the association
2667which are not anticipated to be incurred on a regular or annual
2668basis, or assessments for betterments to the cooperative
2669property must be excluded from computation. However, as long as
2670the developer is in control of the board of administration, the
2671board may not impose an assessment for any year greater than 115
2672percent of the prior fiscal or calendar year's assessment
2673without approval of a majority of all voting interests.
2674     (f)  Recall of board members.--Subject to the provisions of
2675s. 719.301, any member of the board of administration may be
2676recalled and removed from office with or without cause by the
2677vote or agreement in writing by a majority of all the voting
2678interests. A special meeting of the voting interests to recall
2679any member of the board of administration may be called by 10
2680percent of the shareholders unit owners giving notice of the
2681meeting as required for a meeting of shareholders unit owners,
2682and the notice shall state the purpose of the meeting.
2683Electronic transmission may not be used as a method of giving
2684notice of a meeting called in whole or in part for this purpose.
2685     1.  If the recall is approved by a majority of all voting
2686interests by a vote at a meeting, the recall shall be effective
2687as provided herein. The board shall duly notice and hold a board
2688meeting within 5 full business days of the adjournment of the
2689shareholder unit owner meeting to recall one or more board
2690members. At the meeting, the board shall either certify the
2691recall, in which case such member or members shall be recalled
2692effective immediately and shall turn over to the board within 5
2693full business days any and all records and property of the
2694association in their possession, or shall proceed as set forth
2695in subparagraph 3.
2696     2.  If the proposed recall is by an agreement in writing by
2697a majority of all voting interests, the agreement in writing or
2698a copy thereof shall be served on the association by certified
2699mail or by personal service in the manner authorized by chapter
270048 and the Florida Rules of Civil Procedure. The board of
2701administration shall duly notice and hold a meeting of the board
2702within 5 full business days after receipt of the agreement in
2703writing. At the meeting, the board shall either certify the
2704written agreement to recall members of the board, in which case
2705such members shall be recalled effective immediately and shall
2706turn over to the board, within 5 full business days, any and all
2707records and property of the association in their possession, or
2708proceed as described in subparagraph 3.
2709     3.  If the board determines not to certify the written
2710agreement to recall members of the board, or does not certify
2711the recall by a vote at a meeting, the board shall, within 5
2712full business days after the board meeting, file with the
2713division a petition for binding arbitration pursuant to the
2714procedures of s. 719.1255. For purposes of this paragraph, the
2715shareholders unit owners who voted at the meeting or who
2716executed the agreement in writing shall constitute one party
2717under the petition for arbitration. If the arbitrator certifies
2718the recall as to any member of the board, the recall shall be
2719effective upon mailing of the final order of arbitration to the
2720association. If the association fails to comply with the order
2721of the arbitrator, the division may take action pursuant to s.
2722719.501. Any member so recalled shall deliver to the board any
2723and all records and property of the association in the member's
2724possession within 5 full business days of the effective date of
2725the recall.
2726     4.  If the board fails to duly notice and hold a board
2727meeting within 5 full business days of service of an agreement
2728in writing or within 5 full business days of the adjournment of
2729the shareholder unit owner recall meeting, the recall shall be
2730deemed effective and the board members so recalled shall
2731immediately turn over to the board any and all records and
2732property of the association.
2733     5.  If a vacancy occurs on the board as a result of a
2734recall or removal and less than a majority of the board members
2735are removed, the vacancy may be filled by the affirmative vote
2736of a majority of the remaining directors, notwithstanding any
2737provision to the contrary contained in this chapter. If
2738vacancies occur on the board as a result of a recall and a
2739majority or more of the board members are removed, the vacancies
2740shall be filled in accordance with procedural rules to be
2741adopted by the division, which rules need not be consistent with
2742this chapter. The rules must provide procedures governing the
2743conduct of the recall election as well as the operation of the
2744association during the period after a recall but prior to the
2745recall election.
2746     (g)  Common expenses.--The manner of collecting from the
2747shareholders unit owners their shares of the common expenses
2748shall be stated. Assessments shall be made against shareholders
2749unit owners not less frequently than quarterly, in an amount no
2750less than is required to provide funds in advance for payment of
2751all of the anticipated current operating expense and for all of
2752the unpaid operating expense previously incurred. Nothing in
2753this paragraph shall preclude the right of an association to
2754accelerate assessments of a shareholder an owner delinquent in
2755payment of common expenses in actions taken pursuant to s.
2756719.104(5)(4).
2757     (h)  Amendment of bylaws.--
2758     1.  The method by which the bylaws may be amended
2759consistent with the provisions of this chapter shall be stated.
2760If the bylaws fail to provide a method of amendment, the bylaws
2761may be amended if the amendment is approved by shareholders
2762owners of not less than two-thirds of the voting interests.
2763     2.  No bylaw shall be revised or amended by reference to
2764its title or number only. Proposals to amend existing bylaws
2765shall contain the full text of the bylaws to be amended; new
2766words shall be inserted in the text underlined, and words to be
2767deleted shall be lined through with hyphens. However, if the
2768proposed change is so extensive that this procedure would
2769hinder, rather than assist, the understanding of the proposed
2770amendment, it is not necessary to use underlining and hyphens as
2771indicators of words added or deleted, but, instead, a notation
2772must be inserted immediately preceding the proposed amendment in
2773substantially the following language: "Substantial rewording of
2774bylaw. See bylaw _____ for present text."
2775     3.  Nonmaterial errors or omissions in the bylaw process
2776shall not invalidate an otherwise properly promulgated
2777amendment.
2778     4.  If the bylaws provide for amendment by the board of
2779directors, no bylaw may be amended unless it is heard and
2780noticed at two consecutive meetings of the board of directors
2781that are at least 1 week apart. If the bylaws provide for
2782amendment of the bylaws by a vote of the shareholders, the
2783meeting at which the vote is to be taken must be conducted
2784between the hours of 6 p.m. and 10 p.m. local time.
2785     (i)  Transfer fees.--No charge may be made by the
2786association or any body thereof in connection with the sale,
2787mortgage, lease, sublease, or other transfer of a unit unless
2788the association is required to approve such transfer and a fee
2789for such approval is provided for in the cooperative documents.
2790Any such fee may be preset, but in no event shall it exceed $100
2791per applicant other than husband/wife or parent/dependent child,
2792which are considered one applicant. However, if the lease or
2793sublease is a renewal of a lease or sublease with the same
2794lessee or sublessee, no charge shall be made. Nothing in this
2795paragraph shall be construed to prohibit an association from
2796requiring as a condition to permitting the letting or renting of
2797a unit, when the association has such authority in the
2798documents, the depositing into an escrow account maintained by
2799the association a security deposit in an amount not to exceed
2800the equivalent of 1 month's rent. The security deposit shall
2801protect against damages to the common areas or cooperative
2802property. Within 15 days after a tenant vacates the premises,
2803the association shall refund the full security deposit or give
2804written notice to the tenant of any claim made against the
2805security. Disputes under this paragraph shall be handled in the
2806same fashion as disputes concerning security deposits under s.
280783.49.
2808     (j)  Annual budget.--
2809     1.  The proposed annual budget of estimated revenues and
2810common expenses shall be detailed and shall show the amounts
2811budgeted by accounts and expense classifications, including, if
2812applicable, but not limited to, those expenses listed in s.
2813719.504(20).
2814     2.  In addition to annual operating expenses, the budget
2815shall include reserve accounts for capital expenditures and
2816deferred maintenance. These accounts shall include, but not be
2817limited to, roof replacement, building painting, and pavement
2818resurfacing, regardless of the amount of deferred maintenance
2819expense or replacement cost, and for any other items for which
2820the deferred maintenance expense or replacement cost exceeds
2821$10,000. The amount to be reserved shall be computed by means of
2822a formula which is based upon estimated remaining useful life
2823and estimated replacement cost or deferred maintenance expense
2824of each reserve item. The association may adjust replacement
2825reserve assessments annually to take into account any changes in
2826estimates or extension of the useful life of a reserve item
2827caused by deferred maintenance. This paragraph shall not apply
2828to any budget in which the members of an association have, at a
2829duly called meeting of the association, determined for a fiscal
2830year to provide no reserves or reserves less adequate than
2831required by this subsection. However, prior to turnover of
2832control of an association by a developer to shareholders unit
2833owners other than a developer pursuant to s. 719.301, the
2834developer may vote to waive the reserves or reduce the funding
2835of reserves for the first 2 years of the operation of the
2836association after which time reserves may only be waived or
2837reduced upon the vote of a majority of all nondeveloper voting
2838interests voting in person or by limited proxy at a duly called
2839meeting of the association. If a meeting of the shareholders
2840unit owners has been called to determine to provide no reserves,
2841or reserves less adequate than required, and such result is not
2842attained or a quorum is not attained, the reserves as included
2843in the budget shall go into effect.
2844     3.  Reserve funds and any interest accruing thereon shall
2845remain in the reserve account or accounts, and shall be used
2846only for authorized reserve expenditures unless their use for
2847other purposes is approved in advance by a vote of the majority
2848of the voting interests, voting in person or by limited proxy at
2849a duly called meeting of the association. Prior to turnover of
2850control of an association by a developer to shareholders unit
2851owners other than the developer under s. 719.301, the developer
2852may not vote to use reserves for purposes other than that for
2853which they were intended without the approval of a majority of
2854all nondeveloper voting interests, voting in person or by
2855limited proxy at a duly called meeting of the association.
2856     4.  The only voting interests which are eligible to vote on
2857questions that involve waiving or reducing the funding of
2858reserves, or using existing reserve funds for purposes other
2859than purposes for which the reserves were intended, are the
2860voting interests of the units subject to assessment to fund the
2861reserves in question. Proxy questions relating to waiving or
2862reducing the funding of reserves or using existing reserve funds
2863for purposes other than purposes for which the reserves were
2864intended shall contain the following statement in capitalized,
2865bold letters in a font size larger than any other used on the
2866face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
2867PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
2868RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED
2869SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
2870     (k)  Insurance or fidelity bonds.--The association shall
2871obtain and maintain adequate insurance or fidelity bonding of
2872all persons who control or disburse funds of the association.
2873The insurance policy or fidelity bond must cover the maximum
2874funds that will be in the custody of the association or its
2875management agent at any one time. As used in this paragraph, the
2876term "persons who control or disburse funds of the association"
2877includes, but is not limited to, those individuals authorized to
2878sign checks, and the president, secretary, and treasurer of the
2879association. The association shall bear the cost of bonding and
2880insurance.
2881     (l)  Arbitration.--There shall be a provision for mandatory
2882nonbinding arbitration of internal disputes arising from the
2883operation of the cooperative in accordance with s. 719.1255.
2884     (m)  Common areas; limited power to convey.--
2885     1.  The bylaws shall include a provision granting the
2886association a limited power to convey a portion of the common
2887areas to a condemning authority for the purpose of providing
2888utility easements, right-of-way expansion, or other public
2889purposes, whether negotiated or as a result of eminent domain
2890proceedings.
2891     2.  In any case in which the bylaws are silent as to the
2892association's power to convey common areas as described in
2893subparagraph 1., the bylaws shall be deemed to include the
2894provision described in subparagraph 1.
2895     (n)  Director or officer delinquencies.--A director or
2896officer more than 90 days delinquent in the payment of regular
2897assessments shall be deemed to have abandoned the office,
2898creating a vacancy in the office to be filled according to law.
2899     (o)  Director or officer offenses.--A director or officer
2900charged by information or indictment with a felony theft or
2901embezzlement offense involving the association's funds or
2902property shall be removed from office, creating a vacancy in the
2903office to be filled according to law. While such director or
2904officer has such criminal charge pending in the state or federal
2905court system, he or she may not be appointed or elected to a
2906position as a director or officer. However, should the charges
2907be resolved without a finding of guilt, the director or officer
2908shall be reinstated for the remainder of his or her term of
2909office, if any.
2910     (p)  Qualifications of directors.-- In addition to any
2911other requirement for office in statute or in the governing
2912documents of the association, a person running for or seeking
2913appointment to the board must meet the following qualifications:
2914     1.  In a cooperative association of 10 or more units, only
2915one individual coowner of a unit may serve on the board of
2916administration.
2917     2.  No person may serve as a director of any cooperative
2918association in the state if restricted from serving by action of
2919the division pursuant to s. 719.501.
2920     3.  A person who has been convicted of any felony in this
2921state or in a United States District or Territorial Court, or
2922who has been convicted of any offense in another jurisdiction
2923that would be considered a felony if committed in this state, is
2924not eligible for board membership unless such felon's civil
2925rights have been restored for a period of no less than 5 years
2926as of the date on which such person seeks election to the board.
2927     4.  Within 30 days after being elected or appointed to the
2928board of directors, a director shall certify in writing to the
2929secretary of the association that he or she has read parts I and
2930III of chapter 719; ss. 719.501, 617.0202, 617.0206, 617.0302-
2931617.0304, 617.0501, 617.0505, 617.0801-617.0833, 617.0840-
2932617.0843, 617.1622, and 617.2102; and the association's
2933cooperative documents, bylaws, and current written policies.  
2934The director shall further certify that he or she will work to
2935uphold such documents and policies to the best of his or her
2936ability, and that he or she will faithfully discharge his or her
2937fiduciary responsibility to the association's members. If the
2938division finds that a director has falsely certified that he or
2939she has read the required statutes and documents, the division
2940shall order the director removed the board and shall order the
2941director to reimburse the division for the cost of prosecution
2942and hearing.
2943     5.  After turnover of the association pursuant to s.
2944718.301(4), a director must:
2945     a.  If the unit is owned by an individual or individuals,
2946be one of those individuals.
2947     b.  If the unit is owned by a trust, be an individual
2948qualified pursuant to s. 617.0802.
2949     c.  If the unit is owned by an entity other than a trust,
2950be an individual designated by the entity that owns the unit.
2951
2952These qualifications shall operate on a continuing basis, and
2953upon a failure of a director at any time to meet a
2954qualification, the secretary shall certify that the director is
2955removed from office and that a vacancy in office exists.
2956     (2)  OPTIONAL PROVISIONS.--The bylaws may provide for the
2957following:
2958     (a)  Administrative rules.--A method of adopting and of
2959amending administrative rules and regulations governing the
2960details of the operation and use of the common areas.
2961     (b)  Use and maintenance restrictions.--Restrictions on,
2962and requirements for, the use, maintenance, and appearance of
2963the units and the use of the common areas, not inconsistent with
2964the cooperative documents, designed to prevent unreasonable
2965interference with the use of the units and common areas.
2966     (c)  Notice of meetings.--Provisions for giving notice by
2967electronic transmissions in a manner authorized by law of
2968meetings of the board of directors and committees and of annual
2969and special meetings of the members.
2970     (d)  Other matters.--Other provisions not inconsistent with
2971this chapter or with the cooperative documents as may be
2972desired.
2973     Section 17.  Section 719.1064, Florida Statutes, is
2974repealed.
2975     Section 18.  Paragraphs (b) and (c) of subsection (1) and
2976subsection (2) of section 719.107, Florida Statutes, are
2977amended, and subsection (3) is added to that section, to read:
2978     719.107  Common expenses; assessment.--
2979     (1)
2980     (b)  If so provided in the bylaws, the cost of a master
2981antenna television system or duly franchised cable television
2982service obtained pursuant to a bulk contract shall be deemed a
2983common expense, and if not obtained pursuant to a bulk contract,
2984such cost shall be considered common expense if it is designated
2985as such in a written contract between the board of
2986administration and the company providing the master television
2987antenna system or the cable television service. The contract
2988shall be for a term of not less than 2 years.
2989     1.  Any contract made by the board after April 2, 1992, for
2990a community antenna system or duly franchised cable television
2991service may be canceled by a majority of the voting interests
2992present at the next regular or special meeting of the
2993association. Any member may make a motion to cancel the
2994contract, but if no motion is made or if such motion fails to
2995obtain the required majority at the next regular or special
2996meeting, whichever is sooner, following the making of the
2997contract, then such contract shall be deemed ratified for the
2998term therein expressed.
2999     2.  Any such contract shall provide, and shall be deemed to
3000provide if not expressly set forth, that any hearing impaired or
3001legally blind shareholder unit owner who does not occupy the
3002unit with a nonhearing impaired or sighted person may
3003discontinue the service without incurring disconnect fees,
3004penalties, or subsequent service charges, and as to such units,
3005the shareholders owners shall not be required to pay any common
3006expenses charge related to such service. If less than all
3007members of an association share the expenses of cable
3008television, the expense shall be shared equally by all
3009participating shareholders unit owners. The association may use
3010the provisions of s. 719.108 to enforce payment of the shares of
3011such costs by the shareholders unit owners receiving cable
3012television.
3013     (c)  If any unpaid share of common expenses or assessments
3014is extinguished by foreclosure of a superior lien or by a deed
3015in lieu of foreclosure thereof, the unpaid share of common
3016expenses or assessments are common expenses collectible from all
3017the shareholders unit owners in the cooperative in which the
3018unit is located.
3019     (2)  Funds for the payment of common expenses shall be
3020collected by assessments against shareholders unit owners in the
3021proportions or percentages of sharing common expenses provided
3022in the cooperative documents.
3023     (3)  The expense of installation, replacement, operation,
3024repair, and maintenance of hurricane shutters or other hurricane
3025protection by the board pursuant to s. 719.113(5) shall
3026constitute a common expense as defined in this section and shall
3027be collected as provided in this section if the association is
3028responsible for the maintenance, repair, and replacement of the
3029hurricane shutters or other hurricane protection pursuant to the
3030cooperative documents. However, if the maintenance, repair, and
3031replacement of the hurricane shutters or other hurricane
3032protection is the responsibility of the shareholders pursuant to
3033the cooperative documents, the cost of the installation of the
3034hurricane shutters or other hurricane protection shall not be a
3035common expense, but shall be charged individually to the
3036shareholders based on the cost of installation of the hurricane
3037shutters or other hurricane protection appurtenant to the unit.
3038Notwithstanding the provisions of s. 719.108(8), and regardless
3039of whether or not the cooperative documents requires the
3040association or shareholders maintain, repair, or replace
3041hurricane shutters or other hurricane protection, a shareholder
3042who has previously installed hurricane shutters in accordance
3043with s. 719.113(5), other hurricane protection, or laminated
3044glass architecturally designed to function as hurricane
3045protection, which hurricane shutters or other hurricane
3046protection or laminated glass comply with the current applicable
3047building code, shall receive a credit equal to the pro rata
3048portion of the assessed installation cost assigned to each unit.
3049However, such shareholder shall remain responsible for the pro
3050rata share of expenses for hurricane shutters or other hurricane
3051protection installed on common areas by the board pursuant to s.
3052719.113(5), and shall remain responsible for a pro rata share of
3053the expense of the replacement, operation, repair, and
3054maintenance of such shutters or other hurricane protection.
3055     Section 19.  Section 719.108, Florida Statutes, is amended
3056to read:
3057     719.108  Rents and assessments; liability; lien and
3058priority; interest; collection; cooperative ownership.--
3059     (1)(a)  A shareholder unit owner, regardless of how title
3060is acquired, including, without limitation, a purchaser at a
3061judicial sale or by deed in lieu of foreclosure, shall be liable
3062for all rents and assessments coming due while the shareholder
3063unit owner is in exclusive possession of a unit. In a voluntary
3064transfer, The shareholder unit owner in exclusive possession
3065shall be jointly and severally liable with the previous
3066shareholder unit owner for all unpaid rents and assessments
3067against the previous shareholder unit owner for his or her share
3068of the common expenses up to the time of the transfer, without
3069prejudice to the rights of the shareholder unit owner in
3070exclusive possession to recover from a the previous shareholder
3071unit owner the amounts paid by the shareholder unit owner in
3072exclusive possession therefor.
3073     (b)  The liability of a first mortgagee or its successor or
3074assignees who acquire title to a unit by foreclosure or by deed
3075in lieu of foreclosure for the unpaid assessments that became
3076due prior to the mortgagee's acquisition of title is limited to
3077the lesser of:
3078     1.  The unit's unpaid common expenses and regular periodic
3079assessments which accrued or came due during the 24 months
3080immediately preceding the acquisition of title and for which
3081payment in full has not been received by the association; or
3082     2.  One-half of the unit's unpaid common expenses and
3083regular periodic assessments which accrued or came due from the
3084filing of the foreclosure action through the sale of the unit,
3085provided that the mortgagee timely paid in full the payment
3086required by paragraph (d) and, at the same time, remitted to the
3087association advanced common expenses and regular periodic
3088assessments equal to one-half of the total unpaid common
3089expenses and regular periodic assessments that came due in that
3090time period. Any such advance shall be taxed as a cost in the
3091foreclosure action, and the mortgagor shall be personally liable
3092to the mortgagee for the value of the payment made to the
3093association plus interest at the interest rate provided for in
3094the promissory note for advances.  
3095     (c)  The person acquiring title shall pay the amount owed
3096to the association within 30 days after transfer of title.
3097Failure to pay the full amount when due shall entitle the
3098association to record a claim of lien against the parcel and
3099proceed in the same manner as provided in this section for the
3100collection of unpaid assessments.
3101     (d)  A mortgagee who files a foreclosure case on a mortgage
3102secured by a condominium unit shall pay to the association
3103within 15 days after the filing of the action all of the
3104condominium unit's then unpaid common expenses and regular
3105periodic assessments which accrued or came due up to the date of
3106the filing of the foreclosure action. The payment shall be taxed
3107as a cost in the foreclosure action, and the mortgagor shall be
3108personally liable to the mortgagee for the value of the payment
3109made to the association plus interest at the interest rate
3110provided for in the promissory note for advances. The court
3111shall dismiss a foreclosure action on the association's motion
3112to dismiss for failure to make such payment and shall award the
3113association the costs and reasonable attorney's fees related to
3114the motion.
3115     (e)  The provisions of this subsection are intended to
3116clarify existing law and shall not be available in any case
3117where the unpaid assessments sought to be recovered by the
3118association are secured by a lien recorded prior to the
3119recording of the mortgage. Notwithstanding the provisions of
3120chapter 48, the association shall be a proper party to intervene
3121in any foreclosure proceeding to seek equitable relief. For
3122purposes of this subsection, the term "successor or assignee" as
3123used with respect to a first mortgagee includes only a
3124subsequent holder of the first mortgage.
3125     (2)  The liability for rents and assessments may not be
3126avoided by waiver of the use or enjoyment of any common areas or
3127by abandonment of the unit for which the rents and assessments
3128are made.
3129     (3)  Rents and assessments, and installments on them, not
3130paid when due bear interest at the rate provided in the
3131cooperative documents from the date due until paid. This rate
3132may not exceed the rate allowed by law, and, if no rate is
3133provided in the cooperative documents, then interest shall
3134accrue at 18 percent per annum. Also, if the cooperative
3135documents or bylaws so provide, the association may charge an
3136administrative late fee in addition to such interest, in an
3137amount not to exceed the greater of $25 or 5 percent of each
3138installment of the assessment for each delinquent installment
3139that the payment is late. Any payment received by an association
3140shall be applied first to any interest accrued by the
3141association, then to any administrative late fee, then to any
3142costs and reasonable attorney's fees incurred in collection, and
3143then to the delinquent assessment. The foregoing shall be
3144applicable notwithstanding any restrictive endorsement,
3145designation, or instruction placed on or accompanying a payment.
3146A late fee is not subject to chapter 687 or s. 719.303(3).
3147     (4)  If the association is authorized by the cooperative
3148documents or bylaws to approve or disapprove a proposed lease of
3149a unit, the grounds for disapproval may include, but are not
3150limited to, a shareholder being delinquent in the payment of an
3151assessment at the time approval is sought.
3152     (5)(a)(4)  The association has shall have a lien on each
3153cooperative parcel to secure the payment of for any unpaid rents
3154and assessments, plus interest, against the shareholder who owns
3155unit owner of the cooperative parcel. If authorized by the
3156cooperative documents, said lien shall also secure reasonable
3157attorney's fees incurred by the association incident to the
3158collection of the rents and assessments or enforcement of such
3159lien. The lien is effective from and shall relate back to and
3160after the recording of the cooperative documents a claim of lien
3161in the public records in the county in which the cooperative
3162parcel is located which states the description of the
3163cooperative parcel, the name of the unit owner, the amount due,
3164and the due dates.
3165     (b)  To be valid, a claim of lien must state the
3166description of the cooperative parcel, the name of the record
3167owner, the name and address of the association, the amount due,
3168and the due dates. The claim of lien must be executed and
3169acknowledged by an officer or authorized agent of the
3170association. The lien shall expire if a claim of lien is not
3171filed within 1 year after the date the assessment was due, and
3172no such lien shall continue for a longer period than 1 year
3173after the claim of lien has been recorded unless, within that
3174time, an action to enforce the lien is commenced in a court of
3175competent jurisdiction. The 1-year period shall automatically be
3176extended for any length of time during which the association is
3177prevented from filing a foreclosure action by an automatic stay
3178resulting from a bankruptcy petition filed by the shareholder or
3179any other person claiming an interest in the parcel. The claim
3180of lien shall secure all unpaid assessments which are due and
3181which may accrue subsequent to the recording of the claim of
3182lien and prior to the entry of a certificate of title, as well
3183as interest and all reasonable costs and attorney's fees
3184incurred by the association incident to the collection process.
3185Upon payment in full, the person making the payment is entitled
3186to a satisfaction of the lien. No lien may be filed by the
3187association against a cooperative parcel until 30 days after the
3188date on which a notice of intent to file a lien has been served
3189on the unit owner of the cooperative parcel by certified mail or
3190by personal service in the manner authorized by chapter 48 and
3191the Florida Rules of Civil Procedure.
3192     (c)  By recording a notice in substantially the following
3193form, a shareholder or the shareholder's agent or attorney may
3194require the association to enforce a recorded claim of lien
3195against his or her cooperative parcel:
3196
3197
NOTICE OF CONTEST OF LIEN
3198
3199     TO:   (Name and address of association)   You are notified
3200that the undersigned contests the claim of lien filed by you on
3201_____,   (year)  , and recorded in Official Records Book _____
3202at Page _____, of the public records of _____ County, Florida,
3203and that the time within which you may file suit to enforce your
3204lien is limited to 90 days after the date of service of this
3205notice. Executed this _____ day of _____,   (year)  .
3206
3207Signed:   (Shareholder or Attorney)
3208
3209After notice of contest of lien has been recorded, the clerk of
3210the circuit court shall mail a copy of the recorded notice to
3211the association by certified mail, return receipt requested, at
3212the address shown in the claim of lien or most recent amendment
3213to the claim of lien and shall certify to the service on the
3214face of the notice. Service is complete upon mailing. After
3215service, the association has 90 days in which to file an action
3216to enforce the lien; and, if the action is not filed within the
321790-day period, the lien is void. However, the 90-day period
3218shall be extended for any length of time that the association is
3219prevented from filing its action because of an automatic stay
3220resulting from the filing of a bankruptcy petition by the
3221shareholder or by any other person claiming an interest in the
3222parcel.
3223     (6)(a)(5)  Liens for rents and assessments may be
3224foreclosed by suit brought in the name of the association, in
3225like manner as a foreclosure of a mortgage on real property. In
3226any foreclosure, the shareholder unit owner shall pay a
3227reasonable rental for the cooperative parcel, if so provided in
3228the cooperative documents, and the plaintiff in the foreclosure
3229is entitled to the appointment of a receiver to collect the
3230rent. The association has the power, unless prohibited by the
3231cooperative documents, to bid on the cooperative parcel at the
3232foreclosure sale and to acquire and hold, lease, mortgage, or
3233convey it. Suit to recover a money judgment for unpaid rents and
3234assessments may be maintained without waiving the lien securing
3235them.
3236     (b)  No foreclosure judgment may be entered until at least
323730 days after the association gives written notice to the
3238shareholder of its intention to foreclose its lien to collect
3239the unpaid rents and assessments. If this notice is not given at
3240least 30 days before the foreclosure action is filed, and if the
3241unpaid rents and assessments, including those coming due after
3242the claim of lien is recorded, are paid before the entry of a
3243final judgment of foreclosure, the association shall not recover
3244attorney's fees or costs. The notice must be given by delivery
3245of a copy of it to the shareholder or by certified or registered
3246mail, return receipt requested, addressed to the shareholder at
3247his or her last known address; and, upon such mailing, the
3248notice shall be deemed to have been given, and the court shall
3249proceed with the foreclosure action and may award attorney's
3250fees and costs as permitted by law. The notice requirements of
3251this paragraph are satisfied if the shareholder records a notice
3252of contest of lien as provided in subsection (5). The notice
3253requirements of this paragraph do not apply if an action to
3254foreclose a mortgage on the cooperative unit is pending before
3255any court; if the rights of the association would be affected by
3256such foreclosure; and if actual, constructive, or substitute
3257service of process has been made on the shareholder.
3258     (c)  If the shareholder remains in possession of the unit
3259after a foreclosure judgment has been entered, the court, in its
3260discretion, may require the shareholder to pay a reasonable
3261rental for the unit. If the unit is rented or leased during the
3262pendency of the foreclosure action, the association is entitled
3263to the appointment of a receiver to collect the rent. The
3264expenses of the receiver shall be paid by the party which does
3265not prevail in the foreclosure action.
3266     (d)  The association has the power to purchase the
3267cooperative unit at the foreclosure sale and to hold, lease,
3268mortgage, or convey it.
3269     (7)  Within 15 days after receiving a written request
3270therefor from a shareholder or his or her designee, or a unit
3271mortgagee or his or her designee, the association shall provide
3272a certificate signed by an officer or agent of the association
3273stating all assessments and other moneys owed to the association
3274by the shareholder with respect to the cooperative parcel.
3275     (a)  Any person other than the shareholder who relies upon
3276such certificate shall be protected thereby.
3277     (b)  A summary proceeding pursuant to s. 51.011 may be
3278brought to compel compliance with this subsection, and in any
3279such action the prevailing party is entitled to recover
3280reasonable attorney's fees.
3281     (c)  Notwithstanding any limitation on transfer fees
3282contained in s. 719.106(1)(i), the association or its authorized
3283agent may charge a reasonable fee for the preparation of the
3284certificate. The amount of the fee must be included on the
3285certificate.
3286     (d)  The authority to charge a fee for the certificate
3287shall be established by a written resolution adopted by the
3288board or provided by a written management, bookkeeping, or
3289maintenance contract and is payable upon the preparation of the
3290certificate. If the certificate is requested in conjunction with
3291the sale or mortgage of a unit but the closing does not occur
3292and no later than 30 days after the closing date for which the
3293certificate was sought the preparer receives a written request,
3294accompanied by reasonable documentation, that the sale did not
3295occur from a payor that is not the shareholder, the fee shall be
3296refunded to that payor within 30 days after receipt of the
3297request. The refund is the obligation of the shareholder, and
3298the association may collect the refund from that shareholder in
3299the same manner as an assessment as provided in this section.
3300     (6)  Within 15 days after request by a unit owner or
3301mortgagee, the association shall provide a certificate stating
3302all assessments and other moneys owed to the association by the
3303unit owner with respect to the cooperative parcel. Any person
3304other than the unit owner who relies upon such certificate shall
3305be protected thereby. Notwithstanding any limitation on transfer
3306fees contained in s. 719.106(1)(i), the association or its
3307authorized agent may charge a reasonable fee for the preparation
3308of the certificate.
3309     (7)  The remedies provided in this section do not exclude
3310other remedies provided by the cooperative documents and
3311permitted by law.
3312     (8)(a)  No shareholder unit owner may be excused from the
3313payment of his or her share of the rents or assessments of a
3314cooperative unless all shareholders unit owners are likewise
3315proportionately excused from payment, except as provided in
3316subsection (6) and in the following cases:
3317     1.  If the cooperative documents so provide, a developer or
3318other person owning cooperative units offered for sale may be
3319excused from the payment of the share of the common expenses,
3320assessments, and rents related to those units for a stated
3321period of time. The period must terminate no later than the
3322first day of the fourth calendar month following the month in
3323which the right of exclusive possession is first granted to a
3324shareholder unit owner. However, the developer must pay the
3325portion of common expenses incurred during that period which
3326exceed the amount assessed against other shareholders unit
3327owners.
3328     2.  A developer, or other person with an ownership interest
3329in cooperative units or having an obligation to pay common
3330expenses, may be excused from the payment of his or her share of
3331the common expenses which would have been assessed against those
3332units during the period of time that he or she shall have
3333guaranteed to each purchaser in the purchase contract or in the
3334cooperative documents, or by agreement between the developer and
3335a majority of the shareholders unit owners other than the
3336developer, that the assessment for common expenses of the
3337cooperative imposed upon the shareholders unit owners would not
3338increase over a stated dollar amount and shall have obligated
3339himself or herself to pay any amount of common expenses incurred
3340during that period and not produced by the assessments at the
3341guaranteed level receivable from other shareholders unit owners.
3342     (b)  If the purchase contract, cooperative documents, or
3343agreement between the developer and a majority of shareholders
3344unit owners other than the developer provides for the developer
3345or another person to be excused from the payment of assessments
3346pursuant to paragraph (a), no funds receivable from shareholders
3347unit owners payable to the association or collected by the
3348developer on behalf of the association, other than regular
3349periodic assessments for common expenses as provided in the
3350cooperative documents and disclosed in the estimated operating
3351budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may
3352be used for payment of common expenses prior to the expiration
3353of the period during which the developer or other person is so
3354excused. This restriction applies to funds including, but not
3355limited to, capital contributions or startup funds collected
3356from shareholders unit purchasers at closing.
3357     (9)  The specific purposes of any special assessment,
3358including any contingent special assessment levied in
3359conjunction with the purchase of an insurance policy authorized
3360by s. 719.104(3), approved in accordance with the cooperative
3361documents shall be set forth in a written notice of such
3362assessment sent or delivered to each shareholder unit owner. The
3363funds collected pursuant to a special assessment shall be used
3364only for the specific purpose or purposes set forth in such
3365notice or returned to the shareholders unit owners. However,
3366upon completion of such specific purposes, any excess funds
3367shall be considered common surplus and may, at the discretion of
3368the board, either be returned to the shareholders unit owners or
3369applied as a credit toward future assessments.
3370     (10)  During the pendency of any foreclosure action of a
3371cooperative unit, if the unit is occupied by a tenant and the
3372shareholder is delinquent in the payment of regular assessments,
3373the association may demand that the tenant pay to the
3374association the future regular assessments related to the
3375cooperative unit. The demand shall be continuing in nature, and
3376upon demand the tenant shall continue to pay the regular
3377assessments to the association until the association releases
3378the tenant or the tenant discontinues tenancy in the unit. The
3379association shall mail written notice to the shareholder of the
3380association's demand that the tenant pay regular assessments to
3381the association. The tenant shall not be liable for increases in
3382the amount of the regular assessment due unless the tenant was
3383reasonably notified of the increase prior to the day that the
3384rent is due. The tenant shall be given a credit against rents
3385due to the shareholder in the amount of assessments paid to the
3386association. The association shall, upon request, provide the
3387tenant with written receipts for payments made. The association
3388may issue notices under s. 83.56 and may sue for eviction under
3389ss. 83.59-83.625 as if the association were a landlord under
3390part II of chapter 83 should the tenant fail to pay an
3391assessment.  However, the association shall not otherwise be
3392considered a landlord under chapter 83 and shall specifically
3393not have any duty under s. 83.51. The tenant shall not, by
3394virtue of payment of assessments, have any of the rights of a
3395shareholder to vote in any election or to examine the books and
3396records of the association. A court may supersede the effect of
3397this subsection by appointing a receiver.
3398     Section 20.  Section 719.113, Florida Statutes, is created
3399to read:
3400     719.113  Maintenance; limitation upon improvement; display
3401of flag; hurricane shutters; display of religious decorations.--
3402     (1)  Maintenance of the common areas is the responsibility
3403of the association. The cooperative documents may provide that
3404certain limited common areas shall be maintained by those
3405entitled to use the limited common areas or that the association
3406shall provide the maintenance, either as a common expense or
3407with the cost shared only by those entitled to use the limited
3408common areas. If the maintenance is to be provided by the
3409association at the expense of only those entitled to use the
3410limited common areas, the cooperative documents shall describe
3411in detail the method of apportioning such costs among those
3412entitled to use the limited common areas. The association may
3413use the provisions of s. 719.108 to enforce payment of the
3414shares of such costs by the shareholders entitled to use the
3415limited common areas.
3416     (2)  Except as otherwise provided in this section, there
3417shall be no material alteration or substantial additions to the
3418common areas, except in a manner provided in the cooperative
3419documents as originally recorded or as amended under the
3420procedures provided therein. If the cooperative documents as
3421originally recorded or as amended under the procedures provided
3422therein do not specify the procedure for approval of material
3423alterations or substantial additions, 75 percent of the total
3424voting interests of the association must approve the alterations
3425or additions. This subsection is intended to clarify existing
3426law and applies to associations existing on July 1, 2009.
3427     (3)  A shareholder shall not do anything within his or her
3428unit or on the common areas which would adversely affect the
3429safety or soundness of the common areas or any portion of the
3430association property or cooperative property which is to be
3431maintained by the association.
3432     (4)  Any shareholder may display one portable, removable
3433United States flag in a respectful way and, on Armed Forces Day,
3434Memorial Day, Flag Day, Independence Day, and Veterans' Day, may
3435display in a respectful way portable, removable official flags,
3436not larger than 4 1/2 feet by 6 feet, that represent the United
3437States Army, Navy, Air Force, Marine Corps, or Coast Guard,
3438regardless of any declaration rules or requirements dealing with
3439flags or decorations.
3440     (5)  Each board of directors shall adopt hurricane shutter
3441specifications for each building within each cooperative which
3442shall include color, style, and other factors deemed relevant by
3443the board. All specifications adopted by the board shall comply
3444with the applicable building code.
3445     (a)  The board may, subject to the provisions of s.
3446719.3026 and the approval of a majority of voting interests of
3447the condominium, install hurricane shutters or hurricane
3448protection that complies with or exceeds the applicable building
3449code, or both, except that a vote of the shareholders is not
3450required if the maintenance, repair, and replacement of
3451hurricane shutters or other forms of hurricane protection are
3452the responsibility of the association pursuant to the
3453declaration of condominium. However, when hurricane protection
3454or laminated glass or window film architecturally designed to
3455function as hurricane protection which complies with or exceeds
3456the current applicable building code has been previously
3457installed, the board may not install hurricane shutters or other
3458hurricane protection. Code-compliant impact glass may be
3459installed by the association as hurricane protection if the area
3460in which the glass is to be installed is an area that is the
3461responsibility of the association. Notwithstanding s.
3462719.107(3), if a shareholder installed code-compliant impact
3463glass prior to the association voting to install such glass, and
3464such glass and the frame thereof complies with the current
3465applicable building codes and is otherwise in good repair, the
3466shareholder shall not be required to pay the shareholders' pro
3467rata share of the cost of installing code-compliant impact glass
3468in the cooperative association.
3469     (b)  The association shall be responsible for the
3470maintenance, repair, and replacement of the hurricane shutters
3471or other hurricane protection authorized by this subsection if
3472such hurricane shutters or other hurricane protection is the
3473responsibility of the association pursuant to the declaration of
3474condominium. If the hurricane shutters or other hurricane
3475protection authorized by this subsection are the responsibility
3476of the shareholders pursuant to the cooperative documents, the
3477responsibility for the maintenance, repair, and replacement of
3478such items shall be the responsibility of the shareholder.
3479     (c)  The board may operate hurricane shutters installed
3480pursuant to this subsection without permission of the
3481shareholders only when such operation is necessary to preserve
3482and protect the cooperative property and association property.
3483The installation, replacement, operation, repair, and
3484maintenance of such shutters in accordance with the procedures
3485set forth herein shall not be deemed a material alteration to
3486the common elements or association property within the meaning
3487of this section.
3488     (d)  Notwithstanding any provision to the contrary in the
3489cooperative documents, if approval is required by the documents,
3490a board shall not refuse to approve the installation or
3491replacement of hurricane shutters by a shareholder conforming to
3492the specifications adopted by the board.
3493     (6)  As to any cooperative building greater than three
3494stories in height, at least every 5 years, and within 5 years if
3495not available for inspection on July 1, 2009, the board shall
3496have the cooperative building inspected to provide a report
3497under seal of an architect or engineer authorized to practice in
3498this state attesting to required maintenance, useful life, and
3499replacement costs of the common areas. However, if approved by a
3500majority of the voting interests present at a properly called
3501meeting of the association, an association may waive this
3502requirement. Such meeting and approval must occur prior to the
3503end of the 5-year period and is effective only for that 5-year
3504period.
3505     (7)  An association may not refuse the request of a
3506shareholder for a reasonable accommodation for the attachment on
3507the mantel or frame of the door of the shareholder of a
3508religious object not to exceed 3 inches wide, 6 inches high, and
35091.5 inches deep.
3510     (8)  Notwithstanding the provisions of this section or the
3511governing documents of a cooperative association, the board of
3512directors may, without any requirement for approval of the
3513shareholders, install upon or within the common areas or
3514association property solar collectors, clotheslines, or other
3515energy-efficient devices based on renewable resources for the
3516benefit of the shareholders.
3517     Section 21.  Section 719.117, Florida Statutes, is created
3518to read:
3519     719.117  Termination of cooperative.--
3520     (1)  LEGISLATIVE FINDINGS.--The Legislature finds that
3521cooperatives are created as authorized by statute. In
3522circumstances that may create economic waste, areas of
3523disrepair, or obsolescence of a cooperative property for its
3524intended use and thereby lower property tax values, the
3525Legislature further finds that it is the public policy of this
3526state to provide by statute a method to preserve the value of
3527the property interests and the rights of alienation thereof that
3528shareholders have in the cooperative property before and after
3529termination. The Legislature further finds that it is contrary
3530to the public policy of this state to require the continued
3531operation of a cooperative when to do so constitutes economic
3532waste or when the ability to do so is made impossible by law or
3533regulation. This section applies to all cooperatives in this
3534state in existence on or after July 1, 2009.
3535     (2)  TERMINATION BECAUSE OF ECONOMIC WASTE OR
3536IMPOSSIBILITY.--
3537     (a)  Notwithstanding any provision to the contrary in the
3538cooperative documents, the cooperative form of ownership of a
3539property may be terminated by a plan of termination approved by
3540the lesser of the lowest percentage of voting interests
3541necessary to amend the articles of incorporation when:
3542     1.  The total estimated cost of repairs necessary to
3543restore the improvements to their former condition or bring them
3544into compliance with applicable laws or regulations exceeds the
3545combined fair market value of all units in the cooperative after
3546completion of the repairs; or
3547     2.  It becomes impossible to operate or reconstruct a
3548cooperative in its prior physical configuration because of land
3549use laws or regulations.
3550     (b)  Notwithstanding paragraph (a), a cooperative in which
355175 percent or more of the units are timeshare units may be
3552terminated only pursuant to a plan of termination approved by 80
3553percent of the total voting interests of the association and the
3554holders of 80 percent of the original principal amount of
3555outstanding recorded mortgage liens of timeshare estates in the
3556cooperative, unless the declaration provides for a lower voting
3557percentage.
3558     (3)  OPTIONAL TERMINATION.--Except as provided in
3559subsection (2) or unless the declaration provides for a lower
3560percentage, the cooperative form of ownership of the property
3561may be terminated pursuant to a plan of termination approved by
3562at least 80 percent of the total voting interests of the
3563cooperative if not more than 10 percent of the total voting
3564interests of the cooperative have rejected the plan of
3565termination by negative vote or by providing written objections
3566thereto. This subsection does not apply to cooperatives in which
356775 percent or more of the units are timeshare units.
3568     (4)  EXEMPTION.--A plan of termination is not an amendment
3569subject to s. 719.1055(1).
3570     (5)  MORTGAGE LIENHOLDERS.--Notwithstanding any provision
3571to the contrary in the declaration or this chapter, approval of
3572a plan of termination by the holder of a recorded mortgage lien
3573affecting a cooperative parcel in which fewer than 75 percent of
3574the units are timeshare units is not required unless the plan of
3575termination will result in less than the full satisfaction of
3576the mortgage lien affecting the cooperative parcel. If such
3577approval is required and not given, a holder of a recorded
3578mortgage lien who objects to the plan of termination may contest
3579the plan as provided in subsection (16). At the time of sale,
3580the lien shall be transferred to the proportionate share of the
3581proceeds assigned to the cooperative parcel in the plan of
3582termination or as subsequently modified by the court.
3583     (6)  POWERS IN CONNECTION WITH TERMINATION.--The approval
3584of the plan of termination does not terminate the association.
3585The association shall continue in existence following approval
3586of the plan of termination with all powers and duties it had
3587before approval of the plan. Notwithstanding any provision to
3588the contrary in the declaration or bylaws, after approval of the
3589plan the board shall:
3590     (a)  Employ directors, agents, attorneys, and other
3591professionals to liquidate or conclude its affairs.
3592     (b)  Conduct the affairs of the association as necessary
3593for the liquidation or termination.
3594     (c)  Carry out contracts and collect, pay, and settle debts
3595and claims for and against the association.
3596     (d)  Defend suits brought against the association.
3597     (e)  Sue in the name of the association for all sums due or
3598owed to the association or to recover any of its property.
3599     (f)  Perform any act necessary to maintain, repair, or
3600demolish unsafe or uninhabitable improvements or other
3601cooperative property in compliance with applicable codes.
3602     (g)  Sell at public or private sale or exchange, convey, or
3603otherwise dispose of assets of the association for an amount
3604deemed to be in the best interests of the association, and
3605execute bills of sale and deeds of conveyance in the name of the
3606association.
3607     (h)  Collect and receive rents, profits, accounts
3608receivable, income, maintenance fees, special assessments, or
3609insurance proceeds for the association.
3610     (i)  Contract and do anything in the name of the
3611association which is proper or convenient to terminate the
3612affairs of the association.
3613     (7)  NATURAL DISASTERS.--
3614     (a)  If, after a natural disaster, the identity of the
3615directors or their right to hold office is in doubt, if they are
3616deceased or unable to act, if they fail or refuse to act, or if
3617they cannot be located, any interested person may petition the
3618circuit court to determine the identity of the directors or, if
3619found to be in the best interests of the shareholders, to
3620appoint a receiver to conclude the affairs of the association
3621after a hearing following notice to such persons as the court
3622directs. Lienholders shall be given notice of the petition and
3623have the right to propose persons for the consideration by the
3624court as receiver. If a receiver is appointed, the court shall
3625direct the receiver to provide to all shareholders written
3626notice of his or her appointment as receiver. Such notice shall
3627be mailed or delivered within 10 days after the appointment.
3628Notice by mail to a shareholder shall be sent to the address
3629used by the county property appraiser for notice to the
3630shareholder.
3631     (b)  The receiver shall have all powers given to the board
3632pursuant to the declaration, bylaws, and subsection (6), and any
3633other powers that are necessary to conclude the affairs of the
3634association and are set forth in the order of appointment. The
3635appointment of the receiver is subject to the bonding
3636requirements of such order. The order shall also provide for the
3637payment of a reasonable fee to the receiver from the sources
3638identified in the order, which may include rents, profits,
3639incomes, maintenance fees, or special assessments collected from
3640the cooperative property.
3641     (8)  REPORTS AND REPLACEMENT OF RECEIVER.--
3642     (a)  The association, receiver, or termination trustee
3643shall prepare reports each quarter following the approval of the
3644plan of termination setting forth the status and progress of the
3645termination, the costs and fees incurred, the date the
3646termination is expected to be completed, and the current
3647financial condition of the association, receivership, or
3648trusteeship and provide copies of the report by regular mail to
3649the shareholders and lienors at the mailing address provided to
3650the association by the shareholders and the lienors.
3651     (b)  The shareholders of an association in termination may
3652recall or remove members of the board of administration with or
3653without cause at any time as provided in s. 718.106(1)(f).
3654     (c)  The lienors of an association in termination
3655representing at least 50 percent of the outstanding amount of
3656liens may petition the court for the appointment of a
3657termination trustee, which shall be granted upon good cause
3658shown.
3659     (9)  PLAN OF TERMINATION.--The plan of termination must be
3660a written document executed in the same manner as a deed by
3661shareholders having the requisite percentage of voting interests
3662to approve the plan and by the termination trustee. A copy of
3663the proposed plan of termination shall be given to all
3664shareholders, in the same manner as provided for notice of an
3665annual meeting, at least 14 days prior to the meeting at which
3666the plan of termination is to be voted upon or prior to or
3667simultaneously with the distribution of the solicitation seeking
3668execution of the plan of termination or written consent to or
3669joinder in the plan. A shareholder may document assent to the
3670plan by executing the plan or by consent to or joinder in the
3671plan in the manner of a deed. A plan of termination and the
3672consents or joinders of shareholders and, if required, consents
3673or joinders of mortgagees must be recorded in the public records
3674of each county in which any portion of the cooperative is
3675located. The plan is effective only upon recordation or at a
3676later date specified in the plan.
3677     (10)  PLAN OF TERMINATION; REQUIRED PROVISIONS.--The plan
3678of termination must specify:
3679     (a)  The name, address, and powers of the termination
3680trustee.
3681     (b)  A date after which the plan of termination is void if
3682it has not been recorded.
3683     (c)  The interests of the respective shareholders in the
3684association property, common surplus, and other assets of the
3685association, which shall be the same as the respective interests
3686of the shareholders in the common areas immediately before the
3687termination, unless otherwise provided in the declaration.
3688     (d)  The interests of the respective shareholders in any
3689proceeds from the sale of the cooperative property. The plan of
3690termination may apportion those proceeds pursuant to any method
3691prescribed in subsection (12). If, pursuant to the plan of
3692termination, cooperative property or real property owned by the
3693association is to be sold following termination, the plan must
3694provide for the sale and may establish any minimum sale terms.
3695     (e)  Any interests of the respective shareholders in
3696insurance proceeds or condemnation proceeds that are not used
3697for repair or reconstruction at the time of termination. Unless
3698the declaration expressly addresses the distribution of
3699insurance proceeds or condemnation proceeds, the plan of
3700termination may apportion those proceeds pursuant to any method
3701prescribed in subsection (12).
3702     (11)  PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
3703TERMINATION.--
3704     (a)  The plan of termination may provide that each
3705shareholder retains the exclusive right of possession to the
3706portion of the real estate that formerly constituted the unit,
3707in which case the plan must specify the conditions of
3708possession.
3709     (b)  In a conditional termination, the plan must specify
3710the conditions for termination. A conditional plan does not vest
3711title in the termination trustee until the plan and a
3712certificate executed by the association with the formalities of
3713a deed, confirming that the conditions in the conditional plan
3714have been satisfied or waived by the requisite percentage of the
3715voting interests, have been recorded.
3716     (12)  ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE
3717PROPERTY.--
3718     (a)  Unless the declaration expressly provides for the
3719allocation of the proceeds of sale of cooperative property, the
3720plan of termination must first apportion the proceeds between
3721the aggregate value of all units and the value of the common
3722areas, based on their respective fair market values immediately
3723before the termination, as determined by one or more independent
3724appraisers selected by the association or termination trustee.
3725     (b)  The portion of proceeds allocated to the units shall
3726be further apportioned among the individual units. The
3727apportionment is deemed fair and reasonable if it is so
3728determined by the shareholders, who may approve the plan of
3729termination by any of the following methods:
3730     1.  The respective values of the units based on the fair
3731market values of the units immediately before the termination,
3732as determined by one or more independent appraisers selected by
3733the association or termination trustee;
3734     2.  The respective values of the units based on the most
3735recent market value of the units before the termination, as
3736provided in the county property appraiser's records; or
3737     3.  The respective interests of the units in the common
3738elements specified in the cooperative documents immediately
3739before the termination.
3740     (c)  The methods of apportionment in paragraph (b) do not
3741prohibit any other method of apportioning the proceeds of sale
3742allocated to the units agreed upon in the plan of termination.
3743The portion of the proceeds allocated to the common elements
3744shall be apportioned among the units based upon their respective
3745interests in the common areas as provided in the declaration.
3746     (d)  Liens that encumber a unit shall be transferred to the
3747proceeds of sale of the cooperative property and the proceeds of
3748sale or other distribution of association property, common
3749surplus, or other association assets attributable to such unit
3750in their same priority. The proceeds of any sale of cooperative
3751property pursuant to a plan of termination may not be deemed to
3752be common surplus or association property.
3753     (13)  TERMINATION TRUSTEE.--The association shall serve as
3754termination trustee unless another person is appointed in the
3755plan of termination. If the association is unable, unwilling, or
3756fails to act as trustee, any shareholder may petition the court
3757to appoint a trustee. Upon the date of the recording or at a
3758later date specified in the plan, title to the cooperative
3759property vests in the trustee. Unless prohibited by the plan,
3760the termination trustee shall be vested with the powers given to
3761the board pursuant to the cooperative documents, bylaws, and
3762subsection (6). If the association is not the termination
3763trustee, the trustee's powers shall be coextensive with those of
3764the association to the extent not prohibited in the plan of
3765termination or the order of appointment. If the association is
3766not the termination trustee, the association shall transfer any
3767association property to the trustee. If the association is
3768dissolved, the trustee shall also have such other powers
3769necessary to conclude the affairs of the association.
3770     (14)  TITLE VESTED IN TERMINATION TRUSTEE.--If termination
3771is pursuant to a plan of termination under subsection (2) or
3772subsection (3), the shareholders' rights and title as tenants in
3773common in undivided interests in the cooperative property vest
3774in the termination trustee when the plan is recorded or at a
3775later date specified in the plan. The shareholders thereafter
3776become the beneficiaries of the proceeds realized from the plan
3777of termination. The termination trustee may deal with the
3778cooperative property or any interest therein if the plan confers
3779on the trustee the authority to protect, conserve, manage, sell,
3780or dispose of the cooperative property. The trustee, on behalf
3781of the shareholders, may contract for the sale of real property,
3782but the contract is not binding on the shareholders until the
3783plan is approved pursuant to subsection (2) or subsection (3).
3784     (15)  NOTICE.--
3785     (a)  Within 30 days after a plan of termination has been
3786recorded, the termination trustee shall deliver by certified
3787mail, return receipt requested, notice to all shareholders,
3788lienors of the cooperative property, and lienors of all units at
3789their last known addresses that a plan of termination has been
3790recorded. The notice must include the book and page number of
3791the public records in which the plan was recorded, notice that a
3792copy of the plan shall be furnished upon written request, and
3793notice that the shareholder or lienor has the right to contest
3794the fairness of the plan.
3795     (b)  The trustee, within 90 days after the effective date
3796of the plan, shall provide to the division a certified copy of
3797the recorded plan, the date the plan was recorded, and the
3798county, book, and page number of the public records in which the
3799plan is recorded.
3800     (16)  RIGHT TO CONTEST.--A shareholder or lienor may
3801contest a plan of termination by initiating a summary procedure
3802pursuant to s. 51.011 within 90 days after the date the plan is
3803recorded. A shareholder or lienor who does not contest the plan
3804within the 90-day period is barred from asserting or prosecuting
3805a claim against the association, the termination trustee, any
3806shareholder, or any successor in interest to the cooperative
3807property. In an action contesting a plan of termination, the
3808person contesting the plan has the burden of pleading and
3809proving that the apportionment of the proceeds from the sale
3810among the shareholders was not fair and reasonable. The
3811apportionment of sale proceeds is presumed fair and reasonable
3812if it was determined pursuant to the methods prescribed in
3813subsection (12). The court shall determine the rights and
3814interests of the parties and order the plan of termination to be
3815implemented if it is fair and reasonable. If the court
3816determines that the plan of termination is not fair and
3817reasonable, the court may void the plan or may modify the plan
3818to apportion the proceeds in a fair and reasonable manner
3819pursuant to this section based upon the proceedings and order
3820the modified plan of termination to be implemented. In such
3821action, the prevailing party shall recover reasonable attorney's
3822fees and costs.
3823     (17)  DISTRIBUTION.--
3824     (a)  Following termination of the cooperative, the
3825cooperative property, association property, common surplus, and
3826other assets of the association shall be held by the termination
3827trustee, as trustee for shareholders and holders of liens on the
3828units, in their order of priority.
3829     (b)  Not less than 30 days before the first distribution,
3830the termination trustee shall deliver by certified mail, return
3831receipt requested, a notice of the estimated distribution to all
3832shareholders, lienors of the cooperative property, and lienors
3833of each unit at their last known addresses stating a good faith
3834estimate of the amount of the distributions to each class and
3835the procedures and deadline for notifying the termination
3836trustee of any objections to the amount. The deadline must be at
3837least 15 days after the date the notice was mailed. The notice
3838may be sent with or after the notice required by subsection
3839(15). If a shareholder or lienor files a timely objection with
3840the termination trustee, the trustee need not distribute the
3841funds and property allocated to the respective shareholder or
3842lienor until the trustee has had a reasonable time to determine
3843the validity of the adverse claim. In the alternative, the
3844trustee may interplead the shareholder, lienor, and any other
3845person claiming an interest in the unit and deposit the funds
3846allocated to the unit in the court registry, at which time the
3847cooperative property, association property, common surplus, and
3848other assets of the association are free of all claims and liens
3849of the parties to the suit. In an interpleader action, the
3850trustee and prevailing party may recover reasonable attorney's
3851fees and costs.
3852     (c)  The proceeds from any sale of cooperative property or
3853association property and any remaining cooperative property or
3854association property, common surplus, and other assets shall be
3855distributed in the following priority:
3856     1.  To pay the reasonable termination trustee's fees and
3857costs and accounting fees and costs.
3858     2.  To lienholders of liens recorded prior to the recording
3859of the cooperative documents.
3860     3.  To purchase-money lienholders on units to the extent
3861necessary to satisfy their liens; however, the distribution may
3862not exceed a shareholder's share of the proceeds.
3863     4.  To creditors of the association, as their interests
3864appear.
3865     5.  To shareholders, the proceeds of any sale of
3866cooperative property subject to satisfaction of liens on each
3867unit in their order of priority, in shares specified in the plan
3868of termination, unless objected to by a shareholder or lienor as
3869provided in paragraph (b).
3870     6.  To shareholders, the remaining cooperative property,
3871subject to satisfaction of liens on each unit in their order of
3872priority, in shares specified in the plan of termination, unless
3873objected to by a shareholder or a lienor as provided in
3874paragraph (b).
3875     7.  To shareholders, the proceeds of any sale of
3876association property, the remaining association property, common
3877surplus, and other assets of the association, subject to
3878satisfaction of liens on each unit in their order of priority,
3879in shares specified in the plan of termination, unless objected
3880to by a shareholder or a lienor as provided in paragraph (b).
3881     (d)  After determining that all known debts and liabilities
3882of an association in the process of termination have been paid
3883or adequately provided for, the termination trustee shall
3884distribute the remaining assets pursuant to the plan of
3885termination. If the termination is by court proceeding or
3886subject to court supervision, the distribution may not be made
3887until any period for the presentation of claims ordered by the
3888court has elapsed.
3889     (e)  Assets held by an association upon a valid condition
3890requiring return, transfer, or conveyance, which condition has
3891occurred or will occur, shall be returned, transferred, or
3892conveyed in accordance with the condition. The remaining
3893association assets shall be distributed pursuant to paragraph
3894(c).
3895     (f)  Distribution may be made in money, property, or
3896securities and in installments or as a lump sum, if it can be
3897done fairly and ratably and in conformity with the plan of
3898termination. Distribution shall be made as soon as is reasonably
3899consistent with the beneficial liquidation of the assets.
3900     (18)  ASSOCIATION STATUS.--The termination of a cooperative
3901does not change the corporate status of the association that
3902operated the cooperative property. The association continues to
3903exist to conclude its affairs, prosecute and defend actions by
3904or against it, collect and discharge obligations, dispose of and
3905convey its property, and collect and divide its assets, but not
3906to act except as necessary to conclude its affairs.
3907     (19)  CREATION OF ANOTHER COOPERATIVE.--The termination of
3908a cooperative does not bar the creation by the termination
3909trustee of another cooperative affecting any portion of the same
3910property.
3911     Section 22.  Section 719.1224, Florida Statutes, is created
3912to read:
3913     719.1224  Prohibition against SLAPP suits.--
3914     (1)  It is the intent of the Legislature to protect the
3915right of cooperative shareholders to exercise their rights to
3916instruct their representatives and petition for redress of
3917grievances before the various governmental entities of this
3918state as protected by the First Amendment to the United States
3919Constitution and s. 5, Art. I of the State Constitution. The
3920Legislature recognizes that strategic lawsuits against public
3921participation, or "SLAPP suits," as they are typically referred
3922to, have occurred when association members are sued by
3923individuals, business entities, or governmental entities arising
3924out of a cooperative shareholder's appearance and presentation
3925before a governmental entity on matters related to the
3926cooperative association. However, it is the public policy of
3927this state that governmental entities, business organizations,
3928and individuals not engage in SLAPP suits because such actions
3929are inconsistent with the right of cooperative shareholders to
3930participate in the state's institutions of government.
3931Therefore, the Legislature finds and declares that prohibiting
3932such lawsuits by governmental entities, business entities, and
3933individuals against cooperative shareholders who address matters
3934concerning their cooperative association will preserve this
3935fundamental state policy, preserve the constitutional rights of
3936cooperative shareholders, and ensure the continuation of
3937representative government in this state. It is the intent of the
3938Legislature that such lawsuits be expeditiously disposed of by
3939the courts. As used in this subsection, the term "governmental
3940entity" means the state, including the executive, legislative,
3941and judicial branches of government; the independent
3942establishments of the state, counties, municipalities,
3943districts, authorities, boards, or commissions; or any agencies
3944of these branches that are subject to chapter 286.
3945     (2)  A governmental entity, business organization, or
3946individual in this state may not file or cause to be filed
3947through its employees or agents any lawsuit, cause of action,
3948claim, cross-claim, or counterclaim against a cooperative
3949shareholder without merit and solely because such cooperative
3950shareholder has exercised the right to instruct his or her
3951representatives or the right to petition for redress of
3952grievances before the various governmental entities of this
3953state, as protected by the First Amendment to the United States
3954Constitution and s. 5, Art. I of the State Constitution.
3955     (3)  A cooperative shareholder sued by a governmental
3956entity, business organization, or individual in violation of
3957this section has a right to an expeditious resolution of a claim
3958that the suit is in violation of this section. A cooperative
3959shareholder may petition the court for an order dismissing the
3960action or granting final judgment in favor of that cooperative
3961shareholder. The petitioner may file a motion for summary
3962judgment, together with supplemental affidavits, seeking a
3963determination that the governmental entity's, business
3964organization's, or individual's lawsuit has been brought in
3965violation of this section. The governmental entity, business
3966organization, or individual shall thereafter file its response
3967and any supplemental affidavits. As soon as practicable, the
3968court shall set a hearing on the petitioner's motion, which
3969shall be held at the earliest possible time after the filing of
3970the governmental entity's, business organization's, or
3971individual's response. The court may award the cooperative
3972shareholder sued by the governmental entity, business
3973organization, or individual actual damages arising from the
3974governmental entity's, individual's, or business organization's
3975violation of this section. A court may treble the damages
3976awarded to a prevailing cooperative shareholder and shall state
3977the basis for the treble damages award in its judgment. The
3978court shall award the prevailing party reasonable attorney's
3979fees and costs incurred in connection with a claim that an
3980action was filed in violation of this section.
3981     (4)  Cooperative associations may not expend association
3982funds in prosecuting a SLAPP suit against a cooperative
3983shareholder.
3984     Section 23.  Section 719.1255, Florida Statutes, is amended
3985to read:
3986     719.1255  Alternative resolution of disputes.--The Division
3987of Florida Condominiums, Timeshares, and Mobile Homes of the
3988Department of Business and Professional Regulation shall provide
3989for alternative dispute resolution of matters related to
3990cooperative associations and shareholders in a manner like that
3991provided to condominium associations and unit owners in
3992accordance with s. 718.1255.
3993     Section 24.  Section 719.1265, Florida Statutes, is created
3994to read:
3995     719.1265  Association emergency powers.--
3996     (1)  To the extent allowed by law and unless specifically
3997prohibited by the cooperative documents or the bylaws of an
3998association, and consistent with the provisions of s. 617.0830,
3999the board of directors, in response to damage caused by an event
4000for which a state of emergency is declared pursuant to s. 252.36
4001in the locale in which the cooperative is located, may, but is
4002not required to, exercise the following powers:
4003     (a)  Conduct board meetings and shareholder meetings with
4004notice given as is practicable. Such notice may be given in any
4005practicable manner, including publication, radio, United States
4006mail, the Internet, public service announcements, and
4007conspicuous posting on the cooperative property or any other
4008means the board deems reasonable under the circumstances. Notice
4009of board decisions may be communicated as provided in this
4010paragraph.
4011     (b)  Cancel and reschedule any association meeting.
4012     (c)  Name as assistant officers persons who are not
4013directors, which assistant officers shall have the same
4014authority as the executive officers to whom they are assistants
4015for during the state of emergency to accommodate the incapacity
4016or unavailability of any officer of the association.
4017     (d)  Relocate the association's principal office or
4018designate alternative principal offices.
4019     (e)  Enter into agreements with local counties and
4020municipalities to assist counties and municipalities with debris
4021removal.
4022     (f)  Implement a disaster plan before or immediately
4023following the event for which a state of emergency is declared
4024which may include, but is not limited to, shutting down or off
4025elevators; electricity; water, sewer, or security systems; or
4026air conditioners.
4027     (g)  Based upon advice of emergency management officials or
4028upon the advice of licensed professionals retained by the board,
4029determine any portion of the cooperative property unavailable
4030for entry or occupancy by shareholders, family members, tenants,
4031guests, agents, or invitees to protect the health, safety, or
4032welfare of such persons.
4033     (h)  Require the evacuation of the cooperative property in
4034the event of a mandatory evacuation order in the locale in which
4035the cooperative is located. Should any shareholder or other
4036occupant of a cooperative fail or refuse to evacuate the
4037cooperative property when the board has required evacuation, the
4038association shall be immune from liability or injury to persons
4039or property arising from such failure or refusal.
4040     (i)  Based upon advice of emergency management officials or
4041upon the advice of licensed professionals retained by the board,
4042determine whether the cooperative property can be safely
4043inhabited or occupied. However, such determination is not
4044conclusive as to any determination of habitability pursuant to
4045the declaration.
4046     (j)  Mitigate further damage, including taking action to
4047contract for the removal of debris and to prevent or mitigate
4048the spread of fungus, including, but not limited to, mold or
4049mildew, by removing and disposing of wet drywall, insulation,
4050carpet, cabinetry, or other fixtures on or within the
4051cooperative property, even if the shareholder is obligated by
4052the cooperative documents or law to insure or replace those
4053fixtures and to remove personal property from a unit.
4054     (k)  Contract, on behalf of any shareholder or
4055shareholders, for items or services for which the shareholder or
4056shareholders are otherwise individually responsible, but which
4057are necessary to prevent further damage to the cooperative
4058property. In such event, the shareholder or shareholders on
4059whose behalf the board has contracted are responsible for
4060reimbursing the association for the actual costs of the items or
4061services, and the association may use its lien authority
4062provided by s. 719.108 to enforce collection of the charges.
4063Without limitation, such items or services may include the
4064drying of units, the boarding of broken windows or doors, and
4065the replacement of damaged air conditioners or air handlers to
4066provide climate control in the units or other portions of the
4067property.
4068     (l)  Regardless of any provision to the contrary and even
4069if such authority does not specifically appear in the
4070cooperative documents or bylaws of the association, levy special
4071assessments without a vote of the shareholders.
4072     (m)  Without shareholders' approval, borrow money and
4073pledge association assets as collateral to fund emergency
4074repairs and carry out the duties of the association when
4075operating funds are insufficient. This paragraph does not limit
4076the general authority of the association to borrow money,
4077subject to such restrictions as are contained in the cooperative
4078documents or bylaws of the association.
4079     (2)  The special powers authorized under subsection (1)
4080shall be limited to the time reasonably necessary to protect the
4081health, safety, and welfare of the association and the
4082shareholders and the shareholders' family members, tenants,
4083guests, agents, or invitees and the time reasonably necessary to
4084mitigate further damage and make emergency repairs.
4085Additionally, unless 20 percent or more of the units are made
4086uninhabitable by the emergency, the special powers authorized
4087under subsection (1) shall only be exercised during the term of
4088the Governor's executive order or proclamation declaring the
4089state of emergency in the locale in which the condominium is
4090located.
4091     Section 25.  Subsections (1) and (4) of section 719.301,
4092Florida Statutes, are amended to read:
4093     719.301  Transfer of association control.--
4094     (1)  When shareholders unit owners other than the developer
4095own 15 percent or more of the units in a cooperative that will
4096be operated ultimately by an association, the shareholders unit
4097owners other than the developer shall be entitled to elect not
4098less than one-third of the members of the board of
4099administration of the association. Shareholders Unit owners
4100other than the developer are entitled to elect not less than a
4101majority of the members of the board of administration of an
4102association:
4103     (a)  Three years after 50 percent of the units that will be
4104operated ultimately by the association have been conveyed to
4105purchasers;
4106     (b)  Three months after 90 percent of the units that will
4107be operated ultimately by the association have been conveyed to
4108purchasers;
4109     (c)  When all the units that will be operated ultimately by
4110the association have been completed, some have been conveyed to
4111purchasers, and none of the others are being offered for sale by
4112the developer in the ordinary course of business;
4113     (d)  When some of the units have been conveyed to
4114purchasers and none of the others are being constructed or
4115offered for sale by the developer in the ordinary course of
4116business; or
4117     (e)  When the developer files a petition seeking protection
4118in bankruptcy;
4119     (f)  When a receiver for the developer is appointed by a
4120circuit court and is not discharged within 30 days after such
4121appointment; or
4122     (g)(e)  Seven years after creation of the cooperative
4123association,
4124
4125whichever occurs first. The developer is entitled to elect at
4126least one member of the board of administration of an
4127association as long as the developer holds for sale in the
4128ordinary course of business at least 5 percent in cooperatives
4129with fewer than 500 units and 2 percent in cooperatives with 500
4130or more units in a cooperative operated by the association.
4131After the developer relinquishes control of the association, the
4132developer may exercise the right to vote any developer-owned
4133units in the same manner as any other shareholder unit owner
4134except for purposes of reacquiring control of the association or
4135selecting the majority of the members of the board.
4136     (4)  When shareholders unit owners other than the developer
4137elect a majority of the members of the board of administration
4138of an association, the developer shall relinquish control of the
4139association, and the shareholders unit owners shall accept
4140control. Simultaneously, or for the purpose of paragraph (c) not
4141more than 90 days thereafter, the developer shall deliver to the
4142association, at the developer's expense, all property of the
4143shareholders unit owners and of the association held or
4144controlled by the developer, including, but not limited to, the
4145following items, if applicable, as to each cooperative operated
4146by the association:
4147     (a)1.  The original or a photocopy of the recorded
4148cooperative documents and all amendments thereto. If a photocopy
4149is provided, it shall be certified by affidavit of the
4150developer, or an officer or agent of the developer, as being a
4151complete copy of the actual recorded cooperative documents.
4152     2.  A certified copy of the association's articles of
4153incorporation, or if it is not incorporated, then copies of the
4154documents creating the association.
4155     3.  A copy of the bylaws.
4156     4.  The minute books, including all minutes, and other
4157books and records of the association, if any.
4158     5.  Any house rules and regulations which have been
4159promulgated.
4160     (b)  Resignations of officers and members of the board of
4161administration who are required to resign because the developer
4162is required to relinquish control of the association.
4163     (c)  The financial records, including financial statements
4164of the association, and source documents since the incorporation
4165of the association through the date of turnover. The records
4166shall be audited for the period of the incorporation of the
4167association or for the period covered by the last audit, if an
4168audit has been performed for each fiscal year since
4169incorporation, by an independent certified public accountant.
4170All financial statements shall be prepared in accordance with
4171generally accepted accounting standards and shall be audited in
4172accordance with generally accepted auditing standards as
4173prescribed by the Board of Accountancy. The accountant
4174performing the review shall examine to the extent necessary
4175supporting documents and records, including the cash
4176disbursements and related paid invoices to determine if
4177expenditures were for association purposes and the billings,
4178cash receipts, and related records to determine that the
4179developer was charged and paid the proper amounts of
4180assessments.
4181     (d)  Association funds or control thereof.
4182     (e)  All tangible personal property that is property of the
4183association, represented by the developer to be part of the
4184common areas or ostensibly part of the common areas, and an
4185inventory of that property.
4186     (f)  A copy of the plans and specifications utilized in the
4187construction or remodeling of improvements and the supplying of
4188equipment to the cooperative and in the construction and
4189installation of all mechanical components serving the
4190improvements and the site, with a certificate in affidavit form
4191of the developer, the developer's agent, or an architect or
4192engineer authorized to practice in this state that such plans
4193and specifications represent, to the best of their knowledge and
4194belief, the actual plans and specifications utilized in the
4195construction and improvement of the cooperative property and for
4196the construction and installation of the mechanical components
4197serving the improvements. If the cooperative property has been
4198organized as a cooperative more than 3 years after the
4199completion of construction or remodeling of the improvements,
4200the requirements of this paragraph shall not apply.
4201     (g)  A list of the names and addresses, of which the
4202developer had knowledge at any time in the development of the
4203cooperative, of all contractors, subcontractors, and suppliers
4204utilized in the construction or remodeling of the improvements
4205and in the landscaping.
4206     (h)  Insurance policies.
4207     (i)  Copies of any certificates of occupancy which may have
4208been issued for the cooperative property.
4209     (j)  Any other permits issued by governmental bodies
4210applicable to the cooperative property in force or issued within
42111 year prior to the date the shareholders unit owners other than
4212the developer take control of the association.
4213     (k)  All written warranties of the contractor,
4214subcontractors, suppliers, and manufacturers, if any, that are
4215still effective.
4216     (l)  A roster of shareholders unit owners and their
4217addresses and telephone numbers, if known, as shown on the
4218developer's records.
4219     (m)  Leases of the common areas and other leases to which
4220the association is a party.
4221     (n)  Employment contracts or service contracts in which the
4222association is one of the contracting parties or service
4223contracts in which the association or the shareholders unit
4224owners have an obligation or responsibility, directly or
4225indirectly, to pay some or all of the fee or charge of the
4226person or persons performing the service.
4227     (o)  All other contracts to which the association is a
4228party.
4229     (p)  A turnover inspection report included in the official
4230records, under seal of an architect or engineer authorized to
4231practice in this state, attesting to required maintenance,
4232useful life, and replacement costs of the following applicable
4233common areas:
4234     1.  Roof.
4235     2.  Structure.
4236     3.  Fireproofing and fire protection systems.
4237     4.  Elevators.
4238     5.  Heating and cooling systems.
4239     6.  Plumbing.
4240     7.  Electrical systems.
4241     8.  Swimming pool or spa and equipment.
4242     9.  Seawalls.
4243     10.  Pavement and parking areas.
4244     11.  Drainage systems.
4245     12.  Painting.
4246     13.  Irrigation systems.
4247     Section 26.  Section 719.3025, Florida Statutes, is created
4248to read:
4249     719.3025  Agreements for operation, maintenance, or
4250management of cooperatives; specific requirements.--
4251     (1)  No written contract between a party contracting to
4252provide maintenance or management services and an association
4253which contract provides for operation, maintenance, or
4254management of a cooperative association or property serving the
4255shareholders of a cooperative shall be valid or enforceable
4256unless the contract:
4257     (a)  Specifies the services, obligations, and
4258responsibilities of the party contracting to provide maintenance
4259or management services to the shareholders.
4260     (b)  Specifies those costs incurred in the performance of
4261those services, obligations, or responsibilities which are to be
4262reimbursed by the association to the party contracting to
4263provide maintenance or management services.
4264     (c)  Provides an indication of how often each service,
4265obligation, or responsibility is to be performed, whether stated
4266for each service, obligation, or responsibility or in categories
4267thereof.
4268     (d)  Specifies a minimum number of personnel to be employed
4269by the party contracting to provide maintenance or management
4270services for the purpose of providing service to the
4271association.
4272     (e)  Discloses any financial or ownership interest which
4273the developer, if the developer is in control of the
4274association, holds with regard to the party contracting to
4275provide maintenance or management services.
4276     (f)  Discloses any financial or ownership interest a board
4277member or any party providing maintenance or management services
4278to the association holds with the contracting party.
4279     (2)  In any case in which the party contracting to provide
4280maintenance or management services fails to provide such
4281services in accordance with the contract, the association is
4282authorized to procure such services from some other party and
4283shall be entitled to collect any fees or charges paid for
4284services performed by another party from the party contracting
4285to provide maintenance or management services.
4286     (3)  Any services or obligations not stated on the face of
4287the contract shall be unenforceable.
4288     (4)  Notwithstanding the fact that certain vendors contract
4289with associations to maintain equipment or property which is
4290made available to serve shareholders, it is the intent of the
4291Legislature that this section applies to contracts for
4292maintenance or management services for which the association
4293pays compensation. This section does not apply to contracts for
4294services or property made available for the convenience of
4295shareholders by lessees or licensees of the association, such as
4296coin-operated laundry, food, soft drink, or telephone vendors;
4297cable television operators; retail store operators; businesses;
4298restaurants; or similar vendors.
4299     Section 27.  Section 719.3026, Florida Statutes, is amended
4300to read:
4301     719.3026  Contracts for products and services; in writing;
4302bids; exceptions.--Associations with 10 or fewer less than 100
4303units may opt out of the provisions of this section if two-
4304thirds of the shareholders unit owners vote to do so, which opt-
4305out may be accomplished by a proxy specifically setting forth
4306the exception from this section.
4307     (1)  All contracts as further described herein or any
4308contract that is not to be fully performed within 1 year after
4309the making thereof, for the purchase, lease, or renting of
4310materials or equipment to be used by the association in
4311accomplishing its purposes under this chapter, and all contracts
4312for the provision of services, shall be in writing. If a
4313contract for the purchase, lease, or renting of materials or
4314equipment, or for the provision of services, requires payment by
4315the association in an amount which in the aggregate exceeds 5
4316percent of the association's budget, including reserves, the
4317association shall obtain competitive bids for the materials,
4318equipment, or services. Nothing contained herein shall be
4319construed to require the association to accept the lowest bid.
4320     (2)(a)1.  Notwithstanding the foregoing, contracts with
4321employees of the association, and contracts for attorney,
4322accountant, architect, community association manager, timeshare
4323management firm, engineering, and landscape architect services
4324shall not be subject to the provisions of this section.
4325     2.  A contract executed before January 1, 1992, and any
4326renewal thereof, is not subject to the competitive bid
4327requirements of this section. If a contract was awarded under
4328the competitive bid procedures of this section, any renewal of
4329that contract is not subject to such competitive bid
4330requirements if the contract contains a provision that allows
4331the board to cancel the contract on 30 days' notice. Materials,
4332equipment, or services provided to a cooperative pursuant to a
4333local government franchise agreement by a franchise holder are
4334not subject to the competitive bid requirement. A contract with
4335a manager, if made by a competitive bid, may be made for up to 3
4336years. A condominium whose declaration or bylaws provides for
4337competitive bidding for services may operate under the
4338provisions of that declaration or bylaws in lieu of this section
4339if those provisions are not less stringent than the requirements
4340of this section.
4341     (b)  This section does not limit the ability of an
4342association to obtain needed products and services in an
4343emergency.
4344     (c)  This section does not apply if the business entity
4345with which the association desires to enter into a contract is
4346the only source of supply within the county serving the
4347association.
4348     (d)  Nothing contained in this subsection shall excuse a
4349party contracting to provide maintenance or management services
4350from compliance with s. 719.3025.
4351     (3)  As to any contract or other transaction between an
4352association and one or more of its directors or any other
4353corporation, firm, association, or entity in which one or more
4354of its directors are directors or officers or are financially
4355interested:
4356     (a)  The association shall comply with the requirements of
4357s. 617.0832.
4358     (b)  The disclosures required by s. 617.0832 shall be
4359entered into the written minutes of the meeting.
4360     (c)  Approval of the contract or other transaction shall
4361require an affirmative vote of two-thirds of the directors
4362present.
4363     (d)  At the next regular or special meeting of the
4364shareholders, the existence of the contract or other transaction
4365shall be disclosed to the shareholders. Upon motion of any
4366shareholder, the contract or transaction shall be brought up for
4367a vote and may be canceled by a majority vote of the
4368shareholders present. Should the shareholders cancel the
4369contract, the association shall only be liable for the
4370reasonable value of goods and services provided up to the time
4371of cancellation and shall not be liable for any termination fee,
4372liquidated damages, or other form of penalty for such
4373cancellation.
4374     Section 28.  Section 719.303, Florida Statutes, is amended
4375to read:
4376     719.303  Obligations of shareholders owners.--
4377     (1)  Each shareholder unit owner, each tenant and other
4378invitee, and each association shall be governed by, and shall
4379comply with the provisions of, this chapter, the cooperative
4380documents, the documents creating the association, and the
4381association bylaws, and the provisions thereof shall be deemed
4382expressly incorporated into any lease of a unit. Actions for
4383damages or for injunctive relief, or both, for failure to comply
4384with these provisions may be brought by the association or by a
4385shareholder unit owner against:
4386     (a)  The association.
4387     (b)  A shareholder unit owner.
4388     (c)  Directors designated by the developer, for actions
4389taken by them prior to the time control of the association is
4390assumed by shareholders unit owners other than the developer.
4391     (d)  Any director who willfully and knowingly fails to
4392comply with these provisions.
4393     (e)  Any tenant leasing a unit, and any other invitee
4394occupying a unit.
4395
4396The prevailing party in any such action or in any action in
4397which the purchaser claims a right of voidability based upon
4398contractual provisions as required in s. 719.503(1)(a) is
4399entitled to recover reasonable attorney's fees. A shareholder
4400unit owner prevailing in an action between the association and
4401the shareholder unit owner under this section, in addition to
4402recovering his or her reasonable attorney's fees, may recover
4403additional amounts as determined by the court to be necessary to
4404reimburse the shareholder unit owner for his or her share of
4405assessments levied by the association to fund its expenses of
4406the litigation. This relief does not exclude other remedies
4407provided by law. Actions arising under this subsection shall not
4408be deemed to be actions for specific performance.
4409     (2)  A provision of this chapter may not be waived if the
4410waiver would adversely affect the rights of a shareholder unit
4411owner or the purpose of the provision, except that shareholders
4412unit owners or members of a board of administration may waive
4413notice of specific meetings in writing if provided by the
4414bylaws. Any instrument given in writing by the shareholder unit
4415owner or purchaser to an escrow agent may be relied upon by an
4416escrow agent, whether or not such instruction and the payment of
4417funds thereunder might constitute a waiver of any provision of
4418this chapter.
4419     (3)  If the cooperative documents so provide, the
4420association may levy reasonable fines against a shareholder unit
4421owner for failure of the shareholder unit owner or his or her
4422licensee or invitee or the unit's occupant to comply with any
4423provision of the cooperative documents or reasonable rules of
4424the association. No fine shall become a lien against a unit. No
4425fine shall exceed $100 per violation. However, a fine may be
4426levied on the basis of each day of a continuing violation, with
4427a single notice and opportunity for hearing, provided that no
4428such fine shall in the aggregate exceed $1,000. No fine may be
4429levied except after giving reasonable notice and opportunity for
4430a hearing to the shareholder unit owner and, if applicable, his
4431or her licensee or invitee. The hearing shall be held before a
4432committee of other shareholders who are neither board members
4433nor persons residing in a board member's household unit owners.
4434If the committee does not agree with the fine, it shall not be
4435levied. This subsection does not apply to unoccupied units.
4436     Section 29.  Section 719.501, Florida Statutes, is amended
4437to read:
4438     719.501  Authority, responsibilities, Powers and duties of
4439Division of Florida Condominiums, Timeshares, and Mobile
4440Homes.--
4441     (1)  The Division of Florida Condominiums, Timeshares, and
4442Mobile Homes of the Department of Business and Professional
4443Regulation, referred to as the "division" in this part, in
4444addition to other powers and duties prescribed by chapter 718,
4445has the power to enforce and ensure compliance with this chapter
4446and adopted rules relating to the development, construction,
4447sale, lease, ownership, operation, and management of residential
4448cooperative units. In performing its duties, the division has
4449complete jurisdiction to investigate complaints and enforce
4450compliance with the provisions of this chapter. shall have the
4451following powers and duties:
4452     (a)  The division may make necessary public or private
4453investigations within or outside this state to determine whether
4454any person has violated this chapter or any rule or order
4455hereunder, to aid in the enforcement of this chapter, or to aid
4456in the adoption of rules or forms hereunder.
4457     (b)  The division may require or permit any person to file
4458a statement in writing, under oath or otherwise, as the division
4459determines, as to the facts and circumstances concerning a
4460matter to be investigated.
4461     (c)  For the purpose of any investigation under this
4462chapter, the division director or any officer or employee
4463designated by the division director may administer oaths or
4464affirmations, subpoena witnesses and compel their attendance,
4465take evidence, and require the production of any matter which is
4466relevant to the investigation, including the existence,
4467description, nature, custody, condition, and location of any
4468books, documents, or other tangible things and the identity and
4469location of persons having knowledge of relevant facts or any
4470other matter reasonably calculated to lead to the discovery of
4471material evidence. Upon failure by a person to obey a subpoena
4472or to answer questions propounded by the investigating officer
4473and upon reasonable notice to all persons affected thereby, the
4474division may apply to the circuit court for an order compelling
4475compliance.
4476     (d)  Notwithstanding any remedies available to shareholders
4477unit owners and associations, if the division has reasonable
4478cause to believe that a violation of any provision of this
4479chapter or related rule has occurred, the division may institute
4480enforcement proceedings in its own name against a developer,
4481association, officer, or member of the board, or its assignees
4482or agents, as follows:
4483     1.  The division may permit a person whose conduct or
4484actions may be under investigation to waive formal proceedings
4485and enter into a consent proceeding whereby orders, rules, or
4486letters of censure or warning, whether formal or informal, may
4487be entered against the person.
4488     2.  The division may issue an order requiring the
4489developer, association, officer, or member of the board, or its
4490assignees or agents, or any community association manager or
4491community association management firm to cease and desist from
4492the unlawful practice and take such affirmative action as in the
4493judgment of the division will carry out the purposes of this
4494chapter. If the division finds that a developer, association,
4495officer, or member of the board of directors, or its assignees
4496or agents, or any community association manager or community
4497association management firm is violating or is about to violate
4498any provision of this chapter, any rule adopted or order issued
4499by the division, or any written agreement entered into with the
4500division, and presents an immediate danger to the public
4501requiring an immediate final order, it may issue an emergency
4502cease and desist order reciting with particularity the facts
4503underlying such findings. The emergency cease and desist order
4504is effective for 90 days. If the division begins nonemergency
4505cease and desist proceedings, the emergency cease and desist
4506order remains effective until the conclusion of the proceedings
4507under ss. 120.569 and 120.57. Such affirmative action may
4508include, but is not limited to, an order requiring a developer
4509to pay moneys determined to be owed to a condominium
4510association.
4511     3.  If a developer fails to pay any restitution determined
4512by the division to be owed, plus any accrued interest at the
4513highest rate permitted by law, within 30 days after expiration
4514of any appellate time period of a final order requiring payment
4515of restitution or the conclusion of any appeal thereof,
4516whichever is later, the division shall bring an action in
4517circuit or county court on behalf of any association, class of
4518shareholders, lessees, or purchasers for restitution,
4519declaratory relief, injunctive relief, or any other available
4520remedy. The division may also temporarily revoke its acceptance
4521of the filing for the developer to which the restitution relates
4522until payment of restitution is made. The division may bring an
4523action in circuit court on behalf of a class of unit owners,
4524lessees, or purchasers for declaratory relief, injunctive
4525relief, or restitution.
4526     4.  The division may petition the court for the appointment
4527of a receiver or conservator. If appointed, the receiver or
4528conservator may take action to implement the court order to
4529ensure the performance of the order and to remedy any breach
4530thereof. In addition to all other means provided by law for the
4531enforcement of an injunction or temporary restraining order, the
4532circuit court may impound or sequester the property of a party
4533defendant, including books, papers, documents, and related
4534records, and allow the examination and use of the property by
4535the division and a court-appointed receiver or conservator.
4536     5.  The division may apply to the circuit court for an
4537order of restitution in which the defendant in an action brought
4538pursuant to subparagraph 4. shall be ordered to make restitution
4539of those sums shown by the division to have been obtained by the
4540defendant in violation of this chapter. Such restitution shall,
4541at the option of the court, be payable to the conservator or
4542receiver appointed pursuant to subparagraph 4. or directly to
4543the persons whose funds or assets were obtained in violation of
4544this chapter.
4545     6.4.  The division may impose a civil penalty against a
4546developer or association, or its assignees or agents, for any
4547violation of this chapter or related rule adopted under this
4548chapter. The division may impose a civil penalty individually
4549against any officer or board member who willfully and knowingly
4550violates a provision of this chapter, a rule adopted pursuant to
4551this chapter, or a final order of the division; may order the
4552removal of such individual as an officer or from the board of
4553directors or as an officer of the association; and may prohibit
4554such individual from serving as an officer or on the board of a
4555community association for a stated period of time. The term
4556"willfully and knowingly" means that the division informed the
4557officer or board member that his or her action or intended
4558action violates this chapter, a rule adopted under this chapter,
4559or a final order of the division, and that the officer or board
4560member refused to comply with the requirements of this chapter,
4561a rule adopted under this chapter, or a final order of the
4562division. The division, prior to initiating formal agency action
4563under chapter 120, shall afford the officer or board member an
4564opportunity to voluntarily comply with this chapter, a rule
4565adopted under this chapter, or a final order of the division. An
4566officer or board member who complies within 10 days is not
4567subject to a civil penalty. A penalty may be imposed on the
4568basis of each day of continuing violation, but in no event shall
4569the penalty for any offense exceed $5,000. By January 1, 1998,
4570the division shall adopt, by rule, penalty guidelines applicable
4571to possible violations or to categories of violations of this
4572chapter or rules adopted by the division. The guidelines must
4573specify a meaningful range of civil penalties for each such
4574violation of the statute and rules and must be based upon the
4575harm caused by the violation, the repetition of the violation,
4576and upon such other factors deemed relevant by the division. For
4577example, the division may consider whether the violations were
4578committed by a developer or shareholder-controlled owner-
4579controlled association, the size of the association, and other
4580factors. The guidelines must designate the possible mitigating
4581or aggravating circumstances that justify a departure from the
4582range of penalties provided by the rules. It is the legislative
4583intent that minor violations be distinguished from those which
4584endanger the health, safety, or welfare of the cooperative
4585residents or other persons and that such guidelines provide
4586reasonable and meaningful notice to the public of likely
4587penalties that may be imposed for proscribed conduct. This
4588subsection does not limit the ability of the division to
4589informally dispose of administrative actions or complaints by
4590stipulation, agreed settlement, or consent order. All amounts
4591collected shall be deposited with the Chief Financial Officer to
4592the credit of the Division of Florida Condominiums, Timeshares,
4593and Mobile Homes Trust Fund. If a developer fails to pay the
4594civil penalty and the amount deemed to be owed to the
4595association, the division shall thereupon issue an order
4596directing that such developer cease and desist from further
4597operation until such time as the civil penalty is paid or may
4598pursue enforcement of the penalty in a court of competent
4599jurisdiction. If an association fails to pay the civil penalty,
4600the division shall thereupon pursue enforcement in a court of
4601competent jurisdiction, and the order imposing the civil penalty
4602or the cease and desist order shall not become effective until
460320 days after the date of such order. Any action commenced by
4604the division shall be brought in the county in which the
4605division has its executive offices or in the county where the
4606violation occurred.
4607     7.  If a shareholder presents the division with proof that
4608the shareholder has requested access to official records in
4609writing by certified mail, and that after 10 days the
4610shareholder again made the same request for access to official
4611records in writing by certified mail, and that more than 10 days
4612has elapsed since the second request and the association has
4613still failed or refused to provide access to official records as
4614required by this chapter, the division shall issue a subpoena
4615requiring production of the requested records where the records
4616are kept pursuant to s. 719.104.
4617     8.  In addition to subparagraph 6., the division may seek
4618the imposition of a civil penalty through the circuit court for
4619any violation for which the division may issue a notice to show
4620cause under paragraph (r). The civil penalty shall be at least
4621$500 but no more than $5,000 for each violation. The court may
4622also award to the prevailing party court costs and reasonable
4623attorney's fees and, if the division prevails, may also award
4624reasonable costs of investigation.
4625     9.  When the division finds that any person has derived an
4626improper personal benefit from a cooperative association, the
4627division shall order the person to pay restitution to the
4628association and shall order the person to pay to the division
4629the costs of investigation and prosecution.
4630     (e)  The division may prepare and disseminate a prospectus
4631and other information to assist prospective shareholders owners,
4632purchasers, lessees, and developers of residential cooperatives
4633in assessing the rights, privileges, and duties pertaining
4634thereto.
4635     (f)  The division has authority to adopt rules pursuant to
4636ss. 120.536(1) and 120.54 to implement and enforce the
4637provisions of this chapter.
4638     (g)  The division shall establish procedures for providing
4639notice to an association and the developer during the period
4640when the developer controls the association when the division is
4641considering the issuance of a declaratory statement with respect
4642to the cooperative documents governing such cooperative
4643community.
4644     (h)  The division shall furnish each association which pays
4645the fees required by paragraph (2)(a) a copy of this chapter
4646act, subsequent changes to this act on an annual basis, as an
4647amended version of this act as it becomes available from the
4648Secretary of State's office on a biennial basis, and the rules
4649adopted thereto on an annual basis.
4650     (i)  The division shall annually provide each association
4651with a summary of declaratory statements and formal legal
4652opinions relating to the operations of cooperatives which were
4653rendered by the division during the previous year.
4654     (j)  The division shall adopt uniform accounting
4655principles, policies, and standards to be used by all
4656associations in the preparation and presentation of all
4657financial statements required by this chapter. The principles,
4658policies, and standards shall take into consideration the size
4659of the association and the total revenue collected by the
4660association.
4661     (j)(k)  The division shall provide training and educational
4662programs for cooperative association board members and
4663shareholders unit owners. The training may, in the division's
4664discretion, include web-based electronic media and live training
4665and seminars in various locations throughout the state. The
4666division shall have the authority to review and approve
4667educational and training programs for board members and
4668shareholders offered by providers and shall maintain a current
4669list of approved programs and providers and shall make such list
4670available to board members and shareholders in a reasonable and
4671cost-effective manner.
4672     (k)(l)  The division shall maintain a toll-free telephone
4673number accessible to cooperative shareholders unit owners.
4674     (l)  The division shall develop a program to certify both
4675volunteer and paid mediators to provide mediation of cooperative
4676disputes. The division shall provide, upon request, a list of
4677such mediators to any association, shareholder, or other
4678participant in arbitration proceedings under s. 719.1255
4679requesting a copy of the list. The division shall include on the
4680list of volunteer mediators only the names of persons who have
4681received at least 20 hours of training in mediation techniques
4682or who have mediated at least 20 disputes. In order to become
4683initially certified by the division, paid mediators must be
4684certified by the Supreme Court to mediate court cases in county
4685or circuit courts. However, the division may adopt, by rule,
4686additional factors for the certification of paid mediators,
4687which factors must be related to experience, education, or
4688background. Any person initially certified as a paid mediator by
4689the division must, in order to continue to be certified, comply
4690with the factors or requirements imposed by rules adopted by the
4691division.
4692     (m)  When a complaint is made to the division, the division
4693shall conduct its inquiry with reasonable dispatch and with due
4694regard to the interests of the affected parties. Within 30 days
4695after receipt of a complaint, the division shall acknowledge the
4696complaint in writing and notify the complainant whether the
4697complaint is within the jurisdiction of the division and whether
4698additional information is needed by the division from the
4699complainant. The division shall conduct its investigation and
4700shall, within 90 days after receipt of the original complaint or
4701timely requested additional information, take action upon the
4702complaint. However, the failure to complete the investigation
4703within 90 days does not prevent the division from continuing the
4704investigation, accepting or considering evidence obtained or
4705received after 90 days, or taking administrative action if
4706reasonable cause exists to believe that a violation of this
4707chapter or a rule of the division has occurred. If an
4708investigation is not completed within the time limits
4709established in this paragraph, the division shall, on a monthly
4710basis, notify the complainant in writing of the status of the
4711investigation. When reporting its action to the complainant, the
4712division shall inform the complainant of any right to a hearing
4713pursuant to ss. 120.569 and 120.57.
4714     (n)  Cooperative association directors, officers, and
4715employees; cooperative developers; community association
4716managers; and community association management firms have an
4717ongoing duty to reasonably cooperate with the division in any
4718investigation pursuant to this section. The division shall refer
4719to local law enforcement authorities any person whom the
4720division believes has altered, destroyed, concealed, or removed
4721any record, document, or thing required to be kept or maintained
4722by this chapter with the purpose to impair its verity or
4723availability in the department's investigation.
4724     (o)  The division may:
4725     1.  Contract with agencies in this state or other
4726jurisdictions to perform investigative functions; or
4727     2.  Accept grants-in-aid from any source.
4728     (p)  The division shall cooperate with similar agencies in
4729other jurisdictions to establish uniform filing procedures and
4730forms, public offering statements, advertising standards, and
4731rules and common administrative practices.
4732     (q)  The division shall consider notice to a developer to
4733be complete when it is delivered to the developer's address
4734currently on file with the division.
4735     (r)  In addition to its enforcement authority, the division
4736may issue a notice to show cause, which shall provide for a
4737hearing, upon written request, in accordance with chapter 120.
4738     (s)  In the reports required by s. 718.501(1)(s), the
4739division shall also report the same information for cooperative
4740associations. The division may combine figures and issues into
4741one report covering both condominiums and cooperatives. The
4742division shall develop a program to certify both volunteer and
4743paid mediators to provide mediation of cooperative disputes. The
4744division shall provide, upon request, a list of such mediators
4745to any association, unit owner, or other participant in
4746arbitration proceedings under s. 718.1255 requesting a copy of
4747the list. The division shall include on the list of voluntary
4748mediators only persons who have received at least 20 hours of
4749training in mediation techniques or have mediated at least 20
4750disputes. In order to become initially certified by the
4751division, paid mediators must be certified by the Supreme Court
4752to mediate court cases in county or circuit courts. However, the
4753division may adopt, by rule, additional factors for the
4754certification of paid mediators, which factors must be related
4755to experience, education, or background. Any person initially
4756certified as a paid mediator by the division must, in order to
4757continue to be certified, comply with the factors or
4758requirements imposed by rules adopted by the division.
4759     (2)(a)  Each cooperative association shall pay to the
4760division, on or before January 1 of each year, an annual fee in
4761the amount of $4 for each residential unit in cooperatives
4762operated by the association. If the fee is not paid by March 1,
4763then the association shall be assessed a penalty of 10 percent
4764of the amount due, and the association shall not have the
4765standing to maintain or defend any action in the courts of this
4766state until the amount due, plus any penalty, is paid.
4767     (b)  All fees shall be deposited in the Division of Florida
4768Condominiums, Timeshares, and Mobile Homes Trust Fund as
4769provided by law.
4770     Section 30.  Section 719.5011, Florida Statutes, is created
4771to read:
4772     719.5011  Ombudsman.--The Office of the Condominium
4773Ombudsman, created in s. 718.5011, shall assist cooperative
4774associations and cooperative shareholders and have the powers
4775and duties related to cooperative associations and cooperative
4776shareholders as if such associations and shareholders were
4777condominium associations and condominium shareholders.
4778     Section 31.  Paragraph (b) of subsection (1) and paragraph
4779(a) of subsection (2) of section 719.503, Florida Statutes, are
4780amended to read:
4781     719.503  Disclosure prior to sale.--
4782     (1)  DEVELOPER DISCLOSURE.--
4783     (b)  Copies of documents to be furnished to prospective
4784buyer or lessee.--Until such time as the developer has furnished
4785the documents listed below to a person who has entered into a
4786contract to purchase a unit or lease it for more than 5 years,
4787the contract may be voided by that person, entitling the person
4788to a refund of any deposit together with interest thereon as
4789provided in s. 719.202. The contract may be terminated by
4790written notice from the proposed buyer or lessee delivered to
4791the developer within 15 days after the buyer or lessee receives
4792all of the documents required by this section. The developer
4793shall not close for 15 days following the execution of the
4794agreement and delivery of the documents to the buyer as
4795evidenced by a receipt for documents signed by the buyer unless
4796the buyer is informed in the 15-day voidability period and
4797agrees to close prior to the expiration of the 15 days. The
4798developer shall retain in his or her records a separate signed
4799agreement as proof of the buyer's agreement to close prior to
4800the expiration of said voidability period. Said proof shall be
4801retained for a period of 5 years after the date of the closing
4802transaction. The documents to be delivered to the prospective
4803buyer are the prospectus or disclosure statement with all
4804exhibits, if the development is subject to the provisions of s.
4805719.504, or, if not, then copies of the following which are
4806applicable:
4807     1.  The question and answer sheet described in s. 719.504,
4808and cooperative documents, or the proposed cooperative documents
4809if the documents have not been recorded, which shall include the
4810certificate of a surveyor approximately representing the
4811locations required by s. 719.104.
4812     2.  The documents creating the association.
4813     3.  The bylaws.
4814     4.  The ground lease or other underlying lease of the
4815cooperative.
4816     5.  The management contract, maintenance contract, and
4817other contracts for management of the association and operation
4818of the cooperative and facilities used by the shareholders unit
4819owners having a service term in excess of 1 year, and any
4820management contracts that are renewable.
4821     6.  The estimated operating budget for the cooperative and
4822a schedule of expenses for each type of unit, including fees
4823assessed to a shareholder who has exclusive use of limited
4824common areas, where such costs are shared only by those entitled
4825to use such limited common areas.
4826     7.  The lease of recreational and other facilities that
4827will be used only by shareholders unit owners of the subject
4828cooperative.
4829     8.  The lease of recreational and other common areas that
4830will be used by shareholders unit owners in common with
4831shareholders unit owners of other cooperatives.
4832     9.  The form of unit lease if the offer is of a leasehold.
4833     10.  Any declaration of servitude of properties serving the
4834cooperative but not owned by shareholders unit owners or leased
4835to them or the association.
4836     11.  If the development is to be built in phases or if the
4837association is to manage more than one cooperative, a
4838description of the plan of phase development or the arrangements
4839for the association to manage two or more cooperatives.
4840     12.  If the cooperative is a conversion of existing
4841improvements, the statements and disclosure required by s.
4842719.616.
4843     13.  The form of agreement for sale or lease of units.
4844     14.  A copy of the floor plan of the unit and the plot plan
4845showing the location of the residential buildings and the
4846recreation and other common areas.
4847     15.  A copy of all covenants and restrictions which will
4848affect the use of the property and which are not contained in
4849the foregoing.
4850     16.  If the developer is required by state or local
4851authorities to obtain acceptance or approval of any dock or
4852marina facilities intended to serve the cooperative, a copy of
4853any such acceptance or approval acquired by the time of filing
4854with the division pursuant to s. 719.502(1) or a statement that
4855such acceptance or approval has not been acquired or received.
4856     17.  Evidence demonstrating that the developer has an
4857ownership, leasehold, or contractual interest in the land upon
4858which the cooperative is to be developed.
4859     (2)  NONDEVELOPER DISCLOSURE.--
4860     (a)  Each shareholder unit owner who is not a developer as
4861defined by this chapter must comply with the provisions of this
4862subsection prior to the sale of his or her interest in the
4863association. Each prospective purchaser who has entered into a
4864contract for the purchase of an interest in a cooperative is
4865entitled, at the seller's expense, to a current copy of the
4866articles of incorporation of the association, the bylaws, and
4867rules of the association, as well as a copy of the question and
4868answer sheet as provided in s. 719.504. On and after July 1,
48692009, the prospective purchaser shall also be entitled to
4870receive from the seller a copy of a governance form. Such form
4871shall be provided by the division summarizing governance of
4872cooperative associations. In addition to such other information
4873as the division considers helpful to a prospective purchaser in
4874understanding association governance, the governance form shall
4875address the following subjects:
4876     1.  The role of the board in conducting the day-to-day
4877affairs of the association on behalf of, and in the best
4878interests of, the shareholders.
4879     2.  The board's responsibility to provide advance notice of
4880board and shareholder meetings.
4881     3.  The rights of shareholders to attend and speak at board
4882and shareholder meetings.
4883     4.  The responsibility of the board and shareholders with
4884respect to maintenance of the cooperative property.
4885     5.  The responsibility of the board and shareholders to
4886abide by the cooperative documents, this chapter, rules adopted
4887by the division, and reasonable rules adopted by the board.
4888     6.  Shareholders' rights to inspect and copy association
4889records and the limitations on such rights.
4890     7.  Remedies available to shareholders with respect to
4891actions by the board which may be abusive or beyond the board's
4892power and authority.
4893     8.  The right of the board to hire a property management
4894firm, subject to its own primary responsibility for such
4895management.
4896     9.  The responsibility of shareholders with regard to
4897payment of regular or special assessments necessary for the
4898operation of the property and the potential consequences of
4899failure to pay such assessments.
4900     10.  The voting rights of shareholders.
4901     11.  Rights and obligations of the board in enforcement of
4902rules in the cooperative documents and rules adopted by the
4903board.
4904
4905The governance form shall also include the following statement
4906in conspicuous type: "This publication is intended as an
4907informal educational overview of cooperative governance. In the
4908event of a conflict, the provisions of chapter 719, Florida
4909Statutes, rules adopted by the Division of Florida Condominiums,
4910Timeshares, and Mobile Homes of the Department of Business and
4911Professional Regulation, the provisions of the cooperative
4912documents, and reasonable rules adopted by the cooperative
4913association's board of directors prevail over the contents of
4914this publication."
4915     Section 32.  Subsections (1) and (2) of section 720.3085,
4916Florida Statutes, are amended to read:
4917     720.3085  Payment for assessments; lien claims.--
4918     (1)  When authorized by the governing documents, the
4919association has a lien on each parcel to secure the payment of
4920assessments and other amounts provided for by this section.
4921Except as otherwise set forth in this section, the lien is
4922effective from and shall relate back to the date on which the
4923original declaration of the community was recorded. However, as
4924to first mortgages of record, the lien is effective from and
4925after recording of a claim of lien in the public records of the
4926county in which the parcel is located. This subsection does not
4927bestow upon any lien, mortgage, or certified judgment of record
4928on July 1, 2008, including the lien for unpaid assessments
4929created in this section, a priority that, by law, the lien,
4930mortgage, or judgment did not have before July 1, 2008.
4931     (a)  To be valid, a claim of lien must state the
4932description of the parcel, the name of the record owner, the
4933name and address of the association, the assessment amount due,
4934and the due date. The claim of lien shall secure all unpaid
4935assessments that are due and that may accrue subsequent to the
4936recording of the claim of lien and before entry of a certificate
4937of title, as well as interest, late charges, and reasonable
4938costs and attorney's fees incurred by the association incident
4939to the collection process. The person making the payment is
4940entitled to a satisfaction of the lien upon payment in full.
4941     (b)  By recording a notice in substantially the following
4942form, a parcel owner or the parcel owner's agent or attorney may
4943require the association to enforce a recorded claim of lien
4944against his or her parcel:
4945
4946
NOTICE OF CONTEST OF LIEN
4947
4948TO:   (Name and address of association)  
4949
4950You are notified that the undersigned contests the claim of lien
4951filed by you on _____,   (year)  , and recorded in Official
4952Records Book _____ at page _____, of the public records of _____
4953County, Florida, and that the time within which you may file
4954suit to enforce your lien is limited to 90 days following the
4955date of service of this notice. Executed this _____ day of
4956_____,   (year)  .
4957
4958Signed:   (Owner or Attorney)  
4959
4960After the notice of a contest of lien has been recorded, the
4961clerk of the circuit court shall mail a copy of the recorded
4962notice to the association by certified mail, return receipt
4963requested, at the address shown in the claim of lien or the most
4964recent amendment to it and shall certify to the service on the
4965face of the notice. Service is complete upon mailing. After
4966service, the association has 90 days in which to file an action
4967to enforce the lien and, if the action is not filed within the
496890-day period, the lien is void. However, the 90-day period
4969shall be extended for any length of time that the association is
4970prevented from filing its action because of an automatic stay
4971resulting from the filing of a bankruptcy petition by the parcel
4972owner or by any other person claiming an interest in the parcel.
4973     (c)  The association may bring an action in its name to
4974foreclose a lien for assessments in the same manner in which a
4975mortgage of real property is foreclosed and may also bring an
4976action to recover a money judgment for the unpaid assessments
4977without waiving any claim of lien. The association is entitled
4978to recover its reasonable attorney's fees incurred in an action
4979to foreclose a lien or an action to recover a money judgment for
4980unpaid assessments.
4981     (d)  If the parcel owner remains in possession of the
4982parcel after a foreclosure judgment has been entered, the court
4983may require the parcel owner to pay a reasonable rent for the
4984parcel. If the parcel is rented or leased during the pendency of
4985the foreclosure action, the association is entitled to the
4986appointment of a receiver to collect the rent. The expenses of
4987the receiver must be paid by the party who does not prevail in
4988the foreclosure action.
4989     (e)  The association may purchase the parcel at the
4990foreclosure sale and hold, lease, mortgage, or convey the
4991parcel.
4992     (2)(a)  A parcel owner, regardless of how his or her title
4993to property has been acquired, including by purchase at a
4994foreclosure sale or by deed in lieu of foreclosure, is liable
4995for all assessments that come due while he or she is the parcel
4996owner. The parcel owner's liability for assessments may not be
4997avoided by waiver or suspension of the use or enjoyment of any
4998common area or by abandonment of the parcel upon which the
4999assessments are made.
5000     (b)  A parcel owner is jointly and severally liable with
5001the previous parcel owner for all unpaid assessments that came
5002due up to the time of transfer of title. This liability is
5003without prejudice to any right the present parcel owner may have
5004to recover any amounts paid by the present owner from the
5005previous owner.
5006     (c)  Notwithstanding anything to the contrary contained in
5007this section, the liability of a first mortgagee, or its
5008successor or assignee as a subsequent holder of the first
5009mortgage who acquires title to a parcel by foreclosure or by
5010deed in lieu of foreclosure for the unpaid assessments that
5011became due before the mortgagee's acquisition of title, shall be
5012the lesser of:
5013     1.  The parcel's unpaid common expenses and regular
5014periodic or special assessments that accrued or came due during
5015the 24 12 months immediately preceding the acquisition of title
5016and for which payment in full has not been received by the
5017association; or
5018     2.  One-half of the parcel owner's unpaid common expenses
5019and regular periodic assessments which accrued or came due from
5020the filing of the foreclosure action through the sale of the
5021unit, provided that the mortgagee timely paid in full the
5022payment required by paragraph (d) and, at the same time,
5023remitted to the association advanced common expenses and regular
5024periodic assessments equal to one-half of the total unpaid
5025common expenses and regular periodic assessments that came due
5026in that time period. Any such advance shall be taxed as a cost
5027in the foreclosure action, and the mortgagor shall be personally
5028liable to the mortgagee for the value of the payment made to the
5029association plus interest at the interest rate provided for in
5030the promissory note for advances. One percent of the original
5031mortgage debt.
5032
5033The limitations on first mortgagee liability provided by this
5034paragraph apply only if the first mortgagee filed suit against
5035the parcel owner and initially joined the association as a
5036defendant in the mortgagee foreclosure action. Joinder of the
5037association is not required if, on the date the complaint is
5038filed, the association was dissolved or did not maintain an
5039office or agent for service of process at a location that was
5040known to or reasonably discoverable by the mortgagee.
5041     (d)  A mortgagee who files a foreclosure case on a mortgage
5042secured by a parcel in a homeowners' association shall pay to
5043the association within 15 days after the filing of the action
5044all of the parcel's then unpaid common expenses and regular
5045periodic assessments which accrued or came due up to the date of
5046the filing of the foreclosure action. The payment shall be taxed
5047as a cost in the foreclosure action, and the mortgagor shall be
5048personally liable to the mortgagee for the value of the payment
5049made to the association plus interest at the interest rate
5050provided for in the promissory note for advances. The court
5051shall dismiss a foreclosure action on the association's motion
5052to dismiss for failure to make such payment and shall award the
5053association the costs and reasonable attorney's fees related to
5054the motion.
5055     Section 33.  Subsection (3) of section 721.16, Florida
5056Statutes, is amended to read:
5057     721.16  Liens for overdue assessments; liens for labor
5058performed on, or materials furnished to, a timeshare unit.--
5059     (3)  The lien is effective from the date of recording a
5060claim of lien in the public records of the county or counties in
5061which the accommodations and facilities constituting the
5062timeshare plan are located. The claim of lien shall state the
5063name of the timeshare plan and identify the timeshare interest
5064for which the lien is effective, state the name of the
5065purchaser, state the assessment amount due, and state the due
5066dates. Notwithstanding any provision of s. 718.116(5)(a) or s.
5067719.108(5)(4) to the contrary, the lien is effective until
5068satisfied or until 5 years have expired after the date the claim
5069of lien is recorded unless, within that time, an action to
5070enforce the lien is commenced pursuant to subsection (2). A
5071claim of lien for assessments may include only assessments which
5072are due when the claim is recorded. A claim of lien shall be
5073signed and acknowledged by an officer or agent of the managing
5074entity. Upon full payment, the person making the payment is
5075entitled to receive a satisfaction of the lien.
5076     Section 34.  The Office of Program Policy Analysis and
5077Government Accountability shall conduct a study to evaluate
5078whether the state should regulate homeowners' associations in a
5079manner similar to the regulation of condominiums and
5080cooperatives. The study's scope shall include, but need not be
5081limited to, estimating the number of homeowners' associations
5082and the number of homes that are members of a homeowners'
5083association. The office shall submit its report to the President
5084of the Senate and the Speaker of the House of Representatives by
5085January 1, 2010.
5086     Section 35.  This act shall take effect July 1, 2009.


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